Document:

Common Terms Agreement

 Exhibit 10.1 
  
 [EXECUTION COPY] 
  

  
 COMMON TERMS AGREEMENT

  
 Dated as of March 8, 2004 
  
 AMONG 
  
 ALLEGHENY ENERGY SUPPLY COMPANY, LLC, 
  
 THE OTHER PERSONS REFERRED TO HEREIN AS LOAN PARTIES, 
  
 EACH OF THE TERM B LENDERS, 
  
 EACH OF THE TERM C LENDERS, 
  
 CITICORP NORTH AMERICA, INC., 
  
 as Administrative Agent 
  
 AND 
  
 CITIBANK, N.A., 
  
 as Collateral Agent and Intercreditor Agent 
  

  

					
	 CITIGROUP GLOBAL
 MARKETS INC.,
 Joint Lead Arranger and Joint Book
 Runner (Term B Facility and Term
 C
Facility)
	 	 BANC OF AMERICA
 SECURITIES LLC,
 Joint Lead Arranger and Joint Book
 Runner (Term C Facility)
	 	 SCOTIA CAPITAL (USA) INC.,
 Joint Book Runner and
 Co-Documentation Agent (Term B
 Facility) and Co-Documentation
 Agent (Term C Facility)

			
	 BANK OF AMERICA, N.A.,
 Syndication Agent (Term C
 Facility)
	 	 J.P. MORGAN
 SECURITIES, INC.,
 Joint Lead Arranger,
 Joint Book Runner and Syndication
 Agent (Term B Facility) and
 Co-Documentation Agent (Term C
 Facility)
	 	 CREDIT SUISSE
 FIRST BOSTON, 
 Joint Book Runner and
 Co-Documentation Agent (Term B
 Facility) and Co-Documentation
 Agent (Term C Facility)

  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	ARTICLE I	  	 
	DEFINITIONS AND INTERPRETATION	  	 
			
	 Section 1.01
	 	Definitions	  	4
			
	 Section 1.02
	 	Principles of Interpretation	  	35
			
	 Section 1.03
	 	Determination of Material Adverse Change and Material Adverse Effect, Etc.	  	37
		
	ARTICLE II	  	 
	ADVANCES AND PAYMENTS	  	 
			
	 Section 2.01
	 	Availability of Advances	  	37
			
	 Section 2.02
	 	Lenders’ Obligations Several	  	37
			
	 Section 2.03
	 	No Reborrowing	  	37
			
	 Section 2.04
	 	Prepayments	  	37
			
	 Section 2.05
	 	Payments Generally	  	40
			
	 Section 2.06
	 	Fees	  	40
			
	 Section 2.07
	 	Pro Rata Treatment	  	40
		
	ARTICLE III	  	 
	CONDITIONS OF LENDING	  	 
			
	 Section 3.01
	 	Conditions Precedent to Closing Date	  	41
			
	 Section 3.02
	 	Determinations Under Section 3.01	  	49
		
	ARTICLE IV	  	 
	REPRESENTATIONS AND WARRANTIES	  	 
			
	 Section 4.01
	 	Representations and Warranties of the Borrower	  	50
			
	 Section 4.02
	 	Representations and Warranties of the Other Loan Parties	  	57

					
	 ARTICLE V
 COVENANTS
	  	 
			
	 Section 5.01
	 	Affirmative Covenants of the Borrower	  	59
			
	 Section 5.02
	 	Negative Covenants of the Borrower	  	64
			
	 Section 5.03
	 	Financial Covenants of the Borrower	  	77
			
	 Section 5.04
	 	Reporting Covenants of the Borrower	  	79
		
	ARTICLE VI	  	 
	EVENTS OF DEFAULT; ACCELERATION; INTERCREDITOR AGREEMENTS	  	 
			
	 Section 6.01
	 	Events of Default	  	82
			
	 Section 6.02
	 	Actions Following an Event of Default	  	85
			
	 Section 6.03
	 	Default Interest	  	85
			
	 Section 6.04
	 	Priority of Claims Following Enforcement Action	  	85
		
	ARTICLE VII	  	 
	REMEDIES AND ENFORCEMENT	  	 
			
	 Section 7.01
	 	Procedures Following an Event of Default	  	88
		
	ARTICLE VIII	  	 
	THE AGENTS	  	 
			
	 Section 8.01
	 	Authorization and Action	  	89
			
	 Section 8.02
	 	Reliance	  	90
			
	 Section 8.03
	 	BofA, BAS, CNAI, CGMI, Citibank, CSFB, Scotia and JPMC and Affiliates	  	90
			
	 Section 8.04
	 	Lender Credit Decision	  	91
			
	 Section 8.05
	 	Indemnification	  	91
			
	 Section 8.06
	 	Successor Administrative Agent	  	92
			
	 Section 8.07
	 	Liability	  	92
			
	 Section 8.08
	 	Compensation of Agents	  	92
			
	 Section 8.09
	 	Exculpatory Provisions	  	93
			
	 Section 8.10
	 	Treatment of Lenders	  	93

  

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	 Section 8.11
	  	Miscellaneous	  	93
			
	 Section 8.12
	  	Arranger Parties	  	93
	ARTICLE IX	  	 
	MISCELLANEOUS	  	 
			
	 Section 9.01
	  	Amendments, No Waiver	  	94
			
	 Section 9.02
	  	Notices, Etc.	  	95
			
	 Section 9.03
	  	No Waiver, Remedies	  	97
			
	 Section 9.04
	  	Indemnity and Expenses	  	97
			
	 Section 9.05
	  	Right of Set-off	  	98
			
	 Section 9.06
	  	Binding Effect	  	99
			
	 Section 9.07
	  	Execution in Counterparts	  	99
			
	 Section 9.08
	  	Jurisdiction, Etc.	  	99
			
	 Section 9.09
	  	Governing Law	  	99
			
	 Section 9.10
	  	Waiver of Jury Trial	  	99
			
	 Section 9.11
	  	Confidentiality	  	100
			
	 Section 9.12
	  	Benefits of Agreement	  	101
			
	 Section 9.13
	  	Severability	  	101
			
	 Section 9.14
	  	Limitations	  	101
			
	 Section 9.15
	  	Survival	  	102
			
	 Section 9.16
	  	USA Patriot Act Notice	  	102

  
 SCHEDULES 
  

					
	 Schedule 1.01
	 	-	    	Existing Letters of Credit
	 Schedule 4.01(a)
	 	-	    	Non-Contravention Disclosure
	 Schedule 4.01(b)
	 	-	    	Subsidiaries
	 Schedule 4.01(d)
	 	-	    	Governmental Approvals and Filings
	 Schedule 4.01(f)
	 	-	    	Disclosed Litigation
	 Schedule 4.01(g)
	 	-	    	Disclosed Information
	 Schedule 4.01(n)
	 	-	    	Certain Environmental Matters
	 Schedule 4.01(p)
	 	-	    	Owned Real Property

  

 iii 

					
	 Schedule 4.01(q)
	 	-	    	Leased Real Property
	 Schedule 4.01(r)
	 	-	    	Material Contract Defaults
	 Schedule 4.01(s)
	 	-	    	Surviving Debt
	 Schedule 4.01(t)
	 	-	    	Existing Liens
	 Schedule 4.01(u)
	 	-	    	Investments
	 Schedule 4.01(y)
	 	-	    	Insurance
	 Schedule 4.01(z)
	 	-	    	Controlled Accounts and Operating Accounts
	 Schedule 5.02(c)
	 	-	    	Incidental Businesses

  
 EXHIBITS 
  

							
	 Exhibit A
	 	 -
	 	 	  	Form of Assumption and Joinder Agreement
	 Exhibit B
	 	 -
	 	 	  	Form of Amendment to Security and Intercreditor Agreement
	 Exhibit C
	 	 -
	 	 	  	Form of Term Mortgage (AESC – Amended New Money)
	 Exhibit D
	 	 -
	 	 	  	Form of Term Mortgage (AESC – Amended Refinancing)
	 Exhibit E
	 	 -
	 	 	  	Form of Term Mortgage (Non-AESC – Amended New Money)
	 Exhibit F
	 	 -
	 	 	  	Form of Term Mortgage (Non-AESC – Amended Refinancing)
	 Exhibit G
	 	 -
	 	 	  	Form of Term Mortgage (Gleason – Amended New Money)
	 Exhibit H
	 	 -
	 	 	  	Form of Term Mortgage (Gleason – Amended Refinancing)
	 Exhibit I
	 	 -
	 	 	  	Form of Springdale Mortgage (Amended New Money)
	 Exhibit J
	 	 -
	 	 	  	Form of Springdale Mortgage (Amended Refinancing)
	 Exhibit K
	 	 -
	 	 	  	Form of Springdale Mortgage (Second Amended Mortgage)
	 Exhibit L
	 	 -
	 	 	  	Form of Springdale Mortgage (Second Mortgage)

  

 iv 

 COMMON TERMS AGREEMENT 
  
 COMMON TERMS AGREEMENT dated as of March 8, 2004 made by and among: 
  
 ALLEGHENY ENERGY SUPPLY COMPANY, LLC, a Delaware limited liability company
(the “Borrower”); 
  
 Each of the Persons
(as hereinafter defined) (other than the Borrower) listed on the signature pages hereto as a Loan Party (the Borrower and the Persons so listed being, collectively, the “Loan Parties”); 
  
 Each of the institutions listed on the signature pages hereto as a Term B
Lender (as hereinafter defined) and any additional Term B Lender that becomes a party to the Term B Credit Agreement (as hereinafter defined) in accordance with the terms of the Term B Credit Agreement and this Agreement (as hereinafter defined), in
either case for so long as such institution continues to be a party to the Term B Credit Agreement in its capacity as lender; 
  
 Each of the institutions listed on the signature pages hereto as a Term C Lender (as hereinafter defined) and any additional Term C Lender that becomes a
party to the Term C Credit Agreement (as hereinafter defined) in accordance with the terms of the Term C Credit Agreement and this Agreement, in either case for so long as such institution continues to be a party to the Term C Credit Agreement in
its capacity as lender; 
  
 CITICORP NORTH AMERICA, INC.
(“CNAI”), not in its individual capacity except as expressly set forth herein but solely as administrative agent for the Term B Lenders and the Term C Lenders (together with any successor administrative agent appointed
pursuant to Section 8.06 of this Agreement, the “Administrative Agent”); 
  
 CITIBANK, N.A. (“Citibank”), not in its individual capacity except as expressly set forth herein but solely as (a) collateral
agent (together with any successor collateral agent appointed pursuant to Article VII of the Security and Intercreditor Agreement, the “Collateral Agent”) and (b) intercreditor agent (together with any successor intercreditor
agent appointed pursuant to Article VII of the Security and Intercreditor Agreement, the “Intercreditor Agent”) for the Secured Parties (as hereinafter defined). 
  
 PRELIMINARY STATEMENTS 
  
 (1) The Borrower is indebted to certain banks and financial institutions (the “Existing Lenders”) pursuant to (a) that certain
Credit Agreement, dated as of February 21, 2003 (the “New Money Credit Agreement”), among the Borrower, the financial institutions party thereto as lenders and Citibank, N.A., as agent, in a current outstanding principal
amount of $170,000,000; (b) that certain Credit Agreement, dated as of February 21, 2003 (the “Refinancing Credit Agreement”), among the Borrower, the financial institutions party thereto as lenders, Bank One, NA, as issuing
bank and Citibank, N.A., as agent, in a current outstanding principal amount of $987,657,215.77; and (c) that certain Credit Agreement, dated as of February 21, 2003, as amended and restated in its entirety on the date hereof (the
“Springdale Credit Agreement” and together with the New Money Credit Agreement and the Refinancing 
  

 2 

 Credit Agreement, the “Existing Lender Debt Documents”), originally among the Borrower, the
financial institutions party thereto as lenders (the “Existing Springdale Lenders”) and The Bank of Nova Scotia, as agent (the “Original Springdale Agent”), in a current outstanding principal amount of
$270,122,947. 
  
 (2) The Springdale Credit Agreement consists of
three facilities, (a) a facility in a current outstanding principal amount of up to $94,334,904.55 (the “Springdale Tranche A Facility”), (b) a facility in a current outstanding principal amount of up to $150,000,000 (the
“Springdale Tranche B Facility”) and (c) a facility in a current outstanding principal amount of $25,788,042.45 (the “Springdale Tranche C Facility”). 
  
 (3) The Existing Springdale Lenders and the Term B Lenders have
entered into that certain Master Assignment and Acceptance Agreement, dated as of March 4, 2004 (the “Assignment Agreement”), pursuant to which all rights, title, interests, benefits and obligations of the Existing Springdale
Lenders under the Springdale Credit Agreement are to be assigned and transferred to the Term B Lenders upon the terms and conditions set forth in the Assignment Agreement (such assignment and transfer, the “Transfer”).

  
 (4) The Borrower has requested that the Term B Lenders (as
hereinafter defined) agree to amend and restate the Springdale Credit Agreement so as to refinance and continue a certain portion of the loans outstanding thereunder and make additional loans available to the Borrower to partially refinance the
Existing Secured Lender Debt (as hereinafter defined), all in an aggregate amount not to exceed up to $750,000,000 on the Closing Date (as hereinafter defined), which shall consist of (a) a new loan facility in an initial aggregate amount of
$650,000,000 (the “Group Assets Facility”), the proceeds of which shall constitute Secured Replacement Senior Debt Obligations (as hereinafter defined) and which shall be used to refinance the Springdale Tranche A Facility
and certain amounts of the other Existing Secured Lender Debt and (b) a continuation of the Springdale Tranche B Facility in the aggregate amount of $100,000,000 (which shall hereinafter be referred to as the “Springdale
Facility”, and together with the Group Assets Facility, the “Term B Facility”), all on the terms and conditions set forth in the Term B Credit Agreement, this Agreement and the other Financing Documents.

  
 (5) Pursuant to that certain Term C Credit Agreement, dated as
of the date hereof (the “Term C Credit Agreement”), among the Borrower, the Term C Lenders (as hereinafter defined), the Administrative Agent and certain of the Arranger Parties (as hereinafter defined), the Term C Lenders
have established a loan facility in the aggregate amount of $500,000,000 (the “Term C Facility”) in favor of the Borrower to partially refinance the Existing Secured Lender Debt. 
  
 (6) Allegheny Energy, Inc., the parent company of the Borrower (the
“Parent”), intends to enter into an unsecured revolving credit facility in an aggregate amount of up to $200,000,000 (the “Revolving Credit Facility”) and an unsecured term credit facility in an
aggregate amount of $100,000,000 (the “Parent Term Facility” and together with the Revolving Credit Facility, the “New Parent Facility”), the proceeds of which will be used to (a) refinance certain
indebtedness of the Parent and letters of credit currently outstanding and issued on behalf of the Parent, the Borrower and certain Subsidiaries (as hereinafter defined) of the Borrower, (b) pay certain costs associated with or resulting from the
Transactions (as hereinafter defined) and 
  

 3 

 (c) otherwise be available for general corporate purposes of the Parent, including working capital and posting letters of
credit to support obligations of the Parent, the Borrower and their respective Subsidiaries incurred in the ordinary course of business. 
  
 (7) Pursuant to that certain letter agreement, dated as of the date hereof (the “Springdale Agency Letter Agreement”), the
Original Springdale Agent has resigned as agent under the Springdale Credit Agreement and CNAI has agreed to act as agent under the Term B Credit Agreement on the terms and conditions set forth therein. 
  
 (8) The Lenders have indicated their willingness to provide such financing on
the terms and conditions of this Agreement and the other Financing Documents (as hereinafter defined). 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby agree as follows:

  
 ARTICLE I 
 DEFINITIONS AND INTERPRETATION 
  
 Section 1.01 Definitions. As used in this Agreement, unless otherwise indicated the following terms shall have the following meanings: 

 
 “1940 Act” means the Investment
Company Act of 1940, as amended. 
  
 “Acceleration Notice” has the meaning set forth in Section 7.01(a)(2). 
  
 “Accepting Term B Lender” has the meaning set forth in Section 2.04(b)(iv)(c). 
  
 “Accepting Term C Lender” has the
meaning set forth in Section 2.04(b)(iv)(F). 
  
 “Account Control Agreement” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Acquired Material Property” has the meaning set forth in Section 5.04(h). 
  
 “Act” has the meaning set forth in
Section 9.16. 
  
 “Additional Loan
Party” has the meaning set forth in Section 5.01(o). 
  
 “Administrative Agent” has the meaning set forth in the recital of the parties to this Agreement. 
  
 “Advance” means each of the loans owed from time to time by the Borrower to (a) the Term B Lenders pursuant to the
Term B Credit Agreement and (b) the Term C Lenders pursuant to the Term C Credit Agreement. 
  

 4 

 “Advances Prepayment Amount” has the meaning set forth in Section
2.04(b)(iv)(A). 
  
 “AESC
Transactions” has the meaning set forth in Section 3.01(a)(vii). 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such
Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession,
direct or indirect, of the power to vote 5% or more of the Voting Interests of such Person or to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Interests, by contract or
otherwise. 
  
 “Affiliate Energy
Contracts” means, collectively, (a) the Power Sales Agreement between PEC and the Borrower for Maryland dated January 1, 2001, as supplemented by the Memorandum of the Operating Committee dated October 1, 2001, Amendment No. 1 to the
Memorandum of the Operating Committee effective January 1, 2002 and Amendment No. 2 to the Memorandum of the Operating Committee effective January 1, 2003; (b) the Power Sales Agreement between PEC and the Borrower for Virginia dated January 1,
2001, as supplemented by the Memorandum of the Operating Committee dated October 1, 2001, Amendment No. 1 to the Memorandum of the Operating Committee effective January 1, 2002, and Amendment No. 2 to the Memorandum of the Operating Committee
effective January 1, 2003; (c) the Facilities Lease Agreement between PEC and the Borrower for West Virginia dated August 1, 2000, the Lease Agreement extension dated March 14, 2003, and the Service Agreement between PEC and the Borrower for West
Virginia dated August 1, 2000; (d) the Power Sales Agreement between WPPC and the Borrower for Pennsylvania dated January 1, 2001, as supplemented by the Memorandum of the Operating Committee dated August 1, 2001, Amendment No. 1 to the Memorandum
of the Operating Committee effective January 1, 2002, and Amendment No. 2 to the Memorandum of the Operating Committee effective January 1, 2003; (e) the Facilities Lease Agreement between MPC and the Borrower for Ohio dated June 1, 2001; and (f)
the Power Sales Agreement between MPC and the Borrower for Ohio dated June 1, 2001, as supplemented by the Memorandum of the Operating Committee dated August 1, 2001, Amendment No. 1 to the Memorandum of the Operating Committee effective January 1,
2002 and Amendment No. 2 to the Memorandum of the Operating Committee effective January 1, 2003. 
  
 “Affiliate Subordination Terms” means, with respect to any Debt or other Obligations owed by the Borrower or any
of its Subsidiaries to any Affiliate thereof, that such Debt is either (a) subject to the terms set forth in Section 9.03 of the Security and Intercreditor Agreement or (b) subject to an agreement which subordinates such Debt to the Obligations owed
in respect of the Advances on identical terms to those set forth in Section 9.03 of the Security and Intercreditor Agreement. 
  
 “AGC” means Allegheny Generating Company, a Virginia corporation. 
  

 5 

 “Agent Parties” has the meaning set forth in Section 9.02(d).

  
 “Agents” means the
Administrative Agent, the Intercreditor Agent and the Collateral Agent. 
  
 “Agreement” has the meaning set forth in the recital of the parties to this Agreement. 
  
 “Agreement Value” means, for each Hedge Agreement, on any date of determination, an amount determined by the
Borrower in good faith equal to: (a) in the case of a Hedge Agreement documented pursuant to the Master Agreement (as defined in the definition of a “Hedge Agreement”), the amount, if any, that would be payable by the
Borrower or any of its Subsidiaries to its counterparty to such Hedge Agreement pursuant to the terms of such Hedge Agreement, as if (i) such Hedge Agreement was being terminated early on such date of determination, (ii) the Borrower or any of its
Subsidiaries was the sole “Affected Party”, and (iii) the Borrower was the sole party determining such payment amount (with the Borrower making such determination pursuant to the provisions of the Master Agreement or the Hedge
Agreement (whichever is applicable)); or (b) in the case of a Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement (after any netting permitted pursuant to
the terms of such Hedge Agreement (including any netting across different Hedge Agreements and Master Agreements to the extent permitted by contract)) to the Borrower or any of its Subsidiaries party to such Hedge Agreement, if any, determined by
the Borrower in good faith based on the settlement price of such Hedge Agreement on such date of determination, or (c) in all other cases, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement
(after any netting permitted pursuant to the terms of such Hedge Agreement (including any netting across different Hedge Agreements and Master Agreements to the extent permitted by contract)) to the Borrower or any of its Subsidiaries party to such
Hedge Agreement, if any, as determined by the Borrower in good faith in accordance with the terms of such Hedge Agreement or, if such Hedge Agreement does not provide a methodology for such determination, the amount, if any, by which (i) the present
value of the future cash flows to be paid by the Borrower or any of its Subsidiaries party thereto, as the case may be, exceeds (ii) the present value of the future cash flows to be received by the Borrower or such Subsidiary, as the case may be,
pursuant to such Hedge Agreement; capitalized terms used and not otherwise defined in this definition shall have the respective meanings set forth in the above described Master Agreement. 
  
 “ALTA Survey” means a fully paid
American Land Title Association/American Congress on Surveying and Mapping form survey. 
  
 “Applicable Law” means, with respect to any Person, any and all laws, statutes, regulations, rules, orders,
injunctions, decrees, writs, determinations, awards and judgments issued by any Governmental Authority applicable to such Person, including all Environmental Laws. 
  

 6 

 “Applicable Portion” means, at any time with respect to any
amount and the application of any Enforcement Proceeds received (a) in respect of the Group Assets or the Group Assets Liens, the product of such amount multiplied by a fraction (expressed as a percentage carried out to the ninth decimal
point), the numerator of which is the aggregate outstanding principal amount of all Advances outstanding under the Facilities at such time less the aggregate principal amount of the Advances outstanding under the Springdale Facility at such
time and the denominator of which is the aggregate outstanding principal amount of all Advances outstanding under the Facilities at such time or (b) in respect of the Springdale Assets or the Springdale Liens, the product of such amount
multiplied by a fraction (expressed as a percentage carried out to the ninth decimal point), the numerator of which is the aggregate principal amount of all Advances outstanding under the Springdale Facility and the denominator of which is
the aggregate outstanding principal amount of all Advances outstanding under the Facilities at such time. 
  
 “Arranger Parties” means Citigroup Global Markets Inc. (“CGMI”), as Joint Lead Arranger
and Joint Book Runner in respect of the Term B Facility and the Term C Facility, Bank of America, N.A. (“BofA”), as Syndication Agent in respect of the Term C Facility, Banc of America Securities LLC
(“BAS”), as Joint Lead Arranger and Joint Book Runner in respect of the Term C Facility, Credit Suisse First Boston, acting through its Cayman Islands Branch (“CSFB”), as Joint Book Runner in respect
of the Term B Facility and Co-Documentation Agent in respect of the Term B Facility and the Term C Facility, JPMorgan Securities, Inc. (“JPMC”), as Joint Lead Arranger and Joint Book Runner in respect of the Term B Facility,
Syndication Agent in respect of the Term B Facility and Co-Documentation Agent in respect of the Term C Facility, and Scotia Capital (USA) Inc. (“Scotia”), as Joint Book Runner and Co-Documentation Agent in respect of the
Term B Facility and Co-Documentation Agent in respect of the Term C Facility. 
  
 “Assignment Agreement” has the meaning set forth in Preliminary Statement (3) of this Agreement. 
  
 “Assumption and Joinder Agreement” means an assumption and joinder agreement executed by any Subsidiary of the
Borrower pursuant to Section 5.01(o) and in substantially the form of Exhibit A. 
  
 “Authorized Signatory” means, with respect to any Person, the individual, or any of the individuals, authorized to
sign any Transaction Document to which such Person is or is to be a party, as well as any other agreements and give written instructions on behalf of such Person with regard to any matters pertaining to any Transaction Document to which such Person
is or is to be a party (as identified on an incumbency certificate submitted to the Administrative Agent and the Collateral Agent from time to time prior to the receipt of any instructions from such Authorized Signatory). 
  
 “Bankruptcy Code” means the Federal
Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.). 
  

 7 

 “BAS” has the meaning set forth in the definition of the term
“Arranger Parties”. 
  
 “Base Rate Advances” means any Advance bearing interest pursuant to the terms of the relevant Credit Agreement at the Base Rate (as defined in such Credit Agreement). 
  
 “BofA” has the meaning set forth in
the definition of the term “Arranger Parties”. 
  
 “Bond Instruments” means (a) the Existing Indentures, (b) the Indenture dated as of December 1, 1986 between AGC, as issuer, and U.S. Bank Trust, National Association (successor trustee to
Morgan Guaranty Trust Company of New York), as trustee and (c) the Pollution Control Bond Indentures. 
  
 “Borrower” has the meaning set forth in the recital of parties to this Agreement. 
  
 “Borrowing” means the Springdale
Borrowing, the Term C Borrowing or any Term B Borrowing, as the context may require. 
  
 “Business Day” means a day of the year on which banks are not required or not authorized by law to close in New
York City and, if the applicable Business Day relates to any Eurodollar Rate Advances (as defined in any Credit Agreement), on which dealings are carried on in the London interbank market. 
  
 “Capital Expenditures” means, for
any Person for any period, the sum of, without duplication, all expenditures made, directly or indirectly, by such Person during such period (whether financed by cash or by Debt (including Obligations under Capitalized Leases) assumed or incurred to
fund, directly or indirectly, such expenditures) for equipment, fixed assets, real property or improvements, or for replacements or substitutions therefor or additions thereto, that have been or should be, in accordance with GAAP, reflected as
additions to property, plant or equipment on a balance sheet of such Person. For purposes of this definition, the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment or with insurance proceeds shall
be included in Capital Expenditures only to the extent of the gross amount of such purchase price less the credit granted by the seller of such equipment for the equipment being traded in at such time or the amount of such proceeds, as the case may
be. 
  
 “Capitalized
Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Cash Equivalents” means any of the following, to the extent owned by the Borrower or any of its Subsidiaries free
and clear of all Liens other than Liens created under the Collateral Documents and having a maturity of not greater than 90 days from the date of issuance thereof: (a) readily marketable direct obligations of the Government of the United States or
any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the Government of the United States, (b) insured certificates of deposit of or time deposits with any commercial bank that is an Agent or
Lender or a member of the Federal Reserve System, issues (or the parent of which issues) commercial paper rated as described in clause (c) below, is 
  

 8 

 organized under the laws of the United States or any State thereof and has combined capital and surplus
of at least $2,500,000,000; provided that the amount of certificates of deposit or time deposits of any bank shall not exceed $20,000,000 principal amount at any one time, (c) commercial paper in an aggregate amount of no more than
$40,000,000 per issuer outstanding at any time, issued by any corporation organized under the laws of any State of the United States and rated at least “Prime-1” (or the then-equivalent grade) by Moody’s or
“A-1” (or the then-equivalent grade) by S&P, or (d)(i) with respect to any Pledged Account, mutual fund investments in any of the following: the Dreyfus Treasury Cash Management Investor Class (673) fund, the Goldman Sachs FS
Federal Fund Administration Class (521) fund and the Goldman Sachs FS Government Fund Administration Class (466) fund or (ii) with respect to Controlled Accounts and Operating Accounts, investments in any mutual fund the sole investments of which
are the cash equivalents identified in clauses (a) through (c) above. 
  
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time. 
  
 “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency. 
  
 “CGMI” has the meaning set forth in the definition of the term “Arranger Parties”. 
  
 “Change of Control” means the occurrence of any of the following: (a) the Parent shall cease to own 98% of all
issued and outstanding Equity Interests in the Borrower (other than the ML Interests); (b) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly, of Voting Interests of the Parent (or other securities convertible into such Voting Interests) representing 40% or more of the combined voting power of all Voting
Interests of the Parent; (c) during any period of up to 24 consecutive months, commencing before or after the date of this Agreement, individuals who at the beginning of such 24-month period were directors of the Parent (the “Original
Directors”) shall cease for any reason to constitute a majority of the board of directors of the Parent (unless replaced by individuals nominated or proposed by the Original Directors); or (d) any Person or two or more Persons acting in
concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence
over the management or policies of the Parent. 
  
 “Chief Financial Officer” of any Person means such Person’s chief financial officer or such other natural person who is principally responsible for such Person’s financial matters. 
  
 “Closing Date” has the meaning set
forth in Section 3.01(a). 
  

 9 

 “Closing Date Transactions” has the meaning set forth in Section
3.01(a)(xviii). 
  
 “CNAI” has the meaning set forth in the recital of the parties to this Agreement. 
  
 “Collateral” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Collateral Agent” has the meaning
set forth in the recital of the parties to this Agreement. 
  
 “Collateral Documents” means the Security and Intercreditor Agreement, the SIA Amendment, the Mortgages, the Consents, the Account Control Agreements and any other agreement that creates or
purports to create a Lien in favor of the Collateral Agent for the benefit of the Secured Parties or that acknowledges the creation of such a Lien. 
  
 “Commitment” means, with respect to any Lender, the aggregate principal amount that such Lender is committed to
lend to the Borrower under the relevant Credit Agreement to which such Lender is a party, as such commitment may be reduced from time to time pursuant to such Credit Agreement. 
  
 “Communications” has the meaning specified Section 9.02(b). 
  
 “Conemaugh” means Allegheny Energy
Supply Conemaugh, LLC. 
  
 “Confidential Information” has the meaning specified Section 9.11(a). 
  
 “Consents” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Consolidated” refers to the
consolidation of accounts in accordance with GAAP. 
  
 “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent deducted in determining such Consolidated Net Income, the sum of (i)
Consolidated Interest Expense for such period, (ii) consolidated income tax expense for such period, (iii) all amounts attributable to minority interests and to depreciation and amortization for such period (including amortization of Debt issuance
costs), (iv) any extraordinary or non-recurring non-cash charges (including the write-down of non-current assets) or any gains for such period, (v) any non-cash goodwill or other intangible asset impairment charges resulting from the application of
Statement Number 142 or Statement Number 144 of the Financial Accounting Standards Board, (vi) any non-recurring expenses or non-cash charges incurred in connection with the Transactions, (vii) any non-cash compensation charges, including any such
charges arising from stock options, restricted stock grants and other equity incentive programs and (viii) for any fiscal quarter occurring during the Fiscal Year ending December 31, 2004, the Pleasants Power Station Loss Amount for such fiscal
quarter; provided that to the extent that all or any portion of the net income of any Subsidiary of the Borrower or any other Person is excluded from Consolidated Net Income pursuant to the definition thereof for all or any portion of such
period any amounts set forth in the preceding clauses (i) through (vii) that are attributable to such 
  

 10 

 Subsidiary or other Person shall not be included for purposes of this clause (a) for such period or
portion thereof, and minus (b) without duplication (i) all cash payments made during such period on account of reserves, restructuring charges and other non-cash charges added to Consolidated Net Income pursuant to clause (a) above after the
Closing Date and (ii) to the extent included in determining such Consolidated Net Income, any extraordinary gains and all non-cash items of income for such period, all determined on a consolidated basis in accordance with GAAP; provided that
for purposes of calculating Consolidated EBITDA for any period for purposes of the covenants set forth in Section 5.03 (A) the Consolidated EBITDA of any Investment made or Subsidiary acquired by the Borrower or any Subsidiary in accordance with the
terms of this Agreement during such period for which aggregate consideration paid by the Borrower or any of its Subsidiaries shall be equal to or greater than $25,000,000 shall be included on a pro forma basis for such period (assuming the
consummation of such acquisition and the incurrence or assumption of any Debt in connection therewith occurred as of the first day of such period), (B) the Consolidated EBITDA of any Person or line of business sold or otherwise disposed of by the
Borrower or any of its Subsidiaries during such period for which the aggregate consideration received by the Borrower or any of its Subsidiaries shall be equal to or greater than $25,000,0000 shall be excluded for such period (assuming the
consummation of such sale or other disposition and the repayment of any Debt in connection therewith occurred as of the first day of such period) and (C) without duplication, to the extent such calculation includes any period during the Fiscal Year
ending December 31, 2004, such calculation shall include the Pleasants Power Station Loss Amount for such period. 
  
 “Consolidated Interest Expense” means, for any period, (a) the sum of, without duplication, (i) the interest
expenses (including imputed interest expense in respect of Capitalized Leases) of the Borrower and its Subsidiaries for such period (including all commissions, discounts and other fees and charges owed by the Borrower and its Subsidiaries with
respect to letters of credit and bankers’ acceptance financing), net of interest income, in each case determined on a consolidated basis in accordance with GAAP, plus (ii) any interest accrued during such period in respect of Debt of the
Borrower or any of its Subsidiaries that is required to be capitalized rather than included in consolidated interest expenses for such period in accordance with GAAP, minus (b) to the extent included in such consolidated interest expense for
such period, amounts attributable to the amortization of financing costs and non-cash amounts attributable to the amortization of debt discounts. For purposes of the foregoing, interest expense shall be determined after giving effect to any net
payments made or received by the Borrower or any of its Subsidiaries with respect to interest rate Hedge Agreements which are included as interest expense in accordance with GAAP. 
  
 “Consolidated Net Income” means, for any period, the net income or loss before
cumulative effect in change of accounting principles of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income of any Subsidiary of
the Borrower to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of that income is not, as a result of any Subsidiary Debt Default, at the time permitted by operation of the terms of the agreement
or other documents governing the 
  

 11 

 Debt under which such Subsidiary Debt Default shall have occurred; provided that such income of
such Subsidiary shall only be so excluded for that portion of such period during which the condition described in this clause (a) shall so exist; (b) the income or loss of any Person accrued prior to the date it becomes a Subsidiary or is merged or
Consolidated with the Borrower or any Subsidiary on the date such Person’s assets are acquired by the Company or any Subsidiary; (c) the income or loss of any Person (other than a Subsidiary) in which any other Person (other than the Borrower
or a wholly owned Subsidiary of the Borrower) has an interest, except to the extent of the amount of dividends or other distributions actually paid to the Borrower or a wholly owned Subsidiary by such Person during such period; (d) any gains or
losses attributable to sales of assets out of the ordinary course of business; and (e) any gains or losses attributable to interest rate Hedge Agreements which are not included as interest expense in accordance with GAAP. 
  
 “Constituent Documents” means, with
respect to any Person, (a) the articles or certificate of incorporation or other similar organizational document of such Person, (b) the by-laws or other similar document of such Person, (c) any certificate of designation or instrument relating to
the rights of holders (including preferred shareholders) of Equity Interests in such Person and (d) any shareholder rights agreement or other similar agreement. 
  
 “Contest” means, with respect to the payment of Taxes or any other claims or
liabilities by any Person, to contest the validity or amount thereof in good faith by appropriate proceedings timely instituted and diligently pursued within the applicable statutory period and in accordance with Applicable Law; provided that
the following conditions are satisfied: (a) such Person has posted a bond or other security in accordance with Applicable Law (if required) or has established adequate reserves with respect to the contested items in accordance with, and to the
extent required by, GAAP; (b) during the period of such contest, the enforcement of any contested item is effectively stayed; (c) neither such Person nor any of its officers, directors or employees nor any Secured Party or its respective officers,
directors or employees is, or could reasonably be expected to become, subject to any criminal liability or sanction in connection with such contested items; and (d) no Lien relating to such contest attaches to any assets or property of such Person
and becomes enforceable against other creditors of such Person. 
  
 “Contingent Obligation” means, with respect to any Person, any Obligation or arrangement of such Person to guarantee or intended to guarantee any Debt, leases, dividends or other payment
Obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including (a) the direct or indirect guarantee, endorsement (other than
for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments, if required,
regardless of nonperformance by any other party or parties to an agreement or (c) any Obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the 
  

 12 

 primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the holder of such primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
  
 “Controlled Account” has the meaning set forth in the Security and Intercreditor
Agreement. 
  
 “Credit
Agreements” means each of the Term B Credit Agreement and the Term C Credit Agreement. 
  
 “CSFB” has the meaning set forth in the definition of the term “Arranger Parties”. 
  
 “Deadlock Notice” has the meaning
set forth in Section 7.01(a)(3). 
  
 “Debt” of any Person (the “obligor”) means, without duplication, (a) all Obligations of such obligor for or in respect of moneys borrowed or raised (whether or not for cash by whatever means
(including acceptances, deposits, discounting, letters of credit, factoring (other than on a non-recourse basis))), and any other form of financing which is recognized in accordance with GAAP in the obligor’s financial statements as being in
the nature of a borrowing or is treated as “off-balance” sheet financing; (b) all Obligations of the obligor evidenced by notes, bonds, debentures or other similar instruments issued in connection with accounts payable excluded
pursuant to the parenthetical in clause (c) below; (c) all Obligations of the obligor for the deferred purchase price of property or services (other than accounts payable within 90 days of being incurred arising in the ordinary course of such
obligor’s business and not more than 90 days past due and not subject to a Contest); (d) all Obligations of such obligor under conditional sale or other title retention agreements relating to property or assets acquired by such obligor (even
though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (e) all Obligations of such obligor under any securitization or monetization arrangement; (f)
all Obligations of such obligor as lessee under Capitalized Leases; (g) all Obligations of the obligor, contingent or otherwise, of the obligor under acceptance, letter of credit or similar facilities other than as issued (i) in connection with
Obligations excluded pursuant to clause (b) above or the parenthetical in clause (c) above or (ii) as credit support for leases other than Capitalized Leases; (h) all Obligations of the obligor to purchase, redeem, retire, defease or otherwise make
any payments in respect of any Equity Interests in the obligor or any other Person or any warrants, rights or options to acquire such 
  

 13 

 capital stock, valued, in the case of Redeemable Preferred Interests, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends; (i) all Obligations of the obligor in respect of Hedge Agreements; (j) all Contingent Obligations of the obligor with respect to Debt; and (k) all indebtedness and other
payment Obligations referred to in clauses (a) through (j) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and
contract rights owned by the obligor), even though the obligor has not assumed or become liable for the payment of such indebtedness or other payment Obligations. 
  
 “Debt for Borrowed Money” means Debt of the types specified in (a) clauses (a), (b),
(d), (e) and (f) of the definition of Debt and (b) to the extent relating to Debt of the types specified in one or more of clauses (a), (b), (d), (e) and (f) of the definition of Debt, clauses (j) and (k) thereof. 
  
 “Decision Period” means, with
respect to any decision to be made for purposes of Section 7.01, the period commencing on the date of the Notice of Default related thereto and ending ten Business Days after the date of such Notice of Default; provided that if any of the
Lenders shall require any extension of time to make any such decision, such Person may, upon written notice to the Administrative Agent within the Decision Period specified in the notice of the Administrative Agent delivered thereunder, extend such
Decision Period for such Person for an additional period of time as specified in such notice; provided further that any such extension shall not exceed ten Business Days beyond the final date of the original Decision Period. 
  
 “Declining Term B Lender” has the
meaning set forth in Section 2.04(b)(iv)(C). 
  
 “Declining Term C Lender” has the meaning set forth in Section 2.04(b)(iv)(F). 
  
 “Default” means any Event of Default or any event that would constitute an Event of Default but for the
requirement that notice be given or time elapse or both. 
  
 “Disclosed Litigation” has the meaning set forth in Section 3.01(b). 
  
 “Disclosed Matters” means the occurrence of any event in respect of, or effect upon the business, condition
(financial or otherwise), operations, performance, properties, assets, liabilities (actual or contingent) results of operation or prospects of the Borrower or the Borrower and its Subsidiaries, taken as a whole, which has been disclosed prior to the
Closing Date (a) pursuant to a public filing by the Borrower with the SEC or (b) in writing to the Administrative Agent. 
  
 “Emissions Credits” means the emissions limitations which: (a) are issued by environmental Governmental
Authorities; (b) authorize the emission of a fixed amount of pollutants; and (c) are utilized as a market-based mechanism for reducing pollution. 
  
 “Enforcement Proceeds” has the meaning set forth in the Security and Intercreditor Agreement. 
  

 14 

 “Environmental Action” means any action, suit, demand letter,
claim by any Governmental Authority, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating to any Environmental Law, Environmental Permit or
Hazardous Material or arising from alleged injury or threat to health and safety or the environment relating to any Environmental Law, including (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or
other actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 
  
 “Environmental Law” means any Federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or legally binding judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health and safety as it relates to
Hazardous Materials or natural resources, including those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 
  
 “Environmental Permit” means any permit, approval, identification number, license or
other authorization required under any Environmental Law. 
  
 “EPMI Litigation” means that litigation arising out of that complaint filed under the caption In re Enron Corp., et al; Enron Power Marketing, Inc. v. Allegheny Energy Supply Company,
LLC (01-16034 (AJG) Adversary Proceeding). 
  
 “Equity Interests” means, with respect to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from
such Person of shares of capital stock of (or other ownership or profit interests in) such Person, non-Debt securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person, warrants,
rights or options for the purchase or other acquisition from such Person of such shares (or such other interests), and other ownership 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 authorized or otherwise existing on any date of determination. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
  
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of the controlled group of the Borrower or any of its Subsidiaries, or under common control within the meaning of Section 414 of
the Internal Revenue Code, with the Borrower or any of its Subsidiaries. 
  
 “ERISA Event” means (a) (i) the occurrence of a reportable event, within the meaning of Section 4043(c) of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to
such event has been waived by the PBGC or (ii) the 
  

 15 

 requirements of Section 4043(b) of ERISA apply with respect to a contributing sponsor, as defined in
Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a
minimum funding waiver in accordance with Section 412(d) of the Internal Revenue Code with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a facility of the Borrower or any of its Subsidiaries or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Borrower or any of its Subsidiaries or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) a
lien has been imposed under Section 302(f) of ERISA with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of security to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such
Plan, provided, however, that the occurrence of the event or condition described in Section 4042(a)(4) of ERISA shall be an ERISA Event only if the PBGC has notified the Borrower, any Subsidiary or any ERISA Affiliate that it intends to
institute proceedings to terminate a Plan pursuant to such section. 
  
 “Eurocurrency Liabilities” has the meaning set forth in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Eurodollar Rate Advances” means any
Advance bearing interest pursuant to the terms of the relevant Credit Agreement at the Eurodollar Rate (as defined in such Credit Agreement). 
  
 “Event of Default” has the meaning specified in Section 6.01. 
  
 “Excluded Assets” (a) any assets or
property of any Excluded Subsidiary and (b) the Equity Interests in each of Conemaugh, Mon Synfuel, LLC, NYC Energy LLC and Allegheny Energy Units 3, 4 and 5 LLC; provided, however, that in the event that any of Conemaugh, Mon Synfuel,
LLC, NYC Energy LLC, Allegheny Energy Units 3, 4 and 5 LLC or any of their respective Subsidiaries shall at any time hold assets or property with a fair market value of more than $10,000,000, then such Equity Interests shall cease to constitute
“Excluded Assets” and shall constitute Collateral for all purposes of this Agreement and the Security and Intercreditor Agreement. 
  
 “Excluded Subsidiaries” means each of AGC and any of its Subsidiaries, Buchanan Generation LLC, Conemaugh, Mon
Synfuel, LLC, Allegheny Energy Units 3, 4, 5 LLC and NYC Energy LLC and each of their respective Subsidiaries; provided, however that each such Subsidiary shall cease to constitute an “Excluded Subsidiary” in
the event that (a) with respect to AGC, AGC shall not longer by restricted or prohibited 
  

 16 

 under any agreement for Debt for Borrowed Money permitted to exist or be incurred pursuant to the terms
of this Agreement from granting a Lien over its assets or property in favor of the Secured Parties, (b) with respect to Buchanan Generation LLC and any of its Subsidiaries, Buchanan Generation LLC shall no longer be restricted or prohibited under
its Constituent Documents or any other written agreement among the Persons holding Equity Interests therein from granting a Lien over its assets or property in favor of the Secured Parties, and (c) with respect to Conemaugh, Mon Synfuel, LLC,
Allegheny Energy Units 3, 4, 5 LLC, NYC Energy LLC or any of their respective Subsidiaries, at any time after the date hereof, such Person shall (i) hold assets with a fair market value in excess of $10,000,000 and (ii) is not restricted or
prohibited by its Constituent Documents or any other written agreement among the Persons holding Equity Interests therein from granting a Lien over its assets or property in favor of the Secured Parties 
  
 “Existing Debt” means all Debt, as
of the date hereof, of the Borrower and its Subsidiaries. 
  
 “Existing Indentures” means (a) the Indenture dated March 15, 2001 between the Borrower, as issuer, and Bank One Trust Company, N.A., as trustee and (b) the Indenture dated as of April 8, 2002
between the Borrower, as issuer, and Bank One Trust Company, N.A., as trustee. 
  
 “Existing Lender Debt” means all Debt owed by the Borrower to the Existing Lenders under the Existing Lender Debt
Documents. 
  
 “Existing Lender Debt
Documents” has the meaning set forth in Preliminary Statement (1) to this Agreement. 
  
 “Existing Lenders” has the meaning set forth in Preliminary Statement (1) to this Agreement. 
  
 “Existing Letters of Credit” means
each of those letters of credit listed on Schedule 1.01 hereto. 
  
 “Existing Mortgage” means each mortgage, deed of trust, trust deed, leasehold mortgage or leasehold deed of trust recorded and on file with any necessary recording office in order to create a
valid Lien over the Collateral in favor of the Existing Lenders and the Senior Note Noteholders with respect to the Secured Obligations owed to the Existing Lenders and the Senior Note Noteholders under the Existing Lender Debt Documents and the
Senior Secured Notes. 
  
 “Existing
Parent Credit Agreement” means that certain Credit Agreement, dated as of February 21, 2003, by and among the Parent and certain of its Subsidiaries, as borrowers, the lenders party thereto from time to time, J.P. Morgan Chase Bank, as
AYE Issuing Bank, and Citibank, N.A., as AYE Lender Agent. 
  
 “Existing Secured Lender Debt” means all outstanding Existing Lender Debt which is secured by the Group Assets pursuant to the terms of the Security and Intercreditor Agreement and any other
related security documents, including, without limitation, the Existing Mortgages. 
  

 17 

 “Existing Unsecured Lender Debt” means all outstanding Existing
Lender Debt other than the Existing Secured Lender Debt. 
  
 “Facilities” means each of the Group Assets Facility, the Springdale Facility and the Term C Facility. 
  

“Fair Market Value” shall mean with respect to any asset the price at which a willing buyer would purchase such
asset from a willing seller, assuming that both buyer and seller are rational and have reasonable knowledge of all relevant facts. 
  
 “Fee Letters” means, collectively, (a) any fee letter between the Borrower and any Agent and (b) any fee letter
among the Borrower, the Parent and any Arranger Party. 
  
 “Financing Documents” means this Agreement, the Assignment Agreement, the Springdale Agency Letter Agreement, the Credit Agreements, the Notes, the Fee Letters and the Collateral Documents. 
  
 “Fiscal Year” means a fiscal year of
the Borrower and its Consolidated Subsidiaries ending on December 31 in any calendar year. 
  
 “Form 10-K” has the meaning set forth in Section 4.01(h). 
  
 “GAAP” has the meaning specified in
Section 1.02(c). 
  
 “Gleason
Lessor” means The Industrial Board of Weakley County Tennessee, a public not-for-profit corporation of the State of Tennessee. 
  
 “Governmental Approvals” has the meaning specified in Section 4.01(d). 
  
 “Governmental Authority” means any
national, state, county, city, town, village, municipal or other de jure or de facto government department, commission, board, bureau, agency, authority or instrumentality of a country or any political subdivision thereof or any
regional transmission authority organized pursuant to federal law, and any Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any of the foregoing entities, including all commissions,
boards, bureaus, arbitrators and arbitration panels, and any authority or other Person controlled by any of the foregoing. 
  
 “Group Assets” means all assets or property of the Loan Parties other than (a) the Springdale Assets and (b) the
Excluded Assets. 
  
 “Group Assets
Facility” has the meaning set forth in Preliminary Statement (4) of this Agreement. 
  

 18 

 “Group Assets Liens” has the meaning set forth in the Security
and Intercreditor Agreement. 
  
 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other
chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law. 
  
 “Hedge Agreements” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions,
forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other
similar transactions or any combination of the foregoing (including any option to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind,
and the related confirmations, which are subject to the terms and conditions of, or are governed by, any form of master agreement published by the International Swaps and Derivative Association, Inc., any International Foreign Exchange Master
Agreement or any other master agreement (including such master agreement, together with any related schedules, a “Master Agreement”) including any such obligations or liabilities under any Master Agreement. 
  
 “Indemnified Costs” has the meaning
set forth in Section 8.05(a). 
  
 “Indemnified Party” has the meaning set forth in Section 9.04(b). 
  
 “Information Memorandum” means the information memorandum dated February 2004 used by the Arrangers in connection
with the syndication of the Facilities. 
  
 “Insolvency Proceeding” means, with respect to any Person, (a) any proceeding instituted against such Person seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee or other similar official for it or for any substantial part of its property and either such proceeding shall remain undismissed or unstayed for a period of 60 consecutive days or the entry by any competent Governmental Authority of any
jurisdiction or a court having jurisdiction in the premises of a decree or order approving or ordering any of the actions sought in such proceeding (including the entry of an order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or any substantial part of its property); or (b) commencement by such Person of a voluntary case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or of any
other case or proceeding to be 
  

 19 

 adjudicated as bankrupt or insolvent, or the consent by such Person to the entry of a decree or order for
relief in respect of such Person in an involuntary case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against such Person, or
the filing by such Person of a petition or answer or consent seeking reorganization or relief under any Applicable Law; or consent by such Person to the filing of such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of such Person or of any substantial part of the property of such Person, or the making by such Person of an assignment for the benefit of creditors or any other marshalling of
the assets and liabilities of such Person, or the admission by such Person in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by such Person in furtherance of any such action. 
  
 “Intercreditor Agent” has the
meaning set forth in the Security and Intercreditor Agreement. 
  
 “Intercreditor Agreement” means that certain Intercreditor Agreement, dated as of February 21, 2003, among Citibank, N.A., as AYE Lender Agent, New Money Lender Agent, Refinancing Lender Agent
and Intercreditor Agent, The Bank of Nova Scotia, as Springdale Lender Agent, Law Debenture Trust Company of New York, as Indenture Trustee, the Parent and the Borrower. 
  
 “Interest Coverage Ratio” means, at any date of determination, the ratio of (a)
Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such date, taken as one accounting period to (b) the Consolidated Interest Expense for the period of four consecutive fiscal quarters most
recently ended on or prior to such date, taken as one accounting period. 
  
 “Intralinks” means the digital internet workspace located at http://www.intralinks.com. 
  
 “Investment” in any Person means any loan or advance to such Person, any purchase or other acquisition of any
Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital contribution to such Person or any other direct or indirect investment in such Person, including
any acquisition by way of a merger or consolidation and any arrangement pursuant to which the investor incurs Debt of the types referred to in clause (j) or (k) of the definition of “Debt” in respect of such Person.

  
 “JPMC” has the
meaning set forth in the definition of the term “Arranger Parties”. 
  
 “Lenders” means the Term B Lenders and the Term C Lenders. 
  
 “Leverage Ratio” means, as of any
date of determination, the ratio of (a) Consolidated Debt for Borrowed Money of the Borrower for the period of four consecutive fiscal quarters most recently ended on or prior to such date, taken as one accounting period, to (b) Consolidated EBITDA
for the period of four consecutive fiscal quarters most recently ended on or prior to such date, taken as one accounting period. 
  

 20 

 “Lien” means any lien, mortgage, deed of trust, pledge, security
interest or other charge or encumbrance of any kind, including the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 
  
 “Loan Party” has the meaning set
forth in the recital of the parties hereto. 
  
 “Mandatory Prepayment” has the meaning set forth in Section 2.04(b)(i). 
  
 “Mandatory Prepayment Amounts” has the meaning set forth in Section 2.04(b)(ii). 
  
 “Margin Stock” has the meaning
specified in Regulation U. 
  
 “Material Adverse Change” means any material adverse change in the business, condition (financial or otherwise), operations, performance, properties, assets, liabilities (actual or contingent) results of operations
or prospects of the Borrower and its Subsidiaries, taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or otherwise), operations, performance, properties or prospects of the Borrower and its
Subsidiaries, taken as a whole, (b) the rights and remedies of any Secured Party under any Financing Document, and (c) the ability of any Loan Party to perform its Obligations under any Financing Document to which it is or is to be a party.

  
 “Material Contracts”
means (a) the Affiliate Energy Contracts, (b) the Operating Agreements, (c) the Tax Allocation Agreement and (d) each contract or agreement entered into after the date of this Agreement to which the Borrower or any of its Subsidiaries is a party
which is material to the business, conditions (financial or otherwise), operations, performance, properties or prospects of the Borrower or the Borrower and its Subsidiaries, taken as a whole, and for which breach, non-performance, cancellation or
failure to renew could be reasonably expected to have a Material Adverse Effect. 
  
 “Material Governmental Approvals” means those Governmental Approvals listed in Part A of Schedule 4.01(d).

  
 “Material Property”
means such real property of any Loan Party (other than Excluded Assets), which real property (a) has a book value greater than or equal to $5,000,000, (b) is subject to a Mortgage or (c) is otherwise material to the value of any real property of any
Loan Party which is subject to a Lien under the Mortgages. 
  
 “Maturity Date” means (a) with respect to the Term B Facility, the Term B Maturity Date and (b) with respect to the Term C Facility, the Term C Maturity Date. 
  

 21 

 “Merrill Lynch Litigation” means that litigation
arising out of that complaint filed under the caption Merrill Lynch & Co., Inc., et al v. Allegheny Energy, Inc. and Allegheny Energy, Inc. et al. v. Merrill Lynch & Co., Inc., et al. (02 CV 7689 (HB)). 
  
 “ML Interests” means the up to 2% of
all issued and outstanding Equity Interests in the Borrower which are owned by ML IBK Positions, Inc, a Delaware corporation. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Mortgages” means the Existing
Mortgages, the Term Mortgages, the Springdale Mortgages and any other mortgage, deed of trust, trust deed, leasehold mortgage or leasehold deed of trust recorded and filed with any necessary recording office from time to time in order to create a
valid Lien over the Collateral in favor of the Secured Parties in respect of the Secured Obligations owed to such Secured Parties pursuant to the terms of this Agreement or the Security and Intercreditor Agreement. 
  
