Document:

EX-10.5

 Exhibit 10.5 

Execution Copy 
  

 
  

AMENDED AND RESTATED KSURE COVERED FACILITY AGREEMENT 

Dated as of June 30, 2015 

among 
 SABINE PASS LIQUEFACTION,
LLC, 
 as Borrower, 
 THE KOREA
DEVELOPMENT BANK, NEW YORK BRANCH, 
 as the KSURE Covered Facility Agent, 

SOCIÉTÉ GÉNÉRALE, 

as the Common Security Trustee, 

and 
 THE FINANCIAL INSTITUTIONS

 now or hereafter party hereto, as KSURE Covered Facility Lenders, 

and for the benefit of 
 THE KOREA
DEVELOPMENT BANK, 
 as Mandated Lead Arranger 

and 
 HANA BANK NEW YORK AGENCY,

 as Manager 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE 1
	  	 DEFINITIONS AND INTERPRETATION
	  	 	8	  
			
	 1.01
	  	 Defined Terms
	  	 	8	  
	 1.02
	  	 Principles of Interpretation
	  	 	8	  
	 1.03
	  	 UCC Terms
	  	 	8	  
	 1.04
	  	 Accounting and Financial Determinations
	  	 	8	  
			
	 ARTICLE 2
	  	 COMMITMENTS AND BORROWING
	  	 	8	  
			
	 2.01
	  	 KSURE Covered Facility Loans
	  	 	8	  
	 2.02
	  	 Notice of Borrowings
	  	 	9	  
	 2.03
	  	 Borrowing of Loans
	  	 	9	  
	 2.04
	  	 Termination or Reduction of Commitments
	  	 	12	  
			
	 ARTICLE 3
	  	 PAYMENTS, PREPAYMENTS, INTEREST AND FEES
	  	 	12	  
			
	 3.01
	  	 Repayment of KSURE Covered Facility Loan Borrowings
	  	 	12	  
	 3.02
	  	 Interest Payment Dates
	  	 	13	  
	 3.03
	  	 Interest Rates
	  	 	13	  
	 3.04
	  	 Post-Maturity Interest Rates; Default Interest Rates
	  	 	13	  
	 3.05
	  	 Interest Rate Determination
	  	 	13	  
	 3.06
	  	 Computation of Interest and Fees
	  	 	13	  
	 3.07
	  	 Optional Prepayment
	  	 	14	  
	 3.08
	  	 Mandatory Prepayment
	  	 	15	  
	 3.09
	  	 Time and Place of Payments
	  	 	15	  
	 3.10
	  	 Borrowings and Payments Generally
	  	 	16	  
	 3.11
	  	 Fees
	  	 	16	  
	 3.12
	  	 Pro Rata Treatment
	  	 	17	  
	 3.13
	  	 Sharing of Payments
	  	 	18	  
			
	 ARTICLE 4
	  	 LIBOR AND TAX PROVISIONS
	  	 	18	  
			
	 4.01
	  	 LIBOR Lending Unlawful
	  	 	18	  
	 4.02
	  	 Inability to Determine Interest Rates
	  	 	19	  
	 4.03
	  	 Increased Costs
	  	 	20	  
	 4.04
	  	 Obligation to Mitigate
	  	 	21	  
	 4.05
	  	 Funding Losses
	  	 	23	  
	 4.06
	  	 Taxes
	  	 	24	  
			
	 ARTICLE 5
	  	 REPRESENTATIONS AND WARRANTIES
	  	 	28	  
			
	 5.01
	  	 Incorporation of Representations and Warranties in the Common Terms Agreement
	  	 	28	  

  
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	 ARTICLE 6
		 CONDITIONS PRECEDENT
		 	28	  
			
	 6.01
		 Conditions to Closing Date
		 	28	  
	 6.02
		 Conditions to KSURE Covered Facility Initial Advance
		 	28	  
	 6.03
		 Conditions to Train 6 Initial Advance
		 	28	  
	 6.04
		 Conditions to Each KSURE Covered Facility Loan Borrowing
		 	29	  
			
	 ARTICLE 7
		 COVENANTS
		 	29	  
			
	 7.01
		 Incorporation of Common Terms Agreement
		 	29	  
	 7.02
		 Exhibit E Updates
		 	29	  
			
	 ARTICLE 8
		 DEFAULT AND ENFORCEMENT
		 	29	  
			
	 8.01
		 Events of Default under the Common Terms Agreement
		 	29	  
	 8.02
		 Claims under the KSURE Insurance Policy
		 	30	  
	 8.03
		 Acceleration Upon Bankruptcy
		 	30	  
	 8.04
		 Acceleration Upon Other Event of Default
		 	30	  
	 8.05
		 Action Upon Event of Default
		 	30	  
	 8.06
		 Application of Proceeds
		 	31	  
			
	 ARTICLE 9
		 THE KSURE COVERED FACILITY AGENT
		 	32	  
			
	 9.01
		 Appointment and Authority
		 	32	  
	 9.02
		 Rights as a Lender or Secured Hedging Party
		 	33	  
	 9.03
		 Exculpatory Provisions
		 	33	  
	 9.04
		 Reliance by KSURE Covered Facility Agent
		 	34	  
	 9.05
		 Delegation of Duties
		 	35	  
	 9.06
		 Indemnification by the KSURE Covered Facility Lenders
		 	35	  
	 9.07
		 Resignation or Removal of KSURE Covered Facility Agent
		 	35	  
	 9.08
		 No Amendment to Duties of KSURE Covered Facility Agent Without Consent
		 	36	  
	 9.09
		 Non-Reliance on KSURE Covered Facility Agent
		 	37	  
	 9.10
		 No Mandated Lead Arranger, Manager Duties
		 	37	  
	 9.11
		 Certain Obligations
		 	37	  
	 9.12
		 KSURE Insurance
		 	38	  
	 9.13
		 Voting
		 	38	  
	 9.14
		 KSURE Override
		 	38	  
			
	 ARTICLE 10
		 SUBROGATION AND REIMBURSEMENT
		 	39	  
			
	 10.01
		 KSURE Insurance
		 	39	  
	 10.02
		 Obligations Unconditional
		 	39	  
			
	 ARTICLE 11
		 MISCELLANEOUS PROVISIONS
		 	39	  
			
	 11.01
		 Amendments, Etc.
		 	39	  
	 11.02
		 Entire Agreement
		 	42	  
	 11.03
		 Applicable Government Rule; Jurisdiction; Etc.
		 	42	  
	 11.04
		 Assignments
		 	43	  
	 11.05
		 Benefits of Agreement
		 	47	  
	 11.06
		 Costs and Expenses
		 	47	  

  
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	 11.07
		 Counterparts; Effectiveness
		 	48	  
	 11.08
		 Indemnification by the Borrower
		 	49	  
	 11.09
		 Interest Rate Limitation
		 	50	  
	 11.10
		 No Waiver; Cumulative Remedies
		 	50	  
	 11.11
		 Notices and Other Communications
		 	51	  
	 11.12
		 Patriot Act Notice
		 	53	  
	 11.13
		 Payments Set Aside
		 	53	  
	 11.14
		 Right of Setoff
		 	54	  
	 11.15
		 Severability
		 	54	  
	 11.16
		 Survival
		 	54	  
	 11.17
		 Treatment of Certain Information; Confidentiality
		 	54	  
	 11.18
		 Waiver of Consequential Damages, Etc.
		 	56	  
	 11.19
		 Waiver of Litigation Payments
		 	56	  
	 11.20
		 Reinstatement
		 	56	  
	 11.21
		 No Recourse
		 	57	  
	 11.22
		 Intercreditor Agreement
		 	57	  
	 11.23
		 Termination
		 	57	  
	 11.24
		 Liability of KSURE
		 	58	  

 SCHEDULES 
  

					
	Schedule 2.01		-		KSURE Covered Facility Commitments
	Schedule 3.01(a)		-		Amortization Schedule
	Schedule 11.11		-		Notice Information

 EXHIBITS 
  

					
	Exhibit A		-		Definitions
	Exhibit B		-		Form of KSURE Covered Facility Note
	Exhibit C		-		Form of Lender Assignment Agreement (Commitment and Loans)
	Exhibit D-1		-		Form of U.S. Tax Compliance Certificate (For Non-U.S. Lenders that are not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit D-2		-		Form of U.S. Tax Compliance Certificate (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
	Exhibit D-3		-		Form of U.S. Tax Compliance Certificate (For Non-U.S. Participants that are Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit D-4		-		Form of U.S. Tax Compliance Certificate (For Non-U.S. Lenders that are Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit E		-		Projected Balance

  
 4 

 This AMENDED AND RESTATED KSURE COVERED FACILITY AGREEMENT (this “Agreement”),
dated as of June 30, 2015, is made among SABINE PASS LIQUEFACTION, LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Borrower”), THE KOREA DEVELOPMENT BANK, NEW YORK BRANCH as
the KSURE Covered Facility Agent, SOCIÉTÉ GÉNÉRALE, as the Common Security Trustee and each of the KSURE Covered Facility Lenders from time to time party hereto. 

W I T N E S S E T H : 

WHEREAS, Sabine Pass LNG, L.P. (“SPLNG”), an indirect wholly owned subsidiary of Cheniere Energy Partners, L.P. (the
“Sponsor”), owns and operates the Sabine Pass LNG Terminal (“Sabine Pass Terminal”) located in Cameron Parish, Louisiana. The Sabine Pass Terminal has LNG regasification and send-out capacity of approximately 4.3
Bcf/d, storage capacity of approximately 16.9 Bcfe and two marine berths; 
 WHEREAS, the Borrower intends to design, engineer, develop,
procure, construct, install, complete, own, operate and maintain up to six liquefaction trains, each with a nominal production capacity of at least 182,500,000 MMBtu per annum, that will add liquefaction services at the Sabine Pass Terminal
and convert the Sabine Pass Terminal into a facility capable of liquefying and exporting domestic U.S. natural gas in addition to importing and regasifying foreign-sourced LNG; 

WHEREAS, the Borrower, the Secured Debt Holder Group Representatives party thereto, the Secured Hedge Representatives party thereto, the
Secured Gas Hedge Representatives party thereto, the Common Security Trustee and the Intercreditor Agent entered into that certain Common Terms Agreement, dated as of July 31, 2012, as amended by that certain First Amendment to Common Terms
Agreement, dated as of November 6, 2012, as further amended by that certain Omnibus Amendment, dated as of January 9, 2013, and as further amended by that certain Second Omnibus Amendment (the “Second Omnibus Amendment”),
dated as of January 9, 2013, and as amended and restated by the Amended and Restated Common Terms Agreement, dated May 28, 2013, as amended by that certain Amendment to the Common Terms Agreement, dated as of November 20, 2013, as
further amended by that certain Amendment to the Common Terms Agreement, dated as of April 10, 2014, as further amended by that certain Amendment to the Common Terms Agreement, dated as of June 10, 2014, as further amended by that certain
Amendment to the Common Terms Agreement, dated as of May 12, 2015 (as so amended and restated, the “Amended and Restated Common Terms Agreement”), that sets out certain provisions regarding, among other things, common
representations and warranties of the Borrower, common covenants of the Borrower, and common Events of Default under certain of the Secured Debt Instruments (as defined in the Amended and Restated Common Terms Agreement); 

WHEREAS, the Borrower, the Commercial Banks Facility Agent, the Common Security Trustee, and the Commercial Bank Lenders party thereto (in
their capacity as construction/term loan lenders thereunder) entered into that certain Credit Agreement (Term Loan A), dated as of July 31, 2012, as amended by the Second Omnibus Amendment (as so

  
 5 

 
amended, the “Original Credit Agreement”) and as amended and restated by the Amended and Restated Credit Agreement (Term Loan A), dated as of May 28, 2013, and as amended by
that certain First Amendment to the Amended and Restated Credit Agreement (Term Loan A), dated as of March 21, 2014 (as so amended and restated, the “Amended and Restated Credit Agreement”), pursuant to which such Commercial
Bank Lenders party thereto (in such capacity) agreed to provide, upon the terms and conditions set forth therein, the loans described therein and to finance the construction of the first four trains of the Project; 

WHEREAS, the Borrower, the Secured Debt Holder Group Representatives party thereto, the Secured Hedge Representatives party thereto, the
Secured Gas Hedge Representatives party thereto, the Common Security Trustee and the Intercreditor Agent have entered into that certain Intercreditor Agreement, dated as of July 31, 2012, as amended by the Second Omnibus Amendment, as amended
and restated by the Amended and Restated Intercreditor Agreement, dated as of May 28, 2013 (as so amended and restated, the “Amended and Restated Intercreditor Agreement”), that, among other things, governs the relationship
among the Secured Parties and regulates the claims of the Secured Parties under the Amended and Restated Common Terms Agreement against the Borrower and the enforcement by the Secured Parties under the Amended and Restated Common Terms Agreement of
the Security (as defined in the Amended and Restated Common Terms Agreement), including the method of voting and decision making, and the appointment of the Intercreditor Agent for the purposes set forth therein; 

WHEREAS, as of the date hereof, pursuant to that certain Indenture, dated as of February 1, 2013, as supplemented by a first supplemental
indenture, dated as of April 16, 2013, a second supplemental indenture, dated as of April 16, 2013, a third supplemental indenture, dated as of November 25, 2013, a fourth supplemental indenture, dated as of May 20, 2014, a fifth
supplemental indenture, dated as of May 20, 2014, and a sixth supplemental indenture, dated as of March 3, 2015, the Borrower has issued Senior Bonds in one or more series in the aggregate principal amount of eight billion five hundred
million Dollars ($8,500,000,000) constituting Replacement Debt and resulting in cancellation of Facility Commitments such that, as of the date hereof, the aggregate Facility Commitments remaining available amount to eight hundred ninety-nine million
one hundred twenty-three thousand nine hundred ninety-four Dollars and seven cents ($899,123,994.07); 
 WHEREAS, the Borrower, the
Commercial Bank Lenders and certain other parties thereto, as applicable, desire to amend and restate the Amended and Restated Credit Agreement and certain other Transaction Documents, as set forth below, the KSURE Covered Facility Lenders desire to
amend and restate the KSURE Covered Facility Agreement, and KEXIM, the KEXIM Covered Facility Lenders, and certain other Holders of Senior Debt, if applicable, desire to establish certain additional credit facilities in order to provide funds which
are to be used, along with the Funded Equity to finance the design, engineering, development, procurement, construction, installation, completion, ownership, operation and maintenance of the relevant trains of the Project, to pay certain fees and
expenses associated with the Financing Documents and the Senior Debt, fund the Senior Debt Facilities Debt Service Reserve Account, fund operating and working capital expenses associated with the relevant trains of the Project, issue letters of
credit and as further described herein and in the other Financing Documents; 

  
 6 

 WHEREAS, the Borrower and KEXIM, an official export credit agency promoting the sound development
of the Korean national economy by providing finance required for overseas economic cooperation, such as export and import, overseas investment and exploitation of overseas resources as provided in Article 1 of the Export-Import Bank of Korea Act,
are entering into that certain KEXIM Direct Facility Agreement, pursuant to which KEXIM will provide upon the terms and conditions set forth therein, the loans described therein to finance the construction of the relevant trains of the Project; 

WHEREAS, the Borrower, the KEXIM Facility Agent, the Common Security Trustee, KEXIM and the KEXIM Covered Facility Lenders are entering into
that certain KEXIM Covered Facility Agreement, pursuant to which the KEXIM Covered Facility Lenders will provide, upon the terms and conditions set forth therein, the loans described therein to finance the construction of the relevant trains of the
Project and, in connection therewith and as a condition thereto, KEXIM will issue the KEXIM Guarantee to provide, upon the terms and conditions set forth therein, credit support to the KEXIM Covered Facility Lenders; 

WHEREAS, the Borrower, the Commercial Banks Facility Agent, the Common Security Trustee, and the Commercial Bank Lenders are entering into an
Amended and Restated Credit Agreement (Term Loan A), pursuant to which the Commercial Bank Lenders will provide upon the terms and conditions set forth therein, the loans described therein to finance the construction of the relevant trains of the
Project; 
 WHEREAS, the Borrower, the Secured Debt Holder Group Representatives, the Secured Hedge Representatives, the Secured Gas Hedge
Representatives, the Common Security Trustee and the Intercreditor Agent are entering into a new Intercreditor Agreement in order to amend and restate the Amended and Restated Intercreditor Agreement and, among other things, regulate the
relationship among the Secured Parties and regulate the claims of the Secured Parties against the Borrower and the enforcement by the Secured Parties of the Security, including the method of voting and decision making, and the appointment of the
Intercreditor Agent for the purposes set forth therein; 
 WHEREAS, the Borrower has granted certain Security in the Collateral for the
benefit of the Secured Parties pursuant to the Security Documents; 
 WHEREAS, the Borrower, the Secured Debt Holder Group Representatives,
the Secured Hedge Representatives, the Secured Gas Hedge Representatives, the Common Security Trustee, and the Intercreditor Agent are entering into a new Common Terms Agreement in order to amend and restate the Amended and Restated Common Terms
Agreement and set out certain provisions regarding, among other things: (a) common representations and warranties of the Borrower; (b) common covenants of the Borrower; and (c) common Events of Default under certain of the Secured
Debt Instruments; 
 WHEREAS, the Borrower has requested that the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE
Covered Facility Lenders establish a credit facility, pursuant to which the KSURE Covered Facility Lenders will provide, upon the terms and conditions set forth herein, the loans described herein to finance the construction of the relevant trains of
the Project and, in connection herewith and as a condition hereto, KSURE will issue the KSURE Insurance to provide, upon the terms and conditions set forth therein, credit support to the KSURE Covered Facility Lenders; and 

  
 7 

 WHEREAS, the KSURE Covered Facility Lenders are willing to make such credit facility available
upon and subject to the terms and conditions hereinafter set forth. 
 NOW THEREFORE, the parties hereto agree as follows: 

ARTICLE 1 
 DEFINITIONS
AND INTERPRETATION 
 1.01 Defined Terms. Unless the context shall otherwise require, or unless otherwise defined herein in
Exhibit A, capitalized terms used herein shall have the meanings provided in the Common Terms Agreement. 
 1.02 Principles
of Interpretation. Unless the context shall otherwise require, or unless otherwise provided herein, this Agreement shall be governed by the principles of interpretation in Section 1.2 (Interpretation) of the Common Terms Agreement,
mutatis mutandis. In the event of any conflict between the terms of this Agreement and the terms of the Common Terms Agreement, the terms of this Agreement shall prevail as among the parties hereto. 

1.03 UCC Terms. Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the respective meanings given
to those terms in the UCC. 
 1.04 Accounting and Financial Determinations. Except as otherwise expressly provided herein, all terms
of an accounting or financial nature shall be construed in accordance with Section 1.4 (Accounting and Financial Determinations) of the Common Terms Agreement. 

ARTICLE 2 
 COMMITMENTS
AND BORROWING 
 On the terms, subject to the conditions and relying upon the representations and warranties herein set forth: 

2.01 KSURE Covered Facility Loans. (a) Each KSURE Covered Facility Lender, severally and not jointly, shall make loans (each such
loan, a “KSURE Covered Facility Loan”) to the Borrower in an aggregate principal amount not in excess of the KSURE Covered Facility Commitment of such KSURE Covered Facility Lender, from time to time during the Availability Period,
but not more frequently than twice monthly; provided that, after giving effect to the making of any KSURE Covered Facility Loans, the aggregate outstanding principal amount of all KSURE Covered Facility Loans shall not exceed the Aggregate
KSURE Covered Facility Commitment. 

  
 8 

 (b) Each KSURE Covered Facility Loan Borrowing shall be in an amount specified in a Borrowing
Notice delivered pursuant to Section 2.3 (Borrowing Notice Requirements) of the Common Terms Agreement. 
 (c) Proceeds of the
KSURE Covered Facility Loans shall be deposited into the Construction Account solely to fund Project Costs, subject to the terms and conditions set forth herein. 

(d) KSURE Covered Facility Loans repaid or prepaid may not be reborrowed. 

2.02 Notice of Borrowings. (a) From time to time, but no more frequently than twice monthly, subject to the limitations set forth
in Section 2.01 (KSURE Covered Facility Loans), the Borrower may request a KSURE Covered Facility Loan Borrowing by delivering to the KSURE Covered Facility Agent a properly completed Borrowing Notice pursuant to and in accordance with
Section 2.3 (Borrowing Notice Requirements) of the Common Terms Agreement. 
 (b) The KSURE Covered Facility Agent shall
promptly (and in no event later than 12:00 p.m., Seoul time, on or before the third Business Day prior to the proposed Borrowing Date) advise each KSURE Covered Facility Lender that has a KSURE Covered Facility Commitment of any Borrowing Notice
delivered pursuant to this Section 2.02, together with each such KSURE Covered Facility Lender’s KSURE Covered Facility Loan Commitment Percentage of the requested KSURE Covered Facility Loan Borrowing. 

Without limitation of Section 9.11(d) (Certain Obligations), the KSURE Covered Facility Agent shall provide to KSURE
(i) copies of each Borrowing Notice requesting the disbursement of any KSURE Covered Facility Loans promptly following receipt thereof and (ii) as promptly as practicable (and in any event within three (3) Business Days) following the
making of each KSURE Covered Facility Loan, written notice indicating the amount of such KSURE Covered Facility Loan, the date on which such KSURE Covered Facility Loan was made and the amortization terms applicable thereto. 

2.03 Borrowing of Loans. (a) Subject to clause (c) below, each KSURE Covered Facility Lender shall make a KSURE Covered
Facility Loan in the amount of its KSURE Covered Facility Loan Commitment Percentage of each KSURE Covered Facility Loan Borrowing on the proposed Borrowing Date by wire transfer of immediately available funds to the KSURE Covered Facility Agent,
not later than 1:00 p.m., New York City time, and the KSURE Covered Facility Agent shall transfer and deposit the amounts so received as set forth in Section 2.01(c) (KSURE Covered Facility Loans) for application in accordance with
Sections 5.02(b) and (e) (Construction Account) of the Accounts Agreement; provided that, if a KSURE Covered Facility Loan Borrowing does not occur on the proposed Borrowing Date because any condition precedent to such requested
KSURE Covered Facility Loan Borrowing herein specified has not been met, the KSURE Covered Facility Agent shall return the amounts so received to each KSURE Covered Facility Lender without interest as soon as possible. 

(b) Subject to Section 4.04 (Obligation to Mitigate), each KSURE Covered Facility Lender may (without relieving the Borrower of
its obligation to repay a KSURE 

  
 9 

 
Covered Facility Loan in accordance with the terms of this Agreement and the KSURE Covered Facility Notes) at its option fulfill its KSURE Covered Facility Commitments with respect to any such
KSURE Covered Facility Loan by causing any domestic or foreign branch or Affiliate of such KSURE Covered Facility Lender to make such KSURE Covered Facility Loan. 

(c) Unless the KSURE Covered Facility Agent has been notified in writing by any KSURE Covered Facility Lender prior to a proposed Borrowing
Date that such KSURE Covered Facility Lender will not make available to the KSURE Covered Facility Agent its portion of the KSURE Covered Facility Loan Borrowing proposed to be made on such date, the KSURE Covered Facility Agent may assume that such
KSURE Covered Facility Lender has made such amounts available to the KSURE Covered Facility Agent on such date and the KSURE Covered Facility Agent in its sole discretion may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such corresponding amount is not in fact made available to the KSURE Covered Facility Agent by such KSURE Covered Facility Lender and the KSURE Covered Facility Agent has made such amount available to the Borrower, the KSURE
Covered Facility Agent shall be entitled to recover on demand from such KSURE Covered Facility Lender such corresponding amount plus interest on such corresponding amount in respect of each day from the date such corresponding amount was made
available by the KSURE Covered Facility Agent to the Borrower to the date such corresponding amount is recovered by the KSURE Covered Facility Agent at an interest rate per annum equal to the Federal Funds Effective Rate. If such KSURE
Covered Facility Lender pays such corresponding amount (together with such interest), then such corresponding amount so paid shall constitute such KSURE Covered Facility Lender’s KSURE Covered Facility Loan included in such KSURE Covered
Facility Loan Borrowing. If such KSURE Covered Facility Lender does not pay such corresponding amount forthwith upon the KSURE Covered Facility Agent’s demand, the KSURE Covered Facility Agent shall promptly notify the Borrower and the Borrower
shall promptly repay such corresponding amount to the KSURE Covered Facility Agent plus interest on such corresponding amount in respect of each day from the date such corresponding amount was made available by the KSURE Covered Facility Agent to
the Borrower to the date such corresponding amount is recovered by the KSURE Covered Facility Agent at an interest rate per annum equal to the highest LIBOR applicable to the KSURE Covered Facility Loans then outstanding plus the Applicable
Margin. If the KSURE Covered Facility Agent receives payment of the corresponding amount from each of the Borrower and such KSURE Covered Facility Lender, the KSURE Covered Facility Agent shall promptly remit to the Borrower such corresponding
amount. If the KSURE Covered Facility Agent receives payment of interest on such corresponding amount from each of the Borrower and such KSURE Covered Facility Lender for an overlapping period, the KSURE Covered Facility Agent shall promptly remit
to the Borrower the amount of such interest paid by the Borrower for such period. Nothing herein shall be deemed to relieve any KSURE Covered Facility Lender from its obligation to fulfill its KSURE Covered Facility Commitments hereunder and any
payment by the Borrower pursuant to this Section 2.03(c) shall be without prejudice to any claim the Borrower may have against a KSURE Covered Facility Lender that shall have failed to make such payment to the KSURE Covered Facility Agent. The
failure of any KSURE Covered Facility Lender to make available to the KSURE Covered Facility Agent its portion of the KSURE Covered Facility Loan Borrowing shall not relieve any other KSURE Covered Facility Lender of its obligations, if any,
hereunder to make available to the KSURE Covered Facility Agent its portion of the KSURE Covered Facility Loan Borrowing on the date of such KSURE 

  
 10 

 
Covered Facility Loan Borrowing, but no KSURE Covered Facility Lender shall be responsible for the failure of any other KSURE Covered Facility Lender to make available to the KSURE Covered
Facility Agent such other KSURE Covered Facility Lender’s portion of the KSURE Covered Facility Loan Borrowing on the date of any KSURE Covered Facility Loan Borrowing. A notice of the KSURE Covered Facility Agent to any KSURE Covered Facility
Lender or the Borrower with respect to any amounts owing under this Section 2.03(c) shall be conclusive, absent manifest error. 
 (d)
Each of the KSURE Covered Facility Lenders shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such KSURE Covered Facility Lender resulting from each KSURE Covered Facility Loan
made by such KSURE Covered Facility Lender, including the amounts of principal and interest payable and paid to such KSURE Covered Facility Lender from time to time hereunder. 

(e) The KSURE Covered Facility Agent shall maintain at the KSURE Covered Facility Agent’s office (i) a copy of any Lender Assignment
Agreement delivered to it pursuant to Section 11.04 (Assignments), and (ii) a register for the recordation of the names and addresses of the KSURE Covered Facility Lenders, and all the KSURE Covered Facility Commitments of, and
principal amount of and interest on the KSURE Covered Facility Loans owing and paid to, each KSURE Covered Facility Lender pursuant to the terms hereof from time to time and of amounts received by the KSURE Covered Facility Agent from the Borrower
and whether such amounts constitute principal, interest, fees or other amounts and each KSURE Covered Facility Lender’s share thereof (the “Register”). The Register shall be available for inspection by the Borrower and any
KSURE Covered Facility Lender at any reasonable time and from time to time upon reasonable prior notice. 
 (f) The entries made by the
KSURE Covered Facility Agent in the Register or the accounts maintained by any KSURE Covered Facility Lender shall be conclusive and binding evidence, absent manifest error, of the existence and amounts of the obligations recorded therein;
provided that the failure of any KSURE Covered Facility Lender or the KSURE Covered Facility Agent to maintain such Register or accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the KSURE
Covered Facility Loans in accordance with the terms of this Agreement. In the event of any conflict between the accounts and records maintained by any KSURE Covered Facility Lender and the accounts and records of the KSURE Covered Facility Agent in
respect of such matters, the accounts and records of the KSURE Covered Facility Agent shall control in the absence of manifest error. 
 (g)
The Borrower agrees that in addition to such accounts or records described in clauses (e) and (f) of this Section 2.03, the KSURE Covered Facility Loans made by each KSURE Covered Facility Lender, upon the request of any KSURE Covered
Facility Lender, be evidenced by a KSURE Covered Facility Note duly executed on behalf of the Borrower and shall be dated the date of the KSURE Covered Facility Initial Advance (or, if later, the date of any request therefor by a KSURE Covered
Facility Lender). Each such KSURE Covered Facility Note shall have all blanks appropriately filled in and shall be payable to such KSURE Covered Facility Lender and its registered assigns in a principal amount equal to the KSURE Covered Facility
Commitment of such KSURE Covered Facility Lender; provided that each KSURE Covered Facility Lender may attach schedules to its respective KSURE Covered Facility Note and endorse thereon the date, amount and maturity of its respective KSURE
Covered Facility Loan and payments with respect thereto. 

  
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 2.04 Termination or Reduction of Commitments. (a) All unused KSURE Covered Facility
Commitments, if any, shall be automatically and permanently terminated on the last day of the Availability Period. 
 (b) Upon any payment
or prepayment of the KSURE Covered Facility Loans pursuant to Section 3.01 (Repayment of KSURE Covered Facility Loan Borrowings), Section 3.07 (Optional Prepayment) or Section 3.08 (Mandatory Prepayment), the
Aggregate KSURE Covered Facility Commitment shall be automatically and permanently reduced in an amount equal to such payment or prepayment. 

(c) The Borrower shall have the right to permanently terminate in whole, and from time to time to permanently reduce in part, the Aggregate
KSURE Covered Facility Commitment (in a minimum amount of ten million Dollars ($10,000,000)) in accordance with Section 3.3 (Voluntary Cancellation of Secured Debt) of the Common Terms Agreement; provided that the Borrower shall
make such KSURE Covered Facility Commitment reduction contemporaneously and ratably amongst all Facility Loans. 
 (d) The Borrower shall
have the right to permanently terminate the KSURE Covered Facility Commitments of Non-Consenting Lenders in accordance with Section 4.04(d) (Obligation to Mitigate). 

(e) All unused KSURE Covered Facility Commitments, if any, shall be terminated upon the occurrence of an Event of Default if required pursuant
to Section 8.03 (Acceleration upon Bankruptcy) or Section 8.04 (Acceleration upon Other Event of Default) in accordance with the terms thereof. 

ARTICLE 3 
 PAYMENTS,
PREPAYMENTS, INTEREST AND FEES 
 3.01 Repayment of KSURE Covered Facility Loan Borrowings. (a) The Borrower unconditionally
and irrevocably promises to pay to the KSURE Covered Facility Agent for the ratable account of each KSURE Covered Facility Lender the aggregate outstanding principal amount of the KSURE Covered Facility Loans on each Quarterly Payment Date, in
accordance with the Amortization Schedule. 
 (b) Notwithstanding anything to the contrary set forth in Section 3.01(a) above, the
final principal repayment installment on the Maturity Date shall in any event be in an amount equal to the aggregate principal amount of all KSURE Covered Facility Loans outstanding on such date. 

  
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 3.02 Interest Payment Dates. (a) Interest accrued on each KSURE Covered Facility Loan
shall be payable, without duplication, on the following dates (each, an “Interest Payment Date”): 
 (i)
with respect to any repayment or prepayment of principal on such KSURE Covered Facility Loan, on the date of each such repayment or prepayment; 

(ii) on the Maturity Date; and 

(iii) on the last day of each applicable Interest Period. 

(b) Interest accrued on the KSURE Covered Facility Loans or other monetary Obligations after the date such amount is due and payable (whether
on the Maturity Date, any Quarterly Payment Date, any Interest Payment Date, upon acceleration or otherwise) shall be payable upon demand. 

(c) Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the
occurrence of an event set forth in Section 9.7 (Bankruptcy; Insolvency) of the Common Terms Agreement and Section 8.01 (Events of Default under the Common Terms Agreement) of this Agreement only to the extent it relates to
Section 9.7 (Bankruptcy; Insolvency) of the Common Terms Agreement. 
 3.03 Interest Rates. (a) The KSURE Covered
Facility Loans shall accrue interest at a rate per annum during each Interest Period applicable thereto equal to the sum of LIBOR for such Interest Period of three (3) months, plus the Applicable Margin. 

(b) All KSURE Covered Facility Loans shall bear interest from (and including) the first day of the applicable Interest Period to (but
excluding) the last day of such Interest Period at the interest rate determined as applicable to such KSURE Covered Facility Loan. 
 (c)
Notwithstanding anything to the contrary, the Borrower shall have, in the aggregate, no more than ten (10) separate KSURE Covered Facility Loan Borrowings outstanding at any one time. 

3.04 Post-Maturity Interest Rates; Default Interest Rates. If all or a portion of any Obligation is not paid or deposited when due
(whether on the Maturity Date, by acceleration or otherwise), such all or a portion of any Obligation shall bear interest at a rate per annum equal to the sum of (i) two percent (2%), (ii) Applicable Margin, and (iii) the
highest LIBOR applicable to the KSURE Covered Facility Loans then outstanding (such sum, the “Default Rate”), from the date of such non-payment until the amount then due is paid in full (after as well as before judgment). 

3.05 Interest Rate Determination. The KSURE Covered Facility Agent shall determine the interest rate applicable to the KSURE Covered
Facility Loans and shall give prompt notice of such determination to the Borrower, the KSURE Covered Facility Lenders and KSURE. In each such case, the KSURE Covered Facility Agent’s determination of the applicable interest rate shall be
conclusive in the absence of manifest error. 
 3.06 Computation of Interest and Fees. (a) All computations of interest for
KSURE Covered Facility Loans shall be made on the basis of a 360-day year and actual days elapsed. 

  
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 (b) Interest shall accrue on each KSURE Covered Facility Loan for the day on which the KSURE
Covered Facility Loan is made, and shall not accrue on a KSURE Covered Facility Loan, or any portion thereof, for the day on which the KSURE Covered Facility Loan or such portion is paid; provided, that any KSURE Covered Facility Loan that is repaid
on the same day on which it is made shall bear interest for one (1) day. 
 (c) Each determination by the KSURE Covered Facility Agent
of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 3.07 Optional
Prepayment. (a) The Borrower shall have the right to prepay the KSURE Covered Facility Loans on not less than five (5) Business Days’ prior written notice to KSURE and the KSURE Covered Facility Agent at any time following the end
of the Availability Period, as provided in Section 3.2 (Voluntary Prepayment of Secured Debt) of the Common Terms Agreement, subject to the terms and conditions of Section 3 (Repayment and Prepayments) of the Common Terms
Agreement. 
 (b) Any partial prepayment of the KSURE Covered Facility Loans under this Section 3.07 shall be in an amount that is not
less than the amount specified in Section 3.2 (Voluntary Prepayment of Secured Debt) of the Common Terms Agreement. 
 (c) All
prepayments under this Section 3.07 shall be made by the Borrower to the KSURE Covered Facility Agent for the account of KSURE Covered Facility Lenders and shall be applied by the KSURE Covered Facility Agent in accordance with
Section 3.07(d). Each notice of optional prepayment will be irrevocable, except that a notice of prepayment given by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities and/or the issuance of
other debt, in which case such notice may be revoked by the Borrower (by notice to KSURE and the KSURE Covered Facility Agent on or prior to the specified effective date) if such condition is not satisfied. The Borrower shall pay any Break Costs
incurred by any KSURE Covered Facility Secured Party as a result of such notice and revocation. 
 (d) With respect to each prepayment to be
made pursuant to this Section 3.07, on the date specified in the notice of prepayment delivered pursuant to Section 3.07(a), the Borrower shall pay to the KSURE Covered Facility Agent the sum of the following amounts: 

(i) the principal of, and accrued but unpaid interest on, the KSURE Covered Facility Loans to be prepaid; 

(ii) any additional amounts required to be paid under Section 4.05 (Funding Losses); and 

(iii) any other Obligations due to the respective KSURE Covered Facility Lenders in connection with any prepayment under the
Financing Documents. 
 (e) Amounts of any KSURE Covered Facility Loans prepaid pursuant to this Section 3.07 may not be reborrowed.

