Document:

Exhibit 10.1

 

	CONformed copy
	 
	INFLATION-LINKED TERM LOAN AGREEMENT
	 
	DATED 24 May 2016
	 
	
        Between

         

        WESTERN POWER DISTRIBUTION (EAST MIDLANDS)
        PLC

        as the Company

         

        and

         

        THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

        as Lender

         

         

         

        GBP100,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
         

        ALLEN
        & OVERY

         

        Allen &
        Overy LLP

         

	 	0097590-0000008 BK:36062041.1	 

    	 

    	 

    

Contents

ClausePage

	1.   Interpretation	1
	2.   The Facility	13
	3.   Purpose	13
	4.   Conditions Precedent	14
	5.   Drawdown	14
	6.   Repayment	14
	7.   Prepayment and Cancellation	15
	8.   Interest	16
	9.   Tax Gross-Up and Indemnities	17
	10.  Indexation	23
	11.  Increased Costs	26
	12.  Mitigation	27
	13.  Payments	27
	14.  Representations	28
	15.  Information Covenants	32
	16.  Financial Covenants	34
	17.  General Covenants	37
	18.  Default	42
	19.  Evidence and Calculations	46
	20.  Indemnity	46
	21.  Expenses	47
	22.  Amendments and Waivers	48
	23.  Changes to the Parties	48
	24.  Confidentiality and Disclosure of Information	51
	25.  Set-off	53
	26.  Severability	53
	27.  Counterparts	54
	28.  Notices	54
	29.  Language	55
	30.  Governing Law	55
	31.  Enforcement	55
	 	 
	Schedule	 
	 	 
	1.
      Conditions Precedent Document	57
	2.   Form of Transfer Certificate	58
	3.   Form of Compliance Certificate	61
	4.   Form of Subordination Deed	62
	 	 
	Annex	 
	 	 
	1.   Form of Subordinated Creditor Accession Deed	67
	2.   Form of Certificate	70
	 	 
	 	 
	Signatories	73

 

    	 

    	 

    

THIS AGREEMENT is dated 24 May
2016 and made

BETWEEN:

		(1)	WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC (registered number 02366923) (the Company);
and

		(2)	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (the Lender);

IT IS AGREED as follows:

		1.	Interpretation

		1.1	Definitions

In this Agreement:

2008 ISDA
Inflation Derivatives Definitions means the 2008 ISDA Inflation Derivatives Definitions published by ISDA in 2008.

Acceptable
Bank means:

		(a)	the Lender;

		(b)	a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced
debt obligations of A- or higher by Standard & Poor's Rating Services or A- or higher by Fitch Ratings Ltd or A3 or higher
by Moody's Investor Services Limited or a comparable rating from an internationally recognised credit rating agency; or

		(c)	any other bank or financial institution approved by the Lender (acting reasonably).

Acceptable
Jurisdiction means:

		(a)	the United States of America;

		(b)	the United Kingdom; or

		(c)	any other member state of the European Union or any Participating Member State where such country
has long term sovereign credit rating of A- or higher by Standard & Poor's Rating Services or A3 or higher from Moody's Investor
Services Limited or A- or higher from Fitch Ratings Ltd.

Accretion
Mechanism means, in relation to the Loan, multiplying £100,000,000 (being the Commitment) by the Index Ratio calculated
on the Rate Fixing Day for the then current Interest Period, unless:

		(a)	such adjustment results in an amount less than £100,000,000, in which case the Loan is £100,000,000;
or

		(b)	such adjustment results in an amount greater than £200,000,000, in which case the Loan is
£200,000,000.

Act means
the Electricity Act 1989 and, unless the context otherwise requires, all subordinate legislation made pursuant thereto.

    	1 

    	 

    

Affected
Party means, in respect of a termination of the Related Swap Agreement:

		(a)	if there are two Affected Parties (as defined in section 14 of the 2002 ISDA Master Agreement)
with respect to the termination of the Related Swap Agreement, both the Lender and its counterparty to the Related Swap Agreement;
or

		(b)	if there is only one Affected Party with respect to the termination of the Related Swap Agreement,
whichever of the Lender or its counterparty to the Related Swap Agreement is the Affected Party (as defined in section 14 of the
2002 ISDA Master Agreement).

Affiliate
means a Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company.

Applicable
Accounting Principles means those accounting principles, standards and practices generally accepted in the United Kingdom and
the accounting and reporting requirements of the Companies Act 2006, in each case as used in the Original Financial Statements.

Authority
means The Gas and Electricity Markets Authority established under Section 1 of the Utilities Act 2000.

Balancing
and Settlement Code means the document, as modified from time to time, setting out the electricity balancing and settlement
arrangements designated by the Secretary of State and adopted by The National Grid Company plc (Registered No. 2366977) or its
successor pursuant to its transmission licence.

Balancing
and Settlement Code Framework Agreement means the agreement of that title, in the form approved by the Secretary of State,
as amended from time to time, to which the Company is a party and by which the Balancing and Settlement Code is made binding upon
the Company.

Base Index
Figure means the UKRPI figure published for March 2016 by the Office of National Statistics, being 261.1.

Basel III
means:

		(a)	the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel
III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework
for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical
capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented
or restated;

		(b)	the rules for global systematically important banks contained in "Global systematically important
banks: assessment methodology and the additional loss absorbency requirement – Rules text" published by the Basel Committee
on Banking Supervision in November 2011, as amended, supplemented or restated; and

		(c)	any further guidance or standards published by the Basel Committee on Banking Supervision relating
to "Basel III".

Business
Day means a day (other than a Saturday or a Sunday) on which commercial banks are open in London.

Code
means the US Internal Revenue Code of 1986.

    	2 

    	 

    

Commitment
means £100,000,000, or zero if the Commitment has been cancelled or transferred by the Lender pursuant to this Agreement.

Compliance
Certificate means a certificate substantially in the form of Schedule 3 (Form of Compliance Certificate) setting out, among
other things, calculations of the financial covenants.

Confidential
Information means all information relating to the Company, the Group, the Finance Documents or the Loan of which the Lender
becomes aware in its capacity as, or for the purpose of becoming, the Lender or which is received by the Lender in relation to,
or for the purpose of becoming the Lender under, the Finance Documents or the Loan from any member of the Group or any of its advisers
in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information but excludes information that:

		(a)	is or becomes public information other than as a direct or indirect result of any breach by the
Lender of Clause 24 (Confidentiality and Disclosure of Information); or

		(b)	is identified in writing at the time of delivery as non-confidential by any member of the Group
or any of its advisers; or

		(c)	is known by the Lender before the date the information is disclosed to it by the relevant member
of the Group or is lawfully obtained by the Lender after that date, from a source which is, as far as the Lender is aware, unconnected
with the Group and which, in either case, as far as the Lender is aware, has not been obtained in breach of, and is not otherwise
subject to, any obligation of confidentiality.

Confidentiality
Undertaking means a confidentiality undertaking substantially in a recommended form of the LMA or in any other form agreed
between the Company and the Lender.

Contribution
Notice means a contribution notice issued by the Pensions Regulator under section 38 or section 47 of the Pensions Act 2004.

CRD IV
means:

		(a)	Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013
on prudential requirements for credit institutions and investment firms; and

		(b)	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to
the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive
2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

CTA means
the Corporation Tax Act 2009.

Default
means:

		(a)	an Event of Default; or

		(b)	an event which would be (with the lapse of time, the expiry of a grace period, the giving of notice
or the making of any determination under the Finance Documents or any combination of them) an Event of Default.

Disruption
Event means either or both of:

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		(a)	a material disruption to those payment or communications systems or to those financial markets
which are, in each case, required to operate in order for payments to be made in connection with the Finance Documents (or otherwise
in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is
beyond the control of, any of the Parties; or

		(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related
nature) to the treasury or payments operations of a Party preventing that, or any other Party:

		(i)	from performing its payment obligations under the Finance Documents; or

		(ii)	from communicating with other Parties in accordance with the terms of the Finance Documents,

and which (in either such case)
is not caused by, and is beyond the control of, the Party whose operations are disrupted.

Dodd-Frank
means the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, 124 stat. 1376 (2010) and all requests,
rules, guidelines or directives in connection therewith.

Drawdown
Date means 31 May 2016.

Environment
means humans, animals, plants and all other living organisms including the ecological systems of which they form part and the following
media:

		(a)	air (including, without limitation, air within natural or man-made structures, whether above or
below ground);

		(b)	water (including, without limitation, territorial, coastal and inland waters, water under or within
land and water in drains and sewers); and

		(c)	land (including, without limitation, land under water).

Environmental
Claim means any claim, proceeding, formal notice or investigation by any person in respect of any Environmental Law.

Environmental
Law means any applicable law or regulation which relates to:

		(a)	the pollution or protection of the Environment;

		(b)	the conditions of the workplace; or

		(c)	the generation, handling, storage, use, release or spillage of any substance which, alone or in
combination with any other, is capable of causing harm to the Environment, including, without limitation, any waste.

Event of
Default means an event specified as such in this Agreement.

Facility
Office means the office notified by the Lender in writing to the Company on or before the date of this Agreement through which
it will perform its obligations under this Agreement (or, in the case of a New Lender, the office notified to the Company in writing
on or prior to the date on which it becomes a New Lender) or such other office as it may from time to time select by not less than
five Business Days' notice to the Company.

    	4 

    	 

    

FATCA
means:

		(a)	sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

		(b)	any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating
to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation
of paragraph (a) above; or

		(c)	any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal
Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

FATCA Application
Date means:

		(a)	in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code
(which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

		(b)	in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code
(which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources
within the US), 1 January 2019; or

		(c)	in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling
within paragraphs (a) or (b) above, 1 January 2019,

or, in each case, such other date
from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after
the date of this Agreement.

FATCA Deduction
means a deduction or withholding from a payment under a Finance Document required by FATCA.

FATCA Exempt
Party means a Party that is entitled to receive payments free from any FATCA Deduction.

Final Maturity
Date means 31 May 2026.

Finance Document
means:

		(a)	this Agreement;

		(b)	a Transfer Certificate; or

		(c)	any other document designated as such by the Lender and the Company.

Financial
Indebtedness means any indebtedness for or in respect of:

		(a)	moneys borrowed;

		(b)	any acceptance credit;

		(c)	any bond, note, debenture, loan stock or other similar instrument;

		(d)	any redeemable preference share;

    	5 

    	 

    

		(e)	any finance or capital lease;

		(f)	receivables sold or discounted (otherwise than on a non-recourse basis);

		(g)	the acquisition cost of any asset to the extent payable after its acquisition or possession by
the party liable where the deferred payment is arranged primarily as a method of raising finance or financing the acquisition of
that asset;

		(h)	any derivative transaction protecting against or benefiting from fluctuations in any rate or price
(and, except for non-payment of an amount, the then mark to market value of the derivative transaction will be used to calculate
its amount);

		(i)	any other transaction (including any forward sale or purchase agreement) which has the commercial
effect of a borrowing;

		(j)	any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit
or any other instrument issued by a bank or financial institution; or

		(k)	any guarantee, indemnity or similar assurance against financial loss of any person in respect of
any item referred to in paragraphs (a) to (j) above.

Financial
Support Direction means a financial support direction issued by the Pensions Regulator under section 43 of the Pensions Act
2004.

Fixed Rate
means 49.75bps (being 0.4975 per cent.).

Group
means the Company and its Subsidiaries.

Holding Company
means in relation to a person, any other person in respect of which it is a Subsidiary.

Increased
Cost means:

		(a)	an additional or increased cost;

		(b)	a reduction in the rate of return under a Finance Document or on the Lender's (or its Affiliate's)
overall capital; or

		(c)	a reduction of an amount due and payable under any Finance Document,

which is incurred or suffered
by the Lender or any of its Affiliates but only to the extent attributable to the Lender having entered into any Finance Document
or funding or performing its obligations under any Finance Document.

Index means
the UKRPI or any Successor Index determined in accordance with the terms of this Agreement.

Index Figure
means, in respect of an Interest Period, the UKRPI figure published by the Office of National Statistics for the Reference
Month falling two calendar months prior to the month in which the Interest Payment Date falls for such Interest Period.

Interest
Payment Amount has the meaning given to that term in Clause 8.1 (Calculation of interest).

    	6 

    	 

    

Index Ratio
means the Index Figure divided by the Base Index Figure (rounded to five decimal places).

Index Sponsor
means the entity that publishes or announces the Index Figure.

Interest
Payment Date means the last day of each Interest Period.

Interest
Period means each period determined in accordance with Clause 8.3 (Interest Periods).

ISDA Inflation
Derivatives Definitions means the 2008 ISDA Inflation Derivatives Definitions as published by the International Swaps and Derivatives
Association, Inc., as the same may be amended, supplemented or substituted on or prior to the Drawdown Date.

ITA means
the Income Tax Act 2007.

Legal Reservations
means:

		(a)	the principle that equitable remedies may be granted or refused at the discretion of a court and
the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

		(b)	the time barring of claims under the Limitation Act 1980 and the Foreign Limitation Periods Act
1984, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of UK stamp duty may
be void and defences of set-off or counterclaim;

		(c)	similar principles, rights and defences under the laws of any jurisdiction in which a member of
the Group or a Holding Company of the Company is incorporated; and

		(d)	any other matters which are set out as qualifications or reservations as to matters of law of general
application in any legal opinion provided under Schedule 1 (Conditions Precedent Documents).

Licence
means:

		(a)	the electricity distribution licence made and treated as granted to the Company under Section 6(1)(c)
of the Act pursuant to a licensing scheme made by the Secretary of State under Part II of Schedule 7 to the Utilities Act 2000
on 28 September 2001; or

		(b)	any statutory amendment or replacement licence or licences granted pursuant to the Utilities Act
2000 which permit the Company to distribute electricity in the area it is certified to operate in.

LMA means
the Loan Market Association.

Loan
means the loan made or to be made under this Agreement as adjusted on each Interest Payment Date in accordance with the Accretion
Mechanism.

Mandatory
Prepayment Event has the meaning given to that term in Clause 10.1 (Delay or Cessation of Publication).

Material
Adverse Effect means a material adverse effect on:

		(a)	the business, assets or financial condition of the Group taken as a whole;

    	7 

    	 

    

		(b)	the ability of the Company to perform its payment obligations under the Finance Documents or its
obligations under Clauses 16.3 (Interest Cover) or 16.4 (Asset Cover) of this Agreement; or

		(c)	the validity or enforceability of the Finance Documents or the rights or remedies of any Finance
Party under any of the Finance Documents.

Material
Subsidiary means, at any time, a Subsidiary of the Company whose gross assets or gross revenues (on a consolidated basis and
excluding intra-Group items) then equal or exceed 10 per cent. of the gross assets or gross revenues of the Group.

For this purpose:

		(a)	the gross assets or gross revenues of a Subsidiary of the Company will be determined from its financial
statements (consolidated if it has Subsidiaries) upon which the latest audited financial statements of the Group have been based;

		(b)	if a Subsidiary of the Company becomes a member of the Group after the date on which the latest
audited financial statements of the Group have been prepared, the gross assets or gross revenues of that Subsidiary will be determined
from its latest financial statements;

		(c)	the gross assets or gross revenues of the Group will be determined from the Company's latest audited
financial statements, adjusted (where appropriate) to reflect the gross assets or gross revenues of any company or business subsequently
acquired or disposed of; and

		(d)	if a Material Subsidiary disposes of all or substantially all of its assets to another Subsidiary
of the Company, it will immediately cease to be a Material Subsidiary and the other Subsidiary (if it is not already) will immediately
become a Material Subsidiary; the subsequent financial statements of those Subsidiaries and the Group will be used to determine
whether those Subsidiaries are Material Subsidiaries or not.

If there is a dispute as to whether
or not a company is a Material Subsidiary, a certificate of the auditors of the Company will be, in the absence of manifest error,
conclusive.

New Lender
has the meaning given to that term in Clause 23 (Changes to the Parties).

OFGEM
means the Office of Gas and Electricity Markets.

Original
Financial Statements means the audited consolidated financial statements of the Company for the year ended 31 March 2015.

Overnight
LIBOR means, for any day, the rate for deposits in Sterling having an overnight maturity (or a maturity as nearly as may be
to an overnight maturity) which appears on the appropriate page of the Bloomberg screen (or, if applicable, an equivalent screen
of another information provider) as of 11.00 a.m. on such day (or if such a day is not a Business Day, on the immediately preceding
Business Day) or, if such rate does not appear on the appropriate page of the Bloomberg screen (or, if applicable, an equivalent
screen of another information provider), the rate determined by the Lender on the basis of the average of the rates at which deposits
in Sterling are offered to prime banks in the London Interbank Market by the Reference Banks, at approximately 11.00 a.m. on such
day and for a comparable period.

Party
means a party to this Agreement.

    	8 

    	 

    

Pensions
Regulator means the body corporate called the Pensions Regulator established under Part I of the Pensions Act 2004.

PPL means
PPL Corporation, a company incorporated in Pennsylvania, U.S.A. whose head office is in Two N 9th Street, Allentown, PA18101, Pennsylvania,
U.S.A., registered number 2570936.

PUHCA
means the Public Utility Holding Company Act of 2005, as amended, of the United States of America.

Qualifying
Lender has the meaning given to such term in Clause 9.1 (Definitions)).

Quasi-Security
Interest has the meaning given to such term in Clause 17.5 (Negative pledge).

Rate Fixing
Day means, in respect of an Interest Period, the day falling five Business Days prior to the Interest Payment Date for such
Interest Period.

Reference
Banks means the principal London offices of such banks as may be appointed by the Lender in consultation with the Company and
with the consent of the bank so appointed.

Reference
Gilt means such bond selected by the Lender and issued on or before the Drawdown Date by or on behalf of HM Treasury which
pays a coupon or redemption amount which is calculated by reference to the Index with a maturity which falls on:

		(a)	the same day as the Maturity Date;

		(b)	the next longest maturity after the Maturity Date if there is no such bond maturing on the Maturity
Date; or

		(c)	the next shortest maturity before the Maturity Date if no bond defined in paragraphs (a) or (b)
above is available for selection by the Lender;

provided that:
(i) if there is more than one inflation-linked bond maturing on the same date, the Reference Gilt shall be selected by the Lender
from those bonds; and (ii) if the bond selected by the Lender in accordance with paragraphs (a) to (c) (inclusive) above is redeemed,
the Lender will select a new bond on the same basis, but selected from all eligible bonds in issue at the time the originally selected
bond redeems (including any bond for which the redeemed bond is exchanged).

Reference
Month has the meaning given to that term in the ISDA Inflation Derivatives Definitions.

Related Fund
in relation to a fund (the first fund), means a fund which is managed or advised by the same investment manager or investment
adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment
manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund.

Related Swap
Agreement means any swap agreement entered into by the Lender on or around the date of this Agreement in order to hedge its
exposure to the Index in connection with this Agreement, in respect of a reference amount which does not, in aggregate for all
such agreements, exceed the amount of the Loan, and which:

		(a)	incorporates without amendment and does not contain any provision which conflicts with or overrides
the provisions of the 2008 ISDA Inflation Derivatives Definitions which are equivalent to the provisions of Clause 10.1 (Delay
or Cessation of Publication) to Clause 10.4 (Manifest Error in Publication) (inclusive);

    	9 

    	 

    

		(b)	includes an additional termination event which would occur if a party to such swap agreement(s)
(or an agent appointed for the purpose) were to determine that there is no appropriate alternative index in accordance with the
provisions of such swap agreement(s) which are equivalent to paragraphs (d) to (g) of Clause 10.1 (Delay or Cessation of Publication);
and

		(c)	incorporates without amendment and does not contain any provision which conflicts with or overrides:

		(i)	the definition of “Close-out Amount” (and any provisions for determining the same),
“Early Termination Amount” and “Unpaid Amount”, in each case set out in section 14 of the 2002 ISDA Master
Agreement;

		(ii)	section 6(d)(i) (Statement) of the 2002 ISDA Master Agreement; and

		(iii)	section 6(e) (Payments on Early Termination) of the 2002 ISDA Master Agreement,

and applies such provisions in the
determination of amounts payable upon the occurrence of an Early Termination Event (as defined in section 14 of the 2002 ISDA Master
Agreement).

Repeating
Representations means each of the representations and warranties set out in Clause 14.2 (Status) to Clause 14.8 (Financial
statements) (inclusive), Clause 14.10 (Litigation), Clause 14.12 (Non-Violation of other Agreements) and Clause 14.13 (Governing
Law and Enforcement).

Representative
means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

Request has
the meaning given to that term in paragraph (a) of Clause 5.1 (Drawdown).

Secretary
of State means the Secretary of State for Business, Innovation and Skills.

Security
Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or
arrangement having a similar effect.

Sterling
and £ mean the lawful currency of the United Kingdom.

Subordination
Deed means a document in the form set out in Schedule Schedule 4 (Form of Subordination Deed) duly completed and executed by
the parties thereto.

Subsidiary
means:

		(a)	a subsidiary within the meaning of section 1159 of the Companies Act 2006; and

		(b)	unless the context otherwise requires, a subsidiary undertaking within the meaning of section 1162
of the Companies Act 2006.

Successor
Index has the meaning given to that term in Clause 10.1 (Delay or Cessation of Publication).

Swap Break
Costs means the amount determined in accordance with paragraph (d) of Clause 20.1 (Indemnity).

Tax means
any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty, addition to tax or any interest
payable in connection with any failure to pay or any delay in paying any of the same).

    	10 

    	 

    

Tax Deduction
means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.

Tax Payment
means either an increase in a payment made by the Company to the Lender under Clause 9.2 (Tax gross-up) or a payment under
Clause 9.3 (Tax indemnity).

Transfer
Certificate means a certificate, substantially in the form of Schedule 2 (Form of Transfer Certificate), or any other form
agreed between the Lender and the Company.

Transfer
Date means, in relation to a transfer, the proposed Transfer Date specified in the relevant Transfer Certificate.

U.K.
means the United Kingdom.

UKRPI has
the meaning given to the term "GBP – Non-revised Retail Price Index (UKRPI)" in Annex A to the ISDA Inflation Derivatives
Definitions.

Unpaid Sum
means any sum due and payable but unpaid by the Company under the Finance Documents.

US means
the United States of America.

VAT means:

		(a)	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system
of value added tax (EC Directive 2006/112; and

		(b)	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution
for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.

		1.2	Construction

		(a)	The following definitions have the meanings given to them in Clause 16 (Financial Covenants):

		(i)	Cash;

		(ii)	Cash Equivalent Investments;

		(iii)	Consolidated EBITDA;

		(iv)	Interest Payable;

		(v)	Measurement Period;

		(vi)	Regulatory Asset Base; and

		(vii)	Total Net Debt.