 “Mortgage Policies” means the title
insurance policies insuring the Mortgages delivered pursuant to Sections 3.01(a)(iv), 3.01(a)(v), and 5.01(p). 
  
 “MPC” means Monongahela Power Company, a corporation incorporated under the laws of the State of Ohio. 

 
 “Multiemployer Plan” means a
multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the Borrower or any of its Subsidiaries or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made
or accrued an obligation to make contributions. 
  
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any of its Subsidiaries or any ERISA Affiliate and at least
one Person other than the Borrower, its Subsidiaries and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower and any of its Subsidiaries or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA
in the event such plan has been or were to be terminated. 
  
 “Net Cash Proceeds” means, with respect to any sale, lease, transfer or other disposition of any asset or property or the incurrence or issuance of any Debt or the sale or issuance of any
Equity Interests (including, without limitation, any capital contribution) by any Person, the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of deferred consideration or
received from escrow) by or on behalf of such Person in connection with such transaction after deducting therefrom only (without duplication) the following (to the extent directly and primarily relating to such transaction): (a) reasonable and
customary brokerage commissions, underwriting fees and discounts, legal, consultant and advisor fees, finder’s fees and other similar fees and commissions, (b) the amount of taxes (or amounts owing pursuant to the Tax Allocation Agreement)
payable in connection with or as a result of such transaction, and (c) in the case of any sale, lease, transfer or other disposition of any asset or property, (i) the amount of (A) any Debt 
  

 22 

 secured by a prior Lien on the asset or property which is the subject of such sale, lease, transfer or
other disposition or (B) Debt outstanding under the Pollution Control Bonds that is, in either case, repaid, redeemed or defeased upon such disposition as required pursuant to the terms of (1) the agreement or instrument governing such Debt or (2)
any undertaking or agreement of the Borrower made on or prior to February 21, 2003 in favor of the issuer of any guaranty, surety bond or insurance policy issued for the benefit of the holders of such Debt, including, each of the consents, dated
February 21, 2003, entered into among (y) the Borrower, PEC and MBIA Insurance Corporation and (z) the Borrower, WPPC and MBIA Insurance Corporation, (ii) the costs associated (in the Borrower’s best estimate) with terminating all Hedge
Agreements, if any, entered into in connection with such property or asset, which Hedge Agreements are not being transferred as part of such sale, lease, transfer or other disposition, but only to the extent that the amounts so deducted are, at the
time or within a reasonable time (not to exceed ten days) of receipt of such cash, actually paid to a Person that is not an Affiliate of such Person or any Loan Party or any Affiliate of any Loan Party and are properly attributable to such
transaction or to the asset or property that is the subject thereof and (iii) any amounts received from funds that were held in escrow as of the Closing Date with respect to any sale, lease, transfer or other disposition of any asset or property
consummated prior to the Closing Date; provided, that, in the case of taxes or termination costs that are deductible under clause (b) or (c)(ii) above but for the fact that, at the time of receipt of such cash, such amounts have not been
actually paid or are not then payable, such Person may deduct an amount (the “Reserved Amount”) equal to the amount reserved in accordance with GAAP for such Person’s reasonable estimate of such amounts, other than taxes
for which the Borrower or such Subsidiary is indemnified; provided further that, at the time such amounts are paid, an amount equal to the amount, if any, by which the Reserved Amount for such amounts exceeds the amount of such amounts
actually paid shall constitute “Net Cash Proceeds” of the type for which such amounts were reserved for all purposes hereunder. 
  
 “New Money Credit Agreement” has the meaning set forth in Preliminary Statement (1) of this Agreement. 

 
 “New Parent Facility” has the
meaning set forth in Preliminary Statement (6) of this Agreement. 
  
 “New Parent Facility Documents” means the credit or loan agreement to be entered into by the Parent in connection with the Debt to be incurred by the Parent under the New Parent Facility and
any other related agreement or instrument entered into by the Parent or any of its Subsidiaries in connection with the New Parent Facility. 
  
 “Non-UCC Property” means any of the Collateral consisting of personal property the creation, granting or
perfection of a Lien upon or in which is governed by Applicable Law other than the UCC and Applicable Law under, or relating to, the UCC. 
  
 “Note” means a promissory note of the Borrower payable to the order of a Lender and issued pursuant to the terms
of the relevant Credit Agreement, evidencing the aggregate indebtedness of the Borrower owed to such Lender resulting from the Advances made by such Lender pursuant to the Credit Agreements. 
  

 23 

 “Noteholder Prepayment Account” has the meaning specified in the
Security and Intercreditor Agreement. 
  
 “Notice of Bank Facility Default” has the meaning set forth in Section 7.01(a)(2). 
  
 “Notice of Default” has the meaning set forth in Section 7.01(a). 
  
 “NPL” means the National Priorities
List under CERCLA. 
  
 “Obligation” means, with respect to any Person, any payment, performance or other obligation of such Person of any kind, including any liability of such Person on any claim, whether or not the right of any creditor
to payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or otherwise affected
by any proceeding referred to in Section 6.01(g). Without limiting the generality of the foregoing, the Obligations of any Loan Party under the Financing Documents include (a) the obligation to pay principal, interest, commissions, charges,
expenses, fees, attorneys’ and consultants’ fees and disbursements, indemnities and other amounts payable by such Loan Party under any Financing Document and (b) the obligation of such Loan Party to reimburse any amount in respect of any
of the foregoing that any Secured Party, in its sole discretion, may elect to pay or advance on behalf of such Loan Party. 
  
 “Officer’s Certificate” means, with respect to any Person, a certificate signed by a Responsible Officer of
such Person. 
  
 “Operating Account
Bank” means an institution at which an Operating Account has been established as specified in Part B of Schedule 4.01(z). 
  
 “Operating Accounts” means all those bank and securities accounts of the Borrower and the other Loan Parties set
forth in Part B of Schedule 4.01(z). 
  
 “Operating Agreements” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Other Perfection Requirements” means (a) the giving of notice to any Person (other than an Affiliate of the
Borrower or an Operating Account Bank) of the Liens created by the Loan Parties under the Collateral Documents and (b) any recording, notice, filing, registration, instrument or act required to be undertaken, made or executed in order to grant or
perfect any Lien over Non-UCC Property. 
  
 “Other Refinancing Documents” has the meaning set forth in Section 3.01(a)(xvii). 
  

 24 

 “OVEC Agreement” means the Agreement dated the 10th of July, 1953 and originally entered into by and among Ohio Valley Electric Corporation, Appalachian Electric Power Company,
The Cincinnati Gas & Electric Company, Columbus and Southern Ohio Electric Company, The Dayton Power and Light Company, Indiana & Michigan Electric Company, Kentucky Utilities Company, Louisville Gas and Electric Company, Monongahela Power
Company, Ohio Edison Company, The Ohio Power Company, Pennsylvania Power Company, The Potomac Edison Company, Southern Indiana Gas and Electric Company, The Toledo Edison Company, and West Penn Power Company. 
  
 “Parent” has the meaning set forth
in Preliminary Statement (6) of this Agreement. 
  
 “Parent Term Facility” has the meaning set forth in Preliminary Statement (6) of this Agreement. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
  
 “PCB Liens” means Liens existing on
the date hereof securing Pollution Control Bonds. 
  
 “PEC” means The Potomac Edison Company, a corporation incorporated under the laws of the State of Maryland and of the State of Virginia. 
  
 “Permitted Liens” means such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens for taxes, assessments and governmental charges or levies to the extent not required to be paid under Section 5.01(d); (b) Liens imposed by law, such as
materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than 30 days, or which
are subject to Contest; (c) Liens or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; (d) deposits to secure the performance of bids, leases (other than Capital
Leases), trade contracts, public or statutory obligations (including environmental, municipal and public utility commission and obligations under Applicable Law), surety bonds (other than bonds related to judgments or litigation), performance bonds
and other obligations of a like nature; (e) Liens securing judgments for the payment of money not constituting an Event of Default under Section 6.01(h) or securing appeal or other surety bonds related to such judgments; (f) zoning restrictions,
easements, rights of way and other encumbrances on title to real property that do not render title to the property encumbered thereby unmarketable or materially adversely affect the use of such property for its present purposes; (g) Liens securing
reimbursement obligations with respect to letters of credit (which reimbursement obligations relate to Debt which has not been incurred in contravention of the terms of this Agreement and the other Financing Documents) that encumber documents and
other property relating to such letters of credit and the proceeds and products thereof, including, without limitation, such Liens arising in connection with the issuance of letters of credit on behalf of the Parent to support 
  

 25 

 obligations of the Borrower and its Subsidiaries under Hedge Agreement to the extent that such Hedge
Agreements are entered into in accordance with the terms of this Agreement; (h) Liens on cash deposits in the nature of a right of setoff, banker’s lien, counterclaim or netting of cash amounts owed arising in the ordinary course of business on
deposit accounts, commodity accounts and securities accounts; (i) financing statements filed on a precautionary basis in respect of operating leases to the extent such lease is otherwise permitted under the terms of this Agreement; provided
that no such financing statement extends to or refers to as collateral any property or assets which are not subject to such operating lease; and (j) rights of first refusal, options or other contractual rights or obligations to sell, assign or
otherwise dispose of any property or asset or interest therein which rights of first refusal, option or contractual right is in connection with a sale, transfer or other disposition of assets permitted under Section 5.02(e). 
  
 “Permitted Refinancing Debt” means
Debt issued or incurred (including by means of the extension or renewal of existing Debt) to refinance, refund, extend, renew or replace existing Debt (“Refinanced Debt”); provided that (a) the principal amount of such
refinancing, refunding, extending, renewing or replacing Debt is not greater than the principal amount of such Refinanced Debt plus the amount of any premiums or penalties and accrued and unpaid interest paid thereon and reasonable fees and
expenses, in each case associated with such refinancing, refunding, extension, renewal or replacement, (b) such refinancing, refunding, extending, renewing or replacing Debt has a final maturity date that is no sooner than, and a weighted average
life to maturity that is no shorter than, such Refinanced Debt, (c) if such Refinanced Debt is subordinated to the Secured Obligations hereunder, such refinancing, refunding, extending, renewing or replacing Debt remains so subordinated on terms no
less favorable to the Lenders, (d) the obligors in respect of such Refinanced Debt immediately prior to such refinancing, refunding, extending, renewing or replacing and any additional person (other than a Loan Party) are the only obligors on such
refinancing, refunding, extending, renewing or replacing Debt and (e) such refinancing, refunding, extending, renewing or replacing Debt contains covenants and events of default which, taken as a whole, are determined in good faith by a Responsible
Officer of the Borrower to be customary for similar issuances of Debt by issuers of a similar credit rating or standing as the credit rating then applicable to the Borrower, but, in no event, less favorable to the Borrower or the applicable
Subsidiary and the Lenders in any material respect than the covenants and events of default contained in this Agreement. 
  
 “Person” means an individual, partnership, corporation (including a business or statutory trust), limited
liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
  
 “PJM Interconnection Agreements” means (a) the West Transmission Owners Agreement
dated as of March 13, 2001, made by and among Allegheny Power System operating companies: Monongahela Power Company, The Potomac Edison Company and West Penn Power Company, all doing business as Allegheny Power and other signatories that own
electric transmission facilities, and PJM Interconnection, L.L.C., (b) the PJM 
  

 26 

 West Reliability Assurance Agreement dated as of March 14, 2001, by and among Monongahela Power Company,
The Potomac Edison Company and West Penn Power Company, all doing business as Allegheny Power, and the party signatories thereto and (c) the Amended and Restated Operating Agreement of PJM Interconnection, L.L.C., dated as of June 2, 1997 by and
among the signatories thereto. 
  
 “Plan” means a Single-Employer Plan or a Multiple Employer Plan. 
  
 “Platform” has the meaning specified Section 9.02(c). 
  
 “Pleasants Power Station Loss
Amount” means, with respect to any fiscal quarter during the Fiscal Year ending December 31, 2004, an amount certified by the Chief Financial Officer of the Borrower at the time of delivery of financial statements for such fiscal
quarter pursuant to Section 5.04(b) or 5.04(c) to be the sum of the (a) income loss to the Borrower and its Subsidiaries plus (b) cash expenses incurred by the Borrower and its Subsidiaries as a direct result of the generator failure
occurring in respect of Unit No. 1 at Pleasants Power Station located in St. Mary’s, West Virginia as certified by the Chief Financial Officer; provided that such certification shall be accompanied by evidence supporting the computation
of such amount, which evidence is determined by the Administrative Agent to be reasonably satisfactory in nature; provided further that in no event shall such amount exceed $32,500,000 in the aggregate for the Fiscal Year ending December 31,
2004. 
  
 “Pledged
Account” means any deposit or securities account maintained in the name of the Collateral Agent and under the sole control and dominion of the Collateral Agent pursuant to the terms of the Security and Intercreditor Agreement.

  
 “Pledged Debt” has
the meaning set forth in the Security and Intercreditor Agreement. 
  
 “PNC Control Agreement” means that certain Deposit Account Control Agreement, dated as of February 21, 2003, among PNC Bank, National Association, as the Bank, the Borrower, Energy Financing
Company, LLC, Allegheny Energy Supply Capital, LLC, Allegheny Energy Supply Development Services, LLC, Allegheny Energy Supply Capital Midwest, LLC, Allegheny Energy Supply Gleason Generating Facility, LLC, Allegheny Energy Supply Wheatland
Generating Facility, LLC, Allegheny Energy Supply Lincoln Generating Facility, LLC and Allegheny Trading Finance Company, LLC, as Debtors, and the Collateral Agent, as Creditor. 
  
 “Pollution Control Bond Indentures” means (a) the Trust Indenture dated as of April
15, 1992 between the County Commission of Harrison County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee,
providing for Solid Waste Disposal Revenue Bonds (West Penn Power Company Harrison Station Project), (b) the Trust Indenture dated as of November 1, 1977 between Pleasants County, West Virginia and J.P. Morgan Trust Company, National Association
(formerly Chase Manhattan Trust Company, National Association, successor trustee to 
  

 27 

 Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (West Penn Power Company
Pleasants Station Project), (c) the Trust Indenture dated as of December 1, 1980 between Washington County Industrial Development Authority and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National
Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (West Penn Power Company Mitchell Station Project), (d) the Trust Indenture dated as of April 15, 1983 between the County Commission of
Monongalia County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds
(West Penn Power Company Fort Martin Station Project), (e) the Trust Indenture dated as of February 1, 1977 between Greene County Industrial Development Authority and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust
Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (West Penn Power Company Hatfield’s Ferry Project), (f) the Trust Indenture dated as of April 15, 1992 between the
County Commission of Harrison County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Solid Waste
Disposal Revenue Bonds (The Potomac Edison Company Harrison Station Project), (g) the Trust Indenture dated as of November 1, 1977 between Pleasants County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan
Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (The Potomac Edison Company Pleasants Station Project), (h) the Trust Indenture dated as of April 15, 1983
between the County Commission of Monongalia County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for
Pollution Control Revenue Bonds (The Potomac Edison Company Fort Martin Station Project), (i) the Trust Indenture dated as of February 1, 1977 between Greene County Industrial Development Authority and J.P. Morgan Trust Company, National Association
(formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (Monongahela Power Company Hatfield’s Ferry Project), (j) the Trust Indenture
dated as of November 1, 1977 between Pleasants County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing
for Pollution Control Revenue Bonds (Monongahela Power Company Pleasants Station Project), (k) the Trust Indenture dated as of April 15, 1983 between the County Commission of Monongalia County, West Virginia and J.P. Morgan Trust Company, National
Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank, N.A.), as Trustee, providing for Pollution Control Revenue Bonds (Monongahela Power Company Fort Martin Station Project), and (l) Trust
Indenture dated as of April 15, 1992 between the County Commission of Harrison County, West Virginia and J.P. Morgan Trust Company, National Association (formerly Chase Manhattan Trust Company, National Association, successor trustee to Mellon Bank,
N.A.), as Trustee, providing for Solid Waste Disposal Revenue Bonds (Monongahela Power Company Harrison Station Project). 
  

 28 

 “Pollution Control Bonds” means all notes, bonds and other
instruments evidencing Debt issued pursuant to the Pollution Control Bond Indentures. 
  
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are entitled
to a preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
  
 “Prepayment Account” has the meaning
set forth in Section 2.04(b)(iv)(A). 
  
 “Prepayment Dates” means the Term B Prepayment Date and the Term C Prepayment Date. 
  
 “Priority First” has the meaning set forth in Section 2.04(b)(iv)(E). 
  
 “PUHCA” means the Public Utility
Holding Company Act of 1935, as amended. 
  
 “Qualifying Obligation” means an Obligation in an aggregate principal amount in excess of $5,000,000. 
  
 “Receipt Date” has the meaning set forth in Section 2.04(b)(iv)(B). 
  
 “Redeemable” means, with respect to
any Equity Interest, any Debt or any other right or Obligation, any such Equity Interest, Debt, right or Obligation that (a) the issuer has undertaken to redeem at a fixed or determinable date or dates, whether by operation of a sinking fund or
otherwise, or upon the occurrence of a condition not solely within the control of the issuer or (b) is redeemable at the option of the holder. 
  
 “Refinancing Credit Agreement” has the meaning set forth in Preliminary Statement (1) of this Agreement.

  
 “Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Representatives” has the meaning specified in Section 9.11(a). 
  
 “Required Lenders” means, at any
time, Lenders owed or holding at least a majority in interest of the sum of (a) the aggregate amount of the Commitments (if any) under the Facilities at such time plus (b) the aggregate principal amount of all Advances (if any) outstanding at
such time. 
  
 “Required Term B
Lenders” means, at any time, Term B Lenders owed or holding at least a majority in interest of the sum of (a) the aggregate amount of the Commitments (if any) under the Term B Facility at such time plus (b) the aggregate
principal amount of the outstanding Term B Advances (if any) at such time. 
  

 29 

 “Responsible Officer” means, with respect to any Person, the
president, any vice-president, the treasurer, the chief financial officer or an Authorized Signatory of such Person. 
  
 “Revolving Credit Facility” has the meaning set forth in Preliminary Statement (6) of this Agreement. 

 
 “S&P” means Standard &
Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  
 “Scotia” has the meaning set forth in the definition of the term “Arranger Parties”. 
  

“SEC” means the Securities and Exchange Commission. 
  
 “Secured Obligations” has the
meaning set forth in the Security and Intercreditor Agreement. 
  
 “Secured Party” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Secured Replacement Senior Debt Obligations” has the meaning set forth for such term in the Security and
Intercreditor Agreement before giving effect to the SIA Amendment. 
  
 “Security and Intercreditor Agreement” means that certain Security and Intercreditor Agreement, dated as of February 21, 2003, as amended, modified or otherwise supplemented from time to time
in accordance with its terms, including, pursuant to the SIA Amendment, made by and among the Borrower, the other Loan Parties named therein, each of the Existing Lenders, Bank One, NA, as Refinancing Issuing Bank, Citibank, N.A., as Refinancing
Lender Agent, New Money Lender Agent, Collateral Agent, Intercreditor Agent and Depository Bank, The Bank of Nova Scotia, as Springdale Lender Agent, Springdale Special Draw Agent and Documentation Agent, JPMorgan Chase Bank, as Syndication Agent
and Law Debenture Trust Company of New York, as Indenture Trustee. 
  
 “Senior Debt Obligations” means, without duplication, (a) the Obligations of the Borrower to pay principal and interest on the Advances (including any interest accruing after the filing of a
petition with respect to, or the commencement of, any Insolvency Proceeding, whether or not a claim for post-petition interest is allowed in such proceeding), and (b) any and all commissions, fees, indemnities, prepayment premiums, costs and
expenses and other amounts payable to any Lender, any Agent or any Arranger Party under any Financing Document, including all renewals or extensions thereof (including any reimbursement obligations for costs and expenses incurred by any Secured
Party in preserving any rights, interests and remedies with respect to the Collateral and/or the Liens granted in favor of the Secured Parties); provided that notwithstanding anything to the contrary in any Financing Document,
“Senior Debt Obligations” shall not include any Obligations of the Borrower owed to any of its Affiliates. 
  

 30 

 “Senior Note Indenture” means the Amended and Restated Indenture,
dated as of February 21, 2003, between the Borrower, as issuer, Law Debenture Trust Company of New York, as Indenture Trustee, and Bank One Trust Company, N.A., in respect of the senior notes due 2007 issued thereunder. 
  
 “Senior Note Noteholders” means the
holders of the Senior Notes. 
  
 “Senior Notes” means the Senior Secured Notes and the Senior Unsecured Notes. 
  
 “Senior Secured Notes” means those certain secured 10.25% Senior Notes due 2007 issued by the Borrower pursuant to
the terms of the Senior Note Indenture and designated as Amended A Notes by the terms thereof. 
  
 “Senior Unsecured B Notes” means those certain unsecured 10.25% Senior Notes due 2007 issued by the Borrower
pursuant to the Senior Note Indenture and designated as Amended B Notes by the terms thereof. 
  
 “Senior Unsecured C Notes” means those certain unsecured 10.25% Senior Notes due 2007 issued by the Borrower
pursuant to the Senior Note Indenture and designated as Amended C Note by the terms thereof. 
  
 “Senior Unsecured Notes” means the Senior Unsecured B Notes and the Senior Unsecured C Notes. 
  
 “SIA Amendment” has the meaning set
forth in Section 3.01(a)(iii). 
  
 “Single-Employer Plan” means a single-employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any of its Subsidiaries or any ERISA Affiliate and no Person
other than the Borrower or any of its Subsidiaries and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any of its Subsidiaries or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event
such plan has been or were to be terminated. 
  
 “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person, (b) the fair value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and
matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the
light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  

 31 

 “Springdale Advances” means the Advances owed from time to time
by the Borrower to the Term B Lenders under the Springdale Facility. 
  
 “Springdale Agency Letter Agreement” has the meaning set forth in Preliminary Statement (7) of this Agreement. 
  
 “Springdale Assets” has the meaning set forth in the Security and Intercreditor
Agreement. 
  
 “Springdale
Borrowing” means the continuation of the Springdale Advances outstanding under the Springdale Tranche B Facility by the Term B Lenders pursuant to the Term B Credit Agreement. 
  
 “Springdale Credit Agreement” has
the meaning set forth in Preliminary Statement (1) of this Agreement. 
  
 “Springdale Facility” has the meaning set forth in Preliminary Statement (4) of this Agreement. 
  
 “Springdale Liens” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Springdale Mortgages” has the
meaning set forth in Section 3.01(a)(v). 
  
 “Springdale Obligations” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Springdale Plant” has the meaning set forth in the Security and Intercreditor Agreement. 
  
 “Springdale Tranche A Facility” has
the meaning set forth in Preliminary Statement (2) of this Agreement. 
  
 “Springdale Tranche B Facility” has the meaning set forth in Preliminary Statement (2) of this Agreement. 
  
 “Springdale Tranche C Facility” has the meaning set forth in Preliminary Statement
(2) of this Agreement. 
  
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding capital stock having
ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person,
by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 
  

 32 

 “Subsidiary Debt Default” means, with respect to any Subsidiary
of the Borrower, the failure of such Subsidiary to pay any principal or interest or other amounts due in respect of Debt, when and as the same shall become due and payable, or the occurrence of any other event or condition that results in any Debt
of such Subsidiary becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, lapse of time or both) the holder or holders of such Debt or any trustee or agent on its or their behalf to cause such
Debt to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity. 
  
 “Surviving Debt” means Debt of each Loan Party and its Subsidiaries outstanding immediately before and after
giving effect to the Transactions. 
  
 “Tax Allocation Agreement” means the Tax Allocation Agreement, dated as of July 1, 2003, by and among the Parent and its Subsidiaries. 
  
 “Taxes” means all federal, state, local or foreign income, gross receipts, windfall
profits, severance, property, production, sales, use, excise, franchise, employment, value added, real estate, withholding or similar taxes, assessments, fees, liabilities or other charges, together with any interest, additions or penalties with
respect thereto and any interest in respect of such additions or penalties. 
  
 “Term B Advance” means the Advances owed from time to time by the Borrower to the Term B Lenders under the Group Assets Facility. 
  
 “Term B Borrowing” means the making of any Term B Advances by the Term B Lenders
pursuant to the Term B Credit Agreement. 
  
 “Term B Credit Agreement” means that certain Amended and Restated Credit Agreement referred to in Preliminary Statement (4) of this Agreement dated as of February 21, 2003, as amended and restated in its entirety as
of the date hereof, among the Borrower, the Term B Lenders, the Administrative Agent and certain of the Arranger Parties. 
  
 “Term B Facility” has the meaning set forth in Preliminary Statement (4) of this Agreement. 
  
 “Term B Lender” means each of the
financial institutions that is listed on the signature pages hereto as a “Term B Lender” and each other Person that may become a “Term B Lender” party to the Term B Credit Agreement pursuant to the terms hereof and
thereof from time to time, in either case so long as such Person continues to be a party to the Term B Credit Agreement. 
  
 “Term B Maturity Date” means the “Maturity Date”, as such term is defined in the Term B Credit
Agreement. 
  

 33 

 “Term B Prepayment Date” has the meaning set forth in Section
2.04(b)(iv)(B). 
  
 “Term B Prepayment
Notice” has the meaning set forth in Section 2.04(b)(iv)(B). 
  
 “Term C Advance” means the Advances owed from time to time by the Borrower to the Term C Lenders under the Term C Facility. 
  
 “Term C Advances Prepayment Amount” has the meaning set forth in Section
2.04(b)(iv)(E). 
  
 “Term C
Borrowing” means the making of the Term C Advances by the Second Priority Lenders pursuant to the Term C Credit Agreement. 
  
 “Term C Credit Agreement” has the meaning set forth in Preliminary Statement (5) of this Agreement. 
  
 “Term C Facility” has the meaning
set forth in Preliminary Statement (5) of this Agreement. 
  
 “Term C Lender” means each of the financial institutions that is listed on the signature pages hereto as a “Term C Lender” and each other Person that may become a “Term
C Lender” party to the Term C Credit Agreement pursuant to the terms hereof and thereof from time to time, in either case so long as such Person continues to be a party to the Term C Credit Agreement. 
  
 “Term C Maturity Date” means the
“Maturity Date”, as such term is defined in the Term C Credit Agreement. 
  
 “Term C Prepayment Date” has the meaning set forth in Section 2.04(b)(iv)(E). 
  
 “Term C Prepayment Notice” has the
meaning set forth in Section 2.04(b)(iv)(E). 
  
 “Termination Date” means the earlier of April 15, 2004 and the date of termination in whole of the Commitments pursuant to Section 2.04 of the Credit Agreements or Section 6.02 hereof. 
  
 “Termination Event” means an event
described in Section 4042(a) of ERISA. 
  
 “Term Mortgages” has the meaning set forth in Section 3.01(a)(iv). 
  
 “Transactions” means (a) the Transfer, (b) the incurrence of Debt by the Parent under the New Parent Facility and
the refinancing of Debt outstanding under the Existing Parent Credit Agreement with the proceeds thereof, (c) the incurrence or continuance of Debt by the Borrower under the Financing Documents, the refinancing of certain of the Existing Secured
Lender Debt with the proceeds of certain of the Advances and available cash from operations, (d) the repayment in full of all Existing Unsecured Lender Debt with available cash from operations, (e) the effectiveness of the SIA Amendment and (f) the
other transactions contemplated by the Transaction Documents. 
  

 34 

 “Transaction Documents” means the Financing Documents and the
Other Refinancing Documents. 
  
 “Transfer” has the meaning set forth in Preliminary Statement (3) to this Agreement. 
  
 “UCC” or “Uniform Commercial Code” means the Uniform Commercial Code as in effect, from
time to time, in the State of New York; provided that if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of
perfection or non-perfection or priority. 
  
 “Voting Interests” means shares of capital stock issued by a corporation, or equivalent Equity Interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a contingency. 
  
 “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV
of ERISA. 
  
 “WPPC”
means West Penn Power Company, a corporation incorporated under the laws of the State of Pennsylvania. 
  
 Section 1.02 Principles of Interpretation. (a) Except to the extent expressly provided to the contrary in this Agreement and the Schedules and
Exhibits hereto, or to the extent that the context otherwise requires, in this Agreement and the Schedules and Exhibits hereto: 
  
 (i) the table of contents and Article and Section headings are for convenience only and shall not affect the interpretation of this
Agreement, the Schedules and Exhibits hereto or of any Financing Document; 
  
 (ii) references to any document, instrument or agreement, including any Financing Document, shall include (i) all exhibits, annexes, schedules, appendices or other attachments thereto and (ii) all documents,
instruments or agreements issued or executed in replacement thereof; 
  
 (iii) references to a document or agreement, including any Financing Document, shall be deemed to include any amendment, restatement, modification, supplement or replacement thereto entered into in accordance with the
terms thereof and the terms of the Financing Documents; 
  
 (iv) the words “include,” “includes” and “including” are not limiting; 
  

 35 

 (v) references to any Person shall include such Person’s successors and permitted
assigns (and in the case of any Governmental Authority, any Person succeeding to such Governmental Authority’s functions and capacities); 
  
 (vi) the words “hereof,” “herein” and “hereunder” and words of similar import when used
in this Agreement, the Schedules and Exhibits hereto or any Financing Document shall refer to this Agreement, the Schedules and Exhibits hereto or such Financing Document, as the case may be, as a whole and not to any particular provision thereof;

  
 (vii) references to “days”
shall mean calendar days; 
  
 (viii) the singular
includes the plural and the plural includes the singular; 
  
 (ix) references to Applicable Law, generally, shall mean Applicable Law as in effect from time to time, and references to any specific Applicable Law shall mean such Applicable Law, as amended, modified or
supplemented from time to time, and any Applicable Law successor thereto; 
  
 (x) in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each mean “to but excluding”; and 
  
 (xi) any reference in this Agreement or any other Financing Document to an Article, Section, Schedule, Appendix or Exhibit is to the article or section of, or a schedule, appendix or exhibit to, this Agreement or such
other Financing Document, as the case may be, unless otherwise indicated, and the Schedules, Appendices and Exhibits to this Agreement or any other Financing Document shall be deemed incorporated by reference into this Agreement or such other
Financing Document, as the case may be. 
  
 (b) This Agreement,
the Schedules and Exhibits hereto and the other Financing Documents are the result of negotiations among the parties hereto and their respective counsel. Accordingly, this Agreement, the Schedules and Exhibits hereto and the other Financing
Documents shall be deemed the product of all parties hereto or thereto, as the case may be, and no ambiguity in this Agreement, the Schedules and Exhibits hereto or any Financing Document shall be construed in favor of or against any Loan Party, any
Agent, any Arranger Party or Lender that is a party hereto. 
  
 (c) All accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with generally accepted
accounting principles as in effect from time to time, applied on a basis consistent (except for changes concurred in by the Borrower’s independent public accountants) with the most recent audited consolidated financial statements of the
Borrower and its Subsidiaries delivered to the Lenders (“GAAP”); provided that, if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any covenant in Section 5.03 to eliminate the effect
of any change in generally accepted accounting principles on the operation of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Section 5.03 for such purpose), then the 
  

 36 

 Borrower’s compliance with such covenant shall be determined on the basis of generally accepted accounting
principles in effect immediately before the relevant change in generally accepted accounting principles became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required
Lenders. 
  
 Section 1.03 Determination of Material Adverse
Change and Material Adverse Effect, Etc. Determinations of materiality generally and determinations as to whether any fact, event, circumstance, conditions or occurrence constitutes (or could reasonably be expected to constitute) a Material
Adverse Effect or a Material Adverse Change to the extent such determination is made by reference to the audited financial statements of the Borrower which are subject to a “going concern” qualification by the Borrower’s
auditors shall be made without taking into account or giving effect to such “going concern” opinion. 
  
 ARTICLE II 
 ADVANCES AND PAYMENTS

  
 Section 2.01 Availability of Advances. On the
Closing Date, each Lender shall severally, and on the terms and conditions set forth herein and in the relevant Credit Agreement (including the satisfaction or waiver of each of the applicable conditions precedent set forth in Article III, in each
Collateral Document and in such Credit Agreement), make and, to the extent applicable, continue Advances to, or for the account of, the Borrower in the amounts contemplated under the relevant Credit Agreement. 
  
 Section 2.02 Lenders’ Obligations Several. The failure of any
Lender to make or continue, as applicable, an Advance to the Borrower in accordance with any Credit Agreement shall not relieve any other Lender of its obligations under any Credit Agreement to make or continue, as applicable, its Advance
thereunder, but no Lender shall be responsible for the failure of any other Lender to make or continue, as applicable, an Advance under any Credit Agreement. 
  
 Section 2.03 No Reborrowing. The Borrower may not reborrow the principal amount of any Advance which is prepaid (whether the prepayment is an
optional prepayment, a mandatory prepayment, a prepayment upon acceleration or otherwise). 
  
 Section 2.04 Prepayments. (a) Notwithstanding anything in this Agreement or any other Financing Document to the contrary, the Lenders hereby agree as between themselves that if the Borrower makes a prepayment
of the Advances either pursuant to Section 2.04(a) or 2.05(e) of the Security and Intercreditor Agreement, promptly upon the Administrative Agent’s receipt of the amount of any such prepayment pursuant to Section 2.04(a) or 2.05(e)of the
Security and Intercreditor Agreement, such prepayment shall be applied: first to ratably repay the Springdale Advances until such Advances have been repaid in full; and thereafter, to ratably repay either the Term B Advances or the
Term C Advances at the Borrower’s direction as indicated in the notice delivered pursuant to Section 2.04(a) or 2.05(e) of the Security and Intercreditor Agreement (as applicable); provided that any prepayment shall be applied to the
principal installments of the Advances in inverse order of maturity for the relevant Facility. 
  

 37 

 (b) (i) If a prepayment is subject to the terms of Section 2.03 of the Security and Intercreditor
Agreement (a “Mandatory Prepayment”), such prepayment shall be effected through the provisions set forth in this Section 2.04(b). 
  
 (ii) Upon the Administrative Agent’s receipt of any amounts in respect of a Mandatory Prepayment (“Mandatory Prepayment
Amounts”) pursuant to priority first of Sections 2.05(a)(i), 2.05(a)(ii) or 2.05(a)(iii) of the Security and Intercreditor Agreement, such Mandatory Prepayment Amounts shall be ratably paid to each Term B Lender as a prepayment
of the Springdale Advances owed to such Term B Lender; provided that any such prepayment shall be applied to the principal installment of the Advances in inverse order of maturity. 
  
 (iii) Notwithstanding anything in this Agreement or any
other Financing Document to the contrary, the Lenders hereby agree as between themselves that any Mandatory Prepayment Amounts received by the Administrative Agent pursuant to priority second of Sections 2.05(a)(i), 2.05(a)(ii) or
2.05(a)(iii) of the Security and Intercreditor Agreement shall be applied first, to repay the Term B Advances held by any Accepting Term B Lender, second to repay the Term C Advances held by any Accepting Term C Lender, and
third, if any such amounts remain on deposit in the Prepayment Account after giving effect to priorities first and second of this clause (iii), to the Company or its successor or as the Company or such successor may otherwise
direct. 
  
 (iv) (A) Promptly upon receipt of any
amounts pursuant to priority second of Sections 2.05 (a)(i), 2.05 (a)(ii) or 2.05 (a)(iii) of the Security and Intercreditor Agreement (any such amount being an “Advances Prepayment Amount”), the Administrative Agent
shall deposit such Advances Prepayment Amount into a cash collateral account (the “Prepayment Account”) pending application of such Advance Prepayment amount on the Prepayment Dates as set forth below. 
  
 (B) So long as any Term B Advances shall remain outstanding,
promptly after such receipt (the date of such receipt being the “Receipt Date”), the Administrative Agent shall given written notice (a “Term B Prepayment Notice”) to each Term B Lender of (1) the
aggregate amount of the Advances Prepayment Amount, (2) the portion of the Advances Prepayment Amount available to prepay the Term B Advances held by such Term B Lender, (3) the applicable Receipt Date for such Advances Prepayment Amount and (4) the
date on which such Advances Prepayment Amount shall be applied as a prepayment of the Term B Advances, which date shall be the 15th Business Day following the delivery of such Term B Prepayment Notice (each such date being the “Term B Prepayment Date”). 
  
 (C) On or prior to 10:00 a.m. (New York City time) of the third Business Day occurring prior to the
applicable Term B Prepayment Date, each Term B Lender shall notify the Administrative Agent as to whether it accepts all or any portion of the Advances Prepayment Amount to be applied to prepay the Term B Advances held by such Term B Lender as set
forth in such Term B Prepayment Notice. If any Term B Lender fails to give such notice by such time, 
  

 38 

 such Term B Lender (together with any Term B Lender delivering a notice declining any such prepayment, a
“Declining Term B Lender”) shall be deemed to decline such prepayment, unless an Event of Default shall have occurred and be continuing on the date on which such notice is due in which case, such Term B Lender shall be deemed
to accept such prepayment. Any Term B Lender giving written notice of its intention to accept any prepayment or which is deemed to accept any prepayment offer is hereinafter referred to as an “Accepting Term B Lender”).

  
 (D) On the relevant Term B Prepayment Date,
an amount equal to that portion of the Advances Prepayment Amount to be applied to prepay the Term B Advances of each Accepting Term B Lender on such Term B Prepayment Date shall be withdrawn from the Prepayment Account and paid to each such
Accepting Term B Lender as a prepayment of the Term B Advances of such Accepting Term B Lender. 
  
 (E) If any amount remains in the Prepayment Account following the application of priority first of Section 2.04(b)(iii)
(“Priority First”), the Administrative Agent shall give prompt written notice (a “Term C Prepayment Notice”) to each of Term C Lender of (1) the aggregate amount deposited in the Prepayment Account
following the application of Priority First (the “Term C Advances Prepayment Amount”), (2) the portion of the Term C Advances Prepayment Amount available to prepay the Term C Advances held by such Term C Lender, (3) the
applicable Receipt Date for such Term C Advances Prepayment Amount and (4) the date on which such Term C Advances Prepayment Amount shall be applied as a prepayment of the Term C Advances, which date shall be the 15th Business Day following the delivery of such Term C Prepayment Notice (each such date being the “Term C Prepayment
Date”). 
  
 (F) On or prior to 10:00
a.m. (New York City time) of the third Business Day occurring prior to the applicable Term C Prepayment Date, each Term C Lender shall notify the Administrative Agent as to whether it accepts all or any portion of the Term C Advances Prepayment
Amount to be applied to prepay the Term C Advances held by such Term C Lender as set forth in such Term C Prepayment Notice. If any Term C Lender fails to give such notice by such time, such Term C Lender (together with any Term C Lender delivering
a notice declining any such prepayment, a “Declining Term C Lender”) shall be deemed to decline such prepayment, unless an Event of Default shall have occurred and be continuing on the date on which such notice is due in
which case, such Term C Lender shall be deemed to accept such prepayment. Any Term C Lender giving written notice of its intention to accept any prepayment or which is deemed to accept any prepayment offer is hereinafter referred to as an
“Accepting Term C Lender”). 
  
 (G) On the relevant Term C Prepayment Date, an amount equal to that portion of the Term C Advances Prepayment Amount to be applied to prepay the Term C Advances of each Accepting Term C Lender shall be withdrawn from the Prepayment Account
and paid to each such Accepting Term C Lender as a prepayment of the Term C Advances of such Accepting Term C Lender. 
  

 39 

 Section 2.05 Payments Generally. (a) All payments to be made to any Lender by the Borrower under
this Agreement or any other Financing Document to which the Borrower is a party (unless specifically provided otherwise in such Financing Document) shall be paid in full, and without condition or deduction for any counterclaim, defense, recoupment
or setoff, in Dollars and in immediately available funds not later than 11:00 a.m. (New York City time) on the due date thereof at the place and in the manner designated in the relevant Financing Document. 
  
 (b) All payments under this Agreement and the other Financing Documents to
(i) any Agent (whether for its own account or for the account of any Lender) or the Depository Bank shall be made to such Agent or the Depository Bank, respectively, and (ii) any Lender shall be made to the Administrative Agent for such Lender.

  
 Section 2.06 Fees. The Borrower shall pay to each Agent
for its own account such fees as may from time to time be agreed between the Borrower and such Agent. 
  
 Section 2.07 Pro Rata Treatment. Subject to Section 6.04, if any Lender shall obtain any payment (whether voluntary, involuntary, through the
exercise of any right of set-off, or otherwise), other than pursuant to Section 2.09, 2.10 or 2.11 of the applicable Credit Agreement, as a result of an assignment pursuant to Section 8.07 of the applicable Credit Agreement or any voluntary
prepayment made prior to the occurrence of any Default (a) on account of Obligations due and payable to such Lender under the applicable Credit Agreement and under the applicable Notes at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all Lenders under the Credit Agreements and under the Notes at such time) of payments on
account of the Obligations due and payable to all Lenders hereunder and under the Notes at such time obtained by all the Lenders at such time or (b) on account of Obligations owing (but not due and payable) to such Lender under the applicable Credit
Agreement and under the applicable Notes at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing to such Lender at such time to (ii) the aggregate amount of the Obligations owing (but not
due and payable) to all Lenders under the Credit Agreements and under the Notes at such time) of payments on account of the Obligations owing (but not due and payable) to all Lenders under the Credit Agreements and under the Notes at such time
obtained by all of the Lenders at such time, such Lender shall forthwith purchase from the other Lenders such interests or participating interests in the Obligations due and payable or owing to them, as the case may be, as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each of them; provided that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each other Lender shall be
rescinded and such other Lender shall repay to the purchasing Lender the purchase price to the extent of such Lender’s ratable share (according to the proportion of (i) the purchase price paid to such Lender to (ii) the aggregate purchase price
paid to all Lenders) of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such other Lender’s required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any 
  

 40 

 interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The
Borrower agrees that any Lender so purchasing an interest or participating interest from another Lender pursuant to this Section 2.05 may, to the fullest extent permitted by Applicable Law, exercise all its rights of payment (including the right of
set-off) with respect to such interest or participating interest, as the case may be, as fully as if such Lender were the direct creditor of the Borrower in the amount of such interest or participating interest, as the case may be. 
  
 ARTICLE III 
 CONDITIONS OF LENDING 
  
 Section 3.01 Conditions Precedent to Closing Date. No Lender shall be required or obligated to make or continue any Advance until the first Business Day on which the following conditions precedent have been
satisfied (or waived, as evidenced by an “effective date” notice to the Borrower from the Lenders), as determined by each Lender (provided that if the Closing Date does not occur on or before the Termination Date, the
Commitments of the Lenders shall terminate on such date): 
  
 (a)
The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) (unless otherwise specified), each properly executed by a Responsible Officer of the signing Loan Party (if
executed by such Loan Party), each dated the date of the Borrowings (the “Closing Date”) (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance
satisfactory to the Lenders (unless otherwise specified) and in sufficient copies for each Lender (unless otherwise specified): 
  
 (i) executed counterparts of this Agreement and the Credit Agreements, sufficient in number for distribution to the Administrative Agent,
the Collateral Agent, each Lender and the Borrower; 
  
 (ii) to the extent requested, duly executed Notes of the Borrower for the account of each Lender that has so requested, complying with the provisions of Section 2.13 of each Credit Agreement; 
  
 (iii) executed counterparts of an amendment to the Security
and Intercreditor Agreement such that, immediately after giving effect to the repayment in full of the Existing Lender Debt, the Security and Intercreditor Agreement shall be amended to the form attached hereto as Exhibit B (the “SIA
Amendment”), sufficient in number for distribution to each Lender, each Agent and the Borrower, together with: 
  
 (A) proper financing statements, duly completed for filing under the Uniform Commercial Code of all jurisdictions that the Administrative
Agent may deem necessary or reasonably desirable in order to perfect and protect the liens and security interests created under the Collateral Documents, covering the Collateral described in the Collateral Documents (after giving effect to the SIA
Amendment); 
  

 41 

 (B) results of lien searches, dated on or no earlier than 45 days before the Closing
Date, for existing financing statements filed in the jurisdictions referred to in Section 3.01(a)(iii)(A) since the date of the Security and Intercreditor Agreement that name any Loan Party as debtor, together with copies of all such financing
statements; and 
  
 (C) evidence that all other
action that the Administrative Agent may deem necessary or desirable in order to perfect and protect the Liens and security interests created under the Security and Intercreditor Agreement and the Account Control Agreements (both before and after
giving effect to the Transactions), other than the Other Perfection Requirements, has been taken; 
  
 (iv) deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust, in substantially the form of Exhibit C,
Exhibit D, Exhibit E, Exhibit F, Exhibit G and Exhibit H, as appropriate, and covering all Material Property (other than the Springdale Assets) owned by any Loan Party as of the Closing Date (together with the Assignments of Leases and Rents
referred to therein and each other deed of trust, trust deed, mortgage, leasehold mortgage and leasehold deed of trust delivered pursuant to Section 5.01(p), the “Term Mortgages”), duly executed by the appropriate Loan Party,
together with: 
  
 (A) confirmation from the
title insurance company recording the Term Mortgages that duly executed counterparts of the Term Mortgages sufficient for recording in all filing or recording offices that the Administrative Agent may deem necessary or desirable in order to create
valid and subsisting Liens on the property described therein in favor of the Collateral Agent for the benefit of the Secured Parties have been recorded, and evidence reasonably satisfactory to the Administrative Agent that all filing and recording
taxes and fees have been paid; 
  
 (B) fully paid
American Land Title Association Lender’s Extended Coverage title insurance policies in form and substance, with endorsements and in amounts acceptable to the Administrative Agent, issued by Chicago Title Insurance Company or such other title
insurers acceptable to the Administrative Agent, insuring the Term Mortgages for the properties described therein to be valid and subsisting Liens on the properties described therein, free and clear of all defects (including mechanics’ Liens
and materialmen’s Liens) and encumbrances, excepting only Permitted Liens (other than mechanic’s liens and materialmen’s liens to be insured against under said policies), and providing for such other affirmative insurance (including
endorsements for future advances under the Financing Documents and for mechanics’ and materialmen’s Liens) as the Administrative Agent may deem necessary or desirable; 
  
 (C) at the Administrative Agent’s option, either (i) ALTA Surveys, for which all necessary fees (where
applicable) have been paid, dated no more than 60 days before the Closing Date, of the properties described in the Term Mortgages, showing only such exceptions as are acceptable to the Administrative Agent, and each certified to the Collateral Agent
and the issuer of the Mortgage 
  

 42 

 Policies in a manner satisfactory to the Administrative Agent by a land surveyor duly registered and
licensed in the State in which the property described in such survey is located and acceptable to the Administrative Agent; or (ii) affidavits of the Borrower and of the relevant Loan Parties, dated as of the date of the Borrowings, certifying to
the Administrative Agent, the Collateral Agent, the Term B Lenders, the Term C Lenders and the title insurance company recording the Term Mortgages that there have been no changes, replacements or additions to the improvements on the properties
described in the Term Mortgages which encroach upon the property or rights of others, which violate any setback or other zoning requirements or which violate any agreements of the Borrower or such Loan Parties, and otherwise in form and substance
satisfactory to the Administrative Agent; 
  
 (D)
each in form and substance satisfactory to the Administrative Agent, (i) such consents and estoppel letters from lessors of leased property, including the Gleason Lessor and licensors of rights with respect to the properties described in the Term
Mortgages, (ii) such consents and estoppel letters from benefited parties under easement agreements as the Administrative Agent shall have requested and (iii) agreements subordinating any ground lessor’s fee interest to the applicable Term
Mortgage pursuant to the terms of the applicable lease agreement; 
  
 (E) confirmation from the title insurance company recording the Term Mortgages with respect to the validity and (subject to the exceptions and encumbrances permitted therein) the priority of the Term Mortgages; and

  
 (F) evidence that all action (including
payment by the Borrower to the title insurance company recording the Term Mortgages of the amount previously notified by such title insurance company to the Borrower as necessary for it to record the Term Mortgages) that the Administrative Agent may
deem necessary or desirable in order to perfect and protect the liens and security interests created under the Collateral Documents (other than the Other Perfection Requirements) securing all Obligations of the Borrower and the Loan Parties under
the Financing Documents have been taken; 
  
 (v)
deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust, in substantially the form of Exhibit I, Exhibit J, Exhibit K and Exhibit L, and covering the Springdale Assets (together with the Assignments of Leases and
Rents referred to therein, the “Springdale Mortgages”), duly executed by the appropriate Loan Party, together with: 
  
 (A) confirmation from the title insurance company recording the Springdale Mortgages that duly executed counterparts of the Springdale
Mortgages sufficient for recording in all filing or recording offices that the Administrative Agent may deem necessary or desirable in order to create valid and subsisting Liens on the property described therein in favor of the Collateral Agent for
the benefit of the Secured Parties and the Collateral Agent have been recorded, and evidence reasonably satisfactory to the Administrative Agent that all filing and recording taxes and fees have been paid; 
  

 43 

 (B) fully paid American Land Title Association Lender’s Extended Coverage title
insurance policies in form and substance, with endorsements and in amounts acceptable to the Administrative Agent, issued by Chicago Title Insurance Company or such other title insurers acceptable to the Administrative Agent, insuring the Springdale
Mortgages for the properties described therein to be valid and subsisting Liens on the properties described therein, free and clear of all defects (including mechanics’ Liens and materialmen’s Liens) and encumbrances, excepting only
Permitted Liens (other than mechanic’s liens and materialmen’s liens to be insured against under said policies), and providing for such other affirmative insurance (including endorsements for future advances under the Financing Documents
and for mechanics’ and materialmen’s Liens) as the Administrative Agent may deem necessary or desirable; 
  
 (C) at the Administrative Agent’s option, either (i) ALTA Surveys, for which all necessary fees (where applicable) have been paid,
dated no more than 60 days before the Closing Date, of the properties described in the Springdale Mortgages, showing only such exceptions as are acceptable to the Administrative Agent, and each certified to the Collateral Agent and the issuer of the
Mortgage Policies in a manner satisfactory to the Administrative Agent by a land surveyor duly registered and licensed in the State in which the property described in such survey is located and acceptable to the Administrative Agent; or (ii)
affidavits of the Borrower and of the relevant Loan Parties, dated as of the date of the Springdale Borrowing, certifying to the Administrative Agent, the Collateral Agent, the Lenders and the title insurance company recording the Springdale
Mortgages that there have been no changes, replacements or additions to the improvements on the properties described in the Springdale Mortgages which encroach upon the property or rights of others, which violate any setback or other zoning
requirements or which violate any agreements of the Borrower or such Loan Parties, and otherwise in form and substance satisfactory to the Administrative Agent; 
  
 (D) each in form and substance satisfactory to the Administrative Agent, (i) such consents and estoppel
letters from lessors of leased property, including licensors of rights with respect to the properties described in the Springdale Mortgages, (ii) such consents and estoppel letters from benefited parties under easement agreements as the
Administrative Agent shall have requested and (iii) agreements subordinating any ground lessor’s fee interest to the applicable Springdale Mortgage pursuant to the terms of the applicable lease agreement; 
  
 (E) confirmation from the title insurance company recording
the Springdale Mortgages with respect to the validity and (subject to the exceptions and encumbrances permitted therein) the priority of the Springdale Mortgages; and 
  

 44 

 (F) evidence that all action (including payment by the Borrower to the title insurance
company recording the Springdale Mortgages of the amount previously notified by such title insurance company to the Borrower as necessary for it to record the Springdale Mortgages) that the Administrative Agent may deem necessary or desirable in
order to perfect and protect the liens and security interests created under the Collateral Documents (other than the Other Perfection Requirements) securing all Obligations of the Borrower and the Loan Parties under the Financing Documents have been
taken; 
  
 (vi) certified copies of resolutions
of the Board of Directors of each Loan Party (A) approving the Transactions to which each such Loan Party is or is to be a party (the “AESC Transactions”) and (B) the execution, delivery and performance of each Transaction
Document to which such Loan Party is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and other third party approvals and consents, if any, with respect to the AESC Transactions and each
Transaction Document to which such Loan Party is or is to be a party; 
  
 (vii) copies of a certificate of the Secretary of State of the jurisdiction of formation of each Loan Party, certifying (A) as to a true and correct copy of the certificate of incorporation or formation of such Loan
Party and each amendment thereto on file in such Secretary’s office and (B) that (1) such amendments are the only amendments to such certificate on file in such Secretary’s office, (2) such Loan Party has paid all franchise taxes to the
date of such certificate and (3) such Loan Party is duly formed and in good standing or presently subsisting under the laws of the State of its jurisdiction of formation; 
  
 (viii) copies of a certificate of the Secretary of State of each jurisdiction (other than the jurisdiction
of its formation) set forth on Schedule 4.01(b) for each Loan Party stating that such Loan Party is duly qualified to do business and in good standing as a foreign corporation in such State and has filed all annual reports required to be filed to
the date of such certificate, as applicable; 
  
 (ix) certificates signed on behalf of each Loan Party by its Secretary or any Assistant Secretary (the statements made in which certificate shall be true on and as of the Closing Date), certifying (A) as to a true and correct copy of the
Constituent Documents of such Loan Party as of the Closing Date and each amendment to its Constituent Documents, if any, from the date on which the resolutions referred to in Section 3.01(a)(vi) were adopted to the Closing Date, (B) the due
incorporation or formation and good standing or valid existence of such Loan Party under the laws of the jurisdiction of its formation, and the absence of any proceeding for the dissolution or liquidation of such Loan Party; and (C) the names and
true signatures of the officers of such Loan Party authorized to sign each Financing Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder; 
  
 (x) copies of each of the interim Consolidated financial
statements (consolidated balance sheets and income statements) of the Parent and its Subsidiaries and the Borrower and its Subsidiaries for each of the first three fiscal quarters of the 
  

 45 

 Parent and the Borrower for Fiscal Year 2003, accompanied by an Officer’s Certificate of the
Borrower certifying that, (A) the copies of such financial statements fairly present the financial conditions of the Borrower and its Subsidiaries as of the date of such financial statements and the results of operations of the Borrower and its
Subsidiaries for the period indicated in such financial statements, all in accordance with GAAP and subject to normal year-end audit adjustments and the absence of footnotes and (B) such financial statements have been duly filed with the SEC;

  
 (xi) forecasts prepared by management of the
Borrower of balance sheets, income statements and cash flow statements of the Borrower reasonably acceptable to the Administrative Agent on a consolidated and unconsolidated basis for each fiscal quarter commencing with the fiscal quarter ending
March 31, 2004 through the fiscal quarter ending March 31, 2011; 
  
 (xii) legal opinions of appropriate counsel for the Loan Parties, as to such matters as any Lender may reasonably request; 
  
 (xiii) legal opinions of appropriate counsel to the Administrative Agent (including, without limitation, Shearman & Sterling LLP) and
the Collateral Agent, as to such matters as the Administrative Agent may reasonably request; 
  
 (xiv) copies of each Material Governmental Approval, accompanied by an Officer’s Certificate of the Borrower, attaching copies of all
Material Governmental Approvals and certifying that (A) the copies of each of the Material Governmental Approvals delivered pursuant to this Section 3.01(a)(xiv) are true, correct and complete copies of such Material Governmental Approval; (B) each
Governmental Approval is in full force and effect, and is not subject to any pending appeal, intervention or similar proceeding or any unsatisfied condition that may result in modification or revocation thereof; (C) any and all conditions set forth
in all Governmental Approvals that are then required to be satisfied have been satisfied; and (D) to the best knowledge of the Responsible Officer providing such Officer’s Certificate, no event has occurred that could reasonably be expected to
result in the modification, cancellation or revocation of any Governmental Approval; 
  
 (xv) copies of each Material Contract in existence as of the Closing Date, accompanied by an Officer’s Certificate of the Borrower,
attaching copies of all such Material Contracts, and certifying that (A) the copies of the Material Contracts delivered pursuant to this Section 3.01(a)(xv) are true, correct and complete copies of such Material Contract; (B) no term or condition of
any Material Contract has been amended from the form thereof delivered pursuant to this Section 3.01(a)(xvi) (other than in connection with any amendments or supplements so delivered); and (C) other than as set forth in the Disclosed Litigation, (1)
each Material Contract delivered pursuant to this Section 3.01(a)(xv) is in full force and effect, enforceable against the Borrower or any of its Subsidiaries which is a party thereto in accordance with its terms and, to the Borrower’s best
knowledge, enforceable against each other party thereto in accordance with its terms; (2) neither the Borrower nor any of its Subsidiaries nor, to the best knowledge of the Borrower, any other party to any Material Contract delivered pursuant to
this Section 3.01(a)(xv) 
  

 46 

 is in default thereunder, except as otherwise set forth in Schedule 4.01(r); and (3) the Borrower and its
Subsidiaries and, to the Borrower’s best knowledge, each other Person party to any Material Contract delivered pursuant to this Section 3.01(a)(xv) has complied with all conditions precedent to its obligations under such Material Contract
required to be performed or complied with by any such Person as of the Closing Date; 
  
 (xvi) a certificate from the Chief Financial Officer of the Borrower attesting to the Solvency of the Borrower and its Subsidiaries, when
considered as a whole, immediately before and immediately after giving effect to the Transactions consummated on the Closing Date, in each case giving pro forma effect to such Transactions; 
  
 (xvii) copies of each of the New Parent Facility Documents,
duly executed by the parties thereto, together with all agreements, instruments and other documents delivered in connection therewith as the Administrative Agent may reasonably request (the New Parent Facility Documents and all such other
agreements, instruments or documents, being the “Other Refinancing Documents”), accompanied by an Officer’s Certificate of the Parent certifying that (A) the copies of the Other Refinancing Documents delivered pursuant
to this Section 3.01(a)(xvii) are true, correct and complete copies of such Other Refinancing Documents; (B) no term or condition of any Other Refinancing Document has been amended as of such date from the form thereof delivered pursuant to this
Section 3.01(a)(xvii) (other than in connection with any amendments or supplements so delivered); and (C) all of the conditions precedent necessary for the incurrence of Debt and the issuance of letters of credit under the New Parent Facility have
been satisfied; 
  
 (xviii) certificates signed
by a Responsible Officer of the Borrower to the effect that (A) the representations and warranties contained in Article IV are true and correct on and as of the Closing Date as though made on and as of such date both immediately before and
immediately after giving effect to the Borrowing; and (B) no Default has occurred and is continuing or would result from the Borrowing or the consummation of that portion of the Transactions being effected on the Closing Date (the
“Closing Date Transactions”); and 
  
 (xix) such other assurances, certificates, documents, consents or opinions as the Administrative Agent or any Lender reasonably may require. 
  