  
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 3.08 Mandatory Prepayment. (a) The Borrower shall be required to prepay the KSURE
Covered Facility Loans in accordance with Sections 3.4 (Mandatory Prepayment of Secured Debt) of the Common Terms Agreement, subject to the terms and conditions of Section 3 (Repayment and Prepayments) of the Common Terms
Agreement. 
 (b) With respect to each prepayment to be made pursuant to this Section 3.08, on the date required pursuant to
Section 3.4 (Mandatory Prepayment of Secured Debt) of the Common Terms Agreement, the Borrower shall pay to the KSURE Covered Facility Agent the sum of the following amounts: 

(i) the principal of, and accrued but unpaid interest on, the KSURE Covered Facility Loans to be prepaid; 

(ii) any additional amounts required to be paid under Section 4.05 (Funding Losses); 

(iii) any other Obligations due to the respective KSURE Covered Facility Lenders in connection with any prepayment under the
Financing Documents. 
 (c) Amounts of any KSURE Covered Facility Loans prepaid pursuant to this Section 3.08 may not be reborrowed.

 (d) If the Borrower chooses to incur Replacement Debt pursuant to Section 2.6 (Replacement Debt) of the Common Terms
Agreement, the Borrower shall use the proceeds of such Replacement Debt, on a pro rata basis, other than in the case of Section 2.6(j)(ii) of the Common Terms Agreement, with respect to all other Senior Debt Instruments that require such
prepayment, to prepay the KSURE Covered Facility Debt. 
 3.09 Time and Place of Payments. (a) The Borrower shall make each
payment (including any payment of principal of or interest on any KSURE Covered Facility Loan or any Fees or other Obligations) hereunder without setoff, deduction or counterclaim not later than 12:00 p.m., New York City time, on the date when due
in Dollars and, in immediately available funds, to the KSURE Covered Facility Agent at the following account: A/C# 400803798, ABA# 021000021 Attn: Tim Lee, Ref: Senior Secured Credit Facility for Sabine Pass Liquefaction, LLC., or at such other
office or account as may from time to time be specified by the KSURE Covered Facility Agent to the Borrower. Funds received after 12:00 p.m., New York City time, shall be deemed to have been received by the KSURE Covered Facility Agent on the next
succeeding Business Day. 
 (b) The KSURE Covered Facility Agent shall promptly remit in immediately available funds to each KSURE Covered
Facility Secured Party its share, if any, of any payments received by the KSURE Covered Facility Agent for the account of such KSURE Covered Facility Secured Party. 

(c) Whenever any payment (including any payment of principal of or interest on any KSURE Covered Facility Loan or any Fees or other
Obligations) hereunder shall become due, or otherwise would occur on a day that is not a Business Day, such payment shall (except as otherwise required by the proviso to the definition of “Interest Period”) be made on the immediately
succeeding Business Day, and such increase of time shall in such case be included in the computation of interest or Fees, if applicable. 

  
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 3.10 Borrowings and Payments Generally. (a) Unless the KSURE Covered Facility Agent
has received notice from the Borrower prior to the date on which any payment is due to the KSURE Covered Facility Agent for the account of the KSURE Covered Facility Lenders hereunder that the Borrower will not make such payment, the KSURE Covered
Facility Agent may assume that the Borrower has made such payment on such date in accordance with this Agreement and may, in reliance upon such assumption, distribute to the KSURE Covered Facility Lenders the amount due. If the Borrower has not in
fact made such payment, then each of the KSURE Covered Facility Lenders severally agrees to repay to the KSURE Covered Facility Agent forthwith on demand the amount so distributed to such KSURE Covered Facility Lender in immediately available funds
with interest thereon, for each day from (and including) the date such amount is distributed to it to (but excluding) the date of payment to the KSURE Covered Facility Agent, at the Federal Funds Effective Rate. A notice of the KSURE Covered
Facility Agent to any KSURE Covered Facility Lender with respect to any amount owing under this Section 3.10 shall be conclusive, absent manifest error. 

(b) Nothing herein shall be deemed to obligate any KSURE Covered Facility Lender to obtain funds for any KSURE Covered Facility Loan in any
particular place or manner or to constitute a representation by any KSURE Covered Facility Lender that it has obtained or will obtain funds for any KSURE Covered Facility Loan in any particular place or manner. 

(c) The Borrower hereby authorizes each KSURE Covered Facility Lender, if and to the extent payment owed to such KSURE Covered Facility Lender
is not made when due under this Agreement or under the KSURE Covered Facility Notes held by such KSURE Covered Facility Lender, to charge from time to time against any or all of the Borrower’s accounts with such KSURE Covered Facility Lender
any amount so due. 
 3.11 Fees. (a) From and including the date hereof until the end of the Availability Period, the Borrower
agrees to pay to the KSURE Covered Facility Agent, for the account of the KSURE Covered Facility Lenders, on each Interest Payment Date, a commitment fee (the “Commitment Fee”) at a rate per annum equal to 40% of the
Applicable Margin on the average daily amount by which the Aggregate KSURE Covered Facility Commitment exceeds the aggregate outstanding principal amount of the KSURE Covered Facility Loans during the Fiscal Quarter (or portion thereof) then ended;
provided that all Commitment Fees shall be payable in arrears and computed on the basis of the actual number of days elapsed in a year of 360 days, as prorated for any partial quarter, as applicable. Notwithstanding the foregoing,
the Borrower will not be required to pay any Commitment Fee to any KSURE Covered Facility Lender with respect to any period in which such KSURE Covered Facility Lender was a Defaulting Lender. 

(b) From and including the date hereof until the Final Maturity Date, the Borrower agrees to pay (i) for so long as no KSURE Insurance
Trigger Event shall exist, to KSURE, or (ii) during the period in which a KSURE Insurance Trigger Event shall exist, to the KSURE Covered Facility Agent for the ratable benefit of the KSURE Covered Facility Lenders, in each case, (A) in
advance, on the Closing Date and on the last Business Day of each Fiscal 

  
 16 

 
Quarter (starting with the Fiscal Quarter in which the Closing Date occurs), a fee in an amount equal to the product of (1) the Quarterly KSURE Premium for the next succeeding Fiscal Quarter
(or, for payment on the Closing Date, for the Fiscal Quarter in which the Closing Date occurs), multiplied by (2) the Projected Balance for such next succeeding Fiscal Quarter (or, for payment on the Closing Date, for the Fiscal Quarter in
which the Closing Date occurs), and (B) concurrently with any Additional Advance in a Fiscal Quarter, a fee (which fee may be paid from the proceeds of such Additional Advance) in an amount equal to the product of (1) the Quarterly KSURE
Premium for such Fiscal Quarter, multiplied by (2) the amount of such Additional Advance (the sum of (A) and (B), the “KSURE Premium”); provided, if the Borrower fails to pay any KSURE Premium, the KSURE Covered Facility
Lenders may, in their sole discretion, make such payment on behalf of the Borrower, and the Borrower shall reimburse the KSURE Covered Facility Lenders to the extent of any such payment immediately upon demand. 

(c) The Borrower agrees to pay to the KSURE Covered Facility Agent, for the account of each KSURE Covered Facility Lender, a front-end fee
(the “Front-End Fee”) in an amount equal to the aggregate of the fees specified for each KSURE Covered Facility Lender in the Upfront fees for commitments to the KSURE Covered Facility under the Sabine Pass Liquefaction, LLC Train 1
– 5 financing letter, dated as of June 29, 2015, from Cheniere Energy Partners, L.P. and SG Americas Securities, LLC to the KSURE Covered Facility Agent, which fee shall be paid on the earlier of (i) the KSURE Covered Facility Initial
Advance (in which case such fee may be paid from the proceeds of the KSURE Covered Facility Initial Advance), and (ii) the date that is sixty (60) days after the date of this Agreement. 

(d) The Borrower agrees to pay or cause to be paid to the KSURE Covered Facility Agent for the account of the KSURE Covered Facility Lenders
and the KSURE Covered Facility Agent, additional fees in the amounts and at the times from time to time agreed to by the Borrower and the KSURE Covered Facility Agent, including pursuant to any fee letter with a KSURE Covered Facility Lender. 

(e) All Fees shall be paid on the dates due in immediately available funds. Once paid, none of the Fees shall be refundable under any
circumstances. 
 3.12 Pro Rata Treatment. (a) Each KSURE Covered Facility Loan Borrowing and, except as otherwise provided in
Section 4.01 (LIBOR Lending Unlawful), each reduction of commitments of any type, pursuant to Section 2.04 (Termination or Reduction of Commitments) or otherwise, shall be allocated by the KSURE Covered Facility Agent pro
rata among the KSURE Covered Facility Loan Lenders in accordance with their respective KSURE Covered Facility Loan Commitment Percentages. 

(b) Except as otherwise required under Section 3.07 (Optional Prepayment), Section 3.08 (Mandatory Prepayment) or
ARTICLE 4 (LIBOR And Tax Provisions), each payment or prepayment of principal of the KSURE Covered Facility Loans shall be allocated by the KSURE Covered Facility Agent pro rata among the KSURE Covered Facility Lenders in accordance
with the respective principal amounts of their outstanding KSURE Covered Facility Loans, and each payment of interest on the KSURE Covered Facility Loans shall be allocated by the KSURE Covered Facility Agent pro rata among the KSURE Covered
Facility Lenders in 

  
 17 

 
accordance with the respective interest amounts outstanding on their KSURE Covered Facility Loans. Each payment of the Commitment Fee shall be allocated by the KSURE Covered Facility Agent pro
rata among the KSURE Covered Facility Lenders in accordance with their respective KSURE Covered Facility Loan Commitments. 
 3.13
Sharing of Payments. (a) If any KSURE Covered Facility Lender obtains any payment or other recovery (whether voluntary, involuntary, by application of setoff or otherwise) on account of any KSURE Covered Facility Loan (other than
pursuant to the terms of ARTICLE 4 (LIBOR And Tax Provisions)) in excess of its pro rata share of payments then or therewith obtained by all KSURE Covered Facility Lenders holding KSURE Covered Facility Loans, such KSURE Covered
Facility Lender shall purchase from the other KSURE Covered Facility Lenders (for cash at face value) such participations in KSURE Covered Facility Loans made by them as shall be necessary to cause such purchasing KSURE Covered Facility Lender to
share the excess payment or other recovery ratably with each of them; provided, however, that, if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing KSURE Covered Facility Lender,
the purchase shall be rescinded and each KSURE Covered Facility Lender that has sold a participation to the purchasing KSURE Covered Facility Lender shall repay to the purchasing KSURE Covered Facility Lender the purchase price to the ratable extent
of such recovery together with an amount equal to such selling KSURE Covered Facility Lender’s ratable share (according to the proportion of (x) the amount of such selling KSURE Covered Facility Lender’s required repayment to the
purchasing KSURE Covered Facility Lender to (y) the total amount so recovered from the purchasing KSURE Covered Facility Lender) of any interest or other amount paid or payable by the purchasing KSURE Covered Facility Lender in respect of the
total amount so recovered. The Borrower agrees that any KSURE Covered Facility Lender so purchasing a participation from another KSURE Covered Facility Lender pursuant to this Section 3.13(a) may, to the fullest extent permitted by law,
exercise all its rights of payment (including pursuant to Section 11.14 (Right of Setoff)) with respect to such participation as fully as if such KSURE Covered Facility Loan were the direct creditor of the Borrower in the amount of such
participation. The provisions of this Section 3.13 shall not be construed to apply to any payment by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by any KSURE Covered Facility
Lender as consideration for the assignment or sale of a participation in any of its KSURE Covered Facility Loans. 
 (b) If under any
applicable bankruptcy, insolvency or other similar law, any KSURE Covered Facility Lender receives a secured claim in lieu of a setoff to which this Section 3.13 applies, such KSURE Covered Facility Lender shall, to the extent practicable,
exercise its rights in respect of such secured claim in a manner consistent with the rights of the KSURE Covered Facility Lenders entitled under this Section 3.14 to share in the benefits of any recovery on such secured claim. 

ARTICLE 4 
 LIBOR AND
TAX PROVISIONS 
 4.01 LIBOR Lending Unlawful. (a) In the event that it becomes unlawful or, by reason of a Change in Law,
any KSURE Covered Facility Lender is unable to honor its 

  
 18 

 
obligation to make or maintain KSURE Covered Facility Loans at LIBOR, then such KSURE Covered Facility Lender will promptly notify the Borrower of such event (with a copy to the KSURE Covered
Facility Agent) and (i) such KSURE Covered Facility Lender’s obligation to make or to continue KSURE Covered Facility Loans at LIBOR shall be suspended until such time as such KSURE Covered Facility Lender may again make and maintain KSURE
Covered Facility Loans at LIBOR and (ii) the Borrower shall convert such KSURE Covered Facility Lender’s portion of any outstanding KSURE Covered Facility Loans at LIBOR into loans whose rate basis is determined following the procedures
outlined in Section 4.02 (Inability to Determine Interest Rates) effective as of the date of effectiveness of such Change in Law. 

(b) Notwithstanding any other provision of this Agreement to the contrary, but subject to Section 3.04 (Mandatory Prepayment of
Secured Debt) of the Common Terms Agreement, if such Change in Law shall so mandate, the Borrower shall prepay in full that portion of the KSURE Covered Facility Loan that such KSURE Covered Facility Lender advises is so affected, on or before
such date as shall be mandated by such Change in Law. 
 (c) At the Borrower’s request, each KSURE Covered Facility Lender agrees to
use reasonable efforts, including using reasonable efforts to designate a different lending office for funding or booking its KSURE Covered Facility Loans or to assign its rights and obligations under the Financing Documents to another of its
offices, branches or Affiliates, if, in the reasonable judgment of such KSURE Covered Facility Lender, such designation or assignment (i) would eliminate or avoid such illegality and (ii) would not subject such KSURE Covered Facility
Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such KSURE Covered Facility Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by such KSURE Covered Facility Lender in
connection with any such designation or assignment. 
 4.02 Inability to Determine Interest Rates. If, prior to the commencement of
any Interest Period for a KSURE Covered Facility Loan: 
 (a) the KSURE Covered Facility Agent reasonably determines that adequate and
reasonable means do not exist for ascertaining LIBOR for such Interest Period; or 
 (b) the KSURE Covered Facility Agent is advised by the
Required Lenders that such Required Lenders have reasonably determined that LIBOR for such Interest Period will not adequately and fairly reflect the cost to such KSURE Covered Facility Lenders of making or maintaining their KSURE Covered Facility
Loans for such Interest Period; 
 then the KSURE Covered Facility Agent shall give notice thereof (a “Rate Determination Notice”) to the
Borrower and the KSURE Covered Facility Lenders by telephone or telecopy as promptly as practicable thereafter and, until the KSURE Covered Facility Agent notifies the Borrower and the KSURE Covered Facility Lenders that the circumstances giving
rise to such notice no longer exist (which notice of subsequent change in circumstances shall be given as promptly as practical), (i) during the thirty (30) day period following such Rate Determination Notice (the “Negotiation
Period”) the KSURE Covered Facility Agent and the Borrower shall negotiate in good faith with a view to agreeing upon a substitute interest rate basis for such KSURE Covered Facility Loans which shall reflect the cost to the KSURE Covered
Facility 

  
 19 

 
Lenders of funding the KSURE Covered Facility Loans from alternative sources (a “Substitute Basis”) and if such Substitute Basis is so agreed upon during the Negotiation Period,
such Substitute Basis shall apply in lieu of LIBOR to all Interest Periods commencing on or after the first day of the affected Interest Period and (ii) if a Substitute Basis is not agreed upon during the Negotiation Period, the Borrower may
elect to prepay the KSURE Covered Facility Loans; provided, however, that if the Borrower does not elect so to prepay, each affected KSURE Covered Facility Lender shall determine (and shall certify from time to time in a certificate
delivered by such KSURE Covered Facility Lender to the KSURE Covered Facility Agent setting forth in reasonable detail the basis of the computation of such amount) the rate basis reflecting the cost to such KSURE Covered Facility Lender of funding
the KSURE Covered Facility Loans for the Interest Period commencing on or after the first day of the affected Interest Period, until the circumstances giving rise to such notice have ceased to apply and such rate basis shall be binding upon the
Borrower and such KSURE Covered Facility Lenders and shall apply in lieu of LIBOR for the affected Interest Period. 
 4.03 Increased
Costs. (a) (1) If any Change in Law shall (A) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any KSURE Covered
Facility Lender; (B) subject the KSURE Covered Facility Agent or any KSURE Covered Facility Lender, or its group, to any Taxes (other than (i) Indemnified Taxes, and (ii) Taxes described in clauses (a) through (d) of the
definition of Excluded Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or (C) impose on any KSURE Covered Facility Lender or the London
interbank market any other condition, cost or expense affecting this Agreement or KSURE Covered Facility Loans; and (2) the result of any of the foregoing shall be to increase the cost to such Person of making or maintaining any KSURE Covered
Facility Loan (or of maintaining its obligation to make any such KSURE Covered Facility Loan) to the Borrower or to reduce the amount of any sum received or receivable by such Person hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Person such additional amount or amounts as will compensate such Person for such additional costs incurred or reduction suffered (except to the extent the Borrower is excused from payment pursuant to Section 4.04
(Obligation to Mitigate)). 
 (b) If any KSURE Covered Facility Lender reasonably determines that any Change in Law regarding capital
or liquidity requirements has or would have the effect of reducing the rate of return on such KSURE Covered Facility Lender’s capital or (without duplication) on the capital of such KSURE Covered Facility Lender’s holding company, if any,
as a consequence of this Agreement or any of the KSURE Covered Facility Loans made by such KSURE Covered Facility Lender, to a level below that which such KSURE Covered Facility Lender, or such KSURE Covered Facility Lender’s holding company,
could have achieved but for such Change in Law (taking into consideration such KSURE Covered Facility Lender’s policies and the policies of such KSURE Covered Facility Lender’s holding company with respect to capital adequacy and
liquidity), then from time to time upon notice by such KSURE Covered Facility Lender, the Borrower shall pay within thirty (30) days following the receipt of such notice to such KSURE Covered Facility Lender such additional amount or amounts as
will compensate such KSURE Covered Facility Lender or (without duplication) such KSURE Covered Facility Lender’s holding company in full for any such reduction suffered (except to the extent the Borrower is excused from payment pursuant to
Section 4.04 (Obligation to Mitigate)). In determining such amount, such KSURE Covered Facility Lender may use any method of averaging and attribution that it (in its sole discretion) shall deem appropriate. 

  
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 (c) To claim any amount under this Section 4.03, the KSURE Covered Facility Agent or a KSURE
Covered Facility Lender, as applicable, shall promptly deliver to the Borrower (with a copy to the KSURE Covered Facility Agent) a certificate setting forth in reasonable detail the amount or amounts necessary to compensate the KSURE Covered
Facility Agent or such KSURE Covered Facility Lender or its holding company, as the case may be, under Section 4.03(a) or Section 4.03(b). The Borrower shall pay the KSURE Covered Facility Agent or such KSURE Covered Facility Lender, as
applicable, the amount shown as due on any such certificate within thirty (30) days after receipt thereof. 
 (d) Promptly after the
KSURE Covered Facility Agent or KSURE Covered Facility Lender, as applicable, has determined that it will make a request for increased compensation pursuant to this Section 4.03, such Person shall notify the Borrower thereof (with a copy to the
KSURE Covered Facility Agent). Failure or delay on the part of the KSURE Covered Facility Agent or KSURE Covered Facility Lender to demand compensation pursuant to this Section 4.03 shall not constitute a waiver of such Person’s right to
demand such compensation; provided that the Borrower shall not be required to compensate a Person pursuant to this Section 4.03 for any increased costs or reductions attributable to the failure of such Person to notify Borrower within
two hundred twenty-five (225) days after the Change in Law giving rise to those increased costs or reductions of such Person’s intention to claim compensation for those circumstances; provided further that, if the Change in
Law giving rise to those increased costs or reductions is retroactive, then the two hundred twenty-five (225) day period referred to above shall be extended to include that period of retroactive effect. 

4.04 Obligation to Mitigate. (a) If any KSURE Covered Facility Lender requests compensation under Section 4.03 (Increased
Costs), or if the Borrower is required to pay any additional amount to any KSURE Covered Facility Lender or any Government Authority for the account of any KSURE Covered Facility Lender pursuant to Section 4.06 (Taxes), then, such
KSURE Covered Facility Lender, if requested by the Borrower in writing, shall use commercially reasonable efforts to designate a different lending office for funding or booking its KSURE Covered Facility Loans hereunder or to assign its rights and
obligations under the Financing Documents to another of its offices, branches or Affiliates, if, in the reasonable judgment of such KSURE Covered Facility Lender, such designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 4.03 (Increased Costs) or Section 4.06 (Taxes), as applicable, in the future and (ii) would not subject such KSURE Covered Facility Lender to any material unreimbursed cost or expense and would not
otherwise be disadvantageous to such KSURE Covered Facility Lender in any material respect, contrary to such KSURE Covered Facility Lender’s normal banking practices or violate any applicable Government Rule. The Borrower hereby agrees to pay
all reasonable costs and expenses incurred by any KSURE Covered Facility Lender in connection with any such designation or assignment. 

(b) Subject to Section 4.04(c), if any KSURE Covered Facility Lender requests compensation under Section 4.03 (Increased
Costs), or if the Borrower is required to pay any additional amount to any KSURE Covered Facility Lender or any Government Authority for the account of any KSURE Covered Facility Lender pursuant to Section 4.06

  
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(Taxes) and, in each case, such KSURE Covered Facility Lender has declined or is unable to designate a different lending office or to make an assignment in accordance with
Section 4.04(a), or if any KSURE Covered Facility Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice in writing to such KSURE Covered Facility Lender and the KSURE Covered Facility Agent, request
such KSURE Covered Facility Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 11.04 (Assignments)), all (but not less than all) its interests, rights and obligations
under this Agreement (including all of its KSURE Covered Facility Loans and KSURE Covered Facility Commitments) to an Eligible Assignee that shall assume such obligations (which assignee may be an Eligible Facility Lender, if such Eligible Facility
Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the KSURE Covered Facility Agent, (ii) such KSURE Covered Facility Lender shall have received payment of an amount
equal to all Obligations of the Borrower owing to such KSURE Covered Facility Lender from such assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other Obligations) and
(iii) in the case of any such assignment resulting from a claim for compensation under Section 4.03 (Increased Costs) or payments required to be made pursuant to Section 4.06 (Taxes), such assignment will result in the
elimination or reduction of such compensation or payments. A KSURE Covered Facility Lender shall not be required to make any such assignment and delegation if, as a result of a waiver by such KSURE Covered Facility Lender of its rights under
Sections 4.03 (Increased Costs) or 4.06 (Taxes), as applicable, the circumstances entitling the Borrower to require such assignment and delegation have ceased to apply. If, notwithstanding the satisfaction of each of the conditions set
forth in Sections 4.03 (Increased Costs) or 4.06 (Taxes), a KSURE Covered Facility Lender refuses to be replaced pursuant to this Section 4.04, the Borrower shall not be obligated to pay such KSURE Covered Facility Lender any of
the compensation referred to in this Section 4.04 or any additional amounts incurred or accrued under Sections 4.03 (Increased Costs) or 4.06 (Taxes) from and after the date that such replacement would have occurred but for such
KSURE Covered Facility Lender’s refusal. Nothing in this Section 4.04 shall be deemed to prejudice any rights that the Borrower, the KSURE Covered Facility Agent or any KSURE Covered Facility Lender may have against any KSURE Covered
Facility Lender that is a Defaulting Lender. 
 (c) As a condition of the right of the Borrower to remove any KSURE Covered Facility Lender
pursuant to Section 4.04(b) and (d), the Borrower shall either (i) arrange for the assignment or novation of any Interest Rate Protection Agreements with such KSURE Covered Facility Lender or any of its Affiliates simultaneously with such
removal or (ii) terminate the applicable Interest Rate Protection Agreement and pay any relevant Hedge Termination Value. 
 (d) If
(i) any KSURE Covered Facility Lender (such KSURE Covered Facility Lender, a “Non-Consenting Lender”) has failed to consent to a proposed amendment, waiver, consent or termination which pursuant to the terms of
Section 11.01 (Amendments, Etc.) requires the consent of all of the KSURE Covered Facility Lenders and with respect to which the Supermajority Lenders shall have granted their consent and (ii) no Event of Default then exists, then
the Borrower shall have the right (unless such Non-Consenting Lender grants such consent) to replace all such Non-Consenting Lenders by requiring such Non-Consenting Lenders to assign all their KSURE Covered Facility Loans and all their KSURE
Covered Facility Commitments to 

  
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one or more Eligible Assignees that are Eligible Transferees; provided that (A) all Non-Consenting Lenders must be replaced with one or more Eligible Facility Lenders that grant the
applicable consent, (B) all Obligations of the Borrower owing to such Non-Consenting Lenders being replaced shall be paid in full to such Non-Consenting Lenders concurrently with such assignment and (C) the replacement KSURE Covered
Facility Lenders shall purchase the foregoing by paying to such Non-Consenting Lenders a price equal to the amount of such Obligations. In connection with any such assignment, the Borrower, the KSURE Covered Facility Agent, such Non-Consenting
Lenders and the replacement KSURE Covered Facility Lenders shall otherwise comply with Section 11.04 (Assignments). With the consent of the Required Lenders, the Borrower shall have the right to use new shareholder funding or amounts on
deposit in the Distribution Account that are permitted to be distributed pursuant to Section 5.10(d) (Distribution Account) of the Accounts Agreement to prepay all (and not part only) of the Non-Consenting Lenders’ KSURE Covered
Facility Loans and terminate all the Non-Consenting Lenders’ KSURE Covered Facility Commitments subject, in each case, to payment of all accrued interest, fees, costs or expenses due under the Financing Documents to the relevant KSURE Covered
Facility Lender. 
 4.05 Funding Losses. In the event of (a) the payment of any principal of any KSURE Covered Facility Loan
other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the failure to borrow, continue or prepay any KSURE Covered Facility Loan on the date specified in any notice delivered
pursuant hereto or (c) the assignment of any KSURE Covered Facility Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 4.04 (Obligation to
Mitigate), then, in any such event, the Borrower shall compensate each KSURE Covered Facility Lender for the loss, cost and expense attributable to such event. Such loss, cost or expense to any KSURE Covered Facility Lender shall be deemed to be
the amount determined by the KSURE Covered Facility Agent (based upon the information delivered to it by such KSURE Covered Facility Lender) to be the excess, if any, of (i) the amount of interest which would have accrued on the principal
amount of such KSURE Covered Facility Loan had such event not occurred, at LIBOR that would have been applicable to such KSURE Covered Facility Loan, for the period from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow or continue a KSURE Covered Facility Loan, for the period that would have been the Interest Period for such KSURE Covered Facility Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such KSURE Covered Facility Lender would bid were it to bid, at the commencement of such period, for deposits in Dollars of a comparable amount and period from other banks in the LIBOR
market. To claim any amount under this Section 4.05, the KSURE Covered Facility Agent shall promptly deliver to the Borrower a certificate setting forth in reasonable detail any amount or amounts that the applicable KSURE Covered Facility
Lender is entitled to receive pursuant to this Section 4.05 (including calculations, in reasonable detail, showing how the KSURE Covered Facility Agent computed such amount or amounts), which certificate shall be based upon the information
delivered to the KSURE Covered Facility Agent by such KSURE Covered Facility Lender. The Borrower shall pay to the KSURE Covered Facility Agent for the benefit of the applicable KSURE Covered Facility Lender the amount due and payable and set forth
on any such certificate within thirty (30) days after receipt thereof. 

  
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 4.06 Taxes. For purposes of this Section 4.06, the term “applicable Governmental
Rule” includes FATCA. 
 (a) Payment Free of Taxes. Any and all payments on account of any Obligations shall be made free and
clear of, and without deduction or withholding for, any Taxes, except as required by applicable Government Rule; provided that, if the Withholding Agent is required to deduct or withhold any Taxes from those payments pursuant to applicable
Government Rule, then (i) the applicable Withholding Agent shall make such deductions or withholdings, (ii) the applicable Withholding Agent shall pay the full amount deducted or withheld to the relevant Government Authority in accordance
with applicable Government Rule and (iii) if such Tax is an Indemnified Tax, the sum payable shall be increased as necessary so that after making all required deductions or withholdings (including deductions or withholdings applicable to
additional sums payable under this Section 4.06) each Person entitled thereto receives an amount equal to the sum it would have received had no such deductions or withholdings been made. 

(b) Payment of Other Taxes by the Borrower. In addition, but without duplication of the provisions of Section 4.06(a), the
Borrower shall pay any Other Taxes to the relevant Government Authority in accordance with any applicable Government Rule. 
 (c)
Indemnification by the Borrower. The Borrower shall indemnify KSURE, each KSURE Covered Facility Lender and the KSURE Covered Facility Agent, within thirty (30) days after written demand therefor, for the full amount of any Indemnified
Taxes payable or paid by such Person on or with respect to any payment on account of any Obligation or required to be deducted or withheld from such payment and any Other Taxes (including Indemnified Taxes imposed or asserted on or attributable to
amounts payable under this Section 4.06), and any penalties, interest and reasonable expenses arising from, or with respect to, those Indemnified Taxes or Other Taxes, whether or not those Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Government Authority. To claim any amount under this Section 4.06(c), KSURE, the KSURE Covered Facility Agent or KSURE Covered Facility Lenders (as applicable) must deliver to the Borrower (with a
copy to the KSURE Covered Facility Agent) a certificate in reasonable detail as to the amount of such payment or liability, which certificate shall be conclusive absent manifest error. 

(d) Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower to a Government Authority pursuant to this
Section 4.06, the Borrower shall deliver to the KSURE Covered Facility Agent the original or a certified copy of a receipt issued by such Government Authority evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the KSURE Covered Facility Agent. 
 (e) Status of KSURE and Lenders.
(i) KSURE, and each KSURE Covered Facility Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made hereunder, shall deliver to the Borrower and the KSURE Covered Facility Agent, at the time or
times reasonably requested by the Borrower or the KSURE Covered Facility Agent, such properly completed and executed documentation reasonably requested by the Borrower or the KSURE Covered Facility Agent as will permit such payments

  
 24 

 
to be made without withholding or at a reduced rate of withholding. In addition, KSURE and any KSURE Covered Facility Lender, if reasonably requested by the Borrower or the KSURE Covered Facility
Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the KSURE Covered Facility Agent as will enable the Borrower or the KSURE Covered Facility Agent to determine whether or not KSURE
or such KSURE Covered Facility Lender, as applicable, is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such
documentation (other than such documentation set forth in Section 4.06(e)(ii)(A), (ii)(B) and (ii)(C) and Section 4.06(f) below) shall not be required if in KSURE’s or such KSURE Covered Facility Lender’s reasonable judgment, as
applicable, such completion, execution or submission would subject KSURE or such KSURE Covered Facility Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of KSURE or such KSURE Covered
Facility Lender. 
 (ii) Without limiting the generality of the foregoing: 

A. each KSURE Covered Facility Lender that is a United States Person shall deliver to the KSURE Covered Facility Agent for
transmission to the Borrower, on or prior to the date on which such KSURE Covered Facility Lender becomes a KSURE Covered Facility Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the KSURE
Covered Facility Agent), executed copies of IRS Form W-9 certifying that such KSURE Covered Facility Lender is exempt from U.S. federal backup withholding tax; 

B. KSURE and each KSURE Covered Facility Lender that is not a United States Person (including KSURE, for purposes of this
paragraph) (a “Non-U.S. Lender”) shall, to the extent it is legally entitled to do so, deliver to the KSURE Covered Facility Agent for transmission to the Borrower (but in the case of a Participant, only to the extent
transmission to the Borrower is required under Section 11.04(d) (Assignments)), on or prior to the Closing Date (in the case of each KSURE Covered Facility Lender listed on the signature pages hereof on the Closing Date) or on or prior
to the date of the assignment and acceptance pursuant to which it becomes a KSURE Covered Facility Lender (in the case of each other KSURE Covered Facility Lender), and from time to time thereafter upon the reasonable request of the Borrower or the
KSURE Covered Facility Agent, whichever of the following is applicable: (i) in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under
any Financing Document, executed copies of IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other
applicable payments under any Financing Document, IRS Form W-8BEN-E establishing an exemption 

  
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from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty; (ii) executed copies of IRS Form
W-8ECI; (iii) in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D-1 to the effect that such
Non-U.S. Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign
corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN-E; (iv) executed copies of IRS Form W-8EXP; or (v) to the extent a
Non-U.S. Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, IRS Form W-8EXP, a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-2 or Exhibit
D-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable, provided that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the
portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit D-4 on behalf of each such direct and indirect partner; 

C. each KSURE Covered Facility Lender, or KSURE, as the case may be, required to deliver any forms, certificates or other
evidence with respect to United States federal income tax withholding matters pursuant to this Section 4.06(e) hereby agrees, from time to time after the initial delivery by such KSURE Covered Facility Lenders or KSURE, as the case may be, of
such forms, certificates or other evidence, whenever a lapse in time or change in circumstances renders such forms, certificates or other evidence obsolete or inaccurate in any material respect, that such KSURE Covered Facility Lenders or KSURE, as
the case may be, shall, upon reasonable request by the Borrower or the KSURE Covered Facility Agent, (i) promptly deliver to the KSURE Covered Facility Agent for transmission to the Borrower (but in the case of a Participant, only to the extent
transmission to the Borrower is required under Section 11.04(d) (Assignments)) new copies of the applicable forms, certificates or other evidence, properly completed and duly executed by such KSURE Covered Facility Lender or KSURE, as
the case may be, and such other documentation required under the Code and reasonably requested in writing by the Borrower or the KSURE Covered Facility Agent to confirm or establish that such KSURE Covered Facility Lender or KSURE, as the case may
be, is not subject to (or is subject to reduced) deduction or withholding of United States federal income tax with respect to payments to such KSURE Covered Facility Lender or KSURE, as the case may be, under this Agreement, or (ii) notify the
KSURE Covered Facility Agent and the Borrower (but in the case of a Participant, only to the extent transmission to the Borrower is required under Section 11.04(d) 

  
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(Assignments)) of its inability to deliver any such forms, certificates or other evidence. This Section 4.06(e) applies without duplication of the provisions of Section 4.06(f).