		(b)	In this Agreement, unless the contrary intention appears, a reference to:

		(i)	an amendment includes a supplement, novation, restatement or re-enactment and amended
will be construed accordingly;

		(ii)	assets includes present and future properties, revenues and rights of every description;

    	11 

    	 

    

		(iii)	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration or notarisation;

		(iv)	disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary,
and dispose will be construed accordingly;

		(v)	indebtedness includes any obligation (whether incurred as principal or as surety) for the
payment or repayment of money;

		(vi)	know your customer requirements are the identification checks that a Lender requests in
order to meet its obligations under any applicable law or regulation to identify a person who is (or is to become) its customer;

		(vii)	a person includes any individual, company, corporation, unincorporated association or body
(including a partnership, trust, joint venture or consortium), government, state, agency, organisation or other entity whether
or not having separate legal personality;

		(viii)	a regulation includes any regulation, rule, official directive, request or guideline (whether
or not having the force of law but, if not having the force of law, being of a type with which any person to which it applies is
accustomed to comply) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory
or other authority or organisation;

		(ix)	the winding-up of a person includes the administration, dissolution or liquidation or other
like process of that person, any composition or arrangement with the creditors, amalgamation, reconstruction, reorganisation or
consolidation pursuant to Part XXVI of the Companies Act 2006 proposed or carried out in respect of that person or a company voluntary
arrangement pursuant to the Insolvency Act 1986 carried out or proposed in respect of that person;

		(x)	a currency is a reference to the lawful currency for the time being of the relevant country;

		(xi)	a Default (other than an Event of Default) being outstanding means that it has not been
remedied or waived and an Event of Default being outstanding means that it has not been waived;

		(xii)	a provision of law is a reference to that provision as extended, applied, amended or re-enacted
and includes any subordinate legislation;

		(xiii)	a Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to,
this Agreement;

		(xiv)	a person includes its successors in title, permitted assigns and permitted transferees;

		(xv)	a Finance Document or another document is a reference to that Finance Document or other document
as amended; and

		(xvi)	a time of day is a reference to London time.

		(c)	Unless the contrary intention appears, a reference to a month or months is a reference
to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month
or the calendar month in which it is to end, except that:

    	12 

    	 

    

		(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business
Day in that month (if there is one) or the preceding Business Day (if there is not);

		(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business
Day in that month; and

		(iii)	notwithstanding paragraph (c)(i) above, a period which commences on the last Business Day of a
month will end on the last Business Day in the next month or the calendar month in which it is to end, as appropriate.

		(d)	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to
a Finance Document may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999 and notwithstanding
any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise
of any liability) or termination of that Finance Document.

		(e)	Unless the contrary intention appears:

		(i)	a reference to a Party will not include that Party if it has ceased to be a Party under this Agreement;

		(ii)	a word or expression used in any other Finance Document or in any notice given in connection with
any Finance Document has the same meaning in that Finance Document or notice as in this Agreement; and

		(iii)	any obligation of the Company under the Finance Documents which is not a payment obligation remains
in force for so long as any payment obligation of the Company is or may be outstanding under the Finance Documents.

		(f)	The headings in this Agreement do not affect its interpretation.

		2.	The Facility

		2.1	The Loan

Subject
to the terms of this Agreement, the Lender agrees to make available to the Company a committed term loan in Sterling in an amount
equal to the Commitment in one advance only.

		2.2	Availability

The Loan may not be made at any
time after close of business on the Drawdown Date.

		3.	Purpose

		3.1	Purpose

The Company shall apply the proceeds
of the Loan towards the general corporate purposes of the Group and in compliance with the Licence.

		3.2	No obligation to monitor

Without affecting the obligations
of the Company in any way, the Lender is not bound to monitor or verify the application of the proceeds of the Loan.

    	13 

    	 

    

		4.	Conditions Precedent

		4.1	Conditions precedent documents

The Lender will only be obliged
to comply with paragraph (b) of Clause 5.1 (Drawdown) if, on or before the date of this Agreement, it has received all of the documents
and evidence set out in Schedule 1 (Conditions Precedent Documents) in form and substance satisfactory to it, unless it has waived
its entitlement to do so. The Lender shall notify the Company promptly upon being so satisfied.

		4.2	Further conditions precedent

The Loan shall not be advanced
under this Agreement unless on both the date of the Request and the Drawdown Date:

		(a)	the Repeating Representations are correct in all material respects; and

		(b)	no Default is outstanding or would result from the Loan.

		5.	Drawdown

		5.1	Drawdown

		(a)	On the date of this Agreement, the Company shall be deemed to have made an irrevocable request
(the Request) to the Lender to borrow the Loan on the following terms:

		(i)	the proposed drawdown date will be the Drawdown Date;

		(ii)	the amount requested will be equal to the Commitment;

		(iii)	the first Interest Period complies with Clause 8.3 (Interest Periods) and the first Interest Period
will end on 30 November 2016; and

		(iv)	the Company's payment instructions are:

Western Power Distribution (East
Midlands) plc

HSBC Bank plc

Account number 32676133

Sort Code 40-14-13.

		(b)	The Lender shall, subject to the terms of this Agreement, be obliged, through its Facility Office,
to make the Loan available to the Company for value on the Drawdown Date.

		6.	Repayment

		6.1	Repayment

		(a)	The Company must repay the Loan to the Lender in full on the Final Maturity Date.

		(b)	No amount of the Loan, once repaid or prepaid, may be re-borrowed.

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		7.	Prepayment and Cancellation

		7.1	Mandatory prepayment

		(a)	The Lender must notify the Company promptly if:

		(i)	it becomes aware that it is unlawful in any jurisdiction for it to perform any of its obligations
under a Finance Document or to fund or maintain the Loan; or

		(ii)	a Mandatory Prepayment Event occurs under Clause 10.1 (Delay or Cessation of Publication).

		(b)	After notification under paragraph (a) above:

		(i)	the Company must repay or prepay the Loan together with all other amounts payable by it under this
Agreement on the date specified in paragraph (c) below; and

		(ii)	the Commitment will be immediately cancelled.

		(c)	The date for repayment or prepayment of the Loan will be:

		(i)	the last day of the then current Interest Period in respect of the Loan; or

		(ii)	if later, the latest date allowed by the relevant law.

		(d)	Clause 20 (Indemnity) applies to any prepayment under this Clause.

		7.2	Voluntary prepayment

Without prejudice to Clause 20
(Indemnity), the Company may, if it gives the Lender not less than 15 Business Days' (or such shorter period as the Lender may
agree) prior notice, prepay the whole (but not part) of the Loan plus any accrued but unpaid interest.

		7.3	Automatic cancellation

The Commitment shall be automatically
cancelled at close of business on the Drawdown Date.

		7.4	Tax and increased costs

		(a)	If the Company is, or will on the next Interest Payment Date be, required to pay to the Lender
a Tax Payment or an Increased Cost, the Company may, while the requirement continues, give notice to the Lender requesting prepayment
of the Loan.

		(b)	After notification under paragraph (a) above, the Company must repay or prepay the Loan made to
it on the date specified in paragraph (c) below.

		(c)	The date for repayment or prepayment of the Loan then outstanding will be the next occurring Interest
Payment Date or, if earlier, the date specified by the Company in its notification.

		7.5	Miscellaneous provisions

		(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify
the relevant date(s).

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		(b)	All prepayments under this Agreement must be made together with accrued interest up to and including
the date of prepayment on the amount prepaid and any other amounts due under this Agreement in respect of that prepayment (including,
but not limited to, any amounts payable under Clause 20 (Indemnity)) without penalty or premium.

		(c)	No prepayment or cancellation is allowed except in accordance with the express terms of this Agreement.

		(d)	No amount of the Commitment cancelled under this Agreement may subsequently be reinstated.

		8.	Interest

		8.1	Calculation of interest

		(a)	The amount of interest payable in respect of any Interest Period shall be the Interest Payment
Amount.

		(b)	In this Clause 8 (Interest), Interest Payment Amount means, for each Interest Period:

		(i)	the Commitment; multiplied by

		(ii)	the Index Ratio; multiplied by

		(iii)	the Fixed Rate; multiplied by

		(iv)	the actual number of days in the relevant Interest Period in respect of which payment is being
made divided by 365,

rounded to five decimal places.

		8.2	Payment of interest

Except where it is provided to
the contrary in this Agreement, each Interest Payment Amount is payable by the Company on each Interest Payment Date.

		8.3	Interest Periods

		(a)	The term of the Loan is divided into successive Interest Periods ending on 30 November and 31 May
in each calendar year or such other period as the Parties may agree from time to time (each, an Interest Period) for the
calculation of Interest.

		(b)	An Interest Period for the Loan shall not extend beyond the Final Maturity Date.

		(c)	Each Interest Period and each Interest Payment Date shall be subject to adjustment in accordance
with Clause 13.5 (Business Days) except that the final Interest Payment Date shall fall on the Final Maturity Date or on the Business
Day immediately preceding the Final Maturity Date if the Final Maturity Date is not a Business Day.

		8.4	Interest on overdue amounts

		(a)	If the Company fails to pay any amount payable by it under this Agreement (an overdue amount),
it must promptly on demand by the Lender pay default interest on the overdue amount from the due date up to the date of actual
payment, both before, on and after judgment, at a rate (the Default Rate) as determined by the Lender to be equal to 1%
plus Overnight LIBOR on the overdue amount for each day during the period of non-payment as if the overdue amount had, during such
period of

    	16 

    	 

    

non-payment, constituted a Loan
for such successive Interest Periods of such duration as the Lender may determine (each a Default Term).

		(b)	If the overdue amount consists of all or part of the Loan and becomes due and payable on a day
which was not the last day of an Interest Period relating to the Loan, then:

		(i)	the first Interest Period for that overdue amount shall have a duration equal to the unexpired
portion of the then current Interest Period relating to the Loan (if any); and

		(ii)	the rate of interest applying to the overdue amount during the first Interest Period shall be 1%
above the rate which would have applied if the overdue amount had not become due.

		(c)	The Default Rate will be determined on the first day of, or two Business Days before the first
day of, the relevant Default Term, as appropriate.

		(d)	If the Lender determines that deposits in the currency of the overdue amount are not at the relevant
time being made available to leading banks in the London interbank market, the Default Rate will be determined by reference to
the cost of funds to the Lender from such sources as it reasonably may select.

		(e)	Default interest (if unpaid) on an overdue amount will be compounded with that overdue amount at
the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

		8.5	Notification of rates of interest

The Lender must promptly and,
in respect of amounts to be paid on each Interest Payment Date, within one Business Day of the relevant Rate Fixing Date, notify
the Company of each amount of interest payable by it under this Agreement (together with reasonable details thereof).

		9.	Tax Gross-Up and Indemnities

		9.1	Definitions

		(a)	In this Agreement:

Qualifying
Lender means:

		(i)	a Lender (other than a Lender within paragraph (ii) below) which is beneficially entitled to interest
payable to that Lender in respect of an advance under a Finance Document and is:

		(A)	a Lender:

		(1)	which is a bank (as defined for the purpose of section 879 of ITA) making an advance under a Finance
Document; or

		(2)	in respect of an advance made under a Finance Document by a person that was a bank (as defined
for the purpose of section 879 of ITA) at the time that that advance was made,

and which is within the charge
to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

		(B)	a Lender which is:

    	17 

    	 

    

		(1)	a company resident in the United Kingdom for United Kingdom tax purposes;

		(2)	a partnership each member of which is:

(a)a company so resident in
the United Kingdom; or

		(b)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

		(3)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company; or

		(C)	a Treaty Lender; or

		(ii)	a Lender which is a building society (as defined for the purpose of section 880 of ITA) making
an advance under a Finance Document.

Tax Confirmation
means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance
under a Finance Document is either:

		(i)	a company resident in the United Kingdom for United Kingdom tax purposes;

		(ii)	a partnership each member of which is:

		(A)	a company so resident in the United Kingdom; or

		(B)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable
in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		(iii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company.

Tax Credit
means a credit against, relief or remission for, or repayment of any Tax.

Treaty Lender
means a Lender which:

		(i)	is treated as a resident of a Treaty State for the purposes of the Treaty;

		(ii)	does not carry on a business in the United Kingdom through a permanent establishment with which
that Lender's participation in the Loan is effectively connected; and

    	18 

    	 

    

		(iii)	meets all other conditions which must be met under the Treaty for residents of such Treaty State
to obtain full exemption from tax on interest imposed by the United Kingdom, except that for this purpose it shall be assumed that
the following are satisfied:

		(A)	any condition which relates (expressly or by implication) to the amounts or terms of any Loan or
the Finance Documents or any condition which relates (expressly or by implication) to there not being a special relationship between
the Company and the Finance Party or between them both and another person; and

		(B)	any necessary procedural formality.

Treaty State
means a jurisdiction having a double taxation agreement (a Treaty) with the United Kingdom which makes provision for full
exemption from tax imposed by the United Kingdom on interest.

UK Non-Bank
Lender means where a Lender becomes a Party after the day on which this Agreement is entered into, a Lender which gives a Tax
Confirmation in the assignment agreement or Transfer Certificate which it executes on becoming a Party.

		(b)	Unless a contrary indication appears, in this Clause 9 a reference to "determines" or
"determined" means a determination made in the absolute discretion of the person making the determination.

		9.2	Tax gross-up

		(a)	The Company shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction
is required by law.

		(b)	The Company shall promptly upon becoming aware that it must make a Tax Deduction (or that there
is any change in the rate or the basis of a Tax Deduction) notify the Lender accordingly. Similarly, the Lender shall notify the
Company on becoming so aware in respect of a payment payable to that Lender.

		(c)	If a Tax Deduction is required by law to be made by the Company, the amount of the payment due
from the Company shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which
would have been due if no Tax Deduction had been required.

		(d)	A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account
of Tax imposed by the United Kingdom, if on the date on which the payment falls due:

		(i)	the payment could have been made to the Lender without a Tax Deduction if the Lender had been a
Qualifying Lender, but on that date the Lender is not or has ceased to be a Qualifying Lender other than as a result of any change
after the date it became the Lender under this Agreement in (or in the interpretation, administration, or application of) any law
or Treaty, or any published practice or published concession of any relevant taxing authority; or

		(ii)	the Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying
Lender and:

		(A)	an officer of HM Revenue & Customs has given (and not revoked) a direction (a Direction)
under section 931 of the ITA which relates to the payment and the Lender has received from the Company a certified copy of that
Direction; and

		(B)	the payment could have been made to the Lender without any Tax Deduction if that Direction had
not been made; or

    	19 

    	 

    

		(iii)	the Lender is a Qualifying Lender solely by virtue of paragraph (i)(B) of the definition of Qualifying
Lender and:

		(A)	the Lender has not given a Tax Confirmation to the Company; and

		(B)	the payment could have been made to the Lender without any Tax Deduction if the Lender had given
a Tax Confirmation to the Company on the basis that the Tax Confirmation would have enabled the Company to have formed a reasonable
belief that the payment was an "excepted payment" for the purpose of section 930 of the ITA; or

		(iv)	the Lender is a Treaty Lender and the Company making the payment is able to demonstrate that the
payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph
(g) below.

		(e)	If the Company is required to make a Tax Deduction, the Company shall make that Tax Deduction and
any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

		(f)	Within 30 days of making either a Tax Deduction or any payment required in connection with that
Tax Deduction, the Company shall deliver to the Lender a statement under Section 975 of the ITA, or other evidence reasonably satisfactory
to the Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

		(g)               (i)	Subject to paragraph (ii) below, a Treaty Lender and the Company which
makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for
that Company to obtain authorisation to make that payment without a Tax Deduction.

		(ii)	Nothing in paragraph (i) above shall require a Treaty Lender to:

		(A)	register under the HMRC DT Treaty Passport scheme;

		(B)	apply the HMRC DT Treaty Passport scheme to any Loan if it has so registered; or

		(C)	file Treaty forms if it has included an indication to the effect that it wishes the HMRC DT Treaty
Passport scheme to apply to this Agreement in accordance with paragraph (a) of Clause 9.5 (HMRC DT Treaty Passport scheme confirmation)
and the Company making that payment has not complied with its obligations under paragraph (j) below or paragraph (b) of Clause
9.5 (HMRC DT Treaty Passport scheme confirmation).

		(h)	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives
a Tax Confirmation to the Company by entering into this Agreement.

		(i)	A UK Non-Bank Lender shall promptly notify the Company if there is any change in the position from
that set out in the Tax Confirmation.

		(j)	Any Lender which has confirmed that it is entitled to use its DT Treaty Passport in accordance
with paragraph (a) of Clause 9.5 will reasonably promptly notify the Company if at any time it ceases to holds a passport under
the HMRC DT Treaty Passport scheme or if it ceases to be able to use such passport as a Lender.

    	20 

    	 

    

		(k)	If a Lender has not included an indication to the effect that it wishes the HMRC DT Treaty Passport
scheme to apply to this Agreement in accordance with paragraph (a) of Clause 9.5 (HMRC DT Treaty Passport scheme confirmation),
the Company shall not file any form relating to the HMRC DT Treaty Passport scheme in respect of that Lender's Commitment or its
participation in any Loan.

		9.3	Tax indemnity

		(a)	Except as provided below, the Company must, within three Business Days of demand, indemnify the
Lender against any loss or liability which that Finance Party (in its absolute discretion) determines will be or has been suffered
(directly or indirectly) by the Lender for or on account of Tax in relation to a payment received or receivable (or any payment
deemed to be received or receivable) under a Finance Document.

		(b)	Paragraph (a) above does not apply to any Tax assessed on the Lender under the laws of the jurisdiction
in which:

		(i)	the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which the Lender
is treated as resident for tax purposes; or

		(ii)	the Lender's Facility Office is located in respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated
by reference to the net income received or receivable by the Lender. However, any payment deemed to be received or receivable,
including any amount treated as income but not actually received by the Lender, such as a Tax Deduction, will not be treated as
net income received or receivable for this purpose.

		(c)	Paragraph (a) above does not apply to any Tax assessed on the Lender to the extent the loss or
liability:

		(i)	is compensated for by an increased payment under Clause 9.2 (Tax gross-up);

		(ii)	would have been compensated for by an increased payment under Clause 9.2 (Tax gross-up) but
was not so compensated solely because one of the exclusions in Clause 9.2 (Tax gross-up) applied; or

		(iii)	relates to a FATCA Deduction required to be made by a Party.

		(d)	A Finance Party making, or intending to make, a claim under paragraph (a) above must promptly notify
the Company of the event which will give, or has given, rise to the claim.

		9.4	Tax Credit

If the Company makes a Tax Payment
and the Lender has obtained, used and retained any Tax Credit that is attributable to that Tax Payment, then, if in its discretion
(acting reasonably) it can do so without any further adverse consequences for it, the Lender must pay an amount to the Company
which the Lender determines (in its discretion, acting reasonably) will leave it (after that payment) in the same after-tax position
as it would have been in if the Tax Payment had not been required to be made by the Company. The Lender shall take those steps
it considers in its opinion reasonable to seek and claim any tax credit.

    	21 

    	 

    

		9.5	HMRC DT Treaty Passport scheme confirmation

		(a)	A New Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme,
and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (without liability to the Company)
in the Transfer Certificate or Increase Confirmation which it executes by including its scheme reference number and its jurisdiction
of tax residence in that Transfer Certificate or Increase Confirmation.

		(b)	Where a New Lender includes the indication described in paragraph (a) above of Clause 9.5 in the
relevant Transfer Certificate or Increase Confirmation the Company shall file a duly completed form DTTP2 in respect of such Lender
with HM Revenue & Customs within 30 days of the relevant Transfer Date and shall promptly provide the Lender with a copy of
that filing.

		9.6	Stamp taxes

The Company shall pay and, within
three Business Days of demand, indemnify the Lender against any cost, loss or liability the Lender incurs in relation to all stamp
duty, registration and other similar Taxes payable in respect of any Finance Document, except for any such Tax payable in respect
of a Transfer Certificate or other transfer or disposal of the Lender's rights or obligations under a Finance Document.

		9.7	VAT

		(a)	All amounts set out, or expressed in a Finance Document to be payable by any Party to the Lender
which (in whole or in part) constitute the consideration for a supply or supplies for VAT purposes shall be deemed to be exclusive
of any VAT which is chargeable on such supply or supplies, and accordingly, if VAT is or becomes chargeable on any supply made
by the Lender to any Party under a Finance Document, that Party shall pay to the Lender (in addition to and at the same time as
paying any other consideration for such supply) an amount equal to the amount of such VAT (and the Lender shall promptly provide
an appropriate VAT invoice to such Party).

		(b)	Where a Finance Document requires any Party to reimburse or indemnify the Lender for any cost or
expense, that Party shall reimburse or indemnify (as the case may be) the Lender for the full amount of such cost or expense, including
such part thereof as represents VAT, save to the extent that the Lender reasonably determines that it is entitled to credit or
repayment in respect of such VAT from the relevant tax authority.

		(c)	Any reference in this Clause 9.7 to any Party shall, at any time when such Party is treated as
a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the
representative member of such group at such time (the term "representative member" to have the same meaning as in the
Value Added Tax Act 1994).

		9.8	FATCA Information

		(a)	Subject to paragraph (c) below, each Party shall, within ten Business Days of a reasonable request
by another Party:

		(i)	confirm to that other Party whether it is:

		(A)	a FATCA Exempt Party; or

		(B)	not a FATCA Exempt Party; and

    	22 

    	 

    

		(ii)	supply to that other Party such forms, documentation and other information relating to its status
under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA;

		(iii)	supply to that other Party such forms, documentation and other information relating to its status
as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange
of information regime.

		(b)	If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt
Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party shall notify that
other Party reasonably promptly.

		(c)	Paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall
not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		(i)	any law or regulation;

		(ii)	any fiduciary duty; or

		(iii)	any duty of confidentiality.

		(d)	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation
or other information requested in accordance with paragraph (a)(i) or (a)(ii) above (including, for the avoidance of doubt, where
paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them)
as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation
or other information.

		9.9	FATCA Deduction

		(a)	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required
in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such
a FATCA Deduction, or otherwise compensate the recipient of the payment for that FATCA Deduction.

		(b)	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there
is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment.

		10.	Indexation

		10.1	Delay or Cessation of Publication

		(a)	If, by the Rate Fixing Day for the relevant Interest Period, the Index Figure for a Reference Month
required for the calculation of a payment under this Agreement has not been published or announced by the Index Sponsor, then the
Lender shall promptly give notice to the Company stating that such event has occurred and shall determine the Index Figure applicable
for such purposes (the Substitute Index Figure) by using the following methodology:

		(i)	if applicable, the Lender will take the same action to determine the Substitute Index Figure as
that taken by the calculation agent pursuant to the terms and conditions of the Reference Gilt; or

    	23 

    	 

    

		(ii)	if no such Substitute Index Figure is determined pursuant to paragraph (a)(i) above, then the Lender
shall determine the Substitute Index Figure as follows:

Substitute Index Figure = Base Level
x (Latest Level / Reference Level)

where:

Base Level means the Index
Figure (excluding any “flash” estimates) published or announced by the Index Sponsor for the month falling 12 (twelve)
calendar months prior to the month in respect of which the Substitute Index Figure is being determined;

Latest Level means the latest
Index Figure (excluding any “flash” estimates) published or announced by the Index Sponsor prior to the month in respect
of which the Substitute Index Figure is being calculated; and

Reference Level means the
Index Figure (excluding any “flash” estimates) for the month falling 12 (twelve) calendar months prior to the month
referred to in the definition of "Latest Level" above.

