Document:

Exhibit 10.1

Exhibit 10.1

_____________

ADOBE SYSTEMS INCORPORATED 
2003 EQUITY INCENTIVE PLAN

Amended and Restated as of April 11, 2013
_____________

Exhibit 10.1

TABLE OF CONTENTS

	
				
	1.
	 
	Establishment, Purpose and Term of Plan
	1

	1.1
	 
	Establishment
	1

	1.2 
	 
	Purpose
	1

	1.3 
	 
	Term of Plan
	1

	2.   
	 
	Definitions and Construction
	1

	2.1 
	 
	Definitions
	1

	2.2 
	 
	Construction
	6

	3.   
	 
	Administration
	6

	3.1 
	 
	Administration by the Committee
	6

	3.2 
	 
	Authority of Officers
	6

	3.3 
	 
	Administration with Respect to Insiders
	6

	3.4 
	 
	Committee Complying with Section 162 (m)
	6

	3.5 
	 
	Powers of the Committee
	6

	3.6 
	 
	Repricing
	7

	3.7 
	 
	Indemnification
	8

	4.   
	 
	Shares Subject to Plan
	8

	4.1 
	 
	Maximum Number of Shares Issuable
	8

	4.2 
	 
	Adjustments for Changes in Capital Structure
	9

	5.   
	 
	Eligibility and Award Limitations
	9

	5.1 
	 
	Persons Eligible for Awards
	9

	5.2 
	 
	Participation
	9

	5.3 
	 
	Incentive Stock Option Limitations
	9

	5.4 
	 
	Award Limits
	10

	6.  
	 
	Terms and Conditions of Options
	11

	6.1
	 
	Exercise Price
	11

	6.2
	 
	Exercisability and Term of Options
	12

	6.3
	 
	Payment of Exercise Price
	12

	6.4
	 
	Effect of Termination of Service
	13

	6.5 
	 
	Transferability of Options
	13

	7.   
	 
	Terms and Conditions of Stock Appreciation Rights
	13

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	7.1 
	 
	Types of SARs Authorized
	13

	7.2 
	 
	Exercise Price
	13

	7.3 
	 
	Exercisability and Term of SARs
	14

	7.4 
	 
	Exercise of SARs
	14

	7.5 
	 
	Deemed Exercise of SARs
	14

	7.6 
	 
	Effect of Termination of Service
	15

	7.7 
	 
	Nontransferability of SARs
	15

	8. 
	 
	Terms and Conditions of Stock Awards
	15

	8.1
	 
	Types of Stock Awards Authorized
	15

	8.2 
	 
	Purchase Price
	15

	8.3 
	 
	Purchase Period
	15

	8.4 
	 
	Payment of Purchase Price
	15

	8.5 
	 
	Vesting; Restrictions on Transfer; Deferral
	16

	8.6 
	 
	Voting Rights; Dividends and Distributions
	16

	8.7 
	 
	Effect of Termination of Service
	17

	8.8 
	 
	Nontransferability of Stock Award Rights
	17

	9.   
	 
	Terms and Conditions of Performance Awards
	17

	9.1 
	 
	Types of Performance Awards Authorized
	17

	9.2 
	 
	Initial Value of Performance Shares and Performance Units
	17

	9.3 
	 
	Establishment of Performance Period, Performance Goals and Performance Award Formula
	18

	9.4 
	 
	Measurement of Performance Goals
	18

	9.5 
	 
	Settlement of Performance Awards
	18

	9.6 
	 
	Dividend Equivalents
	19

	9.7 
	 
	Effect of Termination of Service
	19

	9.8 
	 
	Nontransferability of Performance Awards
	20

	10.  
	 
	Performance-Based Compensation under Code Section 162(m)
	20

	10.1 
	 
	General
	20

	10.2 
	 
	Performance Goals
	20

	10.3 
	 
	Performance Goals Based on Performance Measures
	22

	11.
	 
	Standard Forms of Award Agreement
	24

	11.1 
	 
	Award Agreements
	24

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	11.2 
	 
	Authority to Vary Terms
	25

	11.3 
	 
	Clawback/Recovery
	25

	12.  
	 
	Change of Control
	25

	12.1 
	 
	Awards Granted Prior to January 24, 2008
	25

	12.2 
	 
	Awards Granted On or After January 24, 2008
	26

	13.  
	 
	Compliance with Securities Law
	28

	14.  
	 
	Tax Withholding
	28

	14.1 
	 
	Tax Withholding in General
	28

	14.2 
	 
	Withholding in Shares
	28

	15.  
	 
	Termination or Amendment of Plan
	29

	16.  
	 
	Miscellaneous Provisions
	29

	16.1 
	 
	Repurchase Rights
	29

	16.2 
	 
	Provision of Information
	29

	16.3 
	 
	Rights as Employee, Consultant or Director
	29

	16.4 
	 
	Rights as a Stockholder
	29

	16.5 
	 
	Fractional Shares
	30

	16.6 
	 
	Beneficiary Designation
	30

	16.7 
	 
	Unfunded Obligation
	30

	16.8 
	 
	Section 409A
	30

    

    
    

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Exhibit 10.1

ADOBE SYSTEMS INCORPORATED
2003 EQUITY INCENTIVE PLAN

1.ESTABLISHMENT, PURPOSE AND TERM OF PLAN.
1.1    Establishment.  Adobe Systems Incorporated, a Delaware corporation, hereby establishes the Adobe Systems Incorporated 2003 Equity Incentive Plan (as amended and restated, the “Plan”) effective as of April 9, 2003, the date of its approval by the stockholders of the Company (the “Effective Date”).
1.2    Purpose.  The purpose of the Plan is to advance the interests of the Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the growth and profitability of the Participating Company Group.  The Plan seeks to achieve this purpose by providing for Awards in the form of Options, Stock Appreciation Rights, Stock Purchase Rights, Stock Bonuses, Restricted Stock Units, Performance Shares and Performance Units.
1.3    Term of Plan.  The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the agreements evidencing Awards granted under the Plan have lapsed.  However, all Incentive Stock Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted, as amended, by the Board or the date the Plan is duly approved, as amended, by the stockholders of the Company. 
2.    DEFINITIONS AND CONSTRUCTION.
2.1    Definitions.  Whenever used herein, the following terms shall have their respective meanings set forth below:
(a)    “Affiliate” means (i) an entity, other than a Parent Corporation, that directly, or indirectly through one or more intermediary entities, controls the Company or (ii) an entity, other than a Subsidiary Corporation, that is controlled by the Company directly, or indirectly through one or more intermediary entities.  For this purpose, the term “control” (including the term “controlled by”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the relevant entity, whether through the ownership of voting securities, by contract or otherwise; or shall have such other meaning assigned such term for the purposes of registration on Form S‐8 under the Securities Act.
(b)    “Award” means any Option, SAR, Stock Purchase Right, Stock Bonus, Restricted Stock Unit, Performance Share or Performance Unit granted under the Plan.
(c)    “Award Agreement” means a written agreement between the Company and a Participant setting forth the terms, conditions and restrictions of the Award 

    

granted to the Participant.  An Award Agreement may be an “Option Agreement, an “SAR Agreement,” a “Stock Purchase Agreement,” a “Stock Bonus Agreement, ” a “Restricted Stock Unit Agreement,” ” a “Performance Share Agreement” or a “Performance Unit Agreement.”
(d)    “Board” means the Board of Directors of the Company.
(e)    “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder.
(f)    “Committee” means the Executive Compensation Committee or other committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board.  If no committee of the Board has been appointed to administer the Plan, the Board shall exercise all of the powers of the Committee granted herein, and, in any event, the Board may in its discretion exercise any or all of such powers.
(g)    “Company” means Adobe Systems Incorporated, a Delaware corporation, or any successor corporation thereto.
(h)    “Consultant” means a person engaged to provide consulting or advisory services (other than as an Employee or a member of the Board) to a Participating Company, provided that the identity of such person, the nature of such services or the entity to which such services are provided would not preclude the Company from offering or selling securities to such person pursuant to the Plan in reliance on (i) registration on a Form S‐8 Registration Statement under the Securities Act, or (ii) Rule 701 of the Securities Act, or (iii) other means of compliance with the securities laws of all relevant jurisdictions.
(i)    “Director” means a member of the Board or the board of directors of any other Participating Company.
(j)    “Disability” means the permanent and total disability of the Participant, within the meaning of Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code.
(k)    “Dividend Equivalent” means a credit, made at the discretion of the Committee or as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one share of Stock for each share of Stock represented by an Award held by such Participant.
(l)    “Employee” means any person treated as an employee (including an Officer or a member of the Board who is also treated as an employee) in the records of a Participating Company and, with respect to any Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however, that neither service as a member of the Board nor payment of a director’s fee shall be sufficient to constitute employment for purposes of the Plan.
(m)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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(n)    “Fair Market Value” means, as of any date, the value of a share of Stock or other property as determined by the Committee, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following:
(i)    If, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq Global Select Market, The Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable.  If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Committee, in its discretion.
(ii)    If, on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be as determined by the Committee in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse.
(o)    “Incentive Stock Option” means an Option intended to be (as set forth in the Award Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code. If an Option is not specifically designated as an Incentive Stock Option, or if an Option is designated as an Incentive Stock Option but some portion or all of the Option fails to qualify as an Incentive Stock Option under the applicable rules, then the Option (or portion thereof) will be a Nonstatutory Stock Option.
(p)    “Insider” means an Officer, a member of the Board or any other person whose transactions in Stock are subject to Section 16 of the Exchange Act.
(q)    “Nonstatutory Stock Option” means an Option not intended to be (as set forth in the Award Agreement) an incentive stock option within the meaning of Section 422(b) of the Code.
(r)    “Officer” means any person designated by the Board as an officer of the Company.
(s)    “Option” means the right to purchase Stock at a stated price for a specified period of time granted to a participant pursuant to Section 6 of the Plan.  An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.
(t)    “Parent Corporation” means any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code.

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(u)    “Participant” means any eligible person who has been granted one or more Awards.
(v)    “Participating Company” means the Company or any Parent Corporation, Subsidiary Corporation or Affiliate.
(w)    “Participating Company Group” means, at any point in time, all corporations collectively which are then Participating Companies.
(x)    “Performance Award” means an Award of Performance Shares or Performance Units.
(y)    “Performance Award Formula” means, for an Award, a formula or table established by the Committee, which provides the basis for computing the value of an Award at one or more threshold levels of attainment of the applicable Performance Goal(s) measured as of the end of the applicable Performance Period.
(z)    “Performance Goal” means a performance goal established by the Committee and may or may not include performance goals relating to a Performance Measure (as defined in Section 10).
(aa)    “Performance Period” means a period established by the Committee at the end of which one or more Performance Goals are to be measured.
(bb)    “Performance Share” means a bookkeeping entry representing a right granted to a Participant pursuant to Section 9 of the Plan to receive a payment equal to the value of a Performance Share based on performance.
(cc)    “Performance Unit” means a bookkeeping entry representing a right granted to a Participant pursuant to Section 9 of the Plan to receive a payment equal to the value of a Performance Unit based upon performance.
(dd)    “Predecessor Plans” mean, collectively, the Adobe Systems Incorporated 1994 Stock Option Plan and the Adobe Systems Incorporated 1999 Equity Incentive Plan.
(ee)    “Restricted Stock Unit” means a bookkeeping entry representing a right granted to a Participant pursuant to Section 8 of the Plan to receive one share of Stock, a cash payment equal to the value of one share of Stock, or a combination thereof, as determined in the sole discretion of the Committee.
(ff)    “Restriction Period” means the period established in accordance with Section 8.5 of the Plan during which shares subject to a Stock Award are subject to Vesting Conditions.
(gg)    “Rule 16b‐3” means Rule 16b‐3 under the Exchange Act, as amended from time to time, or any successor rule or regulation.

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(hh)    “SAR” or “Stock Appreciation Right” means a bookkeeping entry representing, for each share of Stock subject to such SAR, a right granted to a Participant pursuant to Section 7 of the Plan to receive payment of an amount equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price.
(ii)    “Section 162(m)” means Section 162(m) of the Code.
(jj)    “Securities Act” means the Securities Act of 1933, as amended.
(kk)    “Service” means a Participant’s employment or service with the Participating Company Group as an Employee, a Consultant or a Director, whichever such capacity the Participant held on the date of grant of an Award.  Unless otherwise determined by the Committee, a Participant’s Service shall be deemed to have terminated if the Participant ceases to render service to the Participating Company Group in such initial capacity.  However, a Participant’s Service shall not be deemed to have terminated merely because of a change in the Participating Company for which the Participant renders such Service in such initial capacity, provided that there is no interruption or termination of the Participant’s Service.  A Participant’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Participant performs Service ceasing to be a Participating Company.  Subject to the foregoing, the Company, in its discretion, shall determine whether the Participant’s Service has terminated and the effective date of such termination.
(ll)    “Stock” means the common stock of the Company, as adjusted from time to time in accordance with Section 4.2 of the Plan.
(mm)    “Stock Award” means an Award of a Stock Bonus, a Stock Purchase Right or a Restricted Stock Unit Award.
(nn)    “Stock Bonus” means Stock granted to a Participant pursuant to Section 8 of the Plan.
(oo)    “Stock Purchase Right” means a right to purchase Stock granted to a Participant pursuant to Section 8 of the Plan.
(pp)    “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code.
(qq)    “Ten Percent Owner” means a Participant who, at the time an Option is granted to the Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company (other than an Affiliate) within the meaning of Section 422(b)(6) of the Code.
(rr)    “Vesting Conditions” mean those conditions established in accordance with Section 8.5 of the Plan prior to the satisfaction of which shares subject to a Stock Award remain subject to forfeiture or a repurchase option in favor of the Company.