 (f) FATCA. If a payment made to KSURE or a KSURE Covered Facility Lender under any Financing Document would be subject to U.S.
federal withholding tax imposed by FATCA if KSURE or such KSURE Covered Facility Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as
applicable), KSURE or such KSURE Covered Facility Lender shall deliver to the KSURE Covered Facility Agent at the time or times prescribed by Government Rule and at such time or times reasonably requested by the Borrower or the KSURE Covered
Facility Agent such documentation prescribed by applicable Government Rule (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the KSURE Covered Facility
Agent as may be necessary for the Borrower and the KSURE Covered Facility Agent to comply with their obligations under FATCA and to determine that KSURE or such KSURE Covered Facility Lender has complied with KSURE’s or such KSURE Covered
Facility Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this Section 4.06(f), “FATCA” shall include any amendments made to FATCA after the date of this
Agreement. 
 (g) FATCA Treatment. For purposes of determining withholding Taxes imposed under FATCA, from and after the Closing
Date, the Borrower and the KSURE Covered Facility Agent shall treat (and the KSURE Covered Facility Lenders hereby authorize the KSURE Covered Facility Agent to treat) this Agreement and the KSURE Covered Facility Loans as not qualifying as
“grandfathered obligations” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 
 (h) Refunds. If
KSURE, the KSURE Covered Facility Agent or any KSURE Covered Facility Lender determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has
paid additional amounts pursuant to this Section 4.06, it shall pay to the Borrower an amount equal to such refund, net of all out-of-pocket expenses (including Taxes) incurred by KSURE, the KSURE Covered Facility Agent or such KSURE Covered
Facility Lender, as the case may be, and without interest (other than interest paid by the relevant Government Authority with respect to such refund), provided that, (i) the Borrower, upon the request of KSURE, the KSURE Covered Facility
Agent or such KSURE Covered Facility Lender (as the case may be), shall repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Government Authority) to KSURE, the KSURE Covered Facility
Agent or such KSURE Covered Facility Lender in the event KSURE, the KSURE Covered Facility Agent or such KSURE Covered Facility Lender is required to repay such refund to such Government Authority, and (ii) in no event will KSURE, such KSURE
Covered Facility Agent or KSURE Covered Facility Lender be required to pay any amount to the Borrower pursuant to this Section 4.06(h), the payment of which would place KSURE, such KSURE Covered Facility Agent or KSURE Covered Facility Lender
in a less favorable net after-Tax position than KSURE, such KSURE Covered Facility Agent or KSURE Covered Facility Lender would have been in if the Tax subject to indemnification and giving rise to such refund had not been

  
 27 

 
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require
KSURE, the KSURE Covered Facility Agent or any KSURE Covered Facility Lender to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person. 

ARTICLE 5 

REPRESENTATIONS AND WARRANTIES 

5.01 Incorporation of Representations and Warranties in the Common Terms Agreement. The Borrower makes to each of the KSURE Covered
Facility Lenders, the KSURE Covered Facility Agent and the Common Security Trustee the representations and warranties set forth in Section 4 (Representations and Warranties) of the Common Terms Agreement on the dates set forth therein.

 ARTICLE 6 

CONDITIONS PRECEDENT 

6.01 Conditions to Closing Date. The occurrence of the Closing Date and the effectiveness of the KSURE Covered Facility Commitments are
subject to the satisfaction of each of the conditions precedent specified in Schedule 5.1 (Conditions to Closing Date) to the Common Terms Agreement, in each case to the satisfaction of each of the KSURE Covered Facility Lenders, unless, in
each case, waived by each of the KSURE Covered Facility Lenders. 
 6.02 Conditions to KSURE Covered Facility Initial Advance. In
addition to the conditions set forth in Section 6.04 (Conditions to Each KSURE Covered Facility Loan Borrowing), the obligation of each KSURE Covered Facility Lender to make available its KSURE Covered Facility Initial Advance is subject
to the satisfaction of each of the following conditions precedent, in each case to the satisfaction of each of the KSURE Covered Facility Lenders, unless, in each case, waived by each of the KSURE Covered Facility Lenders: 

(a) the conditions precedent specified in Schedule 5.2 (Conditions to the Initial Advance) to the Common Terms Agreement; and 

(b) the KSURE Covered Facility Agent shall have received at least four (4) Business Days prior to the date of the KSURE Covered Facility
Initial Advance an original copy of the KSURE Acceptance Letter, which shall be in full force and effect and to the satisfaction of the KSURE Facility Agent. 

6.03 Conditions to Train 6 Initial Advance. In addition to the conditions set forth in Section 6.04 (Conditions to Each KSURE
Covered Facility Loan Borrowing), the obligation of each KSURE Covered Facility Lender to make available its Train 6 Initial Advance is subject to the satisfaction of the conditions precedent specified in Schedule 5.3 (Conditions to Train 6
Initial Advance) of the Common Terms Agreement, in each case to the satisfaction of each of the KSURE Covered Facility Lenders, unless, in each case, waived by each of the KSURE Covered Facility Lenders. 

  
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 6.04 Conditions to Each KSURE Covered Facility Loan Borrowing. The obligation of each
KSURE Covered Facility Lender to make any of its KSURE Covered Facility Loans hereunder is subject to: 
 (a) the satisfaction of each of
the conditions precedent specified in Schedule 5.4 (Conditions to Each Advance) to the Common Terms Agreement, in each case to the satisfaction of: 

(i) in the case of the KSURE Covered Facility Initial Advance, each of the KSURE Covered Facility Lenders unless, in each case,
waived by each of the KSURE Covered Facility Lenders; 
 (ii) in the case of the Train 6 Initial Advance, each of the KSURE
Covered Facility Lenders unless, in each case, waived by each of the KSURE Covered Facility Lenders; 
 (iii) in the case of
all Advances other than the KSURE Covered Facility Initial Advance and the Train 6 Initial Advance, the Majority Aggregate Secured Credit Facilities Debt Participants, unless waived by the Majority Aggregate Secured Credit Facilities Debt
Participants; and 
 (b) KSURE shall have received that portion of the KSURE Premium due as of the date of such Advance as described in
Section 3.11(b) (Fees) or arrangements have been made to pay such portion out of the proceeds of the Advance. 
 ARTICLE 7

 COVENANTS 
 7.01
Incorporation of Common Terms Agreement. The Borrower agrees with each KSURE Covered Facility Lender, the KSURE Covered Facility Agent and the Common Security Trustee that it will perform or observe (as applicable) the obligations set forth
in Section 6 (Affirmative Covenants), Section 7 (Negative Covenants) and Section 8 (Reporting Requirements) of the Common Terms Agreement in accordance with the terms thereof. 

7.02 Exhibit E Updates. The Borrower agrees to update Exhibit E and to provide such updated Exhibit to the KSURE Covered
Facility Agent (i) within ten (10) Business Days following the incurrence of any Replacement Debt or any prepayment of all or any portion of any KSURE Covered Facility Loan and (ii) on the date on which any Additional Advance occurs.

 ARTICLE 8 
 DEFAULT
AND ENFORCEMENT 
 8.01 Events of Default under the Common Terms Agreement. The Events of Default set forth in Section 9
(Events of Default for Secured Debt) of the Common Terms Agreement shall constitute Events of Default under this Agreement, subject to all of the provisions of such Sections in the Common Terms Agreement. 

  
 29 

 8.02 Claims under the KSURE Insurance Policy. Unless otherwise instructed in writing by
the Required Lenders, the KSURE Covered Facility Agent shall, by written notice to KSURE, issue demand notices under the KSURE Insurance Policy if it is entitled to do so at such time pursuant to the KSURE Insurance Policy and exercise any and all
rights and remedies available under the KSURE Insurance Policy. 
 8.03 Acceleration Upon Bankruptcy. If any Event of Default
described in Section 9.7 (Bankruptcy; Insolvency) of the Common Terms Agreement occurs with respect to the Borrower, all outstanding KSURE Covered Facility Commitments, if any, shall automatically terminate and the outstanding principal
amount of the outstanding KSURE Covered Facility Loans and all other Obligations shall automatically be and become immediately due and payable, in each case without notice, demand or further act of the KSURE Covered Facility Agent, KSURE, the Common
Security Trustee or any other KSURE Covered Facility Secured Party. 
 8.04 Acceleration Upon Other Event of Default. (a) If any
Event of Default occurs for any reason (except the occurrence of any Event of Default described in Section 9.7 (Bankruptcy; Insolvency) of the Common Terms Agreement with respect to the Borrower, for which provision is made in
Section 8.03 (Acceleration Upon Bankruptcy)), whether voluntary or involuntary, and is continuing (after giving effect to any cure of the applicable Event of Default), the KSURE Covered Facility Agent may, or upon the direction of the
Required Lenders shall, by written notice to the Borrower declare all or any portion of the outstanding principal amount of the KSURE Covered Facility Loans and other Obligations to be due and payable or all the KSURE Covered Facility Commitments
(if not theretofore terminated) to be terminated, whereupon the full unpaid amount of such KSURE Covered Facility Loans and other Obligations that have been declared due and payable shall be and become immediately due and payable, without further
notice, demand or presentment, as the case may be, and such outstanding KSURE Covered Facility Commitments shall terminate. 
 (b) Any
declaration made pursuant to this Section 8.04 may, should the Required Lenders in their sole and absolute discretion so elect, be rescinded by written notice to the Borrower at any time after the principal of the KSURE Covered Facility Loans
has become due and payable, but before any judgment or decree for the payment of the monies so due, or any part thereof, has been entered; provided that, no such rescission or annulment shall extend to or affect any subsequent Event of
Default or impair any right consequent thereon. 
 8.05 Action Upon Event of Default. Subject to the terms of the Intercreditor
Agreement, if any Event of Default occurs for any reason, whether voluntary or involuntary, and is continuing (after giving effect to any cure of the applicable Event of Default), the KSURE Covered Facility Agent may, or upon the direction of the
Required Lenders shall, by written notice to the Borrower of its intention to exercise any remedies hereunder, under the other Financing Documents or at law or in equity, and without further notice of default, presentment or demand for payment,
protest or notice of non-payment or dishonor, or other notices or demands of any kind, all such notices and demands being waived by the Borrower, exercise any or all of the following rights and remedies, in any combination or order that the KSURE
Covered Facility 

  
 30 

 
Agent or the Required Lenders may elect, in addition to such other rights or remedies as the KSURE Covered Facility Agent and the KSURE Covered Facility Lenders may have hereunder, under the
other Financing Documents or at law or in equity: 
 (a) Without any obligation to do so, make disbursements or KSURE Covered Facility Loans
to or on behalf of the Borrower to cure any Event of Default hereunder and to cure any default and render any performance under any Material Project Documents (or any other contract to which the Borrower is a party) as the Required Lenders in their
sole discretion may consider necessary or appropriate, whether to preserve and protect the Collateral or the KSURE Covered Facility Lenders’ interests therein or for any other reason, and all sums so expended, together with interest on such
total amount at the Default Rate, shall be repaid by the Borrower to the KSURE Covered Facility Agent on demand and shall be secured by the Financing Documents, notwithstanding that such expenditures may, together with amounts advanced under this
Agreement, exceed the amount of the KSURE Covered Facility Commitments; 
 (b) Apply or execute upon any amounts on deposit in any Account
or any other monies of the Borrower on deposit with the KSURE Covered Facility Agent, any KSURE Covered Facility Lender or the Accounts Bank in the manner provided in the UCC and other relevant statutes and decisions and interpretations thereunder
with respect to cash collateral; and 
 (c) Enter into possession of the Project and perform or cause to be performed any and all work and
labor necessary to complete construction of the Project substantially according to the EPC Contracts or to operate and maintain the Project, and all sums expended by the KSURE Covered Facility Agent in so doing, together with interest on such total
amount at the Default Rate, shall be repaid by the Borrower to the KSURE Covered Facility Agent upon demand and shall be secured by the Financing Documents, notwithstanding that such expenditures may, together with amounts advanced under this
Agreement, exceed the KSURE Covered Facility Commitments. 
 8.06 Application of Proceeds. Subject to the terms of the Intercreditor
Agreement, any moneys received by the KSURE Covered Facility Agent from the Common Security Trustee after the occurrence and during the continuance of an Event of Default and the period during which remedies have been initiated shall be applied in
full or in part by the KSURE Covered Facility Agent against the Obligations in the following order of priority (but without prejudice to the right of the KSURE Covered Facility Lenders, subject to the terms of the Intercreditor Agreement, to recover
any shortfall from the Borrower): 
 (a) first, to payment of that portion of the Obligations constituting fees, costs, expenses (and
interest owing thereon (if any)) and any other amounts (including fees, costs and expenses of counsel) payable to the KSURE Covered Facility Agent, the Common Security Trustee, the Accounts Bank, or the Intercreditor Agent in their respective
capacities as such; 
 (b) second, to payment of that portion of the Obligations constituting fees, costs, expenses (and interest
owing thereon (if any)) and any other amounts (including fees, costs and expenses of counsel and amounts payable under ARTICLE 4 (LIBOR and Tax Provisions) payable to the KSURE Covered Facility Lenders, ratably in proportion to the amounts
described in this clause second payable to them, as certified by the KSURE Covered Facility Agent; 

  
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 (c) third, to payment of that portion of the Obligations constituting accrued and unpaid
interest (including default interest) with respect to the KSURE Covered Facility Loans payable to the KSURE Covered Facility Lenders, ratably in proportion to the respective amounts described in this clause third payable to them, as certified by the
KSURE Covered Facility Agent; 
 (d) fourth, to that principal amount of the KSURE Covered Facility Loans payable to the KSURE
Covered Facility Lenders (in inverse order of maturity), ratably among the KSURE Covered Facility Lenders in proportion to the respective amounts described in this clause fourth held by them, as certified by the KSURE Covered Facility Agent; and

 (e) fifth, the balance, if any, after all of the Obligations have been paid in full, to the Borrower or as otherwise required by
applicable Government Rule. 
 ARTICLE 9 

THE KSURE COVERED FACILITY AGENT 

9.01 Appointment and Authority. (a) Each of the KSURE Covered Facility Lenders hereby appoints, designates and authorizes The
Korea Development Bank, New York Branch as its KSURE Covered Facility Agent under and for purposes of each Financing Document to which the KSURE Covered Facility Agent is a party, and in its capacity as the KSURE Covered Facility Agent, to act on
its behalf as Secured Debt Holder Group Representative and the Designated Voting Party (as defined in the Intercreditor Agreement) for the KSURE Covered Facility Lenders. The Korea Development Bank, New York Branch hereby accepts this appointment
and agrees to act as the KSURE Covered Facility Agent for the KSURE Covered Facility Lenders in accordance with the terms of this Agreement. Each of the KSURE Covered Facility Lenders appoints and authorizes the KSURE Covered Facility Agent to act
on behalf of such KSURE Covered Facility Lender under each Financing Document to which it is a party and in the absence of other written instructions from the Required Lenders received from time to time by the KSURE Covered Facility Agent (with
respect to which the KSURE Covered Facility Agent agrees that it will comply, except as otherwise provided in this Section 9.01 or as otherwise advised by counsel, and subject in all cases to the terms of the Intercreditor Agreement), to
exercise such powers hereunder and thereunder as are specifically delegated to or required of the KSURE Covered Facility Agent by the terms hereof and thereof, together with such powers as may be reasonably incidental thereto. Notwithstanding any
provision to the contrary contained elsewhere in any Financing Document, the KSURE Covered Facility Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the KSURE Covered Facility Agent have or be
deemed to have any fiduciary relationship with any KSURE Covered Facility Lender or other KSURE Covered Facility Secured Party, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into any
Financing Document or otherwise exist against the KSURE Covered Facility Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement with reference to the KSURE Covered Facility Agent is
not intended to connote any 

  
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fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Government Rule. Instead, such term is used merely as a matter of market custom, and is
intended to create or reflect only an administrative relationship between independent contracting parties. 
 (b) The provisions of this
ARTICLE 9 are solely for the benefit of the KSURE Covered Facility Agent and the KSURE Covered Facility Lenders, and neither the Borrower nor any other Person shall have rights as a third party beneficiary of any of such provisions other than the
Borrower’s rights under Sections 9.07(a) and (b) (Resignation or Removal of KSURE Covered Facility Agent) and 9.12(b) (KSURE Insurance Policy). 

9.02 Rights as a Lender or Secured Hedging Party. Each Person serving as the KSURE Covered Facility Agent hereunder or under any other
Financing Document shall have the same rights and powers in its capacity as a Commercial Bank Lender, KEXIM Covered Facility Lender, KSURE Covered Facility Lender, Secured Hedging Party, or Gas Hedge Provider, as the case may be, as any other
Commercial Bank Lender, KEXIM Covered Facility Lender, KSURE Covered Facility Lender, Secured Hedging Party, or Gas Hedge Provider, as the case may be, and may exercise the same as though it were not the KSURE Covered Facility Agent. Each such
Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or Affiliates of the Borrower as if such Person were
not the KSURE Covered Facility Agent hereunder and without any duty to account therefor to the KSURE Covered Facility Lenders. 
 9.03
Exculpatory Provisions. (a) The KSURE Covered Facility Agent shall not have any duties or obligations except those expressly set forth herein and in the other Financing Documents and the KSURE Insurance; provided that
notwithstanding anything to the contrary in this Agreement or any other Financing Document, in the event of any conflict between the duties, responsibilities and obligations of the KSURE Covered Facility Agent under this Agreement and its duties,
responsibilities and obligations under the KSURE Insurance, the duties, responsibilities and obligations of the KSURE Covered Facility Agent under the KSURE Insurance (subject to Section 9.12 (KSURE Insurance Policy)) shall prevail.
Without limiting the generality of the foregoing, the KSURE Covered Facility Agent shall not: 
 (i) be subject to any
fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing; 

(ii) have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by the other Financing Documents and the KSURE Insurance that the KSURE Covered Facility Agent is required to exercise as directed in writing by KSURE or the Required Lenders (or such other number or
percentage of the KSURE Covered Facility Lenders as shall be expressly provided for herein or in the other Financing Documents); provided that the KSURE Covered Facility Agent shall not be required to take any action that, in its opinion or
the opinion of its counsel, may expose the KSURE Covered Facility Agent to liability or that is contrary to any Financing Document or applicable Government Rule; or 

(iii) except as expressly set forth herein and in the other Financing Documents and the KSURE Insurance, have any duty to
disclose, nor shall the KSURE Covered Facility Agent be liable for any failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the KSURE Covered Facility
Agent or any of its Affiliates in any capacity. 

  
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 (b) The KSURE Covered Facility Agent shall not be liable for any action taken or not taken by it
(i) with the prior written consent or at the request of KSURE or the Required Lenders (or such other number or percentage of the KSURE Covered Facility Lenders as may be necessary, or as the KSURE Covered Facility Agent may believe in good
faith to be necessary, under the circumstances as provided in Section 11.01 (Amendments, Etc.)) or (ii) in the absence of its own gross negligence or willful misconduct. The KSURE Covered Facility Agent shall be deemed not to have
knowledge of any Default or Event of Default unless and until written notice describing such Default or Event of Default is given to the KSURE Covered Facility Agent in writing by the Borrower, KSURE or a KSURE Covered Facility Lender. 

(c) The KSURE Covered Facility Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or any other Financing Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence or continuance of any Default or Event of Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Financing Document or any other agreement, instrument or document, or the perfection or priority of any Lien or security interest created or purported to be created by any Security Document,
or (v) the satisfaction of any condition set forth in ARTICLE 6 (Conditions Precedent) or elsewhere herein, other than to confirm receipt of any items expressly required to be delivered to the KSURE Covered Facility Agent. 

9.04 Reliance by KSURE Covered Facility Agent. The KSURE Covered Facility Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, internet or intranet website posting or other distribution) believed by it to be genuine and
to have been signed, sent or otherwise authenticated by the proper Person. The KSURE Covered Facility Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not
incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a KSURE Covered Facility Loan that by its terms must be fulfilled to the satisfaction of any KSURE Covered Facility Lender, the KSURE
Covered Facility Agent may presume that such condition is satisfactory to such KSURE Covered Facility Lender unless the KSURE Covered Facility Agent has received notice to the contrary from such KSURE Covered Facility Lender prior to the making of
such KSURE Covered Facility Loan. The KSURE Covered Facility Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or experts. 

  
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 9.05 Delegation of Duties. The KSURE Covered Facility Agent may perform any and all of its
duties and exercise any and all its rights and powers hereunder or under any other Financing Document by or through any one or more sub-agents appointed by the KSURE Covered Facility Agent. The KSURE Covered Facility Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this ARTICLE 9 shall apply to any such sub-agent and to the Related Parties of the KSURE Covered
Facility Agent, and shall apply to all of their respective activities in connection with their acting as or for the KSURE Covered Facility Agent. 

9.06 Indemnification by the KSURE Covered Facility Lenders. Without limiting the obligations of the Borrower hereunder, each KSURE
Covered Facility Lender agrees to indemnify the KSURE Covered Facility Agent and Related Parties thereof ratably in accordance with all its KSURE Covered Facility Commitments for any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, which may at any time be imposed on, incurred by or asserted against the KSURE Covered Facility Agent or any of its Related Parties in any way relating to
or arising out of this Agreement, the other Financing Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or the enforcement of any of the terms hereof or thereof or of any
such other documents; provided, however, that no KSURE Covered Facility Lender shall be liable for any of the foregoing to the extent they arise solely from the KSURE Covered Facility Agent’s gross negligence or willful misconduct
as determined by a final non-appealable judgment of a court of competent jurisdiction. The KSURE Covered Facility Agent shall be fully justified in taking, refusing to take or continuing to take any action hereunder unless it shall first be
indemnified to its satisfaction by the KSURE Covered Facility Lenders against any and all liability and expense which may be incurred by it by reason of taking, refusing to take or continuing to take any such action. Without limitation of the
foregoing, each KSURE Covered Facility Lender agrees to reimburse, ratably in accordance with all its KSURE Covered Facility Commitments, the KSURE Covered Facility Agent promptly upon demand for any out-of-pocket expenses (including counsel fees)
incurred by the KSURE Covered Facility Agent in connection with the preparation, execution, administration, amendment, waiver, modification or enforcement of, or legal advice in respect of rights or responsibilities under, the Transaction Documents,
to the extent that the KSURE Covered Facility Agent is not reimbursed promptly for such expenses by Borrower. The obligation of the KSURE Covered Facility Lenders to make payments pursuant to this Section 9.06 is several and not joint, and the
same shall survive the payment in full of the Obligations and the termination of this Agreement. 
 9.07 Resignation or Removal of KSURE
Covered Facility Agent. (a) The KSURE Covered Facility Agent may resign from the performance of all its functions and duties hereunder and under the other Financing Documents and the KSURE Insurance at any time by giving thirty
(30) days’ prior written notice to the Borrower, the KSURE Covered Facility Lenders and KSURE. The KSURE Covered Facility Agent may be removed at any time (i) by the Required Lenders for such Person’s gross negligence or
willful misconduct or (ii) by the Borrower, with the consent of the Required Lenders and KSURE, for such Person’s gross negligence or willful misconduct. In the event The Korea Development Bank, New York Branch is no longer the KSURE
Covered Facility Agent, any successor KSURE Covered Facility Agent 

  
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may be removed at any time with cause by the Required Lenders and KSURE. Any such resignation or removal shall take effect upon the appointment of a successor KSURE Covered Facility Agent, in
accordance with this Section 9.07. 
 (b) Upon any notice of resignation by the KSURE Covered Facility Agent or upon the removal of the
KSURE Covered Facility Agent pursuant to Section 9.07(a), the Required Lenders shall, with the consent of KSURE (such consent not to be unreasonably conditioned, delayed or withheld) appoint a successor KSURE Covered Facility Agent, hereunder
and under each other Financing Document to which the KSURE Covered Facility Agent is a party, such successor KSURE Covered Facility Agent to be a commercial bank having a combined capital and surplus of at least one billion Dollars ($1,000,000,000);
provided that, if no Default or Event of Default shall then be continuing, appointment of a successor KSURE Covered Facility Agent shall also be acceptable to the Borrower (such acceptance not to be unreasonably withheld, conditioned or
delayed). The fees payable by the Borrower to a successor KSURE Covered Facility Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. 

(c) If no successor KSURE Covered Facility Agent has been appointed by the Required Lenders within thirty (30) days after the date such
notice of resignation was given by such resigning KSURE Covered Facility Agent, or the Required Lenders elected to remove such Person, any KSURE Covered Facility Secured Party may petition any court of competent jurisdiction for the appointment of a
successor KSURE Covered Facility Agent. Such court may thereupon, after such notice, if any, as it may deem proper, appoint a successor KSURE Covered Facility Agent, who shall serve as KSURE Covered Facility Agent hereunder and under each other
Financing Document to which it is a party until such time, if any, as the Required Lenders appoint a successor KSURE Covered Facility Agent, as provided above. 

(d) Upon the acceptance of a successor’s appointment as KSURE Covered Facility Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or removed) KSURE Covered Facility Agent, and the retiring (or removed) KSURE Covered Facility Agent shall be discharged from all of its duties and obligations
hereunder or under the other Financing Documents. After the retirement or removal of the KSURE Covered Facility Agent hereunder and under the other Financing Documents, the provisions of this ARTICLE 9 and Section 11.08 (Indemnification by
the Borrower) shall continue in effect for the benefit of such retiring (or removed) Person, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Person was
acting in its capacity as KSURE Covered Facility Agent. 
 9.08 No Amendment to Duties of KSURE Covered Facility Agent Without
Consent. The KSURE Covered Facility Agent shall not be bound by any waiver, amendment, supplement or modification of this Agreement or any other Financing Document, including the KSURE Insurance, that affects its rights or duties hereunder or
thereunder unless such KSURE Covered Facility Agent shall have given its prior written consent, in its capacity as KSURE Covered Facility Agent thereto. 

  
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 9.09 Non-Reliance on KSURE Covered Facility Agent. Each of the KSURE Covered Facility
Lenders acknowledges that it has, independently and without reliance upon the KSURE Covered Facility Agent, any other KSURE Covered Facility Lender or any of their Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement and make its extensions of credit. Each of the KSURE Covered Facility Lenders also acknowledges that it will, independently and without reliance upon the KSURE
Covered Facility Agent, any other KSURE Covered Facility Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any other Financing Document or any related agreement or any document furnished hereunder or thereunder. 

9.10 No Mandated Lead Arranger, Manager Duties. Anything herein to the contrary notwithstanding, no Mandated Lead Arranger or Manager
shall have any powers, duties or responsibilities under this Agreement, except in its capacity, as applicable, as the KSURE Covered Facility Agent or KSURE Covered Facility Lender hereunder. 

9.11 Certain Obligations. The KSURE Covered Facility Agent shall: 

(a) give prompt notice to each KSURE Covered Facility Lender and KSURE of receipt of each notice or request required or permitted to be given
to the KSURE Covered Facility Agent by the Borrower pursuant to the terms of this Agreement or any other Financing Document (unless concurrently delivered to the KSURE Covered Facility Lenders and KSURE by the Borrower). The KSURE Covered Facility
Agent will distribute to each KSURE Covered Facility Lender and KSURE each document or instrument (including each document or instrument delivered by the Borrower to the KSURE Covered Facility Agent pursuant to ARTICLE 5 (Representations and
Warranties), ARTICLE 6 (Conditions Precedent) and ARTICLE 7 (Covenants)) received for the account of the KSURE Covered Facility Agent and copies of all other communications received by the KSURE Covered Facility Agent from the
Borrower for distribution to the KSURE Covered Facility Lenders by the KSURE Covered Facility Agent in accordance with the terms of this Agreement or any other Financing Document. 

(b) except as otherwise expressly provided in any other Financing Document, perform its duties in accordance with any instructions given to it
by (i) KSURE or (ii) the KSURE Covered Facility Lenders or the Required Lenders, as the case may be, acting as instructed or approved by KSURE in writing, which instructions shall be binding on the KSURE Covered Facility Agent; 

(c) if so instructed by (1) KSURE or (2) the KSURE Covered Facility Lenders or the Required Lenders, as the case may be, acting as
instructed or approved by KSURE in writing, refrain from exercising any right, power, authority or discretion vested in it; and 
 (d)
without additional charge or compensation, perform such calculations and furnish to KSURE and the KSURE Covered Facility Lenders information relating to the principal amount outstanding, the KSURE Premium due to KSURE, interest due, and such other
matters as the KSURE Covered Facility Lenders or KSURE may reasonably request. 

  
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 9.12 KSURE Insurance Policy. 

(a) The KSURE Covered Facility Agent hereby declares that it holds and shall hold (i) the benefit of all representations, covenants,
guarantees, indemnities and other contractual provisions given in favor of the KSURE Covered Facility Agent (other than any such benefits given to the KSURE Covered Facility Agent solely for its own benefit) by or pursuant to the KSURE Insurance
Policy and (ii) any amount paid to or recovered by the KSURE Covered Facility Agent in respect of the enforcement of the benefits referred to in clause (i) above for the benefit of itself and the other KSURE Covered Facility Lenders. 

(b) Neither the KSURE Covered Facility Agent nor any KSURE Covered Facility Lender shall consent to any amendment, modification or supplement
to the KSURE Insurance Policy without the prior written consent of KSURE and the Borrower (which shall not be unreasonably withheld or delayed), provided, however, that no such Borrower consent shall be required for any such amendment,
modification or supplement which becomes effective either by operation of law or through a modification of a KSURE rule or policy of general application, as the case may be. 

(c) The KSURE Covered Facility Agent shall not consent to the assignment or transfer of KSURE’s rights or obligations pursuant to the
KSURE Insurance Policy without the consent of each KSURE Covered Facility Lender. 
 (d) Each of the KSURE Covered Facility Lenders hereby
acknowledges that it has full knowledge of all terms and conditions of the KSURE Insurance (including the General Terms and Conditions and the Special Terms and Conditions) and agrees to comply with all the provisions thereof. 

9.13 Voting. 
 (a)
Notwithstanding anything to the contrary contained in this Agreement, all votes to be taken by the KSURE Covered Facility Agent or any KSURE Covered Facility Lenders for the purpose of any determination under this Agreement or any Intercreditor Vote
shall require the prior written consent of KSURE, the refusal of which shall be deemed to be a unanimous vote against the relevant action, decision or other matter, and the KSURE Covered Facility Agent shall cast its votes accordingly. 

(b) As between KSURE, the KSURE Covered Facility Agent and the KSURE Covered Facility Lenders, KSURE shall be entitled to exercise all of the
voting rights held by the KSURE Covered Facility Lenders under the Financing Documents. 

  
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 9.14 KSURE Override. 

(a) Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement shall oblige any KSURE Covered Facility Lender to
act (or omit to act) in a manner that is inconsistent with any requirement of KSURE under or in connection with the KSURE Insurance Policy and, in particular: 

(i) the KSURE Covered Facility Agent shall be authorized to take all such actions as it may deem necessary to ensure that all
requirements of KSURE under or in connection with the KSURE Insurance Policy are complied with; and 
 (ii) the KSURE Covered
Facility Agent shall not be obliged to do anything if, in its opinion, to do so could result in a breach of any requirements of KSURE under or in connection with the KSURE Insurance Policy or affect the validity of the KSURE Insurance Policy. 

(b) Nothing in this Section 9.14 shall affect the rights or obligations of the Borrower. 

ARTICLE 10 
 SUBROGATION
AND REIMBURSEMENT 
 10.01 KSURE Insurance Policy. In addition to any right of indemnification or subrogation KSURE may have at
law, in equity or otherwise, the Borrower and the KSURE Covered Facility Agent (on behalf of the KSURE Covered Facility Lenders) acknowledge that, if KSURE is required to make any payment pursuant to the KSURE Insurance Policy (each such payment
being a “KSURE Insurance Policy Payment”), KSURE shall be subrogated to all of the rights and remedies of any KSURE Covered Facility Lender receiving payment under the KSURE Insurance Policy in respect thereof under any Financing
Document to the extent of any such KSURE Insurance Policy Payment, and that such rights of subrogation and the Borrower’s obligations hereunder to KSURE as subrogee shall, without double counting (including to the extent recoverable pursuant to
any “Assignment” as defined in the KSURE Insurance Policy), constitute unpaid Obligations for the purposes of the Financing Document. In furtherance of the foregoing, the Borrower shall, without double counting (including to the extent
recoverable pursuant to any “Assignment” as defined in the KSURE Insurance Policy) and on demand by KSURE or as KSURE may otherwise direct, reimburse KSURE for any KSURE Insurance Policy Payment made by KSURE from time to time and pay to
KSURE in accordance with the terms of this Agreement an amount equal to any KSURE Insurance Policy Payment plus interest at the Default Rate for the period from the date such KSURE Insurance Policy Payment is made by KSURE until the same is
reimbursed by the Borrower, upon demand by KSURE from time to time. 
 10.02 Obligations Unconditional. The obligations of the
Borrower to reimburse KSURE and to pay the amount of interest required pursuant to Section 10.01 (KSURE Insurance Policy) are irrevocable and unconditional without regard to any circumstance whatsoever and shall not require any notice to
the Borrower or any other Person. 
 ARTICLE 11 

MISCELLANEOUS PROVISIONS 

11.01 Amendments, Etc. (a) Subject to the terms of the Intercreditor Agreement, no consent, amendment, waiver or termination of
any provision of this Agreement shall be 

  
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effective unless in writing signed by the Borrower and the Required Lenders, and each such amendment, waiver, termination or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided that, without the consent of each KSURE Covered Facility Lender or, in connection with clause (vi)(x)(B) below, the Supermajority Lenders (in each case, other than any KSURE Covered Facility Lender
that is a Loan Party, a Sponsor or an Affiliate or Subsidiary thereof), no such amendment, waiver, termination or consent shall: 

(i) extend or increase any KSURE Covered Facility Commitment; 

(ii) postpone any date scheduled for any payment of principal, fees or interest (as applicable) under Section 3.01
(Repayment of KSURE Covered Facility Loan Borrowings), Section 3.02 (Interest Payment Dates), Section 3.07 (Mandatory Prepayment), or Section 3.11 (Fees) or any date fixed by the KSURE Covered Facility
Agent for the payment of fees or other amounts due to the KSURE Covered Facility Lenders (or any of them) hereunder; 
 (iii)
reduce the principal of, or the rate of interest specified herein on, any KSURE Covered Facility Loan, or any Fees or other amounts (including any mandatory prepayments under Section 3.08 (Mandatory Prepayment)) payable to any KSURE
Covered Facility Lender hereunder, other than interest payable at the Default Rate; 
 (iv) change the order of application
of any reduction in any KSURE Covered Facility Commitments or any prepayment of KSURE Covered Facility Loans from the application thereof set forth in the applicable provisions of Section 2.04 (Termination or Reduction of Commitments),
Section 3.07 (Optional Prepayment), Section 3.08 (Mandatory Prepayment), Section 3.12 (Pro Rata Treatment), or Section 3.13 (Sharing of Payments), respectively, in any manner; 

(v) change any provision of this Section 11.01, the definition of Required Lenders, Supermajority Lenders, or any other
provision hereof specifying the number or percentage of KSURE Covered Facility Lenders required to amend, waive, terminate or otherwise modify any rights hereunder or make any determination or grant any consent hereunder; 

(vi) subject to all other provisions of this Section 11.01, release or allow release of (x) the Borrower from
(A) all or (B) a material, portion of its obligations under this Agreement, the Common Terms Agreement or any Security Document, (y) all or a material portion of the Collateral from the Lien of any of the Security Documents (other
than with respect to assets the conveyance, sale, lease, transfer or other disposal of which is permitted under Section 7.2(b) (Prohibition of Fundamental Changes) of the Common Terms Agreement), or (z) any guaranties or commitments
(other than any KSURE Covered Facility Commitments) under or in connection with this Agreement, the Common Terms Agreement or any Security Document; 

  
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 (vii) amend, modify, waive or supplement the terms of Section 11.04
(Assignments) of this Agreement or Section 2.7 (Train 6 Debt) of the Common Terms Agreement; 
 (viii)
amend the definition of Permitted Indebtedness or KSURE Covered Facility Secured Parties; or 
 (ix) amend, modify or waive
any of the matters listed on Schedule 1 (Unanimous Decisions) to the Intercreditor Agreement; 
 (b) No amendment, modification or
supplement to this Agreement shall be effective without the prior written approval of KSURE. Each KSURE Covered Facility Lender shall provide written notice of any vote or action with respect to any consent, amendment, waiver or termination taken
pursuant to this Agreement, or any other Financing Document, to the KSURE Covered Facility Agent with a copy to the Intercreditor Agent. 