 (b) There shall exist (i) no action, suit, investigation, litigation or proceeding affecting the Borrower or any of its
Subsidiaries or any such Person’s properties pending or threatened, before any court, before or by any Governmental Authority or before any arbitrator and (ii) no default by any such Person under any applicable order, writ, injunction or decree
of any court, Governmental Authority or arbitrator, in the case of either of clauses (i) or (ii), (A) could reasonably be expected to have a Material Adverse Effect other than the matters described on Schedule 4.01(f) (the “Disclosed
Litigation”); (B) purports to affect the Transactions or any portion thereof, the ability of the Borrower or any Loan Party to perform their respective obligations under the Transaction Documents or the ability of the Parent or any of
its Subsidiaries to perform their respective obligations under the Transaction Documents; or (C) purports to affect the legality, validity or enforceability of any Transaction Document, or the 
  

 47 

 consummation of the Transactions, and there shall have been no material adverse change, in the status of, or financial
effect on, any Loan Party or any of its Subsidiaries of the Disclosed Litigation from that described on Schedule 4.01(f). 
  
 (c) All Governmental Approvals shall have been obtained (without the imposition of any conditions that are not acceptable to the Lenders), are in full
force and effect and are final and non-appealable (except for potential court review of the SEC’s Order dated February 3, 2004 (Holding Co. Act Release No. 27796) as provided in Section 24 of PUHCA) and do not contain any restrictions,
conditions or requirements which are then required to be satisfied and have not been satisfied; all then-applicable waiting periods in connection with the Transactions shall have expired without any action being taken by any competent authority, and
no law or regulation shall be applicable in the judgment of the Lenders, in each case that restrains, prevents or imposes materially adverse conditions upon the Transactions or the rights of the Borrower or its Subsidiaries to create or maintain the
perfection of any Lien on, any properties now owned or hereafter acquired by any of them. 
  
 (d) There shall not exist any default or event of default in respect of any material indebtedness or agreement of the Borrower or any of its Subsidiaries, including under the Existing Indentures or the Senior Note
Indenture. 
  
 (e) All conditions to the incurrence of Debt and
the issuance of the letters of credit under the New Parent Facility shall have been satisfied and simultaneous with the making of the Borrowings (i) letters of credit under the New Parent Facility shall have been issued in replacement for the
Existing Letters of Credit and (ii) all amounts outstanding under the Existing Parent Credit Agreement shall have been repaid in full. 
  
 (f) All Existing Unsecured Lender Debt shall have been repaid in full in cash from sources other than the proceeds of the Advances. 
  
 (g) Except for Disclosed Matters, since December 31, 2002, there shall not
have occurred any Material Adverse Change. 
  
 (h) All of the
requirements under Section 2.13 of the Security and Intercreditor Agreement necessary to constitute the Obligations of the Loan Parties under the Group Assets Facility and the Term C Facility as Secured Replacement Senior Debt Obligations shall have
been satisfied in full or waived in accordance with the terms of the Security and Intercreditor Agreement. 
  
 (i) All conditions to the effectiveness of the SIA Amendment (other than the repayment in full of the Existing Lender Debt) shall have been satisfied.

  
 (j) All required stamp duties, registration fees, filing costs
and other charges in connection with the execution, delivery, filing, recording, perfection, priority or admissibility in evidence of the Financing Documents, and the security interests purported to be granted by the Financing Documents, required to
be paid on or prior to the Closing Date shall have been paid in full or an appropriate exemption therefrom shall have been obtained. 
  

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 (k) All Taxes (i) due and payable on or prior to the Closing Date in connection with the execution,
delivery, filing, recording or admissibility in evidence of the Financing Documents or to ensure the legality, validity, enforceability, perfection or admissibility in evidence of the Financing Documents and (ii) due and payable on or prior to the
Closing Date by the Borrower or any of its Subsidiaries in connection with the consummation of the transactions contemplated by, and the performance of, the Financing Documents shall, in the case of clauses (i) and (ii) of this Section 3.01(k), have
been duly paid in full. 
  
 (l) The representations and warranties
of the Borrower and each other Loan Party contained in Article IV and Article III of the Security and Intercreditor Agreement shall be true and correct, on and as of the Closing Date (immediately before and immediately after the consummation of the
Closing Date Transactions, including the making of the Borrowing), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date. 

 
 (m) No Default shall exist, or would result from the consummation of the
Closing Date Transactions, including the making of the Borrowing or from the application of the proceeds from the Borrowing. 
  
 (n) The Facilities shall have received a rating by S&P and by Moody’s. 
  
 (o) The Transfer shall have occurred and the Original Springdale Agent shall have resigned as Agent under the Springdale
Credit Agreement in accordance with the terms of the Springdale Agency Letter Agreement. 
  
 (p) The Borrower shall have paid all accrued fees of the Agents, the Lenders and the Arranger Parties and all accrued expenses of the Administrative Agent, the Collateral Agent and the Intercreditor Agent (including
all fees and expenses of counsel or PA Consulting payable pursuant to Section 9.04(a) to the extent invoiced at least 3 Business Days prior to the Closing Date). 
  
 Section 3.02 Determinations Under Section 3.01. For purposes of determining compliance with the conditions specified
in Section 3.01, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to it unless an officer
of the Administrative Agent responsible for the transactions contemplated by the applicable Financing Documents shall have received notice from such Lender prior to the making of its Advance or the making of Advances by the Lenders specifying its
objection thereto. 
  

 49 

 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.01 Representations and Warranties of the Borrower. The Borrower represents and warrants to each Lender and the Administrative Agent as of the date hereof, as of the Closing Date and, with respect to the Term B Credit
Agreement, any Borrowing made pursuant to Section 2.14 of the Term B Credit Agreement, that: 
  
 (a) Each of the Borrower and its Subsidiaries (i) is a limited liability company or corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) is duly
qualified to do business and in good standing in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed and (iii) has all requisite corporate or limited liability
company (as applicable) power and authority (including all governmental licenses, permits and other approvals) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted, except, in the
case of clauses (ii) and (iii) only, where the failure to so qualify or be so licensed, or to have such power and authority, could not reasonably be expected to have a Material Adverse Effect or as disclosed on Schedule 4.01(a). All of the
outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable and, except for the ML Interests, are owned by the Parent free and clear of all Liens other than pursuant to the Collateral Documents and Liens
for taxes, assessments and governmental charges or levies. 
  
 (b)
Set forth on Schedule 4.01(b) is a complete and accurate list of all Subsidiaries of the Borrower, showing as of the date hereof (as to each such Subsidiary) the jurisdiction of its formation, the number of shares of each class of its Equity
Interests authorized, and the number outstanding, on the date hereof and the percentage of each such class of its Equity Interests, the identity of each owner thereof and the number of shares covered by all outstanding options, warrants, rights of
conversion or purchase and similar rights at the date hereof. All of the outstanding Equity Interests in (i) the Borrower’s Subsidiaries (other than AGC) have been validly issued, are fully paid and non-assessable and are owned by the Borrower
or one or more of its Subsidiaries free and clear of all Liens, except those created under the Collateral Documents and (ii) AGC have been validly issued, are fully paid and non-assessable and are owned by the Borrower (as to 77.03%), free and clear
of all Liens, or by MPC (as to 22.97%). 
  
 (c) Other than as
disclosed on Schedule 4.01(a), the execution, delivery and performance by each Loan Party of each Transaction Document to which it is or is to be a party, and the consummation of the AESC Transactions, are within such Loan Party’s corporate
powers, have been duly authorized by all necessary corporate action, and do not and will not (i) contravene such Loan Party’s Constituent Documents, (ii) violate any law, rule, regulation (including Regulation X of the Board of Governors of the
Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default or require any payment to be made under, any contract, loan agreement, indenture
(including, without limitation, the Bond Instruments or the Senior Note Indenture), mortgage, deed of trust, lease or other instrument binding on or affecting any Loan Party or any of its properties or (iv) except for the Liens created under the
Collateral Documents, result in or 
  

 50 

 require the creation or imposition of any Lien upon or with respect to any property or assets of any Loan Party. No
consent or other action by any Person other than the Required Creditors (as such term is defined in the Security and Intercreditor Agreement) and the acknowledgement of the Collateral Agent and the Intercreditor Agent is necessary for the
effectiveness of the SIA Amendment or the amendment of the Security and Intercreditor Agreement pursuant thereto. No Loan Party is in violation of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in
breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which could be reasonably expected to have a Material Adverse Effect. 
  
 (d) No authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority or any other third party is required for (i) the due execution, delivery, recordation, filing or performance by any Loan Party of any Financing Document to which it is or is to be a party, or for the
consummation of the AESC Transactions, (ii) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (iii) the perfection or maintenance of the Liens created under the Collateral Documents (including the priority
nature thereof as stated in Section 2.02 of the Security and Intercreditor Agreement) other than (A) filing of the financing statements duly completed for filing under the UCC covering the Collateral described in the Collateral Documents (and upon
the filing of such financing statements in the relevant jurisdictions, all authorizations, approvals, actions by, and notices to or filings with, any Governmental Authority required for the perfection of the Liens created by the Collateral Documents
(including the priority nature thereof as stated in Section 2.02 of the Security and Intercreditor Agreement), other than the Other Perfection Requirements, shall have been duly obtained, taken and filed) and (B) the Other Perfection Requirements or
(iv) the exercise by any Secured Party of its rights under the Financing Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except (1) for the authorizations, approvals, actions, notices and filings listed
on Schedule 4.01(d) (the “Governmental Approvals”), all of which have been duly obtained, taken, given or made, are in full force and effect, are held in the name of a Loan Party, are not subject to appeal (except for
potential court review of the SEC’s Order dated February 3, 2004 (Holding Co. Act Release No. 27796) as provided in Section 24 of PUHCA), intervention, rehearing, reconsideration, or similar proceeding and are free from any conditions or
requirements that have not been satisfied, and are required to be satisfied, on or prior to the dates as of which this representation and warranty is made or reaffirmed, (2) for the Other Perfection Requirements, (3) for all other authorizations,
approvals, actions, notices and filings required under Applicable Law for any exercise of possessory remedies with respect to the Collateral (including with respect to foreclosure proceedings) and (4) as disclosed on Schedule 4.01(a). All applicable
waiting periods in connection with the Transactions have expired without any action having been taken by any competent authority restraining, preventing or imposing materially adverse conditions upon the Transactions or the rights of the Loan
Parties to create any Lien on any properties now owned or hereafter acquired by any of them. 
  
 (e) This Agreement has been, and each other Financing Document when delivered hereunder will have been, duly executed and delivered by each Loan Party that is a party thereto. This Agreement is, and each other
Financing Document when delivered hereunder will be, the legal, valid and binding obligation of each Loan Party that is a party thereto, enforceable against such Loan Party in accordance with its terms, except to the extent limited by any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  

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 (f) There is no action, suit, investigation, litigation or proceeding affecting the Borrower or any of
its Subsidiaries, including any Environmental Action, pending or threatened before any Governmental Authority that (i) could reasonably be expected to have a Material Adverse Effect (other than the Disclosed Litigation) or (ii) affects or purports
to affect the legality, validity or enforceability of any Financing Document or the consummation of the AESC Transactions, and there has been no change in respect of the Disclosed Litigation described on Schedule 4.01(f) which could reasonably be
expected to have a Material Adverse Effect. 
  
 (g) (i) Each of the financial statements of the Borrower delivered by it to the Administrative Agent pursuant to Sections 3.01(a)(x), and, to the extent applicable at the time this representation and warranty is made, 5.04(b) and 5.04(c) is
true, complete and correct in all material respects as of the date of such statement, has been prepared in accordance with GAAP (subject, in the case of interim financial statements, to normal year-end audit adjustments and the absence of
footnotes), and fairly presents the Borrower’s financial condition and results of operations as of the date thereof. Except as (i) previously disclosed publicly by the Parent or any of its Subsidiaries or (ii) set forth in Schedule 4.01(g),
there are no material liabilities or obligations of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due, but not including any liabilities or obligations that would not be required to be disclosed in a
financial statement, including the footnotes thereto, pursuant to GAAP, for the period to which such financial statements relate) that could reasonably be expected to have a Material Adverse Effect. Except as (A) previously disclosed publicly by the
Parent or any of its Subsidiaries or (B) set forth in Schedule 4.01(g), since the date of its most recent financial statements delivered under this Agreement, no event, condition, occurrence or circumstance has existed or has occurred and is
continuing which could reasonably be expected to have a Material Adverse Effect. Except as (1) previously disclosed publicly by the Parent or any of its Subsidiaries or (2) set forth in Schedule 4.01(g), the Borrower does not know of any reasonable
basis for the assertion against it or any of its property or assets of any liability or obligation of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) that is not fully reflected in such financial
statements which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 (ii) The Consolidated forecasted balance sheets, statements of income, statements of cash flows of the Borrower delivered pursuant to
Section 3.01(a)(xi) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, a
reasonable good faith estimate of future financial performance by the Borrower and its Subsidiaries. 
  
 (iii) Except for Disclosed Matters, since December 31, 2002, no Material Adverse Change has occurred. 
  

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 (h) Neither the Information Memorandum nor any other information, exhibit or report furnished by the
Parent or any Loan Party to any Agent, Arranger Party or any other Lender in connection with the negotiation and syndication of the Financing Documents, the consummation of the AESC Transactions or pursuant to the terms of the Financing Documents,
when taken together with the information contained in the Borrower’s most recent annual report on Form 10-K (the “Form 10-K”) and in the Borrower’s reports filed with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 subsequent to the filing of the Form 10-K, contained, contains or will contain, taken as a whole (as of the date on which such information is or was provided to any Agent, Arranger Party or Lender, as modified or
otherwise supplemented by information so provided) any untrue statement of a material fact or omitted to state a material fact necessary to make the statements made therein, in light of the circumstances under which they were, are or will be made,
not misleading; provided that to the extent any such information, exhibit or report was based upon or constitutes a forecast or projection, the Borrower represents only that such information was prepared in good faith on the basis of the
assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts or projections, and represented, at the time of delivery thereof, a reasonable good faith estimate of future
financial performance by the Borrower and its Subsidiaries (it being understood that such forecasts or projections are subject to significant uncertainties and contingencies, many of which are beyond the Borrower’s control, and that the
Borrower makes no representation as to the attainability of such forecasts or projections or as to whether such forecasts or projections will be achieved or materialize). 
  
 (i) The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock,
and no proceeds of any Advance will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock. 
  
 (j) Neither the Borrower nor any of its Subsidiaries is an “investment company”, or an “affiliated
person” of, or “promoter” or “principal underwriter” for, an “investment company”, as such terms are defined in the 1940 Act. Neither the making of any Advances nor the application of the
proceeds or repayment thereof by the Borrower, nor the consummation of the other transactions contemplated by the Financing Documents, will violate any provision of such Act or any rule, regulation or order of the Securities and Exchange Commission
thereunder. 
  
 (k) All filings and other actions necessary or
desirable to perfect and protect the security interest in the Collateral created under the Collateral Documents have been duly made or taken and are in full force and effect, and the Collateral Documents create in favor of the Collateral Agent for
the benefit of the Secured Parties a valid and, together with such filings and other actions, perfected security interest (in the order of priority contemplated by Section 2.02 of the Security and Intercreditor Agreement) in the Collateral, securing
the payment of the Secured Obligations, and all filings and other actions (other than the Other Perfection Requirements) necessary or desirable to perfect and protect such security interest have been duly taken. The Loan Parties are the legal and
beneficial owners of the Collateral free and clear of any Lien, except for the liens and security interests created or permitted under the Financing Documents. 
  

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 (l) The Borrower is, individually and together with its respective Subsidiaries, Solvent. 
  
 (m) No ERISA Event has occurred with respect to any Plan that has resulted in
a material liability which could be reasonably likely to have a Material Adverse Effect. Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, filed with the Internal Revenue Service, is complete and
accurate, and since the date of such Schedule B there has been no material adverse change which could reasonably be expected to have a Material Adverse Effect on such funding status. Except as would not reasonably be expected to have a Material
Adverse Effect, neither the Loan Parties nor any ERISA Affiliate (i) has incurred any Withdrawal Liability to any Multiemployer Plan, or (ii) has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization
or has been terminated, within the meaning of Title IV of ERISA. 
  
 (n) (i) Except as disclosed on Schedule 4.01(n) or in the Borrower’s filings with the SEC or as could not reasonably be expected to have a Material Adverse Effect, the operations and properties of the Borrower and each of its
Subsidiaries comply in all respects with all applicable Environmental Laws and Environmental Permits. Except as could not reasonably be expected to have a Material Adverse Effect, (A) all past non-compliance with such Environmental Laws and
Environmental Permits has been resolved without material ongoing obligations or costs and (B) no circumstances exist that could reasonably be expected to (1) form the basis of an Environmental Action against the Borrower or any of its Subsidiaries
or any of their properties or (2) cause any such property to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (i) Except as disclosed on Schedule 4.01(n) or in the Borrower’s filings with the SEC or as could not
reasonably be expected to have a Material Adverse Effect, (A) none of the properties currently or formerly owned or operated by the Borrower or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous
foreign, state or local list, (B) there are no and never have been any unlawful underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated,
stored or disposed on any property currently owned or operated by the Borrower or any of its Subsidiaries or on any property formerly owned or operated by the Borrower or any of its Subsidiaries, and (C) Hazardous Materials have not been released,
discharged or disposed of on any property currently or formerly owned or operated by the Borrower or any of its Subsidiaries. 
  
 (ii) Except as disclosed on Schedule 4.01(n) or in the Borrower’s filings with the SEC or as could not reasonably be expected to have
a Material Adverse Effect, (A) neither the Borrower nor any of its Subsidiaries is undertaking, and has not completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or
response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory authority or the
requirements of any Environmental Law and (B) all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or 
  

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 formerly owned or operated by the Borrower or any of its Subsidiaries have been used, sold or disposed of
in a manner not reasonably expected to result in material liability to the Borrower or any of its Subsidiaries. 
  
 (o) (i) Neither the Borrower nor any of its Subsidiaries is party to any tax sharing agreement other than the Tax Allocation Agreement. Insofar as then
required thereunder, all amounts due and payable by the Borrower or any of its Subsidiaries under the Tax Allocation Agreement have been paid, and all amounts due and payable to the Borrower or any of its Subsidiaries under any tax sharing agreement
have been received (including amounts by way of compensation for the use of tax benefits), except as could not reasonably be expected to have a Material Adverse Effect. 
  
 (i) The Borrower and each of its Subsidiaries and Affiliates has filed, has caused to be filed or has been
included in all tax returns (federal, state, local and foreign) required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties, except (A) to the extent that the aggregate amount of any unpaid
taxes due, together with applicable interest and penalties, does not exceed $25,000,000 or (B) to the extent such unpaid taxes are subject to Contest. 
  
 (p) Set forth on Schedule 4.01(p) is a complete and accurate list of all real property with a book value in excess of $5,000,000 owned by the Borrower or
any of its Subsidiaries, showing as of the Closing Date the street address, county or other relevant jurisdiction, state, record owner and the book value thereof. The Borrower or such Subsidiary has good, marketable and insurable fee simple title to
all real property on such Schedule, free and clear of all Liens, other than Liens created or permitted under the Financing Documents. 
  
 (q) Set forth on Schedule 4.01(q) is a complete and accurate list of all leases of real property under which the Borrower or any of its Subsidiaries is
the lessee and which provide for annual lease payments in excess of $1,000,000, showing as of the Closing Date the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof. To the
best knowledge of the Borrower, each such lease is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms, except to the extent limited by any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity and, except where the failure to do so could not reasonably be anticipated to have a Material Adverse Effect. 
  
 (r) Each Material Contract has been duly authorized, executed and delivered
by all parties thereto is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and, except as described in Schedule 4.01(r), there exists no default under any Material Contract by any
party thereto, except to the extent that any such default could not reasonably be expected to have a Material Adverse Effect. 
  
 (s) Set forth on Schedule 4.01(s) is a complete and accurate list as of the Closing Date, (except, solely with respect to the amount thereof, as otherwise
indicated thereon) of each Qualifying Obligation constituting Surviving Debt owed by the Borrower or any of its Subsidiaries, showing the amount, obligor or issuer, creditor and maturity thereof. 
  

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 (t) Set forth on Schedule 4.01(t) is a complete and accurate list as of the Closing Date of all Liens
(other than Permitted Liens, Liens created under the Collateral Documents and Liens specified in clause (iv) below) on the property or assets of the Borrower and its Subsidiaries, showing the lienholder thereof and the property of or assets of the
Borrower or any of its Subsidiaries subject thereto. The property of the Borrower and its Subsidiaries is subject to no Liens other than (i) Liens set forth on Schedule 4.01(t), (ii) Permitted Liens, (iii) Liens created under the Collateral
Documents, and (iv) Liens existing as of the Closing Date but not set forth on Schedule 4.01(t) which secure, individually, an amount of Obligations not to exceed $5,000,000 or which secure, in the aggregate, an amount of Obligations not to exceed
$25,000,000. 
  
 (u) As of the Closing Date, set forth on Schedule
4.01(u) is a complete and accurate list of all Investments held by the Borrower or any of its Subsidiaries other than (i) Cash Equivalents, (ii) extensions of credit in the ordinary course and (iii) Investments which have, in the aggregate, a fair
market value of less than $5,000,000. 
  
 (v) The Borrower is a
“registered holding company”, as such term is defined in PUHCA. Except as could not reasonably be expected to have a Material Adverse Effect, the Borrower and each of its Subsidiaries has all authorizations and approvals from the
Federal Energy Regulatory Commission or other Governmental Authority required to provide the services and goods (including electric capacity, energy and ancillary services) it sells, including all necessary rate schedules on file and effective with
the Federal Energy Regulatory Commission for the Borrower and its Subsidiaries to sell electricity at wholesale and authorizations necessary for the Borrower and its Subsidiaries to engage in existing affiliate transactions. 
  
 (w) Other than as could not reasonably be expected to have a Material Adverse
Effect, (i) there are no strikes, lockouts or other material labor disputes or grievances against the Borrower or any of its Subsidiaries, or, to the Borrower’s knowledge, threatened against or affecting the Borrower or any of its Subsidiaries,
and (ii) no significant unfair labor practice charges or grievances are pending against the Borrower or any of its Subsidiaries, or to the Borrower’s knowledge, threatened against any of them before any Governmental Authority. All payments due
from the Borrower or any of its Subsidiaries pursuant to the provisions of any collective bargaining agreement have been paid or accrued as a liability on the books of the Borrower or such Subsidiary, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect. 
  
 (x)
The Borrower and its Subsidiaries have all necessary property rights (including easements or other rights of ingress or egress) required for the design, development, construction, supply, start-up, commissioning, testing, operation or maintenance of
each electric generating power station owned, partially or wholly, or being developed by the Borrower or such Subsidiary, and all services, electric and other interconnections, transmission facilities, utilities, water supply and water discharge
facilities and materials for the Borrower and its Subsidiaries to develop, construct, operate and maintain each electric power generating plant of the Borrower or such Subsidiary are owned or leased by the Borrower or such Subsidiary, or are
required to be made available to the Borrower or such Subsidiary under the Assigned Agreements, except for those which are otherwise available to the Borrower or such Subsidiary at commercially reasonable rates or the absence of which could not
reasonably be expected to have a Material Adverse Effect. 
  

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 (y) Set forth on Schedule 4.01(y) is a true, complete and correct description of all property damage and
liability insurance maintained by or on behalf of the Borrower and its Subsidiaries as of the Closing Date. As of the Closing Date, such insurance is in full force and effect and all premiums that are due and owed have been duly paid, except where
the failure to pay could not reasonably be expected to have a Material Adverse Effect. None of the Borrower or any of its Subsidiaries has any reason to believe that it will not be able to renew its existing coverage as and when such coverage
expires or to obtain similar coverage from similar insurers at a substantially similar cost as available to companies of a similar size operating in the same or similar businesses. 
  
 (z) The Term B Advances and the Term C Advances made on the Closing Date constitute Secured Replacement Senior Debt
Obligations. 
  
 (aa) There are no material obligations to be
performed by Black & Veatch Construction, Inc. pursuant to that certain Engineering, Procurement and Construction Agreement between the Borrower and Black & Veatch Construction, Inc., dated as of November 21, 2000, in respect of the
Springdale Plant. 
  
 (bb) None of the Excluded Subsidiaries
(other than AGC and Buchanan Generation, LLC) individually holds any assets or property, including, without limitation, any deposit or securities accounts with a fair market value in excess of $10,000,000. 
  
 Section 4.02 Representations and Warranties of the Other Loan Parties.
Each Loan Party other than the Borrower represents and warrants to each Lender and the Administrative Agent that: 
  
 (a) It (i) is a limited liability company or corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its
formation, (ii) is duly qualified and in good standing in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed and (iii) has all requisite corporate or limited
liability company power and authority (including all governmental licenses, permits and other approvals) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted, except, in the case of
clauses (ii) and (iii) only, where the failure to so qualify or be so licensed, or to have such power and authority, could not reasonably be expected to have a Material Adverse Effect or as disclosed on Schedule 4.01(a). All of the outstanding
Equity Interests in such Loan Party have been validly issued, are fully paid and non-assessable and are owned by another Loan Party free and clear of all Liens other than Liens created under the Collateral Documents. 
  
 (b) Other than as disclosed on Schedule 4.01(a), its execution, delivery and
performance of each Transaction Document to which it is or is to be a party, and the consummation of the AESC Transactions to which it is or is to be a party, are within its corporate powers, have been duly authorized by all necessary corporate
action, and do not (i) contravene its Constituent Documents, (ii) violate any law, rule, regulation, order, writ, 
  

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 judgment, injunction, decree, determination or award applicable to it, (iii) conflict with or result in the breach of, or
constitute a default or require any payment to be made under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument to which it is a party or (iv) except for the Liens created under the Collateral Documents,
result in or require the creation or imposition of any Lien upon or with respect to any of its property or assets. It is not in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in
breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which could be reasonably expected to have a Material Adverse Effect. 
  
 (c) All Governmental Approvals required by it for (i) its due execution,
delivery, recordation, filing or performance of any Transaction Document to which it is or is to be a party, (ii) its grant of the Liens granted by it pursuant to the Collateral Documents, (iii) the perfection or maintenance of the Liens created by
it under the Collateral Documents (in the order of priority contemplated by Section 2.02 of the Security and Intercreditor Agreement), and (iv) the exercise by any Secured Party of its rights under the Financing Documents or the remedies in respect
of the Collateral pursuant to the Collateral Documents have been duly obtained, taken, given or made, are in full force and effect, are held in its name, are not subject to appeal, intervention, rehearing, reconsideration, or similar proceeding and
are free from any conditions or requirements that have not been satisfied, and are required to be satisfied, on or prior to the dates as of which this representation and warranty is made or reaffirmed, except for (1) the Governmental Approvals, all
of which have been duly obtained, taken, given or made, are in full force and effect, are held in the name of a Loan Party, are not subject to appeal (except for potential court review of the SEC’s Order dated February 3, 2004 (Holding Co. Act
Release No. 27796) as provided in Section 24 of PUHCA), intervention, rehearing, reconsideration, or similar proceeding and are free from any conditions or requirements that have not been satisfied, and are required to be satisfied, on or prior to
the dates as of which this representation and warranty is made or reaffirmed, (2) the Other Perfection Requirements, (3) all other authorizations, approvals, actions, notices and filings required under Applicable Law for any exercise of possessory
remedies with respect to the Collateral (including with respect to foreclosure proceedings) and (4) as otherwise disclosed on Schedule 4.01(a). 
  
 (d) This Agreement has been, and each other Transaction Document to which it is or is to be a party when delivered hereunder will have been, duly executed
and delivered by it. This Agreement is, and each other Transaction Document to which it is or is to be a party when delivered hereunder will be, its legal, valid and binding obligation, enforceable against it in accordance with its terms, except to
the extent limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  
 (e) There is no action, suit, investigation, litigation or proceeding
affecting it, including any Environmental Action, pending or threatened before any court, governmental agency or arbitrator that (i) could reasonably be expected to have a Material Adverse Effect (other than the Disclosed Litigation) or (ii) affects
or purports to affect the legality, validity or enforceability of any Financing Document, and there has been no adverse change in the status, or financial effect on it, in respect of the Disclosed Litigation described on Schedule 4.01(f).

  

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 ARTICLE V 
 COVENANTS 
  
 Section 5.01
Affirmative Covenants of the Borrower. The Borrower agrees that, so long as any Advance shall remain unpaid or any Commitment shall remain outstanding, the Borrower will: 
  
 (a) Compliance with Laws. Comply, and cause each of its Subsidiaries to comply in all material respects with all
Applicable Laws (including those regarding the paying of dividends or the making of distributions by the Borrower), except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  
 (b) Compliance with Environmental Laws. Except where the failure to do
so could not reasonably be expected to have a Material Adverse Effect, (i) comply, and cause each of its Subsidiaries and all lessees and other Persons operating or occupying its properties to comply, in all material respects, with all applicable
Environmental Laws and Environmental Permits, (ii) obtain and renew, and cause each of its Subsidiaries to obtain and renew, all Environmental Permits necessary for its operations and properties, and (iii) conduct, and cause each of its Subsidiaries
to conduct, any required investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous Materials from any of its properties required under any Environmental
Law. 
  
 (c) Governmental Approvals. Obtain and maintain,
and cause each of its Subsidiaries to obtain and maintain, all Governmental Approvals (including the Material Governmental Approvals) that are required of it for the validity or enforceability of the Transaction Documents and the Material Contracts,
the ongoing operations of their respective businesses and to issue, declare or pay dividends or distributions, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  
 (d) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property and (ii) all lawful claims that, if unpaid, will by law become a Lien upon
its property not permitted by Section 5.02 of this Agreement; provided that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge or claim that is the subject of a Contest.

  
 (e) Insurance. (i) Maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same
general areas in which the Borrower or such Subsidiary operates; provided that such insurance shall be in accordance with the terms and provisions set forth in Section 5.10 of the Security and Intercreditor Agreement and such insurance shall
satisfy such other requirements as may be provided pursuant to the terms of each Material Contract. 
  
 (ii) Within 15 Business Days after the Closing Date, deliver evidence to the Administrative Agent that the Collateral Agent has been named
as an additional insured (and, in the case of all property damage insurance, as loss payee) with respect to all property damage and liability insurance required under this Section 5.01(e). 
  

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 (f) Preservation of Corporate Existence, Etc. Except as could not reasonably be expected to have a
Material Adverse Effect, preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its existence, legal structure, rights (charter or statutory), permits, licenses, approvals, franchises, and privileges in the jurisdiction
of its formation and in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify; provided, however, that the Borrower and its Subsidiaries may consummate any merger
or consolidation permitted under Section 5.02(d). 
  
 (g)
Visitation Rights. At any reasonable time and from time to time at the cost and expense of the Borrower, permit any of the Agents or any of the Lenders, or any agents or representatives thereof, to examine and make copies of and abstracts
from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their officers or directors
and with their independent certified public accountants. 
  
 (h)
Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets with respect to all material transactions and
business of the Borrower and each such Subsidiary in accordance with GAAP in effect from time to time. 
  
 (i) Maintenance of Properties, Etc. Operate, maintain and preserve, and cause each of its Subsidiaries to operate, maintain and preserve, all of
its properties (other than any such properties as are immaterial or non-essential to the conduct of business by the Borrower and its Subsidiaries, taken as a whole) that are used or useful in the conduct of its business in good working order and
condition (ordinary wear and tear excepted) in accordance with prudent practices then being utilized in the merchant, non-regulated power generation industry and in accordance with Applicable Laws (including Environmental Laws). 
  
 (j) Transactions with Affiliates. Other than as may be required by
PUHCA, conduct, and cause each of its Subsidiaries to conduct, (i) all transactions with any of the Affiliates of the Borrower on terms that are fair and reasonable and no less favorable to the Borrower or such Subsidiary than it would obtain in a
comparable arm’s-length transaction with a Person not an Affiliate of the Borrower and (ii) all transactions with a Person other than an Affiliate of the Borrower on terms that are without regard to any benefit or detriment to any Affiliate of
the Borrower (other than any of the Borrower’s Subsidiaries); provided that this Section 5.01(j) shall not be deemed to permit any transaction otherwise prohibited by the terms of this Agreement. Without prejudice to the foregoing, and
to the extent not otherwise prohibited by any other provision of the Financing Documents, the following transactions shall be deemed to be in compliance with the first sentence of this clause (j): (A) any transaction executed in accordance with the
requirements of PUHCA, (B) any agreements made by the Borrower or any of its Subsidiaries with a utility to provide provider of last resort requirements, as such agreements are amended from time to time, so long as such provider of last resort
agreements are with an Affiliate of the Borrower and approved by all applicable Governmental Authorities and (C) any transaction authorized under a tariff or rate schedule which has been 
  

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 approved by the Federal Energy Regulatory Commission. For the avoidance of doubt, (I) any contracts existing on the date
hereof to which the Borrower or any of its Subsidiaries is a party and copies of which have been delivered to the Lenders pursuant to Section 3.01(a)(xiv) (and any renewals or replacements thereof on substantially the same terms) and (II) the
Transaction Documents shall each be deemed to comply with this Section 5.01(j) except to the extent that the Federal Energy Regulatory Commission or the SEC determines that any such contract is not in conformance with Applicable Law and such
non-conforming contract is not on terms described in clauses (i) or (ii) of this Section 5.01(j). 
  
 (k) Further Assurances. (i) Promptly upon request by any Agent or any Lender, correct, and cause each of its Subsidiaries promptly to correct, any
material defect or error that may be discovered in any Financing Document or in the execution, acknowledgment, filing or recordation thereof. 
  
 (ii) Promptly upon request by the Administrative Agent, the Collateral Agent or any Lender, do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments, financing statements and continuations thereof, termination statements,
notices of assignments, transfers, certificates, assurances and other instruments as the Administrative Agent, the Collateral Agent or any Lender may reasonably require from time to time in order to (A) carry out more effectively the purposes of the
Financing Documents, (B) to the full extent permitted by Applicable Law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or interests (other than the Excluded Assets) to the Liens now or hereafter intended
to be covered by any of the Collateral Documents, (C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (D) assure, convey, grant, assign,
transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Financing Document or under any other instrument executed in connection
with any Financing Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. 
  
 (l) Preparation of Environmental Reports. If any Agent shall reasonably believe that a material environmental event has occurred on any parcel of
real property owned or leased by the Borrower or any of its Subsidiaries after the date hereof, provide to each Agent within 90 days after receipt of a written request from such Agent in which the Agent describes in reasonable detail the basis of
such belief, at the expense of the Borrower, a Phase I environmental site assessment report for the properties described in such request prepared by an environmental consulting firm reasonably acceptable to the Administrative Agent, indicating the
presence or absence of Hazardous Materials and the estimated cost of any legally required compliance, removal or remedial action in connection with any Hazardous Materials on such properties. Without limiting the generality of the foregoing, if any
Agent determines at any time that a material risk exists that any such report will not be provided within the time referred to above, the Administrative Agent may, at the time following the forty-fifth day after the request of such Agent, retain an
environmental consulting firm to prepare such report at the expense of the Borrower, and the Borrower hereby grants and agrees to cause any Subsidiary that owns any 
  

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 property described in such request to grant at the time of such request to the Administrative Agent, such firm and any
agents or representatives thereof an irrevocable non-exclusive license, subject to the rights of tenants, to enter onto their respective properties to undertake such an assessment. 
  
 (m) Compliance with Terms of Leaseholds. Except where the failure to do so either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, (i) make all payments and otherwise perform all obligations in respect of all leases of real property to which the Borrower or any of its Subsidiaries is a party, (ii) keep such
leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, (iii) notify the Administrative Agent of any default by any party with respect to such leases and
(iv) cooperate with each Agent in all respects to cure any such default, and cause each of its Subsidiaries to do so. 
  
 (n) Performance of Material Contracts. Except where the failure to do so either individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect, (i) perform and observe, and cause each of its Subsidiaries to perform and observe, all the terms and provisions of all Material Contracts required to be performed or observed by it, (ii) maintain each such
Material Contract in full force and effect, (iii) enforce each such Material Contract in accordance with its terms, (iv) take all such action to such end as may be from time to time reasonably requested by the Administrative Agent and (v) upon
reasonable request of the Administrative Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as the Borrower or any of its Subsidiaries is entitled to make under such
Material Contract. 
  
 (o) Subsidiaries. (i) Promptly (but
in any event no later than 15 Business Days after any of the following occurs), notify the Administrative Agent (A) if any Subsidiary is formed or acquired by any Loan Party after the date hereof or (B) if any Subsidiary ceases to be an Excluded
Subsidiary. 
  
 (ii) Promptly (but in any event
no later than 45 Business Days) (A) after the formation or acquisition after the date hereof of any new Subsidiary or (B) after any Subsidiary ceases to be an Excluded Subsidiary, deliver to the Administrative Agent (with copies to the
Administrative Agent, the Collateral Agent and the Intercreditor Agent) the following: (1) an Assumption and Joinder Agreement executed by such Subsidiary pursuant to which among other things, such Subsidiary shall become a party hereto (any such
Subsidiary, being an “Additional Loan Party”), (2) certified copies of the Constituent Documents of such Subsidiary, (3) certificates representing Equity Interests in such Subsidiary (if any) accompanied by undated stock
powers (or an equivalent instrument) executed in blank, (4) a security and intercreditor agreement supplement executed by such Subsidiary pursuant to which such Subsidiary agrees to be a party to and be bound by the Security and Intercreditor
Agreement, (5) acknowledgment copies of proper financing statements, duly filed under the Uniform Commercial Code of all jurisdictions that the Administrative Agent or the Collateral Agent may reasonably deem necessary or desirable in order to
perfect and protect the liens and security interests created under the Security and Intercreditor Agreement (in the order of priority set forth therein) in respect of the property and assets of such Subsidiary, 
  

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 (6) completed requests for information listing the financing statements referred to in clause (5) above
and all other effective financing statements filed in the jurisdictions referred to in clause (5) above that name such Subsidiary as debtor, together with copies of such other financing statements and (7) evidence that all other action that the
Administrative Agent may reasonably deem necessary or desirable in order to perfect and protect the liens and security interests created under the Security and Intercreditor Agreement (in the order of priority set forth therein) with respect to any
of the property or assets of such Subsidiary. 
  
 (iii) Promptly but in any event within the time periods set forth in Section 5.01(p), (A) after the formation or acquisition after the date hereof of any new Subsidiary or (B) after any Subsidiary ceases to be an Excluded Subsidiary, comply
with the requirements set forth below under Section 5.01(p) with respect to any real property owned by such Subsidiary. 
  
 (p) Real Property. Promptly upon the request of the Administrative Agent (but in any event within 75 days of such request) deliver to the
Collateral Agent (with copies to the Administrative Agent and the Intercreditor Agent) the following: (i) Term Mortgages, duly executed by the appropriate Loan Party in respect of the Acquired Material Property, (ii) confirmations from the title
insurance company recording the Term Mortgages referred to in clause (i) that duly executed counterparts of such Term Mortgages sufficient for recording in all filing or recording offices that the Administrative Agent may deem necessary or desirable
in order to create valid and subsisting Liens on the property described therein in favor of the Collateral Agent for the benefit of the Term B Lenders, the Term C Lenders and the Collateral Agent have been recorded, and evidence reasonably
satisfactory to the Administrative Agent that all filing and recording taxes and fees have been paid; (iii) fully paid American Land Title Association Lender’s Extended Coverage title insurance policies in form and substance, with endorsements
and in amounts acceptable to the Administrative Agent, issued by title insurers acceptable to the Administrative Agent, insuring the Term Mortgages referred to in clause (i) to be valid and subsisting Liens on the properties described therein, free
and clear of all defects (including mechanics’ Liens and materialmen’s Liens) and encumbrances, excepting only Permitted Liens (other than mechanic’s liens and materialmen’s liens to be insured against under said policies), and
providing for such other affirmative insurance (including endorsements for future advances under the Financing Documents and for mechanics’ and materialmen’s Liens) as the Administrative Agent may deem necessary or desirable; (iv) ALTA
Surveys (for which all necessary fees (where applicable) have been paid) of the Material Acquired Property dated reasonably near the date of such delivery; (v) confirmation from the title insurance company recording the Term Mortgages delivered
pursuant to clause (i) with respect to the validity and (subject to the exceptions and encumbrances permitted therein) the priorities of the Term Mortgages; and (vi) evidence that all action (including payment by the Borrower to the title insurance
company recording the Term Mortgages delivered pursuant to clause (i) of the amount previously notified by such title insurance company to the Borrower as necessary for it to record such Term Mortgages) that the Administrative Agent may deem
necessary or desirable in order to perfect and protect the liens and security interests created under the Collateral Documents (other than the Other Perfection Requirements) securing all Obligations of the Borrower and the Loan Parties under the
Financing Documents have been taken. 
  

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 (q) Taxes. Pay in full when due (or obtain an appropriate exemption therefrom) all Taxes (i) due
and payable after the Closing Date in connection with the execution, delivery, filing, recording or admissibility in evidence of the Transaction Documents or to ensure the legality, validity, enforceability, perfection or admissibility in evidence
of the Transaction Documents and (ii) due and payable from time to time by the Borrower or any of its Subsidiaries in connection with the consummation of the transactions contemplated by, and the performance of, the Transaction Documents.

  
 (r) Stamp Duties, Etc. Pay in full when due (or obtain
an appropriate exemption therefrom) all required stamp duties, registration fees, filing costs and other charges in connection with the execution, delivery, filing, recording, perfection, priority or admissibility in evidence of the Transaction
Documents (and the security interests purported to be granted thereby) required to be paid from time to time. 
  
 (s) Use of Proceeds. Use the proceeds of (i) the Term B Borrowing and the Term C Borrowing on the Closing Date to refinance the Borrower’s
Existing Secured Lender Debt and (ii) any Term B Borrowing made pursuant to Section 2.14 of the Term B Credit Agreement subsequent to the Closing Date solely for working capital purposes or to refinance amounts outstanding under the Term C Credit
Agreement. 
  
 (t) Revised Schedule 4.01(t). By no later
than March 31, 2004, provide to the Administrative Agent an amended Schedule 4.01(t) reflecting in addition to the information contained therein on the Closing Date, the principal amount of the obligations secured by the Liens listed on such
Schedule 4.01(t) as of the Closing Date accompanied by an Officer’s Certificate certifying that the information in such amended Schedule 4.01(t) is true, correct and complete in all material respects as of the Closing Date. 
  
 (u) Gleason Lease. Use all commercially reasonable efforts to promptly
after the date hereof, deliver, or cause its appropriate Subsidiaries to deliver, a duly authorized, executed and delivered subordination of fee interest and acknowledgement of lenders from the Gleason Lessor (or its successors and assigns) in form
and substance reasonably satisfactory to the Administrative Agent and Collateral Agent. 
  
 Section 5.02 Negative Covenants of the Borrower. The Borrower agrees that, so long as any Advance shall remain unpaid or any Commitment shall remain outstanding, the Borrower will not, at any time: 

 
 (a) Liens, Etc. Create, incur, assume or suffer to exist, or
permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien on or with respect to any of its properties of any character (including accounts) whether now owned or hereafter acquired, or sign or file or suffer to exist, or
permit any of its Subsidiaries to sign or file or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a financing statement that names the Borrower or any of its Subsidiaries as debtor, or sign or suffer to exist, or permit any
of its Subsidiaries to sign or suffer to exist, any security and intercreditor agreement authorizing any secured party thereunder to file such financing statement, or assign, or permit any of its Subsidiaries to assign, any accounts or other right
to receive income, except: 
  
 (i) Liens upon or
in the Group Assets securing Debt of the Borrower permitted under Section 5.02(b)(i), 5.02(b)(ii), 5.02(b)(iii) to the extent such Debt is outstanding under Pollution Control Bonds or the Senior Notes or 5.02(b)(xvi) to the extent such Permitted
Refinancing Debt is incurred in respect of any of the foregoing; provided that to the extent such Liens secure Permitted Refinancing Debt incurred with respect to the Term C Advances in excess of $200,000,000, such Liens shall be subordinated
to the Liens securing the Term B Advances on terms and conditions acceptable to the Required Term B Lenders; 
  

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 (ii) Liens upon or in the Springdale Assets securing Debt outstanding under this
Agreement, the Credit Agreements or the Senior Notes or any Debt permitted to be incurred pursuant to Section 5.02(b)(xvi) to the extent such Permitted Refinancing Debt is incurred in respect of Debt outstanding under this Agreement, the Credit
Agreements or the Senior Notes; 
  
 (iii)
Permitted Liens; 
  
 (iv) Liens existing on the
date hereof and described on Schedule 4.01(t); 
  
 (v) purchase money Liens upon or in real property, physical assets or equipment acquired or held by the Borrower or any of its Subsidiaries in the ordinary course of business to secure the purchase price of such real property, physical
assets or equipment or to secure Debt permitted to be incurred pursuant to Section 5.02(b)(vi) incurred solely for the purpose of financing the acquisition, construction or improvement of any such real property, physical assets or equipment to be
subject to such Liens, or Liens existing on any such real property, physical assets or equipment at the time of acquisition (other than any such Liens created in contemplation of such acquisition that do not secure the purchase price), or
extensions, renewals or replacements of any of the foregoing for the same or a lesser amount; provided, however, that (A) such Lien is incurred and the Debt secured thereby is created within 90 days after the acquisition, completion of
construction or completion of improvement thereof (as applicable), and (B) no such Lien shall extend to or cover any property, physical assets or equipment other than the real property, physical assets or equipment being acquired, constructed or
improved; and provided further that the aggregate principal amount of the Debt secured by Liens permitted by this clause (v) shall not exceed the amount permitted under Section 5.02(b)(vi) at any time outstanding; 
  
 (vi) Liens arising in connection with Capitalized Leases
permitted under Section 5.02(b)(vii); provided that no such Lien shall extend to or cover any Collateral or assets other than the assets subject to such Capitalized Leases; 
  
 (vii) Liens on cash or Cash Equivalents (A) deposited in margin accounts with or on behalf of futures
contract brokers or paid over to other contract counterparties or (B) pledged or deposited as collateral to a contract counterparty to secure obligations with respect to (1) contracts (other than for Debt) for commercial and trading activities in
the ordinary course of business for the purchase, transmission, distribution, sale, storage, lease or hedge of any energy related commodity or (2) Hedge Agreements representing 
  

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 commodity price contracts, transmission agreements or derivatives or interest rate derivatives to the
extent that the Borrower or such Subsidiary is permitted to enter into any such Hedge Agreement pursuant to Section 5.02(b)(v); 
  
 (viii) Liens on property of a Person existing at the time such Person is merged into or consolidated with the Borrower or any Subsidiary
of the Borrower or becomes a Subsidiary of the Borrower; provided that such Liens were not created in contemplation of such merger, consolidation or investment and do not extend to any assets other than those of the Person merged into or
consolidated with the Borrower or such Subsidiary or acquired by the Borrower or such Subsidiary; 
  
 (ix) Liens granted by the Borrower or any of its Subsidiaries in favor of a commercial trading counterparty, a futures contract broker or
other contract counterparty on accounts receivable arising under, commodities covered by, other obligations owed to, and other rights of the Borrower or any of its Subsidiaries, in each case, under any contract (other than for Debt) entered into in
the ordinary course of business and to the extent permitted under Section 5.02(o) in connection with commercial and trading activities (including any netting agreement) to secure the Borrower’s or such Subsidiary’s obligations under such
contract; provided that such Liens are granted in the ordinary course of business and when granted, do not secure obligations which are past due; 
  
 (x) Liens granted on cash or Cash Equivalents to defease Debt that could be prepaid without violating Section 5.02(l); 
  
 (xi) Liens granted over cash or Cash Equivalents
constituting proceeds from any sale or disposition of assets permitted under Section 5.02(e) deposited in escrow accounts to secured Debt permitted to be incurred under Section 5.02(b)(xi) in respect of such sale or disposition 
  
 (xii) other Liens affecting property with an aggregate fair
market value not to exceed $25,000,000; 
  
 (xiii) the replacement, extension or renewal of any Lien permitted by clauses (iv), (v), (vi), (viii) or (xii) above upon or in the same property theretofore subject thereto and, if such Lien secured Debt, upon the incurrence of any
Permitted Refinancing Debt in respect of such Debt secured to the extent such Permitted Refinancing Debt is incurred in accordance with Section 5.02(b); and 
  
 (xiv) subject to the PNC Control Agreement, Liens granted in favor of PNC Bank, National Association over cash, checks, deposit accounts,
securities accounts and Cash Equivalents of the Borrower or its Subsidiaries held by PNC Bank, National Association from time to time to secure Debt permitted to be incurred under Section 5.02(b)(xix). 
  