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2.2    Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
3.    ADMINISTRATION.
3.1    Administration by the Committee.  The Plan shall be administered by the Committee.  All questions of interpretation of the Plan or of any Award shall be determined by the Committee, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Award.
3.2    Authority of Officers.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, determination or election.  To the extent consistent with applicable law (including but not limited to Delaware General Corporation Law Section 157(c)), the Board may, in its discretion, delegate to a committee comprised of one or more Officers (any such committee, an “Officer Committee”) the authority to designate Employees (other than themselves) to receive one or more Options or rights to acquire shares of Stock and to determine the number of shares of Stock subject to such Options and rights, without further approval of the Board or the Committee. Any such grants will be subject to the terms of the Board resolutions providing for such delegation of authority.
3.3    Administration with Respect to Insiders.  With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b‐3.
3.4    Committee Complying with Section 162(m).  If the Company is a “publicly held corporation” within the meaning of Section 162(m), the Board may establish a Committee of two or more “outside directors” within the meaning of Section 162(m) to approve the grant of any Award which might reasonably be anticipated to result in the payment of employee remuneration that would otherwise exceed the limit on employee remuneration deductible for income tax purposes pursuant to Section 162(m).
3.5    Powers of the Committee.  In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion:
(a)    to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of shares of Stock or units to be subject to each Award;
(b)    to determine the type of Award granted and to designate Options as Incentive Stock Options or Nonstatutory Stock Options;

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(c)    to determine the Fair Market Value of shares of Stock or other property;
(d)    to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of shares purchased pursuant to any Award, (ii) the method of payment for shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of shares of Stock, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any shares acquired pursuant thereto, (v) the Performance Award Formula and Performance Goals applicable to any Award and the extent to which such Performance Goals have been attained, (vi) the time of the expiration of any Award, (vii) the effect of the Participant’s termination of Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares acquired pursuant thereto not inconsistent with the terms of the Plan;
(e)    to determine whether an Award of SARs, Restricted Stock Units, Performance Shares or Performance Units will be settled in shares of Stock, cash, or in any combination thereof;
(f)    to approve one or more forms of Award Agreement;
(g)    to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any shares acquired pursuant thereto;
(h)    to accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares acquired pursuant thereto, including with respect to the period following a Participant’s termination of Service;
(i)    to prescribe, amend or rescind rules, guidelines and policies relating to the plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws of or to accommodate the laws, regulations, tax or accounting effectiveness, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and
(j)    to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.
3.6    Repricing.  Without the affirmative vote of holders of a majority of the shares of Stock cast in person or by proxy at a meeting of the stockholders of the Company at which a quorum representing a majority of all outstanding shares of Stock is present or represented by proxy, the Board shall not approve a program providing for either (a) the cancellation of outstanding Options or SARs and the grant in substitution therefor of new Awards having a lower exercise or purchase price or (b) the amendment of outstanding Options or SARs 

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to reduce the exercise price thereof.  This paragraph shall not be construed to apply to “issuing or assuming a stock option in a transaction to which section 424(a) applies,” within the meaning of Section 424 of the Code.
3.7    Indemnification.  In addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers or employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same.
4.    SHARES SUBJECT TO PLAN.
4.1    Maximum Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be two hundred forty-seven million one hundred forty-nine thousand six hundred twenty (247,149,620) .  The number of shares of stock available for issuance under the Plan shall be reduced (a) by one share for each share issued pursuant to options or rights granted pursuant to the Predecessor Plans or pursuant to Options or Stock Appreciation Rights, and (b) by one and seventy seven-hundredths (1.77) shares for each share issued pursuant to Awards other than those set forth in the preceding clause (a); provided, however, that (A) for Awards granted prior to April 5, 2007, the reduction was one share of Stock for each share of Stock issued pursuant to any Awards, (B) for Awards granted on April 5, 2007 through and including April 9, 2008, the reduction was two and one-tenth (2.1) shares for each share issued pursuant to any Awards other than options or rights granted pursuant to the Predecessor Plans or pursuant to Options or Stock Appreciation Rights, and (C) for Awards granted on April 10, 2008 through and including March 31, 2009, the reduction was two and four-tenths (2.4) shares for each share issued pursuant to any Awards other than options or rights granted pursuant to the Predecessor Plans or pursuant to Options or Stock Appreciation Rights.  Such shares shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof.  If an outstanding Award for any reason expires or is terminated or canceled without having been exercised or settled in full, or if shares of Stock acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company at the Participant’s purchase price to effect a forfeiture of unvested shares upon termination of Service, the shares of Stock allocable to the terminated portion of such Award or such forfeited or repurchased shares 

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of Stock shall be added back to the Plan share reserve in an amount corresponding to the reduction in such share reserve previously made in accordance with the rules described above in this Section 4.1 and again be available for issuance under the Plan.  Shares of Stock shall not be deemed to have been issued pursuant to the Plan with respect to any portion of an Award (other than a SAR that may be settled in shares of Stock and/or cash) that is settled in cash. Shares withheld in satisfaction of tax withholding obligations pursuant to Section 14.2 shall not again become available for issuance under the Plan.  Upon exercise of a SAR, whether in cash or shares of Stock, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the SAR is exercised.  If the exercise price of an Option is paid by “net exercise” (as described in Section 6.3(a)(iv)) or tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant, the number of shares available for issuance under the Plan shall be reduced by the gross number of shares for which the Option is exercised.  
4.2    Adjustments for Changes in Capital Structure.  In the event of any change in the Stock through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number and class of shares subject to the Plan, in the ISO Share Limit (as defined in Section 5.3(a)), the Award limits set forth in Section 5.4 and to any outstanding Awards, and in the exercise or purchase price per share under any outstanding Award.  Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the exercise or purchase price under any Award be decreased to an amount less than the par value, if any, of the stock subject to such Award.  The adjustments determined by the Committee pursuant to this Section 4.2 shall be final, binding and conclusive.
5.    ELIGIBILITY AND AWARD LIMITATIONS.
5.1    Persons Eligible for Awards.  Awards may be granted only to Employees, Directors and Consultants.  No Award shall be granted prior to the date on which such person commences Service.
5.2    Participation.  Except as otherwise provided in Section 3.2, Awards are granted solely at the discretion of the Committee.  Eligible persons may be granted more than one (1) Award.  However, eligibility in accordance with this Section shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.
5.3    Incentive Stock Option Limitations.
(a)    Persons Eligible.  An Incentive Stock Option may be granted only to a person who, on the effective date of grant, is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an “ISO-Qualifying Corporation”).  Any 

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person who is not an Employee of an ISO-Qualifying Corporation on the effective date of the grant of an Option to such person, but who is otherwise an Employee or a Director of, or Consultant to, the Company or any of its Affiliates, may be granted only a Nonstatutory Stock Option.  
(b)    ISO Share Limit.  Subject to adjustment as provided in Section 4.2, the maximum number of shares of Stock that may be issued upon the exercise of Incentive Stock Options granted under the Plan and the Predecessor Plans will equal the aggregate Share number stated in the first sentence of Section 4.1, plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated thereunder, any shares of Stock that become available for issuance under the Plan pursuant to Section 4.1 (the “ISO Share Limit”).
(c)    Fair Market Value Limitation.  To the extent that options designated as Incentive Stock Options (granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by a Participant for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such options which exceeds such amount shall be treated as Nonstatutory Stock Options.  For purposes of this Section, options designated as Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is granted.  If the Code is amended to provide for a different limitation from that set forth in this Section, such different limitation shall be deemed incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the Code.  If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is exercising.  In the absence of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the Option first.  Upon exercise, each portion shall be separately identified.  
(d)    Leaves of Absence.  For purposes of Incentive Stock Options, no leave of absence may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.
5.4    Award Limits.
(a)    Section 162(m) Award Limits.  The following limits shall apply to the grant of any Award if, at the time of grant, the Company is a “publicly held corporation” within the meaning of Section 162(m).
(i)    Options and SARs.  Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal year of the Company one or more Options or Freestanding SARs which in the aggregate are for more than four million (4,000,000) 

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shares of Stock.  An Option which is canceled (or a Freestanding SAR as to which the exercise price is reduced to reflect a reduction in the Fair Market Value of the Stock) in the same fiscal year of the Company in which it was granted shall continue to be counted against such limit for such fiscal year.
(ii)    Stock Awards. Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal year of the Company one or more Stock Awards intended to qualify as “performance based compensation” under Section 162(m) for more than one million five hundred thousand (1,500,000) shares of Stock in the aggregate.  
(iii)    Performance Awards.  Subject to adjustment as provided in Section 4.2, no Employee shall be granted (A) an Award of Performance Shares intended to qualify as “performance based compensation” under Section 162(m), which could result in such Employee receiving more than one million five hundred thousand (1,500,000) shares of Stock in the aggregate during any fiscal year of the Company, or (B) an Award of Performance Units intended to qualify as “performance based compensation” under Section 162(m), which could result in such Employee receiving more than two million five hundred thousand dollars ($2,500,000) during any fiscal year of the Company.  
(b)    Clarification of Limits.  For purposes of clarification regarding the foregoing limits, (A) Awards granted in previous fiscal years will not count against the Award limits in subsequent fiscal years even if the Awards from previous fiscal years are earned or otherwise settled in fiscal years following the fiscal year in which they are granted, and (B) more than one Award of the same type can be granted in a fiscal year as long as the aggregate number of shares of Stock granted pursuant to all Awards of that type (and that are intended to qualify as “performance based compensation” under Section 162(m)) do not exceed the fiscal year limit applicable to that Award type.
6.    TERMS AND CONDITIONS OF OPTIONS.
Options shall be evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Committee shall from time to time establish.  No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing Options may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
6.1    Exercise Price.  The exercise price for each Option shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the Option and (b) no Incentive Stock Option granted to a Ten Percent Owner shall have an exercise price per share less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the effective date of grant of the Option.  Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than the minimum exercise price set forth above if such Option is granted 

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pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Sections 409A and 424(a) of the Code.
6.2    Exercisability and Term of Options.  Options shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration of  seven (7) years after the effective date of grant of such Option, and (b) no Incentive Stock Option granted to a Ten Percent Owner shall be exercisable after the expiration of five (5) years after the effective date of grant of such Option.  Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, any Option granted hereunder to an Employee, Consultant or Director shall terminate seven (7) years after the effective date of grant of the Option, unless earlier terminated in accordance with its provisions.
6.3    Payment of Exercise Price.
(a)    Forms of Consideration Authorized.  Except as otherwise provided below, payment of the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice of exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided further, however, that shares of Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that (A) shares are used to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or (v) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (v) by any combination thereof.  The Committee may at any time or from time to time grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration.
(b)    Limitations on Forms of Consideration.
(i)    Tender of Stock.  Notwithstanding the foregoing, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of 

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any law, regulation or agreement restricting the redemption of the Company’s stock.  Unless otherwise provided by the Committee, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Participant for more than six (6) months (or such longer or shorter period as necessary to avoid a charge to earnings for financial accounting purposes) and not used for another Option exercise by attestation during any such period or were not acquired, directly or indirectly, from the Company. 
(ii)    Cashless Exercise.  The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise of Options by means of a Cashless Exercise.
6.4    Effect of Termination of Service.  An Option shall be exercisable after a Participant’s termination of Service to such extent and during such period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option or in another written agreement between the Company and the Participant.
6.5    Transferability of Options.  During the lifetime of the Participant, an Option shall be exercisable only by the Participant or the Participant’s guardian or legal representative.  No Option shall be assignable or transferable by the Participant, except by will or by the laws of descent and distribution.  Notwithstanding the foregoing, to the extent permitted by the Committee, in its discretion, and set forth in the Award Agreement evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions to Form S‐8 Registration Statement under the Securities Act.
7.    TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.
SARs shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the Committee shall from time to time establish.  No SAR or purported SAR shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing SARs may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
7.1    Types of SARs Authorized.  SARs may be granted in tandem with all or any portion of a related Option (a “Tandem SAR”) or may be granted independently of any Option (a “Freestanding SAR”).  A Tandem SAR may be granted either concurrently with the grant of the related Option or at any time thereafter prior to the complete exercise, termination, expiration or cancellation of such related Option.
7.2    Exercise Price.  The exercise price for each SAR shall be established in the discretion of the Committee; provided, however, that (a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related Option and (b) the 