(c) No amendment, waiver, termination or consent of any provision of this Agreement shall, unless in writing and signed by the KSURE Covered
Facility Agent or the Common Security Trustee, as applicable, in addition to the KSURE Covered Lenders required under Section 11.01(a), affect the rights or duties of, or any fees or other amounts payable to, the KSURE Covered Facility Agent or
the Common Security Trustee. 
 (d) In the event that the KSURE Covered Facility Agent is required to cast a vote with respect to a decision
under this Agreement or under the Intercreditor Agreement and in each other instance in which the KSURE Covered Facility Lenders are required to vote or make a decision, a vote shall be taken among the KSURE Covered Facility Lenders in the timeframe
reasonably specified by the KSURE Covered Facility Agent (which timeframe shall expire no more than two (2) Business Days prior to the expiration of the time period specified in the notice provided by the Intercreditor Agent to the KSURE
Covered Facility Agent pursuant to Section 4.4(a)(4) (Certain Procedures Relating to Modifications, Instructions, and Exercises of Discretion) of the Intercreditor Agreement)). 

(e) Subject to Section 11.01(b) and (c), in the event any KSURE Covered Facility Lender does not cast its vote by the later of
(i) the timeframe specified by the KSURE Covered Facility Agent pursuant to clause (c) above and (ii) ten (10) Business Days following receipt of the request for such vote, the Borrower shall be entitled to instruct the KSURE
Covered Facility Agent to deliver a notice to such KSURE Covered Facility Lender, informing it that if it does not respond within an additional five (5) Business Days of the date of such notice (or such longer period as the Borrower may
reasonably determine in consultation with the KSURE Covered Facility Agent), its vote shall be disregarded. If such KSURE Covered Facility Lender (A) has not advised the KSURE Covered Facility Agent within the time specified in the additional
notice whether it approves or disapproves of the applicable decision or (B) has advised the KSURE Covered Facility Agent that it has determined to abstain from voting on such decision, such KSURE Covered Facility Lender shall be deemed to have
waived its right to consent, approve, waive or provide direction with respect to such decision and shall be excluded from the numerator and denominator of such calculation for the purpose of determining whether the Required Lenders have made a
decision with respect to such action. Such KSURE Covered 

  
 41 

 
Facility Lender hereby waives any and all rights it may have to object to or seek relief from the decision of the KSURE Covered Facility Lenders voting with respect to such issue and agrees to be
bound by such decision; provided, that the provisions of Sections 11.01(d) and (e) shall not apply to (i) any decision set forth in Section 11.01(a)(i) – (ix) or Schedule 1 (Unanimous Decisions) to the Intercreditor
Agreement or (ii) any vote taken in accordance with Section 4.1(iv) (Majority Decisions) of the Intercreditor Agreement. 

11.02 Entire Agreement. This Agreement, the other Financing Documents and any agreement, document or instrument attached hereto or
referred to herein integrate all the terms and conditions mentioned herein or incidental hereto and supersede all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between the terms,
conditions and provisions of this Agreement and any such agreement, document or instrument, the terms, conditions and provisions of this Agreement shall prevail. 

11.03 Applicable Government Rule; Jurisdiction; Etc. (a) THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER,
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA WITHOUT ANY REFERENCE TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW. 
 (b) TO THE EXTENT PERMITTED BY APPLICABLE LAW EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH PARTY HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR, IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER FINANCING DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY PARTY HERETO MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION IF APPLICABLE LAW DOES NOT PERMIT A CLAIM, ACTION OR PROCEEDING REFERRED TO IN THE FIRST SENTENCE OF THIS
SECTION TO BE FILED, HEARD OR DETERMINED IN OR BY THE COURTS SPECIFIED THEREIN. 
 (c) WAIVER OF VENUE. EACH PARTY HERETO IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY 

  
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LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT IN ANY COURT
REFERRED TO IN SECTION 11.03(b). EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

(d) Service of Process. Each party irrevocably consents to the service of any and all process in any such action or proceeding by the
mailing of copies of such process to such Person at its then effective notice addresses pursuant to Section 11.11 (Notices and Other Communications). Nothing in this Agreement shall affect any right that any party may otherwise have to
bring any action or proceeding relating to this Agreement or any other Financing Document in the courts of any jurisdiction if applicable law does not permit a claim, action or proceeding referred to in the first sentence of Section 11.03(b) to
be filed, heard or determined in or by the courts specified therein. 
 (e) Immunity. To the extent that the Borrower has or
hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its
property, the Borrower hereby irrevocably and unconditionally waives such immunity in respect of its obligations under the Financing Documents and, without limiting the generality of the foregoing, agrees that the waiver set forth in this
Section 11.03(e) shall have the fullest scope permitted under the Foreign Sovereign Immunities Act of 1976 of the United States and is intended to be irrevocable for purposes of such Act. 

(f) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER FINANCING DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.03. 

11.04 Assignments. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each of the KSURE Covered Facility Lenders and
the KSURE Covered Facility Agent (and any attempted assignment or other transfer by the Borrower without such consent shall be null and void), and no KSURE Covered Facility 

  
 43 

 
Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with Section 11.04(b), (ii) by way of
participation in accordance with Section 11.04(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 11.04(e) (and any other attempted assignment or transfer by any party hereto
shall be null and void). 
 (b) Subject to this Section 11.04(b), any KSURE Covered Facility Lender may at any time after the date
hereof assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its KSURE Covered Facility Commitment or the KSURE Covered Facility Loans at the time owing to it)
(provided that, on the date of such assignment, such assignment would not result in an increase in amounts payable by the Borrower under Section 4.03 (Increased Costs) or Section 4.05 (Funding Losses), unless such
increase in amounts payable measured on such date of assignment is waived by the assigning and assuming KSURE Covered Facility Lenders and such Eligible Assignee). Except in the case of (x) an assignment of the entire remaining amount of the
assigning KSURE Covered Facility Lender’s KSURE Covered Facility Commitment and the KSURE Covered Facility Loans at the time owing to it or (y) an assignment to an Eligible Facility Lender, or an Affiliate of an Eligible Facility Lender,
or an Approved Fund with respect to an Eligible Facility Lender, the sum of (1) the outstanding KSURE Covered Facility Commitments, if any, and (2) the outstanding KSURE Covered Facility Loans subject to each such assignment (determined as
of the date the Lender Assignment Agreement with respect to such assignment is delivered to the KSURE Covered Facility Agent or, if “Trade Date” is specified in the Lender Assignment Agreement, as of the Trade Date) shall not be less than
five million Dollars ($5,000,000) and, with respect to the assignment of the KSURE Covered Facility Loans, in integral multiples of one million Dollars ($1,000,000), unless the KSURE Covered Facility Agent otherwise consents in writing. Each partial
assignment shall be made as an assignment of the same percentage of outstanding KSURE Covered Facility Commitment and outstanding KSURE Covered Facility Loans and a proportionate part of all the assigning KSURE Covered Facility Lender’s rights
and obligations under this Agreement with respect to the KSURE Covered Facility Loan and the KSURE Covered Facility Commitment. The parties to each assignment shall execute and deliver to the KSURE Covered Facility Agent a Lender Assignment
Agreement in the form of Exhibit C, together with a processing and recordation fee of three thousand five hundred Dollars ($3,500); provided that (A) no such fee shall be payable in the case of an assignment to an Eligible
Facility Lender, an Affiliate thereof or an Approved Fund with respect to an Eligible Facility Lender, as applicable, and (B) in the case of contemporaneous assignments by a KSURE Covered Facility Lender to one or more Approved Funds managed by
the same investment advisor (which Approved Funds are not then KSURE Covered Facility Lenders hereunder), only a single such three thousand five hundred Dollar ($3,500) fee shall be payable for all such contemporaneous assignments. If the
Eligible Assignee is not an Eligible Facility Lender prior to such assignment, it shall deliver to the KSURE Covered Facility Agent an administrative questionnaire and all documentation and other information required by bank regulatory authorities
under applicable “know your customer” requirements. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions
thereto set forth herein, the parties to the assignment shall make such additional payments to the KSURE Covered Facility Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by
the assignee of participations or subparticipations, or other 

  
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compensating actions, including funding, with the consent of the Borrower and the KSURE Covered Facility Agent, the applicable pro rata share of KSURE Covered Facility Loans previously
requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the KSURE
Covered Facility Agent, and each other KSURE Covered Facility Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all KSURE Covered Facility Loans in accordance with its
KSURE Covered Facility Loan Commitment Percentage. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the
provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs. Subject to acceptance and recording thereof by the KSURE Covered Facility
Agent pursuant to Section 11.04(c), from and after the effective date specified in each Lender Assignment Agreement, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Lender
Assignment Agreement, have the rights and obligations of a KSURE Covered Facility Lender under this Agreement, and the assigning KSURE Covered Facility Lender shall, to the extent of the interest assigned by such Lender Assignment Agreement, be
released from its obligations under this Agreement (and, in the case of a Lender Assignment Agreement covering all of the KSURE Covered Facility Lender’s rights and obligations under this Agreement, such KSURE Covered Facility Lender shall
cease to be a party hereto) but shall continue to be entitled to the benefits of Section 4.01 (LIBOR Lending Unlawful), Section 4.03 (Increased Costs), Section 4.05 (Funding Losses), Section 4.06
(Taxes), Section 11.06 (Costs and Expenses) and Section 11.08 (Indemnification by the Borrower) with respect to facts and circumstances occurring prior to the effective date of such assignment; provided that
except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that KSURE Covered Facility Lender’s having been
a Defaulting Lender. Upon request, the Borrower (at its expense) shall execute and deliver a KSURE Covered Facility Note to the assignee and/or a revised KSURE Covered Facility Note to the assigning KSURE Covered Facility Lender reflecting such
assignment. Any assignment or transfer by a KSURE Covered Facility Lender of rights or obligations under this Agreement that does not comply with this Section 11.04(b) shall be treated for purposes of this Agreement as a sale by such KSURE
Covered Facility Lender of a participation in such rights and obligations in accordance with Section 11.04(d). Upon any such assignment, the KSURE Covered Facility Agent will deliver a notice thereof to the Borrower (provided that
failure to deliver such notice shall not result in any liability for the KSURE Covered Facility Agent); provided that, no assignment or transfer of any rights or obligations of a KSURE Covered Facility Lender shall be permitted without the
prior written consent of KSURE. 
 (c) The KSURE Covered Facility Agent shall maintain the Register in accordance with Section 2.03(e)
(Borrowing of Loans) above. 
 (d) Any KSURE Covered Facility Lender may at any time, without the consent of, or notice to, the
Borrower or the KSURE Covered Facility Agent, sell participations to any Person (other than a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person, or any Loan
Party, any 

  
 45 

 
Sponsor, any Material Project Party, any Person that is party to any Additional Material Project Document or any Affiliate or Subsidiary thereof) (each, a “Participant”) in all
or a portion of such KSURE Covered Facility Lender’s rights or obligations under this Agreement (including all or a portion of its KSURE Covered Facility Commitment or the KSURE Covered Facility Loans owing to it); provided that
(i) such KSURE Covered Facility Lender’s obligations under this Agreement shall remain unchanged, (ii) such KSURE Covered Facility Lender remains solely responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the KSURE Covered Facility Agent and the other KSURE Covered Facility Lenders shall continue to deal solely and directly with such KSURE Covered Facility Lender in connection with such KSURE Covered Facility
Lender’s rights and obligations under this Agreement. For the avoidance of doubt, each KSURE Covered Facility Lender shall be responsible for the indemnity under Section 9.06 (Indemnification by the KSURE Covered Facility Lenders)
with respect to any payments made by such KSURE Covered Facility Lender to its Participant(s). Any agreement or instrument pursuant to which a KSURE Covered Facility Lender sells such a participation shall provide that such KSURE Covered Facility
Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that, such agreement or instrument may provide that such KSURE Covered Facility Lender
will not, without the consent of the Participant, but subject in all cases to KSURE’s rights hereunder, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01 (Amendments, Etc.) that
directly affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 4.03 (Increased Costs), 4.05 (Funding Losses) and 4.06 (Taxes) (subject to the requirements and
limitations therein, including the requirements under Section 4.06(e) (Taxes – Status of Lenders) (it being understood that any documentation required under Section 4.06 (Taxes) shall be delivered to the participating
KSURE Covered Facility Lender)) to the same extent as if it were a KSURE Covered Facility Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be
subject to the provisions of Section 4.04 (Obligation to Mitigate) as if it were an assignee under paragraph (b) of this Section 11.04; and (B) shall not be entitled to receive any greater payment under Sections 4.03
(Increased Costs) or 4.06 (Taxes), with respect to any participation, than its participating KSURE Covered Facility Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results
from a Change in Law that occurs after the Participant acquired the applicable participation. Each KSURE Covered Facility Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate
with the Borrower to effectuate the provisions of Section 4.04 (Obligation to Mitigate) with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.14
(Right of Setoff) as though it were a KSURE Covered Facility Lender; provided that such Participant agrees to be subject to Section 3.13 (Sharing of Payments) as though it were a KSURE Covered Facility Lender. Each KSURE Covered
Facility Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated
interest) of each Participant’s interest in the KSURE Covered Facility Loans or other obligations under the Financing Documents (the “Participant Register”); provided that no KSURE Covered Facility Lender shall have any
obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any 

  
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commitments, loans or its other obligations under any Financing Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other
obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such KSURE Covered Facility Lender shall treat each
Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the KSURE Covered Facility Agent (in its capacity
as KSURE Covered Facility Agent) shall have no responsibility for maintaining a Participant Register. 
 (e) Any KSURE Covered Facility
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its KSURE Covered Facility Notes, if any) to secure obligations of such KSURE Covered Facility Lender, including
any pledge or assignment to secure obligations to a Federal Reserve Bank or any central bank having jurisdiction; provided that, no such pledge or assignment shall release such KSURE Covered Facility Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such KSURE Covered Facility Lender as a party hereto. 
 (f) The words
“execution,” “signed,” “signature,” and words of like import in any Lender Assignment Agreement shall be deemed to include electronic signatures or the keeping of records in electronic form, each of
which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Government Rule, including
the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 

11.05 Benefits of Agreement. (a) Except as provided in Section 11.05(b) below, nothing in this Agreement or any other
Financing Document, express or implied, shall be construed to give to any Person, other than the parties hereto, each of their successors and permitted assigns under this Agreement or any other Financing Document, Participants to the extent provided
in Section 11.04 (Assignments) and, to the extent expressly contemplated hereby, the Related Parties of each of the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE Covered Facility Lenders, any benefit or any
legal or equitable right or remedy under this Agreement. 
 (b) The parties agree that KSURE is hereby made an express third party
beneficiary of, and is entitled to enforce all of its rights under, this Agreement. 
 11.06 Costs and Expenses. The Borrower shall
pay (a) all reasonable and documented out-of-pocket expenses incurred by each of the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE Covered Facility Lenders and their Affiliates (including all reasonable fees, costs and
expenses of one counsel plus one local counsel for the KSURE Covered Facility Lenders and their Affiliates in each relevant jurisdiction (provided that, in the case of the continuation of an Event of Default, any KSURE Covered Facility Lender
may retain separate counsel in the event of an actual conflict of interest (which may be multiple counsel, but only the least number necessary to resolve such conflict of interest) and the 

  
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Borrower shall pay all reasonable fees, cost and expenses of such additional counsel), in connection with the preparation, negotiation, syndication, execution and delivery of this Agreement and
the other Financing Documents; (b) all reasonable and documented out of pocket expenses incurred by the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE Covered Facility Lenders (including all reasonable fees, costs and
expenses of one counsel plus one local counsel for KSURE and their Affiliates in each relevant jurisdiction (provided that, in the case of the continuation of an Event of Default, any KSURE Covered Facility Lender may retain separate counsel
in the event of an actual conflict of interest (which may be multiple counsel, but only the least number necessary to resolve such conflict of interest) and the Borrower shall pay all reasonable fees, cost and expenses of such additional counsel),
in connection with any amendments, modifications or waivers of the provisions of this Agreement and the other Financing Documents (whether or not the transactions contemplated hereby or thereby are consummated); (c) all reasonable and
documented out-of-pocket expenses incurred by the KSURE Covered Facility Agent and the Common Security Trustee (including all reasonable fees, costs and expenses of one counsel plus one local counsel for the KSURE Covered Facility Lenders and their
Affiliates in each relevant jurisdiction (provided that, in the case of the continuation of an Event of Default, any KSURE Covered Facility Lender may retain separate counsel in the event of an actual conflict of interest (which may be
multiple counsel, but only the least number necessary to resolve such conflict of interest) and the Borrower shall pay all reasonable fees, cost and expenses of such additional counsel), in connection with the administration of this Agreement and
the other Financing Documents (whether or not the transactions contemplated hereby or thereby are consummated); and (d) all reasonable and documented out-of-pocket expenses incurred by the KSURE Covered Facility Secured Parties (including all
reasonable fees, costs and expenses of one counsel plus one local counsel for the KSURE Covered Facility Lenders and their Affiliates in each relevant jurisdiction (provided that, in the case of the continuation of an Event of Default, any
KSURE Covered Facility Lender may retain separate counsel in the event of an actual conflict of interest (which may be multiple counsel, but only the least number necessary to resolve such conflict of interest) and the Borrower shall pay all
reasonable fees, cost and expenses of such additional counsel), in connection with the enforcement or protection (other than in connection with assignment of KSURE Covered Facility Loans or KSURE Covered Facility Commitments) of their rights in
connection with this Agreement and the other Financing Documents, including their rights under this Section 11.06, including in connection with any workout, restructuring or negotiations in respect of the Obligations. This provision of this
Section 11.06 shall not supersede Sections 4.03 (Increased Costs) and 4.06 (Taxes). Notwithstanding the foregoing, in the event that the Common Security Trustee reasonably believes that a conflict exists in using one counsel,
it may engage its own counsel. 
 11.07 Counterparts; Effectiveness. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when it has been executed by the KSURE Covered
Facility Agent and when the KSURE Covered Facility Agent has received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement
by facsimile or portable document format (“pdf”) shall be effective as delivery of a manually executed counterpart of this Agreement. 

  
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 11.08 Indemnification by the Borrower. (a) The Borrower hereby agrees to indemnify
each KSURE Covered Facility Secured Party and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including all reasonable fees, costs and expenses of counsel or consultants for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower arising out of, in
connection with, or as a result of: 
 (i) the execution or delivery of this Agreement, any other Transaction Document or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or thereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or the
administration (other than expenses that do not constitute out-of-pocket expenses) or enforcement thereof; 
 (ii) any actual
or alleged presence, Release or threatened Release of Hazardous Materials in violation of Environmental Laws or that could reasonably result in an Environmental Claim on or from the Project or any property owned or operated by the Borrower, or any
Environmental Affiliate or any liability pursuant to an Environmental Law related in any way to the Project or the Borrower; 

(iii) any actual or prospective claim (including Environmental Claims), litigation, investigation or proceeding relating to any
of the foregoing, whether based on common law, contract, tort or any other theory, whether brought by a third party or by the Borrower or any of the Borrower’s members, managers or creditors, and regardless of whether any Indemnitee is a party
thereto and whether or not any of the transactions contemplated hereunder or under any of the other Financing Documents is consummated, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or
sole negligence of the Indemnitee; or 
 (iv) any claim, demand or liability for broker’s or finder’s or placement
fees or similar commissions, whether or not payable by the Borrower, alleged to have been incurred in connection with such transactions, other than any broker’s or finder’s fees payable to Persons engaged by any KSURE Covered Facility
Secured Party or Affiliates or Related Parties thereof; 
 provided, that, such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee
or (y) shall have arisen from a dispute between or among the Indemnitees or from a claim of an Indemnitee against another Indemnitee, which in either case is not the result of an act or omission of the Borrower or any of its Affiliates. 

(b) To the extent that the Borrower for any reason fails to pay any amount required under Section 11.06 (Costs and Expenses) or
Section 11.08(a) above to be paid by it to any of the KSURE Covered Facility Agent, the Common Security Trustee, any sub-agent thereof, or any Related Party of any of the foregoing, each KSURE Covered Facility Lender

  
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agrees to pay to the KSURE Covered Facility Agent, the Common Security Trustee, any such sub-agent, or such Related Party, as the case may be, such KSURE Covered Facility Lender’s ratable
share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that, the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the
case may be, was incurred by or asserted against the KSURE Covered Facility Agent, the Common Security Trustee, or any sub-agent thereof in its capacity as such, or against any Related Party of any of the foregoing acting for the KSURE Covered
Facility Agent, the Common Security Trustee, or any sub-agent thereof in connection with such capacity. The obligations of the KSURE Covered Facility Lenders under this Section 11.08(b) are subject to the provisions of Section 2.03
(Borrowing of Loans). The obligations of the KSURE Covered Facility Lenders to make payments pursuant to this Section 11.08(b) are several and not joint and shall survive the payment in full of the Obligations and the termination of this
Agreement. The failure of any KSURE Covered Facility Lender to make payments on any date required hereunder shall not relieve any other KSURE Covered Facility Lender of its corresponding obligation to do so on such date, and no KSURE Covered
Facility Lender shall be responsible for the failure of any other KSURE Covered Facility Lender to do so. 
 (c) All amounts due under this
Section 11.08 shall be payable not later than ten (10) Business Days after demand therefor. 
 (d) The provisions of this
Section 11.08 shall not supersede Sections 4.03 (Increased Costs) and 4.06 (Taxes). 
 11.09 Interest Rate
Limitation. Notwithstanding anything to the contrary contained in any Financing Document, the interest paid or agreed to be paid under the Financing Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable
Government Rule (the “Maximum Rate”). If the KSURE Covered Facility Agent or any KSURE Covered Facility Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal
of the KSURE Covered Facility Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the KSURE Covered Facility Agent or any KSURE Covered Facility Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Government Rule, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude prepayments and the
effects thereof, and (c) amortize, pro-rate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder. 

11.10 No Waiver; Cumulative Remedies. No failure by any KSURE Covered Facility Secured Party to exercise, and no delay by any such
Person in exercising, any right, remedy, power or privilege hereunder or under any other Financing Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and provided under each other Financing Document, are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law. 

  
 50 

 11.11 Notices and Other Communications. (a) Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
facsimile or, except with respect to any notice of Default or Event of Default, sent by email to the address(es), facsimile number or email address specified for the Borrower, the KSURE Covered Facility Agent, the Common Security Trustee or the
KSURE Covered Facility Lenders, as applicable, on Schedule 11.11. 
 (b) Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when received; and notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient). Notices delivered through electronic communications shall be effective as provided in Section 11.11(c). 

(c) Unless otherwise prescribed, (i) notices and other communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement); provided that, if such notice or other
communication is not received during the normal business hours of the recipient, such notice or communication shall be deemed to have been received at the opening of business on the next Business Day for the recipient, and (ii) notices or
communications posted to an internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in Schedule 11.11 of notification that such notice or communication is
available and identifying the website address therefor. Notwithstanding the above, all notices delivered by the Borrower to the KSURE Covered Facility Agent through electronic communications shall be followed by the delivery of a hard copy. 

(d) Each of the Borrower, the KSURE Covered Facility Agent and the Common Security Trustee may change its address, facsimile or telephone
number for notices and other communications hereunder by notice to the other parties hereto. Any KSURE Covered Facility Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the
Borrower, the KSURE Covered Facility Agent and the Common Security Trustee. 
 (e) The KSURE Covered Facility Agent, the Common Security
Trustee and the KSURE Covered Facility Lenders shall be entitled to rely and act upon any written notices purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the KSURE Covered Facility Agent, the
Common Security Trustee, the KSURE Covered Facility Lenders and the Related Parties of each of them for all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the
Borrower. All telephonic notices to and other telephonic communications with the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE Covered Facility Lenders by the Borrower may be recorded by the KSURE Covered Facility Agent,
the Common Security Trustee and the KSURE Covered Facility Lenders, as applicable, and each of the parties hereto hereby consents to such recording. 

  
 51 

 (f) The KSURE Covered Facility Agent agrees that the receipt of the communications by the KSURE
Covered Facility Agent at its e-mail addresses set forth in Schedule 11.11 shall constitute effective delivery to the KSURE Covered Facility Agent for purposes of the Financing Documents. Each KSURE Covered Facility Lender agrees to
notify the KSURE Covered Facility Agent in writing (including by electronic communication) from time to time of such KSURE Covered Facility Lender’s e-mail address(es) to which the notices may be sent by electronic transmission and that such
notices may be sent to such e-mail address(es). 
 (g) Notwithstanding the above, nothing herein shall prejudice the right of the KSURE
Covered Facility Agent, the Common Security Trustee and any of the KSURE Covered Facility Lenders to give any notice or other communication pursuant to any Financing Document in any other manner specified in such Financing Document. 

(h) So long as The Korea Development Bank, New York Branch is the KSURE Covered Facility Agent, the Borrower hereby agrees that it will
provide to the KSURE Covered Facility Agent all information, documents and other materials that it is obligated to furnish to the KSURE Covered Facility Agent pursuant to the Financing Documents, including all notices, requests, financial
statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to any KSURE Covered Facility Loan Borrowing, (ii) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default or (iv) is required to be delivered to satisfy any condition precedent to any KSURE Covered Facility Loan
Borrowing (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the KSURE Covered Facility Agent
at the email addresses specified in Schedule 11.11. In addition, the Borrower agrees to continue to provide the Communications to the KSURE Covered Facility Agent in the manner specified in the Financing Documents but only to the extent
requested by the KSURE Covered Facility Agent. 
 (i) So long as The Korea Development Bank, New York Branch is the KSURE Covered Facility
Agent, the Borrower further agrees that the KSURE Covered Facility Agent may make the Communications available to the KSURE Covered Facility Lenders by posting the Communications on an internet website that may, from time to time, be notified to the
KSURE Covered Facility Lenders (or any replacement or successor thereto) or a substantially similar electronic transmission system (the “Platform”). The costs and expenses incurred by the KSURE Covered Facility Agent in creating and
maintaining the Platform shall be paid by Borrower in accordance with Section 11.06 (Costs and Expenses). 
 (j) THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE KSURE COVERED FACILITY AGENT DOES NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIMS LIABILITY FOR
ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR 

  
 52 

 
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE KSURE
COVERED FACILITY AGENT IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE KSURE COVERED FACILITY AGENT OR ANY AFFILIATE THEREOF OR ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES
(COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY KSURE COVERED FACILITY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR ANY AGENT PARTY’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL
NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 

11.12 Patriot Act Notice. Each of the KSURE Covered Facility Lenders, the KSURE Covered Facility Agent and the Common Security Trustee
hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such KSURE Covered Facility Lender, the KSURE Covered Facility Agent or the Common Security Trustee, as applicable, to identify the Borrower in accordance with the Patriot Act. 

11.13 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made to the KSURE Covered Facility Agent,
the Common Security Trustee or any KSURE Covered Facility Lender, or the KSURE Covered Facility Agent, the Common Security Trustee or any KSURE Covered Facility Lender (as the case may be) exercises its right of setoff, and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the KSURE Covered Facility Agent, the Common Security
Trustee or such KSURE Covered Facility Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any bankruptcy or insolvency proceeding or otherwise, then (a) to the extent of such recovery, the
Obligation or part thereof originally intended to be satisfied by such payment shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each KSURE Covered Facility
Lender severally agrees to pay to the KSURE Covered Facility Agent or the Common Security Trustee upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the KSURE Covered Facility Agent or the Common
Security Trustee, as the case may be, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Effective Rate. The obligations of the KSURE Covered Facility Lenders
under this Section 11.13 shall survive the payment in full of the Obligations and the termination of this Agreement. 

  
 53 

 11.14 Right of Setoff. Each of the KSURE Covered Facility Lenders and each of their
respective Affiliates is hereby authorized at any time and from time to time during the continuance of an Event of Default, to the fullest extent permitted by applicable Government Rule, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such KSURE Covered Facility Lender or any such Affiliates to or for the credit or the account of the
Borrower against any and all of the Obligations of the Borrower now or hereafter existing under this Agreement or any other Financing Document to such KSURE Covered Facility Lender, irrespective of whether or not such KSURE Covered Facility Lender
shall have made any demand under this Agreement or any other Financing Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch or office of such KSURE Covered Facility Lender different from the
branch or office holding such deposit or obligated on such indebtedness. The rights of each of the KSURE Covered Facility Lender and their respective Affiliates under this Section 11.14 are in addition to other rights and remedies (including
other rights of setoff) that such KSURE Covered Facility Lenders or their respective Affiliates may have. Each of the KSURE Covered Facility Lender agrees to notify the Borrower and the KSURE Covered Facility Agent promptly after any such setoff and
application; provided that, the failure to give such notice shall not affect the validity of such setoff and application. 
 11.15
Severability. If any provision of this Agreement or any other Financing Document is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other
Financing Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

11.16 Survival. Notwithstanding anything in this Agreement to the contrary, Section 4.01 (LIBOR Lending Unlawful),
Section 4.03 (Increased Costs), Section 4.06 (Taxes), Section 9.06 (Indemnification by the KSURE Covered Facility Lenders), Section 11.06 (Costs and Expenses), Section 11.08 (Indemnification by
the Borrower) and Section 11.13 (Payments Set Aside) shall survive any termination of this Agreement. In addition, each representation and warranty made hereunder and in any other Financing Document or other document delivered
pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties shall be considered to have been relied upon by the KSURE Covered Facility Secured
Parties regardless of any investigation made by any KSURE Covered Facility Secured Party or on their behalf and notwithstanding that the KSURE Covered Facility Secured Parties may have had notice or knowledge of any Default or Event of Default at
the time of the KSURE Covered Facility Loan Borrowing, and shall continue in full force and effect as of the date made or any date referred to herein as long as any KSURE Covered Facility Loan or any other Obligation hereunder or under any other
Financing Document shall remain unpaid or unsatisfied. 
 11.17 Treatment of Certain Information; Confidentiality. The KSURE Covered
Facility Agent, the Common Security Trustee, and each of the KSURE Covered Facility Lenders 

  
 54 

 
agree to maintain the confidentiality of the Information, except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective shareholders, members,
partners, directors, officers, employees, agents, advisors, auditors, insurers and representatives (provided that the Persons to whom such disclosure is made will be informed prior to disclosure of the confidential nature of such Information
and instructed to keep such Information confidential); (b) to the extent requested or required by any regulatory authority purporting to have jurisdiction over it or to any Federal Reserve Bank or central bank in connection with a pledge or
assignment pursuant to Section 11.04(d) (Assignments); (c) to the extent required by applicable Government Rule or regulations or by any subpoena or similar legal process; (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or under any other Financing Document or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder (including any actual or prospective purchaser of
Collateral); (f) subject to an agreement containing provisions substantially the same as those of this Section 11.17, to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, or any
of its rights or obligations under this Agreement, (ii) any direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit
derivative transaction relating to obligations of the Borrower or (iii) any Person (and any of its officers, directors, employees, agents or advisors) that may enter into or support, directly or indirectly, or that may be considering entering
into or supporting, directly or indirectly, either (A) contractual arrangements with the KSURE Covered Facility Agent, the Common Security Trustee, or such KSURE Covered Facility Lender, or any Affiliates thereof, pursuant to which all or any
portion of the risks, rights, benefits or obligations under or with respect to any KSURE Covered Facility Loan or Financing Document is transferred to such Person or (B) an actual or proposed securitization or collateralization of, or similar
transaction relating to, all or a part of any amounts payable to or for the benefit of any KSURE Covered Facility Lender under any Financing Document (including any rating agency); (g) with the consent of the Borrower (which consent shall not
unreasonably be withheld or delayed); (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 11.17 or (ii) becomes available to the KSURE Covered Facility Agent, the
Common Security Trustee, any KSURE Covered Facility Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower; (i) to any state, federal or foreign authority or examiner (including the
National Association of Insurance Commissioners or any other similar organization) regulating any KSURE Covered Facility Lender, the Common Security Trustee or the KSURE Covered Facility Agent; or (j) to any rating agency when required by it
(it being understood that, prior to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Information relating to the Borrower received by it from any KSURE Covered Facility Lender or the KSURE Covered
Facility Agent or Common Security Trustee, as applicable). In addition, the KSURE Covered Facility Agent, the Common Security Trustee, and any KSURE Covered Facility Lender may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar service providers to the lending industry, and service providers to the KSURE Covered Facility Agent, the Common Security Trustee and the KSURE Covered Facility Lenders in connection with the
administration and management of this Agreement, the other Financing Documents, the KSURE Covered Facility Commitments, and the KSURE Covered Facility Loan Borrowings. For the purposes of this Section 11.17, “Information” means
written information that is furnished by or on behalf of 

  
 55 

 
the Borrower, the Pledgor, the Sponsor or any of their Affiliates to the KSURE Covered Facility Agent, the Common Security Trustee or any KSURE Covered Facility Lender pursuant to or in
connection with any Financing Document, relating to the assets and business of the Borrower, the Pledgor, the Sponsor or any of their Affiliates, but does not include any such information that (i) is or becomes generally available to the public
other than as a result of a breach by the KSURE Covered Facility Agent, the Common Security Trustee or such KSURE Covered Facility Lender of its obligations hereunder, (ii) is or becomes available to the KSURE Covered Facility Agent, the Common
Security Trustee or such KSURE Covered Facility Lender from a source other than the Borrower, the Pledgor, the Sponsor or any of their Affiliates, as applicable, that is not, to the knowledge of the KSURE Covered Facility Agent, the Common Security
Trustee or such KSURE Covered Facility Lender, acting in violation of a confidentiality obligation with the Borrower, the Pledgor, the Sponsor or any of their Affiliates, as applicable or (iii) is independently compiled by the KSURE Covered
Facility Agent, the Common Security Trustee or any KSURE Covered Facility Lender, as evidenced by their records, without the use of the Information. Any Person required to maintain the confidentiality of Information as provided in this
Section 11.17 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential
information. 
 11.18 Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable Government Rule, no party
hereto shall assert, and each party hereto hereby waives, any claim against any other party hereto or their Related Parties, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement, any other Financing Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any KSURE Covered Facility Loan or the
use of the proceeds thereof. No party hereto or its Related Parties shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Financing Documents or the transactions contemplated hereby or thereby. 

11.19 Waiver of Litigation Payments. To the extent that any party hereto may, in any action, suit or proceeding brought in any of the
courts referred to in Section 11.03 (Applicable Government Rule; Jurisdiction, Etc.) or elsewhere arising out of or in connection with this Agreement or any other Financing Document to which it is a party, be entitled to the benefit of
any provision of law requiring any other party hereto in such action, suit or proceeding to post security for the costs of such Person or to post a bond or to take similar action, each such Person hereby irrevocably waives such benefit, in each case
to the fullest extent now or in the future permitted under the laws of New York or, as the case may be, the jurisdiction in which such court is located. 

11.20 Reinstatement. This Agreement and the obligations of the Borrower hereunder shall automatically be reinstated if and to the
extent that for any reason any payment made pursuant to this Agreement is rescinded or must otherwise be restored or returned, whether as a result of any proceedings in bankruptcy or reorganization or otherwise with respect to the Borrower or any
other Person or as a result of any settlement or compromise with any Person 

  
 56 

 
(including the Borrower) in respect of such payment, and the Borrower shall pay the KSURE Covered Facility Secured Parties on demand all of their reasonable costs and expenses (including
reasonable fees, expenses and disbursements of counsel) incurred by such parties in connection with such rescission or restoration. 
 11.21
No Recourse. 
 (a) Each KSURE Covered Facility Secured Party that is a party hereto acknowledges and agrees that the obligations of
the Loan Parties under this Agreement and the other Financing Documents, including with respect to the payment of the principal of or premium or penalty, if any, or interest on any Obligations, or any part thereof, or for any claim based thereon or
otherwise in respect thereof or related thereto, are obligations solely of the Loan Parties and shall be satisfied solely from the Security and the assets of the Loan Parties and shall not constitute a debt or obligation of the Sponsor or any of its
respective Affiliates (other than the Loan Parties), nor of any past, present or future officers, directors, employees, shareholders, agents, attorneys or representatives of the Loan Parties, the Sponsor and their respective Affiliates (collectively
(but excluding the Loan Parties), the “Non-Recourse Parties”). 
 (b) Each KSURE Covered Facility Secured Party that is
party hereto acknowledges and agrees that, subject to Section 11.21(c), the Non-Recourse Parties shall not be liable for any amount payable under this Agreement or any Financing Document, and no KSURE Covered Facility Secured Party shall seek a
money judgment or deficiency or personal judgment against any Non-Recourse Party for payment or performance of any obligation of the Loan Parties under this Agreement or the other Financing Documents. 