 (b) Debt. Create, incur, assume or suffer to exist, or permit any of
its Subsidiaries to create, incur, assume or suffer to exist, any Debt, except: 
  
 (i) Debt of the Borrower under the Financing Documents (including, without limitation, Debt incurred pursuant to Section 2.14 of the Term
B Credit Agreement); 
  

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 (ii) secured Debt of the Borrower in an aggregate principal amount, when combined with
the aggregate principal amount of Debt incurred pursuant to Section 2.14 of the Term B Credit Agreement, not to exceed $200,000,000 at any time outstanding; 
  
 (iii) Surviving Debt; 
  
 (iv) unsecured Debt owed to the Parent, the Borrower or any Subsidiary of the Borrower so long as such Debt is subordinated to the
Advances in accordance with the Affiliate Subordination Terms and to the extent such Debt is owed to any Loan Party such Debt constitutes Pledged Debt; 
  
 (v) Debt in respect of Hedge Agreements entered into in the ordinary course of business and consistent with prudent business practice to
hedge or mitigate (A) risks to which the Borrower or any Subsidiary is exposed in the conduct of its business or the management of its liabilities as a result of fluctuations in the prices of transmission, capacity or energy (or of any fuel required
for the generation thereof) or (B) risks in respect of interest rate fluctuations; provided that in each case such Hedge Agreement shall not have been entered into for speculative purposes; 
  
 (vi) Debt incurred to finance all or any part of the
acquisition, construction or improvement of any real property, physical assets or equipment (including Capital Expenditures); provided that such Debt is incurred prior to or within 90 days after such acquisition or the completion of
construction or completion of improvement or such Capital Expenditures; provided further that the aggregate principal amount of Debt permitted under this Section 5.02(b)(vi), when combined with the aggregate principal amount of Debt incurred
in connection with Capitalized Leases permitted under Section 5.02(b)(vii) shall not exceed $100,000,000 at any time outstanding; 
  
 (vii) Capitalized Leases in an aggregate principal amount, when combined with the aggregate principal amount of all Debt incurred pursuant
to Section 5.02(b)(vi), not in excess of $100,000,000 at any time outstanding; 
  
 (viii) Debt of any Person that (x) is merged into or consolidated with the Borrower or any Subsidiary or (y) becomes a Subsidiary of the
Borrower after the date hereof in either case in accordance with the terms of Section 5.02(f); provided that (A) such Debt is existing at the time such Person becomes a Subsidiary of the Borrower (other than Debt incurred solely in
contemplation of such Person becoming a Subsidiary of the Borrower), (B) immediately after giving effect to the investment in such Subsidiary, no Default or Event of Default shall have occurred and be continuing and (C) such Debt is non-recourse to
the Borrower or any other Subsidiary of the Borrower (other than with respect to such Person and its Subsidiaries to the extent such Debt was with recourse to such Person and/or its Subsidiaries at the time of such investment); 
  
 (ix) Debt arising from the honoring by a bank or financial
institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business, so long as such Debt is covered within five Business Days; 

 

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 (x) Debt in respect of workers’ compensation claims, self-insurance obligations,
bankers’ acceptance and performance and surety bonds provided by the Borrower or any of its Subsidiaries in the ordinary course of business; 
  
 (xi) Debt that may be deemed to arise as a result of agreements of the Borrower or any of its Subsidiaries providing for indemnification,
adjustment of purchase price or any similar obligations, in each case, incurred in connection with the sale or disposition of any business, assets or Equity Interests in any Subsidiary of the Borrower consummated in accordance with the terms of
Section 5.02(e) in an amount not to exceed with respect to any such sale or disposition the amount of gross proceeds received by the Borrower or any of its Subsidiaries in connection with such sale or disposition; 
  
 (xii) Debt of the Borrower represented by letters of credit,
surety bonds, Contingent Obligations and performance bonds supporting obligations of the Borrower or its Subsidiaries so long as, after giving effect to such letters of credit, surety bonds, Contingent Obligations and performance bonds (and the
Investment represented thereby), the Borrower would be in compliance with Section 5.02(f); 
  
 (xiii) reimbursement obligations owed to Affiliates for amounts paid on behalf of the Borrower or any of its Subsidiaries by the Parent or
any of its Subsidiaries in accordance with applicable requirements under PUHCA with respect to the provision of goods or services to the Borrower or any such Subsidiary; 
  
 (xiv) unsecured Debt of the Borrower and its Subsidiaries not to exceed $100,000,000 at any time
outstanding; 
  
 (xv) unsecured Debt in respect
of obligations of the Borrower or any of its Subsidiaries to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services; provided that such obligations are incurred in connection with
open accounts extended by suppliers on customary trade terms (which required that all such payments be made within 60 days of the incurrence of the related Debt) in the ordinary course of business and not in connection with the borrowing of money;

  
 (xvi) Permitted Refinancing Debt incurred in
respect of any Debt permitted under clauses (i), (ii), (iii), (vi), (vii), (viii) and (xiv) or this clause (xvi); 
  
 (xvii) unsecured Debt for Borrowed Money of the Borrower and its Subsidiaries incurred in the ordinary course of business, maturing within
one year from the date incurred, and aggregating not more than $20,000,000 at any one time outstanding; 
  
 (xviii) additional unsecured Debt for Borrowed Money issued or incurred the proceeds of which are used to make Capital Expenditures
required to be made in order to comply with Applicable Law regarding the environment or the transmission of electricity or natural gas; provided that (A) the scheduled maturity date for such Debt is a date that 
  

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 is at least six calendar months after the Term C Maturity Date and does not require any scheduled
amortization or mandatory prepayments thereof prior to such date, (B) such Debt contains covenants and events of default which, taken as a whole, are determined in good faith by a Responsible Officer of the Borrower to be no less favorable to the
Borrower or the applicable Subsidiary in any material respect than the covenants and Events of Default applicable under this Agreement, (C) no Default or Event of Default shall have occurred and be continuing, and (D) prior to the incurrence or
issuance of such Debt the Borrower shall have delivered to the Administrative Agent a certificate demonstrating pro forma compliance with the covenants set forth in Section 5.03 for the period of four consecutive fiscal quarters ending on the
last date of the last completed fiscal quarter immediately preceding the proposed date of incurrence of such Debt (on the assumption that such incurrence of Debt under this clause occurred on the first day of such four fiscal quarter period and
using historical results of the Borrower and its Subsidiaries for such period); and 
  
 (xix) secured or unsecured Debt owed to PNC Bank, National Association from time to time in connection with the extension of credit to the
Borrower or its Subsidiaries for the account of one or more employees or departments of the Borrower or its Affiliates in respect of costs and expenses incurred by such employees or departments in connection with the conduct of business on behalf of
the Borrower or its Subsidiaries in an aggregate principal amount not to exceed $3,000,000 at any one time outstanding. 
  
 (c) Change in Nature of Business. Make, or permit any of its Subsidiaries to make, any material change in the nature of its business as carried on
at the date hereof; or engage in, or permit any of its Subsidiaries to engage in, any business other than electric power generation, transmission and distribution, energy trading or any other business in which the Borrower or any of its Subsidiaries
is engaged on the Closing Date, as described in Schedule 5.02(c). 
  
 (d) Mergers, Etc. Merge into or consolidate with any Person or permit any Person to merge into it, or permit any of its Subsidiaries to do so, except that: 
  
 (i) any Subsidiary of the Borrower may merge into or consolidate with any other Subsidiary of the Borrower,
provided that, in the case of any such merger or consolidation, the Person formed by such merger or consolidation shall be a wholly owned Subsidiary of the Borrower; 
  
 (ii) in connection with any sale or other disposition permitted under Section 5.02(e) (other than Section
5.02(e)(iii)), any Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; 
  
 (iii) in connection with any acquisition permitted under Section 5.02(f), any Subsidiary may merge into the
Borrower; and 
  
 (iv) the Borrower may merge
into or otherwise consolidate with another Person if either (A) the Borrower is the surviving entity or (B)(1) the surviving entity is 
  

 69 

 organized or existing under the laws of the United States, any state thereof or the District of Columbia
and (2) the surviving entity assumes all of the Borrower’s Obligations under the Financing Documents, pursuant to agreements reasonably satisfactory to the Administrative Agent; 
  
 provided, however, that in each case, immediately after giving effect thereto, no event shall occur and be continuing that
constitutes a Default. 
  
 (e) Sales, Etc., of Assets.
Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose of, any assets or grant any option or other right to purchase, lease or to otherwise acquire any assets other than:

  
 (i) the sale or lease of power, capacity, the
right to transmit electricity or natural gas, fuel and other products and services in the ordinary course of business and any sale, lease or other disposition of damaged, surplus, worn-out or obsolete assets in the ordinary course of business;

  
 (ii) the sale, transfer or other disposition
of any Emissions Credits; provided that to the extent such sale, transfer or other disposition of Emissions Credits (A) is other than in the ordinary course of business or (B) is in the ordinary course of business but results in Net Cash
Proceeds to the Borrower or its Subsidiaries in excess of $20,000,000 in the aggregate from all such sales, transfers or other dispositions of emission credits in any Fiscal Year, the Net Cash Proceeds therefrom shall be required to be applied to
prepay the Advances in accordance with the provisions of Section 2.03 and 2.05 of the Security and Intercreditor Agreement; 
  
 (iii) transactions permitted under Section 5.02(d); 
  
 (iv) sales, transfers or other dispositions of assets or Equity Interests among the Borrower and its
Subsidiaries; provided, however, that (A) in respect of sales, transfers or other dispositions by the Borrower to its Subsidiaries, the Borrower shall not sell, lease, transfer or otherwise dispose of any assets to any Excluded
Subsidiary, and (B) in respect of sales, transfers or other dispositions by Subsidiaries to other Subsidiaries, (1) with respect to Excluded Subsidiaries, only Excluded Subsidiaries may sell, transfer or otherwise dispose of assets to another
Excluded Subsidiary and (2) with respect to other Subsidiaries, such sales, transfers or other dispositions are either permitted by Section 5.02(f) or the transferring Subsidiary has received fair value for such sales, transfers or dispositions;

  
 (v) sales, transfers or other dispositions of
assets (including Equity Interests in any Subsidiary or any contractual rights); provided that (A) the consideration received by the Borrower and its Subsidiaries for such asset shall have been determined on the basis of an arms-length
negotiation with non-Affiliates, (B) with respect to any asset or property for which consideration is received by the Borrower or any Subsidiary is in excess of $10,000,000, the consideration received shall be at least the Fair Market Value for such
Asset and (1) if the consideration to be received with respect to such asset or property is equal to more than $10,000,000 but less than $25,000,000, the Borrower shall 
  

 70 

 have delivered to the Administrative Agent an Officer’s Certificate certifying that such sale,
transfer or other disposition is for Fair Market Value, (2) if the consideration to be received with respect to such asset or property is equal to $25,000,000 but less than $75,000,000, the Borrower shall have delivered to the Administrative Agent,
an Officer’s Certificate accompanied by a resolution of the Board of Directors of the Company pursuant to which the Board of Directors of the Company shall have concluded that such sale, transfer or other disposition is for Fair Market Value,
and (3) if the consideration to be received with respect to such asset or property is equal to or greater than $75,000,000, an Officer’s Certificate accompanied by a resolution of the Board of Directors of the Company pursuant to which the
Board of Directors of the Company shall have concluded that such sale, transfer or other disposition is for Fair Market Value which conclusion shall be supported by an appraisal or fairness opinion addressed to the Board of Directors from a Person
other than an Affiliate of the Borrower which supports the conclusion that such sale, transfer or other disposition is for Fair Market Value, (C) no less than 75% of the purchase price (excluding the amount of any Debt assumed in connection with any
such sale or other disposition by a Person other than any Loan Party) for such asset shall be paid to the Borrower and its Subsidiaries solely in cash or Cash Equivalents, (D) no portion of the non-cash proceeds received by the Borrower and its
Subsidiaries shall consist of Debt of, or Equity Interests in, the Borrower or any of its Subsidiaries, (E) no Default or Event of Default shall have occurred and be continuing, (F) on or prior to such sale, transfer or disposition, all Debt
(including any Pollution Control Bonds) secured by such asset shall have been either (1) defeased or repaid in full or (2) assumed by a Person other than any Loan Party in connection with such sale, transfer or other disposition, and (G) the
Borrower would be in compliance with the covenants set forth in Section 5.03 as of the most recently completed period ending prior to such transaction for which financial statements and certificates required by Section 5.04(b) or 5.04(c) were
required to have been delivered or for which comparable financial statements have been filed with the SEC, in each case after giving effect to such transaction and to any other event occurring during such period as to which pro forma
recalculation is reasonably appropriate (including any other transaction described in this clause occurring after such period) as if such transaction (and the repayment of any Debt in connection therewith) had occurred as of the first day of such
period; 
  
 (vi) sales, transfers or other
dispositions of other immaterial property (other than Equity Interests in, or Debt or other Obligations of, any Subsidiary) in the ordinary course of business and on reasonable terms, if no Default exists at the time of such sale, transfer or other
disposition; 
  
 (vii) so long as any of
Conemaugh, NYC Energy LLC, Allegheny Energy Supply Units 3, 4 and 5 LLC, Mon Synfuel LLC or any of their respective Subsidiaries constitute an Excluded Subsidiary, the dissolution or liquidation of any thereof; and 
  
 (viii) sales or transfers of Equity Interests in the Parent
to any Plan; 
  
 provided that in the case of sales, transfers or other
dispositions of assets pursuant to clause (ii) (but only to the extent contemplated thereby), (v), (vi) or (vii) above, the Borrower shall, promptly upon receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds from such sale,
transfer or disposition prepay the Advances in accordance with the provisions of Section 2.03 and 2.05 of the Security and Intercreditor Agreement. 
  

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 (f) Investments in Other Persons. Make or hold, or permit any of its Subsidiaries to make or hold,
any Investment in any Person, except: 
  
 (i) (A)
equity Investments outstanding as of the date hereof by the Borrower and its Subsidiaries in their Subsidiaries or Affiliates and set forth on Part A of Schedule 4.01(u), (B) equity Investments after the date hereof in Subsidiaries of the Borrower
(other than Excluded Subsidiaries), (C) Investments after the date hereof in Subsidiaries (other than Excluded Subsidiaries) of the Borrower consisting of intercompany Debt permitted under Section 5.02(b)(iv) and (D) equity or other Investments
after the date hereof in AGC or Buchanan Generation LLC, the proceeds of which are used by AGC or Buchanan Generation LLC, as the case may be, for the operation, maintenance or repair of its assets and property; provided that any Debt owing
to any Loan Party shall constitute Pledged Debt and be delivered to the Collateral Agent to the extent required under the terms of the Security and Intercreditor Agreement and is subject to the Affiliate Subordination Terms; 
  
 (ii) loans and advances to employees in the ordinary course
of business of the Borrower and its Subsidiaries as presently conducted in an aggregate amount not to exceed $2,000,000 at any time outstanding; 
  
 (iii) Investments in Cash Equivalents; 
  
 (iv) Investments in Hedge Agreements permitted pursuant to Section 5.02(b)(v); 
  
 (v) Investments in Subsidiaries of the Borrower resulting
from drawings under, or renewals or extensions of letters of credit, surety bonds, Contingent Obligations or performance bonds supporting obligations of Subsidiaries incurred in the ordinary course of business but in any event not for speculative
obligations of such Subsidiary; 
  
 (vi)
Investments in any non-cash proceeds received by the Borrower or any of its Subsidiaries in connection with any sale, transfer or other disposition of any asset to the extent permitted under Section 5.02(e); 
  
 (vii) Investments consisting of extensions of credit in the
nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the
extent reasonably necessary in order to prevent or limit loss; 
  
 (viii) Investments not otherwise permitted under this Section 5.02(f) in an aggregate amount not to exceed $30,000,000; provided that with respect to each Investment made pursuant to this Section 5.02(f)(viii):
(A) to the extent any such Investment constitutes (1) a newly acquired or organized Subsidiary of the Borrower or any of its Subsidiaries, the Borrower or any of its Subsidiaries acquiring such newly 
  

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 acquired or organized Subsidiary shall have complied with its obligations under Section 5.01(r) and (2)
Equity Interests in, or Debt of, any Person, such Equity Interests or Debt shall constitute Pledged Equity Interests or Pledged Debt, as the case may be and shall be subject in all respects to the terms of the Security and Intercreditor Agreement;
(B) such Investment shall not include or result in any contingent liabilities that could reasonably be expected to be material to the business, financial conditions, operations or prospects of the Borrower and its Subsidiaries, taken as a whole (as
determined in good faith by the board of directors (or persons performing similar functions) of the Borrower or such Subsidiary if the board of directors is otherwise approving such transaction and, in each other case, by a Responsible Officer; (C)
such Investment shall be in property and assets which are part of, or in lines of business which are in the electric power generation, transmission, distribution and/or energy trading businesses; (D) any determination of the amount of such
Investment shall include all cash and noncash consideration (including, without limitation, the fair market value of all Equity Interests issued or transferred to the sellers thereof, all indemnities, earnouts and other contingent payment
obligations to, and the aggregate amounts paid or to be paid under noncomplete, consulting and other affiliated agreements with, the sellers thereof, all write-downs of property and assets and reserves for liabilities with respect thereto and all
assumptions of debt, liabilities and other obligations in connection therewith) paid by or on behalf of the Borrower and its Subsidiaries in connection with such Investment; and (E) (1) immediately before and giving pro forma effect to any
such purchase or other acquisition, no Default or Event of Default shall have occurred and be continuing and (2) immediately after giving effect to such purchase or other acquisition the Borrower and its Subsidiaries shall be in pro forma
compliance with all of the covenants set forth in Section 5.03, such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent pursuant to Section 5.04(b) or 5.04(c) as though such
Investment had been consummated as of the first day of the fiscal period covered thereby; and 
  
 (ix) Investments not otherwise permitted under this Section 5.02(f) existing on the Closing Date and described in Part B of Schedule
4.01(u). 
  
 (g) Restricted Payments. Declare or pay any
dividend, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its stockholders, partners or members (or the equivalent Persons thereof) as such, make any
distribution of assets, Equity Interests (other than Equity Interests to any Person in the Borrower issued to the Parent) or obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such or issue or
sell any Equity Interests other than the Parent or accept any capital contributions other than capital contributions made by the Parent to the Borrower or made with respect to the ML Interest, or permit any of its Subsidiaries to do any of the
foregoing, or permit any of its Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for value any Equity Interest in the Borrower or to issue or sell any Equity Interests therein, except that so long as no Default shall have
occurred and be continuing at the time of any action described in clause (i), (ii) or (iii) below or would result therefrom: 
  
 (i) the Borrower may (A) declare and pay cash dividends and distributions with respect to the ML Interests to the extent required under
the Constituent Documents 
  

 73 

 of the Borrower as in effect on the Closing Date, (B) make payments to the Parent in respect of
reimbursement obligations under any drawn letter of credit posted by the Parent on behalf of the Borrower or any of its Subsidiaries to support Obligations of the Borrower or such Subsidiary undertaken in the ordinary course of business and not for
speculative purposes, (C) issue and sell shares of its Equity Interests so long as the Net Cash Proceeds thereof are applied to repayment of the Advances pursuant to Sections 2.03 and 2.05 of the Security and Intercreditor Agreement, (D) commencing
with the Fiscal Year ending December 31, 2005, declare and pay cash dividends to the Parent in an aggregate amount in any Fiscal Year not to exceed $10,000,000; and (E) make any equity Investment in any of its Subsidiaries permitted under Section
5.02(f); 
  
 (ii) any Subsidiary of the Borrower
may (A) declare and pay cash dividends or distributions ratably to the holders of its Equity Interests, including the Borrower or any other Subsidiary of the Borrower, (B) accept capital contributions from its parent to the extent permitted under
Section 5.02(f)(i) or 5.02(f)(vi) and (C) make any equity Investment in any of its Subsidiaries permitted under Section 5.02(f); and 
  
 (iii) the Borrower or any Subsidiary of the Borrower may sell, transfer or contribute any Equity Interests in the Parent to any Plan;

  
 provided, however, that the provisions of this clause (g) shall
not apply to any dividends or distributions required to be made to the Parent pursuant to the terms of Section 4.01(b) of the Intercreditor Agreement or which are made for the purpose of returning to the Parent funds received by the Borrower from
the Parent pursuant to the provisions of Section 4.01(a) of the Intercreditor Agreement. 
  
 (h) Payment Restrictions Affecting the Borrower and its Subsidiaries. Enter into, incur or permit to exist any agreement or other arrangement that prohibits or restricts the ability of the Borrower or any of
its Subsidiaries to (i) create, incur or permit to exist any Lien upon any of its property or assets, (ii) declare or pay any dividend or other distribution in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or
advances to, or otherwise invest in, the Borrower or any of its Subsidiaries, or (iii) transfer its property or assets to the Borrower or any of its Subsidiaries; provided that the foregoing shall not apply to restrictions and conditions
imposed by (A) Applicable Law, (B) any Financing Document, (C) the terms of any Existing Debt as in effect on the date hereof (or any Permitted Refinancing Debt incurred in connection therewith; provided that the terms thereof are no more
restrictive, taken as a whole, than the restrictions or limitations provided for in the Financing Documents), (D) any agreement in effect with respect to any Subsidiary at the time such Subsidiary becomes a Subsidiary of the Borrower, so long as
such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary of the Borrower, (E) any negative pledge incurred or provided in favor of any holder of Debt permitted under 5.02(b)(v) solely to the extent any such
negative pledge relates to the property financed by or subject of such Debt (or any Permitted Refinancing Debt incurred in connection therewith; provided that the terms thereof are no more restrictive, taken as a whole, than the restrictions
or limitations provided for in the Financing Documents), (F) any agreement for the sale or disposition of assets or property permitted under Section 5.02(e), provided that such restrictions and conditions apply only to the asset or property
that is to be sold or the proceeds thereof, (G) any trading, netting, operating, 
  

 74 

 construction, service, supply, purchase, sale or similar agreement to which the Borrower or any of its Subsidiaries is a
party, entered into in the ordinary course of business; provided that such agreement prohibits the encumbrance of solely the property or assets of the Borrower or such Subsidiary that are the subject of that agreement, the payment rights
arising thereunder and/or the proceeds thereof and not to any other asset or property of the Borrower or such Subsidiary or the assets or property of any other Subsidiary, (H) customary provisions restricting subletting or assignment of leases or
customary provisions in other agreements that restrict assignment of such agreements or rights thereunder, which restrictions, when taken as a whole, are no more restrictive than any similar restrictions in effect on the Closing Date, (I) any
negative pledge provided for in any joint venture agreements, stockholder or partnership agreements or organizational documents relating to joint ventures or partnerships, and (J) any such restrictions or limitations contained in any other agreement
(including any agreement related to the New Parent Facility) in effect on the Closing Date and any amendments, modifications, restatements, renewals or replacements thereof that are not more restrictive, taken as a whole, than the restrictions or
limitations in effect on the Closing Date. 
  
 (i) Lease
Obligations. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any obligations as lessee for the rental or hire of real or personal property in connection with any sale and
leaseback unless the sale of such property would be permitted under Section 5.02(e) and any Capitalized Lease and any Lien arising in connection therewith are permitted by Sections 5.02(a) and 5.02(b), respectively. 
  
 (j) Amendments of Constituent Documents. Amend, or permit any of its
Subsidiaries to amend, its Constituent Documents, other than such amendments as could not reasonably be expected to have a Material Adverse Effect. 
  
 (k) Accounting Changes. Make or permit, or permit any of its Subsidiaries to make or permit, any change in (i) accounting policies or reporting
practices, except as required by GAAP or if its Board of Directors otherwise decides, or (ii) Fiscal Year. 
  
 (l) Prepayments, Etc., of Debt. Prepay, redeem, purchase, defease or otherwise satisfy or make any unscheduled payment, in each case prior to the
scheduled maturity thereof in any manner, whether directly or indirectly, or make any payment in violation of any subordination terms of, any Debt, or permit any of its Subsidiaries to do any of the foregoing (other than prepay any Debt payable to
the Borrower), or amend, modify or change in any manner any material term or condition of any Debt (including the Bond Instruments and the Senior Note Indenture), other than (i) in the case of the Borrower only, for, and in connection with, the
prepayment of (A) on the Closing Date, the Existing Lender Debt and (B) Debt outstanding under this Agreement, (ii) in the case of any Subsidiary of the Borrower, prepayments of any Debt owed by such Subsidiary to the Borrower, (iii) in the case of
the Borrower and its Subsidiaries, prepayments of Debt permitted to be outstanding under Section 5.02(b)(xvii) or any other Debt which is refinanced and prepaid concurrently with the proceeds of Permitted Refinancing Debt permitted to be incurred
under Section 5.02(b) or (iv) to the extent required to effectuate any sale, transfer or other disposition of assets which is permitted under Section 5.02(e). 
  

 75 

 (m) Amendment, Etc., of Material Contracts. Cancel or terminate any Material Contract or consent
to or accept any cancellation or termination thereof, or amend, amend and restate, supplement or otherwise modify any Material Contract, or give any consent, waiver or approval thereunder, waive any default under or breach of any Material Contract
to the extent that any such cancellation, termination, amendment, amendment and restatement, supplement, modification, waiver, approval or consent to any thereof could reasonably be expected to have a Material Adverse Effect. 
  
 (n) Partnerships, Etc. Become a general partner in any general or
limited partnership or joint venture, or enter into any profit-sharing or royalty agreement or other similar arrangement or commit to a trust whereby the Borrower’s income or profits are, or might be, shared with any other Person, or enter into
any management contract or similar arrangement whereby its business or operations are managed by any other Person, other than the Tax Allocation Agreement, the PJM Interconnection Agreements or the OVEC Agreement, or permit any of its Subsidiaries
to do so, except (i) in order to enhance the tax efficiency of the Borrower and its Subsidiaries, taken as a whole; provided that (A) no Debt for Borrowed Money is incurred in connection therewith, (B) no Lien (other than any Lien in favor of
the Collateral Agent) is created, granted, incurred or assumed in connection therewith and (C) such other Person is a Loan Party and (ii) as permitted under Section 5.02(f). 
  
 (o) Speculative Transactions. Engage, or permit any of its Subsidiaries to engage, in any transaction involving
commodity options or futures contracts or any similar speculative transactions (including take-or-pay contracts, long term fixed price off-take contracts and contracts for the sale of power for which physical delivery is not available) unless the
same (i) is consistent with the policy on Corporate Energy Risk Policy (as amended from time to time) approved by the Borrower’s board of directors or (ii) has been approved in writing by the Required Lenders. 
  
 (p) Capital Expenditures. Make or become legally obligated to make any
Capital Expenditure, except for Capital Expenditures made (i) in the ordinary course of business not to exceed, in the aggregate for the Borrower and its Subsidiaries during each Fiscal Year set forth below, the amount set forth opposite such Fiscal
Year: 
  

				
	 Fiscal Year

	  	Amount

	 2004
	  	$	120,000,000
	 2005
	  	$	140,000,000
	 2006
	  	$	165,000,000
	 2007
	  	$	180,000,000
	 2008
	  	$	200,000,000
	 2009
	  	$	200,000,000
	 2010
	  	$	200,000,000
	 2011
	  	$	200,000,000

  
 provided, however, that
so long as no Event of Default has occurred and is continuing or would result from such expenditure, any portion of any amount set forth above, if not expended in the Fiscal Year for which it is permitted above, may be carried over for expenditure
in the next following Fiscal Year (and shall be deemed to be spent before the amount originally allocated to 
  

 76 

 such Fiscal Year by the foregoing table), (ii) in order to comply with Applicable Law regarding the environment or the
transmission of electricity or natural gas or (iii) any additional Capital Expenditures to those permitted pursuant to clause (i) or (ii) during the Fiscal Year ending December 31, 2004 to remedy the damage sustained by Unit No. 1 of the Pleasants
Power Station located in St. Mary’s, West Virginia as a result of the failure occurring on February 9, 2004, in an aggregate amount not to exceed $10,000,000 and. 
  
 (q) Formation of Subsidiaries. Organize or invest, or permit any Subsidiary to organize or invest, in any new
Subsidiary to the extent prohibited by Section 5.02(f) and in accordance with Section 5.01(o). 
  
 (r) Compliance with ERISA. (i) Terminate, or permit any ERISA Affiliate of the Borrower to terminate, any Plan so as to result in any liability of the Borrower or any ERISA Affiliate, which could reasonably be
expected to have a Material Adverse Effect, or (ii) permit to exist any Termination Event with respect to a Plan which could reasonably be expected to have a Material Adverse Effect to the extent such Termination Event is within the control of the
Borrower. 
  
 (s) Ranking. Take or consent to any action
that would have the effect of altering the ranking of the Senior Debt Obligations under Section 2.02 of the Security and Intercreditor Agreement. 
  
 Section 5.03 Financial Covenants of the Borrower. The Borrower agrees that, so long as any Advance shall remain unpaid or any Commitment shall
remain outstanding, the Borrower will not: 
  
 (a) Interest
Coverage Ratio. Permit the Interest Coverage Ratio at the end of any fiscal quarter to be less than the ratio set forth for such fiscal quarter below: 
  

			
	 Four Fiscal
 Quarters
Ending

	  	Ratio

	 December 31, 2004
	  	1.10:1.00
	 March 31, 2005
	  	1.25:1.00
	 June 30, 2005
	  	1.25:1.00
	 September 30, 2005
	  	1.25:1.00
	 December 31, 2005
	  	1.50:1.00
	 March 31, 2006
	  	1.60:1.00
	 June 30, 2006
	  	1.75:1.00
	 September 30, 2006
	  	2.00:1.00

  

 77 

			
	 December 31, 2006
	  	2.00:1.00
	 March 31, 2007
	  	2.00:1.00
	 June 30, 2007
	  	2.00:1.00
	 September 30, 2007
	  	2.00:1.00
	 December 31, 2007
	  	2.00:1.00
	 March 31, 2008
	  	2.20:1.00
	 June 30, 2008
	  	2.30:1.00
	 September 30, 2008
	  	2.40:1.00
	 December 31, 2008
	  	2.40:1.00
	 March 31, 2009
	  	2.40:1.00
	 June 30, 2009
	  	2.40:1.00
	 September 30, 2009
	  	2.40:1.00
	 December 31, 2009
	  	2.40:1.00
	 March 31, 2010
	  	2.40:1.00
	 June 30, 2010
	  	2.40:1.00
	 September 30, 2010
	  	2.40:1.00
	 December 31, 2010
	  	2.40:1.00

  
 (b) Leverage
Ratio. Permit the Leverage Ratio as of any fiscal quarter to be greater than the ratio set forth below for each fiscal quarter set forth below: 
  

			
	 Four Fiscal
 Quarters
Ending

	  	Ratio

	 December 31, 2004
	  	10.00:1.00
	 March 31, 2005
	  	9.75:1.00
	 June 30, 2005
	  	9.50:1.00
	 September 30, 2005
	  	9.00:1.00
	 December 31, 2005
	  	8.75:1.00
	 March 31, 2006
	  	8.00:1.00
	 June 30, 2006
	  	7.50:1.00
	 September 30, 2006
	  	7.25:1.00
	 December 31, 2006
	  	7.00:1.00
	 March 31, 2007
	  	6.75:1.00
	 June 30, 2007
	  	6.75:1.00
	 September 30, 2007
	  	6.75:1.00
	 December 31, 2007
	  	6.50:1.00
	 March 31, 2008
	  	6.25:1.00
	 June 30, 2008
	  	6.00:1.00
	 September 30, 2008
	  	5.75:1.00
	 December 31, 2008
	  	5.75:1.00
	 March 31, 2009
	  	5.75:1.00
	 June 30, 2009
	  	5.75:1.00
	 September 30, 2009
	  	5.75:1.00
	 December 31, 2009
	  	5.75:1.00
	 March 31, 2010
	  	5.75:1.00
	 June 30, 2010
	  	5.75:1.00
	 September 30, 2010
	  	5.75:1.00
	 December 31, 2010
	  	5.75:1.00

  

 78 

 Section 5.04 Reporting Covenants of the Borrower. The Borrower covenants and agrees that so long
as any Advances shall remain unpaid or any Commitment shall remain outstanding, the Borrower will furnish to the Administrative Agent and each of the Lenders (it being understood that delivery to the Administrative Agent for posting by the
Administrative Agent of each of the following items on a electronic website shall constitute delivery to each Lender by the Borrower and the Administrative Agent hereby agrees to post on an electronic website or otherwise distribute to the Lenders
any such item delivered by the Borrower to the Administrative Agent): 
  
 (a) Default Notices. As soon as possible and in any event within five Business Days after any Responsible Officer of the Borrower becomes aware of the occurrence of each Default or any event, development or occurrence reasonably
likely to have a Material Adverse Effect, in each case, continuing on the date of such statement, a statement of a Responsible Officer of the Borrower setting forth the details of such Default or event, development or occurrence and, in each case,
the actions, if any, which the Borrower has taken and proposes to take with respect thereto. 
  
 (b) Annual Financials. As soon as available and in any event within 15 days after they are required to be filed with the SEC, a copy of the annual audit report for such year for the Borrower and its
Subsidiaries including therein a Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year and Consolidated statement of income and a Consolidated statement of cash flows of the Borrower and its Subsidiaries
for such Fiscal Year, in each case accompanied by a report that is unqualified or is otherwise reasonably acceptable to the Required Lenders of PriceWaterhouseCoopers (or such other independent public accountants of recognized standing acceptable to
the Required Lenders), as filed with the SEC, together with, for each Fiscal Year other than the Fiscal Year ending in 2003, (i) a certificate of such accounting firm to the Lenders stating that in the course of the regular audit of the business of
the Borrower and its Subsidiaries, which audit was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge that a Default has occurred and is continuing, or if, in
the opinion of such accounting firm, a Default has occurred and is continuing, a statement as to the nature thereof, (ii) a schedule in form satisfactory to the Administrative Agent of the computations prepared by the Borrower and used by such
accounting firm in determining, as to the fourth quarter of such Fiscal Year, compliance with the covenants contained in Section 5.03, provided that in the event of any change in GAAP used in the preparation of such financial statements, the
Borrower shall also provide, if necessary for the determination of compliance with Section 5.03, a statement of reconciliation conforming such financial statements to GAAP as in effect as of the Closing Date) and (iii) a certificate of the Chief
Financial Officer of the Borrower stating that no Default has occurred and is continuing or, if a default has occurred and is continuing, a statement as to the nature thereof and the action that the Borrower has taken and proposes to take with
respect thereto. 
  
 (c) Quarterly Financials. As soon as
available and in any event within 60 days after the end of each of the first three quarters of each Fiscal Year, a Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such quarter and a Consolidated statement of income
and a Consolidated statement of cash flows of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such fiscal quarter, as filed with the SEC, setting forth in each case in
comparative form the corresponding figures for the corresponding date or period of the preceding Fiscal Year, all in reasonable detail and duly certified (subject to normal year-end audit adjustments) by the Chief Financial Officer of the Borrower
as having been prepared in 
  

 79 

 accordance with GAAP, together with (i) a certificate of said officer stating that no Default has occurred and is
continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Borrower has taken and proposes to take with respect thereto and (ii) a schedule in form satisfactory to the Administrative
Agent of the computations used by the Borrower in determining compliance with the covenants contained in Section 5.03, provided that in the event of any change in GAAP used in the preparation of such financial statements, the Borrower shall
also provide, if necessary for the determination of compliance with Section 5.03, a statement of reconciliation conforming such financial statements to GAAP as in effect as of the Closing Date. 
  
 (d) Budget. As soon as available, but in no event later than 30 days
after the commencement of each Fiscal Year, forecasts prepared by management of the Borrower, in form reasonably satisfactory to the Administrative Agent, of consolidated balance sheets, income statements and cash flow statements of the Borrower and
its Subsidiaries on a quarterly basis for such Fiscal Year setting forth the assumptions used for purposes of preparing the budget and promptly when available, any significant revisions to such budget. 
  
 (e) Litigation. Promptly after the commencement thereof, notice of all
actions, suits, investigations, litigation and proceedings before any Governmental Authority, domestic or foreign, affecting the Borrower or any of its Subsidiaries of the type described in Section 4.01(f), and promptly after the occurrence thereof,
notice of any change in respect of the Disclosed Litigation described on Schedule 4.01(f) which could reasonably be expected to have a Material Adverse Effect. 
  

(f) ERISA. (i) Promptly and in any event within 20 days after (A) the Borrower or any of its Subsidiaries or any ERISA Affiliate knows that any
ERISA Event has occurred, a statement of the Borrower describing such ERISA Event and (B) the date of any material correspondence between the Borrower or any of its Subsidiaries or any ERISA Affiliate and the PBGC, a copy of such material
correspondence. 
  
 (ii) Promptly and in any
event within three Business Days after receipt thereof by the Borrower or any of its Subsidiaries or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer
any Plan. 
  
 (iii) Promptly upon the written
request of the Administrative Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed with the Internal Revenue Service from time to time with respect to each Plan. 
  
 (iv) Promptly and in any event within 30 days after receipt
thereof by the Borrower or any of its Subsidiaries or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the reorganization or
termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or that may be incurred, by the Borrower or such Subsidiary or any ERISA Affiliate in connection with any event described
in clause (1) or (2). 
  

 80 

 (g) Environmental Conditions. Promptly after the assertion or occurrence thereof, notice of any
Environmental Action against or of any noncompliance by the Borrower or any of its Subsidiaries with any Environmental Law or Environmental Permit that could (i) reasonably be expected to have a Material Adverse Effect or (ii) cause any property
described in the Mortgages to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law, except where the failure to do so could reasonably be expected to have a Material Adverse Effect. 

 
 (h) Real Property. Within 45 days after the end of each fiscal
quarter, a report supplementing Schedules 4.01(p) and 4.01(q), identifying all Material Property disposed of by the Borrower or any of its Subsidiaries during such fiscal quarter, a list and description (including the street address, county or other
relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date and annual rental cost thereof) of all Material Property acquired or leased during such fiscal quarter
(“Acquired Material Property”) and a description of such other changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete in respect of such Acquired Material
Property. 
  
 (i) Insurance. As soon as available and in
any event within 30 days after the end of each Fiscal Year, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for the Borrower and its Subsidiaries and containing such additional information as any Lender
may reasonably specify. 
  
 (j) Other Information. (i) To
the extent not required to be provided pursuant to the terms of Section 5.03(j)(ii), promptly upon the mailing thereof to the shareholders of the Borrower generally, copies of all financial statements, reports and proxy statements so mailed;

  
 (ii) Promptly upon the filing thereof, copies
of all registration statements, reports or other materials (other than any Form U-1) filed by the Borrower with the Securities and Exchange Commission; 
  
 (iii) Promptly after receipt thereof by the Borrower or any of its Subsidiaries, a copy of any “management letter”
received by such Person from its certified public accountants and the management’s response thereto; 
  
 (iv) No later than one day prior to the anticipated receipt by the Borrower or any Subsidiary of the Borrower of Net Cash Proceeds from
(A) any sale or other disposition of any asset or property of the Borrower or such Subsidiary, the proceeds of which are expected to be greater than $10,000,000 individually or in the aggregate in any given Fiscal Year or (B) the issuance of any
Debt or Equity Interests, the proceeds of which are, in either case, required to be applied to prepay the Advances in accordance with Sections 2.03 and 2.05 of the Security and Intercreditor Agreement, a certificate of a Responsible Officer of the
Borrower setting forth (1) a description of the transaction giving rise to such Net Cash Proceeds, (2) the date or dates upon which such Net Cash Proceeds are anticipated to be received by the Borrower or such Subsidiary, (3) the amount of Net Cash
Proceeds anticipated to be received on such date or each of such dates (together with a schedule detailing the calculations necessary to determine the amount of Net Cash Proceeds), and (4) the amount of such Net Cash Proceeds that it is anticipated
will be applied to prepay the Advances; 
  

 81 

 (v) Promptly upon receipt thereof, copies of all notices, requests and other documents
received by the Borrower or any of its Subsidiaries under or pursuant to any Transaction Document or indenture, loan or credit or agreement in respect of any Qualifying Obligation regarding or related to any breach or default by any party thereto
that could reasonably be expected to have a Material Adverse Effect or any other event that reasonably be expected to have a Material Adverse Effect and copies of any amendment, modification or waiver of any provision of any such Transaction
Document or indenture, loan or credit or agreement; and 
  
 (vi) Such other information respecting the business or properties, or the condition or operations, financial or otherwise, of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender acting
through the Administrative Agent may from time to time reasonably request. 
  
 (k) Emissions Credits. If at any time during any Fiscal Year, the Net Cash Proceeds received from the sale, transfer or other disposition of Emissions Credits by the Borrower and its Subsidiaries for such
Fiscal Year exceeds $10,000,000, promptly but in any event within 45 days after the end of each remaining fiscal quarter for such Fiscal Year, a report summarizing each sale, transfer or other disposition of Emissions Credits during such fiscal
quarter, including the amount, a description of the consideration received and the Net Cash Proceeds (if any) received in respect of each such sale, transfer or other disposition. 
  
 ARTICLE VI 
 EVENTS OF DEFAULT; ACCELERATION; INTERCREDITOR AGREEMENTS 
  
 Section 6.01 Events of Default. Each of the following events, conditions or occurrences shall be an “Event of Default”: 
  
 (a) the Borrower or any other Loan Party fails to pay (i) when and as required to be paid herein, any amount of principal of
any Advance, or (ii) within three Business Days after the same becomes due, any interest on any Advance or any fee or other amount due hereunder or under any other Financing Document; or 
  
 (b) any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or
any other Loan Party herein, in any other Financing Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or 
  
 (c) any Loan Party fails to perform or observe any term, covenant or
agreement contained in any of Section 5.01(f), 5.01(s), 5.02 (other than 5.02(o)), 5.03 or 5.04(a), 5.04(e), 5.04(f)(i)(A), 5.04(f)(ii) or 5.04(f)(iv) of this Agreement; or 
  
 (d) any Loan Party shall fail to perform or observe any term, covenant or agreement contained in Section 5.01(j), 5.01(k),
5.01(o), 5.02(o), 5.01(p) or 5.04 (other than Section 5.04(a), 5.04(e), 5.04(f)(i)(A), 5.04(f)(ii) or 5.04(f)(iv)) and such failure shall remain 
  

 82 

 unremedied for 30 days after the date on which a Responsible Officer of the Borrower becomes aware of such failure;
provided that with respect to Section 5.04(j)(iv) no Event of Default shall have occurred as a result of the failure to deliver the notice contemplated thereby if the Borrower has made any prepayment required to be made in connection with the
related transaction or 
  
 (e) any Loan Party fails to perform or
observe any other covenant or agreement (not specified in Section 6.01(a), 6.01(c) or 6.01(d) above) contained in any Financing Document on its part to be performed or observed and such failure shall remain unremedied for 60 days after the date on
which a Responsible Officer of the Borrower becomes aware of such failure; or 
  
 (f) (i) any Loan Party or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Debt (other than Debt under
the Financing Documents or Debt which is subject to Contest) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) or
with respect to any Hedge Agreement with an Agreement Value of more than $25,000,000 either individually or in the aggregate or (B) fails to observe or perform any other agreement or condition relating to any such Debt or contained in any instrument
or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Debt (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required, (A) such Debt to be demanded, become due, be repurchased, prepaid, defeased or redeemed (automatically or otherwise), (B) an offer to repurchase, prepay, defease or
redeem such Debt to be made, prior to its stated maturity, or (C) cash collateral in respect thereof to be demanded; or (ii) there occurs under any Hedge Agreement an Early Termination Date (as defined in such Hedge Agreement) resulting from (A) any
event of default under such Hedge Agreement as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Hedge Agreement) or (B) any Termination Event (as so defined) under such Hedge Agreement as to which the Borrower or
any Subsidiary is an Affected Party (as defined in such Hedge Agreement) and, in either event, the termination value owed by the Loan Party or such Subsidiary as a result thereof is greater than $25,000,000 either individually or in the aggregate;
or 
  
 (g) any Insolvency Proceeding shall occur with respect to
the Borrower or any of its Subsidiaries; or 
  
 (h) except in
connection with the Merrill Lynch Litigation or the EPMI Litigation, there is entered against the Borrower or any of its Subsidiaries (i) a final judgment or order for the payment of money in an aggregate amount exceeding $25,000,000 either
individually or in the aggregate (to the extent not covered by independent third-party insurance by an insurer that is rated at least “A” by A.M. Best Company and such coverage is not the subject of a bona fide dispute), or
(ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in the case of (i) or (ii), (A) enforcement proceedings are commenced by any
creditor upon such judgment or order and such proceedings are not stayed within 10 days, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in
effect; or 
  

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 (i) there occurs any Change of Control; or 
  
 (j) any Collateral Document after delivery thereof shall for any reason (other than pursuant to the terms thereof) cease to
create solely for the benefit of the Secured Parties (or the enforceability thereof shall be contested by any Loan Party) (i) with respect to any portion of the Group Assets, a valid and, but for the giving of notices of Liens thereunder to Persons
other than Affiliates of the Borrower, perfected Lien on and security interest in such Collateral with the applicable priority set forth in Section 2.02 of the Security and Intercreditor Agreement and (ii) with respect to any portion of the
Springdale Assets, a valid and perfected Lien on the Springdale Assets with the applicable priority set forth in Section 2.02 of the Security and Intercreditor Agreement and, in the case of clause (i) and (ii) above relating to any invalidity or
non-perfection of any such Lien with respect to an immaterial portion of the Collateral as a result of administrative or ministerial errors, such occurrence shall remain unremedied for 60 days after the earlier of the date on which (A) a Responsible
Officer of the Borrower becomes aware of such failure or (B) written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or 
  
 (k) any material provision of any Financing Document shall be canceled, terminated, declared to be null and void or shall
otherwise cease to be valid and binding on any Loan Party that is a party thereto, in each case, as determined in a final, non-appealable judgment of a court of competent jurisdiction, or any Loan Party shall deny in writing any further liability or
obligation under any provision of any Financing Document; provided, however, that the foregoing provisions of this clause (k) shall not apply to any Financing Document that is canceled, terminated, declared to be null and void or which ceases
to be valid or binding on the Borrower in accordance with its terms or by agreement of the requisite parties thereto; or 
  
 (l) any ERISA Event shall have occurred with respect to a Plan the Borrower or any Subsidiary or any ERISA Affiliate has incurred or is reasonably
expected to incur liability as a result of or in connection with such ERISA Event in an amount exceeding, in the aggregate with any amounts applicable under clauses (m) and (n) of this Section 6.01, $25,000,000; or 
  
 (m) the Borrower or any of its Subsidiaries or any ERISA Affiliate shall have
been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Loan Parties and
the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds, in the aggregate with any amounts applicable under clauses (l) and (n) of this Section 6.01, $25,000,000, or requires payments exceeding
$25,000,000 per annum; or 
  
 (n) the Borrower or any of
its Subsidiaries or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such
reorganization or termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer Plans that are then in reorganization or being 
  

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 terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of
such Multiemployer Plans immediately preceding the plan year in which such reorganization or termination occurs by an amount exceeding, in the aggregate with any amounts applicable under clauses (l) and (m) of this Section 6.01, $25,000,000; or

  
 (o) any Loan Party shall at any time deliver or cause to be
delivered to the Collateral Agent without prior written consent of the Collateral Agent a notice pursuant to 42 Pa. C.S.A. § 8143 electing to limit the indebtedness secured by any Mortgage to which such Loan Party is a party. 
  
 Section 6.02 Actions Following an Event of Default. Each Lender hereby
agrees to give prompt notice to the Administrative Agent of the occurrence of any Event of Default of which it has knowledge. At any time after the Administrative Agent has received such a notice of an Event of Default, the Administrative Agent
shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, (a) declare all or any part of the Commitments and the obligation of the Lenders to make Advances under the Credit Agreements to be terminated,
whereupon the same shall forthwith terminate, and (b) declare all or any part of the Notes, all interest thereon and all other amounts payable under this Agreement and the Credit Agreements owing to the Lenders to be forthwith due and payable,
whereupon such Notes, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided
that upon the occurrence of any Event of Default described in Section 6.01(g) with respect to the Borrower, (A) the Commitments of each Lender shall automatically be terminated and (B) all Notes, all interest and all such amounts shall
automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. 
  
 Section 6.03 Default Interest. At such time as any Event of Default has occurred and is continuing, each Lender shall
apply the post-default interest rate provided in Section 2.07(b) of the applicable Credit Agreement to any amount due (whether in accordance with the original amortization schedule, as a result of acceleration or otherwise). 
  
 Section 6.04 Priority of Claims Following Enforcement Action. (a)
Notwithstanding anything in (i) this Agreement, the Credit Agreements, the Security and Intercreditor Agreement, any other Collateral Document or any filing made in respect of the Collateral to the contrary or (ii) the rules for determining priority
under the UCC or any other law governing the relative priorities of secured creditors, each of the Term B Lenders and the Term C Lenders hereby agrees that as between themselves, the rights and claims of any of the Term C Lenders in respect of any
of the Collateral or any Enforcement Proceeds realized therefrom shall be and hereby are subject and subordinate to the prior payment in full in cash of all Secured Obligations owing to the Term B Lenders. 
  
 (b) In furtherance of the agreement of the Term B Lenders and the Term C
Lenders set forth in Section 6.04(a), upon receipt of any Enforcement Proceeds, the Administrative Agent is hereby instructed to apply (i) to the extent such Enforcement Proceeds are received in respect of the Springdale Assets or the Springdale
Liens, in the following order of priority: 
  
 first, to the payment of the Applicable Portion of all reasonable fees, costs and expenses (including legal fees and expenses) and any other amounts payable to the Administrative Agent in connection with the Administrative
Agent’s execution and administration of its duties hereunder or under any other Financing Document to which it is a party; 
  

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 second, pro rata to the payment of Springdale Obligations owing to the Term
B Lenders; 
  
 third, pro rata to
the payment of all remaining Secured Obligations owing by any Loan Party to the Term B Lenders under or in respect of the Group Assets Facility; 
  
 fourth, pro rata to the payment of all Secured Obligations owing by any Loan Party to the Term C Lenders under or in respect
of the Term C Facility; and 
  
 fifth,
after payment in full in cash of all of the Springdale Obligations and the Secured Obligations owing to the Lenders under or in respect of the Group Assets Facility and the Term C Facility, the remainder, if any, to the Borrower, its successors or
assigns or to whomsoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction may direct; and 
  
 to the extent such Enforcement Proceeds are received in respect of the Group Assets or the Group Assets Liens in the following order of priority: 
  
 first, to the payment of the Applicable Portion of
all reasonable fees, costs and expenses (including legal fees and expenses) and any other amounts payable to the Administrative Agent in connection with the Administrative Agent’s execution and administration of its duties hereunder or under
any other Financing Document to which it is a party; 
  
 second, pro rata to the payment of all Secured Obligations owing to the Term B Lenders under or in respect of the Group Assets Facility; 
  

third, pro rata to the payment of all Secured Obligations owing to the Term C Lenders under or in respect of the Term C
Facility; and 
  
 fourth, after payment in
full in cash of all Secured Obligations owing to the Lenders under the Group Assets Facility and the Term C Facility, the remainder, if any, to the Borrower, its successors or assigns or to whomsoever may be lawfully entitled to receive the same, or
as a court of competent jurisdiction may direct. 
  
 (c) Each of
the Term C Lenders agrees that in the event that it receives any payment or distribution of Enforcement Proceeds prior to the time that all Secured Obligations owing in respect of the Group Assets Facility have been fully, finally and indefeasibly
paid in full in cash, such Term C Lender shall receive and hold the same in trust, as trustee, for the benefit of the Term B Lenders and shall forthwith deliver the same to the Administrative Agent, in precisely the form received for application to
the payment of amounts owed to the Term B Lenders, whether due or not due, and, until so delivered, the same shall be held in trust by such Term C Lender as the property of the Term B Lender. 
  

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 (d) Each of the Term C Lenders agrees that no payment or distribution of Enforcement proceeds to the Term
B Lenders pursuant to the provisions of this Section 6.04 shall entitle the Term C Lender to exercise any right of subrogation in respect thereof until the Secured Obligations owing in respect of the Group Assets Facility shall have been paid in
full in cash. 
  
 (e) The obligations and undertakings of the Term
C Lenders and the application of the Enforcement Proceeds in accordance with the terms of this Section 6.04 shall not be affected or impaired in any manner whatsoever, including, without limitation, on account of: 
  
 (i) any lack of validity or enforceability of any Financing
Document; 
  
 (ii) any change in the time, manner
or place of payment of, or in any other term of all or any of the Secured Obligations, or any amendment or waiver or other modification, whether by course of conduct or otherwise, of the terms of any of the Financing Documents; 
  
 (iii) any exchange, release or nonperfection of any security
interest in any Collateral or any release, amendment, waiver or other modification, whether in writing or by course of conduct or otherwise, of all or any of the Secured Obligations or any guarantee thereof; 
  
 (iv) the commencement of any Insolvency Proceeding in
respect of any Loan Party and the allowance or disallowance of any claim in respect of the Secured Obligations in connection with such Insolvency Proceeding (including, any claim with respect to post-petition interest); 
  
 (v) any change, restructuring or termination of the
corporate structure or existence of any Loan Party; 
  
 (vi) any failure of any of the Term B Lenders to disclose to the Term C Lenders any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any Loan Party now or
hereafter known to any such Term B Lender; or 
  
 (vii) any other circumstances (except payment or discharge in full) which otherwise might constitute a defense available to, or a discharge of, the Borrower or any other Loan Party in respect of the Secured Obligations. 
  
 (f) The Term B Lenders are making the Term B Advances in reliance upon the
undertakings of the Term C Lenders set forth in this Section 6.04. 
  
 (g) The undertakings and agreements contained in this Section 6.04 are solely for the benefit of the Term B Lenders and the Term C Lenders and there are no other parties 
  

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 (including, without limitation, the Borrower, the Loan Parties, any Senior Note Noteholder or any of their Affiliates)
who are intended to be benefited in any way by the provisions set forth in this Section 6.04 and nothing contained in this Section 6.04 is intended to affect or limit in any way the securities interest and Liens of the Lenders in, or on, any or all
of the Collateral, insofar as the Borrower, the other Loan Parties, any other Secured Party or any other Person. 
  
 ARTICLE VII 
 REMEDIES AND ENFORCEMENT 
  
 Section 7.01 Procedures Following an Event of Default. (a) At any time
after the Administrative Agent has received a notice of the occurrence of any Event of Default, the Administrative Agent shall service a notice (a “Notice of Default”) on each Lender which (i) specifies the Decision Period
within which instructions referred to in clause (iii) below are to be provided to it, (ii) describes the Event of Default, and (iii) requests instructions from the Required Lenders within such Decision Period as to (A) whether or not such Event of
Default should be waived or (B) whether any amendment should be made to one or more of the Financing Documents in order to cure or effectively waive such Event of Default, in which case: 
  
 (1) subject to Section 9.01, if the Required Lenders vote to waive such Event of Default or enter into such
an amendment, no Lender shall be entitled (I) to accelerate any of the Senior Debt Obligations owed to it or to terminate its Commitment as a consequence of the occurrence and continuance of such Event of Default or (II) to exercise or enforce, or
to instruct the Collateral Agent to exercise or enforce, any right or remedy under the Financing Documents or under Applicable Law in connection with such Event of Default; provided that nothing herein shall bar the exercise of rights or
enforcement of remedies in accordance with the Financing Documents in respect of any other Event of Default which is not expressly waived by the Required Lenders pursuant to this Section 7.01; or 
  
 (2) if the Required Lenders decide not to waive such Event
of Default or not to enter into such amendment, as the case may be, and decide to declare that such Event of Default has occurred for purposes of taking action under the Security and Intercreditor Agreement, the Required Lenders shall, acting
through the Administrative Agent, provide (I) written notice to the Administrative Agent authorizing it to deliver a notice of default (a “Notice of Bank Facility Default”) with respect to such Event of Default to the
Collateral Agent in accordance with Section 6.02(a) of the Security and Intercreditor Agreement and (II) to the extent that the Required Lenders have decided to accelerate the Advances and terminate the Commitments as a consequence of the occurrence
of such Event of Default, a written notice to the Collateral Agent and the Borrower indicating that the outstanding amount of the Advances has been so accelerated and the Commitments terminated (an “Acceleration Notice”), or

  
 (3) if, prior to the termination of the
Decision Period, the Required Lenders neither vote to waive such Event of Default or enter into such an amendment nor decide to enforce such rights and remedies, the Administrative Agent shall promptly provide written notice (a “Deadlock
Notice”) of such event to the Lenders and shall seek instructions from the Required Lenders as to whether it should deliver a Notice of Bank Facility Default or Acceleration Notice with respect to the occurrence of such Event of
Default. 
  