		(b)	If an Index Figure is published or announced at any time after the Rate Fixing Day, such Index
Figure will not be used in any calculations. The Substitute Index Figure so determined pursuant to this Clause 10.1, will be the
definitive level for that Reference Month.

		(c)	If the Index has not been published or announced for two consecutive months or the Index Sponsor
announces that it will no longer continue to publish or announce the Index, then the Lender shall promptly give notice to the Company
stating that such event has occurred and shall determine an appropriate successor index (a Successor Index) (in lieu of
any previously applicable Index) in accordance with the following paragraphs of this Clause 10.1. The determination of any Successor
Index, and any such adjustment, shall take effect as of a date decided by the Lender.

		(d)	If at any time (other than after a Mandatory Prepayment Event has occurred pursuant to paragraph
(h) below) a successor index has been designated for the purposes of the Reference Gilt, such successor index shall be the "Successor
Index" in respect of the Loan, notwithstanding that any other Successor Index may previously have been determined under paragraphs
(e), (f) or (g) below.

		(e)	If a Successor Index has not been determined under paragraph (d) above (and a Mandatory Prepayment
Event has not occurred pursuant to paragraph (h) below) and a notice has been given or an announcement has been made by the Index
Sponsor specifying that the Index will be superseded by a replacement Index specified by the Index Sponsor, and the Lender determines
that such replacement index is calculated using the same or substantially similar formula or method of calculation as used in the
calculation of the previously applicable Index, such replacement index shall be the "Successor Index".

		(f)	If a Successor Index has not been determined under paragraph (d) or (e) above (and a Mandatory
Prepayment Event has not occurred pursuant to paragraph (h) below) and a replacement index has been determined under the Related
Swap Agreement, such replacement index shall be the Successor Index.

		(g)	If, by the fifth Business Day prior to the next Interest Payment Date which would be affected by
the failure to determine a Successor Index, a Successor Index has not been determined under paragraphs (d), (e) or (f) above, the
Lender shall select a "Successor Index", taking into account the practice in the market for swaps linked to the Index.

    	24 

    	 

    

		(h)	If the Lender determines that there is no appropriate Successor Index, then a Mandatory Prepayment
Event will be deemed to have occurred.

		10.2	Rebasing of the Index

If the Lender determines that
the Index has been or will be rebased at any time, the Index as so rebased (the Rebased Index) will be used for the purposes
of determining the level of an Index from the date of such rebasing, provided however, that the Lender shall make such adjustments
as are made by the calculation agent pursuant to the terms and conditions of the Reference Gilt, if any, to the levels of the Rebased
Index so that the Rebased Index levels reflect the same rate of inflation as the Index before it was rebased. Any such rebasing
shall not affect any prior payments made under the Loan.

		10.3	Material Modification Prior to an Interest Payment Date

If the Index Sponsor announces
that it will make a material change to the Index, then the Lender shall make any such adjustments to the Index consistent with
adjustments made to the Reference Gilt. Any change announced by the Index Sponsor later than five Business Days prior to the date
on which any payment is due hereunder shall be disregarded for the purposes of that payment.

		10.4	Manifest Error in Publication

If,
within 30 days of publication, the Lender determines that the Index Sponsor has corrected the level of the Index to remedy a manifest
error in its original publication, the Lender will:

		(a)	notify the Company of that correction;

		(b)	notify the Company of the amount which is payable by the Company or to be refunded to the Company
as a result of that correction; and

		(c)	take such other action as it may deem necessary to give effect to such correction.

provided that any amount payable
pursuant to paragraph (b) above shall be paid or refunded, as applicable (with no interest accruing thereon):

		(i)	in connection with an Index Sponsor's correction to remedy a manifest error in the level of an
Index for a Reference Month for which the scheduled Interest Payment Date has occurred, within five Business Days after notice
by the Lender of such amount payable by the Lender;

		(ii)	in connection with an Index Sponsor's correction to remedy a manifest error in the level of an
Index for a Reference Month for which the scheduled Interest Payment Date has not occurred, as an adjustment to the payment obligation
on the next scheduled Interest Payment Date; or

		(iii)	if there is no further scheduled Interest Payment Date, within five Business Days after notice
of such amount payable by the Lender.

		10.5	Correction of the Index

To the extent that the Index Sponsor
has corrected the level of the Index in the period from the Final Maturity Date until the date ending three months after the Final
Maturity Date, the terms of paragraphs (b) and (c) of Clause 10.4 shall apply and the relevant Party shall, within five Business
Days of the notice given by the Lender pursuant to paragraph (b) above of Clause 10.4, make such

    	25 

    	 

    

payments to the other as may be
required to put them in the position they would have been in had the corrected Index originally been published.

		11.	Increased Costs

		11.1	Increased Costs

Except as provided below in this
Clause, the Company must pay to the Lender the amount of any Increased Cost incurred by the Lender or any of its Affiliates as
a result of:

		(a)	the introduction of, or any change in, or any change in the interpretation or application of, any
law or regulation;

		(b)	compliance with any law or regulation made after the date of this Agreement provided that
for the purposes of this Agreement and any other Finance Document, Dodd-Frank shall be deemed to be a law or regulation made
after the date of this Agreement; or

		(c)	the implementation or application of, or compliance with, Basel III or CRD IV or any law or regulation
that implements or applies Basel III or CRD IV.

		11.2	Exceptions

The Company need not make any
payment for an Increased Cost to the extent that the Increased Cost is:

		(a)	compensated for under another Clause or would have been but for an exception to that Clause;

		(b)	a Tax on the overall net income of the Lender or any of its Affiliates;

		(c)	attributable to a FATCA Deduction required to be made by a Party;

		(d)	attributable to the Lender or its Affiliate wilfully failing to comply with any law or regulation;

		(e)	attributable to the implementation or application of or compliance with the "International
Convergence of Capital Measurement and Capital Standards, a Revised Framework" published by the Basel Committee in June 2004
in the form existing on the date of this Agreement (but excluding any amendment arising out of Basel III) (Basel II) or
any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government,
regulator, the Lender or any of its Affiliates); or

		(f)	not notified by the Lender to the Company within three Months of the Lender becoming aware of such
Increased Cost.

		11.3	Claims

If the Lender intends to make
a claim for an Increased Cost, it must notify the Company promptly of the circumstances giving rise to, and the amount of, the
claim.

    	26 

    	 

    

		12.	Mitigation

		12.1	Mitigation

		(a)	The Lender must, in consultation with the Company, take all reasonable steps to mitigate any circumstances
which arise and which result or would result in the Loan ceasing to be available or:

		(i)	any Tax Payment or Increased Cost being payable to the Lender;

		(ii)	the Lender being able to exercise any right of prepayment and/or cancellation under this Agreement
by reason of any illegality; or

		(iii)	the Lender incurring any cost of complying with the minimum reserve requirements of the European
Central Bank,

including transferring its rights
and obligations under the Finance Documents to an Affiliate or changing its Facility Office.

		(b)	The Lender is not obliged to take any step under this Clause 12 if, in the opinion of the Lender
(acting reasonably), to do so might be prejudicial to it.

		(c)	The Lender must promptly notify the Company of any circumstances as described in paragraphs (a)(i)
to (a)(iii) of this Clause 12.1.

		(d)	The Company must indemnify the Lender for all costs and expenses reasonably incurred by it as a
result of any step taken under this Clause 12.1.

		(e)	This Clause does not in any way limit the obligations of the Company under the Finance Documents.

		12.2	Conduct of business by the Lender Finance Party

No term of this Agreement will:

		(a)	interfere with the right of any Finance Party to arrange its affairs (Tax or otherwise) in whatever
manner it thinks fit or oblige any Finance Party to investigate or claim any Tax Credit; or

		(b)	oblige any Finance Party to disclose any information relating to its affairs (Tax or otherwise)
or any computation in respect of Tax.

		13.	Payments

		13.1	Place

All payments by the Company under
the Finance Documents must be made to the Lender to its account at such office or bank in London as the Lender may notify to the
Company for this purpose and by not less than five Business Days' prior notice.

		13.2	Funds

Payments under the Finance Documents
to the Lender must be made for value on the due date at such times and in such funds as the Lender may specify to the Company as
being customary at the time for the settlement of transactions in the relevant currency in the place of payment.

    	27 

    	 

    

		13.3	Currency of account

Each amount payable under the
IL Finance Documents is payable in Sterling.

		13.4	No set-off or counterclaim

All payments made by the Company
under the Finance Documents must be made without set-off or counterclaim.

		13.5	Business Days

		(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date
for that payment will instead be the next Business Day in the same calendar month (if there is one) or the preceding Business Day
(if there is not).

		(b)	During any extension of the due date for payment of any principal (or overdue amount) under this
Agreement interest is payable on that principal (or overdue amount) at the rate payable on the original due date.

		13.6	Partial payments

		(a)	If the Lender receives a payment insufficient to discharge all the amounts then due and payable
by the Company under this Agreement, the Lender shall apply that payment towards the obligations of the Company under the Finance
Documents in any order selected by the Lender.

		(b)	This Clause will override any appropriation made by the Company.

		13.7	Timing of payments

If a Finance Document does not
provide for when a particular payment is due to the Lender, that payment will be due within three Business Days of demand by the
Lender.

		14.	Representations

		14.1	Representations

The representations set out in
this Clause are made by the Company to the Lender on the date of this Agreement.

		14.2	Status

It is a limited liability company,
duly incorporated and validly existing under the Companies Act 2006 in England and Wales.

		14.3	Powers and authority

It has the power to enter into
and perform, and has taken all necessary action to authorise the entry into and performance of, the Finance Documents to which
it is or will be a party and the transactions contemplated by those Finance Documents.

		14.4	Legal validity

Subject to any general principles
of law limiting its obligations and referred to in any legal opinion required under this Agreement, each Finance Document to which
it is a party is its legally binding, valid and enforceable obligation.

    	28 

    	 

    

		14.5	Non-conflict

The entry into and performance
by it of, and the transactions contemplated by, the Finance Documents do not conflict with any borrowing or other power or restriction
granted or imposed by:

		(a)	any law or regulation applicable to it and violation of which has or is likely to have a Material
Adverse Effect; or

		(b)	its constitutional documents.

		14.6	No default

		(a)	No Event of Default is outstanding or might reasonably be expected to result from the making of
the Loan.

		(b)	No other event or circumstance is outstanding which constitutes a default under any other agreement
or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries') assets are subject
which might have a Material Adverse Effect.

		14.7	Authorisations

All authorisations required by
it (including any authorisations required under PUHCA or the Act, if any):

		(a)	in connection with the entry into, performance, validity and enforceability of, and the transactions
contemplated by, the Finance Documents; and

		(b)	to make the Finance Documents admissible in evidence in England and Wales,

have been obtained or effected
(as appropriate) and are in full force and effect.

		14.8	Financial statements

Its audited consolidated financial
statements most recently delivered to the Lender (which, at the date of this Agreement, are the Original Financial Statements):

		(a)	have been prepared in accordance with accounting principles and practices generally accepted in
its jurisdiction of incorporation, consistently applied; and

		(b)	fairly represent its consolidated financial condition as at the date to which they were drawn up,

except, in each case, as disclosed
to the contrary in those financial statements..

		14.9	No material adverse change

Other than as disclosed in writing
to the Lender prior to the date of this Agreement there has been no material adverse change in its consolidated financial condition
since the date to which the Original Financial Statements were drawn up.

		14.10	Litigation

No litigation, arbitration or
administrative proceedings are current or, to its knowledge, pending or threatened, which, if adversely determined, are reasonably
likely to have a Material Adverse Effect.

    	29 

    	 

    

		14.11	Winding Up

No meeting has been convened for
its winding-up and, so far as it is aware, no petition, application or the like is outstanding for its winding-up.

		14.12	Non-Violation of other Agreements

Its entry into, exercise of its
rights and/or performance of or compliance with its obligations under this Agreement do not and will not violate, to an extent
or in a manner which has or is likely to have a Material Adverse Effect on it, any agreement to which it is a party or which is
binding on it.

		14.13	Governing Law and Enforcement

		(a)	The choice of English law as the governing law of the Finance Documents will be recognised and
enforced in its jurisdiction of incorporation.

		(b)	Any judgement obtained in England in relation to a Finance Document will be recognised and enforced
in its jurisdiction of incorporation.

		14.14	Deduction of Tax

It is not required to make any
deduction for or on account of Tax from any payment it may make under any Finance Document to the Lender if the Lender is:

		(a)	a Qualifying Lender:

		(i)	falling within paragraph (i)(A) of the definition of Qualifying Lender; or

		(ii)	except where a Direction has been given under section 931 of the ITA in relation to the payment
concerned, falling within paragraph (i)(B) of the definition of Qualifying Lender; or

		(iii)	falling within paragraph (ii) of the definition of Qualifying Lender or;

		(b)	a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue
& Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

		14.15	No filing or stamp taxes

Under the law of its jurisdiction
of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority
in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents (which for
these purposes does not include a Transfer Certificate or other transfer or disposal of the Lender's rights or obligations under
a Finance Document) or the transactions contemplated by the Finance Documents.

		14.16	No misleading information

Save as disclosed in writing to
the Lender prior to the date of this Agreement:

		(a)	any written factual information provided by any member of the Group or on its behalf was true and
accurate in all material respects as at the date of the relevant report or document or as at the date (if any) at which it is stated
to be given;

    	30 

    	 

    

		(b)	the financial projections provided have been prepared on the basis of recent historical information
and on the basis of reasonable assumptions as at the date provided; and

		(c)	no event or circumstance has occurred or arisen and no information has been given or withheld that
results in the information, opinions, intentions, forecasts or projections contained in such written information being untrue or
misleading in any material respect.

		14.17	Pari Passu ranking

Its payment obligations under
the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors,
except for obligations mandatorily preferred by law applying to companies generally.

		14.18	Licence

The Licence is in full force and
effect and there is no investigation or proceeding current, pending or threatened which could, if adversely determined, result
in the termination of the Licence.

		14.19	Sanctions

No member of the Group or, to
the knowledge of the Company, any director, officer, employee, agent, affiliate or representative of any member of the Group is
an individual or entity (the Person) currently the subject of any sanctions administered or enforced by the U.S. Department
of Treasury's Office of Foreign Assets Control (the OFAC), the United Nations Security Council (the UNSC), the European
Union, Her Majesty's Treasury (the HMT), or other relevant sanctions authority (collectively, Sanctions), nor is
any member of the Group located, organized or resident in a country or territory that is the subject of country-wide or territory-wide
Sanctions. The Company represents for itself and on behalf of other members of the Group that no member of the Group will, directly
or indirectly, use the proceeds of the transaction, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other Person, to fund any activities of or business with any Person, or in Syria, Cuba, Iran, North Korea,
Sudan or in any other country or territory, that, at the time of such funding, is the subject of country-wide or territory-wide
Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction,
whether as underwriter, advisor, investor or otherwise) of Sanctions.

		14.20	Anti-Corruption

Each member of the Group has conducted
its business in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed
to promote and achieve compliance by that member of the Group with such laws.

		14.21	Times for making representations

		(a)	The representations set out in this Clause are made by the Company on the date of this Agreement.

		(b)	The Repeating Representations are deemed to be repeated by the Company on the first date of each
Interest Period.

		(c)	When a representation is repeated, it is applied to the circumstances existing at the time of repetition.

    	31 

    	 

    

		15.	Information Covenants

		15.1	Financial statements

		(a)	The Company must supply to the Lender:

		(i)	its audited consolidated financial statements for each of its financial years; and

		(ii)	its interim consolidated financial statements for the first half-year of each of its financial
years.

		(b)	All financial statements must be supplied as soon as they are available and:

		(i)	in the case of the Company's audited consolidated financial statements, within 180 days; and

		(ii)	in the case of the Company's interim financial statements, within 90 days,

of the end of the relevant financial
period.

		15.2	Form of Financial Statement

If any financial statement delivered
or to be delivered to the Lender under Clause 15.1 is not to be or, as the case may be, has not been prepared in accordance
with Applicable Accounting Principles:

		(a)	if either Party so requests, the Parties shall negotiate in good faith with a view to agreeing
such amendments to the financial ratios and/or the definitions of the terms used in Clause 16 (Financial Covenants) as are
necessary to give the Lender comparable protection to that contemplated at the date of this Agreement;

		(b)	if amendments are agreed by the Parties within 25 days, those amendments shall take effect in accordance
with the terms of that agreement; and

		(c)	if such amendments are not so agreed within 25 days, the Company shall:

		(i)	within 30 days after the end of that 25 day period; and

		(ii)	with all subsequent financial statements to be delivered to the Lender under Clause 15.1,

deliver to the Lender details of
all such adjustments as need to be made to the relevant financial statements to bring them into line with the Companies Act 2006
(as in effect on the date of this Agreement) and Applicable Accounting Principles.

		15.3	Compliance Certificate

		(a)	The Company must supply to the Lender a Compliance Certificate with each set of its financial statements
sent to the Lender under this Agreement.

		(b)	Each Compliance Certificate must be signed by two directors of the Company.

		15.4	Information – miscellaneous

The Company must supply to the
Lender:

    	32 

    	 

    

		(a)	copies of all documents despatched by the Company to its creditors generally (or any class of them)
in each case at the same time as they are despatched;

		(b)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative
proceedings which are current, threatened or pending against any member of the Group and which might, if adversely determined,
have a Material Adverse Effect;

		(c)	promptly, details of the loss of the Licence or any communication from OFGEM or other government
agency regarding any potential or threatened loss of the Licence;

		(d)	a copy of all material information relating to any matter which is reasonably likely to have a
Material Adverse Effect which the Company supplies to, or receives from, any applicable regulatory body (including OFGEM) (at the
same time as it is supplied to, or promptly following its receipt from, the applicable regulatory body);

		(e)	written notice of the details of any proposed changes to the Licence as soon as reasonably practicable
after becoming aware of the same (other than changes of a formal, minor or technical nature);

		(f)	within five Business Days of receiving them, details of any change to the rating by Moody's or
Standard & Poor's of the long-term, unsecured and non credit-enhanced debt obligations of the Company;

		(g)	promptly on request, a list of the then current Material Subsidiaries; and

		(h)	promptly on request, such further information regarding the financial condition, business and operations
of the Group as the Lender may reasonably request.

		15.5	Notification of Default

		(a)	The Company must notify the Lender of any Default (and the steps, if any, being taken to remedy
it) promptly upon becoming aware of its occurrence.

		(b)	Promptly on request by the Lender, the Company must supply to the Lender a certificate signed by
two of its directors on its behalf, certifying that no Default is outstanding or, if a Default is outstanding, specifying the Default
and the steps, if any, being taken to remedy it.

		15.6	Use of websites

		(a)	Except as provided below, the Company may deliver any information under this Agreement to the Lender
by posting it on to an electronic website if:

		(i)	the Lender agrees;

		(ii)	the Company and the Lender designate an electronic website for this purpose;

		(iii)	the Company notifies the Lender of the address of and password for the website; and

		(iv)	the information posted is in a format agreed between the Company and the Lender.

		(b)	The Company must promptly upon becoming aware of its occurrence, notify the Lender if:

		(i)	the website cannot be accessed;

    	33 

    	 

    

		(ii)	the website or any information on the website is infected by any electronic virus or similar software;

		(iii)	the password for the website is changed; or

		(iv)	any information to be supplied under this Agreement is posted on the website or amended after being
posted.

If the circumstances in paragraphs
(a) or (b) above occur, the Company must supply any information required under this Agreement in paper form.

		15.7	Know your customer requirements

If:

		(a)	the introduction of or any change in (or in the interpretation, administration or application of)
any law or regulation made after the date of this Agreement;

		(b)	any change in the status of the Company after the date of this Agreement; or

		(c)	a proposed assignment or transfer by the Lender of any of its rights and obligations under this
Agreement,

obliges the Lender (or, in the
case of paragraph (c) above, any prospective new Lender) to comply with "know your customer" or similar identification
procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the
request of the Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the
Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender)
in order for the Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out
and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable
laws and regulations pursuant to the transactions contemplated in the Finance Documents.

		16.	Financial Covenants

		16.1	Definitions

In this Clause:

Cash means,
at any time, cash denominated in a currency of the United States of America, the United Kingdom, any member state of the European
Union or any Participating Member State in hand or at bank and (in the latter case) credited to an account in the name of a member
of the Group with an Acceptable Bank and to which a member of the Group is alone (or together with other members of the Group)
beneficially entitled and for so long as:

		(a)	that cash is repayable:

		(i)	if that cash is deposited with the Lender, within 180 days after the relevant date of calculation;
or

		(ii)	if that cash is deposited with any other lender or financial institution, within 45 days after
the relevant date of calculation;

    	34 

    	 

    

		(b)	repayment of that cash is not contingent on the prior discharge of any other indebtedness of any
member of the Group or of any other person whatsoever or on the satisfaction of any other condition;

		(c)	there is no Security Interest over that cash other than Security Interests permitted under paragraph
(c)(xi) of Clause 17.5 (Negative pledge); and

		(d)	the cash is freely and (except as mentioned in paragraph (a) above) immediately available to be
applied in repayment or prepayment of the Loan.

Cash Equivalent
Investments means at any time:

		(a)	certificates of deposit maturing within one year after the relevant date of calculation and issued
by an Acceptable Bank;

		(b)	any investment in marketable debt obligations issued or guaranteed by the government of an Acceptable
Jurisdiction or by an instrumentality or agency of any of them having an equivalent credit rating, maturing within one year after
the relevant date of calculation and not convertible or exchangeable to any other security;

		(c)	commercial paper not convertible or exchangeable to any other security:

		(i)	for which a recognised trading market exists;

		(ii)	issued by an issuer incorporated in an Acceptable Jurisdiction;

		(iii)	which matures within one year after the relevant date of calculation; and

		(iv)	which has a credit rating of either A-1 or higher by Standard & Poor's Rating Services or F1
or higher by Fitch Ratings Ltd or P-1 or higher by Moody's Investor Services Limited, or, if no rating is available in respect
of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations,
an equivalent rating;

		(d)	Sterling bills of exchange eligible for rediscount at the Bank of England (or their dematerialised
equivalent) and accepted by an Acceptable Bank;

		(e)	any investment in money market funds which:

		(i)	have a credit rating of either A-1 or higher by Standard & Poor's Rating Services or F1 or
higher by Fitch Ratings Ltd or P-1 or higher by Moody's Investor Services Limited;

		(ii)	which invest substantially all their assets in securities of the types described in paragraphs
(a) to (d) above; and

		(iii)	can be turned into cash on not more than 30 days' notice; or

		(f)	any other debt security approved by the Lender,

in each case, denominated in a
currency of an Acceptable Jurisdiction and to which any member of the Group is alone (or together with other members of the Group
beneficially entitled at that time and which is not issued or guaranteed by any member of the Group or subject to any Security
Interest (other than Security Interests permitted under paragraphs (c)(xii) and (c)(xi) of Clause 17.5 (Negative pledge)).

    	35 

    	 

    

Consolidated
EBITDA means the consolidated net pre-taxation profits of the Group for a Measurement Period as adjusted by:

		(a)	adding back Interest Payable;

		(b)	taking no account of any exceptional or extraordinary item;

		(c)	excluding any amount attributable to minority interests;

		(d)	adding back depreciation and amortisation; and

		(e)	taking no account of any revaluation of an asset or any loss or gain over book value arising on
the disposal of an asset (otherwise than in the ordinary course of trading) by a member of the Group during that Measurement Period.