(c) The acknowledgments, agreements and waivers set out in this Section 11.21 shall survive termination of this Agreement and shall be
enforceable by any Non-Recourse Party and are a material inducement for the execution of this Agreement and the other Financing Documents by the Loan Parties. 

11.22 Intercreditor Agreement. Any actions, consents, approvals, authorizations or discretion taken, given, made or exercised, or not
taken, given, made or exercised by the Secured Debt Holder Group Representative in accordance with the Intercreditor Agreement shall be binding on each KSURE Covered Facility Lender. Notwithstanding anything to the contrary herein, in the case of
any inconsistency between this Agreement and the Intercreditor Agreement, the Intercreditor Agreement shall govern. 
 11.23
Termination. This Agreement shall terminate and shall have no force and effect (except with respect to the provisions that expressly survive termination of this Agreement) if (a) either the KSURE Covered Facility Initial Advance or the
incurrence of Replacement Debt does not occur on or prior to the first anniversary of the Closing Date (or such later date as may be agreed in writing by the KSURE Covered Facility Lenders) (b) all Obligations have been indefeasibly paid in
full and all KSURE Covered Facility Commitments have been terminated and the KSURE Covered Facility Agent shall have given the notice required by Section 2.11(a) (Termination of Obligations) of the Common Terms Agreement. 

  
 57 

 11.24 Liability of KSURE. Neither KSURE nor any of its respective officers, directors,
employees or representatives retained by KSURE in connection with the Financing Documents, will be liable or responsible for the use of proceeds of any Advance under this Agreement by the KSURE Covered Facility Agent or for any acts or omissions of
any party to the Financing Documents (including, without limitation, the failure of any KSURE Covered Facility Lender to make KSURE Covered Facility Loans as required under this Agreement). 

[Remainder of page intentionally blank. Next page is signature page.] 

  
 58 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 SABINE PASS LIQUEFACTION, LLC,

as the Borrower

		
	By:		 /s/ Lisa C. Cohen

	Name:		Lisa C. Cohen
	Title:		Treasurer

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 THE KOREA DEVELOPMENT BANK, NEW YORK BRANCH,

as the KSURE Covered Facility Agent

		
	By:		 /s/ Nakjoo Seong

			Name: Nakjoo Seong
			Title: General Manager

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 SOCIÉTÉ GÉNÉRALE,

as the Common Security Trustee

		
	By:		 /s/ Roberto S. Simon

			Name: Roberto S. Simon
			Title: Managing Director

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 HANA BANK NEW YORK AGENCY,

as a KSURE Covered Facility Lender

		
	By:		 /s/ Jong Deuk Baek

			Name: Jong Deuk Baek
			Title: General Manager

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 KEB BAHRAIN BRANCH,
 as a
KSURE Covered Facility Lender

			By: Korea Exchange Bank
		
	By:		 /s/ Kwang Seok, Kim

			Name: Kwang Seok, Kim
			Title: General Manager

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 KEB LONDON BRANCH,
 as a
KSURE Covered Facility Lender

			By: Korea Exchange Bank
		
	By:		 /s/ D.C. Chung

			Name: D.C. Chung
			Title: General Manager

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 KDB IRELAND LTD.,
 as a KSURE
Covered Facility Lender

		
	By:		 /s/ Min Byung Kim

			Name: Min Byung Kim
			Title: Managing Director

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 THE KOREA DEVELOPMENT BANK,

as a KSURE Covered Facility Lender

		
	By:		 /s/ Ji Ho Kang

			Name: Mr. Ji Ho Kang
			Title: General Manager Project Finance Department II

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 THE KOREA DEVELOPMENT BANK NEW YORK BRANCH,

as a KSURE Covered Facility Lender

		
	By:		 /s/ Nakjoo Seong

			Name: Nakjoo Seong
			Title: General Manager

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 NH INVESTMENT & SECURITIES CO. LTD.,

as a KSURE Covered Facility Lender

		
	By:		 /s/ Wonkyu Kim

			Name: Wonkyu Kim
			Title: President & CEO

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers as of the day and year first above written. 
  

			
	 SOCIÉTÉ GÉNÉRALE,

as a KSURE Covered Facility Lender

		
	By:		 /s/ Adrien Deslandes

			Name: Adrien Deslandes
			Title: Project Export Finance Analyst

 EXHIBIT A TO 

AMENDED AND RESTATED KSURE COVERED FACILITY AGREEMENT 

Definitions 
 “Additional
Advance” means, as of the date of any KSURE Covered Facility Loan Borrowing, the amount of such KSURE Covered Facility Loan Borrowing to the extent such amount was not already included in the Projected Balance for the Fiscal Quarter (or
portion thereof) in which such Additional Advance occurs. 
 “Agent Parties” has the meaning provided in Section 11.11(j) (Notices
and Other Communications). 
 “Aggregate KSURE Covered Facility Commitment” means seven hundred fifty million Dollars
($750,000,000.00), as the same may be reduced in accordance with Section 2.04 (Termination or Reduction of Commitments). 

“Agreement” has the meaning provided in the Preamble. 

“Amortization Schedule” means the amortization schedule set forth in Schedule 3.01(a). 

“Applicable Margin” means 1.30 %. 

“Approved Fund” means, with respect to any Eligible Facility Lender that is a fund that invests in commercial loans, any other fund that
invests in commercial loans and is managed or advised by the same investment advisor as such Eligible Facility Lender or by an Affiliate of such investment advisor. 

“Availability Period” means the period commencing on the date of the KSURE Covered Facility Initial Advance and ending on the earliest to
occur of (a) the Project Completion Date, (b) the Initial Quarterly Payment Date and (c) the date KSURE terminates all KSURE Covered Facility Commitments (or such KSURE Covered Facility Commitments are automatically terminated) in
accordance with the Financing Documents. 
 “Borrower” has the meaning provided in the Preamble. 

“Break Costs” means the aggregate of LIBOR breakage expenses, prepayment indemnities or other similar amounts that will become payable by the
Borrower in respect of any prepayment under the KSURE Covered Facility Agreement or any revocation of a notice of prepayment delivered under the KSURE Covered Facility Agreement. 

  
 A-1 

 “Change in Law” means, other than a KSURE Insurance Trigger Event, (a) the adoption or
introduction of any law, rule, directive, guideline, decision or regulation after the Closing Date, (b) any change in law, rule, directive, guideline, decision or regulation or in the interpretation or application thereof by any Government
Authority charged with its interpretation or administration after the Closing Date or (c) compliance by KSURE or by any lending office of KSURE, if any with any written request, guideline, decision or directive (whether or not having the force
of law but if not having the force of law, then being one with which the relevant party would customarily comply) of any Government Authority charged with its interpretation or administration made or issued after the Closing Date; and
provided, however, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in
connection therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” regardless of the date enacted, adopted, issued or implemented. 

“Closing Date” means the date on which conditions precedent in Section 6.01 (Conditions to Closing Date) have been satisfied or
waived in accordance with the KSURE Covered Facility Agreement. 
 “Commitment Fee” has the meaning provided in Section 3.11(a)
(Fees). 
 “Common Terms Agreement” means that Second Amended and Restated Common Terms Agreement, dated on or about the date
hereof, by and among the Borrower, each Secured Debt Holder Group Representative party thereto, each Secured Hedge Representative party thereto, each Secured Gas Hedge Representative party thereto, the Common Security Trustee and the Intercreditor
Agent. 
 “Communications” has the meaning provided in Section 11.11(h) (Notices and Other Communications). 

“Default Rate” has the meaning provided in Section 3.04 (Post-Maturity Interest Rates; Default Interest Rates). 

“Defaulting Lender” means a KSURE Covered Facility Lender which (a) has defaulted in its obligations to fund any KSURE Covered Facility
Loan or otherwise failed to comply with its obligations under Section 2.01 (KSURE Covered Facility Loans), unless (x) such default or failure is no longer continuing or has been cured within three (3) Business Days after such
default or failure or (y) such KSURE Covered Facility Lender notifies the KSURE Covered Facility Agent and the Borrower in writing that such failure is the result of such KSURE 

  
 A-2 

 
Covered Facility Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically
identified in such writing) has not been satisfied, (b) has notified the Borrower and/or the KSURE Covered Facility Agent that it does not intend to comply with its obligations under Section 2.01 (KSURE Covered Facility Loans) or
has made a public statement to that effect or (c) has, or has a direct or indirect parent company that has, (x) become the subject of a proceeding under any Bankruptcy Code or any applicable federal, state or other statute or law relating
to bankruptcy, insolvency, reorganization or other relief for debtors, or (y) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization
or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that, for the avoidance of doubt, a KSURE Covered Facility
Lender shall not be a Defaulting Lender solely by virtue of (i) the ownership or acquisition of any equity interest in that KSURE Covered Facility Lender or any direct or indirect parent company thereof by a Government Authority or (ii) in
the case of a solvent Person, the precautionary appointment of an administrator, guardian, custodian or other similar official by a Government Authority under or based on the law of the country where such Person is subject to home jurisdiction
supervision if Government Rule requires that such appointment not be publicly disclosed, in any case, where such action does not result in or provide such KSURE Covered Facility Lender with immunity from the jurisdiction of courts within the United
States or from the enforcement of judgments or writs of attachment on its assets or permit such KSURE Covered Facility Lender (or such Government Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such KSURE
Covered Facility Lender. 
 “Eligible Assignee” means (a) any Eligible Facility Lender, (b) an Affiliate of any Eligible Facility
Lender, and (c) any other Person (other than a natural person) approved by the KSURE Covered Facility Agent (not to be unreasonably withheld) and, unless an Event of Default shall then be continuing, with the consent of the Borrower (not to be
unreasonably withheld); provided that the Borrower shall be deemed to have consented unless it shall object thereto by written notice to the KSURE Covered Facility Agent within five (5) Business Days after having received notice of the
proposed assignment; provided, further, that, notwithstanding the foregoing, an Eligible Assignee shall not include any Defaulting Lender (as defined herein or any other Facility Agreement), Loan Party, the Sponsor, Blackstone, any
Material Project Party or any Affiliate or Subsidiary of any of the foregoing. 
 “Eligible Facility Lender” means any of: (a) the
Commercial Bank Lenders, (b) if applicable, the Train 6 Facility Lenders, (c) the KEXIM Covered Facility Lenders or (d) the KSURE Covered Facility Lenders. 

“Eligible Transferee” means any bank or other financial institution which has a credit rating of A- or higher from S&P or A3 or higher
from Moody’s. 

  
 A-3 

 “Excluded Taxes” means, with respect to any KSURE Covered Facility Lender, the KSURE Covered
Facility Agent, KSURE or any other recipient of any payment to be made by or on account of any Obligation of the Borrower, (a) (i) income or franchise Taxes, in each case, imposed on (or measured by) its net income (however denominated) by
the United States or by the jurisdiction (or any subdivision thereof) under the laws of which such Person is organized or in which its principal office is located or, in the case of KSURE or a KSURE Covered Facility Lender, in which its applicable
lending office is located or (ii) any branch profits Taxes or any similar Taxes on retained earnings imposed by any jurisdiction described in clause (a)(i) that relates to such Person or any jurisdiction in which the Borrower is located,
(b) in the case of any KSURE Covered Facility Lender, any U.S. federal withholding Tax that is imposed on amounts payable to any KSURE Covered Facility Lender with respect to an applicable interest in a KSURE Covered Facility Loan pursuant to a
law in effect at the time any KSURE Covered Facility Lender becomes a party to the KSURE Covered Facility Agreement (other than pursuant to an assignment request by the Borrower under Section 4.04 (Obligation to Mitigate)) or, in the
case of a KSURE Covered Facility Lender, changes its lending office (except to the extent that amounts with respect to such Taxes were payable either to any KSURE Covered Facility Lender’s assignor immediately before such assignee became a
party hereto or to such KSURE Covered Facility Lender immediately before it changed its lending office), (c) Taxes attributable to KSURE’s or any KSURE Covered Facility Lender’s failure to comply with Section 4.06(e) (Taxes
- Status of Lenders), (d) any United States federal withholding Tax imposed under FATCA and (e) Other Connection Taxes. 

“FATCA” means Sections 1471 through 1474 of the Code, as in effect on the date of the KSURE Covered Facility Agreement (or any amended or
successor version that is substantively comparable and not materially more onerous to comply with) and any United States Department of Treasury regulation promulgated thereunder and published administrative guidance implementing such Sections and
any agreements entered into pursuant to Section 1471(b)(1) of the Code. 
 “Federal Funds Effective Rate” means, for any day, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day,
as published on the next succeeding Business Day by the Federal Reserve Bank of New York; provided, that (a) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Effective Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) if such rate is not so published for any day that is a Business Day, the Federal Funds Effective Rate for such day
shall be the average of the quotations for such day for such transactions received by the KSURE Covered Facility Agent from three (3) federal funds brokers of recognized standing selected by the KSURE Covered Facility Agent. 

  
 A-4 

 “Fees” means, collectively, each of the fees payable by the Borrower for the account of KSURE,
the KSURE Covered Facility Lenders or the KSURE Covered Facility Agent pursuant to Section 3.11 (Fees). 
 “Front-End Fee” has
the meaning provided in Section 3.11(c)(Fees). 
 “Government Authority” means any supra-national, federal, state or local
government or political subdivision thereof or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and having jurisdiction over the Person or matters in question, other than
KSURE (to the extent of its internal policies and procedures). 
 “Indemnified Taxes” means (a) Taxes imposed on or with respect to
any payment made on account of any Obligation of the Borrower hereunder to the KSURE Covered Facility Agent, the Common Security Trustee, KSURE or any other recipient of any payment to be made by or on account of any Obligation of the Borrower
hereunder other than Excluded Taxes, and (b) to the extent not otherwise described in clause (a), Other Taxes. 
 “Indemnitee” has the
meaning provided in Section 11.08(a) (Indemnification by the Borrower). 
 “Information” has the meaning provided in
Section 11.17 (Treatment of Certain Information; Confidentiality). 
 “Intercreditor Vote” means a vote with respect to any
consent, waiver, approval, direction or other modification in accordance with the Intercreditor Agreement. 
 “Interest Payment Date” has
the meaning provided in Section 3.02(a) (Interest Payment Dates). 
 “Interest Period” means the period beginning on the date
on which a KSURE Covered Facility Loan is made pursuant to Section 2.03(a) (Borrowing of Loans) or on the last day of the immediately preceding Interest Period therefor, as applicable, and ending on the numerically corresponding day in
the calendar month that is three (3) months thereafter (or, in the case of the first Interest Period for any KSURE Covered Facility Loan Borrowing, the number of days from such KSURE Covered Facility Loan Borrowing until the earlier of the
first March 31, June 30, September 30 or December 31 following such KSURE Covered Facility Loan Borrowing); provided, however, that (i) if such Interest Period would otherwise end on a day that is not
a Business Day, such Interest Period shall end on the next following Business Day (unless such next following Business Day is in a different calendar month, in which case such Interest Period shall end on the next preceding Business Day),
(ii) any Interest Period that begins on the last Business Day of a month (or on a day for which there is no numerically corresponding day in the month at the end of such Interest Period) shall end on the last Business Day of the month at the
end of such Interest Period, (iii) no Interest Period may end later than the Maturity Date, and (iv) any Interest Period for a Commercial Bank Loan which would otherwise end after the Maturity Date shall end on the Maturity Date. 

  
 A-5 

 “KSURE” has the meaning provided in the Preamble. 

“KSURE Acceptance Letter” means an acceptance certificate whereby KSURE confirms that the KSURE Insurance Policy will be issued by KSURE and
take effect, subject to the General Terms and Conditions and the Special Terms and Conditions, upon KSURE’s receipt of the KSURE Premium. 

“KSURE Covered Facility Commitment” means, with respect to each KSURE Covered Facility Lender, the commitment of such KSURE Covered Facility
Lender to make KSURE Covered Facility Loans, as set forth opposite the name of such KSURE Covered Facility Lender in the column entitled “KSURE Covered Facility Commitment” in Schedule 2.01, or if such KSURE Covered Facility Lender
has entered into one or more Lender Assignment Agreements, set forth opposite the name of such KSURE Covered Facility Lender in the Register maintained by the KSURE Covered Facility Agent pursuant to Section 2.03(e) (Borrowing of Loans)
as such KSURE Covered Facility Lender’s KSURE Covered Facility Loan Commitment, as the same may be reduced in accordance with Section 2.04 (Termination or Reduction of Commitments). 

“KSURE Covered Facility Lenders” means those financial institutions identified on Schedule 2.01 and each other Person that acquires
the rights and obligations of any such KSURE Covered Facility Lender pursuant to Section 11.04 (Assignments). 
 “KSURE
Covered Facility Loan” has the meaning set forth in Section 2.01(a) (KSURE Covered Facility Loans). 
 “KSURE
Covered Facility Loan Borrowing” means each disbursement of KSURE Covered Facility Loans by the KSURE Covered Facility Lenders (or the KSURE Covered Facility Agent on their behalf) on any single date to the Borrower in accordance with
Section 2.03 (Borrowing of Loans) and Section 6 (Conditions Precedent). 
 “KSURE Covered Facility Loan Commitment
Percentage” means, as to any KSURE Covered Facility Lender at any time, the percentage that such KSURE Covered Facility Lender’s KSURE Covered Facility Commitment then constitutes of the Aggregate KSURE Covered Facility Commitment.

 “KSURE Covered Facility Notes” means the promissory notes of the Borrower, substantially in the form of Exhibit B evidencing
KSURE Covered Facility Loans, in each case duly executed and delivered by an Authorized Officer of the Borrower in favor of each KSURE Covered Facility Lender, including any promissory notes issued by the Borrower in connection with assignments of
any KSURE Covered Facility Loan of the KSURE Covered Facility Lenders, as they may be amended, restated, supplemented or otherwise modified from time to time. 

  
 A-6 

 “KSURE Covered Facility Secured Parties” means the KSURE Covered Facility Lenders, KSURE, the
KSURE Covered Facility Agent, the Common Security Trustee and each of their respective successors and permitted assigns, in each case in connection with the KSURE Covered Facility Agreement or the KSURE Covered Facility Notes. 

“KSURE Covered Facility Initial Advance” means the first KSURE Covered Facility Loan Borrowing. 

“KSURE Insurance Policy” means the insurance policy for overseas business credit insurance, providing political and commercial cover for 100%
of the aggregate KSURE Covered Facility Commitment, to be issued by KSURE in favor of the KSURE Covered Facility Agent (acting on behalf and for the benefit of the KSURE Covered Facility Lenders). 

“KSURE Insurance “ means, collectively (i) the KSURE Insurance Policy, (ii) the general terms and conditions (the “General
Terms and Conditions “) of medium and long term export insurance (buyer credit, syndicated loan, standard) of KSURE, (iii) the special terms and conditions (the “Special Terms and Conditions “) entered into between
KSURE and the KSURE Covered Facility Agent (acting on behalf and for the benefit of the KSURE Covered Facility Lenders), and (iv) the KSURE Acceptance Letter. 

“KSURE Insurance Policy Payment” has the meaning provided in Section 10.01 (Insurance). 

“KSURE Premium” has the meaning provided in Section 3.11(b) (Fees). 

“Lender Assignment Agreement” means a Lender Assignment Agreement, substantially in the form of Exhibit C. 

“LIBOR” means, for any Interest Period for any LIBO Loan the rate per annum equal to (a) the rate determined by the KSURE Covered
Facility Agent to be the offered rate that appears on the page of Reuters Screen LIBOR01 (or any successor thereto) that displays the London interbank offered rates as administered by ICE Benchmark Administration for deposits in Dollars (for
delivery on the first day of such Interest Period) with a term equivalent to an Interest Period that is three (3) months, determined as of approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest
Period, or (b) if the rate referenced in the preceding clause (a) does not appear on such page or service or such page or service is not available, the rate determined by the KSURE Covered Facility Agent to be the offered rate on such
other page or other service that displays the London interbank offered rates as administered by ICE Benchmark Administration for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to an Interest Period
that is three (3) months, determined as of 

  
 A-7 

 
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, or (c) if the rates referenced in the preceding clauses (a) and
(b) are not available, the rate per annum determined by the KSURE Covered Facility Agent as the average rate of interest at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the
approximate amount of the LIBO Loan being made, continued or converted and with a term equivalent to an Interest Period that is three (3) months would be offered by the KSURE Covered Facility Agent (or its Affiliates) to major banks in the
London interbank LIBOR market at its request at approximately 4:00 p.m. (London time) two (2) Business Days prior to the first day of such Interest Period; provided, however, if LIBOR as determined pursuant to clauses (a),
(b) or (c), as applicable, is less than zero percent (0%), LIBOR shall be deemed zero percent (0%). 
 “Manager” means Hana
Bank, New York Agency, in each case, not in its individual capacity, but as manager hereunder and any successors and permitted assigns. 

“Mandated Lead Arranger” means The Korea Development Bank, in each case, not in its individual capacity, but as mandated lead arranger
hereunder and any successors and permitted assigns. 
 “Maturity Date” means the earlier of (i) the second anniversary of the
Project Completion Date or (ii) December 31, 2020. 
 “Maximum Rate” has the meaning provided in Section 11.09 (Interest
Rate Limitation). 
 “Negotiation Period” has the meaning provided in Section 4.02 (Inability to Determine Interest Rates).

 “Non-Consenting Lender” has the meaning provided in Section 4.04(d) (Obligation to Mitigate). 

“Non-Recourse Parties” has the meaning provided in Section 11.21(a) (No Recourse). 

“Non-U.S. Lender” has the meaning provided in Section 4.06(e) (Taxes - Status of Lenders). 

“Obligations” means, collectively, (a) all Indebtedness, KSURE Covered Facility Loans, advances, debts, liabilities (including any
indemnification or other obligations that survive the termination of the Financing Documents (excluding any Secured Debt Instrument other than the KSURE Covered Facility Agreement)), and all other obligations, howsoever arising (including Guarantee
obligations), in each case, owed by the Borrower to the KSURE Covered Facility Secured Parties (or any of them) of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or
indirect, absolute or contingent, due or to become due, now existing or hereafter arising, pursuant to the terms of the 

  
 A-8 

 
Financing Documents (excluding any Secured Debt Instrument other than the KSURE Covered Facility Agreement), (b) any and all sums reasonably advanced by KSURE Covered Facility Agent in order
to preserve the Collateral or preserve the security interest of the KSURE Covered Facility Secured Parties in the Collateral (including, but without duplication of the Borrower’s Obligation to repay the same, amounts described in the last
sentence of the definition of Operation and Maintenance Expenses) and (c) in the event of any proceeding for the collection or enforcement of the obligations described in clauses (a) and (b) above, after an Event of Default shall have
occurred and be continuing and the KSURE Covered Facility Loans have been accelerated pursuant to Section 8.03 (Acceleration Upon Bankruptcy) or Section 8.04 (Acceleration Upon Other Event of Default), the expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by KSURE of its rights under the Security Documents, together with any necessary attorneys’ fees and court
costs. 
 “Other Connection Taxes” means, with respect to any KSURE Covered Facility Lender, any KSURE Covered Facility Agent, KSURE or any
other recipient of any payment to be made by or on account of any Obligation of the Borrower, Taxes imposed as a result of a former or present connection between such Person and the jurisdiction imposing such Tax (other than connections arising from
such Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Financing Document, or
sold or assigned an interest in any KSURE Covered Facility Loan or Financing Document). 
 “Other Taxes” means any and all present or
future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made under any Financing Document or from the execution, delivery or enforcement of, or otherwise with respect to, any
Financing Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 4.04 (Obligation to Mitigate)). 

“Participant” has the meaning provided in Section 11.04(d) (Assignments). 

“Participant Register” has the meaning provided in Section 11.04(d) (Assignments). 

“Platform” has the meaning provided in Section 11.11(i) (Notices and Other Communications). 

“Projected Balance” means, for any Fiscal Quarter (or portion thereof), the principal amount of the KSURE Covered Facility Loan that the
Borrower expects to be outstanding in such Fiscal Quarter (or portion thereof) as shown in Exhibit E based on the Borrower’s current expectation as of the date of Closing Date, as such Exhibit E may be amended from time to time
pursuant to Section 7.02 (Exhibit E Updates). 

  
 A-9 

 “Quarterly KSURE Premium” means, for any Fiscal Quarter (or portion thereof), (i) 0.45%,
multiplied by (ii) the quotient of (A) the number of days in such Fiscal Quarter (or, (x) for purposes of the calculation of the Guarantee Premium payable on the Closing Date, the number of days from the Closing Date to the end of the
Fiscal Quarter in which the Closing Date occurs, and (y) for purposes of the calculation under Section 3.11(b)(B) (Fees), the number of days from the date of the applicable Additional Advance to the end of the Fiscal Quarter in
which such Additional Advance occurs), divided by (B) 360. 
 “Rate Determination Notice” has the meaning provided in
Section 4.02 (Inability to Determine Interest Rates). 
 “Register” has the meaning provided in Section 2.03(e)
(Borrowing of Loans). 
 “Required Lenders” means at any time, the KSURE Covered Facility Lenders holding in excess of fifty percent
(50.00%) of the sum of (a) the aggregate undisbursed KSURE Covered Facility Commitments, plus (b) the then aggregate outstanding principal amount of the KSURE Covered Facility Loans (excluding in each such case any KSURE Covered
Facility Lender that is a Defaulting Lender, a Loan Party, the Sponsor, a Material Project Party or an Affiliate or Subsidiary thereof, and each KSURE Covered Facility Commitment and any outstanding principal amount of any KSURE Covered Facility
Loan of any such KSURE Covered Facility Lender). 
 “Starting Point of Credit” means the earlier of the date on which (a) the KSURE
Covered Facility has been fully drawn and (b) Substantial Completion of Subproject 3 (as defined in the Stage 2 EPC Contract) has occurred. 

“Substitute Basis” has the meaning provided in Section 4.02 (Inability to Determine Interest Rates). 

“Supermajority Lenders” means at any time, KSURE Covered Facility Lenders holding in excess of sixty six and two-thirds percent
(66.66%) of the sum of (a) the aggregate undisbursed KSURE Covered Facility Commitments, plus (b) the then aggregate outstanding principal amount of the KSURE Covered Facility Loans (excluding in each such case any KSURE Covered
Facility Lender that is a Defaulting Lender, a Loan Party, the Sponsor, a Material Project Party or an Affiliate or Subsidiary thereof, and each KSURE Covered Facility Commitment and any outstanding principal amount of any KSURE Covered Facility
Loan of any such KSURE Covered Facility Lender). 
 “Trade Date” has the meaning provided in Section 11.04(b) (Assignments).

 “U.S. Tax Compliance Certificate” has the meaning provided in Section 4.06(e) (Taxes - Status of Lenders). 

  
 A-10 

 “United States Person” means a “United States person” as defined in
Section 7701(a)(30) of the Code. 
 “Withholding Agent” means the Borrower and the KSURE Covered Facility Agent. 

  
 A-11Exhibit 10.1

	
 

SECURITIES PURCHASE AGREEMENT

 

by and between

 

META FINANCIAL GROUP, INC.

 

and

 

CONSECTOR PARTNERS MASTER FUND, LP

 

June 25, 2015

 

 

TABLE OF CONTENTS

 

	 	 	 	
Page

	 	 	 	 
	
1.

	 	
PURCHASE AND SALE OF COMMON STOCK

	
1

	 	 	 	 
	 	
(a)

	
Shares of Common Stock

	
1

	 	
(b)

	
Closing

	
1

	 	
(c)

	
Purchase Price

	
2

	 	
(d)

	
Form of Payment

	
2

	 	 	 	 
	
2.

	 	
BUYER’S REPRESENTATIONS AND WARRANTIES

	
2

	 	 	 	 
	 	
(a)

	
Organization; Authority

	
2

	 	
(b)

	
No Public Sale or Distribution

	
2

	 	
(c)

	
Accredited Investor Status; Sophistication

	
2

	 	
(d)

	
Reliance on Exemptions

	
3

	 	
(e)

	
Certain Securities Transactions

	
3

	 	
(f)

	
Information

	
3

	 	
(g)

	
No Governmental Review

	
3

	 	
(h)

	
Transfer or Resale

	
4

	 	
(i)

	
Legends

	
4

	 	
(j)

	
No Conflicts

	
5

	 	
(k)

	
Bank Regulatory Agencies

	
5

	 	
(l)

	
Status of the Buyer

	
6

	 	
(m)

	
Stock Ownership

	
6

	 	
(n)

	
Residency

	
6

	 	
(o)

	
No Broker

	
6

	 	 	 	 
	
3.

	 	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

	
7

	 	 	 	 
	 	
(a)

	
Organization and Qualification

	
7

	 	
(b)

	
Status of Company and Subsidiaries

	
7

	 	
(c)

	
Authorization; Enforcement; Validity

	
8

	 	
(d)

	
Issuance of Shares; No Restrictions on Transfer

	
8

	 	
(e)

	
No Conflicts

	
8

	 	
(f)

	
Consents

	
8

	 	
(g)

	
No General Solicitation; Placement Agent’s Fees

	
9

	 	
(h)

	
No Registration Due to Integrated Offering

	
9

	 	
(i)

	
Application of Takeover and Other Protections; Rights Agreement

	
9

	 	
(j)

	
SEC Documents; Financial Statements

	
9

	 	
(k)

	
Accuracy of Information

	
10

	 	
(l)

	
Absence of Certain Changes.

	
11

	 	
(m)

	
No Undisclosed Liabilities

	
11

	 	
(n)

	
Conduct of Business; Regulatory Permits

	
12

	 	
(o)

	
Investment Company Status

	
12

 

i

	 	
(p)

	
Transactions With Affiliates

	
13

	 	
(q)

	
Agreements with Regulatory Agencies

	
13

	 	
(r)

	
Equity Capitalization

	
14

	 	
(s)

	
Subsidiaries

	
14

	 	
(t)

	
Absence of Litigation

	
15

	 	
(u)

	
Properties and Leases

	
15

	 	
(v)

	
Insurance

	
15

	 	
(w)

	
Tax Status

	
15

	 	
(x)

	
Manipulation of Price

	
16

	 	
(y)

	
Shell Company Status

	
16

	 	
(z)

	
U.S. Real Property Holding Corporation Status

	
16

	 	
(aa)

	
Allowance for Possible Loan Losses

	
16

	 	
(bb)

	
Intellectual Property

	
16

	 	
(cc)

	
No Disqualification Events

	
16

	 	 	 	 
	
4.

	 	
COVENANTS.

	
17

	 	 	 	 
	 	
(a)

	
Form D and Blue Sky

	
17

	 	
(b)

	
Reports

	
17

	 	
(c)

	
Listing

	
17

	 	
(d)

	
Conduct of the Business

	
18

	 	
(e)

	
Access to Information

	
18

	 	
(f)

	
Efforts to Consummate Transaction; Cooperation

	
19

	 	
(g)

	
NASDAQ Stock Issuance Notice

	
19

	 	
(h)

	
Expenses

	
19

	 	
(i)

	
Pledge of Shares

	
19

	 	
(j)

	
Disclosure of Transactions and Other Material Information

	
19

	 	
(k)

	
Certain Future Actions.

	
20

	 	
(l)

	
Standstill

	
23

	 	
(m)

	
Stock Certificates

	
23

	 	
(n)

	
Disclosure Letter Updates

	
24

	 	
(o)

	
Disqualification Events

	
24

	 	
(p)

	
Use of Proceeds

	
24

	 	 	 	 
	
5.

	 	
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL

	
24

	 	 	 	 
	
6.

	 	
CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE

	
25

	 	 	 	 
	
7.

	 	
SURVIVAL AND INDEMNIFICATION

	
27

	 	 	 	 
	 	
(a)

	
Survival

	
27

	 	
(b)

	
Indemnification

	
27

	 	
(c)

	
Procedure

	
28

	 	
(d)

	
Reimbursement

	
29

	 	 	 	 
	
8.

	 	
TERMINATION

	
29

	 	 	 	 
	 	
(a)

	
Termination by Mutual Agreement

	
29

	 	
(b)

	
Termination for Failure to Close

	
29

 

ii

 

	 	
(c)

	
Termination for Breach

	
29

	 	
(d)

	
Effects of Termination

	
29

	 	 	 	 
	
9.

	 	
MISCELLANEOUS

	
30

	 	
(a)

	
Definitions

	
30

	 	
(b)

	
Governing Law; Jurisdiction; Jury Trial

	
36

	 	
(c)

	
Counterparts

	
36

	 	
(d)

	
Headings

	
36

	 	
(e)

	
Severability

	
36

	 	
(f)

	
Entire Agreement; Amendments

	
37

	 	
(g)

	
Notices

	
37

	 	
(h)

	
Successors and Assigns

	
38

	 	
(i)

	
No Third Party Beneficiaries

	
38

	 	
(j)

	
Further Assurances

	
38

	 	
(k)

	
No Strict Construction

	
38

	 	
(l)

	
Remedies

	
38

	 	
(m)

	
Acknowledgment Regarding Buyer’s Shares

	
38

	 	
(n)

	
Buyer’s Acknowledgments Regarding Other Private Placements

	
39

	 	
(o)

	
Interpretive Matters

	
39

 

Schedules

Schedule 9(a) Knowledge of the Company

Disclosure Letter

Exhibits

Exhibit A Form of Registration Rights Agreement

 

iii

SECURITIES PURCHASE AGREEMENT

SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of June 25, 2015, by and between Meta Financial Group, Inc., a Delaware corporation, with headquarters located at 5501 South Broadband Lane, Sioux Falls, South Dakota 57108 (the “Company”), and Consector Partners Master Fund, LP, a limited partnership organized and existing under the laws of the Cayman Islands (the “Buyer”).  Certain defined terms used herein are listed in Section 9(a).

 

WHEREAS:

 

A.                 Each of the Company and the Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.                   The Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, certain shares of common stock, par value $0.01, of the Company (the “Common Stock”).

 

C.                  Contemporaneously with and as a condition to the Closing, the Company and the Buyer will enter into a Registration Rights Agreement pursuant to the terms of which the Company shall file a registration statement with respect to the resale of the shares of Common Stock purchased by the Buyer hereunder.

 

D.                  The Company desires to issue and sell additional shares of Common Stock pursuant to one or more other private placements with Other Investors, which sales are intended to close simultaneously with the Closing hereunder or at such other times as the parties thereto shall agree (the “Other Private Placements”).

 

E.                   The Company’s Board of Directors has approved the transactions contemplated by this Agreement and the Other Private Placements.

 

NOW, THEREFORE, the Company and the Buyer hereby agree as follows:

 

1.                   PURCHASE AND SALE OF COMMON STOCK.

 

(a)           Shares of Common Stock.  Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Company shall issue and sell to the Buyer, and the Buyer agrees to purchase from the Company, on the Closing Date, 186,134 shares of Common Stock (the number of shares of Common Stock so purchased by the Buyer is referred to herein as the “Shares”).

 

(b)           Closing.  The closing (the “Closing”) of the purchase of the Shares by the Buyer shall occur at the offices of Katten Muchin Rosenman LLP, 525 W. Monroe Street, Chicago, IL 60661. The date and time of the Closing (the “Closing Date”) shall be substantially concurrently with the consummation of the Acquisition, subject to the satisfaction or waiver (to the extent permitted by applicable law) of the conditions to the Closing set forth in Sections 5 and 6 below by the parties hereto (other than those conditions required to be satisfied on the Closing Date, in which case such conditions shall have been so satisfied or waived as of the Closing Date) or such other date and time as is mutually agreed to by the Company and the Buyer.