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 (b) If, prior to the termination of the Decision Period, the Required Lenders neither vote to waive any
Event of Default or enter into amendments of one or more of the Financing Documents nor decide to enforce such rights and remedies, then during the period (the “Waiting Period”) from the date of delivery pursuant to Section
7.01(a)(3) of any Deadlock Notice with respect to such Event of Default to the date of receipt by the Administrative Agent of instructions from the Required Lenders to deliver a Notice of Bank Facility Default, no Lender shall be entitled to (i)
exercise or enforce any right or remedy in connection with such Event of Default (including (A) any acceleration of the Senior Debt Obligations owed to it or the termination of its Commitment and (B) the remedies specified in Article VI of the
Security and Intercreditor Agreement); or (ii) instruct the Collateral Agent to exercise or enforce any right or remedy against or in respect of the Collateral or otherwise in connection with such Event of Default); provided that nothing
contained herein shall limit the rights of the Required Lenders to instruct in writing the Collateral Agent to make, or to immediately cease making, any applications from any Pledged Accounts, or the obligation of the Collateral Agent to comply with
such instructions, in each case to the extent consistent with the Financing Documents. 
  
 (c) With respect to any applicable Event of Default, the Waiting Period shall automatically end, and a Notice of Bank Facility Default shall be effective, upon the agreement of the Required Lenders. 
  
 (d) Nothing in Section 7.01(b) shall be construed to restrict the right of
the Required Lenders, at any time prior to the end of the Waiting Period or thereafter, to elect to waive any Event of Default or, subject to Section 9.01, agree to any amendment of one or more of the Financing Documents in order to cure such Event
of Default in accordance with Section 7.01(c) and the terms of the Security and Intercreditor Agreement. 
  
 (e) In the event that an Acceleration Notice has been authorized by the Required Lenders, each Lender shall terminate its Commitments and accelerate its
Advances at any time on or after the Business Day following delivery of such Acceleration Notice to the Collateral Agent. 
  
 ARTICLE VIII 
 THE AGENTS

  
 Section 8.01 Authorization and Action. (a) Each
Lender hereby appoints and authorizes the Administrative Agent to (i) take such action as agent on its behalf and to exercise such powers and discretion under this Agreement, the Credit Agreements and the other Financing Documents as are delegated
to the Administrative Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto and (ii) enter into an Accession Agreement in respect of the Security and Intercreditor Agreement on behalf of
the Lenders and to take such other actions under the Security and Intercreditor Agreement on behalf of the Lenders as provided therein. As to any matters not expressly provided for by the Financing Documents (including enforcement or collection of
the Notes), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall 
  

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 be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon
the instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and all holders of Notes; provided, however, that the Administrative Agent shall not be required to take any action that exposes the
Administrative Agent to personal liability or that is contrary to this Agreement or applicable law. The Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower or any other Person pursuant to the
terms of this Agreement or any other Financing Document. 
  
 (b)
Each Lender hereby appoints and authorizes each of the Collateral Agent and the Intercreditor Agent to take such action as agent on its behalf in accordance with the provisions of Article VII of the Security and Intercreditor Agreement and agrees to
be bound by the provisions of Section 7.17 of the Security and Intercreditor Agreement. 
  
 Section 8.02 Reliance. Neither any Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with the
Financing Documents, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing: (a) the Administrative Agent may treat the payee of any Note as the holder thereof until the
Administrative Agent receives and accepts an Assignment and Acceptance entered into by the Lender that is the payee of such Note, as assignor, and an Eligible Assignee, as assignee, as provided in Section 8.07 of each Credit Agreement; (b) each
Agent may consult with legal counsel (including counsel for any Loan Party), independent public accountants and other experts selected in good faith by it and shall not be liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) each Agent makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or
oral) made in or in connection with the Financing Documents; (d) each Agent shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any Financing Document on the part of
any Loan Party or to inspect the property (including the books and records) of any Loan Party; (e) each Agent shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or
the perfection or priority of any lien or security interest created or purported to be created under or in connection with, any Financing Document or any other instrument or document furnished pursuant thereto; and (f) each Agent shall incur no
liability under or in respect of any Financing Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telegram, telecopy or telex) reasonably believed by it to be genuine and signed or sent by the
proper party or parties. 
  
 Section 8.03 BofA, BAS, CNAI,
CGMI, Citibank, CSFB, Scotia and JPMC and Affiliates. With respect to its Commitments, the Advances made by it and the Notes issued to it, BofA, BAS, CNAI, CGMI, Citibank, CSFB, Scotia and JPMC shall have the same rights and powers under the
Financing Documents as any other Lender and may exercise the same as though it were not an Agent or Arranger Party; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include BofA, BAS,
CNAI, CGMI, Citibank, CSFB, Scotia and JPMC in its individual capacity. BofA, BAS, CNAI, CGMI, Citibank, CSFB, Scotia and JPMC and their respective affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of 
  

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 business with, the Borrower or any of its Subsidiaries, the Parent, any of its Subsidiaries and any Person that may do
business with or own securities of the Borrower or any of its Subsidiaries, the Parent, or any such Subsidiary, all as if BofA, BAS, CNAI, CGMI, Citibank, CSFB, Scotia and JPMC were not an Agent or Arranger Party and without any duty to account
therefor to the Lenders. 
  
 Section 8.04 Lender Credit
Decision. Each Lender acknowledges that it has, independently and without reliance upon any Agent or any other Lender and based on the financial statements referred to in Sections 3.01 and 5.04 and such other documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement and the other Financing Documents to which it is a party. Each Lender also acknowledges that it will, independently and without reliance upon any Agent or any
other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Financing Documents to which it is a
party. 
  
 Section 8.05 Indemnification. (a) Each Lender
severally agrees to indemnify the Agents and the Arranger Parties (in each case to the extent not promptly reimbursed by the Borrower) from and against such Lender’s ratable share (determined as provided below) of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against any Agent or any Arranger Party, as the case may be, in
any way relating to or arising out of the Financing Documents or any action taken or omitted by any Agent or any Arranger Party under the Financing Documents (collectively, the “Indemnified Costs”); provided that no
Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting directly and primarily from such Agent’s or such Arranger Party’s
gross negligence or willful misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse each Agent and each Arranger Party promptly upon demand
for its ratable share of any costs and expenses (including fees and expenses of counsel) payable by the Borrower under Section 9.04, to the extent that such Agent or such Arranger Party is not promptly reimbursed for such costs and expenses by the
Borrower. In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 8.05 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person. 

 
 (b) For purposes of this Section 8.05, the Lenders’ respective
ratable shares of any amount shall be determined, at any time, according to the principal amount of the Advances outstanding at such time and owing to the Lenders (or, prior to the date of the initial Borrowings, their respective Commitments). The
failure of any Lender to reimburse any Agent or any Arranger Party promptly upon demand for its ratable share of any amount required to be paid by the Lenders to such Agent or such Arranger Party as provided herein shall not relieve any other Lender
of its obligation hereunder to reimburse such Agent or such Arranger Party for its ratable share of such amount, but no Lender shall be responsible for the failure of any other Lender to reimburse such Agent or such Arranger Party for such other
Lender’s ratable share of such amount. Without prejudice to the survival of any other agreement of any Lender hereunder, the agreement and obligations of each Lender contained in this Section 8.05 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the other Financing Documents. 
  

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 Section 8.06 Successor Administrative Agent. The Administrative Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation
or the Required Lenders’ removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent, which shall be a commercial bank organized under the laws of
the United States or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative
Agent shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under the
Financing Documents. After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent shall have become effective, the provisions of this Article VII shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under the Financing Documents. 
  
 Section 8.07 Liability. No Agent shall be liable for any error of judgment or for any act done or omitted to be done by it in good faith or for any mistake of fact or law, or for anything it may do or refrain
from doing, except to the extent that any such liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted directly and primarily from its gross negligence or willful misconduct. 
  
 Section 8.08 Compensation of Agents. Each Agent shall be entitled to
reasonable compensation as may be agreed from time to time between the Borrower and such Agent, for all services rendered under this Agreement and the other Financing Documents to which it is a party and such compensation, together with
reimbursement of such Agent in its individual capacity (and its agency capacity) for its advances, disbursements and reasonable expenses in connection with the performance of the trust and activities provided for herein (including the reasonable
fees and expenses of its agents and of counsel, accountants and other experts), shall be paid in full by the Borrower promptly following demand from such Agent, from time to time as services are rendered and expenses are incurred. All such payments
made by the Borrower to any Agent, shall be made free and clear of all present and future income, stamp or other taxes, levies and withholdings imposed, assessed, levied or collected by the government of the United States of America or any political
subdivision or taxing authority thereof. Except as otherwise expressly provided herein, no Lender shall have any liability for any fees, expenses or disbursements of any Agent. Upon its resignation or removal, each Agent shall be entitled to the
prompt payment by the Borrower of its compensation and indemnification for the services rendered under this Agreement and the other Financing Documents to which it is a party, and to reimbursement of all reasonable out-of-pocket expenses up to the
date of resignation or removal (including the reasonable fees and expenses of counsel, if any) incurred in 
  

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 connection with the performance of such services. The agreements in this Section 8.08 shall survive any resignation or
removal of any Agent and the termination of the other provisions of this Agreement. 
  
 Section 8.09 Exculpatory Provisions. No Agent makes any representation as to the value or condition of the security interests created under the Collateral Documents or any part thereof, or as to the title of
any Loan Party or as to the rights and interests granted or the security afforded by this Agreement or any other Financing Document, or as to the validity, execution (except by itself), enforceability, legality or sufficiency of this Agreement, any
other Financing Document or the Obligations secured under the Collateral Documents, and no Agent (in its individual and agency capacities) shall incur any liability or responsibility in respect of any such matters. 
  
 Section 8.10 Treatment of Lenders. Each of the Agents may treat the
Lenders as the holders of Senior Debt Obligations and as the absolute owners thereof for all purposes under this Agreement and the other Financing Documents unless such Agent shall receive notice to the contrary from such Lender or the
Administrative Agent. 
  
 Section 8.11 Miscellaneous. (a)
Instructions. The Administrative Agent shall have the right at any time to seek instructions concerning the administration of its duties and obligations hereunder or any other Financing Documents from the Lenders or any court of competent
jurisdiction. In the event there is any disagreement between the other parties to this Agreement and the terms of this Agreement or any other applicable Financing Document do not unambiguously mandate the action any Agent is to take or not to take
in connection therewith under the circumstances then existing, or any Agent is in doubt as to what action it is required to take or not to take, (i) such Agent (if it is not the Administrative Agent) shall be entitled to refrain from taking any
action until directed otherwise in writing by a request signed jointly by the Required Lenders or by order of a court of competent jurisdiction, and (ii) if such Agent is the Administrative Agent (other than with respect to Section 7.01), it shall
be entitled to refrain from taking any action until directed otherwise in writing by a request signed jointly by the Required Lenders or by order of a court of competent jurisdiction. 
  
 (b) No Obligation. None of the provisions of this Agreement or the other Financing Documents shall be construed to
require any Agent to expend or risk its own funds or otherwise to incur any personal financial liability in the performance of any of its duties hereunder or thereunder. No Agent shall be under any obligation to exercise any of the rights or powers
vested in it by this Agreement or the other Financing Documents, at the request or direction of the Borrower, any other Loan Party or any other Agent or any Lender, (i) if any action it has been requested or directed to take would be contrary to
Applicable Law, or (ii) unless such Agent shall have been offered security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction (including
interest thereon from the time incurred until reimbursed). 
  
 Section 8.12 Arranger Parties. Except as set forth in Section 7.03 of the Term B Credit Agreement, Section 7.03 of the Term C Credit Agreement and Section 9.11 of this Agreement, none of the Lenders or other Persons identified on the
facing page or signature pages of this Agreement as a “joint lead arranger”, “lead arranger”, “joint book runner”, “book 
  

 93 

 runner”, “syndication agent”, “documentation agent” or
“co-documentation agent” shall have any right, power, obligation, liability, responsibility or duty under this Agreement or any other Financing Document other than, in the case of such Lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the
Lenders or other Persons so identified in deciding to enter into this Agreement or in taking action hereunder. 
  
 ARTICLE IX 
 MISCELLANEOUS 
  
 Section 9.01 Amendments, No Waiver. (a) No amendment or waiver of any
provision of this Agreement, nor consent to any departure by any Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed by the Required Lenders and, in the case of an amendment only, the Loan Parties,
and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that no amendment, waiver or consent shall, unless in writing and signed by: (i) all of the
Lenders, at any time (A) amend (1) this Section 9.01, (2) the term “Required Lenders” or “Required Term B Lenders” or (3) any other provision or definition of this Agreement relating to the percentage of consents
required for any amendment, waiver or consent under this Agreement, (B) waive any condition set forth in Section 3.01, or (C) release all or a substantial portion of, or impair the priority of or the perfection of the security interest on, the
Collateral; and (ii) all of the Lenders affected thereby, at any time (A postpone any date scheduled for any payment required to be made hereunder or under the Security and Intercreditor Agreement, (B) alter any provision of this Agreement requiring
the pro rata sharing of payments among the Lenders, (C) change the order of application of any prepayments of Advances from the application thereof contemplated by Section 2.04 of this Agreement or Section 2.05 of the Security and
Intercreditor Agreement, (D) amend or waive any provision of Section 6.04, and (E) limit the liability of the Borrower hereunder or under any of the Notes; provided further that that no amendment, waiver or consent shall, (i) unless in
writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement or the other Financing Documents, (ii) unless in writing and
signed by the Collateral Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Collateral Agent under this Agreement or the other Financing Documents, or (iii) unless in writing and signed by the
Intercreditor Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Intercreditor Agent under this Agreement or the other Financing Documents. 
  
 (b) (i) The Administrative Agent shall not enter into any amendment or waiver
of any provision of the Security and Intercreditor Agreement or any other Collateral Document, nor consent to any departure by any Loan Party party thereto therefrom, other than (A) the SIA Amendment, as to which each of the Lenders hereby
authorizes the Administrative Agent to execute on the Closing Date on its behalf, (B) to the extent that any such amendment, waiver or consent would (1) amend any provision or definition of the Security and Intercreditor Agreement or other
Collateral Document relating to the percentage of consents required for any amendment, waiver or consent under the Security and Intercreditor Agreement or such other Collateral Document, as the case may be, (2) release all or a substantial portion
of, or impair the 
  

 94 

 priority of or the perfection of the security interest in the Collateral, or (3) limit the liability of any Loan Party
under the Security and Intercreditor Agreement or any other Collateral Document, other than with the written consent of each Lender, (C) to the extent that any such amendment, waiver or consent would (1) alter any provision relating to the
allocation or ratable sharing of any payments to be made under the Security and Intercreditor Agreement or any other Collateral Document or (2) change the order of application of prepayment of Advances from the application thereof contemplated by
Section 2.05 of the Security and Intercreditor Agreement, other than with the written consent of each Lender affected thereby, or (D) any amendment, waiver or consent as to any matter not contemplated by clauses (A), (B) or (C), with the written
consent of the Required Lenders and (ii) each Lender hereby agrees and acknowledges for the benefit of each other Lender that notwithstanding anything to the contrary in any Financing Document, its consent to any amendment, modification or waiver of
any provision of the Security and Intercreditor Agreement or any other Collateral Document or any consent to any departure thereform by any Loan Party party thereto is conditioned on the Administrative Agent’s receipt of the requisite consents
set forth in the foregoing clause (i). 
  
 (c) Except as otherwise
specifically provided in this Agreement or any other Financing Document, the Lenders may amend, modify, terminate, change or waive, or consent or agree to any amendment, modification, termination, change or waiver of, any provision of any other
Financing Document to which they are a party in accordance with the terms thereof. 
  
 Section 9.02 Notices, Etc. (a) Notices and other communications provided for hereunder or under the Credit Agreements shall be either (i) in writing (including telecopier, telegraphic or telex communication)
and mailed, telecopied or otherwise delivered or (ii) as and to the extent set forth in Section 9.02(b) and in the proviso to this Section 9.02(a), if to the Borrower or any other Loan Party, at its address at Allegheny Energy Supply Company, LLC,
800 Cabin Hill Drive, Greensburg, PA 15601, Fax: (724) 830-5151, Attention: General Counsel and Chief Financial Officer; if to any Lender, to the address specified in the applicable Credit Agreement; and if to the Administrative Agent, at its
address at Two Penns Way, New Castle, DE 19720; Attention: Bank Loan Syndications Department; or, as to the Borrower or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties
and, as to each other party, at such other address as shall be designated by such party in a written notice to the Borrower and the Administrative Agent, provided that materials required to be delivered pursuant to Section 5.04 shall be
delivered to the Administrative Agent as specified in Section 9.02(b) or as otherwise specified to the Borrower by the Administrative Agent. All such notices and communications shall, when mailed, telecopied, telegraphed or e-mailed, be effective
when deposited in the mails, telecopied, delivered to the telegraph company or confirmed by e-mail, respectively, except that notices and communications to the Administrative Agent pursuant to Article II, III or VII shall not be effective until
received by the Administrative Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement, the Credit Agreements or the Notes or of any Exhibit hereto or thereto to be executed and
delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 
  
 (b) The Borrower hereby agrees that it will provide to it all information, documents and other materials that it is obligated to furnish to it pursuant to the Financing Documents, including, without limitation, all
notices, requests, financial statements, financial 
  

 95 

 and other reports, certificates and other information materials, but excluding any such communication that (i) relates to
the payment of any principal or other amount due under the Credit Agreements prior to the scheduled date therefor, (ii) provides notice of any Default or Event of Default or (iii) is required to be delivered to satisfy any condition precedent to the
effectiveness of this Agreement, the Credit Agreements and/or any borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by
transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to oploanswebadmin@citigroup.com. In addition, the Borrower agrees to continue to provide the Communications to the Administrative Agent
in the manner specified in the Financing Documents but only to the extent requested by the Administrative Agent. 
  
 (c) The Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications on
Intralinks or a substantially similar electronic transmission system (the “Platform”). 
  
 (d) THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR
COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE
ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER OR ANY OTHER
PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE
ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM
SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 
  
 (e) The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes
of the Financing Documents. Each Lender agrees that receipt of notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such
Lender for purposes of the Financing Documents. Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent
by electronic transmission and that the foregoing notice may be sent to such e-mail address. 
  

 96 

 (f) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice
or other communication pursuant to any Financing Document in any other manner specified in such Financing Document. 
  
 Section 9.03 No Waiver, Remedies. No failure by any Lender or any Agent to exercise, and no delay by any such Person in exercising any right,
remedy, power or privilege hereunder or under any other Financing Document shall operate as a waiver thereof nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under any other Financing Document preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided herein and in the other Financing Documents are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law. 
  
 Section 9.04
Indemnity and Expenses. (a) The Borrower agrees to pay within 30 days (or earlier if, and to the extent, required under Article III) after the presentation of an invoice all reasonable third-party costs and expenses of (i) the Agents in
connection with the administration of this Agreement and the other Financing Documents and the transactions contemplated hereby and thereby (but without duplication of such obligation under any other Financing Document) and (ii) the Agents and the
Arranger Parties in connection with the preparation, negotiation, execution and delivery of this Agreement, the Credit Agreements, the Notes, the other Financing Documents and the other documents to be delivered hereunder or thereunder, including
(A) all due diligence, syndication (including printing, distribution and bank meetings), transportation, computer, duplication, appraisal, consultant, audit expenses and, where appropriate, registration of all Financing Documents and (B) the
reasonable fees and expenses of counsel for the Agents. The Borrower further agrees to pay on demand all costs and expenses of each Agent, each Arranger Party and each Lender, if any (including reasonable counsel fees and expenses), in connection
with (1) the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement, the Credit Agreements, the Notes, the other Financing Documents and the other documents to be delivered hereunder or thereunder, including
reasonable fees and expenses of counsel for each Agent, each Arranger Party and each Lender; (2) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of any Loan Party, (3)
the exercise or enforcement of any of the rights of any Agent, Arranger Party or Lender under any Financing Document; (4) the failure by such Loan Party to perform or observe any of the provisions hereof; and (5) any amendments, modifications,
waivers or consents required or requested under the Financing Documents. 
  
 (b) Each Loan Party agrees to indemnify and hold harmless each Agent, each Arranger Party and each Lender and each of its Affiliates and their respective officers, directors, employees, agents, trustees, attorneys and
advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or by reason of (including in connection with any investigation, litigation or proceeding or preparation of a defense in connection 
  

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 therewith) or relating to (i) execution, amendment or administration of this Agreement, the other Financing Documents,
any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances, or (ii) the actual or alleged presence of Hazardous Materials requiring remediation or other response pursuant to Environmental Law
on any property of the Borrower or any of its Subsidiaries or any Environmental Action relating in any way to the Borrower or any of its Subsidiaries, except to the extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted directly and primarily from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which
the indemnity in this Section 9.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by the Borrower, its directors, equityholders or creditors or an Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated. Each Loan Party agrees not to assert any claim against the Administrative Agent, any Lender or any of
their Affiliates, or any of their respective officers, directors, employees, agents, attorneys and advisors, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Facilities,
the actual or proposed use of the proceeds of the Advances, the Financing Documents or any of the transactions contemplated by the Financing Documents. 
  
 (c) The indemnities provided by each Loan Party pursuant to this Agreement shall survive the expiration, cancellation, termination or modification of this
Agreement or the other Financing Documents, the resignation or removal of an Agent, and the provision of any subsequent or additional indemnity by any person. 
  

(d) If any Loan Party fails to pay when due any costs, expenses or other amounts payable by it under any Financing Document, including fees and
expenses of counsel and indemnities, such amount may be paid on behalf of such Loan Party by the Administrative Agent or any Lender, in its sole discretion. 
  
 Section 9.05 Right of Set-off. Upon (a) the occurrence and during the continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.02 to authorize the Administrative Agent to declare the Notes due and payable pursuant to the provisions of Section 6.02, the Administrative Agent and each Lender and each of their respective Affiliates
is hereby authorized at any time and from time to time, to the fullest extent permitted by law (including PUHCA), to set off and otherwise apply any and all deposits (general or special, time or demand, provisional or final), other than any Pledged
Account or the Controlled Accounts, at any time held and other indebtedness at any time owing by the Administrative Agent, such Lender or such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations of
the Borrower now or hereafter existing under the Financing Documents, irrespective of whether the Administrative Agent or such Lender shall have made any demand under this Agreement or such Note or Notes and although such Obligations may be
unmatured. The Administrative Agent and each Lender agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity of such set-off
and application. The rights of the Administrative Agent and each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of set-off) that the Administrative Agent, such Lender
and their respective Affiliates may have. 
  

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 Section 9.06 Binding Effect. This Agreement shall become effective at such time as it shall have
been executed by the Borrower and the Administrative Agent and the Administrative Agent shall have been notified by each Lender that such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 

 
 Section 9.07 Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery
of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 Section 9.08 Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any of the other Financing Documents to which it is a party, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in any such New York State court or, to the fullest extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding
relating to this Agreement or any of the other Financing Documents in the courts of any jurisdiction. 
  
 (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of the other Financing Documents to which it is a party in any New York State or Federal court. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 Section 9.09 Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the
laws of the State of New York. 
  
 Section 9.10 Waiver of Jury
Trial. Each of the Borrower, the Administrative Agent and the Lenders irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the
Financing Documents, the Advances or the actions of the Administrative Agent or any Lender in the negotiation, administration, performance or enforcement thereof. 
  

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 Section 9.11 Confidentiality. (a) Neither any Agent, any Arranger Party nor any Lender may,
without the prior written consent of the Borrower, disclose to any Person (i) any confidential, proprietary or non-public information of the Borrower furnished to the Agents, the Arranger Parties or the Lenders by the Borrower (such information
being referred to collectively herein as the “Confidential Information”) or (ii) the fact that the Confidential Information has been made available or any of the terms, conditions or other facts with respect to the
Confidential Information, in each case except as permitted by Section 8.07 of each Credit Agreement or this Section 9.11 and except that each of the Agents, each of the Arranger Parties and each of the Lenders may disclose Confidential Information
(i) to its and its Affiliates’ employees, officers, directors, agents and advisors (collectively, “Representatives”) who need to know the Confidential Information for the purpose of administering or enforcing its rights
under this Agreement and the other Financing Documents and the transactions contemplated hereby and thereby or for the discharge of their duties (it being understood that the Representatives to whom such disclosure is made will be informed of the
confidential nature of such Confidential Information and instructed to keep such Confidential Information confidential on substantially the same terms as provided herein), (ii) to the extent requested by any regulatory authority having jurisdiction
over it or to the extent necessary for purposes of enforcing this Agreement or any other Financing Document, (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this
Agreement, (v) in connection with the exercise of any remedies hereunder or under any other Financing Document or any suit, action or proceeding relating to this Agreement or any other Financing Document or the enforcement of rights hereunder or
thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 9.11, to any pledgee or assignee of or participant in, or any prospective assignee or pledgee of or participant in, any of its rights or
obligations under this Agreement including, in the case of any securitization or collateralization of, or other similar transaction relating to, its Commitments by any Lender, disclosure to any necessary Person in connection with such
securitization, collateralization or other transaction (including any funding vehicle organized to undertake or effectuate such securitization, collateralization or other transaction, its lenders, sureties, reinsurers, swap counterparties,
guarantors or credit liquidity enhancers, their respective directors, officers, and advisors, and any rating agency) so long as the Persons to whom such disclosure is made will be informed of the confidential nature of such Confidential Information
and such Persons have agreed in writing (or with respect to any rating agency, in writing or otherwise) to keep such Confidential Information confidential on substantially the same terms as provided herein, (vii) to the extent such Confidential
Information (A) is or becomes generally available to the public on a non-confidential basis other than as a result of a breach of this Section 9.11 by such Agent, such Arranger Party or such Lender, or (B) is or becomes available to such Agent, such
Arranger Party or such Lender on a nonconfidential basis from a source other than the Borrower and (viii) with the consent of the Borrower. 
  
 (b) Neither any Agent, any Arranger Party nor any Lender shall, without the prior written consent of the Borrower, use, either directly or indirectly, any
of the Confidential Information except in connection with this Agreement and the other Financing Documents and the transactions contemplated hereby and thereby. 
  

 100 

 (c) Notwithstanding the foregoing, any of the parties hereto may disclose to any and all persons, without
limitation of any kind, the U.S. tax treatment and U.S. tax structure of the transactions contemplated by this Agreement and the other Financing Documents and all materials of any kind (including opinions or other tax analyses) that are provided to
such parties relating to such U.S. tax treatment and U.S. tax structure. 
  
 (d) In the event that any Agent, any Arranger Party or any Lender becomes legally compelled to disclose any of the Confidential Information otherwise than as contemplated by Section 9.11(a), such Agent, such Arranger
Party or such Lender shall provide the Borrower with notice of such event promptly upon its obtaining knowledge thereof (provided that it is not otherwise prohibited by Applicable Law from giving such notice) so that the Borrower may seek a
protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained, such Agent, such Arranger Party or such Lender shall furnish only that portion of the Confidential Information that it is legally
required to furnish and shall cooperate with the Borrower’s counsel to enable the Borrower to obtain a protective order or other reliable assurance that confidential treatment will be accorded the Confidential Information. 
  
 (e) In the event of any breach of this Section 9.11, the Borrower shall be
entitled to equitable relief (including injunction and specific performance) in addition to all other remedies available to it at law or in equity. 
  
 (f) Neither any Agent, any Arranger Party nor any Lender shall make any public announcement, advertisement, statement or communication regarding the
Borrower, its Affiliates (insofar as such announcement, advertisement, statement or communication relates to the Borrower or the transactions contemplated hereby) or this Agreement or the transactions contemplated hereby without the prior consent of
the Borrower (such consent not to be unreasonably withheld or delayed). 
  
 (g) The obligations of each Agent, each Arranger Party and each Lender under this Section 9.11 shall survive for a period of one year following the termination or expiration of this Agreement. 
  
 Section 9.12 Benefits of Agreement. Nothing in this Agreement or any
other Financing Document, express or implied, shall give to any Person, other than the parties hereto, each Indemnified Party and each of their successors and permitted assigns under this Agreement or any other Financing Document, any benefit or any
legal or equitable right or remedy under this Agreement; provided that each Indemnified Party and its successors and assigns shall not have any benefit or any legal or equitable right or remedy under this Agreement other than as provided by
Section 9.04(b). 
  
 Section 9.13 Severability. If any
provision of this Agreement shall be invalid, illegal or unenforceable, then to the extent permitted by law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 9.14 Limitations. (a) The obligations, liabilities or
responsibilities of any party hereunder shall be limited to those obligations, liabilities or responsibilities expressly set forth and attributed to such party pursuant to this Agreement or otherwise applicable under Applicable Law. 
  

 101 

 (b) In no event shall any Indemnified Party be liable for, and each Loan Party hereby agrees not to
assert any claim against any Indemnified Party, on any theory of liability, for consequential, incidental, indirect, punitive or special damages arising out of or otherwise relating to the Notes, this Agreement, the other Financing Documents, any of
the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances.. 
  
 Section 9.15 Survival. Notwithstanding anything in this Agreement to the contrary, Sections 8.05, 8.08, 8.12, 9.04, 9.08, 9.09, 9.10 and 9.15 shall
survive any termination of this Agreement. In addition, each representation and warranty made or deemed to be made hereunder shall survive the making of such representation and warranty, and no Lender shall be deemed to have waived, by reason of
making any Advance or making any payment pursuant thereto, any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding that such Lender may have had notice or knowledge or reason
to believe that such representation or warranty was false or misleading at the time such Advance was made. 
  
 Section 9.16 USA Patriot Act Notice. Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the
Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. 
  

 102 

 IN WITNESS WHEREOF, each party hereto has caused this Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

			
	 ALLEGHENY ENERGY SUPPLY
 COMPANY, LLC, as Borrower

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

	
	 ALLEGHENY ENERGY SUPPLY
 CAPITAL, LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

	
	 ALLEGHENY ENERGY SUPPLY
 DEVELOPMENT SERVICES, LLC, as
 Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

			
	 ALLEGHENY ENERGY SUPPLY
 GLEASON GENERATING FACILITY,
 LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

	
	 ALLEGHENY ENERGY SUPPLY
 LINCOLN GENERATING FACILITY,
 LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

	
	 ALLEGHENY ENERGY SUPPLY
 WHEATLAND GENERATING
 FACILITY, LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

	
	 ACADIA BAY ENERGY COMPANY,
 LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder

	 Title:
	 	 Treasurer

			
	 BUCHANAN ENERGY COMPANY
 OF VIRGINIA, LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder        

	 Title:
	 	 Treasurer

	
	 LAKE ACQUISITION COMPANY,
 L.L.C., as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder        

	 Title:
	 	 Treasurer

	
	 ALLEGHENY TRADING FINANCE
 COMPANY LLC, as Loan Party

		
	 By:
	 	 /s/    Regis F. Binder        

	 Title:
	 	 Treasurer

			
	 CITICORP NORTH AMERICA, INC.,
 as Term B Lender, Term C Lender, and
 Administrative Agent

		
	 By:
	 	 /s/    Authorised Signatory

	 Title:
	 	 VP

			
	 CITIBANK, N.A., as Collateral Agent

		
	 By:
	 	 /s/    Authorized Signatory

	 Title:
	 	 Assistant Vice President

			
	 CITIBANK, N.A., as Intercreditor Agent

		
	 By:
	 	 /s/    Robert J. Harrity, Jr.

	 Title:
	 	 Managing DirectorAmended and Restated Security and Intercreditor Agreement

 EXHIBIT 10.2 
  

  
 AMENDED AND RESTATED SECURITY AND INTERCREDITOR AGREEMENT 
  
 AMONG 
  
 ALLEGHENY ENERGY SUPPLY
COMPANY, LLC, 
  
 THE OTHER PERSONS REFERRED TO HEREIN AS GRANTORS,

  
 CITICORP NORTH AMERICA, INC., 
  
 as Administrative Agent, 
  
 LAW DEBENTURE TRUST COMPANY OF NEW YORK, 
  
 as Indenture Trustee, 
  
 AND 
  
 CITIBANK, N.A., 
  
 as Collateral Agent, Intercreditor Agent and Depository Bank, 
  
 dated as of February 21, 2003 
  
 as amended and restated in its entirety on March 8, 2004 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 	  	ARTICLE I	  	 
	 	  	DEFINITIONS AND INTERPRETATION	  	 
			
	 Section 1.01
	  	Definitions	  	2
			
	 Section 1.02
	  	Principles of Interpretation	  	2
			
	 	  	ARTICLE II	  	 
	 	  	SECURED OBLIGATIONS AND PREPAYMENTS	  	 
			
	 Section 2.01
	  	Recalculation	  	4
			
	 Section 2.02
	  	Secured Obligations	  	5
			
	 Section 2.03
	  	Mandatory Prepayments	  	6
			
	 Section 2.04
	  	Voluntary Prepayments	  	7
			
	 Section 2.05
	  	Prepayments Generally	  	7
			
	 Section 2.06
	  	Application of Proceeds in Certain Instances	  	11
			
	 Section 2.07
	  	Payments	  	11
			
	 Section 2.08
	  	Amounts Not Subject to Sharing	  	11
			
	 Section 2.09
	  	Payments Received by Any Other Creditor Party	  	12
			
	 Section 2.10
	  	Presumption Regarding Payments	  	12
			
	 Section 2.11
	  	No Separate Security	  	13
			
	 Section 2.12
	  	Priority of Liens	  	13
			
	 Section 2.13
	  	Additional Secured Debt	  	13
			
	 	  	ARTICLE III	  	 
	 	  	REPRESENTATIONS AND WARRANTIES	  	 
			
	 Section 3.01
	  	Representations and Warranties of the Grantors	  	14
			
	 	  	ARTICLE IV	  	 
	 	  	RECOVERY EVENT PROCEEDS ACCOUNTS	  	 
			
	 Section 4.01
	  	Creation of Recovery Event Proceeds Account	  	16

					
	 Section 4.02
	  	Recovery Account	  	17
			
	 Section 4.03
	  	[INTENTIONALLY OMITTED]	  	17
			
	 Section 4.04
	  	[INTENTIONALLY OMITTED]	  	17
			
	 Section 4.05
	  	Payments in Trust	  	17
			
	 Section 4.06
	  	Investment of Funds in Recovery Event Proceeds Account	  	17
			
	 Section 4.07
	  	Transfers from Recovery Event Proceeds Account During the Continuance of a Facility Event of Default	  	19
			
	 Section 4.08
	  	Reports, Certifications and Instructions	  	19
			
	 Section 4.09
	  	Depository Bank Undertakings	  	20
			
	 Section 4.10
	  	Controlled Accounts	  	22
			
	 Section 4.11
	  	Force Majeure	  	23
			
	 Section 4.12
	  	Clearing Agency	  	23
			
	 Section 4.13
	  	Return of Funds	  	23
			
	 Section 4.14
	  	Application of Recovery Event Proceeds	  	24
			
	 	  	ARTICLE V	  	 
	 	  	SECURITY INTERESTS	  	 
			
	 Section 5.01
	  	Grant of Security	  	25
			
	 Section 5.02
	  	Security for Obligations	  	29
			
	 Section 5.03
	  	Delivery and Control of Security Collateral and Account Collateral	  	30
			
	 Section 5.04
	  	Further Assurances; Etc.	  	30
			
	 Section 5.05
	  	As to the Assigned Agreements	  	33
			
	 Section 5.06
	  	Grantors Remain Liable	  	33
			
	 Section 5.07
	  	Additional Equity Interests	  	34
			
	 Section 5.08
	  	Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit Rights and Giving Notice of Commercial Tort Claims	  	34
			
	 Section 5.09
	  	Equipment and Inventory	  	34

  

 ii 

					
	 Section 5.10
	  	Insurance	  	35
			
	 Section 5.11
	  	Post-Closing Changes; Bailees; Collections on Assigned Agreements, Receivables and Related Contracts	  	35
			
	 Section 5.12
	  	Intellectual Property Collateral	  	37
			
	 Section 5.13
	  	Letter-of-Credit Rights	  	37
			
	 Section 5.14
	  	Voting Rights, Dividends, Etc.	  	38
			
	 Section 5.15
	  	The Collateral Agent Appointed Attorney-in-Fact	  	39
			
	 Section 5.16
	  	Springdale Assets	  	39
			
	 	  	ARTICLE VI	  	 
	 	  	REMEDIES AND ENFORCEMENT	  	 
			
	 Section 6.01
	  	Remedies and Enforcement Action	  	39
			
	 Section 6.02
	  	Procedures Following the Occurrence of a Facility Event of Default	  	40
			
	 Section 6.03
	  	Exercise of Remedies	  	41
			
	 Section 6.04
	  	Insolvency Default	  	41
			
	 Section 6.05
	  	No Liability for Collateral Agent	  	41
			
	 Section 6.06
	  	Sale; Incidents of Sale	  	42
			
	 Section 6.07
	  	Collateral Agent May File Proofs of Claim	  	42
			
	 Section 6.08
	  	Collateral Agent May Enforce Claims	  	43
			
	 Section 6.09
	  	Control of Enforcement Action	  	43
			
	 Section 6.10
	  	Enforcement Proceeds Account	  	43
			
	 Section 6.11
	  	Application of Enforcement Proceeds	  	44
			
	 Section 6.12
	  	Subrogation, Etc.	  	45
			
	 Section 6.13
	  	Other Remedies	  	45
			
	 	  	ARTICLE VII	  	 
	 	  	COLLATERAL AND INTERCREDITOR AGENT	  	 
			
	 Section 7.01
	  	Authorization and Action of the Collateral Agent and Intercreditor Agent	  	46

  

 iii 

					
	 Section 7.02
	  	Reliance	  	46
			
	 Section 7.03
	  	Citibank, CNAI and Affiliates	  	47
			
	 Section 7.04
	  	Acceptance of Collateral	  	47
			
	 Section 7.05
	  	The Collateral Agent May Perform	  	47
			
	 Section 7.06
	  	Duties	  	47
			
	 Section 7.07
	  	Liability	  	49
			
	 Section 7.08
	  	Successor Collateral Agent, Depository Bank and Intercreditor Agent	  	49
			
	 Section 7.09
	  	Suits, Etc., Brought by the Collateral Agent	  	50
			
	 Section 7.10
	  	Compensation of the Collateral Agent, the Depository Bank and the Intercreditor Agent	  	50
			
	 Section 7.11
	  	Taxes, Stamp and Other Similar Taxes	  	51
			
	 Section 7.12
	  	Limitation on Duties in Respect of Collateral	  	52
			
	 Section 7.13
	  	Right to Initiate Judicial Proceedings, Etc.	  	52
			
	 Section 7.14
	  	Exculpatory Provisions	  	52
			
	 Section 7.15
	  	Treatment of Creditor Parties	  	53
			
	 Section 7.16
	  	Miscellaneous	  	53
			
	 Section 7.17
	  	Indemnification	  	54
			
	 Section 7.18
	  	Publicity	  	54
			
	 Section 7.19
	  	Merger; Consolidation	  	54
	 	  	ARTICLE VIII	  	 
	 	  	OTHER AGREEMENTS	  	 
			
	 Section 8.01
	  	Provision of Information; Meetings	  	55
			
	 Section 8.02
	  	Creditor Action	  	55
	 	  	ARTICLE IX	  	 
	 	  	MISCELLANEOUS	  	 
			
	 Section 9.01
	  	Indemnity and Expenses	  	56

  

 iv 

					
	 Section 9.02
	  	Amendments; Waivers, Etc.	  	56
			
	 Section 9.03
	  	Subordination	  	59
			
	 Section 9.04
	  	Additional Grantors	  	60
			
	 Section 9.05
	  	Security Interest Absolute and Waivers	  	60
			
	 Section 9.06
	  	Notices; Etc.	  	63
			
	 Section 9.07
	  	Continuing Security Interest; Assignments Under the Financing Documents	  	63
			
	 Section 9.08
	  	Release and Termination	  	63
			
	 Section 9.09
	  	Execution in Counterparts	  	64
			
	 Section 9.10
	  	Severability	  	64
			
	 Section 9.11
	  	Integration	  	64
			
	 Section 9.12
	  	No Partnership	  	64
			
	 Section 9.13
	  	No Reliance	  	64
			
	 Section 9.14
	  	Third Party Beneficiaries	  	64
			
	 Section 9.15
	  	No Impairment	  	65
			
	 Section 9.16
	  	Equitable Remedies	  	65
			
	 Section 9.17
	  	Remedies	  	65
			
	 Section 9.18
	  	Limitations	  	66
			
	 Section 9.19
	  	Survival	  	66
			
	 Section 9.20
	  	GOVERNING LAW	  	66
			
	 Section 9.21
	  	The Mortgages	  	66
			
	 Section 9.22
	  	Jurisdiction, Etc.	  	66
			
	 Section 9.23
	  	WAIVER OF JURY TRIAL	  	67
			
	 Section 9.24
	  	Confidentiality	  	67

  

 v 

 Schedules: 
  

					
	 Schedule 3.01(a)
	  	-	  	Name, Location, Chief Executive Office, Place Where Agreements Are Maintained, Type of Organization, Jurisdiction of Organization and Organizational Identification Number; Trade Names and
Domain Names; Changes in Name, Location, Etc.
			
	 Schedule 3.01(b)
	  	-	  	Previous Location of Material Equipment
			
	 Schedule 3.01(f)
	  	-	  	Pledged Equity
			
	 Schedule 3.01(g)
	  	-	  	Initial Controlled Accounts and Operating Accounts
			
	 Schedule 5.01(h)
	  	-	  	Commercial Tort Claims
			
	 Schedule 5.04(b)
	  	-	  	Real Property Schedule
			
	 Schedule A-1
	  	-	  	Operating Agreements
			
	Exhibits:	  	 	  	 
			
	 Exhibit A
	  	-	  	Form of Security Agreement Supplement
			
	 Exhibit B
	  	-	  	Form of Accession Agreement
			
	 Exhibit C
	  	-	  	Form of Account Control Agreement
			
	 Exhibit D
	  	-	  	Form of Incumbency Certificate
			
	 Exhibit E-1
	  	-	  	Form of Consent and Agreement (West Virginia)
			
	 Exhibit E-2
	  	-	  	Form of Consent and Agreement (Other States)
			
	 Exhibit F
	  	-	  	Real Property Requirements
			
	Appendices:	  	 	  	 
			
	 Appendix A-1
	  	-	  	Definitions

  

 vi 

 AMENDED AND RESTATED SECURITY AND INTERCREDITOR AGREEMENT 
  
 AMENDED AND RESTATED SECURITY AND INTERCREDITOR AGREEMENT, dated as of
February 21, 2003, as amended and restated in its entirety on March 8, 2004 (such date being the “Amendment Date”), made by and among (capitalized terms used herein shall have the meanings assigned thereto in Section 1.01 of
this Agreement): 
  
 ALLEGHENY ENERGY SUPPLY COMPANY, LLC, a
Delaware limited liability company (the “Company”); 
  
 Each of the Persons (other than the Company) listed on the signature pages hereof as a Grantor and the Additional Grantors (as defined in Section 9.04) (the Company, the Persons so listed and the Additional Grantors
being collectively referred to herein as the “Grantors”); 
  
 CITICORP NORTH AMERICA, INC. (“CNAI”), not in its individual capacity except as expressly set forth herein but solely as administrative agent for the Term B Lenders and the Term C Lenders
(solely in such capacity, the “Administrative Agent”); 
  
 LAW DEBENTURE TRUST COMPANY OF NEW YORK, not in its individual capacity except as expressly set forth herein but solely as indenture trustee on behalf and for the benefit of the Amended Note Noteholders (in such
capacity, the “Indenture Trustee”); and 
  
 CITIBANK, N.A. (“Citibank”), not in its individual capacity except as expressly set forth herein but solely as (a) intercreditor agent (solely in such capacity, the “Intercreditor Agent”) for
the Creditor Parties, (b) the depository bank (solely in such capacity, the “Depository Bank”) and (c) collateral agent on behalf and for the benefit of the Secured Parties (solely in such capacity, the “Collateral
Agent”). 
  
 PRELIMINARY STATEMENTS 
  
 (1) The Company is party to that certain Amended and Restated Indenture,
dated as of February 21, 2003 (said indenture, as amended, amended and restated, supplemented or otherwise modified from time to time, being the “Refinancing Indenture”), together with Law Debenture Trust Company of New York,
as Indenture Trustee, and Bank One Trust Company, N.A., as Security Registrar and Paying Agent, pursuant to which the Company has issued the Amended A Notes, the Amended B Notes and the Amended C Notes. 
  
 (2) The Company is a party to (a) that certain Credit Agreement, dated as of
February 21, 2003, as amended and restated in its entirety as of March 8, 2004 (said agreement, as it may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time, being the “Term B Credit
Agreement”), with the lenders and other financial institutions party thereto (the “Term B Lenders”) and the Administrative Agent pursuant to which the Term B Lenders have (i) established a new loan facility which
is secured by both the Group Assets (as hereinafter defined) and the Springdale Assets (as hereinafter defined) in the order of priorities set forth herein in an initial aggregate principal amount of up to $650,000,000 (the “Group Assets
Facility”) and (ii) continued a loan facility which is secured solely by the Springdale Assets in the order of priorities set forth herein in an initial aggregate principal amount of up to $100,000,000 (the “Springdale
Tranche B Facility” and together with the 

 Group Assets Facility, the “Term B Facility”) and (b) that certain Term C Credit Agreement, dated
as of March 8, 2004 (said agreement, as it may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time, the “Term C Credit Agreement” and together with the Term B Credit Agreement, the
“Term Credit Agreements”), with the lenders and other financial institutions party thereto (the “Term C Lenders” and together with the Term B Lenders, the “Term Lenders”) and
the Administrative Agent pursuant to which the Term C Lenders have established a loan facility which is secured by both the Group Assets and the Springdale Assets in the order of priorities set forth herein in an initial aggregate principal amount
of up to $500,000,000 (the “Term C Facility” and together with the Term B Facility, the “Term Facilities”). 
  
 (3) The Company has applied the proceeds of the Group Assets Facility and the Term C Facility to repay certain outstanding amounts under the Initial
Credit Agreements and the Debt incurred under such Facilities constitutes Additional Secured Debt. 
  
 (4) Subject to the terms of the Financing Documents, the Company or the other Grantors may from time to time incur and secure additional Debt which is
entitled to the benefits of this Agreement and the other Collateral Documents. 
  
 NOW, THEREFORE, to secure the Secured Obligations and, the Springdale Obligations and the performance of the Company’s and the other Grantors’ Obligations under the Financing Documents, and in consideration
of the premises and mutual covenants contained herein and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged) the parties hereto hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS AND INTERPRETATION 
  
 Section 1.01 Definitions. (a) Defined terms used in this Agreement and the Schedules and Exhibits to this Agreement have the meanings assigned to them in Appendix A-1. 
  
 (b) Terms defined in Article 8 or 9 of the UCC and/or in the Federal Book
Entry Regulations are used in this Agreement as such terms are defined in such Article 8 or 9 and/or the Federal Book Entry Regulations. 
  
 Section 1.02 Principles of Interpretation. (a) Except to the extent expressly provided to the contrary in this Agreement or to the extent that the
context otherwise requires, in this Agreement: 
  
 (i) the table of contents and Article and Section headings contained in this Agreement are for convenience only and shall not affect the interpretation of this Agreement or any other Financing Document; 
  
 (ii) references to any document, instrument or agreement,
including any Financing Document, shall include (A) all exhibits, annexes, schedules, appendices or other attachments thereto and (B) all documents, instruments or agreements issued or executed in replacement thereof; 
  

 2 

 (iii) references to a document or agreement, including any Financing Document, shall be
deemed to include any amendment, restatement, modification, supplement or replacement thereto entered into in accordance with the terms thereof and the terms of the Financing Documents; provided that notwithstanding the foregoing, no
reference to any of the Initial Credit Agreements, the Refinancing Indenture, the Term Loan Documents, the Initial Credit Facility Notes or the Amended Notes shall be deemed to include any Replacement Senior Debt Agreement, the proceeds of which
were used to repay the Senior Debt Obligations outstanding under any Initial Credit Agreement, the Refinancing Indenture, the Term Loan Documents, any Initial Credit Facility Note or any Amended Note, as the case may be. 
  
 (iv) the words “include”,
“includes” and “including” are not limiting; 
  
 (v) references to any Person shall include such Person’s successors and permitted assigns (and in the case of any Governmental
Authority, any Person succeeding to such Governmental Authority’s functions and capacities); 
  
 (vi) the words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; 
  
 (vii) references to “days” shall mean calendar days; 
  
 (viii) the singular includes the plural and the plural includes the singular; 
  
 (ix) references to Applicable Law, generally, shall mean
Applicable Law as in effect from time to time, and references to any specific Applicable Law shall mean such Applicable Law, as amended, modified or supplemented from time to time, and any Applicable Law successor thereto; 
  
 (x) in the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”; and 
  
 (xi) any reference in this Agreement to an Article, Section,
Schedule, Appendix or Exhibit is to the article or section of, or a schedule, appendix or exhibit to this Agreement unless otherwise indicated, and Schedules, Appendices and Exhibits to this Agreement shall be deemed incorporated by reference in
this Agreement. 
  
 (b) This Agreement is the result of
negotiations among the parties thereto and their respective counsel. Accordingly, this Agreement shall be deemed the product of all parties thereto, and no ambiguity in this Agreement shall be construed in favor of or against any Grantor or any
Creditor Party. 
  

 3 

 ARTICLE II 
 SECURED OBLIGATIONS AND PREPAYMENTS 
  
 Section 2.01 Recalculation. (a) As soon as reasonably practicable after each Recalculation Date, (i) for so long as any Senior Debt Obligations remain outstanding under any Amended B Note, (A) the outstanding
principal amount owed to any Consenting Amended Note Noteholder under any Amended B Note at such time shall, in accordance with clause (b) below, be reduced by an amount equal to each such Consenting Amended Note Noteholder’s ratable share of
the Available Basket Amount for such Recalculation Date (such amount being each such Consenting Amended Note Noteholder’s “Reduced Unsecured Principal Amount”) and (B) the outstanding principal amount of the Amended A
Notes held by such Consenting Amended Note Noteholder shall, in accordance with clause (b) below, be increased by an amount equal to such Consenting Amended Note Noteholder’s Reduced Unsecured Principal Amount for such Recalculation Date and
(ii) at such time as no Senior Debt Obligations remain outstanding under any Amended B Note, if any Springdale Tranche B Advances remain outstanding, (A) the outstanding principal amount of the Springdale Tranche B Advances owed to each Term B
Lender shall, in accordance with clause (b) below, be reduced by an amount equal to each such Springdale Lender’s ratable share of the Available Basket Amount for such Recalculation Date (such amount being each such Term B Lender’s
“Reduced Springdale Undersecured Principal Amount”) and (B) the outstanding principal amount of the Advances owed to each such Term B Lender under the Group Assets Facility shall, in accordance with clause (b) below, be
increased by an amount equal to such Term B Lender’s Reduced Springdale Undersecured Principal Amount for such Recalculation Date. 
  
 (b) The increase in the outstanding principal amount under any Amended A Note or the outstanding principal amount of the Advances under the Group Assets
Facility and the reduction in the principal amount outstanding under the Amended B Notes or the Springdale Tranche B Facility pursuant to clause (a) above with respect to any Reduced Unsecured Principal Amount or Reduced Springdale Undersecured
Principal Amount, as the case may be, shall automatically and permanently occur upon the creation and perfection by the Grantors of all Liens in favor of the Collateral Agent (for the benefit of the relevant Secured Parties) which may be necessary
in order to fully secure such increased outstanding principal amount under the Amended A Notes or the Advances outstanding under the Group Assets Facility (as the case may be) (and all interest, fees and other amounts relating thereto) with, the
properties, asset, rights or interests of the Grantors, and each Grantor hereby agrees that it shall as soon as reasonably practicable and, in any event promptly after a request by the Intercreditor Agent or the Indenture Trustee, take all action
necessary to create and perfect such Lien in accordance with Section 5.04 and the Real Property Requirements; provided that notwithstanding anything to the contrary contained in this Agreement, none of the Grantors, individually or
collectively, shall be obligated to create or perfect a Lien to secure aggregate Debt in excess of the total amount of the Bond Lien Basket Debt at any time. 
  
 (c) After giving effect to any recalculation pursuant to clause (a) of the outstanding principal amount under the Amended A Notes or the Advances
outstanding under the Group Assets Facility (as the case may be), and upon the creation and perfection of all Liens relating thereto pursuant to clause (b), all such amounts shall constitute Secured Obligations for purposes of this Agreement and the
other Collateral Documents. 
  

 4 

 (d) On the day that is 10 days prior to each day that is a Recalculation Date as a result of clause (b)
of the definition thereof, and promptly after each day that is a Recalculation Date as a result of clause (a) or (c) of the definition thereof, the Intercreditor Agent shall send written notice to the Administrative Agent and the Indenture Trustee
that a Recalculation Date will occur or has occurred, as the case may be, and specify such Recalculation Date. 
  
 (e) Promptly after receiving such notice, (i) the Indenture Trustee shall send written notice to the Intercreditor Agent specifying the aggregate
outstanding principal amount of the Amended B Notes and (ii) the Administrative Agent shall send written notice to the Intercreditor Agent specifying the aggregate outstanding principal amount of the Advances owed to the Term B Lenders under the
Springdale Tranche B Facility, as such amounts were in effect prior to any recalculation made or to be made on the relevant Recalculation Date. 
  