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exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of a share of Stock on the effective date of grant of the SAR.
7.3    Exercisability and Term of SARs.
(a)    Tandem SARs.  Tandem SARs shall be exercisable only at the time and to the extent, and only to the extent, that the related Option is exercisable, subject to such provisions as the Committee may specify where the Tandem SAR is granted with respect to less than the full number of shares of Stock subject to the related Option.  The Committee may, in its discretion, provide in any Award Agreement evidencing a Tandem SAR that such SAR may not be exercised without the advance approval of the Company and, if such approval is not given, then the Option shall nevertheless remain exercisable in accordance with its terms.  A Tandem SAR shall terminate and cease to be exercisable no later than the date on which the related Option expires or is terminated or canceled.  Upon the exercise of a Tandem SAR with respect to some or all of the shares subject to such SAR, the related Option shall be canceled automatically as to the number of shares with respect to which the Tandem SAR was exercised.  Upon the exercise of an Option related to a Tandem SAR as to some or all of the shares subject to such Option, the related Tandem SAR shall be canceled automatically as to the number of shares with respect to which the related Option was exercised.
(b)    Freestanding SARs.  Freestanding SARs shall be exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award Agreement evidencing such SAR; provided, however, that no Freestanding SAR shall be exercisable after the expiration of eight (8) years after the effective date of grant of such SAR.
7.4    Exercise of SARs.  Upon the exercise (or deemed exercise pursuant to Section 7.5) of an SAR, the Participant (or the Participant’s legal representative or other person who acquired the right to exercise the SAR by reason of the Participant’s death) shall be entitled to receive payment of an amount for each share with respect to which the SAR is exercised equal to the excess, if any, of the Fair Market Value of a share of Stock on the date of exercise of the SAR over the exercise price.  Payment of such amount shall be made in cash, shares of Stock, or any combination thereof as determined by the Committee.  Unless otherwise provided in the Award Agreement evidencing such SAR, payment shall be made in a lump sum as soon as practicable following the date of exercise of the SAR.  The Award Agreement evidencing any SAR may provide for deferred payment in a lump sum or in installments.  When payment is to be made in shares of Stock, the number of shares to be issued shall be determined on the basis of the Fair Market Value of a share of Stock on the date of exercise of the SAR.  For purposes of Section 7, an SAR shall be deemed exercised on the date on which the Company receives notice of exercise from the Participant.
7.5    Deemed Exercise of SARs.  If, on the date on which an SAR would otherwise terminate or expire, the SAR by its terms remains exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such SAR, then any portion of such SAR which has not previously been exercised shall automatically be deemed to be exercised as of such date with respect to such portion.

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7.6    Effect of Termination of Service.  An SAR shall be exercisable after a Participant’s termination of Service to such extent and during such period as determined by the Committee, in its discretion, and set forth in the Award Agreement evidencing such SAR or in another written agreement between the Company and the Participant.
7.7    Nontransferability of SARs.  SARs may not be assigned or transferred in any manner except by will or the laws of descent and distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant’s guardian or legal representative.
8.    TERMS AND CONDITIONS OF STOCK AWARDS.
Stock Awards shall be evidenced by Award Agreements specifying whether the Award is a Stock Bonus, a Stock Purchase Right or a Restricted Stock Unit, and the number of shares of Stock subject to the Award, in such form as the Committee shall from time to time establish.  No Stock Award or purported Stock Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing Stock Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
8.1    Types of Stock Awards Authorized.  Stock Awards may be in the form of a Stock Bonus, a Stock Purchase Right or a Restricted Stock Unit.  Stock Awards may be granted or vest upon such conditions as the Committee shall determine, including, without limitation, service to a Participating Company or upon the attainment of one or more Performance Goals.  If either the grant of a Stock Award or the lapsing of the Restriction Period is to be contingent upon the attainment of one or more Performance Goals based on Performance Measures, the Committee shall follow procedures set forth in Section 10 if they are intended to qualify as “performance based compensation” under Section 162(m).
8.2    Purchase Price.  The purchase price for shares of Stock issuable under each Stock Purchase Right shall be established by the Committee in its discretion.  No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares of Stock pursuant to a Stock Bonus, the consideration for which shall be services actually rendered to a Participating Company or for its benefit.  Notwithstanding the foregoing, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Stock subject to such Stock Award.
8.3    Purchase Period.  A Stock Purchase Right shall be exercisable within a period established by the Committee, which shall in no event exceed thirty (30) days from the effective date of the grant of the Stock Purchase Right; provided, however, that no Stock Purchase Right granted to an Employee, a Consultant or a Director may become exercisable prior to the date on which such person commences Service.
8.4    Payment of Purchase Price.  Stock Bonuses shall be issued in consideration for past services actually rendered to a Participating Company or for its benefit.  At 

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the time of grant of Restricted Stock Units, the Committee will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Stock acquired pursuant to Restricted Stock Units.  Except as otherwise provided below, payment of the purchase price for the number of shares of Stock being purchased pursuant to any Stock Purchase Right or delivered pursuant to a Restricted Stock Unit shall be made (i) in cash, by check, or cash equivalent, (ii) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law, or (iii) by any combination thereof, in each case consistent with any requirements under applicable law regarding payment in respect of the “par value” of the Stock.  The Committee may at any time or from time to time grant Stock Purchase Rights or Restricted Stock Units which do not permit all of the foregoing forms of consideration to be used in payment of the purchase price or which otherwise restrict one or more forms of consideration.  
8.5    Vesting; Restrictions on Transfer; Deferral.  Shares issued pursuant to any Stock Award (including, without limitation, the percentage of actual achievement relative to pre-established target Performance Goals) may or may not be made subject to vesting conditioned upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria, including, without limitation, a Performance Award Formula and/or Performance Goals (the “Vesting Conditions”), as shall be established by the Committee and set forth in the Award Agreement evidencing such Award.  During any period (the “Restriction Period”) in which shares acquired pursuant to a Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to a Change of Control as provided in Section 12, or as provided in Section 8.8.  Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions. Restricted Stock Units may be subject to such conditions that may delay the delivery of the shares of Stock (or their cash equivalent) subject to Restricted Stock Units after the vesting of such Award. 
8.6    Voting Rights; Dividends and Distributions.  Except as provided in this Section, Section 8.5 and any Award Agreement, during the Restriction Period applicable to shares subject to a Stock Bonus or Restricted Stock Purchase Right, the Participant shall have all of the rights of a stockholder of the Company holding shares of Stock, including the right to vote such shares and to receive all dividends and other distributions paid with respect to such shares.  With respect to Restricted Stock Units, the Committee may, in its sole discretion, provide that dividend equivalents shall not be paid or provide either for the current payment of dividend equivalents or for the accumulation and payment of dividend equivalents to the extent that the Restricted Stock Units become nonforfeitable.  In the event of a dividend or distribution paid in shares of Stock or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.2, then any and all new, substituted or additional securities or other property (other than normal cash dividends) to which the Participant is entitled by reason of the Participant’s Stock Award shall be immediately subject to the same Vesting Conditions 

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and, if applicable, deferral elections as the shares subject to the Stock Award with respect to which such dividends or distributions were paid or adjustments were made.
8.7    Effect of Termination of Service.  Unless otherwise provided by the Committee in the grant of a Stock Award and set forth in the Award Agreement or in another written agreement between the Company and the Participant, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including the Participant’s death or disability), then (i) the Company shall have the option to repurchase for the purchase price paid by the Participant any shares acquired by the Participant pursuant to a Stock Purchase Right which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service, (ii) the Participant shall forfeit to the Company any shares acquired by the Participant pursuant to a Stock Bonus which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service and (iii) the Participant shall forfeit all rights in any portion of a Restricted Stock Unit award that has not vested as of the date of the Participant’s termination of Service.  The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.
8.8    Nontransferability of Stock Award Rights.  Rights to acquire shares of Stock pursuant to a Stock Award may not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant’s beneficiary, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, shall be exercisable only by the Participant or the Participant’s guardian or legal representative.
9.    TERMS AND CONDITIONS OF PERFORMANCE AWARDS.  Performance Awards shall be evidenced by Award Agreements in such form as the Committee shall from time to time establish.  No Performance Award or purported Performance Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing Performance Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions:
9.1    Types of Performance Awards Authorized.  Performance Awards may be in the form of either Performance Shares or Performance Units.  Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance Units subject thereto, the Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and the other terms, conditions and restrictions of the Award.  Awards intended to qualify as “performance based compensation” under Section 162(m) shall also be subject to the provisions of Section 10.
9.2    Initial Value of Performance Shares and Performance Units.  Unless otherwise provided by the Committee in granting a Performance Award, each Performance Share shall have an initial value equal to the Fair Market Value of one (1) share of Stock, subject to adjustment as provided in Section 4.2, on the effective date of grant of the Performance Share, and each Performance Unit shall have an initial value of one hundred dollars ($100).  The final 

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value payable to the Participant in settlement of a Performance Award determined on the basis of the applicable Performance Award Formula will depend on the extent to which Performance Goals established by the Committee are attained within the applicable Performance Period established by the Committee.
9.3    Establishment of Performance Period, Performance Goals and Performance Award Formula.  In granting each Performance Award, the Committee shall establish in writing the applicable Performance Period, Performance Award Formula and one or more Performance Goals which, when measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula the final value of the Performance Award to be paid to the Participant.  The Company shall notify each Participant granted a Performance Award of the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award Formula.
9.4    Measurement of Performance Goals.  The Performance Goals shall be established by the Committee on the basis of achievement of Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Committee in its discretion, except with respect to Awards intended to qualify as “performance based compensation” under Section 162(m), in which case the provisions of Section 10 will apply thereto.  Performance Goals may include a minimum, maximum, target level and intermediate levels of performance, with the final value of a Performance Award determined under the applicable Performance Award Formula by the level attained during the applicable Performance Period.  A Performance Goal may be stated as an absolute value or as a value determined relative to a standard selected by the Committee.  Performance Goals may differ from Participant to Participant and from Award to Award.  
9.5    Settlement of Performance Awards.
(a)    Determination of Final Value.  As soon as practicable following the completion of the Performance Period applicable to a Performance Award, the Committee shall determine the extent to which the applicable Performance Goals have been attained and the resulting final value of the Award earned by the Participant and to be paid upon its settlement in accordance with the applicable Performance Award Formula.
(b)    Discretionary Adjustment of Award Formula.  In its discretion, the Committee may, either at the time it grants a Performance Award or at any time thereafter, provide for the positive or negative adjustment of the Performance Award Formula applicable to a Performance Award granted to any Participant to reflect such Participant’s individual performance in his or her position with the Company or such other factors as the Committee may determine, except with respect to Awards intended to qualify as “performance based compensation” under Section 162(m), in which case the provisions of Section 10 will apply thereto.  If permitted under a Participant’s Award Agreement, the Committee shall have the discretion, on the basis of such criteria as may be established by the Committee, to reduce some or all of the value of the Performance Award that would otherwise be paid to the Participant upon its settlement notwithstanding the attainment of any Performance Goal and the resulting value of the Performance Award determined in accordance with the Performance Award Formula.  