Interest
Payable means, in relation to any Measurement Period, all interest payable and similar charges of the Group expressed in Sterling
and determined on a consolidated basis in accordance with Applicable Accounting Principles but excluding interest payable or similar
charges of the Group in relation to intra-Group items, loans from Affiliates and shareholder loans to the extent that such intra-Group
items, loans from Affiliates and/or shareholder loans are subordinated on the terms set out in a Subordination Deed.

Measurement
Period means each period of 12 months ending on 31 March or 30 September.

Regulatory
Asset Base means at any date, the regulatory asset base of the Company for such date as last determined and notified to
the Company by OFGEM (interpolated as necessary and adjusted for additions to the regulatory asset base and adjusted as appropriate
for out-turn inflation/regulatory depreciation). 

Total Net
Debt means, at any time, the consolidated Financial Indebtedness of the Group which is required to be accounted for as debt
in the consolidated annual financial statements of the Group less the aggregate at such time of all Cash or Cash Equivalent Investments
held by any member of the Group excluding intra-Group items, loans from Affiliates and shareholder loans to the extent that such
intra-Group items, loans from Affiliates and/or shareholder loans are subordinated on the terms set out in a Subordination Deed.

		16.2	Interpretation

		(a)	Except as provided to the contrary in this Agreement, an accounting term used in this Clause is
to be construed in accordance with the principles applied in connection with the Original Financial Statements.

		(b)	Any amount in a currency other than Sterling is to be taken into account at its Sterling equivalent
calculated on the basis of:

		(i)	the Agent's Spot Rate of Exchange on the day the relevant amount falls to be calculated; or

		(ii)	if the amount is to be calculated on the last day of a financial period of the Company, the relevant
rates of exchange used by the Company in, or in connection with, its financial statements for that period.

		(c)	No item must be credited or deducted more than once in any calculation under this Clause.

    	36 

    	 

    

		16.3	Interest Cover

The Company must ensure that the
ratio of Consolidated EBITDA to Interest Payable is not, on the last day of each Measurement Period, less than 3 to 1.

		16.4	Asset Cover

The Company must ensure that on
the last day of each Measurement Period, Total Net Debt does not exceed 85% of its Regulatory Asset Base.

		17.	General Covenants

		17.1	General

The Company agrees to be bound
by the covenants set out in this Clause relating to it and, where the covenant is expressed to apply to each Material Subsidiary
or each member of the Group, the Company must ensure that each of its Material Subsidiaries or each of its Subsidiaries, as the
case may be, performs that covenant.

		17.2	Authorisations

The Company must promptly obtain,
maintain and comply with the terms of any authorisation required under any law or regulation to enable it to perform its obligations
under, or, subject to the Legal Reservations, for the validity or enforceability of, any Finance Document.

		17.3	Compliance with laws

Each member of the Group must
comply in all respects with all laws to which it is subject where failure to do so is reasonably likely to have a Material Adverse
Effect.

		17.4	Pari passu ranking

The Company must ensure that its
payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured
payment obligations, except for obligations mandatorily preferred by law applying to companies generally.

		17.5	Negative pledge

In this Clause 17.5, Quasi-Security
Interest means an arrangement or transaction described in paragraph (b) below.

		(a)	Except as provided below, neither the Company nor any Material Subsidiary may create or allow to
exist any Security Interest or Quasi-Security Interest on any of its assets.

		(b)	Except as provided below, neither the Company nor any Material Subsidiary may:

		(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased
to or re-acquired by the Company or any Material Subsidiary;

		(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms;

		(iii)	enter into any arrangement under which money or the benefit of a bank or other account may be applied,
set-off or made subject to a combination of accounts; or

		(iv)	enter into any other preferential arrangement having a similar effect,

    	37 

    	 

    

in circumstances where the arrangement
or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

		(c)	Paragraphs (a) and (b) above do not apply to:

		(i)	any lien arising by operation of law and in the ordinary course of trading;

		(ii)	any netting or set-off arrangement entered into by the Company in the ordinary course of its banking
arrangements for the purpose of netting debit and credit balances of members of the Group;

		(iii)	any Security Interest or Quasi-Security Interest created under or in connection with or arising
out of the Balancing and Settlement Code or any transactions or arrangements entered into in connection with the management of
risks relating thereto;

		(iv)	in respect of overdue amounts which have not been overdue for more than 30 days and/or are
being contested in good faith, liens arising solely by operation of law or by order of a court or tribunal (or by an agreement
of similar effect) and/or in the ordinary course of day to day business or operations;

		(v)	any Security Interest or Quasi-Security Interest arising out of title retention provisions in a
supplier's standard conditions of supply of goods acquired in the ordinary course of business or operations;

		(vi)	any Security Interest or Quasi-Security Interest created on any asset acquired after the date of
this Agreement for the sole purpose of financing or re-financing that acquisition and securing a principal, capital or nominal
amount not exceeding the cost of that acquisition, provided that the Security Interest or Quasi-Security Interest is removed
or discharged within six months of the date of acquisition of such asset;

		(vii)	any Security Interest or Quasi-Security Interest outstanding on or over any asset acquired after
the date of this Agreement and in existence at the date of such acquisition, provided that the Security Interest or Quasi-Security
Interest is removed or discharged within six months of the date of acquisition of such asset;

		(viii)	any Security Interest or Quasi-Security Interest created or outstanding on or over any asset of
any company which becomes a Material Subsidiary of the Company after the date of this Agreement where such Security Interest or
Quasi-Security Interest is created prior to the date on which such company becomes a Material Subsidiary of the Company and
is not created or increased in contemplation of such company being acquired and/or becoming a Material Subsidiary of the Company
and the Security Interest or Quasi-Security Interest is removed or discharged within six months of the date of such company becoming
a Material Subsidiary of the Company;

		(ix)	any Quasi-Security Interest arising as a result of a disposal which is a disposal permitted under
paragraph (b) of Clause 17.6;

		(x)	any netting arrangements under any swap or other hedging transaction which is on standard market
terms;

		(xi)	any Security Interest or Quasi-Security Interest over bank accounts of the Company in favour of
the account holding bank with whom it maintains a banking relationship

    	38 

    	 

    

in the ordinary course of trade
and granted as part of that bank's standard terms and conditions;

		(xii)	any Security Interest or Quasi-Security Interest created or outstanding with the prior approval
of the Lender; and

		(xiii)	any Security Interest or Quasi-Security Interest created or outstanding on or over assets of the
Company or any of its Material Subsidiaries provided that the aggregate outstanding principal or nominal amount secured by all
Security Interests and Quasi-Security Interest created or outstanding under this exception on or over such assets shall not at
any time exceed £25,000,000 or its equivalent.

		17.6	Disposals

		(a)	Except as provided below, no member of the Group may, either in a single transaction or in a series
of transactions and whether related or not, dispose of all or any part of its assets (other than cash) where the higher of the
market value and the net consideration receivable (when aggregated with the higher of the market value and the net consideration
receivable from any previous disposal by members of the Group) exceeds £10,000,000 (or its equivalent) in total during the
term of this Agreement.

		(b)	Paragraph (a) above does not apply to:

		(i)	any disposal made in the ordinary course of day to day business or operations of the disposing
entity (including, without limitation, disposals of subsidiaries or lines of business, provided that this shall not include a disposal
of the core electricity distribution business);

		(ii)	disposals on normal commercial terms of obsolete assets or assets no longer required for the purpose
of the relevant member of the Group's business or operations;

		(iii)	any realisation of investments acquired, purchased or made by the temporary application of funds
not immediately required in the relevant member of the Group's business or operations;

		(iv)	the exchange of assets for other assets of a similar or superior nature and value, or the sale
of assets on normal commercial terms for cash which is payable in full on the completion of the sale and is to be, and is, applied
in or towards the purchase of similar assets within 12 months of that disposal (or, if contractually committed to be used within
12 months, are actually used within 18 months of that disposal);

		(v)	the disposal of assets by one wholly-owned Subsidiary of the Company to another or (if the consideration
for the disposal does not exceed a normal commercial consideration) to the Company by one of its Subsidiaries;

		(vi)	disposals in connection with sale-and-leaseback or sale and repurchase transactions or any other
form of "off balance sheet" financing, provided that the aggregate book value (in the books of the disposing party) of
all assets the subject of all such disposals made during the period commencing on the date of this Agreement and ending on the
date when no amount remains to be lent or remains payable under this Agreement shall not exceed £100,000,000;

		(vii)	any disposal which the Lender has agreed shall not be taken into account;

		(viii)	arising as a result of any Security Interest or Quasi-Security Interest permitted under paragraph
(c) above of Clause 17.5;

    	39 

    	 

    

		(ix)	the application or disposal of cash not otherwise prohibited under the Finance Documents;

		(x)	any disposal by a member of Group compulsorily required by law or regulation having the force of
law or any order of any government entity made thereunder and having the force of law provided that and to the extent permitted
by such law or regulation:

		(A)	such disposal is made for fair market value; and

		(B)	such disposal does not have a Material Adverse Effect.

		17.7	Environmental matters

		(a)	The Company will and will ensure that its Material Subsidiaries will comply with all applicable
Environmental Law and other regulations, orders or other law applicable to the conduct of the business of the supply or distribution
of electricity, in each case, where failure to do so would have a Material Adverse Effect.

		(b)	The Company will, promptly upon becoming aware of the same, inform the Lender in writing of:

		(i)	any Environmental Claim against any member of the Group which is current, pending or threatened;
and

		(ii)	any facts or circumstances which are reasonably likely to result in any Environmental Claim being
commenced or threatened against any member of the Group,

where the claim, if determined
against that member of the Group, would have a Material Adverse Effect.

		17.8	Insurance

Each member of the Group must
insure its business and assets with insurance companies to such an extent and against such risks as that member of the Group reasonably
considers to be appropriate, having regard to the insurance arrangements of companies engaged in similar business.

		17.9	Merger

The Company shall not enter into
any amalgamation, demerger, merger or corporate reconstruction.

		17.10	Change of business

The Company shall procure that
no substantial change is made to the general nature of the business of the Company or the Group from that carried on at the date
of this Agreement.

		17.11	Acquisitions

		(a)	Except as provided below, neither the Company nor any Material Subsidiary may acquire a company
or any shares or securities or a business or undertaking (or, in each case, any interest in any of them).

		(b)	Provided that no Event of Default is outstanding on the date of the acquisition or would occur
as a result of the acquisition, paragraph (a) above does not apply to:

		(i)	an acquisition by a member of the Group of an asset sold, leased, transferred or otherwise disposed
of by another member of the Group as permitted under paragraph (b) of Clause 17.6 (Disposals) above;

    	40 

    	 

    

		(ii)	an acquisition where the consideration (including associated costs and expenses) for the acquisition
(when aggregated with the consideration (including associated costs and expenses) for any other acquisition permitted under this
paragraph) during the term of this Agreement does not exceed 5% of the sum of the issued share capital, share premium and consolidated
reserves (including retained earnings) of the Company, as shown by its most recent audited consolidated financial statements; and

		(iii)	any acquisition which the Lender has consented to in writing.

		17.12	Prohibition on Subsidiary Financial Indebtedness

The Company shall procure that
no member of the Group (other than the Company) will incur or allow to remain outstanding any Financial Indebtedness unless the
relevant member of the Group is a special purpose vehicle incorporated solely for the purpose of incurring such Financial Indebtedness
and which does not undertake any other activities.

		17.13	Arm's length transactions

The Company shall not (and the
Company shall ensure no member of the Group will) enter into any transaction with any person except on arm's length terms and for
full market value where to do so would be in contravention of the Licence, provided that if, at any time, the Licence is not in
effect, the Company shall not (and shall ensure no member of the Group will) enter into any transaction with any person except
on arm's length terms and for full market value.

		17.14	Pensions

		(a)	The Company shall ensure that no action or omission is taken by any member of the Group in relation
to a pension scheme which has or is reasonably likely to have a Material Adverse Effect (including, without limitation, the termination
or commencement of winding-up proceedings of any such pension scheme).

		(b)	Except for in respect of the Electricity Supply Pension Scheme (and in particular the E.On Group,
Networks Group and in the case of merger, the WPD Group), the Company shall ensure that no member of the Group is an employer
(for the purposes of sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money purchase
scheme (both terms as defined in the Pension Schemes Act 1993) or "connected" with or an "associate" of
(as those terms are used in sections 38 or 43 of the Pensions Act 2004) such an employer.

		(c)	The Company shall promptly notify the Lender if it receives a Financial Support Direction or a
Contribution Notice from the Pensions Regulator.

		17.15	Licence

The Company will at all times:

		(a)	comply with the terms of the Licence in all material respects;

		(b)	without prejudice to the generality of paragraph (a) above of Clause 17.15, comply with the ring
fencing provisions of the Licence in all respects; and

		(c)	not take any action or make any omission which is reasonably likely to result in the revocation
or termination of the Licence.

    	41 

    	 

    

		17.16	Investment Grade Rating

The Company shall procure that
the long-term, unsecured and non credit-enhanced debt obligations of the Company shall be rated Baa3/BBB-, or such higher rating
as required by the Licence, or above, by at least one of Moody's and Standard and Poor's and shall not be rated below Baa3/BBB-,
or such higher rating as required by the Licence, by either of Moody's or Standard and Poor's.

		17.17	Sanctions

		(a)	Neither the Company, nor any other member of the Group, shall be the subject of any sanctions administered
or enforced by the U.S. Department of Treasury's Office of Foreign Assets Control (the OFAC), the United Nations Security
Council (the UNSC), the European Union, Her Majesty's Treasury (the HMT), or other relevant sanctions authority (collectively,
Sanctions), and no member of the Group shall be located, organized or resident in a country or territory that is the subject
of country-wide or territory-wide Sanctions.

		(b)	The Company undertakes that no member of the Group will, directly or indirectly, use the proceeds
of the transaction, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other
individual or entity (the "Person"), to fund any activities of or business with any Person, or in Syria, Cuba, Iran,
North Korea, Sudan or in any other country or territory, that, at the time of such funding, is the subject of country-wide or territory-wide
Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction,
whether as underwriter, advisor, investor or otherwise) of Sanctions.

		(c)	The Company shall ensure that the source of any funds for discharging its obligations under this
Agreement is not obtained from any designated target of any Sanctions or any of Syria, Cuba, Iran, North Korea, Sudan or any other
country or territory, that, at the time of such payment, is the subject of country-wide or territory-wide Sanctions.

		17.18	Anti-Corruption

		(a)	The Company shall not (and shall ensure that no other member of the Group will) use the proceeds,
or cause or permit the proceeds of any Loan to be used, directly or indirectly, in any way that would be in breach of applicable
anti-corruption laws.

		(b)	The Company shall (and shall ensure that each other member of the Group will):

		(i)	conduct its businesses in compliance with applicable anti-corruption laws; and

		(ii)	maintain policies and procedures designed to promote and achieve compliance with such laws.

		18.	Default

		18.1	Events of Default

Each of the events set out in
this Clause is an Event of Default.

		18.2	Non-payment

The Company fails to pay any sum
payable under any Finance Document when due unless its failure to pay is caused by:

		(a)	administrative or technical error; or

    	42 

    	 

    

		(b)	a Disruption Event,

and payment is made within five
Business Days of its due date.

		18.3	Breach of other obligations

		(a)	The Company does not perform or comply with its obligations under Clause 16 (Financial Covenants).

		(b)	The Company does not perform or comply with any of its other obligations under any Finance Document
in any material respect or any representation or warranty by the Company in this Agreement or in any document delivered under it
is or proves to have been incorrect when made or deemed repeated, unless the non-compliance or circumstances giving rise to
the misrepresentation, as the case may be, is capable of remedy and is not remedied within 20 Business Days of the earlier
of the Lender giving notice requiring the same to be remedied and the Company becoming aware of such non-compliance or misrepresentation,
as the case may be.

		18.4	Cross-default

		(a)	Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally
applicable grace period.

		(b)	Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due
and payable prior to its specified maturity as a result of an event of default (however described).

		(c)	Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended
by a creditor of that member of the Group as a result of an event of default (however described).

		(d)	Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness
of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described).

		(e)	No Event of Default will occur under this Clause 18.4 unless and until the aggregate amount of
such Financial Indebtedness falling within paragraphs (a) to (d) above is more than £20,000,000 or its equivalent in any
other currency or currencies.

		18.5	Insolvency

		(a)	Any of the following occurs in respect of the Company:

		(i)	it is unable to pay its debts generally as they fall due or it is deemed by a court of competent
jurisdiction to be insolvent;

		(ii)	it suspends making payments on all or any class of its debts or publicly announces an intention
to do so;

		(iii)	by reason of actual or anticipated financial difficulties, it begins negotiations with all or any
class of its creditors for the general rescheduling of its indebtedness; or

		(iv)	a moratorium is declared in respect of any of its indebtedness.

		(b)	If a moratorium occurs in respect of the Company, the ending of the moratorium will not remedy
any Event of Default caused by the moratorium.

    	43 

    	 

    

		18.6	Insolvency proceedings

		(a)	Except as provided below, any of the following occurs in respect of the Company:

		(i)	a suspension of payments, a moratorium of any indebtedness or a reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise);

		(ii)	any person presents a petition for its winding-up, administration or dissolution;

		(iii)	an order for its winding-up, administration or dissolution is made;

		(iv)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative
receiver, administrator or similar officer is appointed in respect of it or any of its assets;

		(v)	its directors or other officers request the appointment of a liquidator, trustee in bankruptcy,
judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer;

		(vi)	enforcement of any Security over any of its assets; or

		(vii)	any other analogous step or procedure is taken in any jurisdiction.

		(b)	Paragraph (a) above does not apply to:

		(i)	a petition for winding-up presented by a creditor which is being actively contested in good faith
and with due diligence and with a reasonable prospect of success; or

		(ii)	a voluntary solvent winding-up, amalgamation, reconstruction or reorganisation or otherwise part
of a solvent scheme of arrangement, in each case which is on terms approved by the Lender.

		18.7	Creditors' process

A distress, attachment, execution
or other legal process material in relation to the Company's ability to perform its payment obligations under this Agreement is
levied, enforced or sued out on or against the assets of the Company and is not discharged or stayed within 30 days.

		18.8	Licence

Either:

		(a)	notice is given to revoke or terminate the Licence unless such termination is being contested in
good faith and such notice is revoked or cancelled within 14 days of notice being given; or

		(b)	the Licence is revoked,

in either case, other than in
circumstances which permit the Company or its Subsidiaries to carry on the distribution business of the Company either without
a licence as a result of any change in the Act or regulatory regime or with a new licence, permitting the distribution of electricity
in the authorised areas covered by the Licence, issued under the Act or pursuant to the Utilities Act, 2000.

    	44 

    	 

    

		18.9	Balancing and Settlement Code

The Company:

		(a)	ceases to be a party to the Balancing and Settlement Code Framework Agreement other than in circumstances
where the Company is able to carry on its distribution business; or

		(b)	breaches the Balancing and Settlement Code and such breach has or is reasonably likely to have
a Material Adverse Effect.

		18.10	Unlawfulness and invalidity

		(a)	It is or becomes unlawful for the Company to perform any of its obligations under the Finance Documents
in any material respect.

		(b)	Any obligation or obligations of the Company under any Finance Documents are not (subject to the
Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially
and adversely affects the interests of the Lender under the Finance Documents.

		18.11	Cessation of business

The Company suspends or ceases
to carry on (or threatens to suspend or cease to carry on) all or a material part of its business except as a result of a disposal
permitted by Clause 17.6 (Disposals).

		18.12	Repudiation and rescission of agreements

The Company rescinds or purports
to rescind or repudiates or purports to repudiate a Finance Document or evidences an intention to rescind or repudiate a Finance
Document.

		18.13	Ownership of other Group companies

The Company ceases to own (directly
or indirectly) 100% of the shares in any of its Subsidiaries:

		(a)	which is engaged in the core electricity distribution business; or

		(b)	in respect of which it has any actual or contingent financial obligations other than as a result
of a solvent liquidation or reorganisation so long as any payments or assets distributed as a result of such solvent liquidation
or reorganisation are distributed to other members of the Group.

		18.14	Acceleration

If an Event of Default is outstanding,
the Lender may by notice to the Company:

		(a)	cancel the Commitment; and/or

		(b)	declare that all or part of any amounts outstanding under the Finance Documents are:

		(i)	immediately due and payable; and/or

		(ii)	payable on demand by the Lender.

Any notice given under this Clause
18.14 will take effect in accordance with its terms.

    	45 

    	 

    

		19.	Evidence and Calculations

		19.1	Accounts

Accounts maintained by the Lender
in connection with this Agreement are prima facie evidence of the matters to which they relate for the purpose of any litigation
or arbitration proceedings.

		19.2	Certificates and determinations

Any certification or determination
by the Lender of a rate or amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of
the matters to which it relates.

		19.3	Calculations

Any interest or fee accruing under
this Agreement accrues from day to day and is calculated on the basis of, the actual number of days elapsed in the relevant period
divided by 365 and shall be rounded to five decimal places.

		20.	Indemnity

		20.1	Indemnity

		(a)	Subject to paragraph (b) below, the Company shall, within five Business Days of a demand by the
Lender indemnify the Lender against any cost, loss or liability which the Lender incurs as a consequence of:

		(i)	the occurrence of any Event of Default;

		(ii)	the acceleration of the Loan;

		(iii)	a failure by the Company to pay any amount due under a Finance Document on its due date;

		(iv)	the Lender's funding or making arrangements to fund the Loan requested by the Company in a Request
but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of negligence
or default by the Lender alone);

		(v)	the Loan or part of the Loan not being prepaid in accordance with a notice of prepayment given
by the Company; or

		(vi)	any prepayment of the Loan being made under any provision of this Agreement.

		(b)	If:

		(i)	any cost, loss or liability incurred by the Lender under paragraph (a) above is in respect of any
Swap Break Costs, the provisions of paragraphs (c) to (e) (inclusive) below shall apply; and

		(ii)	any Swap Break Costs are received by the Lender under any Related Swap Agreement due to the termination
by the Lender of the Related Swap Agreement as a result of any event specified in paragraph (a) above, the provisions of paragraphs
(c) to (e) (inclusive) below shall apply and the Lender shall pay the amount of such Swap Break Costs to the Company in accordance
therewith.

    	46 

    	 

    

		(c)	On the date of termination by the Lender of the Related Swap Agreement as a result of an event
specified in paragraph (a) above (the Termination Date), the Lender shall notify the Company that such termination has occurred.

		(d)	The Swap Break Costs shall be the amount certified in writing (including such calculations
as are shown in any statement provided under the Related Swap Agreement by the parties thereto pursuant to section 6(d)(i) (Statement)
of the 2002 ISDA Master Agreement) by the Lender to be the Early Termination Amount under and as defined in the Related Swap Agreement
which is payable by the Lender to the counterparty to the Related Swap Agreement or which is payable by the counterparty to the
Related Swap Agreement to the Lender (as applicable) as a result of the Lender closing out or unwinding the Related Swap Agreement
due to an event specified in paragraph (a) above, such certification to be delivered by the Lender to the Company as soon as reasonably
practicable after determination of the Early Termination Amount under and as defined in the Related Swap Agreement.