 

(c)            Purchase Price.  The aggregate purchase price for all the Shares to be purchased by the Buyer (the “Purchase Price”) shall be an amount equal to $8,000,039.32.

 

(d)           Form of Payment.  On the Closing Date, (i) the Buyer shall pay the Purchase Price to the Company for the Shares to be issued and sold to the Buyer at the Closing, by wire transfer of immediately available funds in accordance with the Company’s written wire instructions which shall be given to the Buyer in writing not later than one (1) day prior to the Closing Date, and (ii) the Company shall instruct its transfer agent, Computershare Trust Company, N.A. (the “Transfer Agent”), to issue and deliver to the Buyer the Shares in a single stock certificate, free and clear of all restrictive legends (except as expressly provided in Section 2(i) hereof), evidencing the number of Shares being purchased by the Buyer.

 

2.                   BUYER’S REPRESENTATIONS AND WARRANTIES.As of the date hereof, and as of the Closing Date, the Buyer represents and warrants that:

 

(a)           Organization; Authority.  The Buyer is a limited partnership duly formed, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and each other Transaction Document to which it is or will be a party and otherwise to carry out its obligations hereunder and thereunder. This Agreement and each other Transaction Document to which the Buyer is or will be a party have been, or when executed and delivered will have been, duly authorized, executed and delivered by the Buyer and constitute or, when executed and delivered, will constitute the legal, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(b)           No Public Sale or Distribution.  The Buyer is acquiring the Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempt from the registration requirements under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Shares for any minimum or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption from the registration requirements under the 1933 Act. The Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to resell or distribute any of the Shares in violation of the 1933 Act.

 

(c)            Accredited Investor Status; Sophistication.

 

(i)                  The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

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(ii)                 The Buyer has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of the type contemplated hereby that it is capable of (A) evaluating the merits and risks of an investment in the Shares and making an informed investment decision, (B) protecting its own interests (financially or otherwise), and (C) bearing the economic risk of such investment for an indefinite period of time.

 

(d)           Reliance on Exemptions.  The Buyer understands that the Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Shares.

 

(e)           Certain Securities Transactions.  During the period (the “Pre-Announcement Period”) beginning with the date on which the Buyer commenced discussions with the Company in respect of the transactions contemplated hereby and ending on the date of the Pre-Closing 8-K filing (as defined below), neither the Buyer nor any Affiliate controlled by the Buyer, nor to the knowledge of the Buyer any Affiliate controlling the Buyer or under common control with the Buyer, has entered, or will enter, into any transaction in respect of or involving the Common Stock or any Convertible Securities or Options, including any purchase or sale, derivative or hedging transaction, other than the transactions contemplated by this Agreement.  Without limiting the foregoing, during the Pre-Announcement Period, the Buyer has not and will not engage in any transaction constituting a “short sale” (as defined in Rule 200 of Regulation SHO under the Securities Exchange Act of 1934, as amended (the “1934 Act”)) of shares of Common Stock or establish an open “put equivalent position” (within the meaning of Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock.

 

(f)            Information.  The Buyer and its advisors, if any, have received all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Shares which have been requested by the Buyer. The Buyer and its advisors, if any, have been afforded the opportunity to ask questions of, and have received answers from, the Company regarding the Company and the transactions contemplated hereby.  Neither such inquiries nor any other due diligence investigations conducted by the Buyer or its advisors or representatives, nor any other statement made by Buyer in this Section 2, shall modify, amend or affect the Company’s representations and warranties contained herein or the Buyer’s right to rely thereon. The Buyer understands that its investment in the Shares involves a high degree of risk. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares.

 

(g)           No Governmental Review.  The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

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(h)           Transfer or Resale.  The Buyer understands that:

 

(i)                 the Shares have not been and, except as provided in the Registration Rights Agreement, are not being registered under the 1933 Act or any state securities Laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder and sold, assigned or transferred pursuant to an effective registration statement, (B) the Buyer shall have delivered to the Company an opinion of counsel reasonably acceptable to the Company, which opinion shall be in a form reasonably acceptable to the Company and the transfer agent for the Common Stock, to the effect that such Shares to be sold, assigned or transferred have been or are being sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Buyer provides the Company with reasonable assurance, and certifications to the effect, that (I) such Shares have been or are being sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (“Rule 144”) or Rule 144A promulgated under the 1933 Act (or successor rule thereto) (“Rule 144A”) or (II) the Buyer is not an Affiliate of the Company and the Shares can then be sold by the Buyer pursuant to Rule 144 without any restrictions or limitations thereunder and without compliance with the current public information requirement thereof;

 

(ii)                any sale of the Shares made in reliance on Rule 144 or Rule 144A shall be made in accordance with the terms of Rule 144 or Rule 144A, as applicable, and, further, if Rule 144 or Rule 144A is not applicable, any resale of the Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and

 

(iii)               except as set forth in the Registration Rights Agreement, neither the Company nor any other Person is under any obligation to register the Shares under the 1933 Act or any state securities Laws or to comply with the terms and conditions of any exemption thereunder.

 

The Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Shares and such pledge of Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and, except as required by applicable Law, the Buyer shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement, including this Section 2(h), in connection with such a pledge.

 

(i)            Legends.  The Buyer understands that the stock certificates representing the Shares, except as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates in violation of the restrictions on transfer set forth herein):

 

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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY AND THE TRANSFER AGENT FOR THE COMPANY’S COMMON STOCK, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

 

The legend set forth above shall be removed and the Company shall issue one or more certificates without such legend to the holder of the Shares upon which it is stamped, unless otherwise required by state securities Laws, if (i) such Shares are registered for resale and shall be resold pursuant to an effective registration statement under the 1933 Act, (ii) the Buyer shall have delivered to the Company an opinion of counsel reasonably acceptable to the Company, which opinion shall be in a form reasonably acceptable to the Company and the transfer agent for the Common Stock, to the effect that such Shares may be freely sold without restriction or limitation without registration under the 1933 Act, or (iii) such holder provides the Company with reasonable assurance, and certification to the effect, that (A) the Shares have been or are being sold, assigned or transferred pursuant to Rule 144 or Rule 144A or (B) such holder is not an Affiliate of the Company and the Shares can be sold by such holder pursuant to Rule 144 without any restrictions or limitations under Rule 144 and without compliance with the current public information requirement thereof.

 

(j)             No Conflicts.  The execution, delivery and performance by the Buyer of this Agreement and the other Transaction Documents to which it is or will be a party and the consummation by the Buyer of the transactions contemplated hereby and thereby, will not (i) result in a violation of the organizational or formation documents of the Buyer, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Buyer is a party, or (iii) result in a violation of any Law (including federal and state securities Laws) applicable to the Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Buyer to perform its obligations hereunder.

 

(k)            Bank Regulatory Agencies.  Neither the Buyer nor its Affiliates is required to obtain any consent, authorization or order of, or make any filing or registration with, any bank regulatory authority or agency, including, but not limited to, the Federal Reserve, in order for the Buyer to execute or deliver this Agreement or any of the other Transaction Documents to which it is or will be a party or perform any of its obligations under or as contemplated by this Agreement or any of the other Transaction Documents to which it is or will be a party in accordance with the terms hereof or thereof. Without limiting the generality of the foregoing sentence, the Buyer is not in “control” (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) and has not acted in concert, and is not “acting in concert” within the meaning of 12 C.F.R. §238.31(b)(2) or (d), with any Person (including any of its Affiliates) to knowingly participate in joint activity or parallel action towards a common goal of acquiring control of the Company, whether or not pursuant to an express agreement, such that it would result in the Buyer or any of its Affiliates to be determined by the Federal Reserve (A) to have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) to have acquired, or to be attempting to acquire, control (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) of the Company or any Subsidiary, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), (C) to be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223, or (D) to be an “insider” (as defined in 12 C.F.R. § 215.2) of the Company or any Subsidiary such that any transactions between the Buyer and its Affiliates, on the one hand, and the Company and such Subsidiary, on the other, would be subject to compliance with Regulation O of 12 C.F.R. § 215.

 

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(l)            Status of the Buyer.  Neither the Buyer nor any of its Affiliates shall, as a result of the Buyer entering into, or performing under, this Agreement and the other Transaction Documents to which it is or will be a party (A) have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) be in “control” of the Company or any Subsidiary, as such term is used in 12 C.F.R. Part 238, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), or (C) be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223.

 

(m)           Stock Ownership.  Neither the Buyer nor any of its Affiliates own beneficially or of record any Common Stock or other securities of the Company other than (i) in the case of the Buyer,  as of the Closing Date, the Shares purchased by it pursuant to this Agreement, and (ii) in the case of any such Affiliate, shares of capital stock of the Company that are held through the mutual fund holdings of such Affiliate.

 

(n)           Residency.  The Buyer is formed under the Laws of the Cayman Islands and its principal place of business is located in the State of New York.

 

(o)           No Broker.  The Buyer has not engaged any broker or other similar agent in connection with its purchase of the Shares.

 

3.                    REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents and warrants to the Buyer as of the date hereof and as of the Closing Date that, except as otherwise disclosed or incorporated by reference and readily apparent in: (i) the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, or any of its other reports and forms filed with or furnished to the SEC under Section 12, 13, 14 or 15(d) of the 1934 Act after September 30, 2014 and publicly available before the date of this Agreement and, solely with respect to the representations and warranties made by the Company in this Agreement as of the Closing Date, all such other reports and forms filed or furnished by the Company with the SEC under the 1934 Act after the date of this Agreement and publicly available before the Closing Date (in each case including any amendments or supplements thereto, but excluding risk factors and/or any other disclosures of risks included in any forward-looking statement disclaimers or other statements that are similarly nonspecific and are predictive and forward-looking in nature); or (ii) the disclosure letter dated as of the date hereof separately provided to the Buyer in connection with, and containing qualifications or information with respect to the provisions of, this Agreement and, with respect to the representations and warranties made by the Company in this Agreement as of the Closing Date, as set forth in any disclosure letter delivered to the Buyer prior to the Closing Date pursuant to Section 4(n) hereof solely for purposes of the representations and warranties made by the Company in this Agreement as of the Closing Date (such disclosure letter, and, as applicable, as supplemented by the disclosure schedules delivered pursuant to Section 4(n) hereof, the “Disclosure Letter”), it being agreed that a disclosure set forth on any particular Schedule of the Disclosure Letter shall constitute disclosure on each other Schedule thereof provided it is readily apparent that the information so disclosed on the first Schedule shall apply to such other Schedule or the representation and warranty as to which such Schedule relates.

 

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(a)           Organization and Qualification.  The Company and the Subsidiaries other than MetaBank are entities duly organized and validly existing and in good standing, and MetaBank is duly organized and validly existing, under the Laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted. Each of the Company and the Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect.

 

(b)           Status of Company and Subsidiaries.  The Company is a savings and loan holding company under the Home Owners’ Loan Act of 1933, as amended (“HOLA”), regulated and supervised primarily by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). MetaBank is a federally chartered stock savings bank duly organized and validly existing under HOLA and regulated and supervised primarily by the Office of the Comptroller of the Currency (the “OCC”). The deposit accounts of MetaBank are insured up to applicable limits by the Deposit Insurance Fund, which is administered by the Federal Deposit Insurance Corporation (the “FDIC”), and no proceedings for the termination or revocation of such insurance are pending or, to the Knowledge of the Company, threatened. The federal stock savings bank charter of MetaBank complies in all material respects with applicable Law.  MetaBank is considered “well capitalized” under the prompt corrective action provisions of the Federal Deposit Insurance Act (12 U.S.C. § 1831o and 12 C.F.R. Part 565).

 

(c)           Authorization; Enforcement; Validity.  The Company has the requisite power and authority to enter into and perform its obligations under the Transaction Documents and to issue the Shares in accordance with the terms hereof. The execution and delivery by the Company of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including the issuance of the Shares, have been duly authorized by the Company’s board of directors (the “Board of Directors”).  No further corporate consent or authorization is required by the Company, the Board of Directors or the Company’s stockholders in connection with the execution and delivery by the Company of this Agreement or any of the other Transaction Documents and the performance of the Company’s obligations hereunder and thereunder, including the issuance of the Shares.  This Agreement has been, and when executed and delivered by the Company at the Closing, each other Transaction Document will be, duly executed and delivered by the Company and constitute (or when executed and delivered will constitute) the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

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(d)           Issuance of Shares; No Restrictions on Transfer.  Upon the issuance of and payment for the Shares in accordance with this Agreement, such Shares will be validly issued, fully paid and nonassessable, and free and clear of all liens and/or restrictions on transfer (other than restrictions on transfer provided for by applicable federal and state securities Laws or expressly provided for herein) and will not be subject to preemptive rights of any other stockholder of the Company.  Subject to the accuracy of the representations and warranties of the Buyer in this Agreement, the offer and sale by the Company of the Shares to the Buyer hereunder will be exempt from registration under the 1933 Act.

 

(e)           No Conflicts.  Except as set forth on Schedule 3(e) of the Disclosure Letter, the execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby (including the issuance of the Shares) will not (i) violate the Certificate of Incorporation or the Bylaws, (ii) violate, conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of the Subsidiaries is a party, (iii) assuming the filing of a Form D and state securities Law filings, and such filings or notices as are required by the Principal Market (or the rules and regulations thereof), result in a violation of any Law, or rules and regulations of the Principal Market, applicable to the Company or any of the Subsidiaries or by which any property or asset of the Company or any of the Subsidiaries is bound or affected or (iv) result in or require the creation or imposition of any lien upon or with respect to any of the properties or assets of the Company or any of the Subsidiaries, except in the case of clauses (ii) and (iv), as would not reasonably be expected to have a Material Adverse Effect.

 

(f)            Consents.  Neither the Company nor any of the Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency (including the OCC or the Federal Reserve), or any regulatory or self‐regulatory agency (including the Principal Market) or any other Person in order for the Company to execute, deliver or perform any of its obligations under or contemplated by this Agreement in accordance with the terms hereof, other than (i) the filing with the SEC of a Form D and any the filings contemplated by Section 4(j), (ii) any other filings as may be required by any state securities agencies, and (iii) such filings as are required by the Principal Market (or the rules and regulations thereof).

 

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(g)           No General Solicitation; Placement Agent’s Fees.  None the Company or any of the Subsidiaries or any of their Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Shares.  The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by or on behalf of the Buyer or any of the Other Investors) relating to or arising out of the transactions contemplated hereby.  The Company shall pay, and hold the Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any fee claimed by any placement agent, financial advisor or broker claiming to have been engaged by the Company, or to otherwise have been acting on the Company’s behalf, in connection with the transactions contemplated hereby.  Neither the Company nor any of the Subsidiaries has engaged any placement agent or other similar agent in connection with the sale of the Shares.

 

(h)           No Registration Due to Integrated Offering.  None of the Company, the Subsidiaries, any of the Affiliates of the Company, and any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the offer or sale to the Buyer of any of the Shares under the 1933 Act.  None of the Company or the Subsidiaries or any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration of the offer or sale to the Buyer of any of the Shares under the 1933 Act (except as contemplated by the Registration Rights Agreement).

 

(i)            Application of Takeover and Other Protections; Rights Agreement.  The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation or any certificates of designations or the Laws of the jurisdiction of its formation or incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including the Company’s issuance of the Shares and the Buyer’s ownership of the Shares.

 

(j)            SEC Documents; Financial Statements.

 

(i)            Except as set forth on Schedule 3(j)(i) of the Disclosure Letter, since September 30, 2014, the Company has timely filed with or furnished to the SEC all forms, reports, schedules, statements, certificates and other documents required to be filed by it with or furnished by it to the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed or furnished since September 30, 2014 and prior to the date hereof being hereinafter referred to as the “SEC Documents”).  As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act, and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with or furnished to the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  There are no outstanding unresolved written comments from the SEC with respect to any SEC Document.

 

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(ii)                As of their respective dates, the consolidated financial statements of the Company and the Subsidiaries included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing.  Such financial statements (A) have been prepared from, and are in accordance in all material respects with, the books and records of the Company and the Subsidiaries, (B) have been prepared in accordance with GAAP, consistently applied, during the periods involved (except (1) as may be otherwise indicated in such financial statements or the notes thereto, or (2) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements), and (C) fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations, changes in stockholders’ equity and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end adjustments).  Since the date of the most recent balance sheet included in the SEC Documents, the Company has not effected any change in any method of accounting or accounting practice, except for any such change required because of a concurrent change in GAAP, nor has it been advised by its independent registered accounting firm or any Governmental Entity that any such change in method of accounting or accounting practice is appropriate.

 

(iii)               Solely to the extent that the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated by the SEC and the Principal Market thereunder (collectively, the “Sarbanes-Oxley Act”) have been applicable to the Company, the Company is in compliance in all material respects with any provision of the Sarbanes-Oxley Act applicable to the Company.

 

(k)           Accuracy of Information.  All factual information, taken as a whole, furnished by or on behalf of the Company in writing to the Buyer on or prior to the date of this Agreement for purposes of this Agreement and all other such factual information, taken as a whole, furnished by the Company on behalf of itself and the Subsidiaries in writing to the Buyer pursuant to the terms of this Agreement does not, when taken together with the SEC Documents, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; provided, however, that with respect to any projected financial information or forward-looking statements, business assumptions, strategic plans or similar information, the Company represents only that such information was prepared in good faith based upon assumptions, and subject to such qualifications, believed to be reasonable at the time.  The Company understands and confirms that the Buyer will rely on the representations and warranties contained in this Section 3 in effecting transactions in securities of the Company.

 

(l)                  Absence of Certain Changes.  

 

(i)            Except as disclosed in Schedule 3(l)(i) of the Disclosure Letter or in the SEC Documents, since September 30, 2014, no event or events have occurred that, individually or in the aggregate, has had, or would reasonably be expected to have, a Material Adverse Effect.

 

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(ii)                Except as set forth in Schedule 3(l)(ii) of the Disclosure Letter or in the SEC Documents, since September 30, 2014, each of the Company and each Subsidiary has conducted its business in the ordinary course of business consistent with past practice, and during such period neither the Company nor any Subsidiary has:

 

(A)           issued any note, bond, or other debt security or created, incurred, assumed, or guaranteed any Indebtedness for borrowed money or capitalized lease obligation, individually or in the aggregate, in excess of $250,000;

 

(B)            (x) acquired any other Person (or any significant business, portion or division thereof), whether by merger, consolidation or reorganization or by purchase of such Person’s assets or capital stock or otherwise and/or (y) terminated and/or made material modifications to any material provisions of any agreements evidencing or relating to the transactions described in the preceding clause (x);

 

(C)            incurred any material loss except for losses adequately provided for on the Company’s most recent balance sheet included in the SEC Documents and expenses associated with this transaction;

 

(D)            in the case of the Company, declared or paid any dividends;

 

(E)            sold any material assets outside the ordinary course of business;

 

(F)            experienced any material change in asset concentrations as to customers or industries or in the nature and source of its liabilities or in the mix of interest-bearing versus noninterest-bearing deposits such that any such material change has had, or can reasonably be anticipated to have, a Material Adverse Effect; or

 

(G)            committed to any of the foregoing.

 

(iii)              Neither the Company nor any of the Subsidiaries has taken any steps to seek protection pursuant to any bankruptcy Law nor does the Company have any Knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual Knowledge of any fact that would reasonably lead a creditor to do so.  The Company and the Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent.

 

(m)           No Undisclosed Liabilities.  Neither the Company nor any of the Subsidiaries is subject to any liabilities or obligations of any nature (absolute, accrued, contingent or otherwise) which are not properly reflected or reserved against in the Company’s financial statements included in the SEC Documents to the extent required to be so reflected or reserved against in accordance with generally accepted accounting principles in the United States except for, since the date of the most recent balance sheet included in the SEC Documents, liabilities or obligations (i) that are listed or disclosed in Schedule 3(m) included in the Disclosure Letter, (ii) arising in the ordinary course of business consistent with past practices, (iii) incurred under this Agreement or the securities purchase agreements entered into with Other Investors in connection with the Other Private Placements or in connection with the transactions contemplated hereby or thereby, or (iv) that have not had, and would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

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(n)           Conduct of Business; Regulatory Permits.

 

(i)                 The Company is not in violation of any term of its Certificate of Incorporation, any certificate of designation, preferences or rights of any outstanding series of its preferred stock or its Bylaws.  No Subsidiary is in violation of any term of its certification of incorporation or bank charter (as the case may be), any certificate of designation, preferences or rights of any outstanding series of its preferred stock or its bylaws (as amended, if at all).

 

(ii)                The Company is not in violation in any material respect of any of the rules, regulations or requirements of the Principal Market and has no Knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future.  Since September 30, 2014, (A) the Common Stock has been listed on the Principal Market, (B) trading in the Common Stock has not been suspended by the SEC or the Principal Market (other than pursuant to ordinary marketwide circuit breakers and excluding ordinary temporary suspensions in connection with announcements of material Company news) and (C) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market.

 

(iii)               The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary for them to own or lease their properties and assets and to conduct their respective businesses as presently conducted, except where the failure to possess such certificates, authorizations or permits has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.  The Company and the Subsidiaries have complied with and are not in default or violation in any respect of any Law, policy or guideline of any Governmental Entity, other than such defaults or violations that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.  To the Knowledge of the Company, neither the Company nor any of the Subsidiaries is under investigation with respect to, or has been threatened to be charged with or given notice of, any violation of any Law, policy or guideline of any Governmental Entity, other than such investigations or violations that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

 

(o)           Investment Company Status.  The Company is not, and upon consummation of the sale of the Shares will not be, an “investment company”, or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

(p)            Transactions With Affiliates.  Except as set forth in the SEC Documents and other than the outstanding stock options and/or unvested restricted stock disclosed on Schedule 3(p) of the Disclosure Letter, none of the officers, directors or employees of the Company or any of the Subsidiaries, or any of their respective Family Members, is presently a party to any transaction with the Company or any of the Subsidiaries (other than for services as employees, officers, directors or consultants), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from, any such officer, director, employee or Family Member, or, to the Knowledge of the Company, any corporation, partnership, trust or other entity in which any such officer, director, employee or Family Member has a substantial interest or is an officer, director, trustee or partner.

 

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(q)           Agreements with Regulatory Agencies.  Except as set forth on Schedule 3(q) of the Disclosure Letter:

 

(i)                  Since September 30, 2014, neither the Company nor any of the Subsidiaries is or has been subject to any cease and desist order, consent order, assistance agreement, capital directive, supervisory agreement or other formal agreement or memorandum of understanding with, or a party to any commitment letter or similar undertaking to, or is subject to any formal or informal order or directive by, or is a recipient of any supervisory letter from any Governmental Entity which places any restriction on the business of the Company or any Subsidiary (each, a “Regulatory Agreement”).

 

(ii)                Since September 30, 2014, neither the Company nor any Subsidiary (A) has been advised by any Governmental Entity that it is contemplating issuing or requesting (or is considering the appropriateness of issuing or requesting) any Regulatory Agreement, or (B) has any obligation to submit a capital restoration plan.

 

(iii)               Except for examinations conducted by a Governmental Entity in the ordinary course of the business of the Company and each Subsidiary, to the Knowledge of the Company, no Governmental Entity has initiated since September 30, 2014 or has pending any proceeding, enforcement action or formal investigation into the business, disclosures or operations of the Company or any Subsidiary.

 

(iv)              Since September 30, 2014, no Governmental Entity has resolved any proceeding, enforcement action or formal investigation into the business, disclosures or operations of the Company or any Subsidiary.

 

(v)               There is no unresolved violation, criticism or exception by any Governmental Entity with respect to any report or statement relating to any examination or inspection of the Company or any Subsidiary, except where such violation, criticism or exceptions would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(vi)              Since September 30, 2014, other than in the ordinary course of the Company’s business, there have been no formal inquiries by, or disagreements or disputes with, any Governmental Entity with respect to the business, operations, policies or procedures of the Company or any Subsidiary.

 

(r)            Equity Capitalization.  As of the date hereof, the authorized capital stock of the Company consists of (i) 10,000,000 shares of Common Stock, par value $.01 per share, of which as of the date of this Agreement, 6,965,129 are issued and 6,944,879 are outstanding and 800,369 shares are reserved for issuance pursuant to securities outstanding as of the date of this Agreement and exercisable or exchangeable for, or convertible into, shares of Common Stock, and (ii) 800,000 shares of preferred stock, par value $.01 per share, of which as of the date of this Agreement none are issued and outstanding.  All of such outstanding and reserved shares have been, or upon issuance will be, validly issued and fully paid and nonassessable.  Except for any shares to be issued in connection with the Acquisition, the Transaction Documents, or as disclosed in Schedule 3(r) of the Disclosure Letter:  (i) none of the Company’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) other than shares of Common Stock issuable to the Buyer hereunder or the shares of Common Stock issued to any Other Investor pursuant to any Other Private Placement, as of the date hereof there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of the Subsidiaries, or contracts or arrangements by which the Company or any of the Subsidiaries is or may become bound to issue additional capital stock of the Company or any of the Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of the Subsidiaries; (iii) except as provided in the Registration Rights Agreement to be executed with the Buyer on the Closing Date, and except for registration rights to be granted to any Other Investor pursuant to any registration rights agreement entered into by the Company in connection with any Other Private Placement, as of the date hereof there are no agreements or arrangements under which the Company or any of the Subsidiaries remains obligated to register the sale of any of their securities, whether presently outstanding or securities that may be issued subsequently, under the 1933 Act; (iv) there are no outstanding securities or instruments of the Company or any of the Subsidiaries which contain any redemption or similar provisions, and as of the date of this Agreement, there are no contracts, commitments or arrangements by which the Company or any of the Subsidiaries is or may become bound to redeem a security of the Company or any of the Subsidiaries; (v) there are no securities or instruments of the Company containing anti-dilution or similar provisions, other than provisions for equitable adjustments upon a stock split, stock dividend, combination or similar recapitalizations with respect to the Company’s capital stock; and (vi) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.  To the Company’s Knowledge, no stockholder of the Company has entered into any agreement with any other stockholder with respect to the voting of equity securities of the Company.  The Company has furnished to the Buyer true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date of this Agreement (the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date of this Agreement (the “Bylaws”).

 

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(s)            Subsidiaries.  Schedule 3(s) of the Disclosure Letter sets forth a complete and accurate list of all direct and indirect Subsidiaries as of the date of this Agreement, showing in each case as of the date of this Agreement (as to each such Subsidiary) the jurisdiction of its formation, and, with respect to each non-wholly owned Subsidiary, the number of shares, membership interests or partnership interests (as applicable) of each class of its equity interests authorized, and the number outstanding, on the date of this Agreement and the percentage of each such class of its equity interests owned (directly or indirectly) by the Company, and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights as of the date of this Agreement.  All of the outstanding equity interests in each of the Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by the Company or one or more of the Subsidiaries, free and clear of all liens.  Except as set forth in Schedule 3(s) of the Disclosure Letter, the Company or one or more of the Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable Law) to receive dividends and distributions on, all capital securities of the Subsidiaries as owned by the Company or such Subsidiary.

 

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(t)            Absence of Litigation.  Except as set forth in Schedule 3(t) of the Disclosure Letter or as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, government agency, arbiter, mediator, self-regulatory organization or body pending or, to the Knowledge of the Company, threatened against or affecting the Company or any of the Subsidiaries, or, to the Company’s Knowledge, any of the Company’s or the Subsidiaries’ officers or directors, that (i) is reasonably likely to have a Material Adverse Effect or (ii) purports to affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated by this Agreement.

 

(u)           Properties and Leases.  The Company and the Subsidiaries have good and marketable title to all real properties and all other material properties and assets that purport to be owned by them, in each case free from liens, encumbrances, claims and defects that would affect the value thereof or interfere with the use made or to be made thereof by them, except for such defects in title or liens, encumbrances and claims that would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect.  The Company and the Subsidiaries hold all leased real or personal property under valid and enforceable leases with no exceptions that would interfere with the use made or to be made thereof by them, and neither the Company nor any of the Subsidiaries has any notice of any claim of any sort that has been asserted by anyone adverse to the rights of the Company or any such Subsidiary under any such leases, or affecting or questioning the rights of such entity to the continued possession of the leased premises, except for such title exceptions or claims that would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect.

 

(v)           Insurance.  The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as companies engaged in a similar business would, in accordance with good business practice, customarily be insured.

 

(w)           Tax Status.  (i) Each of the Company and the Subsidiaries has (A) duly and timely filed (including pursuant to applicable extensions granted without penalty) all material Tax Returns required to be filed by it, (B) paid in full all Taxes due, whether or not shown as due on such Tax Returns, other than such Taxes being contested in good faith or such Taxes the nonpayment of which would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect, and (C) made adequate provision for any unpaid Taxes not yet due in the financial statements of the Company (in accordance with GAAP); (ii) no material deficiencies for any Taxes have been proposed, asserted or assessed in writing against or with respect to any Taxes due by or Tax Returns of the Company or any of the Subsidiaries, which deficiencies have not since been resolved, except for Taxes proposed, asserted or assessed that are being contested in good faith by appropriate proceedings and for which reserves adequate in accordance with GAAP have been provided in the financial statements of the Company; and (iii) there are no material liens for Taxes upon the assets of either the Company or its material Subsidiaries except for statutory liens for current Taxes not yet due or liens for Taxes that are being contested in good faith by appropriate proceedings and for which reserves adequate in accordance with GAAP have been provided in the financial statements of the Company.

 

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(x)            Manipulation of Price.  The Company has not, and to its Knowledge no one acting on its behalf has, taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale of any of the Shares to the Buyer hereunder.

 

(y)           Shell Company Status.  The Company is not, and has never been, an issuer of the type described in paragraph (i) of Rule 144.

 

(z)            U.S. Real Property Holding Corporation Status.  The Company is not, nor has ever been, a U.S. real property holding corporation within the meaning of Section 897 of the Code.

 

(aa)          Allowance for Possible Loan Losses.  The allowance for possible loan or credit losses (the “Allowance”) shown on the consolidated balance sheets of each Subsidiary, as applicable, included in the most recent SEC Documents dated prior to the date of this Agreement was, as of the dates thereof, adequate (within the meaning of GAAP and applicable regulatory requirements or guidelines) to provide for all known, reasonably anticipated or probable losses relating to or inherent in the loan and lease portfolios (including accrued interest receivables) of such Subsidiary and other extensions of credit (including letters of credit and commitments to make loans or extend credit) by such Subsidiary as of the date thereof; provided, however, that there can be no assurance that future losses will not exceed the Allowance, or that additional provisions for loan losses will not be required in future periods, and provided, further, that it is understood that the Company’s determination of the Allowance is subject to review by the Company’s bank regulator, which can require the establishment of additional general or specific allowances.

 

(bb)        Intellectual Property.  Except as would not have a Material Adverse Effect, (i) the Company owns or has the right to use all Intellectual Property necessary to conduct its business as currently conducted (the “Company Intellectual Property”) and (ii) to the Company’s Knowledge, no Person is infringing, violating or misappropriating any Company Intellectual Property.

 

(cc)         No Disqualification Events.  None of the Company, any of its predecessors, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner (as that term is defined in Rule 13d-3 under the 1934 Act) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, any “promoter” (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the Closing Date, any placement agent or dealer participating in the offering of the Shares and any of such agents’ or dealer’s directors, executive officers, other officers participating in the offering of the Shares (each, a “Covered Person” and, together, “Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”). The Company has exercised reasonable care to determine (i) the identity of each person that is a Covered Person; and (ii) whether any Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e) under the 1933 Act.  With respect to each Covered Person, the Company has established procedures reasonably designed to ensure that the Company receives notice from each such Covered Person of (i) any Disqualification Event relating to that Covered Person, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to that Covered Person; in each case occurring up to and including any Closing Date.  The Company is not for any other reason disqualified from reliance upon Rule 506 of Regulation D under the 1933 Act for purposes of the offer and sale of the Shares.

 

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4.                    COVENANTS.

 

(a)           Form D and Blue Sky.  The Company agrees to file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof to the Buyer promptly after such filing.  The Company shall, on or before the Closing Date, take such action (if any) as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Shares for sale to the Buyer at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date.  The Company shall make all filings and reports relating to the offer and sale to the Buyer of the Shares required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date.

 

(b)           Reports.  For as long as the Buyer holds the Shares, the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act from and after the date hereof and so long as the Company shall be required to do so under the 1934 Act.  For as long as the Buyer holds the Shares, if the Company is not required to file reports pursuant to the 1934 Act, it will prepare and furnish to the Buyer and make publicly available in accordance with Rule 144(c) such information as is required for the Buyer to sell the Shares under Rule 144.

 

(c)           Listing.  Subject to the occurrence of the Closing, the Company shall promptly secure the listing of all of the Shares upon the Principal Market and, at all times while the Common Stock is listed on the Principal Market, and for so long as the Buyer holds the Shares, shall maintain such listing of all Shares.  The Company shall use its commercially reasonable efforts to maintain authorization for the Common Stock for quotation on the Principal Market or any other Eligible Market, and so long as the Buyer owns at least 33% of the number of Shares originally purchased hereunder, neither the Company nor any of the Subsidiaries shall take any action which would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market or any other Eligible Market (other than in connection with a change of listing to another Eligible Market and excluding ordinary temporary suspensions in connection with announcements of material Company news).  The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(c).

 

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(d)           Conduct of the Business.  Commencing on the date hereof and ending on the earlier of the Closing Date and the date that this Agreement shall terminate in accordance with Section 8 hereof (the “Interim Period”), the Company shall, and shall cause each Subsidiary to, use commercially reasonable efforts to carry on and maintain and preserve its business in the ordinary course of business; provided, however, that nothing contained in this sentence shall limit, preclude or require any actions that the Board of Directors or the board of directors of such Subsidiary (as the case may be) may, in good faith, determine to be inconsistent with their duties or the Company’s or such Subsidiary’s obligations under applicable Law; and, provided, further, that nothing contained in this sentence shall limit or preclude the Company or such Subsidiary from terminating any contract, license, loan or other extension of credit made or extended to any borrower, customer or other obligor, or other agreement or right, or entry into the Purchase Agreement, as the Company or such Subsidiary, as the case may be, shall in its good faith judgment deem necessary, appropriate or advisable.

 

(e)           Access to Information.  During the Interim Period and upon reasonable advance written notice from the Buyer, the Company shall (and shall cause each of the Subsidiaries to) provide to officers, directors, managers, employees, accountants, counsel, consultants, advisors and representatives of the Buyer (collectively, the “Buyer Representatives”), solely for the purpose of evaluating the transactions contemplated by this Agreement, reasonable access, during normal business hours, to members of the Company Executive Team and to such other employees of the Company and the Subsidiaries as specifically approved by a member of the Company Executive Team, and to the assets, properties, agreements, books and records of the Company and the Subsidiaries.  During the Interim Period, the Company shall and shall cause each of the Subsidiaries to (i) furnish promptly to a Buyer Representative all information concerning its finances, operations, business, properties, personnel and condition (financial or otherwise), and respond to such inquiries, in each case as may from time to time be reasonably requested by such Buyer Representative, and (ii) use commercially reasonable efforts to make available during normal business hours to such Buyer Representative, upon request, the appropriate individuals (including management, personnel, employees, attorneys, accountants and other professionals) for reasonable inquiries regarding the Company’s and the Subsidiaries’ finances, operations, business, properties, personnel and condition (financial or otherwise).  Notwithstanding the foregoing provisions of this Section 4(e), nothing contained herein shall require the Company or any of the Subsidiaries to disclose any information to the extent that the Company reasonably believes that (x) such information is a trade secret or competitively sensitive proprietary information or because there exists, or the Company reasonably believes there exists, a conflict or a potential conflict of interest between the Company and the Buyer, (y) disclosure would cause a violation of any applicable Law or any confidentiality agreement or undertaking in effect and binding upon the Company or such Subsidiary or (z) disclosure would cause a risk of a loss of privilege to the Company or such Subsidiary, in which case with respect to clause (x) or (y) the parties hereto will make appropriate substitute disclosure arrangements, if such arrangements can be made by the parties using their commercially reasonable efforts and without such violation.  The Buyer acknowledges and agrees that all information so provided the Buyer and its Buyer Representatives is and shall be subject to the terms of the Confidentiality Agreement.