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(c)    Effect of Leaves of Absence.  Unless otherwise required by law, payment of the final value, if any, of a Performance Award held by a Participant who has taken in excess of thirty (30) days of leaves of absence during a Performance Period shall be prorated on the basis of the number of days of the Participant’s Service during the Performance Period during which the Participant was not on a leave of absence.
(d)    Notice to Participants.  As soon as practicable following the Committee’s determination in accordance with Sections 9.5(a) and (b), the Company shall notify each Participant of the determination of the Committee.
(e)    Payment in Settlement of Performance Awards.  As soon as practicable following the Committee’s determination in accordance with Sections 9.5(a) and (b), payment shall be made to each eligible Participant (or such Participant’s legal representative or other person who acquired the right to receive such payment by reason of the Participant’s death) of the final value of the Participant’s Performance Award.  Payment of such amount shall be made in cash, shares of Stock, or a combination thereof as determined by the Committee.  Unless otherwise provided in the Award Agreement evidencing a Performance Award, payment shall be made in a lump sum.  An Award Agreement may provide for deferred payment in a lump sum or in installments at the election of the Participant or otherwise.  If any payment is to be made on a deferred basis, the Committee may, but shall not be obligated to, provide for the payment during the deferral period of Dividend Equivalents or interest.
(f)    Provisions Applicable to Payment in Shares.  If payment is to be made in shares of Stock, the number of such shares shall be determined by dividing the final value of the Performance Award by the value of a share of Stock determined by the method specified in the Award Agreement.  Such methods may include, without limitation, the closing market price on a specified date (such as the settlement date) or an average of market prices over a series of trading days.  Shares of Stock issued in payment of any Performance Award may be fully vested and freely transferable shares or may be shares of Stock subject to Vesting Conditions as provided in Section 8.5.  Any shares subject to Vesting Conditions shall be evidenced by an appropriate Award Agreement and shall be subject to the provisions of Sections 8.5 through 8.8 above.
9.6    Dividend Equivalents.  In its discretion, the Committee may provide in the Award Agreement evidencing any Performance Share Award that the Participant shall be entitled to receive Dividend Equivalents with respect to the payment of cash dividends on Stock having a record date prior to the date on which the Performance Shares are settled or forfeited.  Dividend Equivalents may be paid currently or may be accumulated and paid to the extent that Performance Shares become nonforfeitable, as determined by the Committee.  Settlement of Dividend Equivalents may be made in cash, shares of Stock, or a combination thereof as determined by the Committee, and may be paid on the same basis as settlement of the related Performance Share as provided in Section 9.5.  Dividend Equivalents shall not be paid with respect to Performance Units.
9.7    Effect of Termination of Service.  The effect of a Participant’s termination of Service on the Participant’s Performance Award shall be as determined by the 

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Committee, in its discretion, and set forth in the Award Agreement evidencing such Performance Award or in another written agreement between the Company and the Participant.
9.8    Nontransferability of Performance Awards.  Prior to settlement in accordance with the provisions of the Plan, no Performance Award may be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except by will or by the laws of descent and distribution.  All rights with respect to a Performance Award granted to a Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.
10.    PERFORMANCE-BASED COMPENSATION UNDER CODE SECTION 162(M).
10.1    General.  If the Committee, which is constituted to comply with Section 3.4, in its discretion, decides to grant an Award intended to qualify as “performance-based compensation” under Section 162(m), the provisions of this Section 10 will control over any contrary provision in the Plan; provided, however, nothing in this Section 10 will prohibit the ability of a Committee in its discretion to grant Awards that are not intended to qualify as “performance-based compensation” under Section 162(m) to such Participants that are based on Performance Goals or other specific criteria or goals, but that do not satisfy the requirements of this Section 10.
10.2    Performance Goals.  The granting and/or vesting of Stock Awards or Awards of Performance Shares or Performance Units may be made subject to the attainment of Performance Goals relating to one or more measures of business or financial performance (each, a “Performance Measure”), which may include one or more of the following, as determined by the Committee:
(i)    growth in revenue or product revenue;
(ii)    recurring revenue;
(iii)    annualized recurring revenue;
(iv)    growth in the market price of the Stock;
(v)    operating margin;
(vi)    margin, including gross margin;
(vii)    operating income;
(viii)    operating income after taxes;
(ix)    operating profit or net operating profit;

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(x)    pre-tax profit;
(xi)    earnings before interest, taxes and depreciation;
(xii)    earnings before interest, taxes, depreciation and amortization;
(xiii)    income, before or after taxes (including net income);
(xiv)    total return on shares of Stock or total stockholder return;
(xv)    earnings, including but not limited to earnings per share and net earnings;
(xvi)    return on stockholder equity or average stockholders’ equity;
(xvii)    return on net assets; 
(xviii)    return on assets, investment or capital employed;
(xix)    expenses;
(xx)    cost reduction goals;
(xxi)    return on capital;
(xxii)    economic value added;
(xxiii)    market share; 
(xxiv)    operating cash flow;
(xxv)    cash flow, as indicated by book earnings before interest, taxes, depreciation and amortization;
(xxvi)    cash flow per share;
(xxvii)    improvement in or attainment of working capital levels;
(xxviii)     debt reduction;
(xxix)    debt levels;
(xxx)    capital expenditures;
(xxxi)    sales or revenue targets, including product or product family targets;

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(xxxii)    bookings;
(xxxiii)     billings;
(xxxiv)     workforce diversity;
(xxxv)    customer satisfaction;
(xxxvi)     implementation or completion of projects or processes;
(xxxvii)    improvement in or attainment of working capital levels; 
(xxxviii)    stockholders’ equity; and
(xxxix)    other measures of performance selected by the Committee to the extent consistent with Section 162(m).
10.3    Performance Goals Based on Performance Measures.  
(a)    Determination of Performance Goals Based on Performance Measures.  Performance Goals based on Performance Measures may differ from Participant to Participant and from Award to Award.  In establishing a Performance Goal based on Performance Measures, the Committee may provide that performance shall be appropriately adjusted as follows: 
(i)    to include or exclude restructuring and/or other nonrecurring charges;
(ii)    to include or exclude exchange rate effects, as applicable, for non-U.S. dollar denominated Performance Goals; 
(iii)    to include or exclude the effects of changes to generally accepted accounting principles required by the Financial Accounting Standards Board; 
(iv)    to include or exclude the effects of any statutory adjustments to corporate tax rates; 
(v)    to include or exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles; 
(vi)    to include or exclude the effect of payment of bonuses under any cash bonus plan of the Company;
(vii)    to include or exclude the effect of stock based compensation and/or deferred compensation;
(viii)    to include or exclude any other unusual, non-recurring gain or loss or other extraordinary item; 

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(ix)    to respond to, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development; 
(x)    to respond to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions; to include or exclude the effects of divestitures, acquisitions or joint ventures; 
(xi)    to include or exclude the effects on reported financial results of changes in accounting treatment for certain transactions as a result of business model changes;
(xii)    to include or exclude the effects of discontinued operations that do not qualify as a segment of a business unit under generally accepted accounting principles;
(xiii)    to assume that any business divested by the Company achieved performance objectives at targeted levels during the balance of a Performance Period following such divestiture; 
(xiv)    to include or exclude the effect of any change in the outstanding shares of Stock by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to common shareholders other than regular cash dividends;
(xv)    to reflect a corporate transaction, such as a merger, consolidation, separation (including a spinoff or other distribution of stock or property by a corporation), or reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code); 
(xvi)    to reflect any partial or complete corporate liquidation;
(xvii)    to reflect shippable backlog; and
(xviii)    to include or exclude the amortization of purchased intangibles, technology license arrangements and incomplete technology.
An Award may contain provisions for achievement of Performance Goals that are not based on Performance Measures (“Non-Performance Measure Goals”), but achievement, or non-achievement of any such Performance Goals may only operate to reduce the amount of an actual Award determined based on achievement of Performance Goals that are based on Performance Measures.  That is, achievement of Non-Performance Measure Goals shall be viewed as an act of negative discretion by the Committee for purposes of determining an actual Award.
(b)    Procedures.  To the extent necessary to comply with the performance-based compensation provisions of Section 162(m), with respect to any Award granted subject to Performance Goals based on Performance Measures and intended to qualify as 

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“performance-based compensation” under Section 162(m), within the first twenty-five percent (25%) of the Performance Period, but in no event more than ninety (90) days following the commencement of any Performance Period (or such other time as may be required or permitted by Section 162(m)), the Committee will, in writing, (i) designate one or more Participants to whom an Award will be made, (ii) select the Performance Goals based on Performance Measures applicable to the Performance Period, (iii) establish the Performance Goals based on Performance Measures, and amounts of such Awards, as applicable, which may be earned for such Performance Period, (iv) specify the relationship between Performance Goals based on Performance Measures and the amounts of such Awards, as applicable, to be earned by each Participant for such Performance Period, and (v) provide for such other terms and conditions as the Committee may determine that would not otherwise cause Awards to cease to qualify as “performance based compensation” under Section 162(m).
(c)    Additional Limitations.  Notwithstanding any other provision of the Plan, any Award which is granted to a Participant and is intended to constitute qualified performance-based compensation under Section 162(m) will be subject to any additional limitations set forth in the Code (including any amendment to Section 162(m)) or any regulations and ruling issued thereunder that are requirements for qualification as qualified performance-based compensation as described in Section 162(m), and the Plan will be deemed amended to the extent necessary to conform to such requirements.
(d)    Determination of Amounts Earned.  Following the completion of each Performance Period, the Committee will certify in writing whether the applicable Performance Goals based on Performance Measures have been achieved for such Performance Period.  A Participant will be eligible to receive payment pursuant to an Award intended to qualify as “performance-based compensation” under Section 162(m) for a Performance Period only if the Performance Goals based on Performance Measures for such period are achieved.  In determining the amounts earned by a Participant pursuant to an Award intended to qualified as “performance-based compensation” under Section 162(m), the Committee will have the right to (a) reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for the Performance Period, (b) determine what actual Award, if any, will be paid in the event of a termination of employment as the result of a Participant’s death or disability or upon a Change of Control (as defined in Section 12) or in the event of a termination of employment following a Change of Control prior to the end of the Performance Period, and (c) determine what actual Award, if any, will be paid in the event of a termination of employment other than as the result of a Participant’s death or disability prior to a Change of Control and prior to the end of the Performance Period to the extent an actual Award would have otherwise been achieved had the Participant remained employed through the end of the Performance Period.
11.    STANDARD FORMS OF AWARD AGREEMENT.
11.1    Award Agreements.  Each Award shall comply with and be subject to the terms and conditions set forth in the appropriate form of Award Agreement approved by the 

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Committee and as amended from time to time.  Any Award Agreement may consist of an appropriate form of Notice of Grant and a form of Agreement incorporated therein by reference, or such other form or forms as the Committee may approve from time to time.
11.2    Authority to Vary Terms.  The Committee shall have the authority from time to time to vary the terms of any standard form of Award Agreement either in connection with the grant or amendment of an individual Award or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any such new, revised or amended standard form or forms of Award Agreement are not inconsistent with the terms of the Plan. 
11.3    Clawback/Recovery.  All Awards granted under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition, the Committee may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Committee determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of Common Stock or other cash or property upon the occurrence of Cause.
12.    CHANGE OF CONTROL.
12.1    Awards Granted Prior to January 24, 2008.  The following provisions shall control for Awards granted prior to January 24, 2008:
(a)    Except as otherwise provided in a Participant’s Award Agreement: 
(i)    An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with respect to the Company:  (i) the direct or indirect sale or exchange by the stockholders of the Company of all or substantially all of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one or more subsidiaries of the Company); or (iv) a liquidation or dissolution of the Company.
(ii)    A “Change in Control” shall mean an Ownership Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of an Ownership Change Event described in Section 12.1(a)(iii), the entity to which the assets of the Company were transferred.
(b)    Effect of Change in Control on Options, SARs and Restricted Stock Units.  In the event of a Change in Control, the surviving, continuing, successor, or 

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purchasing entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume the Company’s rights and obligations under outstanding Options, SARs and Restricted Stock Units or substitute for outstanding Options, SARs and Restricted Stock Units substantially equivalent equity awards for the Acquiror’s stock.  In the event the Acquiror elects not to assume or substitute for outstanding Options, SARs or Restricted Stock Units in connection with a Change in Control, the Committee shall provide that any unexercised and/or unvested portions of such outstanding Awards shall be immediately exercisable and vested in full as of the date thirty (30) days prior to the date of the Change in Control.  The exercise and/or vesting of any Option, SAR or Restricted Stock Unit that was permissible solely by reason of this paragraph 11.2 shall be conditioned upon the consummation of the Change in Control.  Any Options, SARs or Restricted Stock Units which are not assumed or replaced by the Acquiror in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control.
(c)    Effect of Change in Control on Stock Awards.  The Committee may, in its discretion, provide in any Award Agreement evidencing a Stock Award that, in the event of a Change in Control, the lapsing of the Restriction Period applicable to the shares subject to the Stock Award held by a Participant whose Service has not terminated prior to such date shall be accelerated effective as of the date of the Change in Control to such extent as specified in such Award Agreement.  Any acceleration of the lapsing of the Restriction Period that was permissible solely by reason of this Section 12.1(c) and the provisions of such Award Agreement shall be conditioned upon the consummation of the Change in Control.  
(d)    Effect of Change in Control on Performance Awards.  The Committee may, in its discretion, provide in any Award Agreement evidencing a Performance Award that, in the event of a Change in Control, the Performance Award held by a Participant whose Service has not terminated prior to such date shall become payable effective as of the date of the Change in Control to such extent as specified in such Award Agreement.
12.2    Awards Granted On or After January 24, 2008.  The following provisions shall control for Awards granted on or after January 24, 2008:
(a)    Except as otherwise provided in a Participant’s Award Agreement, “Change of Control” shall mean a change of control of the Company of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement; provided, however, that anything in this Plan to the contrary notwithstanding, a Change of Control shall be deemed to have occurred if:
(i)    any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity or person, or any syndicate or group deemed to be a person under Section 14(d)(2) of the Exchange Act, is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined 