		(e)	No Swap Break Costs shall be payable by any Party until the amount of the Swap Break Costs has
been determined in accordance with this Clause. If the Swap Break Costs are a cost or loss to the Lender, the Company shall within
two Business Days of demand pay such amount to the Lender. If the Swap Break Costs are a receipt or gain by the Lender, the Lender
shall within two Business Days of demand pay such amount to the Company.

		(f)	The Lender agrees that it shall not:

		(i)	waive its rights under the Related Swap Agreement; or

		(ii)	request that the counterparty to the Related Swap Agreement waives its rights thereunder,

in each case without the prior
consent of the Company.

		21.	Expenses

		21.1	Initial costs

Subject to any cap agreed between
the Parties, the Company must pay to the Lender promptly on demand the amount of all costs and expenses (including legal fees)
reasonably incurred by it in connection with the negotiation, preparation, printing and execution of the Finance Documents.

		21.2	Subsequent costs

Subject to any cap agreed between
the Parties, the Company must pay to the Lender promptly on demand the amount of all costs and expenses (including legal fees)
reasonably incurred by it in connection with:

		(a)	the negotiation, preparation, printing and execution of any Finance Document (other than a Transfer
Certificate) executed after the date of this Agreement; and

		(b)	any amendment, waiver or consent requested by or on behalf of the Company or specifically allowed
by this Agreement.

		21.3	Enforcement costs

The Company must pay to the Lender
the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement of, or the preservation
of any rights under, any Finance Document.

    	47 

    	 

    

		22.	Amendments and Waivers

		22.1	Procedure

The
Lender and the Company may agree to amend or waive any term of the Finance Documents.

		22.2	Change of currency

If a change in any currency of
a country occurs (including where there is more than one currency or currency unit recognised at the same time as the lawful currency
of a country), the Finance Documents will be amended to the extent the Lender (acting reasonably and after consultation with the
Company) determines is necessary to reflect the change.

		22.3	Waivers and remedies cumulative

The rights of the Lender under
the Finance Documents:

		(a)	may be exercised as often as necessary;

		(b)	are cumulative and not exclusive of its rights under the general law; and

		(c)	may be waived only in writing and specifically.

Delay in exercising or non-exercise
of any right is not a waiver of that right.

		23.	Changes to the Parties

		23.1	Assignments and transfers by the Company

The Company may not assign or
transfer any of its rights and obligations under the Finance Documents without the prior consent of the Lender.

		23.2	Assignments and transfers by the Lender

		(a)	The Lender (the Existing Lender) may, subject to the following provisions of this Clause
23, at any time assign or transfer (including by way of novation) in whole but not in part its rights and obligations under this
Agreement to any bank, financial institution or trust, fund or other entity which is regularly engaged in or established for the
purpose of making, purchasing or investing in loans, securities or other financial assets (the New Lender).

		(b)	The Existing Lender must first obtain the consent of the Company (such consent not to be unreasonably
withheld or delayed and which shall be deemed to have been given if, after five Business Days following receipt of notice, the
Company has not refused its consent) before it may make a transfer or assignment unless:

		(i)	the New Lender to whom the transfer or assignment is proposed to be made is an Affiliate of the
Existing Lender; or

		(ii)	the transfer or assignment is made at a time when an Event of Default has occurred and is continuing.

		(c)	An assignment of rights or a transfer of rights and obligations will be effective only if either:

		(i)	the obligations are novated in accordance with the following provisions of this Clause 23;
or

    	48 

    	 

    

		(ii)	the New Lender confirms to the Company that it is bound by the terms of this Agreement as a Lender.
On the assignment or transfer becoming effective in this manner the Existing Lender will be released from its rights and obligations
under this Agreement to the extent that they are assigned or transferred to the New Lender.

		(d)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount
is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil.

		23.3	Procedure for transfer by way of novations

		(a)	In this Clause:

Transfer
Date means, for a Transfer Certificate, the proposed Transfer Date specified in that Transfer Certificate.

		(b)	A novation is effected if the Existing Lender and the New Lender execute a duly completed Transfer
Certificate.

		(c)	On the Transfer Date:

		(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to be the
subject of the novation in the Transfer Certificate in substitution for the Existing Lender; and

		(ii)	the Existing Lender will be released from those obligations and cease to have those rights.

		23.4	Limitation of responsibility of Existing Lender

		(a)	Unless expressly agreed to the contrary, an Existing Lender is not responsible to a New Lender
for the legality, validity, adequacy, accuracy, completeness or performance of:

		(i)	any Finance Document or any other document; or

		(ii)	any statement or information (whether written or oral) made in or supplied in connection with any
Finance Document,

and any representations or warranties
implied by law are excluded.

		(b)	The New Lender confirms to the Existing Lender that it:

		(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or
in connection with the Finance Documents (including the financial condition and affairs of the Company and its related entities
and the nature and extent of any recourse against any Party or its assets) in connection with its participation in this Agreement;
and

		(ii)	has not relied exclusively on any information supplied to it by the Existing Lender in connection
with any Finance Document.

		(c)	Nothing in any Finance Document requires an Existing Lender to:

		(i)	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned
or transferred under this Clause; or

    	49 

    	 

    

		(ii)	support any losses incurred by the New Lender by reason of the non-performance by the Company of
its obligations under any Finance Document or otherwise.

		23.5	Costs resulting from change of Lender or Facility Office

If:

		(a)	the Lender assigns or transfers any of its rights and obligations under the Finance Documents or
changes its Facility Office; and

		(b)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the
Company would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 9 (Tax
Gross-Up and Indemnities) or Clause 11 (Increased Costs),

then the New Lender or Lender
acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing
Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.
This Clause 23.5 shall not apply in relation to Clause 9 (Tax Gross-Up and Indemnities), to a Treaty Lender that has included an
indication to the effect that it wishes the HMRC DT Treaty Passport scheme to apply to this Agreement in accordance with paragraph (a)
of Clause 9.5 (HMRC DT Treaty Passport scheme confirmation) if the Company making the payment has not complied with its obligations
under paragraph (b) of Clause 9.5 (HMRC DT Treaty Passport scheme confirmation).

		23.6	Copy of Transfer Certificate to the Company

The Existing Lender shall, as
soon as reasonably practicable after it has executed a Transfer Certificate, send to the Company a copy of that Transfer Certificate.

		23.7	Security over Lender's rights

In addition to the other rights
provided to Lender under this Clause 23, the Lender may without consulting with or obtaining consent from the Company, at any time
charge, assign or otherwise create security in or over (whether by way of collateral or otherwise) all or any of its rights under
any Finance Document to secure its obligations including, without limitation:

		(a)	any charge, assignment or other security to secure obligations to a federal reserve or central
bank; and

		(b)	if the Lender is a fund, any charge, assignment or other security granted to any holders (or trustee
or representatives of holders) of obligations owed, or securities issued, by the Lender as security for those obligations or securities,

except that no such charge, assignment
or Security shall:

		(i)	release the Lender from any of its obligations under the Finance Documents or substitute the beneficiary
of the relevant charge, assignment or other security for the Lender as a party to any of the Finance Documents; or

		(ii)	require any payments to be made by the Company or grant to any person any more extensive rights
than those required to be made or granted to the Lender under the Finance Documents.

    	50 

    	 

    

		24.	Confidentiality and Disclosure of Information

		24.1	Confidential Information

The
Lender agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted
by Clause 24.2 (Disclosure of Confidential Information) and Clause 24.3 (Disclosure to numbering service providers), and to ensure
that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential
information.

		24.2	Disclosure of Confidential Information

The Lender may disclose:

		(a)	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees,
professional advisers, auditors, partners and Representatives such Confidential Information as the Lender shall consider appropriate
if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its
confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there
shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality
of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		(b)	to any person:

		(i)	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any
of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as
Lender and, in each case, to any of that person's Affiliates, Related Funds, Representatives and professional advisers;

		(ii)	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly,
any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference
to, one or more Finance Documents and/or the Company and to any of that person's Affiliates, Related Funds, Representatives and
professional advisers;

		(iii)	appointed by the Lender or by a person to whom paragraph (b)(i) or (b)(ii) above applies to receive
communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

		(iv)	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly
or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

		(v)	to whom information is required or requested to be disclosed by any court of competent jurisdiction
or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange
or pursuant to any applicable law or regulation;

		(vi)	to whom or for whose benefit the Lender charges, assigns or otherwise creates security (or may
do so) pursuant to Clause 23.7 (Security over Lender's rights);

    	51 

    	 

    

		(vii)	to whom information is required to be disclosed in connection with, and for the purposes of, any
litigation, arbitration, administrative or other investigations, proceedings or disputes;

		(viii)	who is a Party; or

		(ix)	with the consent of the Company;

in each case, such Confidential
Information as the Lender shall consider appropriate if:

		(A)	in relation to paragraph (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential
Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality
Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality
of the Confidential Information;

		(B)	in relation to paragraph (b)(vi) above, the person to whom the Confidential Information is to be
given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive
information;

		(C)	in relation to paragraph (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential
Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be
price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party,
it is not practicable so to do in the circumstances;

		(c)	to any person appointed by the Lender or by a person to whom paragraph (b)(i) or (b)(ii) above
applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation,
in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required
to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) of Clause 24.2
if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially
in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other
form of confidentiality undertaking agreed between the Company and the Lender;

		(d)	to any rating agency (including its professional advisers) such Confidential Information as may
be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents
and/or the Company if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature
and that some or all of such Confidential Information may be price-sensitive information.

		24.3	Disclosure to numbering service providers

		(a)	The Lender may disclose to any national or international numbering service provider appointed by
the Lender to provide identification numbering services in respect of this Agreement, the Loan and/or the Company the following
information:

		(i)	name of the Company;

		(ii)	country of domicile of the Company;

    	52 

    	 

    

		(iii)	place of incorporation of the Company;

		(iv)	date of this Agreement;

		(v)	date of each amendment and restatement of this Agreement;

		(vi)	amount of Commitment;

		(vii)	currency of the Loan;

		(viii)	type of Loan;

		(ix)	ranking of Loan;

		(x)	Final Maturity Date;

		(xi)	changes to any of the information previously supplied pursuant to paragraphs (i) to (x) above;
and

		(xii)	such other information agreed between the Lender and the Company,

to enable such numbering service
provider to provide its usual syndicated loan numbering identification services.

		(b)	The Parties acknowledge and agree that each identification number assigned to this Agreement, the
Loan and/or the Company by a numbering service provider and the information associated with each such number may be disclosed to
users of its services in accordance with the standard terms and conditions of that numbering service provider.

		(c)	The Company represents that none of the information set out in paragraphs (a)(i) to (a)(xii) above
is, nor will at any time be, unpublished price-sensitive information.

		(d)	The Lender shall notify the Company of:

		(i)	the name of any numbering service provider appointed by the Lender in respect of this Agreement,
the Loan and/or the Company; and

		(ii)	the number or, as the case may be, numbers assigned to this Agreement, the Loan and/or the Company
by such numbering service provider.

		25.	Set-off

The
Lender may set off any matured obligation owed to it by the Company under the Finance Documents (to the extent beneficially owned
by that Finance Party) against any obligation (whether or not matured) owed by the Lender to the Company, regardless of the place
of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Lender may convert
either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If the Lender exercises
its rights of set-off or conversion it must as soon as reasonably practicable notify the Company of such exercise.

		26.	Severability

If a term of a Finance Document
is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:

    	53 

    	 

    

		(a)	the legality, validity or enforceability in that jurisdiction of any other term of the Finance
Documents; or

		(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of the
Finance Documents.

		27.	Counterparts

Each Finance Document may be executed
in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of the Finance
Document.

		28.	Notices

		28.1	In writing

		(a)	Any communication in connection with a Finance Document must be in writing and, unless otherwise
stated, may be given in person, by post, or fax or any other electronic communication agreed between the Parties.

		(b)	For the purpose of the Finance Documents, an electronic communication will be treated as being
in writing.

		(c)	Unless it is agreed to the contrary, any consent or agreement required under a Finance Document
must be given in writing.

		28.2	Contact details

		(a)	Except as provided below, the contact details of each Party for all communications in connection
with the Finance Documents are those notified by that Party for this purpose to the other Party on or before the date it becomes
a Party.

		(b)	The contact details of the Company for this purpose are:

Address:Avonbank, Feeder Road,
Bristol BS2 0TB

Fax number:01179 332 108

Phone number:01179 332 354

Email:jhunt9@westernpower.co.uk

Attention:Julie Hunt

The contact details of the Lender
for this purpose are:

	            Address:	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	 	Ropemaker Place
	 	25 Ropemaker Street
	 	London EC2Y 9AN
	 	United Kingdom
	 	 
	            Fax number(s):	+44 (0) 20 7577 1173 and +44 (0) 20 7577 1559
	 	 
	            Attention:	Administration: The Manager, Loans Participations

    	54 

    	 

    

		(c)	Any Party may change its contact details by giving five Business Days' notice to the other Party.

		(d)	Where a Party nominates a particular department or officer to receive a communication, a communication
will not be effective if it fails to specify that department or officer.

		28.3	Effectiveness

		(a)	Except as provided below, any communication in connection with a Finance Document will be deemed
to be given as follows:

		(i)	if delivered in person, at the time of delivery;

		(ii)	if posted, five days after being deposited in the post, postage prepaid, in a correctly addressed
envelope; and

		(iii)	if by fax, when received in legible form.

		(b)	A communication given under paragraph (a) above but received on a non-working day or after business
hours in the place of receipt will only be deemed to be given on the next working day in that place.

		(c)	A communication to the Lender will only be effective on actual receipt by it.

		29.	Language

		(a)	Any notice given in connection with a Finance Document must be in English.

		(b)	Any other document provided in connection with a Finance Document must be:

		(i)	in English; or

		(ii)	accompanied by a certified English translation. In this case, the English translation prevails
unless the document is a statutory or other official document.

		30.	Governing Law

This Agreement and any non-contractual
obligations arising out of or in connection with it are governed by English law.

		31.	Enforcement

		31.1	Jurisdiction

		(a)	The English courts have exclusive jurisdiction to settle any dispute in connection with any Finance
Document including a dispute relating to any non-contractual obligation arising out of or in connection with this Agreement.

		(b)	The English courts are the most appropriate and convenient
courts to settle any such dispute and the Company waives objection to those courts on the grounds of inconvenient forum or otherwise
in relation to proceedings in connection with any Finance Document.

		(c)	This Clause is for the benefit of the Lender only. To the extent allowed by law, the Lender may
take:

		(i)	proceedings in any other court; and

    	55 

    	 

    

		(ii)	concurrent proceedings in any number of jurisdictions.

THIS AGREEMENT has been entered
into on the date stated at the beginning of this Agreement.

    	56 

    	 

    

Schedule
1

 Conditions
Precedent Documents

		1.	Corporate documents

		(a)	A certified copy of the constitutional documents of the Company.

		(b)	A certified copy of a resolution provided in lieu of a meeting of the board of directors or a committee
of the board of directors of the Company approving the terms of, and the transactions contemplated by, the Finance Documents.

		(c)	A specimen of the signature of each person authorised on behalf of the Company to execute or witness
the execution of any Finance Document or to sign or send any document or notice in connection with any Finance Document.

		(d)	A certificate of the Company (signed by a director) confirming that borrowing the Total Commitments
would not cause any borrowing limit binding on the Company to be exceeded.

		(e)	A certificate of an authorised signatory of the Company certifying that each copy document relating
to it specified in this Schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this
Agreement.

		2.	Finance documents

This Agreement executed by the
Company.

		3.	Legal opinions

A legal opinion of Allen &
Overy LLP, legal advisers to the Company addressed to the Lender.

		4.	Other documents and evidence

		(a)	The Original Financial Statements.

		(b)	Evidence that the Lender has carried out and is satisfied it has complied with all necessary "know
your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated
by the Finance Documents.

    	57 

    	 

    

Schedule
2

 Form
of Transfer Certificate

		To:	The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Lender

		From:	[THE EXISTING LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)

		Date:	[l]

Western Power Distribution (East Midlands)
plc – £100,000,000 Inflation-Linked 

Loan Agreement dated [l] 2016 (the Agreement)

We refer to the Agreement. This is a
Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different
meaning in this Transfer Certificate.

		1.	The Existing Lender and the New Lender agree to the Existing Lender transferring by novation to
the New Lender, and in accordance with Clause 23.3 (Procedure for transfer by way of novations), all of the Existing Lender's rights
and obligations under the Agreement and the other Finance Documents (the Transfer).

		2.	The proposed Transfer Date is [l].

		3.	The administrative details of the New Lender for the purposes of the Agreement are set out in the
Schedule.

		4.	The New Lender confirms that the transfer complies with and satisfies the requirements set out
in Clause 23.2 (Assignments and transfers by the Lender).

		5.	The New Lender represents to the Company that, as at the date hereof, it is:

		(a)	[a Qualifying Lender falling within paragraph (i)(A) or paragraph (ii) of the definition of Qualifying
Lender;]

		(b)	[a Treaty Lender;]

		(c)	[not a Qualifying Lender].*

		6.	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender
in respect of an advance under a Finance Document is either:

		(a)	a company resident in the United Kingdom for United Kingdom tax purposes; or

		(b)	a partnership each member of which is:

		(i)	a company so resident in the United Kingdom; or

		(ii)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section
19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

    	58 

    	 

    

		(c)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom
through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable
profits (within the meaning of section 19 of the CTA) of that company.]**

		7.	[The New Lender confirms that it is a Treaty Lender that holds a passport under the HMRC DT Treaty
Passport scheme (reference number [l]), and is tax resident in [l]
*** so that interest payable to it by the Company is generally subject to full exemption from UK withholding tax and notifies the
Company that the Company must make an application to HM Revenue & Customs under form DTTP2 within 30 days of the Transfer Date.]****

NOTES:

		*	Delete as applicable – each New Lender is required to confirm which of these three categories
it falls within.

		**	Include if New Lender comes within paragraph (i)(B) of the definition of Qualifying Lender in Clause 9.1
(Definitions).

		***	Insert jurisdiction of tax residence.

		****	This confirmation must be included if the New Lender holds a passport under the HMRC DT Treaty
Passport scheme and wishes that scheme to apply to the Agreement.

		8.	This Transfer Certificate and any non-contractual obligations arising out of or in connection with
it are governed by English law.

    	59 

    	 

    

THE SCHEDULE

Rights and obligations to be transferred
by novation

[insert relevant details]

Administrative details of the New
Lender

[insert details of Facility Office, address
for notices and payment details etc.]

[EXISTING LENDER]                                   [NEW
LENDER]

By:                                                                    By:

The Transfer Date is [l]

[l]

By: _____________________________

 

    	60 

    	 

    

Schedule
3

 Form
of Compliance Certificate

To:The
Bank of Tokyo-Mitsubishi UFJ, Ltd. as Lender

From:Western Power Distribution
(East Midlands) plc

Date:[l]

Western Power Distribution (East Midlands)
plc – £100,000,000 Inflation-Linked 

Loan Agreement dated [l] 2016 (the Agreement)

		1.	We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have
the same meaning in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

		2.	We confirm that as at [relevant testing date], Consolidated EBITDA was [l]
and Interest Payable was [l], therefore the ratio of Consolidated EBITDA to Interest
Payable was [l] to 1.

		3.	We confirm that as at [relevant testing date], Regulatory Asset Base was [l]
and Total Net Debt was [l]; therefore Total Net Debt does not exceed 85% of the Regulatory
Asset Base.

		4.	We set out below calculations establishing the figures in paragraphs 2 and 3 above:

[l].

		5.	We confirm that the following companies were Material Subsidiaries at [relevant testing date]:

[l].

		6.	[We confirm that no Default is outstanding as at [relevant testing date].]1

WESTERN POWER DISTRIBUTION (EAST
MIDLANDS) PLC 

By:

Director

 

Director

__________________________

		[1]	If this statement cannot be made, the certificate should identify any Default that is outstanding
and the steps, if any, being taken to remedy it.

    	61 

    	 

    

Schedule
4

 Form
of Subordination Deed

THIS
SUBORDINATION DEED is entered into as a deed on [                              ]
and is made

BETWEEN:

		(1)	WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC (registered number 02366923) (the Company);

		(2)	[SUBORDINATED CREDITOR] (the Subordinated Creditor); and

		(3)	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (the Lender).

		1.	Interpretation

		1.1	Definitions

In this Deed:

Agreement
means the £100,000,000 Inflation-Linked Loan Agreement dated [l] 2016 between
the Company and the Lender.

Certificate
means a document substantially in the form set out in Annex 2 (Form of Certificate).

Party means
a party to this Deed.

Permitted
Subordinated Debt Payment means:

		(a)	the repayment or prepayment of any principal amount (or capitalised interest) outstanding under
the Subordinated Finance Document;

		(b)	the payment of any interest, fee or charge accrued or due under or any other amount payable in
connection with the Subordinated Finance Document; or

		(c)	the purchase, redemption, defeasance or discharge of any amount outstanding under the Subordinated
Finance Document,

provided that the Company, prior
to any action referred to in paragraphs (a) to (c) above being taken, delivers to the Lender a Certificate, signed by two directors
of the Company, certifying that, taking into account any such action, the Company will be in compliance with its obligations under
Clause ‎16 (Financial Covenants) of the Agreement on each of the next two Measurement Dates.

Senior Debt
means any present or future liability (actual or contingent) payable or owing by the Company to the Lender under or in connection
with the Finance Documents.

Senior Debt
Discharge Date means the date on which all the Senior Debt has been unconditionally and irrevocably paid and discharged in
full and the Lender has no commitment or liability, whether present or future, actual or contingent, in relation to the Loan, as
determined by the Lender.

Subordinated
Creditor Accession Deed means a deed substantially in the form set out in Annex 1 (Form of Subordinated Creditor Accession
Deed).

    	62 

    	 

    

Subordinated
Debt means any present or future liability (actual or contingent) payable or owing by the Company to the Subordinated Creditor
under or in connection with any Subordinated Finance Document.

Subordinated
Finance Document means [l].

		1.2	Construction

		(a)	Capitalised terms defined in the Agreement have the same meaning in this Deed, unless given a different
meaning in this Deed.

		(b)	The principles of construction set out in the Agreement will have effect as if set out in this
Deed.

		(c)	Any undertaking by the Subordinated Creditor in this Deed remains in force from the date of this
Deed to the Senior Debt Discharge Date.

		1.3	Third Party rights

Unless otherwise indicated and
save in respect of any other creditor under any of the Finance Documents, a person who is not a party to this Deed has no right
under the Contracts (Rights of Third Parties) Act 1999 (or any other applicable law) to enforce any term of this Deed.

		2.	Subordination

		2.1	Ranking

Each of the Parties hereby agrees
that the Senior Debt, whether secured or unsecured, shall rank senior in priority to the Subordinated Debt.