 

(f)            Efforts to Consummate Transaction; Cooperation.  Each party hereto shall use its commercially reasonable efforts to satisfy on a timely basis each of the covenants and conditions to be satisfied by it as provided in Sections 4, 5 and 6 of this Agreement.  Each party shall refrain from taking any action which would render any representation or warranty contained in Sections 2 and 3 hereof inaccurate in any material respect as of the Closing Date.  Each party hereto shall promptly notify the other party of (i) any event or matter that would reasonably be expected to cause any of its representations or warranties to be untrue in any material respect as of the Closing Date or that would reasonably be expected to cause any of the conditions to Closing provided in Section 5 or 6, as the case may be, not to be satisfied in the manner contemplated herein, or (ii) any action, suit or proceeding that shall be instituted or threatened against such party to restrain, prohibit or otherwise challenge the legality of any of the transactions contemplated by this Agreement.

 

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(g)           NASDAQ Stock Issuance Notice.  At least fifteen (15) days prior to the issuance of the Shares hereunder (but in any event as soon as reasonably practicable following the date hereof), the Company shall file with the NASDAQ OMX Listing Center the notice, appropriately completed, required by NASDAQ Stock Market Rule 5250(e)(2)(D) in respect of the Shares issuable hereunder and the shares of capital stock issuable in connection with the Other Private Placements, and thereafter prepare and file such amendments and supplements thereto as shall be required, and respond to such inquiries (if any) from the NASDAQ OMX Listing Center (or the Principal Market) relating thereto, in each case on a timely basis.  At the request of the Buyer, the Company shall provide copies to the Buyer of such filing and any such amendments and supplements in advance of the filing of any thereof.  The Buyer shall reasonably cooperate, in a timely manner, in connection with the Company’s obligations under this Section 4(g), including, without limitation, furnishing the Company in a timely manner upon request with all information with respect to the Buyer as may be required to be included in the NASDAQ Stock Market Rule notice filing or any amendment or supplement thereto.

 

(h)           Expenses.  Each party hereto shall be responsible for its own costs and expenses incurred by it in connection with the transactions contemplated hereby.

 

(i)            Pledge of Shares.  The Company acknowledges and agrees that the Shares may be pledged by the Buyer and that such pledge of the Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and, except as required by applicable Law, the Buyer shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement; provided, however, that the Buyer and its pledgee shall be required to provide notice to the Company and comply with the applicable provisions hereof, including the requirements of Section 2(l), in order to effect (and otherwise in connection with) any sale, transfer or assignment of the Shares to such pledgee.

 

(j)            Disclosure of Transactions and Other Material Information.  On or before 5:30 p.m., New York City time, on the fourth (4th) Business Day following (i) the date of this Agreement the Company shall issue a press release and file a current report on Form 8-K describing the terms of the transactions contemplated by this Agreement, in the form required by the 1934 Act and attaching this Agreement (and, as appropriate, any other Transaction Document) as an exhibit to such filing (including such attachment, the “Pre-Closing 8-K”), and (ii) such other matters as are required or deemed appropriate by the Company to be disclosed under Form 8-K relating to the transactions contemplated hereby, in the form required by the 1934 Act.  In addition, following the Closing, the Company may file a press release and a Form 8-K relating to the Closing of the transactions contemplated hereby to the extent deemed appropriate by the Company (the “Post-Closing 8‐K”).  A reasonable time prior to issuing any press release referred to in the previous two sentences, the Company shall provide the Buyer with a copy of the proposed press release and shall consult with the Buyer with respect to the content of such press release and Pre-Closing 8-K, or Post-Closing 8-K, as the case may be, and consider in good faith any comments proposed by the Buyer.  Subject to the foregoing, none of the Company and the Subsidiaries nor the Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that (i) the Company shall be entitled, without the prior approval of the Buyer, to make any press release or other public disclosure with respect to such transactions in substantial conformity with the Pre-Closing 8-K or the Post-Closing 8-K, as the case may be (provided that the Company shall consult with the Buyer in connection with any such press release or other public disclosure prior to its release and consider in good faith any comments proposed by the Buyer) and (ii) either party may make such disclosure as is required by applicable Law.

 

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(k)           Certain Future Actions.

 

(i)                 From the date of this Agreement and so long as the Buyer and its Affiliates, individually or collectively, shall hold any Shares, the Buyer shall not, nor shall it permit any of its Affiliates to “act in concert” within the meaning of C.F.R. §238.21(b)(2) or (D) with any Person (including any of its Affiliates) to knowingly participate in joint activity or parallel action towards a common goal of acquiring control of the Company, whether or not pursuant to an express agreement, such that it would result in Buyer or any of its Affiliates to be determined by the Federal Reserve (A) to have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) to have acquired, or to be attempting to acquire, control (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) of the Company or any Subsidiary, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), (C) to be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223, or (D) to be an “insider” (as defined in 12 C.F.R. § 215.2) of the Company or any Subsidiary such that any transactions between the Buyer and its Affiliates, on the one hand, and the Company and such Subsidiary, on the other, would be subject to compliance with Regulation O of 12 C.F.R. § 215.

 

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(ii)                From and after the Closing Date and so long as the Buyer and its Affiliates (who are known to the Company to be a holder of any Shares), individually or collectively, shall hold any Shares, if (A) the Company intends to redeem or repurchase shares of Common Stock from any holder of shares of Common Stock and such redemption or repurchase will not be offered to the holders (including the Buyer and its Affiliates known to the Company who hold Shares) of all (or substantially all) of the outstanding shares of Common Stock on a pro-rata basis (a “Non-Pro-Rata Stock Repurchase”) and (B) such Non-Pro-Rata Stock Repurchase would, immediately after completion of such Non-Pro-Rata Stock Repurchase, result in the Buyer’s and such Affiliates’ collective ownership of the Shares to exceed 9.999% of the total outstanding shares of Common Stock of the Company, as calculated for the purposes of the Bank Holding Company Act of 1956 (as amended) or HOLA (the occurrence of the events described in the foregoing clauses (A) and (B), collectively, a “Stock Reduction Triggering Event”), then the Buyer shall use its commercially reasonable efforts to sell or cause to be sold that number of Shares held by the Buyer that would, immediately after giving effect to such sale, result in the Buyer’s and such Affiliates’ collective ownership of the Shares to not exceed 9.999% of the total shares of outstanding Common Stock (such number of shares required to be sold, the “Excess Shares”), all in accordance with the provisions of this Section 4(k)(ii); provided, however, that if the Buyer then holds fewer than the number of Excess Shares that are required to be sold, then the Buyer shall use its commercially reasonable efforts to sell all such fewer Shares, and the term “Excess Shares” shall be deemed to mean such fewer number of Shares.  The Company shall give written notice to the Buyer of a Stock Reduction Triggering Event at least twenty (20) Business Days prior to effecting any such Non-Pro-Rata Stock Repurchase (such prior notice period, the “Pre-Redemption Period”).  The Buyer shall use its commercially reasonable efforts to sell or cause to be sold the Excess Shares (in a single transaction or in multiple transactions over a period of one or more Business Days) not later than the expiration of the Pre-Redemption Period provided that the Excess Shares may be then sold pursuant to an effective registration statement or pursuant to an exemption available under the 1933 Act (including under Rule 144) that would be sufficient to enable the Buyer to sell all such Excess Shares during such period; provided, however, that if there shall not be a registration statement then in effect with respect to the Excess Shares or if there shall not be an exemption available under the 1933 Act (including under Rule 144) that would be sufficient to enable the Buyer to sell all such Excess Shares during the Pre-Redemption Period, then the Pre-Redemption Period shall be automatically extended until the expiration of twenty (20) Business Days following the earlier of the first date on which (x) such registration statement shall have become so effective and (y) the Buyer shall have the right to sell such Excess Shares pursuant to an exemption from the 1933 Act sufficient to enable the Buyer to sell all such Excess Shares within a twenty (20) Business Day period.  If, with respect to any Excess Shares sold by the Buyer pursuant to this Section 4(k)(ii), the Benchmark Price (as defined below) on the date of such sale is greater than the Market Price (as defined below) on such date, then the Company shall pay to the Buyer an amount that is equal to the product of (x) the number of Excess Shares so sold on such date pursuant to this Section 4(k)(ii) and (y) the amount by which such Benchmark Price exceeds such Market Price.  Any amount required to be paid by the Company to the Buyer pursuant to this Section 4(k)(ii) shall be paid not later than three (3) Business Days following the date on which the Company is notified that the Excess Shares shall have been sold.  The Company and the Buyer agree to cooperate with all reasonable requests of the other party for purposes of more fully giving effect to and carrying out the intent and purposes of this Section 4(k)(ii), including providing to the Company such evidence and other information relating to the sale of the Excess Shares as shall be reasonably requested by the Company.  Notwithstanding anything to the contrary contained herein, the Company’s obligation to make any payment to the Buyer pursuant to this Section 4(k)(ii) shall be subject to applicable banking and bank holding company Laws and any order or directive (or similar action) of any governmental regulatory authority or agency (including the Federal Reserve) having regulatory authority over the Company.  For purposes of this Section 4(k)(ii), the following terms shall have the following meanings:

 

“Benchmark Price” means, in the case of any Excess Shares sold pursuant to this Section 4(k)(ii), (x) during the period commencing on the Closing Date and ending on the eighteen (18) month anniversary of the Closing Date, the greater of the Fair Market Value per share of the Excess Shares and the price per share paid hereunder for the Shares at the Closing, and (y) at any time after the eighteen (18) month anniversary of the Closing Date, the Fair Market Value per share of such Excess Shares.

 

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“Fair Market Value” means, in the case of any Excess Shares sold pursuant to this Section 4(k)(ii), (a) if the Common Stock is traded on an Eligible Market, the price which represents the trailing 20-trading day (including trading days on which no Common Stock were in fact traded) average of the closing “bid” price (determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours) of the Common Stock ending on (and including) the trading day immediately preceding the date that is one (1) trading day prior to the date on which such Excess Shares shall have been so sold or (b) if the Common Stock is not so traded, the fair market value (per share) of Common Stock as of the date that is one (1) trading day immediately preceding the date on which such Excess Shares shall have been sold as determined in good faith between the Company and the Buyer; provided, however, that if the Company and the Buyer do not reach an agreement as to the fair market value of such Common Stock by the date on which the Company shall be required to make any payment to the Buyer pursuant to this Section 4(k)(ii), then such fair market value shall be determined by an independent, nationally recognized investment banking firm, accounting firm or appraisal firm selected by the Buyer and reasonably acceptable to the Company and paid for by the Company and the date on which any payment required to be made by the Company to the Buyer pursuant to this Section 4(k)(ii) shall be extended until the date that is three (3) Business Days following the date on which such valuation firm shall have delivered to the Company and the Buyer its fair market value determination (which determination shall, for purposes of this Section 4(k)(ii), be conclusive and binding on the parties hereto absent manifest error).

 

“Market Price” means, with respect to any Excess Shares sold by the Buyer pursuant to this Section 4(k)(ii), the fair market value thereof, per share, based on the price that would be obtained by a seller of such Excess Shares who was acting in good faith and in a commercially reasonable manner on the date of such sale; provided, however, that if any such Excess Shares are sold at any time during which the Company’s Common Stock is listed on any national securities exchange or quoted on the over-the-counter bulletin board, then the “Market Price” shall be deemed to be the closing price of such shares of Common Stock as reported on such national securities exchange or bulletin board on the date of sale of such Excess Shares.

 

(l)             Standstill.  The Buyer hereby agrees that, during the period commencing on the Closing Date and ending on the second annual anniversary thereof (the “Standstill Period”), unless specifically invited in writing by the Company, the Buyer will not, and will not permit any director, officer or Affiliate of the Buyer to, in any manner, directly or indirectly (including by directing or causing any other Person that is not the Buyer or a director, officer or Affiliate of the Buyer):

 

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(i)                  effect or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to effect or cause or participate in or in any way assist, facilitate or encourage any other Person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in, (A) any acquisition of any securities (or beneficial ownership thereof) or rights or options to acquire any securities (or beneficial ownership thereof) of the Company or any of the Subsidiaries or Company Controlled Affiliates if, after giving effect to any such acquisition, the Buyer and/or any Buyer Controlled Entity and/or Control Group Member, either individually or in the aggregate, would beneficially own more than nine and ninety-nine one hundredths percent (9.99%) of the shares of Common Stock then outstanding, (B) any tender or exchange offer, merger or other business combination involving the Company or any of the Subsidiaries or Company Controlled Affiliates or any division or line of business of any thereof, (C) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of the Subsidiaries or Company Controlled Affiliates or any division thereof, or (D) any “solicitation” of “proxies” (as such terms are used in the proxy rules of the SEC) or consents to vote any voting securities of the Company;

 

(ii)                 form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the 1934 Act) with respect to the securities of the Company or any of the Subsidiaries or Company Controlled Affiliates;

 

(iii)               otherwise act, alone or in concert with others, to seek to control or influence the management, the board of directors or the policies of the Company or any of the Subsidiaries or Company Controlled Affiliates;

 

(iv)              take any action which would or would reasonably be expected to force the Company to make a public announcement regarding any of the types of matters set forth in clause (i) above; or

 

(v)                enter into any discussions or arrangements with any third party with respect to any of the foregoing.

 

The Buyer further agrees that it shall not, and shall not permit any director, officer or Affiliate of the Buyer to, during the Standstill Period, directly or indirectly, publicly request the Company (or its directors, officers, employees or agents) to amend or waive any provision of this Section 4(l) (including this sentence).

 

(m)           Stock Certificates.  In connection with the Closing, the Company shall instruct the Transfer Agent to issue the stock certificate representing the Shares as required by this Agreement and take such actions as shall be reasonably requested by the Transfer Agent such that such stock certificate shall be delivered to the Buyer within five (5) Business Days after the Closing Date.

 

(n)           Disclosure Letter Updates.  No later than two Business Days prior to the Closing Date, the Company shall amend or supplement the Disclosure Letter with respect to any matter or event arising or occurring after the date hereof to the extent necessary or desirable in order to make the representations and warranties being made by the Company pursuant to this Agreement as of the Closing Date true and correct as of the Closing Date.

 

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(o)           Disqualification Events.  The Company will notify the Buyer in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Covered Person.

 

(p)           Use of Proceeds.  The Company will use the proceeds from the sale of the Shares to finance the Acquisition (including to pay any expenses associated with the Acquisition).

 

5.                    CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The obligation of the Company hereunder to issue and sell the Shares to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions; provided that these conditions are for the Company’s sole benefit and (to the extent permitted by applicable Law) may be waived by the Company at any time in its sole discretion by providing the Buyer with prior written notice thereof:

 

(i)                 Other Transaction Documents.  The Buyer shall have duly executed each other Transaction Document (in the case of the Registration Rights Agreement, substantially in the form of Exhibit A hereto) and delivered each such other Transaction Document to the Company.

 

(ii)                Representations, Warranties and Covenants.  The representations and warranties of the Buyer shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects) as of such specified date), and the Buyer shall have performed, satisfied and complied with, in all material respects, the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.  The Company shall have received a certificate, executed by the General Partner of the Buyer and dated as of the Closing Date, to the foregoing effect.

 

(iii)              Purchase Price.  The Buyer shall have delivered to the Company the Purchase Price for the Shares by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company pursuant to Section 1(d).

 

(iv)              No Injunction or Restraints.  No Laws shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by any Transaction Document, nor shall there be on file any complaint by any Person seeking an order or decree, restraining, enjoining or prohibiting the transactions contemplated by any Transaction Document.

 

(v)                Governmental Filings and Consents.  All material governmental filings, consents, orders and approvals legally required to be filed or made by the Buyer for the consummation of the transactions contemplated hereby shall have been made or obtained and shall be in full force and effect.

 

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(vi)               Corporate Documents.  The Buyer shall have delivered to the Company a certificate, executed by the General Partner of the Buyer and dated as of the Closing Date, as to (A) the certificate of formation of the Buyer, as in effect at the Closing, (B) the limited partnership agreement or similar governing document of the Buyer as in effect at the Closing, and (C) the incumbency signatures of the authorized signatories of such General Partner of the Buyer executing this Agreement or any other document executed in connection with this Agreement.

 

(vii)            Other Documents.  The Buyer shall have delivered to the Company such other documents relating to the transactions contemplated by this Agreement as the Company or its counsel may reasonably request.

 

(viii)            Consummation of the Acquisition.  The Acquisition shall have been (or shall substantially concurrently with the Closing be) consummated.

 

6.                   CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE.

 

The obligation of the Buyer hereunder to purchase the Shares at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and (to the extent permitted by applicable Law) may be waived by the Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)                  Other Transaction Documents.  The Company shall have duly executed each other Transaction Document (in the case of the Registration Rights Agreement, substantially in the form of Exhibit A hereto) and delivered each such other Transaction Document to the Buyer.

 

(ii)                Stock Certificate and Transfer Agent.  The Company shall have delivered to the Buyer a copy of the instructions delivered to the Transfer Agent instructing the Transfer Agent to issue the stock certificate evidencing the Shares as required by this Agreement and deliver such stock certificate to the Buyer within five (5) Business Days after the Closing Date.

 

(iii)               Legal Opinion.  The Buyer shall have received the opinion of Katten Muchin Rosenman LLP, the Company’s outside counsel, substantially in the form approved by the Buyer prior to the execution and delivery of this Agreement, dated as of the Closing Date.

 

(iv)              Good Standing Certificate.  The Company shall have delivered to the Buyer a certificate evidencing the incorporation and good standing of the Company issued by the Secretary of State of the State of Delaware as of a date within fifteen (15) days of the Closing Date.

 

(v)                Corporate Documents.  The Company shall have delivered to the Buyer a certificate, executed by the Secretary of each of the Company and MetaBank and dated as of the Closing Date, as to (A) the resolutions consistent with Section 3(c) as adopted by the Board of Directors, (B) the Certificate of Incorporation, (C) the federal stock charter of MetaBank, as in effect at the Closing, (D) the Bylaws and the bylaws of MetaBank, as in effect at the Closing, and (E) the incumbency signatures of the officers of the Company executing each Transaction Document or any other document executed in connection with this Agreement.

 

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(vi)              Representations, Warranties and Covenants.

 

(1)         The representations and warranties of the Company set forth in Sections 3(a), 3(b), 3(c), 3(d), 3(g), 3(h), 3(i), 3(l)(i), 3(x), 3(y), 3(z) and 9(n) (the “Fundamental Representations”) shall be true and correct in all respects as of the date hereof and as of the Closing Date (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date);

 

(2)         The representations and warranties of the Company set forth in Section 3 hereof, other than the Fundamental Representations, shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect or like qualifiers, which shall be true and correct in all respects) as of the date hereof and as of the Closing Date (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects) as of such specified date);

 

(3)         The Company shall have performed, satisfied and complied with in all material respects the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date; and

 

(4)         The Buyer shall have received a certificate, executed by the Chief Executive Officer or Chief Financial Officer (or other senior executive officer reasonably acceptable to the Buyer) of the Company, dated as of the Closing Date, that the conditions set forth in each of clauses (1) through and including (3) above have been satisfied, and further certifying that the facts, events or circumstances described in updates to the Disclosure Letter and in any document filed or furnished with the SEC under the 1934 Act after the date hereof and publicly available before the Closing Date have not had, and are reasonably expected not to have, a Material Adverse Effect.

 

(vii)            No Injunction or Restraints.  No Laws shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by any Transaction Document, nor shall there be on file any complaint by any Person (other than the Buyer or its Affiliates) seeking an order or decree, restraining, enjoining or prohibiting the transactions contemplated by any Transaction Document.

 

(viii)            Number of Outstanding Shares of Common Stock.  The Company shall have delivered to the Buyer a letter from the Company’s transfer agent certifying the number of shares of Common Stock outstanding as of a date within five (5) Business Days of the Closing Date.

 

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(ix)               Common Stock Remains Listed.  The Common Stock (including the Shares) (A) shall be listed on the Principal Market and (B) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Closing Date, either (x) in writing by the SEC or the Principal Market or (y) by the Company’s falling below the minimum listing maintenance requirements of the Principal Market.

 

(x)                 Governmental Filings and Consents.  All material governmental filings, consents, orders and approvals legally required to be filed or made by the Company for the consummation of the transactions contemplated hereby shall have been made or obtained and shall be in full force and effect.

 

(xi)               Other Documents.  The Company shall have delivered to the Buyer such other documents relating to the transactions contemplated by this Agreement as the Buyer or its counsel may reasonably request.

 

(xii)             No Company Material Adverse Effect.  Since the date of this Agreement, no Material Adverse Effect shall have occurred.

 

(xiii)            Consummation of the Acquisition.  The Acquisition shall have been (or shall substantially concurrently with the Closing be) consummated.

 

7.                    SURVIVAL AND INDEMNIFICATION.

 

(a)           Survival.  Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the Buyer contained in Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 7, 8 and 9(b) shall survive the Closing and the delivery of the Shares.

 

(b)           Indemnification.  Subject to the other terms and conditions of this Section 7, the Company shall indemnify, defend and hold harmless the Buyer, its Affiliates and their respective partners, directors, officers, employees, advisors and representatives (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) against any and all Losses (including actions brought by the Buyer or the Company or any equity holders of the Company or derivative actions brought by any Person claiming through or in the Company’s name other than actions brought by the Company for breach of any of the Buyer’s representations, warranties or covenants made by it under this Agreement), proceedings or investigations (whether formal or informal), or threats thereof, based upon, resulting from, relating to or arising out of (i) any breach of any representation or warranty of the Company in this Agreement, (ii) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, or (iii) any action, suit or proceeding initiated by one or more stockholders of the Company (other than the Buyer) as a result of the transactions contemplated by this Agreement that are to be consummated on the Closing Date; provided, that if and to the extent that such indemnification is unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of such Losses which shall be permissible under applicable Laws; and, provided, further, that the Company shall have no obligation to indemnify, defend or hold harmless (or make contribution to the payment and satisfaction to) any Indemnified Party to the extent the Losses suffered by such Indemnified Party arise out of or result from a breach of any representation, warranty or covenant made or to be complied with by such Indemnified Party hereunder or the gross negligence or willful misconduct of such Indemnified Party.

 

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(c)            Procedure.  Promptly after receipt by an Indemnified Party of notice by a third party of any complaint or the commencement of any audit, investigation, action or proceeding with respect to which such Indemnified Party may be entitled to receive payment from the Company for any Losses, such Indemnified Party will notify the Company in writing following the Indemnified Party’s receipt of such complaint or of notice of the commencement of such audit, investigation, action or proceeding; provided, however, that the failure to so notify the Company in writing will not relieve the Company from liability under this Agreement with respect to such claim unless such failure to notify the Company in writing results in the forfeiture of material rights or defenses otherwise available to the Company with respect to such claim.  The Company will have the right, upon written notice delivered to the Indemnified Party within twenty (20) days thereafter, which notice shall include the Company’s written statement that it is assuming full responsibility for any Losses resulting from such audit, investigation, action or proceeding, to assume the defense of such audit, investigation, action or proceeding, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of the fees and disbursements of such counsel.  In the event, however, that the Company declines or fails to assume the defense of the audit, investigation, action or proceeding on the terms provided above or to employ counsel reasonably satisfactory to the Indemnified Party, in either case within such twenty (20) day period, then such Indemnified Party may employ counsel to represent or defend it in any such audit, investigation, action or proceeding and the Company will pay the reasonable fees and disbursements of such counsel as incurred; provided, however, that the Company will not be required to pay the fees and disbursements of more than one counsel plus appropriate local counsel for all Indemnified Parties in any jurisdiction in any single audit, investigation, action or proceeding.  In any audit, investigation, action or proceeding with respect to which indemnification is being sought hereunder, the Indemnified Party or the Company, whichever is not assuming the defense of such action, will have the right to participate in such matter and to retain its own counsel at such party’s own expense.  The Company or the Indemnified Party, as the case may be, shall at all times use reasonable efforts to keep the Company or the Indemnified Party, as the case may be, reasonably apprised of the status of the defense of any matter the defense of which they are maintaining and to cooperate in good faith with each other with respect to the defense of any such matter.  No Indemnified Party may settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder without the prior written consent of the Company, unless (i) the Company fails to assume and maintain the defense of such claim pursuant to this Section 7(c) or (ii) such settlement, compromise or consent (A) includes an unconditional release of the Company from all liability arising out of such claim, (B) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Company, and (C) does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes with the business of the Company or any of the Company’s Affiliates.  The Company may not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed), settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder unless such settlement, compromise or consent (A) includes an unconditional release of the Indemnified Party from all liability arising out of such claim, (B) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Indemnified Party, (C) does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes with the business of the Indemnified Party or any of the Indemnified Party’s Affiliates and (D) does not require payment of any amount that is not being paid by the Company.

 

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(d)           Reimbursement.  In the event the Company is obligated to indemnify for expenses, the Company shall, subject to the provisions of this Section 7, upon presentation of appropriate invoices containing reasonable detail, reimburse each Indemnified Party for all such expenses (including reasonable expenses of investigation and reasonable fees, disbursements and other charges of counsel in connection with any claim, action, suit or proceeding) as they are incurred by such Indemnified Party.  “Losses” means all losses, claims (including any claim by a third party), damages and expenses (including reasonable expenses of investigation and reasonable fees, disbursements and other charges of counsel in connection with any claim, action, suit or proceeding) actually incurred by the Indemnified Party in connection with any claim, action, suit or proceeding.

 

8.                    TERMINATION.

 

(a)            Termination by Mutual Agreement.  This Agreement may be terminated prior to the Closing by mutual written agreement of the Company and the Buyer.

 

(b)           Termination for Failure to Close.  In the event that the Closing shall not have occurred on or before 5:00 p.m., New York City Time, on September 30, 2015, either the Company or the Buyer shall have the option to terminate this Agreement at the close of business on such date or at any time thereafter, without liability to such party, by the giving of written notice of termination, unless the Closing has not occurred by reason of the failure of the party seeking to terminate this Agreement to comply in all material respects with its obligations under this Agreement.

 

(c)           Termination for Breach.  This Agreement may be terminated by the Company or the Buyer in the event the other party is in breach in any material respect of any representation, warranty, covenant or agreement contained in this Agreement such that the conditions to the nonbreaching party’s obligation to consummate the transactions contemplated by this Agreement would not be satisfied, the terminating party has notified the other party of the breach, and such breach has continued without cure for a period of ten (10) Business Days after the notice of breach.

 

(d)           Effects of Termination.  In the event of any termination of this Agreement as provided in Section 8(a), 8(b) or 8(c), this Agreement (other than this Section 8(d), Section 7 and Section 9, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; provided, that the Company will remain liable to the Buyer for any breach of this Agreement by the Company existing at the time of such termination, the Buyer will remain liable to the Company for any breach of this Agreement by the Buyer existing at the time of such termination, and the Buyer or the Company, as the case may be, may seek such remedies against the other with respect to any such breach as are provided in this Agreement or as are otherwise available at Law or in equity.

 

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9.                    MISCELLANEOUS.

 

(a)           Definitions.

 

“1933 Act” has the meaning set forth in Whereas clause A.

 

“1934 Act” has the meaning set forth in Section 2(e).

 

“Acquisition” means the first of any of the following after the date of this Agreement: (i) a consolidation, merger or other business combination of the Company or any Subsidiary, on the one hand, with or into another Person, on the other hand (including, for the avoidance of doubt, through the acquisition of equity interests in another Person), immediately after giving effect to which the Company or any Subsidiary holds, directly or indirectly, a majority of the combined voting power of the surviving entity or entities entitled to vote generally for the election of a majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (ii) an acquisition by the Company or any Subsidiary, directly or indirectly, of all or substantially all of the assets of another Person; provided that, in any such case, such transaction is approved by the Board of Directors and provides for the payment or other delivery by, or on behalf of, the Company or any Subsidiary of aggregate consideration (whether in the form of cash or otherwise) of not less than $40 million.

 

“Affiliate” means any Person controlling, controlled by or under common control with any other Person.  For purposes of this definition, “control” (including “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of securities, partnership or other ownership interests, by contract or otherwise.

 

“Agreement” has the meaning set forth in the preamble.

 

“Allowance” has the meaning set forth in Section 3(aa).

 

“Board of Directors” has the meaning set forth in Section 3(c).

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by Law to remain closed.

 

“Buyer” has the meaning set forth in the preamble.

 

“Buyer Controlled Entity” means any Person controlled, directly or indirectly, by the Buyer.

 

“Buyer Representatives” has the meaning set forth in Section 4(e).

 

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“Bylaws” has the meaning set forth in Section 3(r).

 

“Certificate of Incorporation” has the meaning set forth in Section 3(r).

 

 “Closing” has the meaning set forth in Section 1(b).

 

“Closing Date” has the meaning set forth in Section 1(b).

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Common Stock” has the meaning set forth in Whereas clause B.

 

“Company” has the meaning set forth in the preamble.

 

“Company Controlled Affiliate” means any Affiliate controlled, directly or indirectly, by the Company.

 

“Company Executive Team” means J. Tyler Haahr, Bradley C. Hanson, Troy Moore, Glen W. Herrick, Ira D. Frericks and Ronald W. Butterfield.

 

“Company Intellectual Property” has the meaning set forth in Section 3(bb).

 

“Confidentiality Agreement” means the confidentiality letter agreement, dated as of May 28, 2015, by and between Consector Capital, an Affiliate of the Buyer, and the Company.

 

“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

“Control Group Member” means any Person which directly or indirectly controls, or is under common control with, the Buyer.

 

“Convertible Securities” means any stock or securities (other than Options) convertible into or exercisable or exchangeable for shares of Common Stock.

 

“Covered Person” and “Covered Persons” has the meaning set forth in Section 3(cc).

 

“Disclosure Letter” has the meaning set forth in Section 3.

 

“Disqualification Event” has the meaning set forth in Section 3(cc).

 

31

“Eligible Market” means the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange or the Over-the-Counter Bulletin Board.

 

“Excess Shares” has the meaning set forth in Section 4(k)(ii).

 

“Family Member” means, with respect to any Person, such Person’s spouse, children, parents or siblings.

 

“FDIC” has the meaning set forth in Section 3(b).

 

“Federal Reserve” has the meaning set forth in Section 3(b).

 

“Fundamental Representations” has the meaning set forth in Section 6(vi)(1).

 

“Fundamental Terms” has the meaning set forth in Section 9(n).

 

“GAAP” means U.S. generally accepted accounting principles.

 

“Governmental Entity” means any federal, state, local or foreign, court, governmental, legislative, judicial, administrative or regulatory authority, agency, commission, body or other governmental entity or self-regulatory organization or stock exchange, including the OCC, the FDIC, the SEC and NASDAQ.

 

“HOLA” has the meaning set forth in Section 3(b).

 

“Indebtedness” of any Person means, without duplication (i) all indebtedness (including principal, interest, fees and charges) for borrowed money, but exclusive of “deposits” (as defined in 12 U.S.C. § 1813(l)), (ii) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with generally accepted accounting principles) (other than trade payables incurred in the ordinary course of business), (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness; provided that the amount of the indebtedness included in “Indebtedness” pursuant to this clause (vii) shall be limited to the fair market value of the property or asset subject to such mortgage, lien, pledge, charge, security interest or other encumbrance, and (viii) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

32

“Indemnified Party” or “Indemnified Parties” has the meaning set forth in Section 7(b).

 

“Insolvent” means, with respect to any Person, that (i) the fair value of the assets of such Person, at a fair valuation, will exceed his, her or its debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of such Person will be greater than the amount that will be required to pay the probable liability of his, her or its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) such Person will be able to pay his, her or its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) such Person will not have unreasonably small capital with which to conduct the business in which he, she or it is engaged as such business is now conducted.

 

“Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications; (v) internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests and protections.

 

“Interim Period” has the meaning set forth in Section 4(d).

 

“Knowledge of the Company” or phrases of similar effect (including the words “Known” or “Know”) means the knowledge, after reasonable investigation, of the individuals listed on Schedule 9(a) attached hereto.

 

“Law” means any statute, ordinance, license, rule, regulation, order, demand, writ, injunction, decree or judgment of any Governmental Entity, including any of the foregoing which relate to the business of banking generally, lending activities, deposit taking, money transmission, stored value cards, credit cards, savings associations, savings and loan holding companies, trust operations, government contracts, national security, and protection of classified information, including, without limitation, the Home Owners Loan Act of 1934, the Savings and Loan Holding Company Act, the Bank Secrecy Act, the United States Foreign Corrupt Practices Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Equal Credit Opportunity Act, the Community Reinvestment Act of 1977, the Gramm‐Leach‐Bliley Act, the Fair Consumer Credit Protection Act, and all regulations promulgated thereunder.

 

“Losses” has the meaning set forth in Section 7(d).

 

33

“Material Adverse Effect” means any fact, circumstance, effect, event or change (whether or not constituting a breach of a representation, warranty, covenant or agreement set forth in this Agreement) that, individually or in the aggregate with all other facts, circumstances, effects, events or changes, has a material adverse effect on the business, properties, assets, operations, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or on the Company’s ability to consummate the transactions contemplated hereby, or on the authority or ability of the Company to perform its obligations under this Agreement, but shall not include facts, circumstances, effects, events or changes: (i) generally affecting any of the industries in which the Company, taken together with the Subsidiaries, operates in the United States or elsewhere in the world or the economy or the financial or securities markets in the United States or elsewhere in the world; (ii) resulting from political conditions, including acts of war (whether or not declared), armed hostilities and terrorism, or developments or changes therein; (iii) resulting from any announcement of this Agreement or any of the other agreements entered into with the Other Investors in the Other Private Placements or the transactions contemplated hereby or thereby, in each case, solely to the extent due to such announcement; (iv) resulting from a change in the Company’s stock price or the trading volume in the Common Stock in and of itself (it being understood that the underlying circumstances, event or reasons giving rise to any such failure (to the extent provided for in this definition) can be taken into account in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur); or (v) resulting from a failure to meet securities analysts’ published revenue or earnings predictions for the Company in and of itself (it being understood that the underlying circumstances, event or reasons giving rise to any such failure (to the extent provided for in this definition) can be taken into account in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur); provided, however, that the facts, circumstances, events or changes set forth in clause (i) above may be taken into account in determining whether there is or has been a Material Adverse Effect if and only to the extent such act, circumstance, event, effect or change has a materially disproportionate impact on the Company and the Subsidiaries relative to the other participants in the industries in which the Company and the Subsidiaries operate.

 

 “MetaBank” means MetaBank, a federally-chartered savings association and wholly-owned subsidiary of the Company.

 

“Non-Pro-Rata Stock Repurchase” has the meaning set forth in Section 4(k)(ii).

 

“OCC” has the meaning set forth in Section 3(b).

 

“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

“Other Investor” means any Person who has executed a securities purchase agreement dated as of the date hereof pursuant to which such Person has agreed to purchase shares of Common Stock in connection with the Other Private Placements.

 

“Other Private Placements” has the meaning set forth in Whereas clause D.

 

“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization or a government or any department or agency thereto.

 

“Post-Closing 8-K” has the meaning set forth in Section 4(j).

 

34

“Pre-Announcement Period” has the meaning set forth in Section 2(e).

 

“Pre-Closing 8-K” has the meaning set forth in Section 4(j).

 

“Pre-Redemption Period” has the meaning set forth in Section 4(k)(ii).

 

“Principal Market” means the NASDAQ Global Select Market.

 

“Purchase Price” has the meaning set forth in Section 1(c).

 

“Registration Rights Agreement” means a Registration Rights Agreement between the Company and the Buyer substantially in the form set forth on Exhibit A hereto.