 (f) Promptly after it has received the notice contemplated in clause (e) from the Indenture Trustee or the Administrative Agent, as the case may be, the
Intercreditor Agent shall give written notice to the Indenture Trustee or the Administrative Agent, as the case may be, which notice shall specify: (i) the Recalculation Date to which such notice relates, (ii) the amount, if any, of increase in the
outstanding principal amount of the Amended A Notes or Advances outstanding under the Group Assets Facility, as the case may be, and the corresponding decrease in the outstanding principal amount of the Amended B Notes or the Springdale Tranche B
Advances, as the case may be, (iii) the date of effectiveness of such increase and corresponding decrease, (iv) the Available Basket Amount for the relevant Recalculation Date, (v) the aggregate amount of the Reduced Unsecured Principal Amounts for
the relevant Recalculation Date, (vi) the aggregate amount of the Reduced Springdale Undersecured Principal Amounts for the relevant Recalculation Date, and (vii) the aggregate outstanding principal amount of the Amended B Notes and the Advances
outstanding under the Springdale Tranche B Facility, in each case on the relevant Recalculation Date (after giving effect to any recalculation of such amount on such date). 
  
 Section 2.02 Secured Obligations. Notwithstanding anything herein to the contrary, (a) the Amended A Notes shall
constitute Secured Obligations immediately after the Existing A Notes shall have been amended and assumed by the Company in accordance with the terms of the Refinancing Indenture, (b) the Obligations under the Springdale Tranche B Facility shall
constitute Springdale Obligations immediately after the Company shall have received (or be deemed to have received under the terms of the Term B Credit Agreement) the proceeds from the Advances to be made under the Springdale Tranche B Facility
pursuant to the terms of the Term B Credit Agreement and (c) any Additional Secured Debt Obligations shall constitute Secured Obligations immediately upon the receipt and application of the proceeds therefrom and the perfection of the Liens created
in favor thereof in accordance with the terms of the Financing Documents and the Real Property Requirements. At such time as any of the Senior Debt Obligations shall constitute Secured Obligations pursuant to the terms of Section 2.01 or 2.02(a),
such Senior Debt Obligations shall be subject to and secured by, and entitled to the benefits of, this Agreement and the other Collateral Documents shall rank as follows, without preference by reason of date of incurrence with respect thereto, order
of filing or otherwise of the Senior Debt Obligations (including the Secured Obligations) under any of the Financing Documents: 
  
 (i) with respect to the Springdale Assets only, (A) the Springdale Liens (Springdale Lenders) shall constitute a first priority lien or
security interest in the Springdale Assets and (B) the Springdale Liens (Refinancing Obligations) and, to the extent any Additional Secured Debt Obligations are then outstanding, the Springdale Liens (Additional Secured Debt Obligations) shall
constitute a second priority lien or security interest in the Springdale Assets, ranking in the case of this clause (B) equally as between themselves and junior in priority to the Springdale Liens (Springdale Lenders); and 
  

 5 

 (ii) with respect to the Group Assets only, the Group Assets Liens (Refinancing
Obligations) and, to the extent any Additional Secured Debt Obligations are then outstanding, the Group Assets Liens (Additional Secured Debt Obligations) shall, subject to the PCB Liens, constitute a first priority lien or security interest in the
Group Assets, ranking equally as between themselves. 
  
 Section
2.03 Mandatory Prepayments. The Company shall make a prepayment to the Intercreditor Agent of the Senior Debt Obligations in each case in accordance with Section 2.05 at the following times and in the following amounts (such applicable
amounts being referred to as “Designated Proceeds”): 
  
 (a) Within 10 Business Days after receipt by the Company or any of its Subsidiaries of cash proceeds in respect of any Asset Sale other than any Asset Sale in respect of the Springdale Assets (a
“Non-Springdale Asset Sale”), (i) prior to the repayment in full of the Senior Debt Obligations outstanding under the Springdale Tranche B Facility, in an aggregate principal amount equal to (A) 50% of the Net Cash Proceeds
received by the Company or any of its Subsidiaries in connection with such Non-Springdale Asset Sale until such time as the aggregate Net Cash Proceeds received by the Company or any of its Subsidiaries in respect of all such Non-Springdale Asset
Sales since the Amendment Date exceeds $300,000,000 and (B) 100% of the Net Cash Proceeds received by the Company or any of its Subsidiaries in connection with such Non-Springdale Asset Sale once the aggregate Net Cash Proceeds received by the
Company or any of its Subsidiaries in respect of all Asset Sales since the Amendment Date exceeds $300,000,000, and (ii) after repayment in full of the Senior Debt Obligations outstanding under the Springdale Tranche B Facility, in an aggregate
principal amount equal to 75% of the Net Cash Proceeds received by the Company or any of its Subsidiaries in connection with such Non-Springdale Asset Sale; provided that the foregoing clauses (i) and (ii) shall not apply to Non-Springdale
Asset Sales, the proceeds (or any amount equal to anticipated proceeds) of which are (1) used or committed to be used by the Company or any of its Subsidiaries for the financing of fixed or capital assets to be used in the business of the Company
and its Subsidiaries prior to or within 12 months after any such Non-Springdale Asset Sale or (2) individually or in the aggregate for any Non-Springdale Asset Sales in any fiscal year less than $10,000,000. 
  
 (b) Within three Business Days of receipt by the Company or
any of its Subsidiaries of Net Cash Proceeds relating to any Equity Issuance by the Company or any of its Subsidiaries, in an aggregate principal amount equal to 50% of the Net Cash Proceeds from such Equity Issuance; provided, however, that
the provisions of this clause (b) shall not apply to any Equity Issuance made by the Company to the Parent in 
  

 6 

 connection with the making by the Parent of a cash equity contribution required by Section 4.01(a) of the
Intercreditor Agreement or which is made by the Company to the Parent for the purpose of permitting the Parent to return to the Company proceeds of a cash distribution received by the Parent pursuant to Section 4.01(b) of the Intercreditor
Agreement. 
  
 (c) Within three Business Days of
receipt by the Company or any of its Subsidiaries of Net Cash Proceeds relating to any Debt Issuance, in an aggregate principal amount equal to 100% of the Net Cash Proceeds from such Debt Issuance. 
  
 (d) No later than 90 days after the end of each fiscal year
of the Company, commencing with the fiscal year ending on December 31, 2004, in an aggregate principal amount equal to the Required Prepayment Percentage of Excess Cash Flow for the fiscal year then ended. 
  
 (e) With respect to any Recovery Event Proceeds received in
respect of any of the Group Assets, to the extent required under Section 4.14. 
  
 (f) With respect to any Recovery Event Proceeds received in respect of the Springdale Assets, to the extent required under Section 4.14.

  
 (g) Within 10 Business Days after any Asset
Sale in respect of the Springdale Assets, in an aggregate amount equal to the Net Cash Proceeds received by the Company or any of its Subsidiaries in connection with such Sale. 
  
 Section 2.04 Voluntary Prepayments. 
  
 (a) The Company may, upon at least one Business Day’s notice in the case of Base Rate Advances and three Business
Days’ notice in the case of Eurodollar Rate Advances, in each case to the Intercreditor Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given, the Company shall, prepay the outstanding
aggregate principal amount of the Advances in whole or in part, together with accrued interest to the date of such prepayment on the aggregate principal amount prepaid and any other amounts payable pursuant to Section 2.05(c); provided that
each partial prepayment shall be in an aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof; and provided further that any such prepayment shall be in the order set forth in Section 2.05(a)(ii).

  
 (b) So long as any Senior Debt Obligations remain outstanding
under any of the Initial Credit Agreements, the Company shall not make any election to redeem any of the Amended Notes under Article Eleven of the Refinancing Indenture. 
  
 Section 2.05 Prepayments Generally. (a) (i) Subject to Sections 2.05(d), 2.05(e) and 2.05(f), Designated Proceeds
required to be applied to repay the Senior Debt Obligations pursuant to Section 2.03(a), or 2.03(e), shall be paid to the Intercreditor Agent for further distribution in accordance with the terms of the relevant Financing Documents to the Indenture
Trustee, the Administrative Agent and any other Representative Agent under any other Prepayable Senior Debt Agreement to be applied to repay the outstanding principal amount of the Senior Debt Obligations in the following order of priority:

  
 first, to ratably repay the principal
amount of the Senior Debt Obligations then outstanding under the Springdale Tranche B Facility and the Amended B Notes (if any), together with interest to the date of such payment on the principal amount so repaid and any other amounts payable in
connection with such payment pursuant to Section 2.05(c), until all Senior Debt Obligations under the Springdale Tranche B Facility have been repaid in full; and 
  

 7 

 second, to ratably repay (A) the outstanding principal amount of the Senior Debt
Obligations under the Amended Intercreditor Notes and (B) the outstanding principal amount of the Senior Debt Obligations under any Prepayable Senior Debt Agreement (including, under the Term Credit Agreements), together in each such case, with
interest to the date of such payment on the principal amount so repaid and any other amounts payable in connection with such payment pursuant to Section 2.05(c), until all such Senior Debt Obligations have been repaid in full. 
  
 (ii) Subject to Sections 2.05(d), 2.05(e) and 2.05(f), Designated Proceeds
required to be applied to prepay the Senior Debt Obligations pursuant to Section 2.03(b), 2.03(c) or 2.03(d) or voluntarily undertaken pursuant to Section 2.04 shall be paid to the Intercreditor Agent for further distribution to the Indenture
Trustee and each other Representative Agent (including the Administrative Agent) under any Prepayable Senior Debt Agreement to be applied in the following order of priority: 
  
 first, to ratably repay the principal amount of the Senior Debt Obligations then outstanding under
the Springdale Tranche B Facility and, so long as any Initial Credit Facility Event of Default shall have occurred and be continuing, the Amended B Notes (if any), together with interest to the date of such payment on the principal amount so repaid
and any other amounts payable in connection with such payment pursuant to Section 2.05(c), until all Senior Debt Obligations under the Springdale Tranche B Facility have been repaid in full; and 
  
 second, to ratably repay (A) so long as any Initial
Credit Facility Event of Default shall have occurred and be continuing, the remaining outstanding principal amount of the Senior Debt Obligations under the Amended Intercreditor Notes, together with interest to the date of such payment on the
principal amount so repaid and any other amounts payable in connection with such payment pursuant to Section 2.05(c), until all such Senior Debt Obligations have been repaid in full; and (B) the outstanding Senior Debt Obligations under any
Prepayable Senior Debt Agreement at such time (including under the Term Credit Agreements), together, in each such case, with interest to the date of such payment on the principal amount so repaid and any other amounts payable in connection with
such payment pursuant to Section 2.05(c), until all such Senior Debt Obligations have been repaid in full. 
  
 (iii) Subject to Sections 2.05(d), 2.05(e) and 2.05(f), Designated Proceeds required to be applied to prepay the Senior Debt Obligations pursuant to
Section 2.03(f) or 2.03(g), shall be paid to the Intercreditor Agent for further distribution to the Indenture Trustee 
  

 8 

 and each other Representative Agent (including the Administrative Agent) under any Prepayable Senior Debt Agreement to be
applied in the following order of priority: 
  
 first, to ratably repay the principal amount of the Senior Debt Obligations then outstanding under the Springdale Tranche B Facility, together with interest to the date of such payment on the principal amount so repaid and any other
amounts payable in connection with such payment pursuant to Section 2.05(c), until all Senior Debt Obligations in respect of the Springdale Tranche B Advances have been repaid in full; and 
  
 second, to ratably repay (A) the outstanding
principal amount of the Senior Debt Obligations under the Amended Intercreditor Notes, together, with interest to the date of such payment on the principal amount so repaid and any other amounts payable in connection with such payment pursuant to
Section 2.05(c), until all such Senior Debt Obligations have been repaid in full and (B) all outstanding Senior Debt Obligations under any Prepayable Senior Debt Agreement at such time (including under the Term Credit Agreements), together, with
interest to the date of such payment on the principal amount so repaid and any other amounts payable in connection with such payment pursuant to Section 2.5(c), until all such Senior Debt Obligations have been repaid in full. 
  
 (b) [INTENTIONALLY OMITTED]. 
  
 (c) Concurrently with any prepayment pursuant to Section 2.03 or 2.04, the
Company shall pay to the applicable Creditor Party all accrued fees, costs and expenses, if any, and any other amounts due under the Financing Documents in respect of the principal amount of the Senior Debt Obligations so prepaid; provided
that notwithstanding anything in any Financing Document to the contrary, the Company shall not be obligated or required to pay any prepayment premium, “make-whole” or other similar amount in connection with any payment made pursuant
to this Article II. So long as any Senior Debt Obligations remain outstanding under any of the Initial Credit Agreements, any payment made by the Company in respect of the principal amount of the Amended Notes shall only be made pursuant to this
Article II, Article VI of this Agreement and Article Fifteen of the Refinancing Indenture. 
  
 (d) (i) Notwithstanding anything in Section 2.03 or this Section 2.05 to the contrary, each Consenting Amended Note Noteholder, at its option, may elect not to accept any prepayment in respect of its Amended
Intercreditor Notes. Upon receipt by the Intercreditor Agent of any prepayment amount, the amount of the prepayment that is available to prepay the Senior Debt Obligations in respect of the Amended Intercreditor Notes (the “Amended
Intercreditor Note Prepayment Amount”) shall be deposited into a cash collateral account with the Intercreditor Agent pending application of such amount on the Prepayment Date as set forth below. Promptly after such receipt (the date of
such receipt being the “Receipt Date”), the Intercreditor Agent shall give written notice to the Indenture Trustee of the amount available to prepay the Amended Intercreditor Notes, and the date on which such prepayment shall
be made (the “Prepayment Date”), which date shall be 30 days after the Receipt Date. Promptly following such receipt from the Intercreditor Agent of such notice, the Indenture Trustee shall notify each Consenting Amended Note
Noteholder of (A) the Amended Intercreditor Note 
  

 9 

 Prepayment Amount, (B) the portion of the Amended Intercreditor Note Prepayment Amount offered to prepay the Amended A
Notes and the Amended B Notes, (C) the Receipt Date, (D) the Prepayment Date and (E) the aggregate outstanding principal amount of the Amended A Notes and the Amended B Notes on the date of such notice. 
  
 (ii) Each Consenting Amended Note Noteholder entitled to receive a portion of
such Amended Intercreditor Note Prepayment Amount shall, through the Indenture Trustee, give written notice to the Intercreditor Agent on or prior to 10:00 a.m. (New York City time) three Business Days prior to the relevant Prepayment Date
specifying whether or not such Consenting Amended Note Noteholder accepts such prepayment amount. If any Consenting Amended Note Noteholder entitled to receive a portion of an Amended Intercreditor Note Prepayment Amount fails to give such notice by
such time, such Consenting Amended Note Noteholder (a “Declining Noteholder”) shall be deemed to decline such prepayment offer, unless an Initial Credit Facility Event of Default shall have occurred and be continuing on the
date on which such notice is due, in which case such Consenting Amended Note Noteholder shall be deemed to accept such prepayment offer. Any Consenting Amended Note Noteholder giving written notice of its intention to accept any prepayment or which
is deemed to accept any prepayment offer is hereinafter referred to as an “Accepting Noteholder”. On the Prepayment Date, an amount equal to that portion of the Amended Intercreditor Note Prepayment Amount accepted by the
Accepting Noteholders to prepay the Senior Debt Obligations outstanding under the Amended Intercreditor Notes held by such Accepting Noteholders shall be withdrawn from the cash collateral account and paid to the Indenture Trustee for further
application to the ratable prepayment of the Senior Debt Obligations outstanding under the Amended Intercreditor Notes held by the Accepting Noteholders. Any amounts that would otherwise have been applied to prepay the Senior Debt Obligations
outstanding under the Amended Intercreditor Notes owing to the Declining Noteholders shall instead be applied to ratably prepay the remaining Senior Debt Obligations (other than any such Senior Debt Obligations owed to the Declining Noteholders) or
cash collateralize the Refinancing L/C Commitment as otherwise provided in Section 2.03 or the applicable subsection of this Section 2.05. In the event that all of the Senior Debt Obligations other than the Senior Debt Obligations of any Declining
Noteholder shall have been repaid or redeemed in full, the remainder of any amounts held as cash collateral by the Intercreditor Agent pursuant to this Section 2.05(d) shall be paid over to the Company or its successor. 
  
 (e) Unless all Senior Debt Obligations other than the Senior Debt Obligations
of any Declining Noteholder shall have been repaid or redeemed in full, the Intercreditor Agent shall apply any amounts that remain on deposit in the Noteholder Prepayment Account (after giving effect to any prepayment to the Accepting Noteholders
pursuant to Section 2.05(d)) to prepay Advances outstanding under the Term Credit Agreements or any other Prepayable Senior Debt Agreement as directed by the Company in a notice provided to the Intercreditor Agent by the Company. 
  
 (f) Notwithstanding anything in this Section 2.05 to the contrary, following
the delivery of any Remedies Notice in respect of the Collateral, all amounts received from the Company or any other Grantor or in respect of the Collateral shall be applied in accordance with the provisions of Section 6.11. 
  

 10 

 Section 2.06 Application of Proceeds in Certain Instances. 
  
 (a) [INTENTIONALLY OMITTED]. 
  
 (b) Notwithstanding any provision to the contrary in this Agreement, but
subject to Section 2.12, in the event that with respect to any Additional Secured Debt Obligations (including, without limitation, the Senior Debt Obligations outstanding under the Term B Credit Agreement and the Term C Credit Agreement from time to
time), any of the Additional Secured Debt Liens granted in connection with the incurrence of such Additional Secured Debt Obligations are determined not to create a valid perfected Lien on and security interest in the Collateral in accordance with
the priorities set forth in this Agreement (other than with respect to Permitted Liens), the Secured Lenders (including, without limitation, the Term B Lenders and the Term C Lenders) owed such Additional Secured Debt Obligations shall not be
entitled to vote or exercise any rights with respect to, or receive any proceeds arising from the sale of, the Group Assets or the Springdale Assets pursuant to the exercise by the other Creditor Parties of any remedies hereunder with respect to any
of the Liens or security interests in the Collateral granted in favor of the Secured Parties. 
  
 Section 2.07 Payments. (a) All payments to be made to any Creditor Party by or on behalf of the Company or any other Grantor under this Agreement shall be paid in full, and without condition or deduction for
any counterclaim, defense, recoupment or setoff, in Dollars and in immediately available funds not later than 11:00 a.m. (New York City time) on the due date thereof at the place and in the manner designated in the relevant Financing Document.
Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of
interest or commitment fee, as the case may be; provided that, if such extension would cause payment of interest on or principal of any Senior Debt Obligations to be made in the next succeeding calendar month, such payment shall be made on
the next preceding Business Day. 
  
 (b) All payments under
this Agreement to (i) any Agent (whether for its own account or for the account of any other Creditor Party for which such Agent is the Representative Agent) or the Depository Bank shall be made to such Agent or the Depository Bank, respectively,
and (ii) any other Creditor Party shall be made to the Representative Agent for such Creditor Party. 
  
 Section 2.08 Amounts Not Subject to Sharing. Notwithstanding any other provision of this Agreement: 
  
 (a) No Creditor Party shall have any obligation to share any
payment made by any Person (other than any Grantor or Affiliate thereof) to another Creditor Party pursuant to a contract of guaranty, participation, indemnity, insurance, letter of credit, assignment agreement or other like agreement, between two
such parties or issued by one such party to benefit another. 
  
 (b) No Creditor Party shall have any obligation to share any fee (including Amendment Fees which have been offered to or are available to all applicable Creditor Parties on the same terms), indemnity, compensation for
the increased cost of maintaining its portion of the Senior Debt Obligations, or other similar amount which is payable to or for the benefit of any Creditor Party pursuant to any Financing Document and not made in contravention of any other
provision of the Financing Documents. 
  

 11 

 (c) No Creditor Party shall have any obligation to share any payment made by the Company
or any other Grantor to such Creditor Party pursuant to any other document, agreement, undertaking or other arrangement in respect of any Debt owed to such Creditor Party to the extent that such Debt does not constitute Senior Debt
Obligations. 
  
 Section 2.09 Payments Received by Any
Other Creditor Party. (a) Except as otherwise provided in Section 2.08, if on any day any Creditor Party (other than the Collateral Agent or the Intercreditor Agent) shall obtain any amount, (i) other than amounts obtained by such Creditor Party
from or through the Collateral Agent or the Intercreditor Agent pursuant to this Agreement or from or through its Representative Agent pursuant to the Financing Documents to which it is a party or pursuant to any Facility Note issued pursuant to
such Financing Documents, whether (A) by way of voluntary or involuntary payment, (B) by virtue of an exercise of any right of set-off, banker’s lien or counterclaim, (C) as proceeds of any insurance policy covering any properties or assets of
the Company or any of its Subsidiaries, (D) from proceeds of the liquidation or dissolution of the Company or any of its Subsidiaries or distribution of their respective assets among their respective creditors (however such liquidation, dissolution
or distribution may occur), (E) as payment of any of the Senior Debt Obligations, or (F) from a realization on the Collateral or (ii) subject to Section 2.05, from any Agent or otherwise in respect of the Senior Debt Obligations then due and payable
pursuant to Section 2.03 or in connection with any payment of the Secured Obligations or Springdale Obligations as a result of any Enforcement Action, in either case, in excess of such Creditor Party’s ratable share of such payment, such
Creditor Party shall forthwith notify the Intercreditor Agent thereof and shall promptly, and in any event within ten Business Days of its so obtaining the same, pay such amount or excess amount (less any reasonable costs and expenses incurred by
such Creditor Party in obtaining or preserving such payment) to the Intercreditor Agent for the account of the Creditor Parties, to be distributed among them in accordance with Section 2.05 (or if any Enforcement Action has been taken with respect
to the Collateral, Section 6.11).  
  
 (b)
[INTENTIONALLY OMITTED]. 
  
 (c) If, after any
payment is received by a Creditor Party and paid over to the Intercreditor Agent pursuant to Section 2.09(a), such payment is rescinded or must otherwise be restored by the Creditor Party that first obtained it, each other Creditor Party that
obtained the benefit of such payment (whether pursuant to a distribution hereunder, or otherwise) shall return to such Creditor Party its portion of the payment so rescinded or required to be restored upon demand therefor, together with its pro
rata portion of any interest or other amount paid or payable in connection with the rescission or the restoration of such payment by the Creditor Party that first obtained it. 
  
 Section 2.10 Presumption Regarding Payments. For purposes hereof, any payment received by any Creditor Party from the
Collateral Agent or the Intercreditor Agent pursuant to the terms of this Agreement may be presumed by such Creditor Party to have been properly received by such Creditor Party in accordance with the terms of this Agreement unless such Creditor
Party receives notice from any other Creditor Party that such payment was not made in accordance with terms of this Agreement. 
  

 12 

 Section 2.11 No Separate Security. Each Creditor Party represents and warrants to each other
Creditor Party that, in respect of its Senior Debt Obligations, it has not received any security or guaranty from the Company or any of its Subsidiaries or any other Person other than its interest in the Collateral as provided in the Financing
Documents. 
  
 Section 2.12 Priority of Liens. Each
of the Creditor Parties agrees that it will not directly or indirectly take any action to contest or challenge (a) the validity, legality, enforceability, perfection or avoidability of any Financing Document or the respective security interests of
the Creditor Parties in the Collateral or (b) the priority of the Liens under the Collateral Documents.  
  
 Section 2.13 Additional Secured Debt. If at any time the Company or any of its Subsidiaries incurs Debt in accordance with the terms of the
Financing Documents which the Company desires to be secured by the benefits of this Agreement and the other Collateral Documents, such Debt shall constitute “Additional Secured Debt” and shall be entitled to the benefit of
this Agreement; provided that (a) if such Additional Secured Debt does not qualify as Replacement Senior Debt, no Senior Debt Obligations remain outstanding under any Amended B Note and no Springdale Tranche B Advance remains outstanding, (b)
the incurrence of such Debt and the granting of Liens in connection therewith would not conflict with or result in the breach of or constitute, a default under the provisions of this Agreement, any contract, loan agreement, indenture (including
under the Refinancing Indenture and the Existing Indentures), mortgage, deed of trust, lease or other instrument binding on or affecting any Loan party or any of its properties, (c) the Collateral Agent shall have received an Officer’s
Certificate from the Company or such Subsidiary that (1) identifies the maximum principal or notional amount of the Additional Secured Debt to be so incurred, the amortization schedule, average life and final maturity date of such Additional Secured
Debt and the Representative Agent therefor, (2) identifies whether such Additional Secured Debt shall be entitled to the provisions of Sections 2.03 and 2.05 of the Agreement with respect to any required prepayments of the Senior Debt Obligations,
(3) certifies that (A) such Additional Secured Debt is or will be otherwise incurred in accordance with the terms of the Financing Documents and (B) such Additional Secured Debt is expressly subject to the terms and conditions of this Agreement, (4)
attaches thereto a copy of the Additional Secured Debt Agreement under which such Additional Secured Debt is or will be incurred, and (5) certifies that the Company and each Grantor has complied with the Real Property Requirements in connection with
the granting of any Liens in favor of the applicable Secured Lenders; and (d) the Representative Agent in respect of any such Additional Secured Debt shall have delivered to the Collateral Agent and the Intercreditor Agent an Accession Agreement and
such other documents as they may reasonably request in connection with such Representative Agent becoming a party to this Agreement for the benefit of the Secured Lenders providing any such Additional Secured Debt. 
  

 13 

 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 3.01 Representations and Warranties of the Grantors. Each Grantor represents and warrants to each Secured Party, as of the Amendment Date, that: 
  
 (a) Such Grantor’s exact legal name, as defined in Section 9-503(a) of the UCC, is correctly set forth
in Schedule 3.01(a). Such Grantor has only the trade names and domain names listed on Schedule 3.01(a). Such Grantor is located (within the meaning of Section 9-307 of the UCC) and has its chief executive office and the office in which it maintains
the original copies of each Assigned Agreement and Related Contract to which such Grantor is a party and all originals of all chattel paper that evidence Receivables of such Grantor, in the state or jurisdiction set forth in Schedule 3.01(a). The
information set forth in Schedule 3.01(a) with respect to such Grantor is true and accurate in all respects. Such Grantor has not previously changed its name, location, chief executive office, place where it maintains its agreements, type of
organization, jurisdiction of organization or organizational identification number from those set forth in Schedule 3.01(a) except as disclosed in Schedule 3.01(a) and, with respect to each of Allegheny Energy Supply Lincoln Generating Facility,
LLC, Allegheny Energy Supply Wheatland Generating Facility, LLC, and Allegheny Energy Supply Gleason Generating Facility, LLC, Energy Financing Company LLC and Lake Acquisition Company LLC, other than any such change occurring prior to the
acquisition by the Company of such companies and which the Company is not aware of. 
  
 (b) Within the five years preceding the Amendment Date, such Grantor has not previously changed the location of its Material Equipment
except as set forth in Schedule 3.01(b) and, with respect to each of Allegheny Energy Supply Lincoln Generating Facility, LLC, Allegheny Energy Supply Wheatland Generating Facility, LLC, and Allegheny Energy Supply Gleason Generating Facility, LLC,
Energy Financing Company LLC and Lake Acquisition Company LLC, other than any such change occurring prior to the acquisition by the Company of such companies and which the Company is not aware of. All Security Collateral consisting of certificated
securities and instruments have been delivered to the Collateral Agent. None of the Receivables or Agreement Collateral is evidenced by a promissory note or other instrument that has not been delivered to the Collateral Agent. 
  
 (c) Such Grantor is the legal and beneficial owner of its
Collateral free and clear of any Lien, claim, option or right of others, except for the security interest created under the Collateral Documents or permitted under the Financing Documents (including the PCB Liens) and except to the extent set forth
in the operating agreement of Buchanan Generation, LLC. No effective financing statement or other instrument similar in effect covering all or any part of such Collateral or listing such Grantor or any trade name of such Grantor as debtor is on file
in any recording office, except such as may have been filed in favor of the Collateral Agent relating to the Financing Documents, financing statements or other instruments relating to Liens permitted under the Financing Documents. 
  

 14 

 (d) Such Grantor has exclusive possession and control of the Material Equipment and
Inventory other than Inventory and Equipment stored at any leased premises or warehouse for which a landlord’s or warehouseman’s agreement, in form and substance satisfactory to the Representative Agents, is in effect and which leased
premises or warehouse is so indicated by an asterisk on Schedule 3.01(b), except to the extent otherwise permitted by the Financing Documents. In the case of any Equipment or Inventory of such Grantor, in each case, with a value in excess of
$25,000,000 located on leased premises or in warehouses, no lessor or warehouseman of any premises or warehouse upon or in which such Equipment or Inventory is located has (i) issued any warehouse receipt or other receipt in the nature of a
warehouse receipt in respect of any such Equipment or Inventory, (ii) issued any document for any such Equipment or Inventory, (iii) received notification of any secured party’s interest (other than the security interest granted hereunder or
any other Permitted Lien) in such Equipment or Inventory or (iv) any Lien, claim or charge (based on contract, statute or otherwise) on such Equipment and Inventory, other than Permitted Liens. 
  
 (e) The Initial Pledged Equity pledged by such Grantor
hereunder has been duly authorized and validly issued and is fully paid and non-assessable. With respect to the Pledged Equity that is an uncertificated security, such Grantor has caused the issuer thereof either (i) to register the Collateral Agent
as the registered owner of such security or (ii) to agree in an authenticated record with such Grantor and the Collateral Agent that such issuer will comply with instructions with respect to such security originated by the Collateral Agent without
further consent of such Grantor. If such Grantor is an issuer of Pledged Equity, such Grantor confirms that it has received notice of such security interest. The Pledged Debt pledged as of the Amendment Date by such Grantor hereunder has been duly
authorized, authenticated or issued and delivered, is the legal, valid and binding obligation of the issuers thereof, is evidenced by one or more promissory notes (which notes have been delivered to the Collateral Agent) and is not in default.

  
 (f) The Initial Pledged Equity pledged by
such Grantor constitutes the percentage of the issued and outstanding Equity Interests of the issuers thereof indicated on Schedule 3.01(f). 
  
 (g) Such Grantor does not have any bank or securities accounts other than the Recovery Event Proceeds Account, the Controlled Accounts and
the Operating Accounts. Set forth on Schedule 3.01(g) is a complete and accurate list of all Initial Controlled Accounts and Operating Accounts, showing as of the Amendment Date, with respect to each Operating Account, the name and address of the
bank or other financial institution with whom such Operating Account is maintained, the name of the accountholder and the account number thereof. 
  
 (h) The Assigned Agreements to which such Grantor is a party have been duly authorized, executed and delivered by it and are in full force
and effect and are binding upon and enforceable against such Grantor, and to the best knowledge of such Grantor, all other parties thereto in accordance with their terms, except to the extent limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or other similar law 
  

 15 

 affecting the enforcement of creditors’ rights generally and by general principles of equity. Each
Regulated Affiliate party to any Material Contract to which such Grantor is a party has executed and delivered to the Collateral Agent a Consent in respect of each such Material Contract. 
  
 ARTICLE IV 
 RECOVERY EVENT PROCEEDS ACCOUNTS 
  
 Section 4.01
Creation of Recovery Event Proceeds Account. (a) The Collateral Agent is hereby directed by the Company to cause to be established on or before the Amendment Date with, and maintained thereafter by, the Depository Bank at its offices in New
York City, New York (ABA No. 021000089), in the name of the Collateral Agent and under the sole control and dominion of the Collateral Agent and subject to the terms of this Agreement, the non-interest bearing Dollar-denominated securities account,
Account No. 795379 (the “Recovery Event Proceeds Account”). 
  
 (b) Commencing with the Amendment Date and for so long as any Secured Obligations shall remain unpaid or any Creditor Party shall have any Commitment under any Financing Document to which it is a party, the Recovery
Event Proceeds Account shall be maintained in the name of and under the sole dominion and control of the Collateral Agent. The Collateral Agent shall cause the Recovery Event Proceeds Account to be, and the Recovery Event Proceeds Account shall be,
separate from all other accounts held by or under the control or dominion of the Collateral Agent. The Company irrevocably confirms the authority of (and directs and authorizes) the Collateral Agent to, and the Collateral Agent agrees to, deposit
into, or credit to, and transfer funds from the Recovery Event Proceeds Account in accordance with this Agreement. The Recovery Event Proceeds Account shall be subject to Applicable Laws of the Board of Governors of the Federal Reserve System and of
any other applicable Governmental Authority, as may now or hereafter be in effect. 
  
 (c) The Company shall not have any rights against or to moneys or funds on deposit in, or credited to, the Recovery Event Proceeds Account, as third-party beneficiary or otherwise, except the right of the Company to
receive or make requisitions of moneys or funds on deposit in, or credited to, the Recovery Event Proceeds Account, as permitted by this Agreement, and to direct the Collateral Agent as to the investment of moneys held in the Recovery Event Proceeds
Account as permitted by Section 4.06. In no event shall any amounts or Cash Equivalents deposited into, or credited to, the Recovery Event Proceeds Account, be registered in the name of the Company, payable to the order of the Company, or specially
endorsed to the Company, except to the extent that the foregoing have been specially endorsed to the Collateral Agent or endorsed in blank. 
  
 (d) (i) The Recovery Event Proceeds Account may include one or more Recovery Event Proceeds Subaccounts, established and maintained by the Depository Bank
at its offices in New York City, State of New York, in the name of the Collateral Agent in accordance with Section 4.14(a). 
  
 (ii) Unless otherwise specified in this Agreement, all references to the Recovery Event Proceeds Account shall include references to all Recovery Event
Proceeds Subaccounts thereof and such Recovery Event Proceeds Subaccounts shall be subject to the same restrictions and limitations as the Recovery Event Proceeds Account. 
  

 16 

 (iii) No Recovery Event Proceeds Subaccount may itself include another Recovery Event Proceeds
Subaccount. 
  
 Section 4.02 Recovery Account. (a) The
Company shall irrevocably direct each Person from whom it receives or is entitled to receive Recovery Event Proceeds in excess of $25,000,000 with respect to any Recovery Event or series of related Recovery Events to pay such Recovery Event Proceeds
in excess of $25,000,000 directly to the Collateral Agent for deposit into, or credit to, the Recovery Event Proceeds Account. The Collateral Agent shall have the right to receive all such Recovery Event Proceeds directly from the Persons paying the
same. All Recovery Event Proceeds received by the Collateral Agent shall be as promptly as practicable deposited into, or credited to, the Recovery Event Proceeds Account. 
  
 (b) Amounts on deposit in, or credited to, the Recovery Event Proceeds Account from time to time shall be applied in
accordance with Section 4.14. 
  
 Section 4.03
[INTENTIONALLY OMITTED]. 
  
 Section 4.04
[INTENTIONALLY OMITTED]. 
  
 Section 4.05
Payments in Trust. If, notwithstanding the instructions given or required to be given in accordance with this Article IV, any payments required pursuant to this Article IV to be remitted to the Collateral Agent are instead remitted to the
Company or its Affiliates (it being the intent and understanding of the parties hereto that such payments are not to be made directly to the Company but directly to the Collateral Agent for deposit into, or credit to, the Recovery Event Proceeds
Account for application in accordance with this Article IV), then, to the fullest extent permitted by Applicable Law, the Company or such other Person shall receive such payments into a constructive trust for the benefit of the Secured Parties and
subject to the Secured Parties’ security interest, and shall (or shall use its best efforts to cause the Person receiving such payments to) promptly remit them to the Collateral Agent for deposit into, or credit to, the Recovery Event Proceeds
Account. 
  
 Section 4.06 Investment of Funds in
Recovery Event Proceeds Account. (a) Unless to the knowledge of the Collateral Agent any Facility Event of Default has occurred and is continuing, the Collateral Agent will from time to time (i) invest (or cause to be invested) amounts on
deposit in, or credited to, the Recovery Event Proceeds Account in Cash Equivalents which are deposited into, or credited to, the Recovery Event Proceeds Account, (ii) invest (or cause to be invested) interest paid on the Cash Equivalents referred
to in clause (i) above, and (iii) reinvest (or cause to be reinvested) other proceeds of any such Cash Equivalents that may mature or be sold, in each case in Cash Equivalents which are deposited into, or credited to, the Recovery Event Proceeds
Account, in each case as the Company may select and instruct the Collateral Agent. Interest and proceeds resulting from any investment of funds in the Recovery Event Proceeds Account in Cash Equivalents that are not invested or reinvested in Cash
Equivalents shall be deposited and held in, or credited to, the Recovery Event Proceeds Account. In addition, whenever directed to make a transfer of funds from any Recovery Event Proceeds 
  

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 Account in accordance with the provisions of this Article IV, the Collateral Agent shall have the right at any time to
exchange (or cause to be exchanged) such Cash Equivalents for similar Cash Equivalents of smaller or larger denominations, or for other Cash Equivalents deposited into, or credited to, the Recovery Event Proceeds Account, to the extent that, after
application of all other funds available for such purpose pursuant to this Article IV, the liquidation of such Cash Equivalent is necessary to make such transfer. 
  
 (b) If any Facility Event of Default has occurred and is continuing, the Collateral Agent will from time to time, to the
extent so notified in accordance with Section 4.07, (i) invest (or cause to be invested) amounts on deposit in, or credited to, the Recovery Event Proceeds Account in Cash Equivalents which are deposited into, or credited to, the Recovery Event
Proceeds Account, (ii) invest (or cause to be invested) interest paid on the Cash Equivalents referred to in clause (i) above and (iii) reinvest (or cause to be reinvested) other proceeds of any such Cash Equivalents that may mature or be sold, in
each case in Cash Equivalents which are deposited into, or credited to, the Recovery Event Proceeds Account, in each case, as instructed by the Required Creditors (acting through the Intercreditor Agent). Interest and proceeds resulting from any
investment of funds in the Recovery Event Proceeds Account in Cash Equivalents that are not invested or reinvested in Cash Equivalents shall be deposited and held in, or credited to, the Recovery Event Proceeds Account. In addition, the Collateral
Agent shall have the right at any time to exchange (or cause to be exchanged) such Cash Equivalents for similar Cash Equivalents of smaller or larger denominations, or for other Cash Equivalents deposited into, or credited to, the Recovery Event
Proceeds Account. 
  
 (c) The Collateral Agent shall not invest or
reinvest any funds in the Recovery Event Proceeds Account unless it has received instructions from the Company or the Required Creditors in accordance with this Section 4.06 as to the investment of such funds. All investments and reinvestments of
funds in the Recovery Event Proceeds Account shall be made in the name of the Collateral Agent or its nominee(s). 
  
 (d) Whenever directed to make a transfer of funds from the Recovery Event Proceeds Account in accordance with this Article IV, the Collateral Agent is
hereby directed and authorized by the Company to liquidate (or cause to be liquidated) Cash Equivalents (in order of their respective maturities), to the extent that, after application of all other funds available for such purpose pursuant to this
Article IV, the liquidation of any Cash Equivalent is necessary to make such transfer. 
  
 (e) Neither the Collateral Agent nor the Depository Bank shall (in the absence of gross negligence or willful misconduct, as finally determined by a final and non-appealable decision of a court of competent
jurisdiction) have any liability with respect to any interest, cost or penalty on the liquidation of any Cash Equivalent pursuant to this Agreement, nor shall the Collateral Agent (in the absence of gross negligence or willful misconduct, as finally
determined by a final and non-appealable decision of a court of competent jurisdiction) have any liability with respect to Cash Equivalents (including purchases or conversions of foreign exchange) or moneys deposited into, or credited to, the
Recovery Event Proceeds Account (or any losses resulting therefrom) invested in accordance with the instructions of the Company or the Required Creditors (acting through the Intercreditor Agent), as the case may be. 
  

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 (f) All references in this Agreement to the Recovery Event Proceeds Account and to cash, moneys or funds
therein or balances thereof, shall include the Cash Equivalents in which such cash, moneys, funds or balances are then invested and the proceeds thereof. 
  
 (g) [INTENTIONALLY OMITTED]. 
  
 (h) (i) Neither the Collateral Agent nor any of its Affiliates assume any duty or liability for monitoring the rating or performance of any Cash
Equivalent. In the event an investment selection is not made by the Company or the Required Creditors in accordance with the applicable provisions of this Section 4.06, the funds in the Recovery Event Proceeds Account shall not be invested and the
Collateral Agent shall not incur any liability for interest or income thereon. The Collateral Agent shall have no obligation to invest or reinvest the funds in the Recovery Event Proceeds Account if all or a portion of such funds is deposited with
the Collateral Agent after 11:00 a.m. (New York City time) on the day of deposit. Instructions to invest or reinvest that are received after 11:00 a.m. (New York City time) will be treated as if received on the following business day in New York.
Requests or instructions received after 11:00 a.m. (New York City time) by the Collateral Agent to liquidate all or a portion of funds in the Recovery Event Proceeds Account will be treated as if received on the following business day in New York.
The Collateral Agent shall have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation of all or a portion of funds in the Recovery Event Proceeds Account; provided that the Collateral Agent has
made such investment, reinvestment or liquidation, as applicable, in accordance with the terms, and subject to the conditions, of this Agreement. 
  
 (ii) The Company acknowledges that non-deposit investment products (A) are not obligations of, nor guaranteed, by Citibank nor any of its Affiliates; (B)
are not FDIC insured; and (C) are subject to investment risks, including the possible loss of principal amount invested. 
  
 Section 4.07 Transfers from Recovery Event Proceeds Account During the Continuance of a Facility Event of Default. Upon receipt by the Collateral
Agent of a Notice of Default and until receipt by the Collateral Agent of a revocation by the Creditor Parties party to the Facility pursuant to which such Notice of Default was delivered, the Collateral Agent shall not accept any instructions from
the Company with respect to any transfer or withdrawal of funds on deposit in, or credited to, the Recovery Event Proceeds Account and, in such circumstances, the Collateral Agent shall only accept and comply with instructions for the investment,
transfer or withdrawal of funds in the Recovery Event Proceeds Account solely from the Required Creditors (acting through the Intercreditor Agent) and without further consent by the Company. 
  
 Section 4.08 Reports, Certifications and Instructions. (a) The
Collateral Agent shall maintain all such accounts, books and records as may be necessary to properly record all transactions carried out by it under this Agreement. The Collateral Agent shall permit the other Secured Parties, the Company and its
Affiliates and their authorized representatives to examine such accounts, books and records; provided that any such examination shall occur upon reasonable notice and during normal business hours. 
  

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 (b) The Collateral Agent shall deliver to the Company and each Representative Agent, as soon as
practicable after the end of each calendar month following the Amendment Date, copies of the account statements for the Recovery Event Proceeds Account (including all Recovery Event Proceeds Subaccounts) for such month prepared or compiled by the
Collateral Agent. Such account statements shall indicate, with respect to each such account, deposits, credits and transfers, investments made and closing balances. The Collateral Agent shall provide any additional information or reports relating to
the Recovery Event Proceeds Account and the transactions therein reasonably requested from time to time by the Company or any Secured Party. 
  
 (c) Each time the Company directs the Collateral Agent to make a transfer or withdrawal from the Recovery Event Proceeds Account, it shall be deemed to
represent and warrant for the benefit of the Collateral Agent and the other Secured Parties that such transfer or withdrawal is being made in an amount, and shall be applied solely for the purposes, permitted by, and otherwise in accordance with,
this Agreement. Except to the extent any officer or officers of the Collateral Agent responsible for the administration of this Agreement has actual knowledge to the contrary, the Collateral Agent may conclusively rely on, and shall incur no
liability in so relying on, any such direction. 
  
 (d)
Notwithstanding any provision to the contrary contained in this Agreement, all notices, certifications, approvals, directions, instructions or other communication given to the Collateral Agent with respect to any payments, transfers, credits,
deposits, withdrawals or investments with respect to, or otherwise relating to, the Recovery Event Proceeds Account, in each case, by the Company or by any other Secured Party shall be given in writing, and the Collateral Agent shall not be required
to take any action with respect to any payments, transfers, credits, deposits, withdrawals or investments unless it has received such written instructions specifying the date, amount and Recovery Event Proceeds Subaccount (if applicable) with
respect to which such transfer, credit, deposit, withdrawal or investment is to be made. 
  
 (e) The Company shall deliver to each Representative Agent and the Collateral Agent, within five Business Days after receipt thereof by any Grantor, copies of the account statements for all Controlled Accounts and all
Operating Accounts for such month. Such account statements shall indicate, with respect to each such account, deposits, credits and closing balances. The Company shall also provide any additional information or reports relating to each Controlled
Account and each Operating Account and the transactions therein reasonably requested from time to time by any Secured Party. 
  
 Section 4.09 Depository Bank Undertakings. The Depository Bank represents and warrants to, and agrees with the Company and the Collateral Agent as
follows: 
  
 (a) The Depository Bank (i) is a securities
intermediary on the Amendment Date and (ii) so long as this Agreement remains in effect and Citibank remains the Depository Bank hereunder, shall remain a securities intermediary, and shall act as such with respect to the Company, the Collateral
Agent, the Recovery Event Proceeds Account and all of the Account Collateral (including all security entitlements maintained or carried in the Recovery Event Proceeds Account) from time to time transferred, credited or maintained in the Recovery
Event Proceeds Account. 
  

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 (b) The Recovery Event Proceeds Account is, and shall remain, a securities account, with the Collateral
Agent (and no other Person) as the entitlement holder and under the sole dominion and control of the Collateral Agent for the ratable benefit of the Secured Parties. 
  
 (c) The Depository Bank (i) has identified (and will continue to identify) the Collateral Agent for the ratable benefit of
the Secured Parties in its records as, and will treat the Collateral Agent as (A) the sole Person having a security entitlement against the Depository Bank with respect to the Recovery Event Proceeds Account and the Account Collateral from time to
time carried in the Recovery Event Proceeds Account, (B) the sole entitlement holder against the Depository Bank with respect to the Recovery Event Proceeds Account, (C) the sole Person having dominion and control over the Recovery Event Proceeds
Account and any and all assets, property and items from time to time carried in the Recovery Event Proceeds Account and (D) the sole Person entitled to exercise the rights that comprise the Recovery Event Proceeds Account; and (ii) has credited and
will continue to credit such assets, property and items to the Recovery Event Proceeds Account in accordance with written instructions given pursuant to, and the other terms and conditions of, this Agreement. 
  
 (d) To the maximum extent permitted by Applicable Law, all of the Account
Collateral (including cash), from time to time carried in the Recovery Event Proceeds Account, shall constitute financial assets and the Depository Bank shall treat all such Account Collateral as financial assets. 
  
 (e) Notwithstanding any other provision in this Agreement to the contrary,
the Depository Bank shall comply with any and all entitlement orders and other directions originated by, and only by, the Collateral Agent in respect of the Recovery Event Proceeds Account or the Account Collateral from time to time carried therein
without any further consent or action by the Company or any other Person and shall not comply with the entitlement orders of any other Person (for the avoidance of doubt, the foregoing does not preclude the Company’s right to require that the
Recovery Event Proceeds Account be established, maintained and administered in accordance with the provisions of this Article IV). 
  
 (f) The “securities intermediary’s jurisdiction” (within the meaning of Section 8-110(e) of the UCC) of the Depository Bank is and
will continue to be the State of New York. 
  
 (g) To be binding
on the Depository Bank, all instructions by the Collateral Agent pursuant to Section 4.07 with respect to the Account Collateral carried in the Recovery Event Proceeds Account must be given to the Depository Bank, and only pursuant to and subject to
the terms and conditions of this Agreement. 
  
 (h) Anything
herein to the contrary notwithstanding, the Depository Bank will not be required to follow any instruction that would violate any Applicable Law, decree, regulation or order of any Governmental Authority (including any court or tribunal).

  
 (i) The Depository Bank has not entered into and will not
enter into any agreement with any other Person relating to the Recovery Event Proceeds Account or any financial assets credited thereto pursuant to which it has agreed or will agree to comply with 
  

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 entitlement orders of such Person. The Depository Bank has not entered into any other agreement with the Company or any
other Person purporting to limit or condition the duties of the Depository Bank to comply with entitlement orders originated by the Collateral Agent as set forth in Section 4.09(e). 
  
 (j) The Depository Bank hereby waives and releases any Lien or other right it may have against the Recovery Event Proceeds
Account or any financial asset credited to the Recovery Event Proceeds Account or any credit balance in the Recovery Event Proceeds Account, and agrees that it will not assert any such Lien or other right in, to or against the Recovery Event
Proceeds Account or any credit balance in the Recovery Event Proceeds Account. 
  
 (k) The Depository Bank will send copies of all statements and confirmations for the Recovery Event Proceeds Account simultaneously to the Company and the Collateral Agent. 
  
 (l) All securities or other property underlying any financial assets
consisting of Account Collateral deposited in or credited to the Recovery Event Proceeds Account shall be registered in the name of the Depository Bank, endorsed to the Depository Bank or in blank or credited to another securities account or
securities accounts maintained in the name of the Depository Bank, and in no case will any financial asset consisting of Account Collateral deposited in or credited to an Recovery Event Proceeds Account be registered in the name of the Company,
payable to the order of the Company or specially endorsed to the Company, except to the extent the foregoing have been specially endorsed by the Company to the Depository Bank or in blank. 
  
 (m) If any Person asserts to the Depository Bank any lien, encumbrance or
adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against any Account Collateral, the Depository Bank will as promptly as practicable thereafter notify the Company and the Collateral Agent
thereof. 
  
 Section 4.10 Controlled Accounts. (a) Each
Grantor hereby agrees that it shall maintain all Account Collateral (i) in the case of the Company, with the Collateral Agent in the Recovery Event Proceeds Account, or (ii) in the case of any Grantor (including the Company), (A) in an Operating
Account or (B) with a bank or financial institution (each, a “Pledged Account Bank”) that has agreed, pursuant to an Account Control Agreement among such Grantor, the Collateral Agent and such Pledged Account Bank, to (1)
comply with instructions originated by the Collateral Agent directing the disposition of funds in the Account Collateral without the further consent of such Grantor and (2) waive or subordinate in favor of the Collateral Agent all claims of such
Pledged Account Bank (including claims by way of a Lien or right of setoff or right of recoupment) to the Account Collateral. 
  
 (b) Other than the Recovery Event Proceeds Account, the Initial Controlled Accounts and the Operating Accounts, each Grantor agrees it will not add any
bank or financial institution that maintains any deposit or securities account for such Grantor or open any new deposit or securities accounts with any then existing Pledged Account Bank unless the Collateral Agent shall have received (i) at least
ten Business Days prior written notice of such additional bank or financial institution or such new account, (ii) in the case of a bank or financial institution 
  

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 or Pledged Account Bank that is not the Collateral Agent, an Account Control Agreement duly executed by such new Person
and such Grantor, or a supplement to an existing Account Control Agreement with such then existing Pledged Account Bank, covering such new account and (iii) opinions of Sullivan & Cromwell LLP (or other counsel reasonably acceptable to the
Collateral Agent) and in-house counsel to such Grantor, in each case, addressed to each Secured Party, with respect to such Account Control Agreement and in form and substance reasonably satisfactory to the Collateral Agent. Each Grantor agrees that
it will not terminate any bank or financial institution as a Pledged Account Bank or terminate any Account Collateral, except that the Grantor may terminate any Controlled Account or Operating Account, and terminate a bank or financial institution
as a Pledged Account Bank with respect to such Controlled Account, if the balance on deposit in, or credited to any such Controlled Account or Operating Account is equal to $0.00 and it gives the Collateral Agent at least ten Business Days’
prior written notice of such termination. 
  
 (c) Each Grantor
agrees that it shall not maintain on deposit in the aggregate for all Grantors in the Operating Accounts at any time more than $5,000,000. 
  
 (d) Unless and until a Notice of Exclusive Control is issued pursuant to any Account Control Agreement, each Grantor hereby agrees that it will invest (or
cause to be invested) amounts on deposit in, or credited to, all Controlled Accounts subject to such Account Control Agreement only in Cash Equivalents; provided that the Collateral Agent shall not issue any Notice of Exclusive Control unless
instructed to do so in accordance with Section 6.01(a). 
  
 Section 4.11 Force Majeure. Neither the Collateral Agent nor the Depository Bank shall incur any liability for not performing any act or fulfilling any obligation hereunder by reason of any occurrence beyond its control (including
any provision of any present or future law or regulation or any act of any Governmental Authority, any act of God, war or terrorism, or the unavailability of the Federal Reserve Bank wire services or any electronic communication facility).

  
 Section 4.12 Clearing Agency. The Account Collateral in
the Recovery Event Proceeds Account may be held by the Collateral Agent directly or through any clearing agency or depository (collectively, the “Clearing Agency”) including the Federal Reserve/Treasury Book-Entry System for
United States and federal agency securities, and the Depository Trust Company. The Collateral Agent shall not have any responsibility or liability for the actions or omissions to act on the part of any Clearing Agency. The Collateral Agent is
authorized, for any Collateral at any time held hereunder, to register the Collateral in the name of one or more of its nominee(s) or the nominee(s) of any Clearing Agency in which the Collateral Agent has a participant account, and such nominee(s)
may sign the name of any Grantor and guarantee such signature in order to transfer securities or certify ownership thereof to tax or other Governmental Authorities. 
  
 Section 4.13 Return of Funds. Upon termination of this Agreement in accordance with Section 9.08, the Collateral
Agent shall pay, assign, transfer and deliver to or to the order of the Company all moneys and investments in, or credited to, the Recovery Event Proceeds Account, in each case, in accordance with the instructions of the Company. 

 

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 Section 4.14 Application of Recovery Event Proceeds. (a) Unless otherwise provided to the contrary
herein, the Company shall cause all insurance policies maintained by it or any other Grantor to provide that Recovery Event Proceeds in excess of $25,000,000 payable thereunder shall be paid by the insurer or reinsurer thereof to the Collateral
Agent as contemplated in Section 4.02(a) to be deposited into, or credited to, the Recovery Event Proceeds Account for application as provided in Section 4.14(b); provided that if at any time Recovery Event Proceeds with respect to more than
one unrelated Recovery Event are to be deposited into, or credited to, the Recovery Event Proceeds Account, the Collateral Agent shall establish and maintain with the Depository Bank individual securities accounts (each, a “Recovery Event
Proceeds Subaccount”) within the Recovery Event Proceeds Account for each such Recovery Event. 
  