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voting power of the Company’s then outstanding securities entitled to vote in the election of directors of the Company;
(ii)    during any period of two (2) consecutive years, individuals who at the beginning of such period constituted the Board and any new directors, whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least three-fourths (3/4ths) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved (the “Incumbent Directors”), cease for any reason to constitute a majority thereof;
(iii)    there occurs a reorganization, merger, consolidation or other corporate transaction involving the Company (a “Transaction”), in each case with respect to which the stockholders of the Company immediately prior to such Transaction do not, immediately after the Transaction, own securities representing more than 50% of the combined voting power of the Company, a parent of the Company or other corporation resulting from such Transaction (counting, for this purpose, only those securities held by the Company’s stockholders immediately after the Transaction that were received in exchange for, or represent their continuing ownership of, securities of the Company held by them immediately prior to the Transaction); 
(iv)    all or substantially all of the assets of the Company are sold, liquidated or distributed; or 
(v)    there is a “Change of Control” or a “change in the effective control” of the Company within the meaning of Section 280G of the Code and the regulations promulgated thereunder.
(b)    The Committee or the Board may, in its discretion, provide in any Award Agreement, severance plan or other individual agreement, that, in the event of a Change of Control of the Company, the Award held by a Participant shall become vested, exercisable and/or payable to such extent as specified in such document.  
(c)    In the event of a Change of Control, the surviving, continuing, successor, or purchasing entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume the Company’s rights and obligations under outstanding Awards or substitute for outstanding Awards substantially equivalent equity awards for the Acquiror’s stock.  In the event the Acquiror elects not to assume or substitute for outstanding Awards in connection with a Change of Control, any unexercised and/or unvested portions of such outstanding Awards shall become immediately exercisable and vested in full as of immediately prior to the effective date of the Change of Control.  The exercise and/or vesting of any Award that was permissible solely by reason of this paragraph 11.2 shall be conditioned upon the consummation of the Change in Control.  Any Awards which are not assumed or replaced by the Acquiror in connection with the Change of Control nor exercised as of the time of consummation of the Change of Control shall terminate and cease to be outstanding effective as of the time of consummation of the Change of Control.

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13.    COMPLIANCE WITH SECURITIES LAW.
13.1    The grant of Awards and the issuance of shares of Stock pursuant to any Award shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities and the requirements of any stock exchange or market system upon which the Stock may then be listed.  In addition, no Award may be exercised or shares issued pursuant to an Award unless (i) a registration statement under the Securities Act shall at the time of such exercise or issuance be in effect with respect to the shares issuable pursuant to the Award or (ii) in the opinion of legal counsel to the Company, the shares issuable pursuant to the Award may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained.  As a condition to issuance of any Stock, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.
13.2    If the exercise of an Award, or the purchase or delivery of shares of Stock subject to an Award, following the termination of the Participant’s Service would be prohibited at any time during the applicable post-termination period solely because the issuance of shares of Stock would violate the registration requirements under the Securities Act, then the Award shall terminate on the earlier of (i) the expiration of a period of three (3) months after the termination of the Participant’s Service during which the exercise of the Award would not be in violation of such registration requirements, or (ii) the expiration of the term of the Award as set forth in the Award Agreement.
14.    TAX WITHHOLDING.
14.1    Tax Withholding in General.  Unless prohibited by applicable law, the Company shall have the right to deduct from any and all payments made under the Plan, or to require the Participant, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise of an Option, to make adequate provision for, the federal, state, local and foreign taxes, if any, required by law to be withheld by the Participating Company Group with respect to an Award or the shares acquired pursuant thereto.  The Company shall have no obligation to deliver shares of Stock, to release shares of Stock from an escrow established pursuant to an Award Agreement, or to make any payment in cash under the Plan until the Participating Company Group’s tax withholding obligations have been satisfied by the Participant.
14.2    Withholding in Shares.  Unless prohibited by applicable law, the Company shall have the right, but not the obligation, to deduct from the shares of Stock issuable to a Participant upon the exercise or settlement of an Award, or to accept from the Participant the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to all or any part of the tax withholding obligations of the Participating 

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Company Group.  The Fair Market Value of any shares of Stock withheld or tendered to satisfy any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholding rates.
15.    TERMINATION OR AMENDMENT OF PLAN.
The Committee may terminate or amend the Plan at any time.  However, without the approval of the Company’s stockholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no other amendment of the Plan that would require approval of the Company’s stockholders under any applicable law, regulation or rule.  No termination or amendment of the Plan shall affect any then outstanding Award unless expressly provided by the Committee.  In any event, no termination or amendment of the Plan may adversely affect any then outstanding Award without the consent of the Participant, unless such termination or amendment is necessary to comply with any applicable law, regulation or rule.
16.    MISCELLANEOUS PROVISIONS.
16.1    Repurchase Rights.  Shares issued under the Plan may be subject to one or more repurchase options, or other conditions and restrictions as determined by the Committee in its discretion at the time the Award is granted.  The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company.  Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.
16.2    Provision of Information.  Each Participant shall be given access to information concerning the Company equivalent to that information generally made available to the Company’s common stockholders.
16.3    Rights as Employee, Consultant or Director.  No person, even though eligible pursuant to Section 5, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant.  Nothing in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, a Consultant or a Director, or interfere with or limit in any way any right of a Participating Company to terminate the Participant’s Service at any time.  To the extent that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award can in no event be understood or interpreted to mean that the Company is the Employee’s employer or that the Employee has an employment relationship with the Company.
16.4    Rights as a Stockholder.  A Participant shall have no rights as a stockholder with respect to any shares covered by an Award until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly 

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authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such shares are issued, except as provided in Section 4.2 or another provision of the Plan.
16.5    Fractional Shares.  The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award.
16.6    Beneficiary Benefits.  Subject to local laws and procedures, the Company may request appropriate written documentation from a trustee or other legal representative, court, or similar legal body, regarding any benefit under the Plan to which the Participant is entitled in the event of such Participant’s death before such representative shall be entitled to act on behalf of the Participant and before a beneficiary receives any or all of such benefit.  
16.7    Unfunded Obligation.  Participants shall have the status of general unsecured creditors of the Company.  Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974.  No Participating Company shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations.  The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder.  Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee, the Officer Committee or any Participating Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of any Participating Company.  The Participants shall have no claim against any Participating Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.
16.8    Section 409A. It is intended that all of the benefits and payments provided under this Plan satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A (together, with any state law of similar effect, “Section 409A”) provided under Treasury Regulations Sections 1.409A 1(b)(4), 1.409A 1(b)(5), 1.409A-1(b)(6) and 1.409A 1(b)(9), and this Plan will be construed to the greatest extent possible as consistent with those provisions.  To the extent not so exempt, this Plan and the payments and benefits to be provided hereunder are intended to, and will be construed and implemented so as to, comply in all respects with the applicable provisions of Section 409A.  For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A 2(b)(2)(iii)), any right to receive any installment payments under this Plan shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.  
To the extent that the Committee determines that any Award granted under the Plan is, or may reasonably be, subject to Section 409A, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences described in Section 409A(a)(1) of the Code (or any similar provision).  Such terms and conditions shall include, without limitation, the following provision (or comparable provision of similar effect):  

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“To the extent that (i) one or more of the payments or benefits received or to be received by a Participant upon “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h) without regard to alternative definitions thereunder) pursuant to this Plan would constitute deferred compensation subject to the requirements of Section 409A, and (ii) the Participant is a “specified employee” within the meaning of Section 409A at the time of separation from service, then to the extent delayed commencement of any portion of such payments or benefits is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments and benefits shall not be provided to the Participant prior to the earliest of (i) the expiration of the six-month period measured from the date of separation from service, (ii) the date of the Participant’s death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation on the Participant.  Upon the first business day following the expiration of such applicable Section 409A(a)(2)(B)(i) period, all payments and benefits deferred pursuant to this paragraph shall be paid in a lump sum to the Participant, and any remaining payments and benefits due shall be paid as otherwise provided herein.”  If an Award Agreement is silent as to such provision, the foregoing provision is hereby incorporated by reference directly into such Award Agreement.
In addition, and notwithstanding any provision of the Plan to the contrary, in the event that the Committee determines that any Award is, or may reasonably be, subject to Section 409A and related Department of Treasury guidance (including such Department of Treasury guidance issued from time to time) or contains any ambiguity as to the application of Section 409A, the Committee may, without the Participant’s consent, adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (A) exempt (or clarify the exemption of) the Award from Section 409A, (B) preserve the intended tax treatment of the benefits provided with respect to the Award, and/or (C) comply with the requirements of Section 409A and related Department of Treasury guidance.
Notwithstanding anything to the contrary contained herein, neither the Company nor any of its Affiliates shall be responsible for, or required to reimburse or otherwise make any Participant whole for, any tax or penalty imposed on, or losses incurred by, any Participant that arises in connection with the potential or actual application of Section 409A to any Award granted hereunder. 

-31-Ex10.61

EXPORT LOAN AGREEMENT

THIS EXPORT LOAN AGREEMENT between JPMorgan Chase Bank, N.A. and FuelCell Energy, Inc., a corporation organized and existing under the laws of Delaware (“Borrower”), is made and effective as of April 3, 2013.   This Agreement governs the Credit Accommodations described herein.   Borrower understands and agrees that:   (a) in granting, issuing, renewing, or extending such Credit Accommodations, Lender is relying upon Borrower's representations, warranties, and agreements set forth in this Agreement and the other Financing Documents; and (b) such Credit Accommodations shall be and remain subject to the following terms and conditions of this Agreement until all Borrower's Obligations hereunder have been paid and performed in full.

ARTICLE I CERTAIN DEFINED TERMS

Section 1.1      Definitions.   Capitalized terms used but not defined in this Agreement shall have the meanings assigned those terms in the Borrower Agreement. As used herein, the following terms shall have the following meanings unless the context requires otherwise:

“Adjusted One Month LIBOR Rate” means, an interest rate per annum equal to the sum of (i) 2.50% per annum plus (ii) the quotient of (a) the interest rate determined by Lender by reference to the Reuters Screen LIBOR01 Page (or on any successor or substitute page) to be the rate at approximately 11:00 a.m. London time, on such date or, if such date is not a Business Day, on the immediately preceding Business Day, for dollar deposits with a maturity equal to one (1) month divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal to one (1) month.

“Affiliate” shall mean any person, corporation or other entity directly or indirectly controlling, controlled by or under common control with the Borrower and any director or officer of the Borrower or any subsidiary of the Borrower.

“Agreement” shall mean this Export Loan Agreement, as it may be amended, modified, restated, renewed and extended from time to time, together with all exhibits and schedules attached hereto from time to time.   This Agreement is the Loan Agreement referred to in the Borrower Agreement.

“Borrower” shall mean FuelCell Energy, Inc. and its successors and assigns.

“Borrower  Agreement”  shall  mean  the  Borrower  Agreement  relating  to  the  Loan executed by Borrower for the benefit of Lender and Ex-Im Bank, in the form prescribed by Ex- Im Bank attached hereto as Exhibit A.

“Borrower's Obligations” shall mean all loans, advances, debts, expenses, fees, liabilities, and obligations, including any accrued interest thereon, for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is then required
or contingent, or such amounts are liquidated or determinable) owing by Borrower to Lender, of any kind or nature, present or future, arising in connection with the Loan. Borrower's Obligations 

are the Loan Facility Obligations, as defined in the Borrower Agreement, and are included in the Liabilities, as defined in the Security Agreement.

“Business Day” means a day (other than a Saturday or Sunday) on which banks generally are open in Connecticut and/or New York for the conduct of substantially all of their commercial lending activities and on which dealings in United States dollars are carried on in the London interbank market.

“CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall never be less than the Adjusted One Month LIBOR Rate.  Any change in the CB Floating Rate due to a change in the Prime Rate or the Adjusted One Month LIBOR Rate shall be effective from and including the effective date of such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.

“CBFR Interest” means interest accrued at the CB Floating Rate as contemplated by
Section 2.5.

“Collateral” shall mean all real or personal property and interests in real and personal property in and upon which Lender has been granted a Lien, including the Security Interest, as security for the payment and performance of Borrower's Obligations and all Proceeds thereof.

“Credit Period” shall be the period commencing on the Effective Date (as defined in the
Borrower Agreement) and ending on the Stated Final Disbursement Date.

“Default” means any Event of Default or any event or circumstance which will constitute an Event of Default after notice or the passage of time or both.

“Default   Rate”   shall   mean   the   interest   otherwise   applicable   to   the   Credit
Accommodations, plus three percent (3%).