 

“Regulation D” has the meaning set forth in Whereas clause A.

 

“Regulatory Agreement” has the meaning set forth in Section 3(q)(i).

 

“Rule 144” has the meaning set forth in Section 2(h)(i).

 

“Rule 144A” has the meaning set forth in Section 2(h)(i).

 

“Sarbanes-Oxley Act” has the meaning set forth in Section 3(j)(iii).

 

“SEC” has the meaning set forth in Whereas clause A.

 

“SEC Documents” has the meaning set forth in Section 3(j)(i).

 

“Shares” has the meaning set forth in Section 1(a).

 

“Standstill Period” has the meaning set forth in Section 4(l).

 

“Stock Reduction Triggering Event” has the meaning set forth in Section 4(k)(ii).

 

 “Subsidiaries” means MetaBank and any other entity (including any joint venture) in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest having general voting power in respect of more than fifty percent (50%) of all of the capital stock or equity or similar interest of such entity or joint venture.

 

“Tax” means all federal, state, local, foreign or other governmental taxes, assessments, duties, fees, levies or similar charges of any kind imposed by a Governmental Entity, including, but not limited to, all income, profit, gross receipts, franchise, excise, property, use, intangibles, sales, payroll, social security, employment, value added, withholding and other taxes, and including all interest, penalties and additional amounts imposed with respect to such amounts, whether as a primary obligor or as a result of being a “transferee” (within the meaning of Section 6901 of the Code or any other applicable Law) of another Person or as a result of being a member of an affiliated, consolidated, unitary or combined group.

 

35

“Tax Return” means any return, declaration, report, claim for refund, information return, statement or other document relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Transaction Documents” means, collectively, this Agreement, the Registration Rights Agreement and each of the other agreements and instruments the Company or the Buyer is, or will be, a party or by which it is, or will be, bound in connection with the transactions contemplated hereby and thereby.

 

“Transfer Agent” has the meaning set forth in Section 1(d).

 

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

 

(c)           Counterparts.  This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided, that a facsimile or electronic (i.e., “PDF”) signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original.

 

(d)           Headings.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

(e)           Severability.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

36

(f)            Entire Agreement; Amendments.  This Agreement, the Confidentiality Agreement, the Registration Rights Agreement and the other Transaction Documents supersede all other prior oral or written agreements among the Buyer and the Company, their Affiliates and Persons acting on their behalf with respect to the matters discussed herein and therein, and this Agreement, the Confidentiality Agreement, the Registration Rights Agreement and the other Transaction Documents contain the entire understanding of the parties hereto with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Buyer.  No provision hereof may be waived other than by an instrument in writing signed by the party from whom waiver is sought.

 

(g)           Notices.  Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight courier service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Meta Financial Group, Inc.

5501 S. Broadband Lane

Sioux Falls, South Dakota  57108

Facsimile:  (605) 338-0596

Attention:  J. Tyler Haahr

 

with a copy (for informational purposes only) to:

 

Katten Muchin Rosenman LLP

2900 K Street, NW

North Tower, Suite 200

Washington, DC  20007

Facsimile:  (202) 339-8281

Attention:  Jeffrey M. Werthan, Esq.

 

If to the Buyer:

Consector Capital, LP

712 Fifth Avenue – 17th Floor

New York, NY 10019

Facsimile:  (646) 650 - 5464

Attention:  William J. Black, Jr.

 

37

with a copy (for informational purposes only) to:

 

Consector Capital, LP

712 Fifth Avenue – 17th Floor

New York, NY 10019

Facsimile:  (646) 650 - 5464

Attention:  Timothy J. Stewart

 

or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party pursuant to this Section.

 

(h)           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.  Neither the Company nor the Buyer shall assign or delegate this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party hereto.

 

(i)            No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(j)            Further Assurances.  Each party hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)           No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rules of strict construction will be applied against any party.

 

(l)             Remedies.  The Buyer shall have all rights and remedies set forth in this Agreement and all rights and remedies which it has been granted at any time under any other agreement or contract and all of the rights which such holders have under any Law.  Each party hereto shall be entitled to enforce its rights hereunder specifically (without posting a bond or other security or proving actual damages), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by Law.  Notwithstanding anything to the contrary contained herein, neither party hereto shall be entitled to consequential, special, exemplary, indirect or incidental damages hereunder.

 

(m)           Acknowledgment Regarding Buyer’s Shares.  The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby.  The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company or any of the Subsidiaries (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby, and any advice given by the Buyer or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to the Buyer’s purchase of the Shares.  The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation by the Company and its representatives.

 

38

(n)           Buyer’s Acknowledgments Regarding Other Private Placements.  Except as set forth in the proviso to this sentence, the Buyer acknowledges and agrees that it is entering into (or will enter into) this Agreement and each other Transaction Document to which it is or will be a party without relying on any representation and warranty of, or any other statement made by, the Company or any of its advisors or representatives to the effect that the terms, conditions and provisions of this Agreement and such other Transaction Documents are based on the same terms, conditions and provisions as those terms, conditions and provisions agreed to by the Company and any Other Investor in connection with any Other Private Placement; provided, that the Company hereby represents and warrants that this Agreement and each of the securities purchase agreements entered into by the Other Investors in connection with the Other Private Placements are on the date hereof, and will be on the Closing Date, substantially the same with respect to the following provisions (or absence thereof, as the case may be), and the terms of each such provision are not more or less favorable in any respect to the Buyer as compared to any Other Investor: (i) the manner of computing the Purchase Price (as set forth in Section 1(c) hereof), (ii) the outside date by which any party hereto or thereto, as applicable, may terminate such agreement if the Closing of the transactions contemplated hereby or thereby, as applicable, shall not have occurred (as set forth in Section 8(b) hereof), (iii) the definition of “Material Adverse Effect” (as set forth in Section 9(a) hereof), (iv) the indemnification provisions (as set forth in Section 7 hereof), and (v) the absence of a provision relating to the Buyer or any Other Investor being entitled to receive reimbursement from the Company of any of its costs or expenses related to entering into this Agreement or the securities purchase agreements entered into in connection with the Other Private Placements, as the case may be (other than pursuant to the indemnification provisions to the extent provided therein, if at all, which indemnification provisions are substantially the same) (collectively, the “Fundamental Terms”).  In the event that the Company agrees to amend any of the Fundamental Terms for any Other Investor in connection with any Other Private Placement, the Company shall notify the Buyer within one (1) Business Day of such amendment (which, in any event, shall be not less than one (1) Business Day prior to the Closing Date) and provide to the Buyer a draft of the revised securities purchase agreement or other transaction document, as applicable.

 

(o)           Interpretive Matters.  Unless the context otherwise requires, (a) all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c) the words “hereof,” “herein” and words of similar effect shall reference this Agreement in its entirety, and (d) the use of the word “including” in this Agreement shall be by way of example rather than limitation.

 

[Signature Page Follows]

 

39

IN WITNESS WHEREOF, the Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	
COMPANY:

	 	 
	 	
META FINANCIAL GROUP, INC.

	 	 
	 	
By:

	
/s/ Glen W. Herrick

	 	
Name:

	
Glen W. Herrick

	 	
Title:

	
Executive Vice President and Chief Financial Officer

	 	
BUYER:

	 	 
	 	
CONSECTOR PARTNERS MASTER FUND, LP

	 	 
	 	
By:   Consector Advisors, LLC

	 	
Its:   General Partner

	 	 	 
	 	
By:

	
/s/ Timothy J. Stewart

	 	
Name:

	
Timothy J. Stewart

	 	
Title:

	
Authorized Signer

[Signature Page to Securities Purchase Agreement – Consector Partners Master Fund, LP]

 

Schedule 9(a)

 

Knowledge of the Company

 

J. Tyler Haahr

 

Glen W. Herrick

 

Bradley C. Hanson

 

John Hagy

 

META FINANCIAL GROUP, INC.

 

SECURITIES PURCHASE AGREEMENT

 

DISCLOSURE LETTER

 

This Meta Financial Group, Inc. Disclosure Letter (the “Disclosure Letter”) is the Disclosure Letter referred to in, and is being delivered pursuant to, the Securities Purchase Agreement, dated as of June 25, 2015 (the “Agreement”), by and between Meta Financial Group, Inc., a Delaware corporation (“Company”), and Consector Partners Master Fund, LP, a limited partnership organized under the laws of the Cayman Islands (“Buyer”).  Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Agreement, unless the context otherwise requires.

 

The information and disclosures made in this Disclosure Letter are subject to, and made under, the following terms and conditions:

 

The information included in this Disclosure Letter is disclosed confidentially and is subject to the obligations of confidentiality contained in the Confidentiality Agreement.  The information provided in this Disclosure Letter is being provided solely for the purpose of making the required disclosures to Buyer under the Agreement.  Except as expressly required by the Agreement, the inclusion of any fact, item, matter, circumstance, transaction, action, proceeding, or event in a Schedule hereof is not deemed to be an admission or representation that the fact, item, matter, circumstance, transaction, action, proceeding, or event is or is not material or would or could have a Material Adverse Effect, and such inclusion shall not be deemed an acknowledgement that such fact, item, matter, circumstance, transaction, action, proceeding, or event is required to be disclosed pursuant to the Agreement.  The introductory language and the heading to each Schedule are inserted for convenience of reference only and shall not create a different standard for disclosure from that set forth in the Agreement.  Further, the use of headings in this Disclosure Letter shall not create a representation regarding the completeness or accuracy of the organization of the information in this Disclosure Letter.  In disclosing this information in this Disclosure Letter, Company expressly does not waive any attorney-client privilege associated with such information, nor any protection afforded by the work-product doctrine with respect to any of the matters disclosed or discussed herein.

 

In accordance with the Agreement, Company hereby discloses to Buyer the following:

 

Schedule 3(e)

No Conflicts

None.

 

Schedule 3(j)(i)

Certain Reports Not Filed with the SEC

None.

 

Schedule 3(l)(i)

Material Adverse Effect Events

None.

 

Schedule 3(l)(ii)

Certain Changes

None.

 

Schedule 3(m)

Undisclosed Liabilities

None.

 

Schedule 3(p)

Transactions with Affiliates

 

Affiliate Transactions with Subsidiaries

None of the officers, directors or employees of the Company or any of its subsidiaries is a party to any affiliate transaction with any of the Subsidiaries.

Affiliate Transactions with the Company

See the Company’s Annual Report on Form 10-K filed December 12, 2014 and the Company’s Proxy Statement on Schedule DEF 14A filed on December 16, 2014 for a description of the Company’s stock option and incentive plans and information regarding options and restricted shares outstanding thereunder.

As of June 17, 2015, the executive officers of the Company held the number of unexercised options for shares of Common Stock and shares of unvested restricted common stock set forth opposite their names below:

	
Executive Officer

	
Unexercised 

Options for shares 

of Common Stock

	
Shares of Unvested 

Restricted Common 

Stock

	
J. Tyler Haahr

	
49,065

	
0

	
Bradley C. Hanson

	
81,920

	
0

	
Glen W. Herrick

	
0

	
2,000

	
Troy Moore, III

	
20,417

	
0

	
Ira D. Frericks

	
0

	
0

	
Ronald W. Butterfield

	
3,119

	
0

	
Total:

	
154,521

	
2,000

As of June 17, 2015, all other employees, officers, directors and consultants of the Company and its Subsidiaries held a total of 225,620 unexercised options and 4,230 shares of unvested restricted stock.

 

Schedule 3(q)

Agreements with Regulatory Agencies

	
(i)

	
Section 3(q)(i) – Regulatory Agreements.

As previously disclosed in public filings with the SEC, on July 15, 2011, the Company and MetaBank each stipulated and consented to a Cease and Desist Order (together, the “Orders” or the “Consent Orders”) issued by the Office of Thrift Supervision (the “OTS”), imposing various restrictions and compliance requirements on the Company and the Bank, respectively.  On August 7, 2014, the Office of the Comptroller of the Currency (“OCC”), as successor to the OTS as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, terminated the Bank’s Consent Order.  On May 26, 2015, the Federal Reserve Board announced that on May 21, 2015, it had terminated the Consent Order relating to the Company.

 

	(ii)	Section 3(q)(ii) – Pending or threatened Regulatory Agreements; capital restoration plans.

The information presented elsewhere in this Schedule 3(q) is incorporated herein by reference.

	(iii)	Section 3(q)(iii) – Initiated or pending proceedings, enforcement actions, or formal investigations.

None.

	(iv)	Section 3(q)(iv) – Resolutions of proceedings, enforcement actions, or formal investigations.

As previously disclosed in public filings with the SEC, on July 15, 2011, the Company and MetaBank each stipulated and consented to the Consent Orders issued by the OTS.

On August 7, 2014, the Company announced that its bank subsidiary, MetaBank, had been released from its Consent Order by the OCC. The Consent Order was terminated effective August 7, 2014.

On May 26, 2015, the Federal Reserve Board announced that on May 21, 2015, it had terminated the Consent Order relating to the Company. The Consent Order was originally issued by the Office of Thrift Supervision.

	(v)	Section 3(q)(v) – Unresolved violations, criticisms or exceptions.

None.

 

	(vi)	Section 3(q)(vi) – Formal inquiries by or disagreement or disputes with any Government Agency.

None.

 

Schedule 3(r)

Certain Capitalization Matters

	
(i)

	
Capital Stock of Company Subject to Preemptive Rights or Similar Rights or Liens, etc.

None.

	(ii)	Outstanding Options, Warrants, Convertible Securities, Rights to Subscribe, etc. Relating to the Company and its Subsidiaries

The options and other securities described or referenced on Schedule 3(p) of this Disclosure Letter.

	(iii)	Registration Obligations of the Company or its Subsidiaries

None.

	(iv)	Agreements of the Company or its Subsidiaries That May Require Redemption of Securities of the Company

		(A)	Securities Purchase Agreement, dated as of January 29, 2010, between the Company and NetSpend Holdings, Inc.

		(B)	Securities Purchase Agreement, dated as of May 9, 2012, between the Company and ACP MFG Holdings, LLC.

		(C)	Securities Purchase Agreement, dated as of May 9, 2012, among the Company and Boathouse Row I, LP, Boathouse Row II, LP and Boathouse Row Offshore, LTD.

		(D)	Securities Purchase Agreement, dated as of May 9, 2012, between the Company and Long Meadow Holdings, L.P.

	(v)	Securities of the Company or its Subsidiaries With Anti-Dilution Rights, etc.

None.

	(vi)	Stock Appreciation Rights and Phantom Stock Plans of the Company

None.

 

Schedule 3(s)

Subsidiaries of the Company

The following are the direct and indirect subsidiaries of the Company, showing the owner thereof, percentage interest held and jurisdiction of organization:

	
Name and Jurisdiction

of Subsidiary

	
Owner

of Subsidiary

	
Percentage Interest of

Subsidiary Held by Owner

	
 

MetaBank,

a federally chartered

savings association

 

	
 

Meta Financial Group, Inc.

	
 

100%

	
 

First Midwest

Financial Capital Trust I,

a Delaware business trust

 

	
 

Meta Financial Group, Inc.

	
 

100%

Schedule 3(t)

Litigation

None.

 

Exhibit A to Securities Purchase Agreement

(Form of Registration Rights Agreement)

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of __________ ___, 2015, by and between Meta Financial Group, Inc., a Delaware corporation (the “Company”), and Consector Partners Master Fund, LP, a limited partnership organized and existing under the laws of the Cayman Islands (the “Buyer”).

RECITALS:

WHEREAS, this Agreement is being entered into pursuant to the provisions of that certain Securities Purchase Agreement (the “Securities Purchase Agreement”), dated as of June 25, 2015, by and between the Company and the Buyer; and

WHEREAS, as an inducement to the Buyer’s investment in the Company pursuant to the Securities Purchase Agreement, the parties desire to enter into this Agreement in order to grant certain registration rights to the Buyer as set forth below.

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.

GENERAL

1.1               Definitions.  As used in this Agreement, the following terms shall have the following respective meanings:

“120-Day Deadline” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Affiliate” of any particular Person means any other Person controlling, controlled by or under common control with such particular Person or entity.

“Agreement” shall have the meaning ascribed to it in the preamble hereof.

“Black Out Period” shall have the meaning ascribed to it in Section 2.11(a) hereof.

“Business Day” means any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in the State of New York.

“Buyer” shall have the meaning ascribed to it in the preamble hereof.

“Closing Date” means the date on which the closing of the transactions contemplated by the Securities Purchase Agreement occurs.

 

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“Common Stock” means shares of common stock, $0.01 par value per share, of the Company.

“Company” shall have the meaning ascribed to it in the preamble hereof.

“Event” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Event Date” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

“Holder” or “Holders” means the Buyer and any holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 2.8 hereof.

“Mandatory Registration Statement” shall have the meaning ascribed to it in Section 2.1(a) hereof.

“Misstatement” shall have the meaning ascribed to it in Section 2.4 hereof.

“Person” means any individual, corporation, partnership, joint venture, limited liability company, business trust, joint stock company, trust or unincorporated organization or any government or any agency or political subdivision thereof.

“Register,” “registered,” and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement.

“Registrable Securities” means (a) the Shares, and (b) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, preferred stock or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the Shares held by the Holders; provided, however, that Registrable Securities shall not include any shares of Common Stock (i) which have been sold or otherwise disposed of either pursuant to a registration statement or Rule 144 under the Securities Act; (ii) which have been sold in a private transaction in which the transferor’s rights under this Agreement are not assigned in compliance with the terms of this Agreement; or (iii) which may be sold by the Holder in question pursuant to Rule 144 without volume restrictions or public information requirements.

“Registration Expenses” means all expenses incurred by the Company in effecting any registration pursuant to this Agreement (including any Mandatory Registration Statement), including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of the Company’s independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, and any other Persons retained by the Company and the compensation of regular employees of the Company, which shall be paid in any event by the Company, but shall not include Selling Expenses.

 

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“Rule 144” means Rule 144 under the Securities Act or any successor rule.

“SEC” or “Commission” means the Securities and Exchange Commission and any successor agency.

“Securities Act” means the Securities Act of 1933, as amended, or similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

“Securities Purchase Agreement” shall have the meaning ascribed to it in the recitals hereof.

“Selling Expenses” means all underwriting discounts, selling commissions, fees of underwriters, selling brokers, dealer managers and similar securities industry professionals and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder.

“Shares” means the 186,134 shares of Common Stock issued by the Company to the Buyer on the Closing Date pursuant to the Securities Purchase Agreement.

“Trading Markets” shall have the meaning ascribed to it in Section 2.3(g) hereof.

“Violation” shall have the meaning ascribed to it in Section 2.7(a) hereof.

SECTION 2.

REGISTRATION

2.1                 Registration Statement.

(a)                 In accordance with the requirements of Section 2.3 below, the Company shall file with the SEC within thirty (30) calendar days after the Closing Date, and shall use commercially reasonable efforts to cause to be declared effective by the SEC as soon as practicable after the date of such filing, and in any event within 120 calendar days after the Closing Date, a registration statement on Form S-1 or Form S-3 with respect to the resale of the Registrable Securities by the Holders thereof.  The Company shall also, once such registration statement becomes effective, maintain the effectiveness of the registration effected pursuant to this Section 2.1 and keep such registration statement free of any material misstatements or omissions at all times, subject only to the limitations set forth herein, including pursuant to Section 2.4 hereof.  The registration statement contemplated by this Section 2.1 is referred to herein as the “Mandatory Registration Statement.”  The Company shall cause the Mandatory Registration Statement to remain effective until such date as is the earlier of (i) the date on which all Registrable Securities included in the registration statement shall have been sold or shall have otherwise ceased to be Registrable Securities and (ii) the date on which all remaining Registrable Securities may be sold pursuant to Rule 144 without volume restrictions or public information requirements and any and all restrictive legends with respect to restrictions on transferability under the Securities Act have been removed from the Shares (provided that removal of such legends shall not be a condition to the Company’s right to cause the Mandatory Registration Statement to no longer remain effective if the Holders shall fail to promptly take such reasonable actions as the Company shall reasonably request to facilitate removal of the restrictive legends).

 

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(b)                If: (i) the Mandatory Registration Statement is not filed on or prior to thirty (30) calendar days after the Closing Date (subject to the provisions of Section 2.11), or (ii) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five (5) Business Days after the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Mandatory Registration Statement will not be “reviewed” or not be subject to further review, or (iii) the Mandatory Registration Statement filed or required to be filed hereunder is not declared effective by the Commission within 120 calendar days after the Closing Date (the “120-Day Deadline”), or (iv) in the event that, after the 120-Day Deadline, the Registrable Securities have not been listed on the Trading Markets (as defined below), or (v) after the 120-Day Deadline, the Mandatory Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are otherwise not permitted to utilize the prospectus therein to resell such Registrable Securities (except as may be restricted pursuant to Section 2.4 or 2.11) for more than 14 consecutive calendar days or more than an aggregate of 20 calendar days during any 12-month period (which need not be consecutive calendar days) (any such failure or breach being referred to as an “Event”, and for purposes of clause (i), (iii) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five (5) Business Day period is exceeded, or for purposes of clause (v) the date on which such 14 or 20 calendar day period, as applicable, is exceeded being referred to as the “Event Date”), then in addition to any other rights a Holder may have hereunder or under applicable law, on each such Event Date and on the expiration of each thirty (30) day period following such Event Date (if the applicable Event shall not have been cured by such date) until the earlier of the date on which the applicable Event is cured or such Holder no longer owns Registrable Securities, the Company shall pay to such Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to two and one-half percent (2.50%) of the aggregate purchase price paid by such Holder for all Registrable Securities then held by such Holder.  If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven calendar days after the date payable hereunder, the Company will pay interest thereon at a rate of 18% per annum (or, to the extent such amount exceeds the maximum amount that is permitted to be paid under applicable law, such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due hereunder until such amounts, plus all such interest thereon, are paid in full. Notwithstanding anything herein to the contrary, in no event shall liquidated damages or any interest thereon accrue, nor shall the Company have any payment or other obligations pursuant to this Section 2.1(b), with respect to more than one Event at any time.  The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event.

2.2                 Expenses of Registration.  All reasonable Registration Expenses incurred in connection with any registration hereunder shall be borne by the Company.  All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the Holders of the Registrable Securities so registered pro rata on the basis of the number of shares so registered.

 

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2.3                 Additional Obligations of the Company.  The Company shall:

(a)                 At least three (3) Business Days before filing the Mandatory Registration Statement, furnish to counsel selected by the Holders of a majority of the Registrable Securities covered by such registration statement copies of all such documents proposed to be filed (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and any similar or successor reports that have been filed via EDGAR which may be incorporated or deemed to be incorporated by reference thereto), and the Company shall in good faith consider any reasonable comments of such counsel received at least one (1) Business Day prior to filing.

(b)                Promptly notify the Holders when the Mandatory Registration Statement is declared effective by the Commission.  The Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to the registration statement or any amendments thereto and shall furnish to the Holders, upon request, any comments of the Commission staff regarding the Holders.  The Company shall promptly file with the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act after the Company concludes that the staff of the Commission has no further comments on the filing.

(c)                Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

(d)                Use commercially reasonable efforts to register and qualify the securities covered by the Mandatory Registration Statement under such other securities or Blue Sky laws of such U.S. jurisdictions as shall be reasonably requested by the Holders unless an exemption from registration and qualification exists; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business, file a general consent to service of process or subject itself to general taxation in any such states or jurisdictions.

(e)                 Promptly notify each Holder of Registrable Securities covered by the Mandatory Registration Statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing (provided that in no event shall such notice contain any material, non-public information regarding the Company) and, when such state of facts no longer exists whether due to passage of time or filing of supplemental disclosure by the Company, the Company shall promptly furnish to each such Holder a reasonable number of copies of any supplement or amendment to such prospectus filed by the Company.

(f)                 Use commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of the Mandatory Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction in the United States, and in the event of the issuance of any stop order suspending the effectiveness of such registration statement, or any order suspending or preventing the use of any related prospectus or suspending the qualification of any equity securities included in such registration statement for sale in any jurisdiction, the Company shall use commercially reasonable efforts to obtain promptly the withdrawal of such order.

 

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(g)                Use commercially reasonable efforts to cause all Shares to be listed on each securities exchange on which the same class of securities issued by the Company are then listed (collectively, the “Trading Markets”), including, without limitation, by the filing of any required additional listing applications.

(h)                Use commercially reasonable efforts to cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities sold pursuant to the Mandatory Registration Statement, and enable such certificates to be in such denominations or amounts, as the case may be, as the Holders may reasonably request and registered in such names as the Holders may request.

(i)                   Provide and cause to be maintained a registrar and transfer agent for all Registrable Securities covered by any registration statement from and after a date not later than the effective date of the Mandatory Registration Statement.

(j)                  Not, nor shall any subsidiary or affiliate thereof, identify any Holder as an underwriter in any public disclosure or filing with the SEC or the NASDAQ Stock Market or any other securities exchange or market without the consent of such Holder except as required by law.

2.4                 Suspension of Sales.  Upon receipt of written notice from the Company that the Mandatory Registration Statement or a prospectus relating thereto contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading (a “Misstatement”), each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until such Holder has received copies of the supplemented or amended prospectus that corrects such Misstatement, or until such Holder is advised in writing by the Company that the use of the prospectus may be resumed, and, if so directed by the Company, such Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.  The total number of calendar days that any such suspension may be in effect in any 365 day period shall not exceed 90 days.

2.5                 Termination of Registration Rights.  A Holder’s registration rights under this Agreement, including any right to payment under Section 2.1(b), shall expire on the date on which such Holder ceases to own Registrable Securities or securities that are expressly convertible into or exercisable for Registrable Securities.

2.6                 Furnishing Information.  It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Agreement that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registration of their Registrable Securities.

 

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2.7                 Indemnification.  In the event any Registrable Securities are included in a registration statement under this Section 2:

(a)                 To the extent permitted by law, the Company shall indemnify and hold harmless each Holder and each person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Investment Company Act of 1940, as amended, or the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any related preliminary prospectus or final prospectus or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, or state securities laws or any rule or regulation promulgated under the Securities Act, the Exchange Act or any other federal or state securities law in connection with the registration of the Registrable Securities; and the Company will pay to each such Holder or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 2.7(a) shall not apply to any Holder (or any related controlling person) with respect to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs (i) solely in reliance upon and in conformity with written information furnished expressly for use in connection with such registration statement (including any related preliminary prospectus or final prospectus) or any amendment thereof or supplement thereto by such Holder or controlling person, (ii) as a result of  any failure of such Holder or controlling person to deliver or cause to be delivered a prospectus made available by the Company in a timely manner, or (iii) as a result of a violation by such Holder or controlling person of such Holder’s obligations under Section 2.4 hereof.

 

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(b)                To the extent permitted by law and provided that such Holder is not entitled to indemnification pursuant to Section 2.7(a) above with respect to such matter, each selling Holder (severally and not jointly) shall indemnify and hold harmless the Company, each of its directors, officers, persons, if any, who control the Company within the meaning of the Securities Act, any other Holder selling securities in such registration statement and any controlling person of any such other Holder, against any losses, claims, damages, or liabilities to which any of the foregoing persons may become subject under the Securities Act, the Exchange Act or other federal or state securities law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any (i) untrue statement or alleged untrue statement of a material fact regarding such Holder and provided in writing by such Holder expressly for use in connection with a registration statement which is contained in such registration statement, including any related preliminary prospectus or final prospectus or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, in the case of each of clause (i) and (ii), to the extent (and only to the extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made in such registration statement, preliminary or final prospectus, amendment or supplement thereto, in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration statement, preliminary or final prospectus, amendment or supplement thereto, (iii) any failure by such Holder or controlling person to deliver or cause to be delivered a prospectus made available by the Company in a timely manner, or (iv) violation by such Holder or controlling person of such Holder’s obligations under Section 2.4 hereof; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 2.7(b) in connection with investigating or defending any such loss, claim, damage, liability, or action as a result of such Holder’s untrue statement, omission, failure or violation; provided, however, that the indemnity agreement contained in this Section 2.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld); provided, that, (x) the indemnification obligations in this Section 2.7(b) shall be individual and ratable not joint and several for each Holder and (y) in no event shall the aggregate of all indemnification payments by any Holder under this Section 2.7(b) exceed the net proceeds from the offering received by such Holder.

(c)                Promptly after an indemnified party under this Section 2.7 becomes aware of any matter that such indemnified party believes will entitle such party to indemnification pursuant to this Section 2.7, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.7, deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense of the action in question (including any governmental action) with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses of such counsel to be paid by the indemnifying party, if (i) the indemnifying party shall have failed to assume the defense of such claim within twenty (20) days after receipt of notice of the claim and to employ counsel reasonably satisfactory to such indemnified party, as the case may be; or (ii) in the reasonable opinion of counsel retained by the indemnifying party, representation of such indemnified party by such counsel would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding.  The indemnified party shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the indemnified party which relates to such action or claim. The indemnifying party shall keep the indemnified party reasonably apprised of the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the indemnified party under this Section 2.7, except to the extent such failure to give notice actually and materially prejudices the indemnifying party.

 

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(d)                If the indemnification provided for in this Section 2.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.  Notwithstanding the foregoing, the amount that any Holder will be obligated to contribute pursuant to this Section 2.7(d) will be limited to an amount equal to the net amount of proceeds received by such Holder from the sale of Registrable Securities sold by such Holder pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which such Holder has otherwise been required to pay in respect of such loss, liability, claim, damage, or expense or any substantially similar loss, liability, claim, damage, or expense arising from the sale of such Registrable Securities).  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution hereunder from any person who was not guilty of such fraudulent misrepresentation.

(e)                 The obligations of the Company and Holders under this Section 2.7 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 2, and otherwise.

2.8                 Assignment of Registration Rights.  The rights to cause the Company to register Registrable Securities pursuant to this Agreement may be assigned by a Holder to a transferee or assignee of Registrable Securities if (a) such transferee is an Affiliate, subsidiary or parent company of a party hereto, or (b)  such transferee acquires at least 25% of the Registrable Securities then owned by such Holder; provided, that (i) the transferor shall furnish to the Company written notice at or prior to the time of transfer of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned, (ii) such transferee shall agree in writing to be subject to all restrictions set forth in this Agreement in the same capacity and to the same extent as the transferring Holder; and (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the Securities Act or applicable state securities laws and such transferee shall acknowledge, immediately following such assignment, that the further disposition of such securities by such assignee is restricted under the Securities Act.

2.9                Rule 144 Reporting.  With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees, so long as shares of Registrable Securities are outstanding, to use its reasonable best efforts to:

 

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(a)                 make and keep public information available, as those terms are understood and defined in Securities Act Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of this Agreement;

(b)                file with the SEC, in a timely manner, all annual and quarterly reports required of the Company under Section 13 or Section 15(d) of the Exchange Act; and

(c)                so long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration.

2.10             Obligations of the Holders.

(a)                Each Holder shall furnish in writing to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request in connection therewith.  Upon the execution of this Agreement, each Holder shall complete, execute and deliver to the Company a selling securityholder notice and questionnaire in form reasonably satisfactory to the Company.  At least five (5) Business Days prior to the first anticipated filing date of any registration statement, the Company shall notify each Holder of any additional information the Company requires from such Holder if such Holder elects to have any of the Registrable Securities included in such registration statement.  A Holder shall provide such information to the Company at least two (2) Business Days prior to the first anticipated filing date of such Registration Statement. Each holder agrees that, in connection with any sale of Registrable Securities by it pursuant to a registration statement, it shall comply with the “Plan of Distribution” section of the then current prospectus relating to such registration statement.

(b)                Each Holder, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Mandatory Registration Statement hereunder, unless such Holder has notified the Company in writing of its election to exclude all of its Registrable Securities from the Mandatory Registration Statement.

(c)                Each Holder covenants and agrees that it shall comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Mandatory Registration Statement (including any related prospectus) and any amendment or supplement thereto.

2.11              Suspension of Registration Rights.

 

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(a)                 Notwithstanding anything to the contrary herein, if the Company shall at any time furnish to the Holders a certificate signed by any of its authorized officers (a “Suspension Notice”) stating that the Company is engaged in a material merger, acquisition or sale, or a pending material financing, material corporate reorganization or other material corporate transaction, and the Board of Directors of the Company determines, in good faith and by appropriate resolution after consultation with its outside counsel, that the filing of the Mandatory Registration Statement would require additional disclosure of material information that would be materially detrimental to the Company, then the right of the Holders to require the Company to file the Mandatory Registration Statement shall be suspended for a period (a “Black Out Period”) of not more than sixty (60) days in the aggregate in any three hundred and sixty (360) consecutive-day period (and no more than ten (10) consecutive Business Days in any three hundred and sixty (360) consecutive day period).

(b)                Notwithstanding anything to the contrary in this Section 2.11, the Company shall not impose any Black Out Period in a manner that is more restrictive (including, without limitation, as to duration) than the comparable restrictions that the Company may impose on transfers of the Company’s equity securities by its directors and senior executive officers.

(c)                If the public announcement of the applicable material transaction or material, nonpublic information is made during a Black Out Period, then the Black Out Period shall terminate without any further action of the parties and the Company shall immediately notify the Holders of such termination.

SECTION 3.

MISCELLANEOUS

3.1                 Successors and Assigns.  Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties (including, subject to Section 2.8, transferees of Registrable Securities).  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

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

 

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3.3                Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument

3.4                 Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement

3.5                Notices.  Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight courier service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Meta Financial Group, Inc.

5501 S. Broadband Lane

Sioux Falls, South Dakota  57108

Facsimile:             (605) 338-0596

Attention:            J. Tyler Haahr

 

with a copy (for informational purposes only) to:

 

Katten Muchin Rosenman LLP

2900 K Street, NW

North Tower, Suite 200

Washington, DC  20007

Facsimile:             (202) 339-8281

Attention:            Jeffrey M. Werthan, Esq.

 

If to the Buyer:

 

Consector Capital, LP

712 Fifth Avenue – 17th Floor

New York, NY 10019

Facsimile:  (646) 650 - 5464

Attention:  William J. Black, Jr.

 

A-12

with a copy (for informational purposes only) to:

 

Consector Capital, LP

712 Fifth Avenue – 17th Floor

New York, NY 10019

Facsimile:  (646) 650 – 5464

Attention:  Timothy J. Stewart

or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party pursuant to this Section.

 

3.6                Expenses.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

3.7                 Amendments and Waivers.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the prior written consent of the Company and a majority-in-interest of the Holders.

3.8                 Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

3.9                 Entire Agreement.  This Agreement supersedes all other prior oral or written agreements between the Buyer, the Company, their Affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.

 

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3.10             Termination.  This Agreement shall terminate and be of no further legal force and effect when all of the Registrable Securities shall no longer be or constitute Registrable Securities in accordance with the definition thereof set forth in Section 1.1; provided, however, that the provisions of Section 2.2, Section 2.7 and Section 3 shall survive the termination of this Agreement.

 

3.11             Interpretive Matters.  Unless the context otherwise requires, (a) all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c) the words “hereof,” “herein” and words of similar effect shall reference this Agreement in its entirety, and (d) the use of the word “including” in this Agreement shall be by way of example rather than limitation.

 

[Remainder of page intentionally left blank]

 

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

 

	 	
COMPANY:

	 	 	 
	 	
META FINANCIAL GROUP, INC.

	 	 	 
	 	
By:

	  
	 	 	
Name:

	
J. Tyler Haahr

	 	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	
BUYER:

	 	 	 
	 	
CONSECTOR PARTNERS MASTER FUND, LP

	 	 	 	 
	 	
By: Consector Advisors, LLC

	 	
Its: General Partner

	 	 	 	 
	 	
By:

	  
	 	 	
Name:

	
Timothy J. Stewart

	 	 	
Title:

	
Authorized Signer

[Signature Page to Registration Rights Agreement]

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