 (b) If the Company believes, based on reasonable estimates of loss, that Recovery Event Proceeds in respect of any Recovery Event or any series of related
Recovery Events will be in excess of $25,000,000, the Company may elect to restore or replace the Asset (or portion thereof) affected by such Recovery Event if the Company has delivered to the Representative Agents and the Collateral Agent, within
180 days from the occurrence of such Recovery Event, each of the following: (i) (A) a detailed breakdown of the nature and extent of such Recovery Event and (B) a bona fide assessment of the estimated cost and time needed to restore or replace the
Asset (or relevant portion thereof) in order for such Asset (or relevant portion thereof) to operate at substantially the same level as prior to the Recovery Event; (ii) satisfactory evidence that such Recovery Event Proceeds, together with any cash
proceeds that have been or are expected to be deposited into, or credited to, the Recovery Event Proceeds Account, and any other cash expected to be made available by or on behalf of the Company or the Grantor with respect to whose Asset the
Recovery Event occurred, are or are expected to be sufficient to make the necessary restorations or replacements to such Asset (or relevant portion thereof); (iii) an Officer’s Certificate of the Company certifying that (A) it is expected that
all work necessary to restore or replace the Asset (or relevant portion thereof) affected by the relevant Recovery Event (or series of related Recovery Events) can be done within the time periods, if any, required under any Material Contract
relating to such Asset (or relevant portion thereof); (B) the Asset subject to restoration/replacement will be subject to the Liens of the Collateral Documents (whether by amendment to the Collateral Documents or otherwise); (C) all material
Governmental Approvals necessary to perform the work necessary to restore or replace the Asset (or relevant portion thereof) affected by the relevant Recovery Event (or series of related Recovery Events) have been obtained (or are reasonably
expected to be obtained without undue delay or as needed); and (D) the Asset (or relevant portion thereof) once repaired/restored will be of similar value and general utility as immediately prior to the loss; provided that, if the Company
does not deliver the information and Officer’s Certificate set forth in this Section 4.14(b) within such 180-day period, the Collateral Agent shall, as soon as reasonably practicable after such 180-day period, apply such Recovery Event Proceeds
to prepay the Senior Debt Obligations. 
  

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 (c) So long as, to the knowledge of the Collateral Agent, no Default shall have occurred and be
continuing (or would occur after giving effect to any application of funds contemplated hereby), the Collateral Agent shall transfer funds on deposit in, or credited to, the Recovery Event Proceeds Account (or the applicable Recovery Event Proceeds
Subaccount thereof) pursuant to Section 4.14(b) as follows: 
  
 (i) at the written direction of the Company (such written direction to be accompanied by an Officer’s Certificate of the Company confirming that (A) such funds are required to pay amounts then owing and
outstanding, or to reimburse the Company for payments made by the Company or any Grantor, to the relevant contractor(s) undertaking the restoration/replacement work in respect of the Asset (or relevant portion thereof) affected by the relevant
Recovery Event (or series of related Recovery Events); (B) the manner and schedule of the restoration/replacement of the Asset is proceeding generally in accordance with the timetable delivered pursuant to Section 4.14(b); (C) the
restoration/replacement work, and the resulting Asset, comply in all material respects with all applicable Environment Laws and Environmental Permits; and (D) the aggregate amount of Recovery Event Proceeds received, or expected to be received, with
respect to the relevant Recovery Event (or series of related Recovery Events), together with any cash proceeds that have been or are expected to be deposited into, or credited to, the Recovery Event Proceeds Account, and any other cash expected to
be made available by or on behalf of the Company or the Grantor with respect to whose Asset the Recovery Event occurred, is or is expected to be equal to, or exceed, the costs projected to be incurred in the restoration/replacement work necessary to
restore or replace the Asset (or relevant portion thereof) affected by the relevant Recovery Events (or series of related Recovery Events); and 
  
 (ii) upon completion of the restoration and replacement in respect of the Asset (or relevant portion thereof) affected by the relevant
Recovery Event (or series of related Recovery Events), (A) if the funds remaining in the Recovery Event Proceeds Account are in excess of $1,000,000, the Collateral Agent shall apply all such funds to prepay the Senior Debt Obligations and (B)
otherwise, to such Controlled Account as the Company may direct the Collateral Agent. 
  
 (d) Each Grantor agrees that it shall promptly give notice to the Collateral Agent of the occurrence of any Recovery Event and the completion of any restoration/replacement work contemplated by any plan delivered
pursuant to Section 4.14(b). 
  
 (e) Notwithstanding anything to
the contrary in this Section 4.14, the provisions of Section 4.14(b) through (d) shall not apply to any Recovery Event or series of related Recovery Events if the Company believes, based on reasonable estimates of loss, that Recovery Event Proceeds
in respect of such Recovery Event or series of related Recovery Events will be $25,000,000 or less in the aggregate. 
  
 ARTICLE V 
 SECURITY INTERESTS 
  
 Section 5.01 Grant of Security. Each Grantor hereby assigns, pledges
and grants to the Collateral Agent, for the ratable benefit of the Secured Parties and with the respective effectiveness and priorities with respect to the security interests granted pursuant hereto as set forth in Section 2.02, a Lien on and
security interest in, such Grantor’s right, title and interest in and to the following (including, without limitation, with respect to the Springdale Assets), in each case, as to each type of property described below, whether now owned or
hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising: 
  
 (a) all equipment in all of its forms, including all machinery, tools, motor vehicles, vessels, aircraft, furniture and fixtures, and all
parts thereof and all accessions thereto and all software related thereto, including software that is embedded in and is part of the equipment (any and all such property being the “Equipment”); 
  

 25 

 (b) all inventory in all of its forms, including (i) all raw materials, work in process,
finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a joint or other interest or right of any kind (including goods in which such
Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and all accessions thereto and products thereof and documents therefor, and all software related thereto,
including software that is embedded in and is part of the inventory (any and all such property being the “Inventory”); 
  
 (c) all accounts (including health-care-insurance receivables), chattel paper (including tangible chattel paper and electronic chattel
paper), instruments (including promissory notes), deposit accounts, letter-of-credit rights, general intangibles (including, without limitation, all payment intangibles and Emission Credits), other than trust accounts maintained for the benefit of
another Person that is not a Grantor and other obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by performance, and all rights now or
hereafter existing in and to all supporting obligations and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating to the foregoing property (any and all of such accounts,
chattel paper, instruments, deposit accounts, letter-of-credit rights, general intangibles and other obligations, to the extent not referred to in clause (d), (e) or (f) below, being the “Receivables”, and any and all such
supporting obligations, security agreements, mortgages, Liens, leases, letters of credit and other contracts being the “Related Contracts”); 
  
 (d) the following (the “Security Collateral”): 
  
 (i) the Initial Pledged Equity and the certificates, if any,
representing the Initial Pledged Equity, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the
Initial Pledged Equity and all subscription warrants, rights or options issued thereon or with respect thereto; 
  
 (ii) all additional shares of stock and other Equity Interests of or in any issuer of the Initial Pledged Equity or any successor entity
from time to time acquired by such Grantor in any manner (such shares and other Equity Interests, together with the Initial Pledged Equity, being the “Pledged Equity”), and the certificates, if any, representing such
additional shares or other Equity Interests, 
  

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 and all dividends, distributions, return of capital, cash, instruments and other property from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other Equity Interests and all subscription warrants, rights or options issued thereon or with respect thereto; 
  
 (iii) all indebtedness from time to time owed to such
Grantor by any Person (the “Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such indebtedness; and 
  
 (iv) all other investment property (including all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts (including, without limitation, the Recovery Event Proceeds
Account), (D) commodity contracts and (E) commodity accounts) in which such Grantor has now, or acquires from time to time hereafter, any right, title or interest in any manner, and the certificates or instruments, if any, representing or evidencing
such investment property, and all dividends, distributions, return of capital, interest, distributions, value, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any
or all of such investment property and all subscription warrants, rights or options issued thereon or with respect thereto; 
  
 (e) each Material Contract and other contract or agreement (other than the Financing Documents, the Springdale Turbine Contract and the
Black & Veatch Contract), to which such Grantor is now or may hereafter become a party, in each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the
“Assigned Agreements”), including (i) all rights of such Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned
Agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder (all such Collateral being the “Agreement Collateral”); 
  
 (f) the following (collectively, the “Account Collateral”): 
  
 (i) the Recovery Event Proceeds Account, the Controlled
Accounts, the Operating Accounts and all funds and financial assets from time to time credited thereto (including all Cash Equivalents), all interest, dividends, distributions, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such funds and financial assets, and all certificates and instruments, if any, from time to time representing or evidencing the Recovery Event Proceeds Account;

  

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 (ii) all promissory notes, certificates of deposit, deposit accounts, checks and other
instruments from time to time delivered to or otherwise possessed by the Collateral Agent for or on behalf of such Grantor, including those delivered or possessed in substitution for or in addition to any or all of the then existing Account
Collateral; and 
  
 (iii) all interest,
dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral; 
  
 (g) all of the following to the extent used only by the
Company or any of its Subsidiaries (and not by any other Person (including Affiliates)) in connection with the conduct of their respective businesses (collectively, the “Intellectual Property Collateral”): 
  
 (i) all patents, patent applications, utility models and
statutory invention registrations, all inventions claimed or disclosed therein and all improvements thereto (“Patents”); 
  
 (ii) all trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and
other source identifiers, whether registered or unregistered (provided that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a
security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law), together, in each case, with the goodwill symbolized thereby (“Trademarks”);

  
 (iii) all copyrights, including copyrights in
Computer Software (as hereinafter defined), internet web sites and the content thereof, whether registered or unregistered (“Copyrights”); 
  
 (iv) all computer software, programs and databases (including source code, object code and all related
applications and data files), firmware and documentation and materials relating thereto, together with any and all maintenance rights, service rights, programming rights, hosting rights, test rights, improvement rights, renewal rights and
indemnification rights and any substitutions, replacements, improvements, error corrections, updates and new versions of any of the foregoing (“Computer Software”); 
  
 (v) all confidential and proprietary information, including
know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, databases and data, including technical data, financial, marketing and business data, pricing and cost information,
business and marketing plans and customer and supplier lists and information (collectively, “Trade Secrets”), and all other intellectual, industrial and intangible property of any type, including industrial designs and mask
works; 
  

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 (vi) all registrations and applications for registration for any of the foregoing,
together with all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof; 
  
 (vii) all tangible embodiments of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights
corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto; 
  
 (viii) all agreements, permits, consents, orders and franchises relating to the license, development, use or disclosure of any of the
foregoing to which such Grantor, now or hereafter, is a party or a beneficiary; and 
  
 (ix) any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation,
violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; 
  
 (h) all commercial tort claims described in Schedule 5.01(h) (collectively, the “Commercial Tort
Claims Collateral”); 
  
 (i) all
books and records (including customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the Collateral; 
  
 (j) to the extent not already included within any of clauses (a) through (i) above, the Springdale Assets;
and 
  
 (k) all proceeds of, collateral for,
income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral (including proceeds, collateral and supporting obligations that constitute property of the
types described in clauses (a) through (i) of this Section 5.01 and this clause (k)) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Collateral Agent is the loss payee thereof), or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, (B) tort claims, including all commercial tort claims and (C) cash; 
  
 provided, however, that notwithstanding any of the other provisions set forth
in this Section 5.01, this Agreement shall not, at any time, constitute a grant of a security interest in any property that is, at such time, an Excluded Asset. 
  

Section 5.02 Security for Obligations. Subject to the effectiveness and priorities with respect to the security interests granted pursuant to
Section 5.01 as set forth in Section 2.02, this Agreement secures, in the case of each Grantor, the payment of all Secured Obligations and the Springdale Obligations. Without limiting the generality of the foregoing, this Agreement secures, as to
the Company and each other Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by the Company or any other Grantor to any Secured Party under any Financing Document but for the fact that they are
unenforceable or not allowable due to the existence of an Insolvency Proceeding involving the Company or any other Grantor.  
  

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 Section 5.03 Delivery and Control of Security Collateral and Account Collateral. (a) All
certificates or instruments representing or evidencing Security Collateral shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Representative Agents but excluding checks, certificates of title and other similar instruments; provided that instruments evidencing
Pledged Debt need not be delivered until and unless a Facility Event of Default has occurred and is continuing. The Collateral Agent shall have the right, at any time in its discretion and without notice to any Grantor, to transfer to or to register
in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to the revocable rights specified in Section 5.14. In addition, the Collateral Agent shall have the right at any time to exchange
certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger denominations. 
  
 (b) With respect to any Security Collateral in which any Grantor has any right, title or interest and that constitutes an uncertificated security, such
Grantor will cause the issuer thereof either (i) to register the Collateral Agent as the registered owner of such security or (ii) to agree in an authenticated record with such Grantor and the Collateral Agent that such issuer will comply with
instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such authenticated record to be in form and substance satisfactory to the Collateral Agent. With respect to any Security
Collateral in which any Grantor has any right, title or interest and that is not an uncertificated security, upon the request of the Collateral Agent, such Grantor will notify each such issuer of Pledged Equity that such Pledged Equity is subject to
the security interest granted hereunder. 
  
 (c) Upon the request
of the Collateral Agent, each Grantor will notify each such issuer of Pledged Debt that such Pledged Debt is subject to the security interest granted hereunder. 
  

Section 5.04 Further Assurances; Etc. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor will promptly
do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments, financing statements and
continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other instruments as any Agent, the Depository Bank or any other Secured Party through its Representative Agent (in the case of a Related
Creditor), may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Financing Documents, (ii) to the fullest extent permitted by Applicable Law, subject it or any of its Subsidiaries’ properties,
assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended
to be created thereunder (provided that, until a Facility Event of Default has occurred and is continuing, no notice of Liens thereunder to Persons other than Affiliates of the Company) and (iv) assure, 
  

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 convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights
granted or now or hereafter intended to be granted to the Secured Parties under any Financing Document or under any other instrument executed in connection with any Financing Document to which it or any of its Subsidiaries is or is to be a party,
and cause each of its Subsidiaries to do so. Without limiting the generality of the foregoing, each Grantor will promptly with respect to Collateral of such Grantor: (A) at the request of the Intercreditor Agent or any Representative Agent, mark
conspicuously each document included in Inventory, each chattel paper included in Receivables, each Related Contract, each Assigned Agreement and each of its records pertaining to such Collateral with a legend, in form and substance satisfactory to
the Representative Agents, indicating that such document, chattel paper, Related Contract, Assigned Agreement or Collateral is subject to the security interest granted hereby; (B) if any such Collateral shall be evidenced by a promissory note or
other instrument or chattel paper, deliver and pledge to the Collateral Agent hereunder such note or instrument or chattel paper duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance
satisfactory to the Representative Agents; (C) execute or authenticate and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or as any Representative Agent
may request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor hereunder; (D) deliver and pledge to the Collateral Agent for benefit of the Secured Parties certificates representing Security
Collateral that constitutes certificated securities, accompanied by undated stock or bond powers executed in blank; (E) take all action necessary to ensure that the Collateral Agent has control of Collateral consisting of deposit accounts,
electronic chattel paper, investment property, letter-of-credit rights and transferable records as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC and in Section 16 of UETA; (F) at the request of any Representative Agent, take all
action to ensure that the Collateral Agent’s security interest is noted on any certificate of ownership related to any Collateral evidenced by a certificate of ownership; (G) at the request of any Representative Agent, cause the Collateral
Agent to be the beneficiary under all letters of credit that constitute Collateral, with the exclusive right to make all draws under such letters of credit, and with all rights of a transferee under Section 5-114(e) of the UCC; and (H) deliver to
the Collateral Agent evidence that all other action that any Representative Agent may deem reasonably necessary or desirable to perfect and protect the security interest created by such Grantor under this Agreement has been taken. From time to time
upon request by the Collateral Agent, each Grantor will, at such Grantor’s expense, cause to be delivered to the Collateral Agent, for the benefit of the Secured Parties, an opinion of counsel, from outside counsel reasonably satisfactory to
the Collateral Agent, as to such matters relating to the transactions contemplated hereby as the Collateral Agent may reasonably request. 
  
 (b) The Company shall deliver to the Collateral Agent, the Intercreditor Agent and each Representative Agent: 
  
 (i) as soon as reasonably available after the end of each
fiscal quarter (but in any event within 45 days thereof), a report supplementing Schedule 5.04(b), including an identification of all Material Property acquired by any Grantor during such fiscal quarter (the “Acquired Material
Property”) including a list and description (including the street address, county or other relevant jurisdiction, state, record owner and book value thereof) and a description of such other changes in the information included in such
Schedule as may be necessary for such Schedule to be accurate and complete in respect of such Acquired Material Property; and 
  

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 (ii) promptly upon the request of the Intercreditor Agent or any Representative Agent
(but in any event within 75 days of such request), the following: (A) Mortgages, duly executed by the appropriate Grantor in respect of the Acquired Material Property, (B) confirmations from the title insurance company recording the Mortgages
referred to in clause (A) that duly executed counterparts of such Mortgages sufficient for recording in all filing or recording offices that the Intercreditor Agent or any Representative Agent may deem necessary or desirable in order to create valid
and subsisting Liens on the property described therein in favor of the Collateral Agent for the benefit of the Secured Parties have been recorded, and evidence reasonably satisfactory to the Intercreditor Agent and the Representative Agents that all
filing and recording taxes and fees have been paid; (C) fully paid American Land Title Association Lender’s Extended Coverage title insurance policies in form and substance, with endorsements and in amounts acceptable to the Intercreditor Agent
and the Representative Agents, issued by title insurers acceptable to the Intercreditor Agent and the Representative Agents, insuring the Mortgages referred to in clause (A) to be valid and subsisting Liens on the properties described therein, free
and clear of all defects (including mechanics’ Liens and materialmen’s Liens) and encumbrances, excepting only Permitted Liens, and providing for such other affirmative insurance (including endorsements for future advances under the
Financing Documents and for mechanics’ and materialmen’s Liens) as the Intercreditor Agent or any Representative Agent may deem necessary or desirable; (D) ALTA Surveys (for which all necessary fees (where applicable) have been paid) of
the Acquired Material Property dated reasonably near the date of such delivery; (E) confirmation from the title insurance company recording the Mortgages delivered pursuant to clause (A) with respect to the validity and (subject to the exceptions
and encumbrances permitted therein) the priorities of the Mortgages; and (F) evidence that all action (including payment by the Company to the title insurance company recording the Mortgages delivered pursuant to clause (A) of the amount previously
notified by such title insurance company to the Company as necessary for it to record such Mortgages) that the Intercreditor Agent or any Representative Agent may deem necessary or desirable in order to perfect and protect the liens and security
interests created under the Collateral Documents (other than the Other Perfection Requirements) securing all Obligations of the Company and the other Grantors under the Financing Documents have been taken. 
  
 (c) Each Grantor hereby authorizes the Collateral Agent to file one or more
financing or continuation statements, and amendments thereto, including one or more financing statements indicating that such financing statements cover all assets or all personal property (or words of similar effect) of such Grantor, in each case
without the signature of such Grantor, and regardless of whether any particular asset described in such financing statements falls within the scope of the UCC or the granting clause of this Agreement. A photocopy or other reproduction of this
Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law. Each Grantor ratifies its authorization for the Collateral Agent to have filed such financing
statements, continuation statements or amendments filed prior to the Amendment Date. 
  

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 (d) The Company will furnish to the Collateral Agent, at any time upon the request of the Collateral
Agent (if reasonably instructed to do so by any Representative Agent), an opinion of counsel, from outside counsel reasonably satisfactory to the Collateral Agent, to the effect that all financing or continuation statements have been filed, and all
other action has been taken (including action necessary to (i) give the Collateral Agent control over the Collateral as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC and Section 16 of UETA and (ii) cause the security interest in any
Collateral evidenced by a certificate of ownership to be noted on such certificate of ownership) to perfect continuously from the Amendment Date the security interest granted hereunder. 
  
 Section 5.05 As to the Assigned Agreements. (a) Each Grantor will at its expense: 
  
 (i) perform and observe all terms and provisions of the
Assigned Agreements to be performed or observed by it, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party in accordance with the terms thereof and take all such
action to such end as may be requested from time to time by the Collateral Agent, except, in any case, where the failure to do so, either individually or in the aggregate, could not reasonably be likely to have a Material Adverse Effect; and

  
 (ii) furnish to the Collateral Agent promptly
upon receipt thereof copies of all notices, requests and other documents received by such Grantor under or pursuant to the Material Contracts to which it is a party regarding or related to any breach or default by any party thereto that could
reasonably be expected to have a Material Adverse Effect or the occurrence of any other event that could reasonably be expected to have a Material Adverse Effect and copies of any amendment, modification or waiver of any Material Contract.

  
 (b) Each Grantor agrees that it will not, except to the extent
otherwise permitted under the Financing Documents, take any other action in connection with any Material Contract that could reasonably be expected to have a Material Adverse Effect on the rights and remedies of any Secured Party under any Financing
Document. 
  
 (c) Each Grantor hereby consents on its behalf and
on behalf of its Subsidiaries to the assignment and pledge to the Collateral Agent for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder. 
  
 (d) The Company hereby agrees that as soon as reasonably available after
entering into any Material Contract with any Regulated Affiliate after the Closing Date (but in any event within 30 days thereof), it shall deliver to the Collateral Agent a Consent to the assignment of such Material Contract pursuant to this
Agreement duly executed by such Regulated Affiliate. 
  
 Section
5.06 Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein to perform all of
its duties and 
  

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 obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the
contracts and agreements included in the Collateral by reason of this Agreement or any other Financing Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder. 
  
 Section 5.07 Additional Equity Interests. Each Grantor agrees that it will (a) cause each issuer of the Pledged Equity pledged by such Grantor not to issue any Equity Interests or other securities in addition to or in substitution
for the Pledged Equity issued by such issuer, except to such Grantor or any other Person holding Equity Interests in such Grantor on a ratable basis in accordance with the Equity Interest so held, and (b) pledge hereunder, immediately upon its
acquisition (directly or indirectly) thereof, any and all additional Equity Interests or other securities of each issuer of the Pledged Equity. 
  
 Section 5.08 Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit Rights and Giving Notice of Commercial Tort Claims.
The Company covenants and agrees that on and after the Amendment Date and until all Secured Obligations are paid in full and all Commitments shall have terminated: 
  
 (a) each Grantor will maintain all (i) electronic chattel paper so that the Collateral Agent has control of the electronic
chattel paper in the manner specified in Section 9-105 of the UCC and (ii) all transferable records so that the Collateral Agent has control of the transferable records in the manner specified in Section 16 of the Uniform Electronic Transactions
Act, as in effect in the jurisdiction governing such transferable record (“UETA”); 
  
 (b) each Grantor will maintain all letter-of-credit rights assigned to the Collateral Agent so that the Collateral Agent has control of the
letter-of-credit rights in the manner specified in Section 9-107 of the UCC; and 
  
 (c) each Grantor will immediately give notice to the Collateral Agent of any commercial tort claim where such Grantor is claiming damages in an aggregate amount in excess of $25,000,000 that may arise in the future
and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject such commercial tort claim to the first priority security interest created under this Agreement. 

 
 Section 5.09 Equipment and Inventory. (a) Each Grantor will cause
all Equipment (other than any Equipment that is immaterial or non-essential to the conduct of business of the Company and its Subsidiaries, taken as a whole) of such Grantor to be maintained and preserved in accordance with prudent practices then
being utilized in the merchant, non-regulated power generation industry and in accordance with Applicable Laws (including Environmental Laws). Each Grantor will pay and discharge before the same shall become delinquent, (i) all taxes, assessments
and other governmental charges or levies imposed upon the Equipment and Inventor of such Grantor and (ii) all lawful claims that, if unpaid, will be law become a Lien upon its property not otherwise permitted under the Financing Documents;
provided that such grantor shall not be required to pay or discharge any such tax, assessment, charge or claim that is the subject of a Contest. 
  

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 (b) Each Grantor will pay promptly when due all property and other taxes, assessments and governmental
charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Equipment and Inventory of such Grantor that, if unpaid, will by law become a Lien (other than a Permitted Lien), except to the extent
such taxes are the subject of a Contest. 
  
 Section 5.10
Insurance. (a) The Company will, or will cause its Subsidiaries to, maintain property damage and liability insurance in accordance with the terms of the Financing Documents. Each policy of each Grantor for liability insurance shall provide
for all losses to be paid on behalf of the Collateral Agent and such Grantor as their interests may appear, and each policy for property damage insurance shall provide for all losses to be paid directly to the Collateral Agent (except for losses of
less than $25,000,000 per occurrence or series of related occurrences, which shall be paid directly to a Controlled Account). Each endorsement or certificate of insurance for such policy (other than with respect to any policy of liability insurance)
shall in addition (i) name the Collateral Agent, and name or cover each Grantor, in each case, as insured parties thereunder (without any representation or warranty by or obligation upon the Collateral Agent) as their interests may appear, (ii)
contain the agreement by the insurer that any loss thereunder shall be payable to the Collateral Agent notwithstanding any action, inaction or breach of representation or warranty by such Grantor, (iii) provide that at least ten days’ prior
written notice of cancellation or of lapse shall be given to the Collateral Agent by the insurer and (iv) not provide for any recourse against any Creditor Party for the payment premiums or other amounts with respect thereto. The relevant Grantor
will, if so requested by the Collateral Agent (as instructed by the Intercreditor Agent or any Representative Agent), deliver to the Collateral Agent original or duplicate policies of such insurance and, as often as the Collateral Agent may
reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, the relevant Grantor will, at the request of the Collateral Agent (as instructed by the Intercreditor Agent or any Representative Agent), duly
execute and deliver instruments of assignment of such insurance policies to comply with the requirements of the Financing Documents and cause the insurers to acknowledge notice of such assignment. 
  
 (b) Reimbursement under any liability insurance maintained by any Grantor
pursuant to the Financing Documents may be paid directly to the Person who shall have incurred liability covered by such insurance. 
  
 (c) All insurance payments received by the Collateral Agent in connection with any loss, damage or destruction of any Inventory or Equipment will be
released by the Collateral Agent in accordance with Section 4.14. 
  
 Section 5.11 Post-Closing Changes; Bailees; Collections on Assigned Agreements, Receivables and Related Contracts. (a) No Grantor will change its name, type of organization, jurisdiction of organization, organizational identification
number from those set forth in Section 3.01(a) without first giving at least 30 days’ prior written notice to the Collateral Agent and taking all action required by the Collateral Agent for the purpose of perfecting or protecting the security
interest granted by this Agreement. No Grantor will become bound by a 
  

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 security agreement authenticated by another Person (determined as provided in Section 9-203(d) of the UCC) without giving
the Collateral Agent 30 days’ prior written notice thereof and taking all action required by any Representative Agent to ensure that the perfection and first priority nature of the Collateral Agent’s security interest in the Collateral
will be maintained. Each Grantor will hold and preserve its records relating to the Collateral, including the Assigned Agreements and Related Contracts, and will permit representatives of the Collateral Agent at any time during normal business hours
to inspect and make abstracts from such records and other documents. If the Grantor does not have an organizational identification number and later obtains one, it will forthwith notify the Collateral Agent of such organizational identification
number. 
  
 (b) If any Collateral of any Grantor with a value in
excess of $25,000,000 is at any time in the possession or control of a warehouseman, bailee or agent, and the Collateral Agent so requests such Grantor will (i) notify such warehouseman, bailee or agent of the security interest created hereunder,
(ii) instruct such warehouseman, bailee or agent to hold all such Collateral solely for the Collateral Agent’s account subject only to the Collateral Agent’s instructions (which shall permit such Collateral to be removed by such Grantor in
the ordinary course of business until the Collateral Agent notifies such warehouseman, bailee or agent that a Facility Event of Default has occurred and is continuing), (iii) use commercially reasonable efforts, to cause such warehouseman, bailee or
agent to authenticate a record acknowledging that it holds possession of such Collateral for the Collateral Agent’s benefit and shall act on the instructions of the Collateral Agent without the further consent of the Grantor or any other
Person, and (iv) make such authenticated record available to the Collateral Agent. 
  
 (c) Except as otherwise provided in this subsection (c), each Grantor will continue to collect, at its own expense, all amounts due or to become due such Grantor under the Assigned Agreements, Receivables and Related
Contracts. In connection with such collections, such Grantor may take (and, at any Representative Agent’s direction, will take) such action as such Grantor or any Representative Agent may deem necessary or advisable to enforce collection of the
Assigned Agreements, Receivables and Related Contracts; provided that the Collateral Agent shall have the right at any time upon the occurrence and during the continuance of a Facility Event of Default and upon written notice to such Grantor
of its intention to do so, to notify the obligors under any Assigned Agreements, Receivables and Related Contracts of the assignment of such Assigned Agreements, Receivables and Related Contracts to the Collateral Agent and to direct such obligors
to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent and, upon such notification and at the expense of such Grantor, to enforce collection of any such Assigned Agreements, Receivables and
Related Contracts, to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights with respect to such Assigned Agreements, Receivables
and Related Contracts, including those set forth set forth in Section 9-607 of the UCC. After receipt by any Grantor of the notice from the Collateral Agent referred to in the proviso to the preceding sentence, (i) all amounts and proceeds
(including instruments) received by such Grantor in respect of the Assigned Agreements, Receivables and Related Contracts of such Grantor shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other
funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary indorsement) to be deposited in the Enforcement Proceeds Account 
  

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 and applied as provided in Section 6.11 and (ii) such Grantor will not adjust, settle or compromise the amount or payment
of any Receivable or amount due on any Assigned Agreement or Related Contract, release wholly or partly any obligor thereof, or allow any credit or discount thereon. No Grantor will permit or consent to the subordination of its right to payment
under any of the Assigned Agreements, Receivables and Related Contracts to any other indebtedness or obligations of the obligor thereof. 
  
 Section 5.12 Intellectual Property Collateral. (a) With respect to each item of its Intellectual Property Collateral, each Grantor agrees to take,
at its expense, all commercially reasonable steps, including in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other Governmental Authority, to (i) maintain the validity and enforceability of such Intellectual Property
Collateral and maintain such Intellectual Property Collateral in full force and effect, except expirations or terminations in the ordinary course, and (ii) pursue the registration and maintenance of each unexpired patent, trademark, or unexpired
copyright registration or application, now or hereafter included in such Intellectual Property Collateral of such Grantor, including the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and
Trademark Office, the U.S. Copyright Office or other governmental authorities, the filing of applications for renewal or extension, the filing, where appropriate, of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing, where
appropriate, of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and
misappropriation proceedings. No Grantor shall, without the written consent of any Representative Agent, discontinue use of or otherwise abandon any Intellectual Property Collateral, or abandon any right to file an application for patent, trademark,
or copyright, unless such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in the conduct of such Grantor’s business and that the loss thereof
would not be reasonably likely to have a Material Adverse Effect, in which case, such Grantor will give prompt notice of any such abandonment to the Collateral Agent. 
  
 (b) Where required by Applicable Law, each Grantor shall use proper statutory notice in connection with its use of each item
of its Intellectual Property Collateral. 
  
 (c) Each Grantor
shall take all steps which it or any Representative Agent deems reasonable and appropriate to preserve and protect each item of its Intellectual Property Collateral, including taking all reasonable steps necessary to ensure that all licensed users
of any of the Trademarks use such consistent standards of quality. 
  
 Section 5.13 Letter-of-Credit Rights. (a) Each Grantor, by granting a security interest in its Receivables consisting of letter-of-credit rights to the Collateral Agent, intends to (and hereby does) assign to the Collateral Agent its
rights (including its contingent rights) to the proceeds of all Related Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary or assignee. 
  
 (b) Upon the occurrence of any Facility Event of Default, each Grantor will, promptly upon request by any Representative
Agent, (i) notify and such Grantor hereby authorizes the Collateral Agent to notify) the issuer and each nominated person with respect to 
  

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 each of the Related Contracts consisting of letters of credit that the proceeds thereof have been assigned to the
Collateral Agent hereunder and any payments due or to become due in respect thereof are to be made directly to the Collateral Agent or its designee and (ii) arrange for the Collateral Agent to become the transferee beneficiary of letter of credit.

  
 Section 5.14 Voting Rights, Dividends, Etc. (a) So long
as no Facility Event of Default shall have occurred and be continuing: 
  
 (i) each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof for any purpose; provided that such
Grantor will not exercise or refrain from exercising any such right if such action would violate this Agreement; 
  
 each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security Collateral of
such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Financing Documents; and 
  
 (ii) the Collateral Agent will execute and deliver (or cause to be executed and delivered) to each Grantor all such proxies and other
instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the dividends or interest payments
that it is authorized to receive and retain pursuant to paragraph (ii) above. In the absence of instructions to vote or exercise other rights, the Collateral Agent shall not be obligated and shall incur no liability for its failure to take any
action in respect of such rights. 
  
 (b) Upon the occurrence and
during the continuance of any Facility Event of Default: 
  
 (i) all rights of each Grantor (A) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 5.14(a)(i) shall, upon notice to
such Grantor by the Collateral Agent (as instructed by the Intercreditor Agent), cease and (B) to receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to Section 5.14(a)(ii)
shall, upon notice to such Grantor by the Collateral Agent (as instructed by the Intercreditor Agent), automatically cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to
exercise or refrain from exercising such voting and other consensual rights (in each case, as instructed by the Intercreditor Agent) and to receive and hold as Security Collateral such dividends, interest and other distributions; and 
  
 (ii) all dividends, interest and other distributions that
are received by any Grantor contrary to the provisions of paragraph (i) of this Section 5.14(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over
to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement). 
  

 38 

 Section 5.15 The Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably
appoints the Collateral Agent such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, in the Collateral Agent’s discretion, to take any
action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation: 
  
 (a) (i) to obtain and adjust insurance proceeds required to be paid to the Collateral Agent pursuant to the terms of the
Financing Documents; and (ii) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; 
  
 (b) to receive, indorse and collect any drafts or other instruments,
documents and chattel paper, in connection with clause (a) above; and 
  
 (c) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of
any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral; 
  
 provided that the Collateral Agent shall not exercise the power and authority granted to it pursuant to this Section 5.15 above except during such period as a Facility Event of Default has occurred and is
continuing. 
  
 Section 5.16 Springdale Assets. The Company
hereby agrees that it will not conduct any Asset Sale with respect to any of the Springdale Assets, except to the extent that either (a) the Net Cash Proceeds received from such Asset Sale are equal to or greater than the amount necessary to prepay
in full all Senior Debt Obligations outstanding under the Springdale Tranche B Facility or (b) each of the Initial Lenders and the Consenting Amended Note Noteholders have otherwise agreed in writing prior to the time of such Asset Sale.

  
 ARTICLE VI 
 REMEDIES AND ENFORCEMENT 
  
 Section 6.01 Remedies and Enforcement Action. At such time as any Facility Event of Default has occurred and is continuing: 
  
 (a) The Collateral Agent shall take such action in respect of the Recovery
Event Proceeds Account and the Controlled Accounts (including the issuance of any Notice of Exclusive Control) as it may be directed by the Required Creditors (acting through the Intercreditor Agent) in accordance with the provisions of Section
6.02. 
  
 (b) The Required Creditors (acting through the
Intercreditor Agent) shall have the right to issue a Remedies Notice instructing the Collateral Agent to take any Enforcement Action, and the Collateral Agent shall take any such Enforcement Action as so instructed by such Required Creditors (acting
through the Intercreditor Agent). 
  

 39 

 Section 6.02 Procedures Following the Occurrence of a Facility Event of Default. (a) Each
Representative Agent hereby agrees to give prompt notice to the Collateral Agent upon any declaration of a Facility Event of Default (i) with respect to the Indenture Trustee, by the Amended Note Noteholders in accordance with the terms of the
Refinancing Indenture and the Amended Notes, (ii) with respect to the Administrative Agent, by the Term B Lenders and the Term C Lenders in accordance with the terms of the Common Terms Agreement and (iii) with respect to any other Additional
Secured Debt Agent, by the Secured Lenders party to the relevant Additional Secured Debt Agreement or holding any related Facility Note. 
  
 (b) At any time after the Collateral Agent has received notice from any Representative Agent of the declaration of a Facility Event of Default under or in
respect of any Facility, the Collateral Agent shall serve a notice (a “Notice of Default”) on each Representative Agent and the Intercreditor Agent which (i) describes the relevant Facility Event of Default, and (ii) requests
instructions from the Required Creditors as to what Enforcement Action (if any) should be taken in respect of such Facility Event of Default. 
  
 (c) Following receipt of any Notice of Default, if the Required Creditors decide to take any Enforcement Action, the Required Creditors shall, acting
through the Intercreditor Agent, provide a written notice (a “Remedies Notice”) to the Collateral Agent of such decision and direct the Collateral Agent to deposit any Enforcement Proceeds received in connection with the
applicable Enforcement Action into the Springdale Enforcement Proceeds Sub-Account or the General Enforcement Proceeds Sub-Account, as applicable and, upon receipt of such Remedies Notice, the Collateral Agent shall take the Enforcement Action or
Actions set forth in such Remedies Notice in accordance with Section 6.03 and the terms of the other Financing Documents to which the Collateral Agent is a party. 
  
 (d) Until such time as the Required Creditors (acting through the Intercreditor Agent) have delivered a Remedies Notice to
the Collateral Agent pursuant to Section 6.02(c), no Creditor Party shall be entitled to (i) take any Enforcement Action in connection with the occurrence and during the continuance of any Facility Event of Default; or (ii) instruct the Collateral
Agent to take any Enforcement Action; provided that nothing contained herein shall limit the rights of the Required Creditors to instruct in writing the Collateral Agent to make, or to immediately cease making, any applications from the
Recovery Event Proceeds Account or the obligation of the Collateral Agent to comply with such instructions, in each case to the extent consistent with the Financing Documents. Upon receipt of a Remedies Notice, the Collateral Agent shall as promptly
as practicable deliver copies thereof to each Representative Agent and the Intercreditor Agent. 
  
 (e) Each Remedies Notice shall specify the particular Enforcement Action that the Collateral Agent is directed thereunder to take, and shall be effective
on the date set forth in such notice (the “Remedies Effective Date”). 
  
 (f) Nothing in this Article VI shall be construed to restrict the right of Creditor Parties to elect to waive any Facility Event of Default arising under any Facility to which it is a party or agree to any amendment
of one or more of the Financing Documents in order to cure such Facility Event of Default in accordance with the terms of the Facility under which such Facility Event of Default has occurred. 
  

 40 

 Section 6.03 Exercise of Remedies. (a) Notwithstanding anything to the contrary contained in this
Agreement, the Collateral Agent shall not commence or otherwise take any action or proceeding to realize upon any or all of the Collateral or exercise any other rights or enforce any other remedies available under the Financing Documents or as a
matter of law unless and until a Remedies Notice has been delivered to it pursuant to Section 6.02 and the Remedies Effective Date specified therein has occurred; provided that nothing contained herein shall limit the rights of the Required
Creditors (acting through the Intercreditor Agent) to instruct in writing the Collateral Agent to (i) make, or to immediately cease making, any applications from the Recovery Event Proceeds Account, or the obligation of the Collateral Agent to
comply with such instructions or (ii) issue a Notice of Default, in each case to the extent consistent with the Financing Documents. 
  
 (b) At the direction of a Remedies Notice, the Collateral Agent, from and after the Remedies Effective Date specified in such Remedies Notice, shall take
the Enforcement Action or Actions specified therein, including (to the extent specified therein) seeking to enforce the Collateral Documents and to realize upon the Collateral or, in the case of any Insolvency Proceeding against the Company or any
of its Subsidiaries, seeking to enforce the claims of the Creditors Parties thereunder; provided that the Collateral Agent shall not be obligated to follow any Remedies Notice as to which the Collateral Agent has not received adequate
security or indemnity or to the extent that the Collateral Agent has received a written opinion or advice of its counsel to the effect that actions required to be taken by it pursuant to such Remedies Notice are in conflict with any provisions of
Applicable Law, this Agreement or any other Financing Document or any order of any Governmental Authority, and the Collateral Agent shall not under any circumstances (except to the extent that any such liability is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted directly and primarily from its gross negligence or willful misconduct), be liable to any Creditor Party or any other Person for following or refraining from following the written
directions contained in any Remedies Notice. 
  
 (c) In connection
with any Enforcement Action with respect to the Springdale Assets, each Creditor Party hereby agrees that it shall take all reasonable steps necessary to effectuate the sub-division of the Springdale Assets from the Group Assets. 
  
 Section 6.04 Insolvency Default. Notwithstanding any provision to the
contrary in this Agreement or any other Financing Document, upon the occurrence of any Facility Event of Default caused by a bankruptcy, insolvency, reorganization or other similar action or condition of the Company all unutilized Commitments
under the Facilities shall immediately terminate, and all principal of, accrued and unpaid interest on and other amounts due in respect of, the Senior Debt Obligations shall be immediately due and payable without presentment, demand, protest or
notice of any kind whatsoever. 
  
 Section 6.05 No
Liability for Collateral Agent. (a) The Collateral Agent shall not incur any liability for failing to act while waiting for instructions from the Required Creditors (acting through the Intercreditor Agent) hereunder. 
  
 (b) Except as otherwise specifically provided in this Agreement, the
Collateral Agent shall not take any action pursuant to written instructions given to it by any Person, except with the prior written consent of the Required Creditors (acting through the Intercreditor Agent). 
  

 41 

 Section 6.06 Sale; Incidents of Sale. In connection with any sale of any Collateral pursuant to a
Remedies Notice, the Company agrees that, to the extent notice of sale shall be required by Applicable Law, at least ten days’ notice to the Company of the time and place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. With respect to any sale of any of the Collateral made or caused to be made by the Collateral
Agent in accordance with any Remedies Notice, whether made under the power of sale hereby given or pursuant to judicial proceedings, to the extent permitted by Applicable Law: 
  
 (a) Any Creditor Party (including any Secured Party), the Company, the Parent and any Affiliate thereof may bid for, and
purchase, the Collateral offered for sale, and, upon compliance with the terms of sale, may hold and dispose of such property; 
  
 (b) The Collateral Agent may, but shall not be obligated to, make and deliver to the purchaser or purchasers a good and sufficient deed, bill of sale and
instrument of assignment and transfer covering the Collateral sold; 
  
 (c) The Collateral Agent, as the case may be, pursuant to the power of attorney granted pursuant to Section 5.15, may make all necessary deeds, bills of sale and instruments of assignment and transfer of the Collateral thus sold, and for
that purpose the Collateral Agent may execute all necessary deeds, bills of sale and instruments of assignment and transfer, and may substitute one or more Persons with like power; and 
  
 (d) Upon a sale of any Equity Interests in a Subsidiary of the Company pledged or assigned pursuant to Article V or
substantially all of the Assets of any Grantor, whether made under the power of sale hereby given or pursuant to judicial proceedings, such Grantor shall permit, to the extent permitted by Applicable Law, the purchaser thereof and its successors and
its or their permitted assigns to take and use the name of such Grantor and to carry on business under such name or any variant or variants thereof and to use and employ any and all other trade names and trademarks of such Grantor. 
  
 Section 6.07 Collateral Agent May File Proofs of Claim. In case of the
pendency of any Insolvency Proceeding relative to any Grantor or the Collateral, the Collateral Agent (irrespective of whether any of the outstanding Senior Debt Obligations shall then be due and payable) shall be entitled and empowered (but not
obligated), by intervention in such proceeding or otherwise, (a) to file and prove a claim for the whole amount of the Senior Debt Obligations owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to
have the claims of the Collateral Agent (including any claim for the reasonable compensation, disbursements and advances of the Collateral Agent in its individual or trust capacity and its agents and counsel) and of any other Creditor Parties
allowed in such judicial proceeding and (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each Creditor Party to make such payments to the Collateral Agent. 
  

 42 

 Section 6.08 Collateral Agent May Enforce Claims. All rights of action and claims under this
Agreement and the other Financing Documents may be prosecuted and enforced by the Collateral Agent; provided that the Collateral Agent is also hereby appointed as agent for the other Creditor Parties for this and the other purposes of this
Agreement and the other Financing Documents, and the Collateral Agent shall take such action solely as agent for the Creditor Parties. Enforcement Proceeds received by the Collateral Agent in connection with any Facility Event of Default shall,
after provision for the payment of the reasonable compensation, expenses, disbursements and advances of (a) the Collateral Agent, in its capacity as Collateral Agent (including previously outstanding amounts in respect thereof) and (b) its agents
and counsel, be for the benefit of the other relevant Creditor Parties and deposited into the Enforcement Proceeds Account for application as provided in Section 6.11. 
  
 Section 6.09 Control of Enforcement Action. The Required Creditors (acting through the Intercreditor Agent) shall
have the right in accordance with Applicable Law: 
  
 (a)
to direct the Collateral Agent to enforce this Agreement (i) by judicial proceedings for the enforcement of the payment of Senior Debt Obligations and the enforcement of the security interests created under this Agreement and any other Financing
Document, (ii) by the sale of the Collateral or any part thereof, or (iii) otherwise by the exercise of the power of entry or sale hereby conferred; and 
  
 (b) to direct the time, method and place of conducting any proceeding for any remedy available to the Collateral Agent, or exercising any power conferred
upon the Collateral Agent hereunder or under any other Financing Document to which it is a party; provided that (i) such direction shall not be in conflict with Applicable Law, this Agreement or any other Financing Document and (ii) the
Collateral Agent may take any other reasonable action incidental to carrying out any direction of the Required Creditors. 
  
 Section 6.10 Enforcement Proceeds Account. Upon receipt of a Remedies Notice, the Collateral Agent shall establish and thereafter maintain an
account (the “Enforcement Proceeds Account”) for the purposes of depositing therein any Enforcement Proceeds received in respect of the Collateral. The Enforcement Proceeds Account shall consist of two subaccounts: (a) a
Springdale Enforcement Proceeds Account (the “Springdale Enforcement Proceeds Sub-Account”) and (b) a General Enforcement Proceeds Account (the “General Enforcement Proceeds Sub-Account”). The
Collateral Agent is hereby directed to deposit in, or credit to, (i) the Springdale Enforcement Proceeds Sub-Account, any Enforcement Proceeds received in respect of the Springdale Assets or the Springdale Liens and (ii) into the General Enforcement
Proceeds Sub-Account, all other Enforcement Proceeds. All Enforcement Proceeds held in the Enforcement Proceeds Account shall be trust funds held by the Collateral Agent for the benefit of the Secured Parties for the purpose of making payments
therefrom in accordance with Section 6.11.  
  

 43 

 Section 6.11 Application of Enforcement Proceeds. (a) Proceeds on deposit in, or credited to, the
General Enforcement Proceeds Sub-Account shall be applied as promptly as practicable by the Collateral Agent at the direction of the Required Creditors (acting through the Intercreditor Agent), in the following order of priority: 

 
 first, pro rata to the payment of the
Applicable Portion of all reasonable fees, costs and expenses hereunder and under any of the other Financing Documents (including legal fees and expenses) and other similar amounts owed to the Collateral Agent, the Depository Bank and the Mortgage
Trustees in connection with the execution and administration of its duties hereunder or under any other Financing Document to which it is a party and the taking of any Enforcement Action; 
  
 second, pro rata to the payment of the
Applicable Portion of all reasonable fees, costs, expenses (including legal fees and expenses) and any other amounts payable to the other Agents in connection with such Agent’s execution and administration of its duties hereunder or under any
other Financing Document to which it is a party and the taking of any Enforcement Action; 
  
 third, pro rata to the payment of all Secured Obligations to each Representative Agent for further application by such
Representative Agent to its Related Creditors in accordance with the terms of the relevant Financing Documents; and 
  
 fourth, after payment in full of the Secured Obligations, to the payment of the remainder, if any, to the applicable Grantor, its
successors or assigns, or to whomsoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction may direct. 
  
 (b) Proceeds on deposit in, or credited to, the Springdale Enforcement Proceeds Sub-Account shall be applied as promptly as practicable by the Collateral
Agent at the direction of the Required Creditors (acting through the Intercreditor Agent), in the following order of priority: 
  
 first, pro rata to the payment of the Applicable Portion of all reasonable fees, costs and expenses hereunder and under any
of the other Financing Documents (including legal fees and expenses) and other similar amounts owed to the Collateral Agent, the Depository Bank and the Mortgage Trustees in connection with the execution and administration of its duties hereunder or
under any other Financing Document to which it is a party and the taking of any Enforcement Action; 
  
 second, pro rata to the payment of the Applicable Portion of all reasonable fees, costs, expenses and any other amounts
payable to the other Agents in connection with such Agent’s execution and administration of its duties hereunder or under any other Financing Document to which it is a party and the taking of any Enforcement Action; 
  
 third, pro rata to the payment of all of the
outstanding Senior Debt Obligations owed in respect of Advances under the Springdale Tranche B Facility (the “Springdale Obligations”) to the Administrative Agent for further application to the repayment of such Senior Debt
Obligations; 
  
 fourth, pro rata
to the payment of all Secured Obligations to each Representative Agent for further application by such Representative Agent to its Related Creditors in accordance with the terms of the relevant Financing Documents; and 
  

 44 

 fifth, after the payment in full of the Springdale Obligations and the Secured
Obligations, to the payment of the remainder, if any, to the applicable Grantor, its successors or assigns or to whomsoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction may direct. 
  
 The terms of this Section 6.11 shall apply solely to the application of proceeds in the
Enforcement Proceeds Account and shall in no way affect, impair or limit the rights of the Creditor Parties otherwise provided hereunder or in any other Financing Document. 
  
 Section 6.12 Subrogation, Etc. (a) Each Creditor Party agrees that notwithstanding the source of any Enforcement
Proceeds on deposit in, or credited to the Enforcement Proceeds Account from time to time, that all such Enforcement Proceeds shall be applied as provided for in Section 6.11. 
  
 (b) In the event that the Enforcement Proceeds applied to repay any of the outstanding Senior Debt Obligations in accordance
with Section 6.11 are derived from any Mortgage or Lien granted in respect of the Collateral in favor of any Secured Party (the “Principal Secured Party”) other than the Secured Party (the “Repaid Secured
Party”) receiving payment in respect of its Senior Debt Obligations, then the Principal Secured Party shall be subrogated to the extent of the payments in respect of such Senior Debt Obligations to the extent so paid to the Repaid
Secured Party (the “Subrogated Senior Debt Obligations”) to the rights of the Repaid Secured Party to receive payments and distributions of cash, property and securities applicable to such Subrogated Senior Debt Obligations.
For purposes of such subrogation, no payments or distributions to any Repaid Secured Party of any Enforcement Proceeds to such Repaid Secured Party shall be deemed to be a payment or distribution by the Company or any other Grantor in respect of the
Subrogated Senior Debt Obligations held by such Repaid Secured Party. The subrogation rights of any Principal Secured Party shall be subject to the provisions of Section 6.11 with respect to the repayment of any of the Subrogated Senior Debt
Obligations. 
  
 (c) Promptly upon the request of any Principal
Secured Party, each Repaid Secured Party owed any of the Senior Debt Obligations constituting Subrogated Senior Debt Obligations of such Principal Secured Party shall execute and deliver such documents as may be required under the Financing
Documents relating to such Senior Debt Obligations to effect an assignment or transfer of such Senior Debt Obligations to such Principal Secured Party. The Company and each other Grantor agrees that any Principal Secured Party which is assigned or
transferred any of the Senior Debt Obligations pursuant to this Section 6.12(c) may, to the fullest extent permitted by Applicable Law, exercise all its rights of payments (including the right of set-off) with respect to such Senior Debt Obligations
as fully as if such Principal Secured Party were the original direct creditor of the Company in respect of the amount of the Senior Debt Obligations so assigned or transferred. No Creditor Party shall be required to pay any assignment or transfer
fee to any agent in connection with any assignment or transfer contemplated by this Section 6.12(c) and no consent from any Person shall be required in connection with any such assignment or transfer. 
  
 Section 6.13 Other Remedies. Except as the same relates to the
Collateral or as otherwise expressly prohibited by this Agreement, each Creditor Party may exercise any right or power, enforce any remedy, give any direction, consent or waiver or make any determination, under or in respect of any provision of any
Financing Document to which it is a party. 
  

 45 

 ARTICLE VII 
 COLLATERAL AND INTERCREDITOR AGENT 
  
 Section 7.01 Authorization and Action of the Collateral Agent and Intercreditor Agent. Each Creditor Party (other than the Collateral Agent and Intercreditor Agent) hereby appoints and authorizes the Collateral
Agent and the Intercreditor Agent to take such action as agent on its behalf and to (a) execute and deliver all of the Financing Documents (other than this Agreement) to which it is or is to be a party (including the Mortgages and the Consents)
delivered or to be delivered on or after the Amendment Date as expressly contemplated by the Financing Documents; provided that any Financing Document (including any Mortgages or Consents) to be delivered at any point after the Amendment Date
shall be in substantially the form of the relevant Financing Document (including any Consent or Mortgage) delivered pursuant to the terms of the Common Terms Agreement on or prior to the Amendment Date or the Collateral Agent shall be directed by
the Intercreditor Agent to execute and deliver any such Financing Document (including any Mortgage or Consent) and (b) exercise such powers and discretion under this Agreement and the other Financing Documents to which the Collateral Agent or the
Intercreditor Agent, as the case may be, is a party as are delegated to such Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by the
Financing Documents, neither the Collateral Agent nor the Intercreditor Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Creditors (acting, in the case of the Collateral Agent, through the Intercreditor Agent), and such instructions shall be binding upon all Creditor Parties or, with respect to the
investment of funds in the Recovery Event Proceeds Account in Cash Equivalents in accordance with Section 4.06 only, the instructions of the Company; provided that neither the Collateral Agent nor the Intercreditor Agent shall be required to
take any action that exposes it to personal liability or that is contrary to this Agreement or Applicable Law. Each of the Collateral Agent and the Intercreditor Agent agrees to give as promptly as practicable to each Representative Agent notice of
each notice given to it by the Company or any other Person pursuant to the terms of this Agreement or any other Financing Document. 
  
 Section 7.02 Reliance. None of the Collateral Agent, the Depository Bank or the Intercreditor Agent nor any of their respective directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with the Financing Documents, except for its or their own gross negligence or willful misconduct. Without limitation of
the generality of the foregoing, each of the Collateral Agent, the Depository Bank and the Intercreditor Agent: (a) may consult with legal counsel (including counsel for any Grantor), independent public accountants and other experts selected by it
and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to any other Creditor and shall not be responsible
to any other Creditor Party for any statements, warranties or representations (whether written or oral) made in or in connection with the Financing Documents; (c) shall not have any duty to ascertain or to inquire as to the performance 

 

 46 

 or observance of any of the terms, covenants or conditions of any Financing Document on the part of any Grantor or to
inspect the property (including the books and records) of any Grantor; (d) shall not be responsible to any other Creditor Party for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created under or in connection with, any Financing Document or any other instrument or document furnished pursuant thereto; and (e) shall incur no liability under or in respect of
any Financing Document by acting upon any notice, consent, certificate or other instrument or writing believed by it to be genuine and signed or sent by the proper party or parties. 
  