		2.2	Undertakings of the Company

The Company must not without the
prior consent of the Lender:

		(a)	make any payment whatsoever in respect of the Subordinated Debt other than a Permitted Subordinated
Debt Payment;

		(b)	secure, in any manner, all or any part of the Subordinated Debt;

		(c)	defease, in any manner, all or any part of the Subordinated Debt;

		(d)	give any financial support (including the taking of any participation, the giving of any guarantee
or other assurance or the making of any deposit) to any person in connection with all or any part of the Subordinated Debt; o

		(e)	procure any other person to do any of the acts or take any of the actions referred to paragraphs
(a) to (d) above of Clause 2.2.

		2.3	Undertakings of the Subordinated Creditor

		(a)	The Subordinated Creditor will not without the prior written consent of the Lender:

		(i)	allow to exist or receive the benefit of any Security Interest, guarantee, indemnity or other assurance
against loss in respect of all or any of the Subordinated Debt or all or any rights which it may have against the Company in respect
of all or any part of the Subordinated Debt; or

    	63 

    	 

    

		(ii)	take or omit to take any action or step whereby the subordination of all or any of the Subordinated
Debt might be terminated, impaired or adversely affected.

		(b)	The Subordinated Creditor will not without the prior written consent of the Lender receive any
payment save where such payment is a Permitted Subordinated Debt Payment.

		(c)	The Subordinated Creditor will not without the prior written consent of the Lender:

		(i)	demand payment, declare prematurely due and payable or otherwise seek to accelerate payment of
or place on demand all or any part of the Subordinated Debt or enforce the Subordinated Debt by execution or otherwise;

		(ii)	initiate or support or take any steps with a view to, or which may lead to:

		(A)	any insolvency, liquidation, reorganisation, administration or dissolution proceedings;

		(B)	any voluntary arrangement or assignment for the benefit of creditors; or

		(C)	any similar proceedings,

involving the Company or any of
its Subsidiaries, whether by petition, convening a meeting, voting for a resolution or otherwise;

		(iii)	bring or support any legal proceedings against the Company or any of its Subsidiaries; or

		(iv)	otherwise exercise any remedy for the recovery of all or any part of the Subordinated Debt (including,
without limitation, the exercise of any right of set-off, counterclaim or lien).

		(d)	If the Subordinated Creditor receives any payment which is in breach of any Finance Document, it
shall hold such sums on trust for the Lender and pay them immediately to the Lender to be applied against the Senior Debt.

		(e)	The Subordinated Creditor and the Company hereby agree for the benefit of the Lender that, notwithstanding
the terms of the Subordinated Finance Document and any agreement relating to the Subordinated Debt, the Subordinated Debt is made
available on terms such that it is not, save for a Permitted Subordinated Debt Payment or otherwise with the consent of the Lender,
repayable unless and until the Senior Debt Discharge Date shall have occurred.

		2.4	Subordination on insolvency

If there occurs any payment, distribution,
division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of
the assets of any kind or character of the Company or the proceeds thereof, to creditors of the Company, by reason of the liquidation,
dissolution or other winding-up of the Company or its businesses or any bankruptcy, reorganisation, receivership or insolvency
or similar proceeding or any assignment for the benefit of creditors or there is a marshalling of the assets and liabilities of
the Company, or the Company becomes subject to any event mentioned in Clause 18.6 (Insolvency proceedings) of the Agreement or
a voluntary arrangement, then and in any such event:

		(a)	the Subordinated Debt shall continue to be subordinated to the Senior Debt;

		(b)	any payment or distribution of any kind or character and all and any rights in respect thereof,
whether in cash, securities or other property which is payable or deliverable upon or with

    	64 

    	 

    

respect to the Subordinated Debt
or any part thereof by a liquidator, administrator or receiver (or the equivalent thereof) of the Company or its estate (the rights)
made to or paid to, or received by the Subordinated Creditor or to which the Subordinated Creditor is entitled shall be held on
trust by the Subordinated Creditor for the Lender and shall forthwith be paid or, as the case may be, transferred or assigned to
the Lender to be applied against the Senior Debt;

		(c)	if the trust referred to in paragraph (b) above or paragraph (d) of Clause 2.3 above fails or cannot
be given effect to or if the Subordinated Creditor receives and retains the relevant payment or distribution, the Subordinated
Creditor will pay over such rights in the form received to the Lender) to be applied against the Senior Debt;

		(d)	the Subordinated Creditor acknowledges the rights of the Lender to demand, sue and prove for, collect
and receive every payment or distribution referred to in paragraph (b) above of Clause 2.4 and give acquittance therefore and to
file claims and take such other proceedings, in the Lender's own name or otherwise, as the Lender may deem necessary or advisable
for the enforcement of this Deed; and

		(e)	the Subordinated Creditor by way of security for its obligations under this Deed irrevocably appoints
the Lender to be its attorney in order to enable the Lender to enforce any and all claims upon or with respect to the Subordinated
Debt or any part thereof, and to collect and receive any and all payments or distributions referred to in paragraph (b) above of
Clause 2.4 or to do anything which that Subordinated Creditor has authorised the Lender or any other Party to do under this Deed
or is itself required to do under this Deed but has failed to do (and the Lender may delegate that power on such terms as it sees
fit).

		3.	Set-off

		(a)	The Subordinated Creditor shall not set off against the Subordinated Debt any amount payable by
the Subordinated Creditor to the Company.

		(b)	If any part of the Subordinated Debt is discharged in whole or in part by way of set-off, the
Subordinated Creditor will promptly pay to the Lender for application in accordance with the terms of paragraph (b) of Clause 2.4
(Subordination on insolvency) an amount equal to the amount of the Subordinated Debt discharged by such set-off.

		4.	New Money

The Subordinated Creditor hereby
agrees that the Lender may, at its discretion, increase the facility made available to the Company and make further advances to
the Company, and each such advance will be deemed to be made under the terms of the Agreement.

		5.	Protection of Subordination

		(a)	The subordination in this Deed is a continuing subordination and benefits the ultimate balance
of the Senior Debt.

		(b)	Except as provided in this Deed, the subordination is, and the Subordinated Creditor's obligations
under this Deed will, not be affected by any act, omission or thing which, but for this provision, would reduce, release or prejudice
the subordination or any of the Subordinated Creditor's obligations under this Deed.

    	65 

    	 

    

		6.	Miscellaneous

		(a)	This Deed overrides anything in any Subordinated Finance Document to the contrary.

		(b)	Any communication in respect of this Deed must be in writing. Contact details for each Party are
set out opposite their name, below.

		(c)	This Deed is a Finance Document.

		7.	Assignment

		(a)	The Lender shall have the full and unfettered right to assign or otherwise transfer the whole or
any part of the benefit of this Deed to any person to whom all or a corresponding part of its rights, benefits and obligations
under any of the Finance Documents are assigned or transferred in accordance with their provisions.

		(b)	The Subordinated Creditor shall not assign or transfer all or any of its rights, title, benefit
and interest in or to all or any part of the Subordinated Debt unless in full and on or prior to such assignment or transfer the
assignee or transferee accedes to this Deed as Subordinated Creditor pursuant to the Subordinated Creditor Accession Deed.

		8.	Termination

Subject to Clause 4 (New Money),
on the Senior Debt Discharge Date, the terms of this Deed shall terminate.

		9.	Governing Law

This Deed and any non-contractual
obligations arising out of or in connection with it are governed by English law.

		10.	Jurisdiction

The English courts have exclusive
jurisdiction to settle any dispute including a dispute relating to non-contractual obligations arising out of or in connection
with this Deed and the Parties submit to the exclusive jurisdiction of the English courts.

IN WITNESS whereof this Deed
has been duly executed by the Parties on the day and year first above written.

    	66 

    	 

    

Annex
1

 Form
of Subordinated Creditor Accession Deed

To:THE BANK OF TOKYO-MITSUBISHI
UFJ, LTD. as Lender.

To:WESTERN POWER DISTRIBUTION
(EAST MIDLANDS) PLC

From:[Acceding Subordinated Creditor]

THIS DEED is made on [date] by [Acceding
Subordinated Creditor] (the Acceding Subordinated Creditor) in relation to the subordination deed (the Subordination
Deed) dated [l] between, among others, Western Power Distribution (East Midlands)
plc) as Company, The Bank oOf Tokyo-Mitsubishi UFJ, Ltd. as Lender and the Subordinated Creditor (as defined in the Subordination
Deed). Terms defined in the Subordination Deed shall, unless otherwise defined in this Deed, bear the same meanings when used in
this Deed.

In consideration of the Acceding Subordinated
Creditor being accepted as the Subordinated Creditor for the purposes of the Subordination Deed, the Acceding Subordinated Creditor
confirms that, as from [date], it intends to be party to the Subordination Deed as the Subordinated Creditor and undertakes to
perform all the obligations expressed in the Subordination Deed to be assumed by the Subordinated Creditor and agrees that it shall
be bound by all the provisions of the Subordination Deed, as if it had been an original party to the Subordination Deed as the
Subordinated Creditor.

This Deed and any non-contractual obligations
arising out of or in connection with it are governed by English law.

IN WITNESS whereof this Deed
has been duly executed by the Parties on the day and year first above written.

    	67 

    	 

    

SIGNATORIES

Company

 

	EXECUTED as a DEED	)	 
	by WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC	)	
	acting by	)	
	 	 	Director
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	Company contact details:
	Address:	Avonbank, Feeder Road,
	 	Bristol BS2 0TB
	Fax number:	01179 332 108
	Phone number:	01179 332 354
	Email:	jhunt9@westernpower.co.uk
	Attention:	Julie Hunt
	 	 	 	 	 

 

Acceding Subordinated Creditor

 

	EXECUTED as a DEED	)	 
	by [ACCEDING SUBORDINATED CREDITOR]	)	 
	acting by	)	
	 	 	Director
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	Subordinated Creditor contact details:
	Address:	 
	Fax number:	 
	Phone number:	 
	Email:	 
	Attention:	 
	 	 	 	 	 

    	68 

    	 

    

 

Lender

 

	EXECUTED as a DEED	)	 
	by [THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.]	)	 
	acting by	)	
	 	 	[l]
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	 	 
	 	 	 	 

 

    	69 

    	 

    

Annex
2

 Form
of Certificate

To:THE BANK OF TOKYO-MITSUBISHI
UFJ, LTD. as Lender

From:[Western Power Distribution
(East Midlands) plc]

Date:[l]

Western Power Distribution (East Midlands)
plc – £100,000,000 Inflation-Linked Loan Agreement 

dated [l] 2016 and Subordination Deed dated [l]
(the Deed)

		1.	We refer to the Agreement and the Deed. Capitalised terms defined in the Deed have the same meaning
in this Certificate, unless given a different meaning in this Certificate.

		2.	We confirm that the Company will make [insert type of payment] of [insert amount and currency]
under [insert description of relevant Subordinated Finance Document] on [insert date of payment].

		3.	We confirm that, taking into account such payment, the Company will be in compliance with its obligations
under Clause ‎16 (Financial Covenants) of the Agreement on each of the next two Measurement Dates (as such term is defined
in the Agreement).

 

WESTERN POWER DISTRIBUTION (EAST
MIDLANDS) PLC

 

By: _____________________________

Director

 

By: _____________________________

Director

    	70 

    	 

    

SIGNATORIES

Company

 

	EXECUTED as a DEED	)	 
	by WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC	)	 
	acting by	)	
	 	 	Director
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	Company contact details:
	Address:	Avonbank, Feeder Road,
	 	Bristol BS2 0TB
	Fax number:	01179 332 108
	Phone number:	01179 332 354
	Email:	jhunt9@westernpower.co.uk
	Attention:	Julie Hunt
	 	 	 	 	 

 

Subordinated Creditor

 

	EXECUTED as a DEED	)	 
	by [SUBORDINATED CREDITOR]	)	 
	acting by	)	
	 	 	Director
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	Subordinated Creditor contact details:
	Address:	 
	Fax number:	 
	Phone number:	 
	Email:	 
	Attention:	 
	 	 	 	 	 

    	71 

    	 

    

 

Lender

 

	EXECUTED as a DEED	)	 
	by [THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.]	)	 
	acting by	)	
	 	 	Director
	 	 	 
	In the presence of:	 	 
	Witness's Signature:	
	Name:	
	Address:	
	 	 	 	 

 

    	72 

    	 

    

Signatories

THE COMPANY

 

	SIGNED by:	)	 
	for and on behalf of	)	/s/ IAN R. WILLIAMS
	acting by	)	 
	 	)	 
	WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC	 	 

 

	Add	 

 

	Address:	 	Avonbank
	 	 	Feeder Road
	 	 	Bristol BS2 OTB
	Fax:	 	+44 (0)1179 332 108
	 	 	 

 

LENDER

 

	SIGNED by:	)	 
	for and on behalf of	)	/s/ SIMON LELLO
	 	)	 
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.	 	 

 

	Address:	 	Ropemaker Place
	 	 	25 Ropemaker Street
	 	 	London EC2Y 9AN
	 	 	United Kingdom
	Fax:	 	+44 (0)20-7577-1159
	 	 	 

 

 

73Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”),
dated as of May 24, 2016 (the “Effective Date”), is between SIRIUS XM RADIO INC., a Delaware corporation (the
“Company”), and SCOTT A. GREENSTEIN (the “Executive”).

 

WHEREAS, the Company and the Executive previously
entered into an employment agreement dated as of July 22, 2013 (the “Prior Agreement”); and

 

WHEREAS, the Company and the Executive
jointly desire to enter into this Agreement, which shall replace and supersede the Prior Agreement in its entirety, to reflect
the terms and conditions of the Executive’s continued employment with the Company.

 

In consideration of the mutual covenants
and conditions set forth herein, the Company and the Executive agree as follows:

 

1. Employment. Subject to the terms
and conditions of this Agreement, the Company hereby employs the Executive, and the Executive hereby agrees to continue his employment
with the Company.

 

2. Duties and Reporting Relationship.
(a) The Executive shall continue his employment as the President and Chief Content Officer of both the Company and Sirius XM Holdings
Inc. (“Holdings”). In such capacity, the Executive shall be responsible for management of all aspects of the
Company’s and Holdings’ programming functions and all personnel working in such areas shall report to the Executive.
During the Term (as defined below), the Executive shall, on a full-time basis and consistent with the needs of the Company and
Holdings, use his skills and render services to the best of his ability. The Executive shall perform such activities and duties
consistent with his position that the Chief Executive Officer of the Company and Holdings (the “CEOs”) shall
from time to time reasonably specify and direct. During the Term, the Executive shall not perform any consulting services for,
or engage in any other business enterprises with, any third parties without the express written consent of the CEOs or the General
Counsel of the Company, other than passive investments.

 

(b) The Executive shall generally perform
his duties and conduct his business at the principal offices of the Company in New York, New York.

 

(c) Unless otherwise required by law, administrative
regulation or the listing standards of the exchange on which Holdings’ shares are primarily traded, the Executive shall
report solely and directly to the CEOs.

 

3. Term. The term of this Agreement
shall commence on the Effective Date and end on the third (3rd) anniversary of the Effective Date, unless terminated
earlier pursuant to the provisions of Section 6 or extended in accordance with Section 6(f)(v) (as applicable, the “Term”).

    	 

    		2

    

4. Compensation. (a) During the Term,
the Executive shall be paid an annual base salary of $1,500,000, which may be subject to any increase from time to time by recommendation
of the CEOs to, and approval by, the Board of Directors of Holdings (the “Board”) or any committee thereof
(such amount, as increased, the “Base Salary”). All amounts paid to the Executive under this Agreement shall
be in U.S. dollars. The Base Salary shall be paid at least monthly and, at the option of the Company, may be paid more frequently.

 

(b) On May 24, 2016 (the “Grant
Date”), the Company shall cause Holdings to grant to the Executive the following:

 

(i) an option to purchase shares
of Holdings’ common stock, par value $.001 per share (the “Common Stock”), at an exercise price equal
to the closing price of the Common Stock on the Nasdaq Global Select Market on the Grant Date, with the number of shares of Common
Stock subject to such option being that necessary to cause the Black-Scholes-Merton value of such option on the Grant Date to
be equal to $8,500,000, determined by using inputs consistent with those Holdings uses for its financial reporting purposes. Such
option shall be subject to the terms and conditions set forth in the Option Agreement attached to this Agreement as Exhibit A;
and

 

(ii) a number of restricted stock
units equal to $5,750,000, divided by the closing price of the Common Stock on the Nasdaq Global Select Market on the Grant Date.
Such restricted stock units shall be subject to the terms and conditions set forth in the Restricted Stock Unit Agreement attached
to this Agreement as Exhibit B.

 

(c) All compensation paid to the Executive
hereunder shall be subject to any payroll and withholding deductions required by applicable law, including, as and where applicable,
federal, New York state and New York City income tax withholding, federal unemployment tax and social security (FICA).

 

5. Additional Compensation; Expenses
and Benefits. (a) During the Term, the Company shall reimburse the Executive for all reasonable and necessary business expenses
incurred and advanced by him in carrying out his duties under this Agreement; provided that such expenses are incurred
in accordance with the policies and procedures established by the Company. The Executive shall present to the Company an itemized
account of all expenses in such form as may be required by the Company from time to time.

 

(b) During the Term, the Executive shall
be eligible to participate fully in any other benefit plans, programs, policies and fringe benefits which may be made available
to the executive officers of the Company and Holdings generally, including, without limitation, disability, medical, dental and
life insurance and benefits under the Company’s or Holdings’ 401(k) savings plan and deferred compensation plan.

 

(c) During the Term, the Executive shall
be eligible to participate in any bonus plans generally offered to executive officers of the Company and Holdings. The Executive’s
target annual bonus opportunity shall be 150% of the Executive’s Base Salary (the “Bonus”). Bonus(es)
will be subject to the Executive’s individual performance and satisfaction of objectives established by the CEOs or the
Board or the compensation committee of the Board

    	 

    		3

    

(the “Compensation Committee”), and further
are subject to the exercise of negative discretion to reduce Bonus(es) as determined by the CEOs and as reviewed and approved
by the Compensation Committee. Bonus(es), if any, will be paid in the form of cash.

 

6. Termination. The date upon which
the Executive’s employment with the Company under this Agreement is deemed to be terminated in accordance with any of the
provisions of this Section 6 is referred to herein as the “Termination Date.” With respect to any payment or
benefits that would be considered deferred compensation subject to Section 409A (“Section 409A”) of the Internal
Revenue Code of 1986, as amended (the “Code”), and which are payable upon or following a termination of employment,
a termination of employment shall not be deemed to have occurred unless such termination also constitutes a “separation
from service” within the meaning of Section 409A and the regulations thereunder (a “Separation from Service”),
and notwithstanding anything contained herein to the contrary, the date on which a Separation from Service takes place shall be
the Termination Date.

 

(a) The Company has the right and may elect
to terminate this Agreement for Cause at any time. For purposes of this Agreement, “Cause” means the occurrence
or existence of any of the following:

 

(i) (A) a material breach by the
Executive of the terms of this Agreement, (B) a material breach by the Executive of the Executive’s duty not to engage in
any transaction that represents, directly or indirectly, self-dealing with the Company, Holdings or any of their affiliates (which,
for purposes hereof, shall mean any individual, corporation, partnership, association, limited liability company, trust, estate,
or other entity or organization directly or indirectly controlling, controlled by, or under direct or indirect common control
with the Company or Holdings) which has not been approved by a majority of the disinterested directors of the Board, or (C) the
Executive’s violation of the Company’s or Holdings’ Code of Ethics which is demonstrably and materially injurious
to the Company or Holdings, if any such material breach or violation described in clauses (A), (B) or (C), to the extent curable,
remains uncured after fifteen (15) days have elapsed following the date on which the Company gives the Executive written notice
of such material breach or violation;

 

(ii) the Executive’s act
of dishonesty, misappropriation, embezzlement, intentional fraud, or similar intentional misconduct by the Executive involving
the Company, Holdings or any of their affiliates;

 

(iii) the Executive’s conviction
or the plea of nolo contendere or the equivalent in respect of a felony;

 

(iv) any damage of a material nature
to any property of the Company, Holdings or any of their affiliates caused by the Executive’s willful misconduct or gross
negligence;

 

(v) the repeated nonprescription
use of any controlled substance or the repeated use of alcohol or any other non-controlled substance that, in the reasonable good

    	 

    		4

    

faith opinion of the Board, renders the Executive
unfit to serve as an officer of the Company, Holdings or their affiliates;

 

(vi) the Executive’s failure
to comply with the CEOs’ reasonable written instructions on a material matter within five (5) days, unless the Executive
has received conflicting instructions from the CEOs; or

 

(vii) conduct by the Executive
that, in the reasonable good faith written determination of the Board, demonstrates unfitness to serve as an officer of the Company,
Holdings or their affiliates, including but not limited to a finding by the Board or any judicial or regulatory authority that
the Executive committed acts of unlawful harassment or violated any other state, federal or local law or ordinance prohibiting
discrimination in employment.

 

(b) Termination of the Executive for Cause
pursuant to Section 6(a) shall be communicated by a Notice of Termination for Cause. For purposes of this Agreement, a “Notice
of Termination for Cause” shall mean delivery to the Executive of a copy of a resolution or resolutions duly adopted
by the affirmative vote of not less than a majority of the directors (other than the Executive, if the Executive is then serving
on the Board) present (in person or by teleconference) and voting at a meeting of the Board called and held for that purpose after
fifteen (15) days’ notice to the Executive (which notice the Company shall use reasonable efforts to confirm that the Executive
has actually received and which notice for purposes of Section 6(a) may be delivered, in addition to the requirements set forth
in Section 17, through the use of electronic mail) and a reasonable opportunity for the Executive, together with the Executive’s
counsel, to be heard before the Board prior to such vote, finding that in the good faith opinion of the Board, the Executive committed
the conduct set forth in any of clauses (i) through (vii) of Section 6(a) and specifying the particulars thereof in reasonable
detail. For purposes of Section 6(a), this Agreement shall terminate on the date specified by the Board in the Notice of Termination
for Cause.

 

(c) (i) This Agreement and the Executive’s
employment shall terminate upon the death of the Executive.

 

(ii) If the Executive is unable to perform
the essential duties and functions of his position because of a disability, even with a reasonable accommodation, for one hundred
eighty (180) days within any three hundred sixty-five (365)-day period (“Disability”), the Company shall have
the right and may elect to terminate the services of the Executive by a Notice of Disability Termination. The Executive shall
not be terminated following a Disability except pursuant to this Section 6(c)(ii). For purposes of this Agreement, a “Notice
of Disability Termination” shall mean a written notice that sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under this Section 6(c)(ii). For purposes of this
Agreement, no such purported termination shall be effective without such Notice of Disability Termination. This Agreement and
the Executive’s employment shall terminate on the day such Notice of Disability Termination is received by the Executive.

    	 

    		5

    

(d) The Executive shall have the absolute
right to terminate his employment at any time with or without Good Reason (as defined below). Should the Executive wish to resign
from his position with the Company and Holdings during the Term for other than Good Reason, the Executive shall give at least
fourteen (14) days’ prior written notice to the Company. This Agreement shall terminate on the effective date of the resignation
set forth in the notice of resignation; provided that the Company may, at its sole discretion, instruct that the Executive
perform no job responsibilities and cease his active employment immediately upon receipt of such notice from the Executive. Any
resignation by the Executive of his position with the Company shall be deemed a resignation of his position with Holdings (and
vice versa).