“Dollars” and the sign “$” shall mean dollars in lawful money of the United States of America and, in relation to all payments in Dollars hereunder, (i) same day funds paid through the Regional Clearing House Interbank Payments System, or (ii) immediately available funds paid through the Regional Federal Reserve Bank, or (iii) such other funds as may then be required by the customary procedure of member banks of the Regional Clearing House Association for the settlement of payments.

“Domestic  Credit  Agreements”  shall  mean,  collectively,  the  following  agreements together with all amendments, modifications and extensions thereof: (i) that certain Purchasing Card Agreement governing the $1,800M internal guidance line to support business credit card use (as amended, modified, renewed or extended from time to time); (ii) Application and Agreement for Irrevocable Standby Letter of Credit dated January 13, 2010, executed by the Borrower, as applicant for the letter of credit described therein, to the Lender (as amended, modified, renewed or extended from time to time); (iii) Application and Agreement for Irrevocable Standby Letter of Credit dated November 17, 2008, executed by the Borrower, as  applicant for the letter of credit described therein, to the Lender (as amended, modified, renewed or extended from time to time); (iv) Application and Agreement for Irrevocable Standby Letter of Credit dated May 12, 2010, executed by the Borrower, as applicant for the letter of credit in the amount of up to $3,233,149 described therein, to the Lender (as amended, modified, renewed or extended from time to time), (v) Application and Agreement for

 Irrevocable Standby Letter of Credit dated May 12, 2010, executed by the Borrower, as applicant for the letter of credit in the amount of up to $3,121,999 described therein, to the Lender (as amended, modified, renewed or extended from time to time), (vi) Continuing Pledge Agreement dated as of April 4, 2007 executed by the Borrower in favor of the Lender (as amended, modified, renewed or extended from time to time); (vii) Control Agreement dated as of April 4, 2007 executed among the Borrower, the Lender and J.P. Morgan Securities Inc., as securities intermediary (as amended, modified, renewed or extended from time to time); (viii) Assignment of Deposit(s) dated as of November 3, 2008 executed by the Borrower in favor of the Lender (as amended, modified, renewed or extended from time to time); (ix) Assignment of Deposit Account dated as of January
13, 2010 executed by the Borrower in favor of the Lender (as amended, modified, renewed or extended from time to time); and (x) Assignment of Deposit Account dated as of May 12, 2010 executed by the Borrower in favor of the Lender (as amended, modified, renewed or extended from time to time).

“Eligible Export-Related Accounts Receivable” means any Accounts which (a) arise as a result of the export sale of Items, (b) are eligible for insurance under the Ex-Im Bank Short-Term Comprehensive Insurance Program but are not insured due to policy limitations, (c) are not more than 60 days past due, and (d) are not supported by sight drafts or letters of credit. In no event will Eligible Export-Related Accounts Receivable include (i) any Accounts Receivable of the types  described  in  paragraphs  (a) through  (bb)  of the definition  of Eligible Export-Related Accounts Receivable in the Borrower Agreement or (ii) any Accounts Receivable of any single Buyer whenever the portion of the Accounts Receivable of such Buyer which have not been paid within sixty (60) days from the due date is in excess of 50% of the total amount outstanding on all Accounts Receivable payable by such Buyer.

“Event of Default” shall have the meaning assigned to such term in Section 8.1 of this
Agreement.

“Ex-Im Bank” shall mean the Export-Import Bank of the United States, its successors and assigns.

“Ex-Im Bank Guarantee” shall mean the Master Guarantee Agreement between Lender and Ex-Im Bank, together with (i) the Super Delegated Authority Letter Agreement between Lender and Ex-Im Bank, (ii) the Affiliate Guarantee Authorization Agreement between Lender and Ex-Im Bank and (iii) the Loan Authorization Notice.

“Export-Related Borrowing Base” shall mean, at the date of determination thereof, (a) the sum of (i) the Export-Related Inventory Value multiplied by the Advance Rate applicable to Eligible Export-Related Inventory set forth in Section 5.B.(1.) of the Loan Authorization Notice plus (ii) the Export-Related Accounts Receivable Value multiplied by the Advance Rate applicable to Eligible Export-Related Accounts Receivable set forth in Section 5.B.(2.) of the Loan Authorization Notice, less (b) such reserves and in such amounts deemed necessary and  proper by Lender from time to time; provided, however, that no accounts receivable, inventory or general intangibles arising out of or related to the POSCO Contract shall be included in the Export-Related Borrowing Base.

“Export-Related Borrowing Base Certificate” shall mean a Borrowing Base Certificate in form and substance satisfactory to the Lender.

“Export-Related Collateral” shall mean all Export-Related Inventory, Export-Related Accounts Receivable (as such term of modified pursuant to the terms of the Waiver Letter), Export-Related General Intangibles, and all Proceeds.

“Financing Documents” shall mean, collectively, this Agreement, the Note, the Security Agreement, the Borrower Agreement, the Ex-Im Bank Guarantee, the Waiver Letter, the Letter of Credit Application(s), all Letters of Credit issued pursuant hereto, and any other documents, certificates and agreements which are executed and delivered by Borrower or any other Person evidencing, securing, guaranteeing or otherwise relating to Borrower's Obligations.   The Financing Documents are the Loan Documents, as defined in the Borrower Agreement.

“Highest Lawful Rate” shall mean the maximum nonusurious rate of interest permitted to be charged by applicable Federal or Connecticut law (whichever permits the higher lawful rate) from time to time in effect.
“Incorporated Covenants” shall have the meaning given such term in Article VII. “Lender” means JPMorgan Chase Bank, N.A., its successors and assigns.

“Letter of Credit Application” shall mean an Application and Agreement for Irrevocable Standby Letter of Credit or an Application and Agreement for Irrevocable Commercial Letter of Credit, as the case may be, in such form as is provided by Lender to Borrower and which is executed by Borrower and delivered to Lender in connection with a request for the issuance of a Standby Letter of Credit or a Commercial Letter of Credit, respectively, pursuant to this Agreement.

“LIBOR Advance” means the outstanding principal amount of the Note that is accruing interest at the LIBOR Rate as provided in Section 2.5.
2.5.
 
“LIBOR Interest” means interest accruing at the LIBOR Rate as contemplated by Section 2.5.

“LIBOR Period” means, the period commencing on the day the Borrower specifies as the day any part of the outstanding principal balance of the Note is to begin to accrue interest at the LIBOR Rate as contemplated by Section 2.5 and ending on the numerically corresponding day in the calendar month that is one month thereafter, and each period of one month thereafter commencing  on  the  last  day  of  the  preceding  LIBOR  Period  until  the  Borrower  elects  to thereafter have no part of the outstanding principal balance of the Note accrue interest at the LIBOR Rate pursuant to Section 2.5(e) ; provided, that (i) if any such LIBOR Period would end on a day other than a Business Day, such LIBOR Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such LIBOR Period shall end on the next preceding Business Day, (ii) any LIBOR Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the next succeeding calendar month) shall end on the last Business Day of the next succeeding calendar month, and (iii) any LIBOR Period that would otherwise end after the Stated Final Disbursement Date shall end on the Business Day after the Stated Final Disbursement Date.

“LIBOR Rate” means, for any LIBOR Period, the interest rate per annum equal to the sum of (i) 1.50% plus (ii) quotient of (a) the interest rate determined by Lender by reference to the Reuters 

Screen LIBOR01 Page (or on any successor or substitute page) to be the rate at approximately 11:00 a.m. London time, on the second Business Days immediately preceding the first day of the LIBOR Period for dollar deposits with a maturity equal to one (1) month divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal to one (1) month.

“Loan” means the credit facility described in Section 2.1.  The Loan is the Loan Facility, as defined in the Borrower Agreement.

“Loan Authorization Notice” shall mean the Loan Authorization Notice executed by Lender and delivered to and acknowledged by Ex-Im Bank setting forth the terms and conditions of the Loan, a copy of which is attached hereto as Exhibit B.  The Loan Authorization Notice is the Loan Authorization Notice, as defined in the Borrower Agreement.

“Maturity Date” shall mean the first Business Day following the Stated Final Disbursement Date; provided, however, that with regard to Letter of Credit Obligations outstanding on the Stated Final Disbursement Date, the Maturity Date for any Disbursement under the Letter(s) of Credit related thereto shall be the first Business Day following the date of such Disbursement.

“Note” shall mean the promissory note of even date herewith in the original principal amount of Eight Million and No/100 Dollars ($8,000,000) executed by Borrower and payable to Lender evidencing the outstanding principal balance of the Disbursements, together with all renewals, extensions, modifications, refinancings and consolidations of and substitutions for such promissory note.

“POSCO Contract” shall mean that certain Purchase and Sale Contract between Borrower and POSCO Power, a Korean Corporation, dated as of May 26, 2011 (as amended, modified, renewed or extended from time to time).

“Prime Rate” means the rate of interest per annum announced from time to time by the Lender as its prime rate.  The Prime Rate is a variable rate and each change in the Prime Rate is effective from and including the date the change is announced as being effective.  THE PRIME RATE IS A REFERENCE RATE AND MAY NOT BE THE BANK’S LOWEST RATE.

“Proceeds” or “proceeds” shall mean, when used with respect to any of the Collateral, all products and proceeds, cash and non-cash, within the meaning of the UCC and shall include the proceeds of any and all contracts, letters of credit and insurance policies.
“Property” means any interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible.

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to reserve requirements applicable to member banks of the Federal Reserve System.

“Reserve Requirement” means, with respect to any LIBOR Period, the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D.

“Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or of a Governmental Authority, in each case applicable to or binding upon the Person or any of its Property or to which the Person or any of its Property is subject.

“Security Agreement” shall mean the Security Agreement dated as of December 21,
2010, executed by Borrower in favor of Lender creating the Security Interest in the Collateral described therein, together with all amendments, modifications and extensions thereof.

“Security  Interest”  is  the  security  interest  in  the  Collateral  created  pursuant  to  the
Security Agreement.

“Stated Final Disbursement Date” means the date stipulated as the Final Disbursement
Date in Section 10 of the Loan Authorization Notice.

“Waiver Letter” shall mean that certain letter dated March 28, 2013  to Lender from Ex- Im Bank pursuant to which Ex-Im Bank waives some requirements under the Master Guarantee Agreement, subject to the conditions specified therein.

Section 1.2      Accounting Terms.   All accounting terms used but not defined in this Agreement or the Borrower Agreement shall be construed in accordance and conformity with GAAP applied on a consistent basis.  Except as expressly provided herein, terms used herein that are defined in the UCC and are not otherwise defined in this Agreement or the Borrower Agreement shall have the meanings assigned to such terms in the UCC.

ARTICLE II
TERMS AND CONDITIONS

Section 2.1      Advances and Letters of Credit.

(a)       Subject to the provisions of this Agreement, including without limitation the satisfaction of the conditions described in Article III, Lender agrees to establish a Revolving Loan Facility pursuant to which Lender may, in its sole discretion upon request of Borrower, make and incur Credit Accommodations in support of Export Orders, provided the Credit Accommodation Amount at any time shall not exceed the lesser of (i) the Maximum Amount,  and (ii) the Export-Related Borrowing Base.  All Letters of Credit issued shall be in Dollars and all Disbursements shall be made in Dollars.

(b)       Lender  may  agree  to  make  advances  directly  to  Borrower  or  for  Borrower's account during the Credit Period, it being expressly agreed that Lender has no commitment to do so.   Borrower shall request each advance under the Loan by delivering to Lender a written request therefore, an Export-Related Borrowing Base Certificate, a copy of the Export Order(s) against which Borrower is requesting an advance, and such other information and documentation as Lender may require, in accordance with Section 6.10.  Upon receipt of the above described information and documents by Lender, Lender shall make such advance within five (5) Business Days following Lender's determination that all conditions to the making of such advance have been satisfied.  Each advance shall be conclusively deemed to have been made at the request of and for the benefit of Borrower (a) when credited to any deposit account of Borrower maintained with Lender, or (b) when advanced in accordance with the instructions of an authorized Person. Lender, at its option, may set 

a cutoff time, after which all requests for advances under the Loan will be treated as having been requested on the next succeeding Business Day.