 Section 7.03 Citibank, CNAI and Affiliates. With respect to its Commitment (if any), the Advances made by it (if
any), any Senior Debt Obligations owed to it (if any) and any Facility Notes issued to it, Citibank and CNAI shall have the same rights and powers under the Financing Documents as any other Creditor Party and may exercise the same as though it were
not an Agent; and the terms “Creditor Party”, “Term Lender”, “Term Lenders”, “Secured Party”, “Creditor Parties”, “Term B Lender”, “Term B
Lenders”, “Term C Lender”, “Term C Lenders” and “Secured Parties” shall, unless otherwise expressly indicated, include Citibank in its individual, and, agency capacities. Citibank and CNAI
and their respective Affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, the Company, the Parent, any Affiliate
thereof, any of their respective Subsidiaries and any Person that may do business with or own securities of the Company, the Parent, any Affiliate thereof or any such Subsidiary, all as if Citibank, were not an Agent, and without any duty to account
therefor to the other Creditor Parties. 
  
 Section 7.04
Acceptance of Collateral. The Collateral Agent has no duty to solicit the deposit of any Collateral with it by any Grantor or other Person and agrees to accept all Collateral to be delivered to or held by the Collateral Agent pursuant to the
terms of this Agreement or any other Collateral Document. The Collateral Agent shall, on behalf and for the benefit of the Secured Parties, be the beneficiary and hold and safeguard any Collateral delivered to it during the term of this Agreement or
any other Collateral Document as specified herein or therein and shall hold such Collateral in accordance with the provisions of this Agreement or such other Collateral Document, as the case may be; provided that the Collateral Agent shall
not be required to hold or safeguard the Collateral with a higher degree of care than it holds and safeguards its own property. 
  
 Section 7.05 The Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, the Collateral Agent may, but
without any obligation to do so and without notice, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by such Grantor under Section 9.01.

  
 Section 7.06 Duties. (a) The powers conferred on the
Collateral Agent hereunder are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, 
  

 47 

 conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party
has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property. 
  
 (b) Anything contained herein to the contrary notwithstanding, the Collateral Agent may from time to time, when the
Collateral Agent deems it to be necessary, appoint one or more subagents (each, a “Subagent”) for the Collateral Agent hereunder with respect to all or any part of the Collateral. In the event that the Collateral Agent so
appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Agreement to have been made to
such Subagent, in addition to the Collateral Agent, for the ratable benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Collateral Agent, with
all rights, powers, privileges, interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term “Collateral Agent”, when used herein in relation to any rights, powers, privileges,
interests and remedies of the Collateral Agent with respect to such Collateral, shall include such Subagent; provided that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the
extent expressly authorized in writing by the Collateral Agent. 
  
 (c) None of the Collateral Agent, the Depository Bank or the Intercreditor Agent shall be deemed to have knowledge of (i) the occurrence of any Default or Facility Event of Default (or if any such event would occur after giving effect to
any application of funds contemplated by any provision of this Agreement) unless and until it has received written notice thereof from the Company or any other Creditor Party or (ii) the existence, the content, or the terms and conditions of, any
other agreement, instrument or document, in each case, to which it is not a party, whether or not referenced herein. Without prejudice to the foregoing, none of the Collateral Agent, the Depository Bank or the Intercreditor Agent shall be attributed
with any knowledge or information that any other department or division of Citibank or any of its Affiliates may have from time to time. 
  
 (d) The parties hereto agree that any of the acknowledgements, consents, agreements and statements made by the Collateral Agent in respect of the
Collateral in the Financing Documents are being made in its capacity as directed agent for, and on behalf and at the request of, the Secured Parties and that such acknowledgements, consents, and agreements are being made without independent
investigation and without liability as a principal. The parties hereto understand and agree that, notwithstanding any other term of the Financing Documents, in making any determinations, taking actions, granting consents, refraining from taking
actions, withholding consents contemplated in the Financing Documents, each of the Collateral Agent and the Intercreditor Agent is authorized, and should be expected, to consult with legal and other advisors and with the other Creditor Parties and
their respective advisors. None of the Collateral Agent, the Depository Bank or the Intercreditor Agent shall incur any liability for any determination made or instruction given by the Required Creditors (acting, in the case of the Collateral Agent
and the Depository Bank, through the Intercreditor Agent) and their 
  

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 respective advisors. The Collateral Agent assumes no responsibility and shall not be deemed to have assumed any
responsibility, either express or implied, to monitor the validity or sufficiency of the Collateral. The Creditor Parties further acknowledge and agree that the provisions of the Financing Documents which empower and/or entitle the Collateral Agent
to take action, to refrain to take action, or to request the taking or refraining from taking action, with respect to the Collateral or otherwise shall not impose, and shall not be deemed to impose, on the Collateral Agent an obligation to act
independently from the instructions of the Creditor Parties or any class or portion thereof (in each case, acting, in the case of either the Collateral Agent or the Depository Bank, through the Intercreditor Agent or any Representative Agent, as the
case may be) or to monitor the contingencies that may give rise to the exercise of such power or entitlement. 
  
 Section 7.07 Liability. None of the Depository Bank, the Collateral Agent or the Intercreditor Agent shall be liable for any error of judgment or
for any act done or omitted to be done by it in good faith or for any mistake of fact or law, or for anything it may do or refrain from doing, except to the extent that any such liability is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted directly and primarily from its gross negligence or willful misconduct. 
  
 Section 7.08 Successor Collateral Agent, Depository Bank and Intercreditor Agent. (a) The Required Creditors may remove the Collateral Agent, the
Depository Bank or the Intercreditor Agent at any time by giving to the Collateral Agent, the Depository Bank or the Intercreditor Agent (as applicable) 30 days’ prior written notice of removal. The Collateral Agent, the Depository Bank and the
Intercreditor Agent may resign at any time by giving to each of the Representative Agents and the Company 15 days’ prior written notice of resignation. 
  
 (b) Within 30 days after giving the foregoing notice of removal to the Collateral Agent, the Depository Bank or the
Intercreditor Agent (as applicable) or within 15 days after receiving the foregoing notice of resignation from the Collateral Agent, the Depository Bank or the Intercreditor Agent (as applicable) the Required Creditors shall appoint a successor
collateral agent or depository bank (as applicable) and give notice of such successor collateral agent, depository bank or intercreditor agent (as applicable) to the Collateral Agent, the Depository Bank or the Intercreditor Agent (as applicable).
If no successor collateral agent, depository bank or intercreditor agent (as applicable) shall have been so appointed by the Required Creditors, and shall have accepted such appointment, within 15 days after the retiring Collateral Agent’s,
Depository Bank’s or Intercreditor Agent’s (as applicable) giving of notice of resignation or 30 days after the Required Creditors’ removal of the retiring Collateral Agent, Depository Bank or Intercreditor Agent (as applicable), then
the retiring Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) may on behalf of the other Secured Parties apply to a court of competent jurisdiction for appropriate relief or appoint a successor collateral agent or depository
bank (as applicable), in each case, which shall be a Creditor Party; provided that if no Creditor Party is willing to become the successor collateral agent, depository bank or intercreditor agent (as applicable), then such successor
Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) shall be a commercial bank (or any Affiliate thereof) organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus
of at least $500,000,000. Upon the acceptance of any appointment as the Collateral Agent, the Depository Bank or the Intercreditor Agent (as applicable) hereunder by a successor Collateral Agent, Depository Bank or Intercreditor Agent (as
applicable) such successor Collateral 
  

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 Agent, Depository Bank or Intercreditor Agent (as applicable) shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) and the retiring Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) shall be discharged
from its duties and obligations under this Agreement and the other Financing Documents. After any retiring Collateral Agent’s, Depository Bank’s or Intercreditor Agent’s resignation or removal hereunder as the Collateral Agent, the
Depository Bank or the Intercreditor Agent (as applicable) the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Collateral Agent, the Depository Bank or the Intercreditor
Agent (as applicable) under this Agreement or any other Financing Document. 
  
 (c) Upon receipt of notice of the identity of the successor collateral agent, the Collateral Agent shall either deliver the funds on deposit in the Recovery Event Proceeds Account and all other Collateral then held
hereunder to the successor collateral agent, less the Collateral Agent’s fees, costs, expenses and the value of other obligations owed to the Collateral Agent hereunder, or hold such funds (or any portion thereof) and such other Collateral (if
any) pending distribution, until all such fees, costs and expenses or the value of other obligations are paid to it. 
  
 Section 7.09 Suits, Etc., Brought by the Collateral Agent. In any suit, proceeding or action brought by the Collateral Agent in its individual
capacity (and in its capacity as agent hereunder) under or with respect to the Collateral for any sum owing under this Agreement or any other Financing Document, or to enforce any provisions hereof or thereof, the Company will save, indemnify and
keep the Collateral Agent in its individual capacity (and in its capacity as trustee or agent hereunder) harmless from and against all expense, loss or damage (including reasonable attorney’s fees and documented expenses) suffered by reason of
any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the obligee thereunder, arising out of a breach by any Grantor of any of its obligations hereunder or thereunder or arising out of any other agreement,
indebtedness or liability at any time owing to, or in favor of, such obligee or its successors from the Company, and all such obligations of the Company shall be and remain enforceable against and only against the Company, and shall not be
enforceable against the Collateral Agent (in its individual capacity) or any other Creditor Party. 
  
 Section 7.10 Compensation of the Collateral Agent, the Depository Bank and the Intercreditor Agent . Each of the Collateral Agent, the Depository
Bank and the Intercreditor Agent shall be entitled to reasonable compensation as may be agreed from time to time between the Company and such Agent or the Depository Bank, as the case may be, for all services rendered under this Agreement and the
other Financing Documents to which it is a party and such compensation, together with reimbursement of such Agent or the Depository Bank, as the case may be, in its individual capacity (and its agency capacity) for its advances, disbursements and
reasonable expenses in connection with the performance of the trust and activities provided for herein (including the reasonable fees and expenses of its agents and of counsel, accountants and other experts), shall be paid in full by the Company
promptly following demand from such Agent or the Depository Bank, as the case may be, from time to time as services are rendered and expenses are incurred. All such payments made by the Company to the Collateral Agent, the 
  

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 Depository Bank or the Intercreditor Agent, shall be made free and clear of all present and future income, stamp or other
taxes, levies and withholdings imposed, assessed, levied or collected by the government of the United States of America or any political subdivision or taxing authority thereof. Except as otherwise expressly provided herein, no Creditor Party shall
have any liability for any fees, expenses or disbursements of either of the Collateral Agent, the Depository Bank or the Intercreditor Agent. Any reasonable and documented fees, compensation, indemnity amounts (unless such indemnity amounts are
subject to dispute among the parties hereto) or expenses of the Collateral Agent, the Depository Bank or the Intercreditor Agent (in its individual or agency capacity), or its counsel not paid as provided for herein may be taken from any Collateral
held by the Collateral Agent hereunder, subject to the provisions of Article IX. Upon its resignation or removal, each of the Collateral Agent, the Depository Bank and the Intercreditor Agent shall be entitled to the prompt payment by the Company of
its compensation and indemnification for the services rendered under this Agreement and the other Financing Documents to which it is a party, and to reimbursement of all reasonable out-of-pocket expenses up to the date of resignation or removal
(including the reasonable fees and expenses of counsel, if any) incurred in connection with the performance of such services. The agreements in this Section 7.10 shall survive any resignation or removal of the Collateral Agent, the Depository Bank
or the Intercreditor Agent, as the case may be, and the termination of the other provisions of this Agreement. 
  
 Section 7.11 Taxes, Stamp and Other Similar Taxes. (a) The Company shall pay or reimburse the Collateral Agent, the Intercreditor Agent and the
Depository Bank upon request for any transfer taxes or other taxes relating to or incurred in connection with the Collateral and shall indemnify and hold harmless the Collateral Agent, the Intercreditor Agent and the Depository Bank from any amounts
that it is obligated to pay in the way of such taxes. Any payments of income from the Collateral shall be subject to withholding regulations then in force with respect to United States federal taxation. Upon the Collateral Agent’s request, the
Company and each Consenting Amended Note Noteholder and Secured Lender will promptly provide the Collateral Agent, the Intercreditor Agent and the Depository Bank with the appropriate Form W-9 for tax identification number certifications, or Form
W-8BEN, for non-resident alien certifications. The Collateral Agent, the Intercreditor Agent and Depository Bank shall be responsible only for income reporting to the Internal Revenue Service with respect to income earned on the Collateral. This
Section 7.11 shall survive the termination of this Agreement and the resignation or removal of the Collateral Agent. 
  
 (b) The Company agrees to indemnify and hold harmless each of the Collateral Agent, the Depository Bank and the Intercreditor Agent (in its individual and
agency capacity), and each other Creditor Party from, and shall reimburse each of the Collateral Agent, the Depository Bank and the Intercreditor Agent (in its individual or agency capacity) and each other Creditor Party for any present or future
claim for liability for any stamp or other similar tax and any penalties or interest with respect thereto, which may be assessed, levied or collected by any jurisdiction in connection with the Financing Documents, and the Collateral created
hereunder or under any other Collateral Document or the attachment or perfection of the security interest granted to the Collateral Agent in any Collateral. The obligations of the Company under this Section 7.11 shall survive the resignation or
removal of the Collateral Agent or the Intercreditor Agent or the termination of the other provisions of this Agreement. 
  

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 Section 7.12 Limitation on Duties in Respect of Collateral. Beyond its express duties set forth in
this Agreement or in the other Financing Documents to which it is a party as to the custody thereof, and the accounting to the Grantors and the Secured Parties for moneys received hereunder, neither the Depository Bank nor the Collateral Agent shall
have any duty (implied or otherwise) to the Grantors or the Secured Parties with respect to any Collateral in its possession or control or in the possession or control of its agent or nominee, any income thereon, or the priority or preservation of
rights against prior parties or any other rights pertaining thereto. To the extent, however, that the Collateral Agent or the Depository Bank or an agent or nominee of either of them maintains possession or control of any of the Collateral or the
Collateral Documents at any office of the Collateral Agent or the Depository Bank, the Collateral Agent or the Depository Bank shall, or shall instruct such agent or nominee to, grant the Grantors and the other Secured Parties reasonable access to
such Collateral (other than, except to the extent permitted pursuant to Article IV, the Account Collateral, the Recovery Event Proceeds Account and all funds and financial assets (including security entitlements and Cash Equivalents) from time to
time on deposit in, or credited to, any thereof) or Collateral Documents as they previously notified the Collateral Agent to be required for the conduct of their businesses, except, in the case of the Grantors, if and to the extent that the
Collateral Agent shall have received a Remedies Notice. 
  
 Section 7.13 Right to Initiate Judicial Proceedings, Etc. If the Collateral Agent shall have received a Remedies Notice, then, and during such time as such Remedies Notice shall not have been withdrawn in writing by the Required
Creditors: (a) the Collateral Agent shall have the right and power to institute and maintain such suits and proceedings as it may deem appropriate to protect and enforce the rights vested in the Collateral Agent by this Agreement and the other
Financing Documents; and (b) the Collateral Agent may, either after entry or without entry proceed by suit or suits at law or in equity to enforce such rights and to foreclose upon the Collateral and to realize upon all or, from time to time, any of
the property pledged hereunder for the benefit of the Secured Parties under the judgment or decree of a court of competent jurisdiction. 
  
 Section 7.14 Exculpatory Provisions. (a) Neither the Collateral Agent nor the Intercreditor Agent makes any representation as to the value or
condition of the security interests created hereunder or any part thereof, or as to the title of any Grantor or as to the rights and interests granted or the security afforded by this Agreement or any other Financing Document, or as to the validity,
execution (except by itself), enforceability, legality or sufficiency of this Agreement, any other Financing Document, the Secured Obligations or the Springdale Obligations and neither the Collateral Agent nor the Intercreditor Agent (in its
individual and agency capacities) shall incur any liability or responsibility in respect of any such matters. 
  
 (b) Except as expressly provided for or referenced in any Financing Document to which it is a party, none of the Collateral Agent, the Depository Bank or
the Intercreditor Agent shall be responsible for or under, nor chargeable with knowledge of the existence, the content, or the terms and conditions of, any other agreement, instrument or document. The Collateral Agent and the Depository Bank shall
not be attributed with any knowledge or information that any other department or division of Citibank or any of Citibank’s Affiliates may have from time to time. 
  

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 (c) Without prejudice to Section 4.08(d), all notices, certifications, approvals, directions,
instructions or other communication given to the Collateral Agent with respect to, or otherwise relating to, this Agreement or the other Financing Documents, in each case, by any Creditor Party or Agent (whether on its own behalf or on behalf of the
Secured Parties (or any class thereof)) shall be given in writing, signed by an Authorized Signatory of such Person and, except as otherwise expressly required under the Financing Documents, the Collateral Agent shall not be required to take any
action under any Financing Document unless it has received such written instructions. 
  
 Section 7.15 Treatment of Creditor Parties. (a) Each of the Collateral Agent and the Intercreditor Agent may treat the holders of Senior Debt Obligations as the absolute owners thereof for all purposes under
this Agreement and the other Financing Documents unless such Agent shall receive notice to the contrary from any Creditor Party or any Representative Agent. 
  
 (b) Any Person that shall be designated as the duly authorized representative of one or more of the Grantor or Creditor
Parties to act as such in connection with any matters pertaining to this Agreement, any other Financing Document or the Collateral shall present to the Collateral Agent or Intercreditor Agent such documents, including opinions of counsel, as the
Collateral Agent or Intercreditor Agent may reasonably request, in order to demonstrate to the Collateral Agent the authority of such Person to act as the representative of such Grantors or Creditor Parties. 
  
 Section 7.16 Miscellaneous. (a) Each of the Intercreditor Agent and
the Collateral Agent shall have the right at any time to seek instructions concerning the administration of its duties and obligations hereunder or any other Financing Documents from the Required Creditors or any court of competent jurisdiction. In
the event there is any disagreement between the other parties to this Agreement and the terms of this Agreement or any other applicable Financing Document do not unambiguously mandate the action the Intercreditor Agent or the Collateral Agent, as
the case may be, is to take or not to take in connection therewith under the circumstances then existing, or the Intercreditor Agent or the Collateral Agent, as the case may be, is in doubt as to what action it is required to take or not to take,
such Agent shall be entitled to refrain from taking any action until directed otherwise in writing by a request signed jointly by the Required Creditors or by order of a court of competent jurisdiction. 
  
 (b) None of the provisions of this Agreement or the other Financing Documents
shall be construed to require either the Collateral Agent or the Intercreditor Agent to expend or risk its own funds or otherwise to incur any personal financial liability in the performance of any of its duties hereunder or thereunder. Neither the
Collateral Agent nor the Intercreditor Agent shall be under any obligation to exercise any of the rights or powers vested in it by this Agreement or the other Financing Documents, at the request or direction of the Company, any other Grantor or any
Creditor Party, (i) if any action it has been requested or directed to take would be contrary to Applicable Law, or (ii) unless such Agent shall have been offered security or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities that might be incurred by it in compliance with such request or direction (including interest thereon from the time incurred until reimbursed). 
  

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 Section 7.17 Indemnification. Each of the Amended Note Noteholders and the Secured Lenders agrees
to indemnify the Collateral Agent, the Depository Bank and the Intercreditor Agent (to the extent not promptly reimbursed by the Company), ratably according to the respective amounts of the Senior Debt Obligations owed to such Creditor Party from
time to time, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind of nature whatsoever that may be imposed on, incurred by, or asserted against
the Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) in any way relating to or arising out of this Agreement or any other Financing Document to which it is a party or any action taken or omitted by the Collateral Agent,
Depository Bank or Intercreditor Agent (as applicable) under this Agreement or any other Financing Document to which it is a party (collectively, the “Indemnified Costs”); provided that no such Creditor Party shall be
liable for any portion of the Indemnified Costs found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted directly and primarily from the Collateral Agent’s, Depository Bank’s or Intercreditor
Agent’s (as applicable) gross negligence or willful misconduct. Without limiting the foregoing, each of the Amended Note Noteholders and Secured Lenders agrees to reimburse the Collateral Agent, Depository Bank or Intercreditor Agent (as
applicable) promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees and disbursements) incurred by the Collateral Agent, Depository Bank or Intercreditor Agent (as applicable) in connection with
the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or any
other Financing Document, to the extent that the Collateral Agent, the Depository Bank or the Intercreditor Agent (as applicable) is not reimbursed for such expenses by the Company. In the case of any investigation, litigation or proceeding giving
rise to any Indemnified Costs, this Section 7.17 shall apply. 
  
 Section 7.18 Publicity. No printed or other material in any language, including prospectuses, notices, reports, and promotional material which mentions “Citibank, N.A.” by name or the rights, powers, or duties of the
Collateral Agent, the Depository Bank or the Intercreditor Agent under this Agreement or any other Financing Document shall be issued by any of the parties hereto, or on such a party’s behalf, without the prior written consent of the Collateral
Agent, the Depository Bank or the Intercreditor Agent, as the case may be. 
  
 Section 7.19 Merger; Consolidation. Any corporation into which the Collateral Agent, the Depository Bank or the Intercreditor Agent may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Collateral Agent, the Depository Bank or the Intercreditor Agent shall be a party, or any corporation succeeding to the business of the Collateral Agent, the Depository
Bank or Intercreditor Agent shall be the successor of the Collateral Agent, the Depository Bank or Intercreditor Agent, as the case may be, hereunder without the execution or filing of any paper with any party hereto or any further act on the part
of any of the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding. 
  

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 ARTICLE VIII 
 OTHER AGREEMENTS 
  
 Section 8.01 Provision of Information; Meetings. (a) Each Creditor Party will, from time to time (as it deems reasonably necessary or appropriate in its sole judgment), consult with the other Creditor Parties with respect to the
Senior Debt Obligations, the affairs of the Company and its Subsidiaries and, the Collateral. 
  
 (b) Each Agent agrees to give to each other Agent, and each Representative Agent agrees to give to each of its Related Creditors, written notice of any amendment, modification or waiver to the terms of this Agreement
or any other Collateral Document requested from time to time by the Company, any other Grantor or any other Person party to this Agreement. Such notice shall include a description of the proposed terms of such amendment, modification or waiver and
shall be delivered promptly after receipt thereof by such Agent or Representative Agent, as the case may be. Any notice required to be delivered pursuant to this Section 8.01(b) shall be delivered at least two Business Days prior to the
effectiveness of any such amendment, modification or waiver and simultaneously to each Person entitled to delivery thereof. 
  
 (c) Any Representative Agent may, at any time following the occurrence and during the continuation of any Facility Event of Default, request that a
meeting or meetings of the Creditor Parties, at reasonable times and locations, and with reasonable frequency, be convened, and upon such request having been given in accordance herewith, such meetings shall be convened as provided herein. Such a
request for meeting shall be made in a written notice given to each Creditor Party in accordance herewith. Each such notice shall state the date of such meeting (which shall be not less than five Business Days nor more than 20 Business Days after
the date of such notice, unless otherwise agreed by all Creditor Parties) and a general outline of the issues to be discussed at such meeting. Any Creditor Party shall have the right to appoint any Person (including another Creditor Party) to act as
its representative at any such meeting of the Creditor Party. No Creditor Party shall be obligated to attend any such meetings. 
  
 Section 8.02 Creditor Action. (a) For all purposes of this Agreement and the other Financing Documents, action by any Representative Agent in
accordance with the terms of this Agreement and any other applicable Financing Documents shall constitute action by its Related Creditors. 
  
 (b) For all purposes of this Agreement, each Representative Agent shall act as agent for each of its Related Creditors, in each case including for the
following purposes: (A) to give or receive any notice, certificate, request, demand or other communication permitted or required to be given or received hereunder or thereunder to or from the Collateral Agent, any other Representative Agent, the
Intercreditor Agent or any other Creditor Party, (B) to vote the outstanding Senior Debt Obligations owing to such Related Creditor (in the manner authorized or directed by the relevant requisite Related Creditors in accordance with the applicable
Financing Documents), at any meeting of Creditor Parties (or class thereof) hereunder and (C) otherwise to take any action required or permitted to be taken by its Related Creditors hereunder or thereunder. To the extent that any of such parties
shall be entitled to grant any consent or approval, or cast any vote whatsoever, all of such notices, certificates, requests, demands or other 
  

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 communications in respect of any such parties only shall be given or received (as the case may be), any such votes shall
be cast and all of such actions shall be taken by its Representative Agent; provided that for the avoidance of doubt, any such votes cast by the Representative Agent shall be made on an individual Related Creditor basis rather than aggregated
for all of the Related Creditors of such Representative Agent. 
  
 ARTICLE IX 
 MISCELLANEOUS 
  
 Section 9.01 Indemnity and Expenses. (a) Each Grantor agrees to indemnify, defend and save and hold harmless each Creditor Party and each of their
Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses
(including reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from the Financing Documents (including enforcement of
this Agreement), except to the extent such claim, damage, loss, liability or expense if found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted directly and primarily from such Indemnified Party’s gross
negligence or willful misconduct. 
  
 (b) Each Grantor will
upon demand pay to the Collateral Agent or the Intercreditor Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, that the Collateral Agent or the Intercreditor
Agent may incur in connection with (i) the administration of any Financing Document to which it is a party, (ii) in the case of the Collateral Agent, the custody, preservation, use or operation of, or the sale of, collection from or other
realization upon, any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Collateral Agent, the Intercreditor Agent or any other Creditor Party hereunder or (iv) the failure by such Grantor to perform or
observe any of the provisions hereof. 
  
 (c) The indemnities
provided by the Grantors pursuant to this Agreement shall survive the expiration, cancellation, termination or modification of this Agreement or the other Financing Documents, the resignation or removal of an Agent, and the provision of any
subsequent or additional indemnity by any Person. 
  
 Section 9.02
Amendments; Waivers, Etc. (a) Subject to Section 9.02(b), no amendment, modification or waiver of any provision of this Agreement or any other Collateral Document and no consent with respect to any departure by any Grantor herefrom or
therefrom, shall be effective unless the same shall be in writing and signed by the Required Creditors and acknowledged by the Collateral Agent and the Intercreditor Agent, and then any such waiver or consent shall be effective only if in writing
and in the specific instance and for the specific purpose for which given; provided that no such amendment, waiver or consent shall: 
  
 (i) amend, modify or waive the provisions of Section 2.01 or any related definition in any manner that materially and adversely affects
the Initial Lenders or Consenting Amended Note Noteholders owed any of the Senior Debt Obligations outstanding under the Amended B Notes or the Springdale Tranche B Facility without the written consent of (A) each Initial Lender owed any such Senior
Debt Obligations and (B) so long as any Amended B Notes are outstanding, the Supermajority Consenting Noteholders; 
  

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 (ii) amend, modify or waive any of the provisions of Section 2.02 or 6.11 or any related
definition in any manner which would alter the priority of the Liens under the Collateral Documents or the priority of payment of the Senior Debt Obligations contemplated thereby without the written consent of (A) each Initial Lender (including each
Term B Lender) owed any outstanding Senior Debt Obligations at the time of any such amendment, modification or waiver, (B) the Required Replacement Senior Debt Lenders under each Replacement Senior Debt Agreement in effect at the time of any such
amendment, modification or waiver (but excluding for the avoidance of doubt the Term B Lenders as to which clause (A) shall apply) and (C) so long as any Amended Intercreditor Notes are outstanding, the Supermajority Consenting Noteholders;

  
 (iii) amend, modify or waive any of the
provisions of Section 2.03, 2.04, 2.05, 2.07, 2.08 or 6.11 which would result in any change in the ratable sharing or allocation of any repayment of the Senior Debt Obligations required thereby without the written consent of (A) each Initial Lender
(including each Term B Lender) owed any outstanding Senior Debt Obligations at the time of any such amendment, modification or waiver, (B) the Required Replacement Senior Debt Lenders under each Replacement Senior Debt Agreement in effect at the
time of any such amendment, modification or waiver (but excluding for the avoidance of doubt the Term B Lenders as to which clause (A) shall apply) and (C) so long as any Amended Intercreditor Notes are outstanding, the Supermajority Consenting
Noteholders; 
  
 (iv) (A) so long as any Amended
Intercreditor Notes are outstanding, amend, modify or waive Section 2.05(d) without the written consent of the Required Consenting Noteholders and (B) so long as any Amended Notes are outstanding, amend, modify or waive Section 2.04(b), without the
written consent of the Required Noteholders; 
  
 (v) release all or any substantial portion of the Collateral (including the Springdale Assets) in any transaction or series of related transactions or permit the creation, incurrence, assumption or existence of any Lien on any substantial
portion of the Collateral (including the Springdale Assets) in any transaction or series of related transactions to secure any Obligations other than the Senior Debt Obligations (except to the extent expressly contemplated or permitted under any
Financing Document) without the written consent of (A) each Initial Lender (including each Term B Lender) owed any outstanding Senior Debt Obligations at the time of such proposed release or creation, incurrence, assumption or permitted existence,
(B) the Required Replacement Senior Debt Lenders under each Replacement Senior Debt Agreement in effect at the time of any such proposed release or creation, incurrence or permitted existence (but excluding for the avoidance of doubt the Term B
Lenders as to which clause (A) shall apply) and (C) so long as any Amended Intercreditor Notes are outstanding, the Supermajority Consenting Noteholders; provided that notwithstanding the foregoing, any release of any amounts on deposit in,
or credited to the Recovery Event Proceeds Account other than in accordance with the terms of this Agreement or any amendment, modification, or waiver to the provisions of Article IV relating to the Recovery Event Proceeds Account shall only require
the consent of the Required Creditors; or 
  

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 (vi) so long as any Senior Debt Obligations remain outstanding under the Term B Credit
Agreement, amend, modify or waive Section 6.03(c) or change the definition of “Required Term B Lenders”, without the prior written consent of the Required Term B Lenders; 
  
 (vii) so long as any Senior Debt Obligations remain
outstanding under the Springdale Tranche B Facility, amend, modify or waive any of the provisions of Section 5.16 without the written consent of each of the Initial Lenders (including each Term B Lender) and Consenting Amended Note Noteholders owed
any of the Senior Debt Obligations; 
  
 (viii)
(A) so long as any Amended Intercreditor Notes are outstanding, change the definition of “Required Consenting Noteholders” or “Supermajority Consenting Noteholders” without the prior written consent of
the Supermajority Consenting Noteholders and (B) so long as any Amended Notes are outstanding, change the definition of “Required Noteholders” or “Supermajority Noteholders”, without the prior written
consent of the Supermajority Noteholders; 
  
 (ix) change the definition of “Required Replacement Senior Debt Lenders” without the prior written consent of the Required Replacement Senior Debt Lenders under each Replacement Senior Debt Agreement in effect at
such time (including the Required Term C Lenders); 
  
 (x) change any provision of this Section 9.02, the definition of “Required Creditors” or any other provision hereof specifying the percentage of the Initial Lenders, Amended Note Noteholders, Consenting Amended Note
Noteholders or Replacement Senior Debt Lenders required to amend, waive or otherwise modify any rights hereunder or under any other Collateral Document or make any determination or grant any consent hereunder or under any other Collateral Document,
without the written consent of (A) so long as any Amended Intercreditor Notes are then outstanding, the Supermajority Consenting Noteholders, (B) so long as any Amended C Notes are then outstanding, the Supermajority Noteholders, (C) so long as any
Senior Debt Obligations remain outstanding under the Term B Credit Agreement, the Required Term B Lenders and (D) the Required Replacement Senior Debt Lenders under each Replacement Senior Debt Agreement in effect at such time (including the
Required Term C Lenders); 
  
 and provided further that no amendment,
waiver or consent shall, unless in writing and signed by any relevant Agent in addition to the Creditor Parties required above, affect the rights or duties of such Agent under this Agreement or any other Collateral Document to which such Agent is a
party. 
  
 (b) Notwithstanding Section 9.02(a), if at any time any
Replacement Senior Debt is incurred which would require that this Agreement comply with the requirements of the SEC in connection with the qualification of this Agreement under the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aa-77bbb),

  

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 as in effect on the date such Replacement Senior Debt is incurred, the Company, when authorized by a resolution of its
Board of Directors (as evidenced by a Board Resolution delivered to the Collateral Agent, which Board Resolution shall indicate that such amendment or supplement does not have any material adverse effect on any of the Creditor Parties then owed or
holding any of the Senior Debt Obligations), and the Collateral Agent may amend or supplement this Agreement without prior notice to or the consent of any other Creditor Party; provided that the Collateral Agent shall deliver to each Creditor
Party a copy of any such amendment promptly after the execution thereof. 
  
 (c) (i) Except as otherwise specifically provided in this Agreement or any other Collateral Document, the Creditor Parties hereto may amend, modify, terminate, change or waive, or consent or agree to any amendment,
modification, termination, change or waiver of, any provision of any other Financing Document to which they are a party in accordance with the terms thereof. 
  
 (ii) Notwithstanding anything to the contrary in this Agreement or any other Financing Document, in no event shall any Creditor Party have any right to
enter into, or consent to, any amendment, waiver, supplement or other modification of any of the provisions of the Financing Documents that would (A) increase the principal of, or interest on, the outstanding principal amount of the Senior
Obligations payable to it under the Financing Documents, or any fees or other amounts payable to it under the Financing Documents; or (B) extend or postpone any date fixed for any payment of principal, interest, fees or other amounts payable under
the Financing Documents, in the case of clause (A) or (B), in any transaction or series of related transactions, without notifying each of the Representative Agents for the other Creditor Parties at least three Business Days prior thereto.

  
 Section 9.03 Subordination. (a) Each Grantor hereby
subordinates any and all debts, liabilities and other Obligations owed to such Grantor by each other Grantor (the “Subordinated Obligations”) to the Senior Debt Obligations to the extent and in the manner hereinafter set
forth in this Section 9.03: 
  
 (b) Except during the
continuance of a Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Grantor), each Grantor may receive regularly scheduled payments from any other Grantor on account of the Subordinated
Obligations. After the occurrence and during the continuance of any Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Grantor), however, unless the Required Creditors otherwise agree, no Grantor
shall demand, accept or take any action to collect any payment on account of the Subordinated Obligations. 
  
 (c) In any Insolvency Proceeding relating to any other Grantor, each Grantor agrees that each Creditor Party shall be entitled to receive payment in full
in cash of all Senior Debt Obligations owed to such Creditor Party (including all interest and expenses accruing after the commencement of a proceeding under any Bankruptcy Law, whether or not constituting an allowed claim in such proceeding
(“Post Petition Interest”)) before such Grantor receives payment of any Subordinated Obligations. 
  

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 (d) After the occurrence and during the continuance of any Default (including the commencement and
continuation of any Insolvency Proceeding relating to any other Grantor), each Grantor shall, if the Collateral Agent or the Intercreditor Agent so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee
for the Creditor Parties and deliver such payments to the Intercreditor Agent on account of the Senior Debt Obligations owed to the Creditor Parties (including all Post Petition Interest), together with any necessary endorsements or other
instruments of transfer, but without reducing or affecting in any manner the liability of such Grantor under the other provisions of this Agreement or any other Financing Document to which it is a party. 
  
 (e) After the occurrence and during the continuance of any Default (including
the commencement and continuation of any Insolvency Proceeding relating to any other Grantor), the Collateral Agent and the Intercreditor Agent are authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of
each Grantor, to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Senior Debt Obligations (including any and all Post Petition Interest), and (ii) to require each
Grantor (A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Intercreditor Agent for application to the Secured Obligations (including any and all
Post Petition Interest). 
  
 Section 9.04 Additional
Grantors. If at any time any Person is required to execute a security agreement, supplement pursuant to the terms of the Financing Document, such Person shall execute and deliver a security agreement supplement in the form of Exhibit A hereto
(each a “Security Agreement Supplement”), and thereafter (a) such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor hereunder, and each reference in this
Agreement and the other Financing Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, and each reference in this Agreement and the other Financing Documents to “Collateral” shall
also mean and be a reference to the Collateral of such Additional Grantor, and (ib) the supplemental schedules attached to each Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules 3.01(a), 3.01(b),
3.01(f), 3.01(g), 5.01(h), 5.04(b) and A-1, respectively, hereto, and the Collateral Agent may attach such supplemental schedules to such Schedules; and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented
pursuant to each Security Agreement Supplement. 
  
 Section
9.05 Security Interest Absolute and Waivers. (a) The Obligations of each Grantor under or in respect of this Agreement or any other Collateral Document to which such Grantor is a party are independent of the Senior Debt Obligations or any
other Obligations of any other Grantor under or in respect of the Financing Documents, and a separate action or actions may be brought and prosecuted against each Grantor to enforce this Agreement or any other Collateral Document to which such
Grantor is a party, irrespective of whether any action is brought against the Company or any other Grantor or whether the Company or any other Grantor is joined in any such action or actions. All rights of the Collateral Agent and the other Secured
Parties and the pledge, assignment and security interest hereunder, and all Obligations of each Grantor hereunder, shall be irrevocable, absolute and unconditional irrespective of, and each Grantor hereby irrevocably waives (to the maximum extent
permitted by applicable law) any defenses it may now have or may hereafter acquire in any way relating to, any or all of the following: 
  
 (i) any lack of validity or enforceability of any Financing Document or any other agreement or instrument relating thereto; 
  

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 (ii) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Senior Debt Obligations or any other Obligations of any Grantor under or in respect of the Financing Documents or any other amendment or waiver of or any consent to any departure from any Financing Document, including any increase in
the Senior Debt Obligations resulting from the extension of additional credit to any Grantor or any of its Subsidiaries or otherwise; 
  
 (iii) any taking, exchange, release or non-perfection of any Collateral or any other collateral, or any taking, release or amendment or
waiver of or consent to departure from any guaranty, for all or any of the Senior Debt Obligations; 
  
 (iv) any manner of application of any Collateral or any other collateral, or proceeds thereof, to all or any of the Senior Debt
Obligations, or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Senior Debt Obligations or any other Obligations of any Grantor under or in respect of the Financing Documents or any other
assets of any Grantor or any of its Subsidiaries; 
  
 (v) any change, restructuring or termination of the corporate structure or existence of any Grantor or any of its Subsidiaries; 
  
 (vi) any failure of any Secured Party to disclose to any Grantor any information relating to the business, condition (financial or
otherwise), operations, performance, assets, nature of assets, liabilities or prospects of any other Grantor now or hereafter known to such Secured Party (each Grantor waiving any duty on the part of the Secured Parties to disclose such
information); 
  
 (vii) the failure of any other
Person to execute or deliver this Agreement or any other Collateral Document, guaranty or agreement or the release or reduction of liability of any Grantor or other grantor or surety with respect to the Senior Debt Obligations; or 
  
 (viii) any other circumstance (including any statute of
limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, such Grantor or any other Grantor or a third party grantor of a security interest.

  
 (b) This Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Secured Obligations or the Springdale Obligations, as the case may be, is rescinded or must otherwise be returned by any Secured Party or by any other Person upon the
insolvency, bankruptcy or reorganization of any Grantor or otherwise, all as though such payment had not been made. 
  

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 (c) Each Grantor hereby unconditionally and irrevocably waives promptness, diligence, notice of
acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Secured Obligations or the Springdale Obligations and this Agreement or any other
Collateral Document to which such Grantor is a party and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against any Grantor or any other
Person or any Collateral. 
  
 (d) Each Grantor hereby
unconditionally and irrevocably waives any right to revoke this Agreement or any other Collateral Document to which such Grantor is a party and acknowledges that this Agreement or any other Collateral Document to which such Grantor is a party is
continuing in nature and applies to all Secured Obligations and, to the extent applicable, the Springdale Obligations, whether existing now or in the future. 
  
 (e) Each Grantor hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election of
remedies by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Grantor or other rights of such Grantor to proceed
against any of the other Grantors, any other guarantor or any other Person or any Collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the Obligations of such Grantor hereunder. 
  
 (f) Each Grantor acknowledges that the Collateral Agent may, without notice
to or demand upon such Grantor and without affecting the liability of such Grantor under this Agreement or any other Collateral Document to which such Grantor is a party, foreclose under any Mortgage by nonjudicial sale (subject to Applicable Law),
and each Grantor hereby waives any defense to the recovery by the Collateral Agent and the other Secured Parties against such Grantor of any deficiency after such nonjudicial sale and any defense or benefits that may be afforded by Applicable Law.

  
 (g) Each Grantor hereby unconditionally and irrevocably waives
any duty on the part of any Secured Party to disclose to such Grantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Grantor or any of its
Subsidiaries now or hereafter known by such Secured Party. 
  
 (h)
Each Grantor and each of the Creditor Parties confirms that it is the intention of all such Persons that this Agreement, the other Collateral Documents and the Obligations of each Grantor hereunder or thereunder do not constitute a fraudulent
transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Agreement, any other Collateral
Document and the Obligations of each Grantor hereunder or thereunder or in connection with any Insolvency Proceeding in respect of any Grantor. To effectuate the foregoing intention, the Collateral Agent, the other Secured Parties and the Grantors
hereby irrevocably agree that the Obligations of each Grantor under this Agreement and the other Collateral Documents at any time shall be limited to the maximum amount as will result in the Obligations of such Grantor under this Agreement and the
other Collateral Documents not constituting a fraudulent transfer or conveyance. 
  

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 (i) Each Grantor acknowledges that it will receive substantial direct and indirect benefits from the
financing arrangements contemplated by the Financing Documents and that the waivers set forth in this Section 9.05 are knowingly made in contemplation of such benefits. 
  
 Section 9.06 Notices; Etc. (a) All notices and other communications provided for hereunder shall be in writing
(including telecopier communication) and mailed, telecopied or otherwise delivered, in the case of any Grantor or any Agent, addressed to it at its address specified on the signature pages hereto; or, as to any party, at such other address as shall
be designated by such party in a written notice to the other parties. All such notices and other communications shall, when mailed, telecopied or otherwise delivered, be effective when deposited in the mails, telecopied or otherwise delivered (or
confirmed by a signed receipt), respectively, addressed as aforesaid; except that notices and other communications to the Collateral Agent shall not be effective until received by it. Delivery by telecopier of an executed counterpart of any
amendment or waiver of any provision of this Agreement or any Exhibit, Schedule or Appendix hereto shall be effective as delivery of an original executed counterpart thereof. 
  
 (b) Each of the Collateral Agent and the Intercreditor Agent shall promptly forward to each Representative Agent copies of
any notice, certificate, report, instrument, demand, request, direction, instruction, waiver, receipt, consent or other document that it receives from any other party hereto or to any other Financing Document to which it is a party. 
  
 Section 9.07 Continuing Security Interest; Assignments Under the Financing
Documents. This Agreement and each other Collateral Document shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Senior Debt
Obligations, (ii) the Final Maturity Date and (iii) the termination or expiration of all Commitments, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent and the
Intercreditor Agent hereunder, to the benefit of the Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Creditor Party may assign, sell or otherwise transfer all
or any portion of its rights and obligations under any Facility (including all or any portion of its Commitment, the Senior Debt Obligations owing to it and the Facility Note or Facility Notes, if any, held by it) to any other Person, and such other
Person shall thereupon become vested with all the benefits in respect thereof granted to such Creditor Party herein or otherwise, in each case as provided in the Financing Documents relating to each such Facility. Each of the Collateral Agent and
the Intercreditor Agent shall promptly forward to each Representative Agent copies of any notice, certificate, report, instrument, demand, request, direction, instruction, waiver, receipt, consent or other document that it receives from any other
Creditor Party hereto or to any other Financing Document to which it is a party. 
  
 Section 9.08 Release and Termination. (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in accordance with the terms of the Financing Documents (other than sales
of Inventory in the ordinary course of business), the Collateral Agent will, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted hereby or under any other Collateral 
  

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 Document; provided that (a) at the time of such request and such release no Default shall have occurred and be
continuing, (b) such Grantor shall have delivered to the Collateral Agent, at least ten Business Days prior to the date of the proposed release, a written request for release describing the item of Collateral and the terms of the sale, lease,
transfer or other disposition in reasonable detail, including the price thereof and any expenses in connection therewith, together with a form of release for execution by the Collateral Agent and a certificate of such Grantor to the effect that the
transaction is in compliance with the Financing Documents and as to such other matters as the Collateral Agent may request and (c) the proceeds of any such sale, lease, transfer or other disposition required to be applied, or any payment to be made
in connection therewith, in accordance with Section 2.03 shall, to the extent so required, be paid or made to, or in accordance with the instructions of, the Collateral Agent when and as required under Section 2.03. 
  
 (b) Upon the latest of (i) the payment in full in cash of the Senior Debt
Obligations, (ii) the Final Maturity Date and (iii) the termination or expiration of all Commitments, the pledge and security interest granted hereby shall terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any
such termination, the Collateral Agent will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 
  
 Section 9.09 Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 Section 9.10 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, then to the extent permitted by law, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 9.11 Integration. This Agreement represents the agreement of the parties hereto with respect to the subject matter hereof, and there are no
promises, undertakings, representations or warranties by any party relative to subject matter hereof not expressly set forth or referred to herein or in the other Financing Documents. 
  
 Section 9.12 No Partnership. Nothing contained in this Agreement and
no action by any Creditor Party is intended to constitute or shall be deemed to constitute the Creditor Parties (or any of them) a partnership, association, joint venture or other entity. 
  
 Section 9.13 No Reliance. No Creditor Party has relied on any
representation or warranty of any other Creditor Party with respect to this Agreement and the transactions contemplated hereunder unless such representation or warranty has been set forth expressly in this Agreement. 
  
 Section 9.14 Third Party Beneficiaries. All undertakings, agreements,
representations and warranties contained in this Agreement and the other Collateral Documents are solely for the benefit of the Creditor Parties and their respective successors and permitted 
  

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 assigns, and (a) there are no other parties (including any Affiliates of any Grantor) who are intended to be benefited in
any way by this Agreement and the other Collateral Documents and (b) nothing herein shall give the Company, any other Grantor or any of their respective Affiliates or any other Person (other than a Creditor Party) any benefit or any legal or
equitable right or remedy under this Agreement or any other Collateral Document. The existence of this Agreement and the other Collateral Documents shall not commit or obligate the Creditor Parties to make any Advances or consummate any of the other
transactions contemplated by the Financing Documents. For the avoidance of doubt no Amended Note Noteholder holding any Amended C Note from time to time shall be entitled to any prepayment or redemption in respect of its Senior Debt Obligations
pursuant to the terms of Article II or the benefit of any Lien or security interest created in favor of the Secured Parties (including, without limitation, any Enforcement Proceeds relating thereto). 
  
 Section 9.15 No Impairment. Nothing in this Agreement is intended or
shall be construed to impair, diminish or otherwise adversely affect any other rights the Creditor Parties may have or may obtain against the Company, any other Grantor or any other Person. 
  
 Section 9.16 Equitable Remedies. Each party to this Agreement
acknowledges that the breach by it of any of the provisions of this Agreement is likely to cause irreparable damage to the other party. Therefore, the relief to which any party shall be entitled in the event of any such breach or threatened breach
shall include, but not be limited to, a mandatory injunction for specific performance, injunctive or other judicial relief to prevent a violation of any of the provisions of this Agreement, damages and any other relief to which it may be entitled at
law or in equity. 
  
 Section 9.17 Remedies. (a) Other than
as stated expressly herein, no remedy herein conferred upon the Collateral Agent or any other Creditor Party is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or the other Financing Documents, or now or hereafter existing at law or in equity or by statute or otherwise. 
  
 (b) As between the Grantors and each Creditor Party, it is agreed that the amounts payable by the Company at any time in respect of the Senior Debt
Obligations shall be a separate and independent debt and each Creditor Party shall be entitled to protect and enforce its rights arising out of this Agreement or the other Financing Documents and its right, pursuant to the terms of any Financing
Document to which it is a party, to cancel or suspend its Commitments thereunder and to accelerate the maturity of any of the Senior Debt Obligations and, except as aforesaid, it shall not be necessary for any other Creditor Party to consent to, or
be joined as an additional party in, any proceedings for such purposes. 
  
 (c) In case any Creditor Party or the Collateral Agent shall have proceeded to enforce any right, remedy or power under this Agreement or any other Financing Document and the proceeding for the enforcement thereof shall have been
discontinued or abandoned for any reason or shall have been determined adversely to such Creditor Party, then and in every such case the Grantors and the Creditor Parties shall, subject to any effect of or determination in such proceeding, severally
and respectively be restored to their former positions and rights under this Agreement or any other Financing Document and thereafter all rights, remedies and powers of the Creditor Parties shall continue as though no such proceeding had been taken.

  

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 Section 9.18 Limitations. (a) The obligations, liabilities or responsibilities of any party
hereunder shall be limited to those obligations, liabilities or responsibilities expressly set forth and attributed to such party pursuant to this Agreement or otherwise applicable under Applicable Law. 
  
 (b) In no event shall any Indemnified Party be liable for, and each of the
Grantors hereby agrees not to assert any claim against any Indemnified Party, on any theory of liability, for consequential, incidental, indirect, punitive or special damages arising out of or otherwise relating to the Facility Notes, this
Agreement, the other Financing Documents, any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Advances. 
  

Section 9.19 Survival. Notwithstanding anything in this Agreement to the contrary, Sections 7.10, 7.11, 7.17, 9.01, 9.19, 9.20, 9.21, 9.22, 9.23
and 9.24 shall survive any termination of this Agreement. In addition, each representation and warranty made or deemed to be made hereunder shall survive the making of such representation and warranty, and no Creditor Party shall be deemed to have
waived, by reason of making any Advance or acceptance of any Facility Note or making any payment pursuant thereto, any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding that
such Creditor Party may have had notice or knowledge or reason to believe that such representation or warranty was false or misleading at the time such Advance was made or such Facility Note was issued. 
  
 Section 9.20 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 Section 9.21 The Mortgages. In the event that any of the Collateral hereunder is also subject to a valid and enforceable Lien under the terms of any Mortgage and the terms of such Mortgage are inconsistent with the terms of this
Agreement, then with respect to such Collateral, the terms of such Mortgage shall be controlling in the case of fixtures and real estate leases, letting and licenses of, and contracts and agreements relating to the lease of, real property, and the
terms of this Agreement shall be controlling in the case of all other Collateral. 
  
 Section 9.22 Jurisdiction, Etc. (a) Each of the parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court
of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any of the other Financing Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to
the fullest extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the 
  

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 judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement or any of the other Financing Documents in the courts of any jurisdiction. 
  
 (b) Each of the parties irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now
or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of the other Financing Documents to which it is a party in any New York State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and agrees not to plead or claim, any right of immunity from legal action, suit
or proceeding, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, from execution of judgment, or from any other legal
process or proceeding for the giving of any relief or for the enforcement of any judgment, and consents to such relief and enforcement against it, its assets and its revenues in any jurisdiction, in each case with respect to any matter arising out
of, or in connection with, this Agreement. Each of the parties hereto waives personal service of process and consents to service of process by certified or registered mail, return receipt requested, directed to it at the address last specified for
notices hereunder, and such service shall be deemed completed ten days after the same is so mailed. 
  
 Section 9.23 WAIVER OF JURY TRIAL. EACH OF THE PARTIES IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER FINANCING DOCUMENTS OR THE ACTIONS OF ANY GRANTOR IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

  
 Section 9.24 Confidentiality. (a) The Company, each
other Grantor and each Creditor Party hereby agree that the Company, each other Grantor and each Creditor Party (and each of their respective, and their respective Affiliates’, directors, officers, employees, agents and advisors) is, and has
been from the commencement of discussions with respect to the transactions contemplated by the Financing Documents, permitted to disclose to any and all Persons, without limitation of any kind, the structure and tax aspects (within the meaning of
Sections 6011 and 6111 of the Code and the regulations promulgated thereunder) of the transactions contemplated by the Financing Documents, and all materials of any kind (including opinions or other tax analyses) that are or have been delivered to
the Company, any other Grantor or any Creditor Party related to such structure and tax aspects. In this regard, the Company, each other Grantor and each Creditor Party acknowledges and agrees that its disclosure of the structure or tax aspects of
the transactions contemplated by the Financing Documents is not limited in any way by an express or implied understanding or agreement, oral or written (whether or not such understanding or agreement is legally binding). Furthermore, the Company,
each other Grantor and each Creditor Party acknowledges and agrees that it does not know or have reason to know that its use or disclosure of information relating to the structure or tax aspects of the transactions contemplated by the Financing
Documents is limited in any other manner (such as where the transactions contemplated by the Financing Documents is claimed to be proprietary or exclusive) for the benefit of any other Person. To the extent that disclosure of the structure or tax
aspects of 
  

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 the transactions contemplated by the Financing Documents by the Company, any other Grantor or any Creditor Party is
limited by any existing agreement between the Company, any other Grantor or any Creditor Party, such limitation is agreed to be void ab initio and such agreement is hereby amended to permit disclosure of the structure and tax aspects of the
transactions contemplated by the Financing Documents as provided in this Section 9.24(a). 
  
 (b) Subject to clause (a) and, with respect to each of the Amended Note Noteholders to the terms of any confidentiality agreement in existence as of the
Amendment Date between the Company and such Amended Note Noteholder, no Creditor Party may disclose to any Person any confidential, proprietary or non-public information of the Company or any other Grantor (such information being referred to
collectively herein as the “Company Information”), except that each Creditor Party may disclose Company Information (i) to its and its Affiliates’ employees, officers, directors, agents, swap counterparties, independent
or internal auditors and advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Company Information and instructed to keep such Company Information confidential on
substantially the same terms as provided herein), (ii) to the extent requested by any regulatory authority, (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this
Agreement, (v) in connection with the exercise of any remedies hereunder or under any other Financing Document or any suit, action or proceeding relating to this Agreement or any other Financing Document or the enforcement of rights hereunder or
thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 9.24, to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this
Agreement, including, in the case of any securitization or collateralization of, or other similar transaction relating to, its Commitments or Senior Debt Obligations by any Creditor Party, disclosure to any necessary Person in connection with such
securitization, collateralization or other transaction (including any funding vehicle organized to undertake or effectuate such securitization, collateralization or other transaction, its lenders, sureties, reinsurers, swap counterparties,
guarantors or credit liquidity enhancers, their respective directors, officers, and advisors, and any rating agency), (vii) to the extent such Company Information (A) is or becomes generally available to the public on a non-confidential basis other
than as a result of a breach of this Section 9.24 by such Creditor Party, or (B) is or becomes available to such Creditor Party on a nonconfidential basis from a source other than the Company and (viii) with the consent of the Company. 

 
 (c) Subject to clause (a), neither the Company nor any other Grantor may
disclose to any Person the amount or terms of any fees payable to any Creditor Party (such information being collectively referred to herein as the “Facility Information”), except that each Grantor may disclose the Facility
Information (i) to its and its Affiliates’ employees, officers, directors, agents and advisors who have a need to know the Facility Information in connection with this Agreement and the transactions contemplated hereby or (ii) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process. 
  

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