 

(e) The Company shall have the absolute
right to terminate the Executive’s employment without Cause at any time. This Agreement shall terminate one (1) day following
receipt of such notice by the Executive; provided that the Company may, at its sole discretion, instruct that the Executive
cease active employment and perform no more job duties immediately upon provision of such notice to the Executive.

 

(f) Should the Executive wish to resign
from his position with the Company and Holdings for Good Reason during the Term, the Executive shall give at least seven (7) days’
prior written notice to the Company. This Agreement shall terminate on the date specified in such notice; provided that
the Company may, at its sole discretion, instruct that the Executive cease active employment and perform no more job duties immediately
upon receipt of such notice from the Executive. Any resignation by the Executive of his position with the Company shall be deemed
a resignation of his position with Holdings (and vice versa).

 

For purposes of this Agreement, “Good
Reason” shall mean the continuance of any of the following events (without the Executive’s prior written consent)
for a period of thirty (30) days after delivery to the Company by the Executive of a written notice within ninety (90) days of
the Executive becoming aware of the initial occurrence of such event, during which thirty (30) day period of continuation the
Company and Holdings shall be afforded an opportunity to cure such event (and provided that the Executive’s effective date
of resignation for Good Reason is within 135 days of the Good Reason event):

 

(i) the assignment to the Executive
by the Company or Holdings of duties not reasonably consistent with the Executive’s positions, duties, responsibilities,
titles or offices at the commencement of the Term, any material reduction in the Executive’s duties or responsibilities
as described in Section 2, or any removal of the Executive from, or any failure to re-elect the Executive to, any of such positions,
or the Executive not being the most senior executive, other than the CEOs, who is responsible for all programming activities and
related programming personnel, in each case for which the Executive is responsible as of the Effective Date (except in connection
with the termination of the Executive’s employment for Cause, Disability or as a result of the Executive’s death or
by the Executive other than for Good Reason); or

 

(ii) the Executive ceasing to report
directly to the CEOs (unless otherwise required by Section 2(c)) or if the Chief Executive Officer of the Company is not the same
individual as the Chief Executive Officer of Holdings; or

    	 

    		6

    

(iii) any requirement that the
Executive report for work to a location more than twenty-five (25) miles from the Company’s current headquarters for more
than thirty (30) days in any calendar year, excluding any requirement that results from the damage or destruction of the Company’s
current headquarters as a result of natural disasters, terrorism, acts of war or acts of God; or

 

(iv) any reduction in the Base
Salary; or

 

(v) the Company’s failure
to make a bona fide offer in writing to renew this Agreement, for at least an additional one (1)-year term, on terms and
conditions at least as favorable as those set forth in this Agreement (including the Base Salary set forth in Section 4(a) and
the target annual bonus opportunity set forth in Section 5(c), but excluding any equity-based compensation set forth in Section
4(b)), at least ninety (90) days prior to (x) the third anniversary of the Effective Date and (y) each subsequent anniversary
of the Effective Date on which this Agreement is otherwise scheduled to expire; provided that (for purposes of this clause
(y) only) this Agreement has been renewed on the previous anniversary of the Effective Date on which this Agreement was otherwise
scheduled to expire; or

 

(vi) any material breach by the
Company of this Agreement.

 

(g) (i) If the employment of the Executive
is terminated by the Company for Cause, by the Executive other than for Good Reason or due to death or Disability, the Executive
(or his estate in the case of death) shall, in lieu of any future payments or benefits under this Agreement, be entitled to (A)
any earned but unpaid Base Salary and any business expenses incurred but not reimbursed, in each case, prior to the Termination
Date and (B) any other vested benefits under any other benefit or incentive plans or programs in accordance with the terms of
such plans and programs (collectively, the “Accrued Payments and Benefits”).

 

(ii) If, during the Term, the employment
of the Executive is terminated by the Company without Cause or if the Executive terminates his employment for Good Reason, then,
subject to Section 6(h), the Executive shall have an absolute and unconditional right to receive, and the Company shall pay to
the Executive without setoff, counterclaim or other withholding, except as set forth in Section 4(c), the following:

 

(A) the Accrued Payments and Benefits;

 

(B) a lump sum amount equal to
one and one-half (1 1⁄2) times the sum of (x) the Executive’s annualized Base Salary then in effect and (y) an amount
in cash equal to the greater of (I) $2,250,000 or (II) the Bonus last paid (or due and payable) to the Executive, with such lump
sum amount to be paid on the sixtieth (60th) day following the Termination Date;

 

(C) the continuation for eighteen
(18) months, at the Company’s expense (by direct payment, not reimbursement to the Executive), of substantially similar
medical and dental benefits in a manner that will not be taxable to the Executive; and

    	 

    		7

    

(D) life insurance benefits on
substantially the same terms as provided by the Company for active employees for eighteen (18) months following the Termination
Date.

 

(h) The Company’s obligations under
Section 6(g)(ii) shall be conditioned upon the Executive executing, delivering, and not revoking during the applicable revocation
period a waiver and release of claims against the Company and Holdings, substantially in the form attached as Exhibit C (the “Release”),
within fifty-two (52) days following the Termination Date.

 

(i) Notwithstanding anything contained in
this Agreement, under no circumstances shall the Company or Holdings be considered to have breached this Agreement or to have
terminated the Executive’s employment with or without Cause, or shall a Good Reason event be deemed to have occurred, solely
as a result of Holdings merging with and/or into the Company, Liberty Media Corporation, any Qualified Distribution Transferee
(as defined in the Investment Agreement, dated as of February 17, 2009, between Holdings and Liberty Radio LLC, as amended) or
any of their respective wholly-owned subsidiaries, or any entity wholly-owned jointly by any of the foregoing.

 

(j) Notwithstanding any provisions of this
Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Section 409A and determined
pursuant to policies adopted by the Company and Holdings) at the time of his Separation from Service and if any portion of the
payments or benefits to be received by the Executive upon Separation from Service would be considered deferred compensation under
Section 409A (“Nonqualified Deferred Compensation”), amounts that would otherwise be payable pursuant to this
Agreement during the six (6)-month period immediately following the Executive’s Separation from Service that constitute
Nonqualified Deferred Compensation and benefits that would otherwise be provided pursuant to this Agreement during the six (6)-month
period immediately following the Executive’s Separation from Service that constitute Nonqualified Deferred Compensation
will instead be paid or made available on the earlier of (x) the first (1st) business day of the seventh (7th)
month following the date of the Executive’s Separation from Service and (y) the Executive’s death.

 

(k) Following the termination of the Executive’s
employment for any reason, if and to the extent requested by the Board, the Executive agrees to resign, as may then be applicable,
from all fiduciary positions (including, without limitation, as trustee) and all other offices and positions the Executive holds
with the Company, Holdings or any of their affiliates; provided that if the Executive refuses to tender the Executive’s
resignation after the Board has made such request, then the Board will be empowered to remove the Executive from such offices
and positions.

 

7. Nondisclosure of Confidential Information.
(a) The Executive acknowledges that in the course of his employment he will occupy a position of trust and confidence. The Executive
shall not, except in connection with the proper performance of his functions or as required by applicable law, disclose to others
or use, directly or indirectly, any Confidential Information.

    	 

    		8

    

(b) “Confidential Information”
shall mean information about the Company’s and Holdings’ (and their affiliates’) business and operations that
is not disclosed by the Company or Holdings (or their affiliates) for financial reporting purposes and that was learned by the
Executive in the course of his employment by the Company or Holdings, including, without limitation, any business plans, product
plans, strategy, budget information, proprietary knowledge, patents, trade secrets, data, formulae, sketches, notebooks, blueprints,
information and client and customer lists and all papers and records (including but not limited to computer records) of the documents
containing such Confidential Information, other than information that is publicly disclosed by the Company or Holdings (or their
affiliates) in writing. The Executive acknowledges that such Confidential Information is specialized, unique in nature and of
great value to the Company and Holdings, and that such information gives the Company and Holdings a competitive advantage. The
Executive agrees to deliver or return to the Company, at the Company’s request at any time or upon termination or expiration
of his employment or as soon as possible thereafter, all documents, computer tapes and disks, records, lists, data, drawings,
prints, notes and written information (and all copies thereof) furnished by or on behalf of the Company or Holdings or prepared
by the Executive in the course of his employment by the Company and Holdings; provided that the Executive will be able
to keep his cell phone, blackberry, personal computer, personal rolodex and the like so long as any Confidential Information is
removed from such items.

 

(c) The provisions of this Section 7 shall
survive indefinitely.

 

8. Covenant Not to Compete. During
the Executive’s employment with the Company and during the Restricted Period (as defined below), the Executive shall not,
directly or indirectly, enter into the employment of, render services to, or acquire any interest whatsoever in (whether for his
own account as an individual proprietor, or as a partner, associate, stockholder, officer, director, consultant, trustee or otherwise),
or otherwise assist, any person or entity engaged in any operations in North America involving the creation, transmission, syndication,
scheduling or streaming of radio entertainment programming (which, for purposes of this Agreement, shall be deemed to include,
without limitation, all sports, talk, news, and entertainment radio programming), the production of radio entertainment programming,
the syndication of radio entertainment programming, the promotion of radio entertainment programming, the marketing of radio entertainment
programming, or the business of telematics, in each case, in competition with the Company (each, a “Competitive Activity”);
provided that nothing in this Agreement shall prevent the purchase or ownership by the Executive by way of investment of
less than five (5) percent of the shares or equity interest of any corporation or other entity. Without limiting the generality
of the foregoing, the Executive agrees that during the Restricted Period, the Executive shall not call on or otherwise solicit
business or assist others to solicit business from any of the customers of the Company as to any product or service described
above that competes with any product or service provided or marketed by the Company on the date of the Executive’s termination
of employment with the Company during the Term (as such Term may be extended in accordance with Section 6(f)(v) of this Agreement)
(the “Milestone Date”). The Executive agrees that during the Restricted Period he will not solicit or assist
others to solicit the employment of or hire any employee of Holdings, the Company, any of their respective subsidiaries or Liberty
Media Corporation without the prior written consent of the Company. For purposes of this Agreement, the “Restricted Period”
shall mean the period of one year following the Milestone Date. For purposes of this Agreement, the term “radio” shall
mean

    	 

    		9

    

terrestrial radio, satellite radio, HD radio, internet radio
and other audio delivered terrestrially, by satellite, HD or the internet (which audio is not coupled with moving visual elements,
such as television, movies, or other moving visual images delivered via the internet or otherwise). Notwithstanding anything to
the contrary in this Section 8, it shall not be a violation of this Section 8 for the Executive to join a division or business
line of a commercial enterprise with multiple divisions or business lines if such division or business line is not engaged in
a Competitive Activity; provided that the Executive performs services solely for such non-competitive division or business
line.

 

9. Change of Control Provisions.
(a) Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received
by the Executive (including any payment or benefit received in connection with a change of control of the Company or Holdings
or the termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program,
arrangement or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject
(in whole or part), to any excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the “Excise
Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the
Code in such other plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary
so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided that
the Total Payments will only be reduced if (i) the net amount of such Total Payments, as so reduced (and after subtracting the
net amount of federal, state, municipal and local income and employment taxes on such reduced Total Payments and after taking
into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater
than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal,
state, municipal and local income and employment taxes on such Total Payments and the amount of Excise Tax to which the Executive
would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions
and personal exemptions attributable to such unreduced Total Payments).

 

(b) In the case of a reduction in the Total
Payments, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at
full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that
are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation
Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation
Section 1.280G-1, Q&A 24), will next be reduced; (iii) payments that are payable in cash that are valued at less than full
value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced;
(iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1,
Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A
24), will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced
pro-rata. Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata
reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata
reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation.

    	 

    		10

    

(c) For purposes of determining whether
and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt
or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment”
within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken
into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and
selected by the accounting firm which was, immediately prior to the change of control, the Company’s independent auditor
(the “Auditor”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such
Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services
actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code (including, without limitation, any portion of such
Total Payments equal to the value of the covenant included in Section 8, as determined by the Auditor or such other accounting,
consulting or valuation firm selected by the Company prior to the change of control and reasonably acceptable to the Executive),
in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable
compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will
be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

(d) At the time that payments are made under
this Agreement, the Company will provide the Executive with a written statement setting forth the manner in which such payments
were calculated and the basis for such calculations, including any opinions or other advice the Company or Holdings received from
Tax Counsel, the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing will be attached
to the statement). If the Executive objects to the Company’s calculations, the Company will pay to the Executive such portion
of the Total Payments (up to 100% thereof) as the Executive determines is necessary to result in the proper application of this
Section 9. All determinations required by this Section 9 (or requested by either the Executive or the Company in connection with
this Section 9) will be at the expense of the Company. The fact that the Executive’s right to payments or benefits may be
reduced by reason of the limitations contained in this Section 9 will not of itself limit or otherwise affect any other rights
of the Executive under this Agreement.

 

(e) If the Executive receives reduced payments
and benefits by reason of this Section 9 and it is established pursuant to a determination of a court which is not subject to
review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that the Executive
could have received a greater amount without resulting in any Excise Tax, then the Company shall thereafter pay the Executive
the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable.

 

10. Remedies. The Executive and the
Company agree that damages for breach of any of the covenants under Sections 7 and 8 will be difficult to determine and inadequate
to remedy the harm which may be caused thereby, and therefore consent that these covenants may be enforced by temporary or permanent
injunction without the necessity of bond.

    	 

    		11

    

The Executive believes, as of the date of this Agreement, that
the provisions of this Agreement are reasonable and that the Executive is capable of gainful employment without breaching this
Agreement. However, should any court or arbitrator decline to enforce any provision of Section 7 or 8, this Agreement shall, to
the extent applicable in the circumstances before such court or arbitrator, be deemed to be modified to restrict the Executive’s
competition with the Company to the maximum extent of time, scope and geography which the court or arbitrator shall find enforceable,
and such provisions shall be so enforced.

 

11. Indemnification. The Company
shall indemnify the Executive, both during and after the Term, to the full extent provided in the Company’s and Holdings’
respective Certificates of Incorporation and Bylaws and the law of the State of Delaware in connection with his activities as
an officer of the Company and Holdings.

 

12. Entire Agreement. The provisions
contained herein constitute the entire agreement between the parties with respect to the subject matter hereof and supersede any
and all prior agreements, understandings and communications between the parties, oral or written, with respect to such subject
matter, including the Prior Agreement, but excluding any equity award agreements between the Executive and the Company or Holdings.
For the avoidance of doubt, nothing herein is intended to supersede or waive obligations of the Executive to comply with any assignment
of invention provisions applicable to the Executive under the Code of Ethics or any assignment of invention agreement(s) between
the Company and the Executive.

 

13. Modification. Any waiver, alteration,
amendment or modification of any provisions of this Agreement shall not be valid unless in writing and signed by both the Executive
and the Company.

 

14. Severability. If any provision
of this Agreement shall be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall
not affect the remaining provisions hereof, which shall remain in full force and effect.

 

15. Assignment. The Executive may
not assign any of his rights or delegate any of his duties hereunder without the prior written consent of the Company. The Company
may not assign any of its rights or delegate any of its obligations hereunder without the prior written consent of the Executive,
except that any successor to the Company by merger or purchase of all or substantially all of the Company’s or Holdings’
assets shall assume this Agreement.

 

16. Binding Effect. This Agreement
shall be binding upon and inure to the benefit of the successors in interest of the Executive and the Company.

 

17. Notices. All notices and other
communications required or permitted hereunder shall be made in writing and shall be deemed effective when delivered personally
or transmitted by facsimile transmission, one (1) business day after deposit with a nationally recognized overnight courier (with
next day delivery specified) and five (5) days after mailing by registered or certified mail:

    	 

    		12

    
if to the Company:

 

Sirius XM Radio Inc.

1290 Avenue of the Americas

11th Floor

New York, New York 10020

Attention: General Counsel

Telecopier: (212) 584-5353

 

if to the Executive:

 

Address on file at the offices

of the Company

 

or to such other person or address as either party shall furnish
in writing to the other party from time to time.

 

18. Governing Law. This Agreement
shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be
performed entirely within the State of New York.

 

19. Non-Mitigation. The Executive
shall not be required to mitigate damages or seek other employment in order to receive compensation or benefits under Section
6; nor shall the amount of any benefit or payment provided for under Section 6 be reduced by any compensation earned by the Executive
as the result of employment by another employer.

 

20. Arbitration. (a) The Executive
and the Company agree that if a dispute arises concerning or relating to the Executive’s employment with the Company or
Holdings, or the termination of the Executive’s employment, such dispute shall be submitted to binding arbitration under
the rules of the American Arbitration Association regarding resolution of employment disputes in effect at the time such dispute
arises. The arbitration shall take place in New York, New York, before a single experienced arbitrator licensed to practice law
in New York and selected in accordance with the American Arbitration Association rules and procedures. Except as provided below,
the Executive and the Company agree that this arbitration procedure will be the exclusive means of redress for any disputes relating
to or arising from the Executive’s employment with the Company or Holdings or his termination, including disputes over rights
provided by federal, state, or local statutes, regulations, ordinances, and common law, including all laws that prohibit discrimination
based on any protected classification. The parties expressly waive the right to a jury trial, and agree that the arbitrator’s
award shall be final and binding on both parties, and shall not be appealable. The arbitrator shall have discretion to award
monetary and other damages, and any other relief that the arbitrator deems appropriate and is allowed by law. The arbitrator shall
have the discretion to award the prevailing party reasonable costs and attorneys’ fees incurred in bringing or defending
an action, and shall award such costs and fees to the Executive in the event the Executive prevails on the merits of any action
brought hereunder.

 

(b) The Company shall pay the cost of any
arbitration proceedings under this Agreement if the Executive prevails in such arbitration on at least one substantive issue.

    	 

    		13

    

(c) The Company and the Executive agree
that the sole dispute that is excepted from Section 20(a) is an action seeking injunctive relief from a court of competent jurisdiction
regarding enforcement and application of Sections 7, 8 or 10, which action may be brought in addition to, or in place of, an arbitration
proceeding in accordance with Section 20(a).

 

21. Compliance with Section 409A.
(a) To the extent applicable, it is intended that the compensation arrangements under this Agreement be in full compliance with
Section 409A (it being understood that certain compensation arrangements under this Agreement are intended not to be subject to
Section 409A). This Agreement shall be construed, to the maximum extent permitted, in a manner to give effect to such intention.
Notwithstanding anything in this Agreement to the contrary, distributions upon termination of the Executive’s employment
that constitute Nonqualified Deferred Compensation may only be made upon a Separation from Service. Neither the Company nor any
of its affiliates shall have any obligation to indemnify or otherwise hold the Executive harmless from any or all such taxes,
interest or penalties, or liability for any damages related thereto. The Executive acknowledges that he has been advised to obtain
independent legal, tax or other counsel in connection with Section 409A.

 

(b) With respect to any amount of expenses
eligible for reimbursement under this Agreement, such expenses will be reimbursed by the Company within thirty (30) days following
the date on which the Company receives the applicable invoice from the Executive in accordance with the Company’s expense
reimbursement policies, but in no event later than the last day of the Executive’s taxable year following the taxable year
in which the Executive incurs the related expenses. In no event will the reimbursements or in-kind benefits to be provided by
the Company in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year,
nor will the Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.

 

(c) Each payment under this Agreement shall
be regarded as a “separate payment” and not one of a series of payments for purposes of Section 409A.

 

22. Counterparts. This Agreement
may be executed in counterparts, all of which shall be considered one and the same agreement, and shall become effective when
one or more counterparts have been signed by each of the parties and delivered to the other party.

 

23. Executive’s Representation.
The Executive hereby represents and warrants to the Company that he is not now under any contractual or other obligation that
is inconsistent with or in conflict with this Agreement or that would prevent, limit, or impair the Executive’s performance
of his obligations under this Agreement.

 

24. Survivorship. Upon the expiration
or other termination of this Agreement or the Executive’s employment with the Company, the respective rights and obligations
of the parties hereto shall survive to the extent necessary to carry out the intentions of the parties under this Agreement.

 

25. Clawback Provisions. Notwithstanding
any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the
Executive pursuant to this Agreement or any other agreement or arrangement with the

    	 

    		14

    

Company or any of its affiliates, which is subject to recovery
under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as
may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted
by the Company, Holdings or any of their affiliates pursuant to, but solely to the extent required by, any such law, government
regulation or stock exchange listing requirement).

 

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

 

	 	SIRIUS XM RADIO INC.	 
	 	 	 
	 	By: 	/s/ Dara F. Altman	 
	 	 	Dara F. Altman	 
	 	 	Executive Vice President and 	 
	 	 	Chief Administrative Officer	 
	 	 	 	 
	 	/s/ Scott A. Greenstein	 
	 	SCOTT A. GREENSTEIN	 

    	 

    		15

    

Exhibit A

 

THIS OPTION MAY NOT BE TRANSFERRED EXCEPT
BY WILL OR UNDER THE LAWS

OF DESCENT AND DISTRIBUTION.

 

SIRIUS XM HOLDINGS INC. 2015 LONG-TERM
STOCK INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

This STOCK OPTION AGREEMENT (this “Agreement”),
dated May 24, 2016,1 is between SIRIUS XM HOLDINGS INC., a Delaware corporation (the “Company”),
and SCOTT A. GREENSTEIN (the “Executive”).

 

1. Grant of Option; Vesting. (a)
Subject to the terms and conditions of this Agreement, the Sirius XM Holdings Inc. 2015 Long-Term Stock Incentive Plan (the “Plan”),
and the Employment Agreement, dated as of May 24, 2016, between Sirius XM Radio Inc. (“Sirius XM”) and the
Executive (the “Employment Agreement”), the Company hereby grants to the Executive the right and option (this
“Option”) to purchase ______________________ (_________) shares2 of common stock, par value $0.001
per share, of the Company (the “Shares”), at a price per Share of $____ (the “Exercise Price”).3
This Option is not intended to qualify as an Incentive Stock Option for purposes of Section 422 of the Internal Revenue
Code of 1986, as amended. In the case of any stock split, stock dividend or like change in the Shares occurring after the date
hereof, the number of Shares and the Exercise Price shall be adjusted as set forth in Section 4(b) of the Plan.

 

(b) Subject to the terms of this Agreement,
this Option shall vest and become exercisable in three (3) equal installments on each of May 24, 2017, May 24, 2018, and May 24,
20194, subject to the Executive’s continued employment with Sirius XM on each of these dates other than as specifically
stated herein.

 

(c) If the Executive’s employment
with Sirius XM terminates for any reason, this Option, to the extent not then vested, shall immediately terminate without consideration;
provided that if the Executive’s employment with Sirius XM is terminated (x) due to death or “Disability”
(as defined in the Employment Agreement), (y) by Sirius XM without “Cause” (as defined in the Employment Agreement),
or (z) by the Executive for “Good Reason” (as defined in the Employment Agreement), the unvested portion of
this Option, to the extent not previously cancelled or forfeited, shall immediately become vested and exercisable. The foregoing
condition that the Executive be an employee of Sirius XM shall, in the event of the termination of the Executive’s employment
with Sirius XM due to death or Disability, by Sirius XM without Cause or by the Executive for Good Reason be waived by the Company
provided that the

 

 

	1 	The “Grant Date,” as defined in the Employment Agreement.
	2	Number to be computed in accordance with Section 4(b)(i) of the Employment Agreement.
	3	Closing price on the Grant Date.
	4	First, second and third anniversaries of the “Effective Date,” as defined in the
    Employment Agreement.