(c)       Lender  may  agree  to  issue  Letters  of  Credit  on  behalf  of  Borrower  or  for Borrower's account from time to time during the Credit Period, it being expressly agreed that Lender has no commitment to do so.  Standby Letters of Credit may be issued for Borrower's account for use as a performance bond, which Standby Letters of Credit can be drawn upon by Buyers only if Borrower fails to perform its obligations with respect to the relevant Export Order.  Each Disbursement to fund a drawing under a Standby Letter of Credit shall conclusively be deemed to have been made when advanced in accordance with a draw request or instructions of an authorized Person.   Each Letter of Credit will be in form and substance satisfactory to Lender and if approved for issuance by Lender in its sole discretion, will be issued by Lender as soon as practicable following (a) Lender's receipt of a completed Letter of Credit Application, an Export-Related Borrowing Base Certificate, a copy of the Export Order with respect to which Borrower is requesting a Letter of Credit, and such other information and documentation as Lender may require, in accordance with Section 6.10; and (b) Lender's determination that all conditions to issuing such Letter of Credit have been satisfied, including but not limited to the Borrower's obligation to provide and maintain adequate collateral in the amount equivalent to twenty-five percent (25%) of the undrawn amount of each Letter of Credit issued hereunder.  In no event shall (i) the expiry date of any Letter of Credit be later than twelve (12) months from the date of issuance of such Letter of Credit.  Lender shall not be requested to issue during the last sixty (60) days of the Credit Period any Letter of Credit which will expire after the Stated Final Disbursement Date unless Lender agrees in writing to a renewal of the Loan, or Ex-Im Bank's prior written approval of the issuance of such Letter of Credit is obtained.

(d)       The  terms  and  conditions  of  each  Letter  of  Credit  Application  delivered  by Borrower and accepted by Lender hereunder, including without limitation terms related to reimbursement of amounts drawn and the payment of fees and interest, are incorporated herein by this reference; provided, however, that (a) no provisions subjecting Lender and Borrower to arbitration or other dispute resolution provisions contained in any Letter of Credit Application shall be incorporated into this Agreement or applicable to Letters of Credit issued pursuant to this Agreement, and (b) to the extent that there is any conflict between the terms and conditions of any Letter of Credit Application and this Agreement, the terms of this Agreement shall prevail, except for (i) definitions contained in any Letter of Credit Application, (ii) if there is any provision contained in any Letter of Credit Application which subjects the Letter of Credit issued pursuant thereto to the UCP, the UCP shall prevail and (iii) if there is any provision contained in any Letter of Credit Application for a Standby Letter of Credit which subjects the Standby Letter of Credit issued pursuant thereto to the ISP, the ISP shall prevail.

(e)       The outstanding principal balance of Disbursements hereunder shall be evidenced by the Note and shall be repaid as set forth in Section 2.3 below.

(f)        Interest on the outstanding principal balance of the Note shall accrue and be payable as set forth in Section 2.5 below.

(g)       If the Lender determines that the introduction of any Requirement of Law, or any change in any Requirement of Law, or in the interpretation or administration of any Requirement of Law, has made it unlawful, or that any central bank or other Governmental Authority has asserted that it is unlawful, for the Lender to make the Disbursements and have interest accruing thereon on 

the basis of the LIBOR Rate, then, on notice thereof by the Lender to the Borrower, the Disbursements shall thereafter accrue interest at the CB Floating Rate until the Bank notifies the Borrower that the circumstances giving rise to such determination no longer exist. If the Bank determines that for any reason adequate and reasonable means do not exist for determining the LIBOR Rate for any LIBOR Period, or that the LIBOR Rate does not adequately and fairly reflect the cost to the Bank of making or maintaining the Disbursements, (i) the Bank will promptly so notify the Borrower, and (ii) thereafter, the obligation of the Bank to make or maintain the Disbursements with interest accruing thereon on the basis of the LIBOR Rate shall be suspended until the Lender revokes such notice in writing.

Section 2.2      Credit Accommodations.

(a)       The amount of the Credit Accommodations available to be made or incurred hereunder at any particular time from time to time shall be equal to the difference between (a) the lesser at such time of (i) the Maximum Amount, or (ii) the Export-Related Borrowing Base; and (b) the Credit Accommodation Amount at such time.  The Export-Related Borrowing Base shall be determined in accordance with this Agreement, the Borrower Agreement, the Waiver Letter and the Export-Related Borrowing Base Certificate. Any Eligible Export-Related Account Receivable included in the Export-Related Borrowing Base which subsequently fails to satisfy any of the applicable eligibility criteria shall immediately cease to be included in the Export-Related Borrowing Base.

(b)       Notwithstanding anything contained in this Agreement to the contrary:

(i)        Lender shall not undertake any new Credit Accommodation under this
Agreement:

(A)      after the Stated Final Disbursement Date;

(B)      during the continuance of an Event of Default hereunder;
(C)      if  such  Credit  Accommodation  has  been  or  will  be  used  in  a manner prohibited by the Borrower Agreement; or
(D)      if no outstanding Export Order(s) exist with respect to Borrower. (ii)       No  Warranty  Letters  of  Credit  shall  be  issued  by  Lender  under  this
Agreement without the prior written approval of Lender and Ex-Im Bank; and if such approval is obtained, any Warranty Letter of Credit so approved shall be issued only upon the satisfaction of all conditions to such issuance, including reserves from the Export-Related Borrowing Base, established by Lender and Ex-Im Bank.

Section 2.3      Payments and Prepayment of Borrower's Obligations

(a)       Borrower's Obligations shall be paid (and may be prepaid) in accordance with the provisions of this Agreement, the Borrower Agreement and the Note.   Unless sooner due and payable or paid pursuant to the other provisions of this Agreement, the Borrower Agreement and the Note, Borrower shall pay to Lender in full on the Maturity Date all outstanding Borrower's Obligations, including, without limitation, the aggregate principal amount of all Disbursements then outstanding and all accrued but unpaid interest, together with all other applicable fees, costs and charges, if any, 

not yet paid.  Disbursements made to Borrower or for Borrower's account and repaid by Borrower during the Credit Period may, at the option of Lender and at Borrower's request, be available on a continuous basis until the Stated Final Disbursement Date to fund Credit Accommodations made or incurred under the Loan in accordance with the terms of this Agreement and the Borrower Agreement.

(b)       In accordance with the Borrower Agreement, upon demand by Lender, Borrower shall provide additional Collateral or make additional payment(s) to Lender to ensure that at all times (i) the Export-Related Borrowing Base equals or exceeds the Disbursements; and (ii) the outstanding  principal  balance  of  the  Credit  Accommodations  that  is  supported  by  Eligible Export-Related Inventory does not exceed sixty percent (60%) of the sum of (y) the outstanding principal balance of the Disbursement(s), and (z) the undrawn face amount of all outstanding Commercial Letters of Credit hereunder.

(c)       All payments made by or received from Borrower or for Borrower's account in respect of Borrower's Obligations (including prepayments by Borrower and Proceeds received by Lender) shall be applied by Lender first to the payment of accrued and unpaid interest, second to the payment of the principal amount of Borrower's Obligations, and third to any unpaid costs, fees and expenses due under this Agreement and the other Financing Documents.

(d)       If (i) any payment or prepayment of principal of any LIBOR Advance is made other than on the last day of the LIBOR Period for such LIBOR Advance or (ii) if Borrower fails to make a principal or interest payment with respect to any LIBOR Advance on the date such payment is due and payable, Borrower shall on demand pay to Lender any amounts required to compensate Lender for any additional losses, out-of-pocket costs or expenses which it may reasonably incur as a result of such payment or nonpayment, including any loss, cost or expense actually incurred  by  reason  of  the  liquidation  or  reemployment  of  deposits  or  other  funds acquired by Lender to fund or maintain such LIBOR Advance.  A certificate of Lender setting forth any amount or amounts that Lender is entitled to receive pursuant to this Section shall be delivered to Borrower and shall be conclusive absent manifest error.

Section 2.4      Reliance   by   Lender   on   Communications   and   Authorizations   from Borrower.  In making or incurring any Credit Accommodation pursuant to this Agreement and the  other  Financing  Documents,  Lender  shall  be  authorized  to  rely  on  any Export-Related Borrowing Base Certificate, Letter of Credit Application, or other information, documentation, notice or communication which appears to have been executed and delivered by any of the authorized representatives of Borrower who are designated in the general certificate delivered by Borrower to Lender.   In the event that the Person(s) authorized to execute and deliver such documents or to take action hereunder on behalf of Borrower become(s) unavailable or unable to do so, Borrower promptly shall appoint one or more successor representative(s) and shall furnish Lender with a certificate satisfactory to Lender which shall contain a copy of the resolutions or other actions taken by Borrower to authorize such appointment(s) and the specimen signature of each Person so appointed to act on behalf of Borrower pursuant to this Agreement.

Section 2.5       Interest.

(a)       The outstanding principal balance of the Note shall bear interest at the option of the Borrower at either the CB Floating Rate or the LIBOR Rate, in each case as specified by Borrower to Bank in writing in form acceptable to Lender pursuant to paragraph (e) of this Section 2.5; provided 

that (A) if prior to the commencement of any LIBOR Period Lender determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the LIBOR Rate; or the Lender determines that the  LIBOR  Rate  will  not  adequately  and  fairly  reflect  the  cost  to  Lender  of  making  or maintaining any LIBOR Advance, then the entire outstanding principal balance of the Note shall accrue interest at the CB Floating Rate; and (B) the outstanding principal amount of the Note not paid  when  due  will  bear  interest  from  its  due  date  until  paid  at  the  Default  Rate. Notwithstanding the foregoing, if at any time the rate determined to be applicable to the outstanding principal balance of the Note pursuant to the foregoing sentence (the “Contract Rate”) exceeds the Highest Lawful Rate, the actual rate of interest to accrue on such principal amount will be limited to the Highest Lawful Rate, but any subsequent reductions in the Contract Rate for any reason will not reduce the interest rate payable on such amount below the Highest Lawful Rate until the total amount of interest accrued on such principal amount equals the amount of interest which would have accrued if the Contract Rate had at all times been in effect.

(b)       Notwithstanding  the  foregoing,  during  the  occurrence  and  continuance  of  an Event of Default, the Lender may, at its option, by notice to the Borrower (which notice may be revoked at the option of the Lender), declare that the entire outstanding principal balance of the Note shall bear interest at the Default Rate.

(c)       CBFR Interest shall be paid on the last day of each calendar month and LIBOR Interest shall be paid on the last day of each applicable LIBOR Period; provided that (i) Default Interest shall be payable on demand, and (ii) in the event of any repayment or prepayment of the Note, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.
(d)       All CBFR Interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and all LIBOR Interest shall be computed on the basis of a year of 360 days, and in each case shall be payable for the actual number of days elapsed.   The applicable CB Floating Rate or LIBOR Rate shall be determined by the Lender, and such determination shall be conclusive absent manifest error.

(e)       At any time and from time to time, Borrower may notify Lender in writing in form acceptable to Lender of what portion of the outstanding principal amount of the Note Borrower elects to accrue interest at the LIBOR Rate and the first day of the LIBOR Period to apply thereto, which day shall be at least three Business Days after the date of such notice; and the remaining outstanding principal balance of the Note shall accrue interest at the CB Floating Rate; provided that (i) at no time may more than one LIBOR Period be in effect; (ii) the minimum outstanding principal amount of any LIBOR Advance shall be $100,000; and (iii) in the event Borrower fails to so notify Lender that a portion of the outstanding principal balance of the Note is to accrue interest at the LIBOR Rate, Borrower shall be deemed to have elected the CB Floating Rate to be the rate of interest applicable to the entire outstanding principal balance of the Note; and (iv) in the event Borrower fails to notify Lender at least three Business Days prior to the last day of any LIBOR Period that Borrower elects to change the outstanding principal amount of the LIBOR Advance for a new LIBOR Period, Borrower shall be deemed to have elected to continue to have the same amount continue to accrue interest at the LIBOR Rate for an additional LIBOR Period commencing on the last day of the current LIBOR Period.

ARTICLE III CONDITIONS PRECENDENT

Section 3.1      Conditions  to  Credit  Accommodation.    Lender  may  elect  in  its  sole discretion to make or not to make any Credit Accommodation requested Borrower, it being expressly agreed that Lender has no commitment to do so hereunder.  Prior to making a decision about  any  requested  Credit  Accommodation,  Lender  requires  satisfaction  of  each  of  the following conditions precedent, with all documents, instruments, opinions, reports, and other items described below to be in form and substance satisfactory to Lender:

(a)       Lender shall have received evidence that this Agreement and all other Financing Documents have been duly authorized, executed, and delivered by the parties thereto and shall be and remain valid and enforceable.

(b)       To the extent not previously received by Lender, Lender shall have received a general certificate of the Secretary of Borrower, dated no later than the date of the execution and delivery of this Agreement, certifying (i) that attached thereto is a true, complete and correct copy of Borrower's organizational documents as then in effect, (ii) that attached thereto is a true, complete and correct copy of resolutions adopted by the board of directors or similar governing body of Borrower authorizing the execution and delivery of this Agreement and each of the other Financing Documents and authorizing Borrower to incur Borrower's Obligations and to perform all other covenants and agreements of Borrower contained in this Agreement and in the other Financing Documents, and (iii) as to the incumbency and specimen signature of each officer of Borrower  who  is  authorized  to  execute  and  deliver  this  Agreement,  all  Export-Related Borrowing Base Certificates and Letter of Credit Applications to be delivered pursuant hereto, and any other Financing Documents and other instruments, certificates and documents to be executed and delivered by Borrower hereunder.