    	 

    		16

    

Executive (or his estate in the case of death) executes a release
in accordance with Section 6(h) of the Employment Agreement.

 

2. Term. This Option shall terminate
on May 24, 2026 (the “Option Expiration Date”);5 provided that if:

 

(a) the Executive’s employment
with Sirius XM is terminated due to the Executive’s death or Disability, by Sirius XM without Cause, or by the Executive
for Good Reason, the Executive (or his beneficiary, in the case of death) may exercise this Option in full until the first (1st)
anniversary of such termination (at which time this Option shall be cancelled), but not later than the Option Expiration Date;

 

(b) the Executive’s employment
with Sirius XM is terminated for Cause, this Option shall be cancelled upon the date of such termination; and

 

(c) the Executive voluntarily terminates
his employment with Sirius XM without Good Reason, the Executive may exercise any vested portion of this Option until ninety (90)
days following the date of such termination (at which time this Option shall be cancelled), but not later than the Option Expiration
Date.

 

3. Exercise. Subject to Sections
1 and 2 of this Agreement and the terms of the Plan, this Option may be exercised, in whole or in part, in accordance with Section
6 of the Plan.

 

4. Change of Control. In the event
of a Change of Control, this Option shall be governed by the terms of the Plan; provided that any transactions between
the Company, Sirius XM and/or any of their respective wholly-owned subsidiaries, on the one hand, and Liberty Media Corporation,
any Qualified Distribution Transferee (as defined in the Investment Agreement, dated as of February 17, 2009, between the Company
and Liberty Radio LLC, as amended) and/or any of their respective wholly-owned subsidiaries, on the other hand, shall not constitute
a Change of Control under the Plan.

 

5. Non-transferable. This Option
may not be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) other than
by will or by the applicable laws of descent and distribution, and shall not be subject to execution, attachment or similar process.
Any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this Option or of any right or privilege conferred
hereby shall be null and void.

 

6. Withholding. Prior to delivery
of the Shares purchased upon exercise of this Option, the Company shall determine the amount of any United States federal, state
and local income taxes, if any, which are required to be withheld under applicable law and shall, as a condition of exercise of
this Option and delivery of certificates representing the Shares purchased upon exercise of this Option, collect from the Executive
the amount of any such tax to the extent not previously withheld. The Executive may satisfy his withholding obligations in the
manner contemplated by Section 16(e) of the Plan.

 

 

	5 	Tenth anniversary of the Grant Date.

    	 

    		17

    

7. Rights of the Executive. Neither
this Option, the execution of this Agreement nor the exercise of any portion of this Option shall confer upon the Executive any
right to, or guarantee of, continued employment by Sirius XM, or in any way limit the right of Sirius XM to terminate employment
of the Executive at any time, subject to the terms of the Employment Agreement or any other written employment or similar agreement
between or among the Company, Sirius XM and the Executive.

 

8. Professional Advice. The acceptance
and exercise of this Option may have consequences under federal and state tax and securities laws that may vary depending upon
the individual circumstances of the Executive. Accordingly, the Executive acknowledges that the Executive has been advised to
consult his personal legal and tax advisors in connection with this Agreement and this Option.

 

9. Agreement Subject to the Plan.
This Option and this Agreement are subject to the terms and conditions set forth in the Plan, which terms and conditions are incorporated
herein by reference. Capitalized terms used herein but not defined shall have the meaning set forth in the Plan. The Executive
acknowledges that a copy of the Plan is posted on Sirius XM’s intranet site and the Executive agrees to review it and comply
with its terms. This Agreement, the Employment Agreement and the Plan constitute the entire understanding between or among the
Company, Sirius XM and the Executive with respect to this Option.

 

10. Governing Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of New York, and shall bind and inure to the benefit
of the heirs, executors, personal representatives, successors and assigns of the parties hereto. Any disputes arising from or
relating to this Agreement shall be subject to arbitration pursuant to Section 20 of the Employment Agreement.

 

11. Notices. All notices and other
communications hereunder shall be in writing and shall be deemed given when delivered personally or when telecopied (with confirmation
of transmission received by the sender), three (3) business days after being sent by certified mail, postage prepaid, return receipt
requested or one (1) business day after being delivered to a nationally recognized overnight courier with next day delivery specified
to the parties at the following addresses (or at such other address for a party as shall be specified by like notice): Company:
Sirius XM Holdings Inc., 1290 Avenue of the Americas, 11th Floor, New York, New York 10020, Attention: General Counsel; and Executive:
Address on file at the office of the Company. Notices sent by email or other electronic means not specifically authorized by this
Agreement shall not be effective for any purpose of this Agreement.

 

12. Binding Effect. This Agreement
has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

13. Amendment. The rights of the
Executive hereunder may not be impaired by any amendment, alteration, suspension, discontinuance or termination of the Plan or
this Agreement without the Executive’s consent.

    	 

    		18

    

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

 

	 	SIRIUS XM HOLDINGS INC.	 
	 	 	 	 
	 	By: 	Exhibit A	 
	 	 	Dara F. Altman	 
	 	 	Executive Vice President and	 
	 	 	Chief Administrative Officer	 
	 	 	 	 
	 	 	Exhibit A	 
	 	 	SCOTT A. GREENSTEIN	 

    	 

    		19

    

Exhibit B

 

THE RSUs HAVE NOT BEEN REGISTERED UNDER
STATE OR FEDERAL SECURITIES

LAWS. THE RSUs MAY NOT BE TRANSFERRED EXCEPT

BY WILL OR UNDER THE LAWS OF DESCENT AND DISTRIBUTION.

 

SIRIUS XM HOLDINGS INC.

2015 LONG-TERM STOCK INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AGREEMENT

 

This RESTRICTED STOCK UNIT AGREEMENT (this
“Agreement”), dated May 24, 2016,6 is between SIRIUS XM HOLDINGS INC., a Delaware corporation (the
“Company”), and SCOTT A. GREENSTEIN (the “Executive”).

 

1. Grant of RSUs. Subject to the
terms and conditions of this Agreement, the Sirius XM Holdings Inc. 2015 Long-Term Stock Incentive Plan (the “Plan”),
and the Employment Agreement, dated as of May 24, 2016, between Sirius XM Radio Inc. (“Sirius XM”) and the
Executive (the “Employment Agreement”), the Company hereby grants ________________7 restricted share
units (“RSUs”) to the Executive. Each RSU represents the unfunded, unsecured right of the Executive to receive
one share of common stock, par value $.001 per share, of the Company (each, a “Share”) on the date specified
in this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.

 

2. Dividends. If on any date while
RSUs are outstanding the Company shall pay any dividend on the Shares (other than a dividend payable in Shares), the number of
RSUs granted to the Executive shall, as of the record date for such dividend payment, be increased by a number of RSUs equal to:
(a) the product of (x) the number of RSUs held by the Executive as of such record date, multiplied by (y) the per Share amount
of any cash dividend (or, in the case of any dividend payable, in whole or in part, other than in cash, the per Share value of
such dividend, as determined in good faith by the Company), divided by (b) the average closing price of a Share on the Nasdaq
Global Select Market on the twenty (20) trading days preceding, but not including, such record date. In the case of any dividend
declared on Shares that is payable in the form of Shares, the number of RSUs granted to the Executive shall be increased by a
number equal to the product of (1) the aggregate number of RSUs held by the Executive on the record date for such dividend, multiplied
by (2) the number of Shares (including any fraction thereof) payable as a dividend on a Share. In the case of any other change
in the Shares occurring after the date hereof, the number of RSUs shall be adjusted as set forth in Section 4(b) of the Plan.

 

3. No Rights of a Stockholder. The
Executive shall not have any rights as a stockholder of the Company until the Shares have been registered in the Company’s
register of stockholders.

 

 

	6 	The “Grant Date,” as defined in the Employment Agreement.
	7	Number to be determined in accordance with Section 4(b)(ii) of the Employment Agreement.

    	 

    		20

    

4. Issuance of Shares subject to RSUs.
(a) Subject to earlier issuance pursuant to the terms of this Agreement or the Plan, on each of May 24, 2017, May 24, 2018, and
May 24, 2019,8 the Company shall issue, or cause there to be transferred, to the Executive (or his beneficiary, in
the case of death) an amount of Shares representing one-third (1/3) of the number of the RSUs granted to the Executive under this
Agreement (as adjusted pursuant to Section 2 above, if applicable), if the Executive continues to be employed by Sirius XM on
each of these dates other than as specifically stated herein.

 

(b) If the Executive’s employment
with Sirius XM terminates for any reason, the RSUs shall immediately terminate without consideration; provided that if
the Executive’s employment with Sirius XM terminates due to death or “Disability” (as defined in the
Employment Agreement), by Sirius XM without “Cause” (as defined in the Employment Agreement), or by the Executive
for “Good Reason” (as defined in the Employment Agreement), the RSUs, to the extent not previously settled,
cancelled or forfeited, shall immediately become vested and the Company shall issue, or cause there to be transferred, to the
Executive (or to the Executive’s estate in the case of death) the amount of Shares equal to the number of RSUs granted to
the Executive under this Agreement (to the extent not previously transferred, cancelled or forfeited), as adjusted pursuant to
Section 2 above, if applicable. The foregoing condition that the Executive be an employee of Sirius XM shall, in the event of
the termination of the Executive’s employment with Sirius XM due to death or Disability, by Sirius XM without Cause or by
the Executive for Good Reason be waived by the Company provided that the Executive (or his estate in the case of death) executes
a release in accordance with Section 6(h) of the Employment Agreement.

 

5. Change of Control. In the event
of a Change of Control, the RSUs shall be governed by the terms of the Plan; provided that any transactions between the
Company, Sirius XM and/or any of their respective wholly-owned subsidiaries, on the one hand, and Liberty Media Corporation, any
Qualified Distribution Transferee (as defined in the Investment Agreement, dated as of February 17, 2009, between the Company
and Liberty Radio LLC, as amended) and/or any of their respective wholly-owned subsidiaries, on the other hand, shall not constitute
a Change of Control under the Plan.

 

6. Non-transferable. The RSUs may
not be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) other than by will
or by the applicable laws of descent and distribution, and shall not be subject to execution, attachment or similar process. Any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of RSUs or of any right or privilege conferred hereby shall
be null and void.

 

7. Withholding. Prior to delivery
of the Shares pursuant to this Agreement, the Company shall determine the amount of any United States federal, state and local
income taxes, if any, which are required to be withheld under applicable law and shall, as a condition of delivery of certificates
representing the Shares pursuant to this Agreement, collect from the Executive the amount of any such tax to the extent not previously
withheld; provided that, at the Executive’s election, such withholding shall be satisfied by the Company withholding Shares

 

 

	8 	First, second and third anniversaries of the “Effective Date,” as defined in the
    Employment Agreement.

    	 

    		21

    

otherwise deliverable pursuant to this Agreement having a Fair
Market Value equal to the amount of such required withholding (based upon the minimum statutory withholding rate).

 

8. Rights of the Executive. Neither
this Agreement nor the RSUs shall confer upon the Executive any right to, or guarantee of, continued employment by Sirius XM,
or in any way limit the right of Sirius XM to terminate the employment of the Executive at any time, subject to the terms of any
written employment or similar agreement between or among the Company, Sirius XM and the Executive.

 

9. Professional Advice. The acceptance
of the RSUs may have consequences under federal and state tax and securities laws that may vary depending upon the individual
circumstances of the Executive. Accordingly, the Executive acknowledges that the Executive has been advised to consult his personal
legal and tax advisors in connection with this Agreement and the RSUs.

 

10. Agreement Subject to the Plan.
This Agreement and the RSUs are subject to the terms and conditions set forth in the Plan, which terms and conditions are incorporated
herein by reference. The Executive acknowledges that a copy of the Plan is posted on Sirius XM’s intranet site and the Executive
agrees to review it and comply with its terms. This Agreement, the Employment Agreement and the Plan constitute the entire understanding
between or among the Company, Sirius XM and the Executive with respect to the RSUs.

 

11. Governing Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of New York, and shall bind and inure to the benefit
of the heirs, executors, personal representatives, successors and assigns of the parties hereto. Any disputes arising from or
relating to this Agreement shall be subject to arbitration pursuant to Section 20 of the Employment Agreement.

 

12. Notices. All notices and other
communications hereunder shall be in writing and shall be deemed given when delivered personally or when telecopied (with confirmation
of transmission received by the sender), three (3) business days after being sent by certified mail, postage prepaid, return receipt
requested or one (1) business day after being delivered to a nationally recognized overnight courier with next day delivery specified
to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

	 	Company:	Sirius XM Holdings Inc.
	 	 	1290 Avenue of the Americas
	 	 	11th Floor
	 	 	New York, New York 10020
	 	 	Attention:  General Counsel
	 	 	 
	 	Executive:	Scott A. Greenstein
	 	 	Address on file at the
	 	 	office of the Company

    	 

    		22

    

Notices sent by email or other electronic means not specifically
authorized by this Agreement shall not be effective for any purpose of this Agreement.

 

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

 

SIRIUS XM HOLDINGS INC.

 

	By: 	Exhibit B	 	Exhibit B	 
	 	Dara F. Altman	 	SCOTT A. GREENSTEIN	 
	 	Executive Vice President and	 	 	 
	 	Chief Administrative Officer	 	 	 

    	 

    		23

    

Exhibit C

 

AGREEMENT AND RELEASE

 

This Agreement and Release, dated as of
_________, 20__ (this “Agreement”), is entered into by and between SCOTT A. GREENSTEIN (the “Executive”)
and SIRIUS XM RADIO INC. (the “Company”).

 

The purpose of this Agreement is to completely
and finally settle, resolve, and forever extinguish all obligations, disputes and differences arising out of the Executive’s
employment with and separation from the Company.

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants contained in this Agreement, the Executive and the Company hereby agree as follows:

 

1. The Executive’s employment with
the Company is terminated as of _____________, 20__ (the “Termination Date”).

 

2. The Company and the Executive agree that
the Executive shall be provided severance pay and other benefits, less all legally required and authorized deductions, in accordance
with the terms of Section 6(g) of the Employment Agreement between the Executive and the Company, dated as of May 24, 2016 (the
“Employment Agreement”); provided that no such severance benefits shall be paid or provided if the Executive
revokes this Agreement pursuant to Section 4 below. The Executive acknowledges and agrees that he is entering into this Agreement
in consideration of such severance benefits and the Company’s agreements set forth herein. All vacation pay earned and unused
as of the Termination Date will be paid to the Executive to the extent required by law. Except as set forth above, the Executive
will not be eligible for any other compensation or benefits following the Termination Date other than any vested accrued benefits
under the Company’s compensation and benefit plans, and other than the rights, if any, granted to the Executive under the
terms of any stock option, restricted stock, or other equity award agreements or plans.

 

3. The Executive, for himself, and for his
heirs, attorneys, agents, spouse and assigns, hereby waives, releases and forever discharges Sirius XM Holdings Inc., the Company
and their respective parents, subsidiaries, and affiliated companies and its and their predecessors, successors, and assigns,
if any, as well as all of their officers, directors and employees, stockholders, agents, servants, representatives, and attorneys,
and the predecessors, successors, heirs and assigns of each of them (collectively “Released Parties”), from
any and all grievances, claims, demands, causes of action, obligations, damages and/or liabilities of any nature whatsoever, whether
known or unknown, suspected or claimed, which the Executive ever had, now has, or claims to have against the Released Parties,
by reason of any act or omission occurring before the Executive’s execution hereof, including, without limiting the generality
of the foregoing, (a) any act, cause, matter or thing stated, claimed or alleged, or which was or which could have been alleged
in any manner against the Released Parties prior to the execution of this Agreement and (b) all claims for any payment under the
Employment Agreement; provided that nothing contained in this Agreement shall affect the Executive’s rights (i) to
indemnification from the Company as provided in the Employment Agreement or otherwise; (ii)

    	 

    		24

    

to coverage under the Company’s insurance policies covering
officers and directors; (iii) to other benefits which by their express terms extend beyond the Executive’s separation from
employment (including the Executive’s rights under Section 6(g) of the Employment Agreement); and (iv) under this Agreement,
and (c) all claims for discrimination, harassment and/or retaliation, under Title VII of the Civil Rights Act of 1964, as amended,
the Civil Rights Act of 1991, as amended, the New York State Human Rights Law, as amended, as well as any and all claims arising
out of any alleged contract of employment, whether written, oral, express or implied, or any other federal, state or local civil
or human rights or labor law, ordinances, rules, regulations, guidelines, statutes, common law, contract or tort law, arising
out of or relating to the Executive’s employment with and/or separation from the Company, including but not limited to the
termination of his employment on the Termination Date, and/or any events occurring prior to the execution of this Agreement.

 

4. The Executive specifically waives all
rights or claims that he has or may have under the Age Discrimination In Employment Act of 1967, 29 U.S.C. §§ 621-634,
as amended (“ADEA”), including, without limitation, those arising out of or relating to the Executive’s
employment with and/or separation from the Company, the termination of his employment on the Termination Date, and/or any events
occurring prior to the execution of this Agreement. In accordance with the ADEA, the Company specifically hereby advises the Executive
that: (1) he may and should consult an attorney before signing this Agreement, (2) he has [twenty-one (21)/forty-five (45)]9
days to consider this Agreement, and (3) he has seven (7) days after signing this Agreement to revoke this Agreement.

 

5. Notwithstanding the above, nothing in
this Agreement prevents or precludes the Executive from (a) challenging or seeking a determination of the validity of this Agreement
under the ADEA; or (b) filing an administrative charge of discrimination under any applicable statute or participating in any
investigation or proceeding conducted by a governmental agency.

 

6. This release does not affect or impair
the Executive’s rights with respect to workman’s compensation or similar claims under applicable law or any claims
under medical, dental, disability, life or other insurance arising prior to the date hereof.

 

7. The Executive warrants that he has not
made any assignment, transfer, conveyance or alienation of any potential claim, cause of action, or any right of any kind whatsoever,
including but not limited to, potential claims and remedies for discrimination, harassment, retaliation, or wrongful termination,
and that no other person or entity of any kind has had, or now has, any financial or other interest in any of the demands, obligations,
causes of action, debts, liabilities, rights, contracts, damages, costs, expenses, losses or claims which could have been asserted
by the Executive against the Company or any other Released Party.

 

8. The Executive shall not make any disparaging
remarks about any of the Released Parties and/or any of their respective practices or products; provided that the Executive
may provide truthful and accurate facts and opinions about the Company where required to do so

 

 

	9 	To be determined by the Company in connection with the termination.

    	 

    		25

    

by law. The Company shall not, and shall instruct its officers
not to, make any disparaging remarks about the Executive; provided that the Released Parties and their respective officers
may provide truthful and accurate facts and opinions about the Executive where required to do so by law.

 

9. The parties expressly agree that this
Agreement shall not be construed as an admission by any of the parties of any violation, liability or wrongdoing, and shall not
be admissible in any proceeding as evidence of or an admission by any party of any violation or wrongdoing. The Company expressly
denies any violation of any federal, state, or local statute, ordinance, rule, regulation, order, common law or other law in connection
with the employment and termination of employment of the Executive.

 

10. In the event of a dispute concerning
the enforcement of this Agreement, the finder of fact shall have the discretion to award the prevailing party reasonable costs
and attorneys’ fees incurred in bringing or defending an action, and shall award such costs and fees to the Executive in
the event the Executive prevails on the merits of any action brought hereunder. All other requests for relief or damages awards
shall be governed by Sections 20(a) and 20(b) of the Employment Agreement.

 

11. The parties declare and represent that
no promise, inducement, or agreement not expressed herein has been made to them.

 

12. This Agreement in all respects shall
be interpreted, enforced and governed under the laws of the State of New York and any applicable federal laws relating to the
subject matter of this Agreement. The language of all parts of this Agreement shall in all cases be construed as a whole, according
to its fair meaning, and not strictly for or against any of the parties. This Agreement shall be construed as if jointly prepared
by the Executive and the Company. Any uncertainty or ambiguity shall not be interpreted against any one party.

 

13. This Agreement, the Employment Agreement,
[and list any outstanding award agreements] between the Executive and the Company [or Sirius XM Holdings Inc., as applicable,]
contain the entire agreement of the parties as to the subject matter hereof. No modification or waiver of any of the provisions
of this Agreement shall be valid and enforceable unless such modification or waiver is in writing and signed by the party to be
charged, and unless otherwise stated therein, no such modification or waiver shall constitute a modification or waiver of any
other provision of this Agreement (whether or not similar) or constitute a continuing waiver.

 

14. The Executive and the Company represent
that they have been afforded a reasonable period of time within which to consider the terms of this Agreement (including but not
limited to the foregoing release), that they have read this Agreement, and they are fully aware of its legal effects. The Executive
and the Company further represent and warrant that they enter into this Agreement knowingly and voluntarily, without any mistake,
duress, coercion or undue influence, and that they have been provided the opportunity to review this Agreement with counsel of
their own choosing. In making this Agreement, each party relies upon his or its own judgment, belief and knowledge, and has not
been influenced in any way by any representations

    	 

    		26

    

or statements not set forth herein regarding the contents hereof
by the entities who are hereby released, or by anyone representing them.

 

15. This Agreement may be executed in counterparts,
all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been
signed by each of the parties and delivered to the other parties. The parties further agree that delivery of an executed counterpart
by facsimile shall be as effective as delivery of an originally executed counterpart. This Agreement shall be of no force or effect
until executed by all the signatories.

 

16. The Executive warrants that he will
return to the Company all software, computers, computer-related equipment, keys and all materials (including, without limitation,
copies) obtained or created by the Executive in the course of his employment with the Company on or before the Termination Date;
provided that the Executive will be able to keep his cell phone, blackberry, personal computer, personal rolodex and the
like so long as any confidential information is removed from such items.

 

17. Any existing obligations the Executive
has with respect to confidentiality, nonsolicitation of clients, nonsolicitation of employees and noncompetition, in each case
with the Company or its affiliates, shall remain in full force and effect, including, but not limited to, Sections 7 and 8 of
the Employment Agreement.

 

18. Any disputes arising from or relating
to this Agreement shall be subject to arbitration pursuant to Section 20 of the Employment Agreement.

 

19. Should any provision of this Agreement
be declared or be determined by a forum with competent jurisdiction to be illegal or invalid, the validity of the remaining parts,
terms or provisions shall not be affected thereby and said illegal or invalid part, term, or provision shall be deemed not to
be a part of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the respective dates set forth below.

 

	 	 	 	SIRIUS XM RADIO INC.
	 	 	 	 	 
	Dated:	 	 	By: 	Exhibit C
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Dated:	 	 	Exhibit C
	 	 	 	SCOTT A. GREENSTEIN

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