(c)       Lender  shall  have  received  satisfactory  evidence  that  the  insurance  which Borrower is required to maintain pursuant to this Agreement, including but not limited to the insurance described in Section 6.6, is in full force and effect.

(d)       Borrower shall have paid all of the fees, costs and expenses which are due and payable under this Agreement and any other Financing Document.

(e)       Ex-Im Bank shall have acknowledged to Lender Ex-Im Bank's receipt of the Loan Authorization Notice to Lender effecting the coverage of Borrower's Obligations under the Ex- Im Bank Guarantee.

(f)        All conditions set forth in the Loan Authorization Notice that were to be satisfied as of the date of Lender's making or incurring the requested Credit Accommodation shall have been satisfied, and Lender otherwise shall be permitted under the Ex-Im Bank Guarantee to make and incur Credit Accommodations hereunder.

(g)       All legal matters incident to the Loan and all documents necessary in the opinion of Lender to the making or incurring of Credit Accommodations shall be satisfactory in all respects to counsel for Lender.

(h)       All Liens, including the Security Interest, in and upon the Collateral shall have been duly authorized, created and perfected, (i) with first priority, with respect to the Collateral described in Section 6(A) of the Loan Authorization Notice, and (ii) with the priorities set forth in Sections 6

(E) and (F) of the Loan Authorization Notice with respect to other Collateral, in each case subject only to Permitted Liens, and shall be and remain valid and enforceable.

(i)        Lender, at its option and for its sole benefit, shall have conducted an audit of the
Collateral, books, records, and operations, and Lender shall be satisfied as to their condition.

(j)        Lender shall have received a completed and executed Export-Related Borrowing Base Certificate and any other information and  documentation that  Lender may require, in accordance with Section 4.3 hereof.

(k)       (i) Borrower shall have complied with, and shall then be in compliance with, all the terms, covenants, and conditions of this Agreement, the Borrower Agreement, and all other Financing Documents which are binding upon it, (ii) there shall exist no Event of Default under this Agreement, and (iii) all representations and warranties of Borrower contained in this Agreement and all other Financing Documents shall be true and correct.

(l)        Borrower shall have complied with, and shall then be in compliance with, all the terms,  covenants,  and  conditions  of  any other  agreement  now  existing  or  hereafter  arising between Lender and Borrower, and there shall exist no default or event of default thereunder.

(m)      Borrower  shall  have  complied  with  applicable  laws,  and  regulations  in  each instance in which Borrower has generated, handled, used, stored or disposed of any hazardous or toxic waste or substance, on or off its premises (whether or not owned by Borrower).  Borrower shall have no material contingent liability for non-compliance with environmental or hazardous waste laws.   Borrower shall have not received any notice that it or any of its property or operations does not comply with, or that any governmental authority is investigating its compliance with, any environmental or hazardous waste laws.

(n)       There shall have been  no material  adverse change in the business,  condition (financial  or otherwise),  operations, performance, property or prospects of Borrower or the Borrower's subsidiaries since December 31, 2012.

(o)       Lender shall have received from Borrower an  Economic Impact Certification covering the Items described in Paragraph 4.A of the Loan Authorization Notice.

ARTICLE IV SECURITY

Section 4.1      Collateral.     To  secure  payment  and  performance  of  all  Borrower's Obligations,  Borrower  shall  grant  to  Lender  valid,  enforceable  and  duly  perfected  Liens, including the Security Interest, on all Collateral.  The Liens shall be of first priority with respect to the Collateral described in Section 6(A) of the Loan Authorization Notice, and the Liens shall have the priorities set forth in Sections 6(E) and (F) of the Loan Authorization Notice with respect to the other Collateral, in each case subject only to Permitted Liens.  Borrower agrees that Lender shall have in respect of all Collateral that is subject to the UCC all of the rights and remedies of a secured party under the UCC in all states in which any portion of the Collateral may be located, as well as those provided in this Agreement.  In the event Lender has extended or extends a loan or other credit accommodation to Borrower in addition to the Loan and receives a Lien on any assets or property, the Lien on such assets and property shall also secure Borrower's Obligations, and Borrower agrees 

to execute such documents and instruments as Lender requires to extend such security to Borrower's Obligations.

Section 4.2      Perfection of Security Interest.  Borrower agrees to the filing of financing statements and the execution of other documents and to take whatever other actions are requested by Lender to perfect and continue Lender's Liens upon the Collateral.  Borrower hereby appoints Lender as its irrevocable attorney-in-fact for the purpose of executing any financing statements and other documents necessary to perfect or to continue its Liens.  Lender may at any time, and without further authorization from Borrower, file a copy, photograph, facsimile, or other reproduction of any financing statement for use as a financing statement.   Borrower will reimburse Lender for all expenses for the perfection, termination, and the continuation of the perfection of Lender's Liens upon the Collateral.  Borrower will promptly notify Lender of any change in Borrower's name including any change to the assumed business names of Borrower. Borrower also will promptly notify Lender of any change in Borrower's social security number or employer identification number.  Before any cash Collateral shall be included in the Export- Related Borrowing Base, the Borrower shall cause each deposit account or other bank account in which such cash is deposited to be subject to a first priority lien in favor of Lender pursuant to an account control agreement in form and substance satisfactory to Lender.  The Lender's Security Interest in any Export-Related Accounts Receivable shall be further perfected by Borrower's execution and delivery to Lender of any instruments, the giving of any notices and the taking of any additional steps that may be required under foreign law in order to ensure the effectiveness of the assignment of such Export-Related  Accounts Receivable against the Buyer.

Section 4.3      Collateral Records and Reports; Field Examinations.  Borrower does now, and at all times hereafter shall keep correct and accurate books and records of the Collateral, all of which books and records shall be available to Lender or Lender's representative upon demand for inspection and copying at any reasonable time.  In this connection, Borrower acknowledges that Lender is required by Ex-Im Bank to perform (or contract to perform) a field examination of Borrower and the Collateral in accordance with Lender's customary procedures but in no event less than every six (6) months.   Such field examination shall include without limitation an inspection and valuation of Inventory and Other Assets, a book audit of Accounts Receivable and a review of the Accounts Receivable Aging Report.   Borrower further acknowledges that Lender is required by the Ex-Im Bank to perform (or contract to perform) a review of Borrower's sales records at least on a quarterly basis.  For Revolving Loan Facilities, if Lender elects in its sole discretion to make Credit Accommodations based upon summaries of Export Orders, then at least once each quarter, Lender shall review a sampling selected by Lender of those Export Orders representing at least ten percent (10%) of the aggregate Dollar volume of Export Orders and ten percent (10%) of the number of Export Orders supporting Credit Accommodations made or incurred during the past quarter.   Specifically with respect to Export-Related Collateral, Borrower agrees to keep and maintain such books and records as Lender may require. Borrower shall submit to Lender in writing from time to time upon Lender's request and in any event no later than thirty (30) days after the end of each calendar month (a) an Accounts Receivable Aging Report for the immediately preceding month, which report shall include the customer name, Dollar amount due and number of days outstanding for each Export-Related Account Receivable, (b) an Inventory schedule for the immediately preceding month, which schedule shall include the location of each Item of Inventory, (c) information concerning the status of completion of Export Orders, and (d) such other information, reports, contracts, invoices and other data relating to the Collateral as Lender may request.

Section 4.4      Payment under Borrower Letters of Credit.  If the letter of credit payment terms for the country specified in a certain Export Order are specified in the Country Limitation Schedule with respect to such country, Borrower shall require that each commercial letter of credit issued for its benefit with respect to any Export-Related Account Receivable or Export- Related Inventory arising out such Export Order shall provide that all payments of drawings thereunder shall be paid for the account of Borrower directly to Borrower's account with Lender, or, alternatively, that payment shall be made only to Lender's account.

Section 4.5      Assignment    of    Foreign    Credit    Insurance    Policy    Proceeds    and Buyer/Supplier Financing.  Borrower shall, simultaneously with the execution of this Agreement and as and when such policies are put into effect or financing is obtained by Borrower for the benefit of any Buyer, at any time prior to the payment and performance in full of Borrower's Obligations, assign to Lender the proceeds of all foreign credit insurance policies maintained by Borrower and any financing obtained by Borrower for the benefit of any Buyer, including, without limitation, any financing the repayment of which is guaranteed or insured by Ex-Im Bank or any other expert credit agency, such assignment to provide for payment to be made directly into Borrower's account with Lender or to Lender.

Section 4.6      Loss of Collateral.  Lender shall not be liable for the loss of any Collateral in its possession, nor shall such loss diminish Borrower's Obligations.

Section 4.7      Negative Pledge.  Until the Borrower's Obligations hereunder have been paid in full, unless the Bank otherwise consents in writing, the Borrower agrees that it shall not create or agree to create, any Lien on the Collateral, except for Permitted Liens or Liens created for the benefit of Lender to secure the Borrower's Obligations.

ARTICLE V REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants the following to Lender and Ex-Im Bank, as of the Effective Date, as of the date each Credit Accommodation is made or incurred hereunder, as of the date of any renewal, extension or modification of the Loan, and at all times any of Borrower's Obligations are outstanding, and it is the affirmative obligation of Borrower to notify Lender in writing  promptly,  but  in  any  event  within  five  (5)  Business  Days,  of  any  occurrence, circumstance or fact which would affect its ability to make the representations and warranties contained herein:

Section 5.1      Organization and Authority.   Borrower is a corporation which is duly organized, validly existing, and in good standing under the laws of the state of Borrower's formation and is duly qualified and in good standing in all other states in which Borrower is doing business except where the failure to so qualify would not be expected to have a Material Adverse Effect.  Borrower has the full power and authority to own its properties and to transact the businesses in which it is presently engaged or presently proposes to engage.  Borrower has not been suspended or debarred from doing business with the United States government.  The execution, delivery, and performance of this Agreement and all other Financing Documents to which Borrower is a party have been duly authorized by all necessary action by Borrower; do not require the consent or approval of any other Person; and do not conflict with, result in a violation of, or constitute a default under (a) any provision of Borrower's organizational documents or any other agreement or instrument binding upon Borrower, or (b) any law, governmental regulation, court decree, or order applicable to Borrower.  

Borrower has all requisite power and authority to execute and deliver this Agreement and all other Financing Documents to which Borrower is a party.

Section 5.2      Financial Condition.   Each financial statement of Borrower supplied to Lender fairly discloses financial condition of Borrower as of the date of each such statement, and there has been no material change in Borrower's financial condition subsequent to the date of the most  recent  financial  statement  supplied  to  Lender,  which  has  had  or  could  reasonably be expected to have a Material Adverse Effect.   Borrower has no material contingent obligations except as disclosed in such financial statements.

Section 5.3      Legal  Effect.    This  Agreement  and  all  other  Financing Documents  to which  Borrower  is  a  party  constitute  legal,  valid  and  binding  obligations  of  Borrower enforceable against Borrower in accordance with their respective terms, except as limited by applicable bankruptcy and creditors' rights laws, or principles of general equity.

Section 5.4      Properties.   Borrower is the sole owner of, and has good title to, all of Borrower's properties free and clear of all security interests except for Permitted Liens and Liens in favor of Lender.   Title to all of Borrower's properties are in Borrower's legal name, and Borrower has not used, or filed a UCC financing statement under, any other name for at least the last six (6) years.  Borrower possesses all permits, licenses, patents, trademarks, and copyrights required to conduct its business.   All easements, rights-of-way and other rights necessary to maintain and operate Borrower's property have been obtained and are in full force and effect.

Section 5.5      Compliance.    Except  as  disclosed  to  and  acknowledged  by Lender in writing, (a) Borrower is conducting Borrower's businesses in material compliance with all applicable federal, state and local laws, statutes, ordinances, rules, regulations, orders, determinations and court decisions, including, without limitation, those pertaining to health or environmental matters, and (b) Borrower otherwise does not have any contingent liability in connection with the release into the environment, disposal or the improper storage of any toxic or hazardous substance or solid waste which has had or could reasonably be expected to have a Material Adverse Effect.

Section 5.6      Licenses.  All necessary licenses, permits and authorizations required for the exporting of Items have been or will be timely obtained by Borrower, and to the best of Borrower's knowledge, all required necessary licenses, permits and authorizations have been or will be timely obtained by each importer.

Section 5.7      Performance.   Borrower has an operating history of at least one year. Borrower has sufficient financial resources with which to perform its Export Orders and to pay any costs of completing its Export Orders which are not paid from the proceeds of the Loan.

Section 5.8      Litigation and Claims.  No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower is pending or, to Borrower’s knowledge, threatened, and no other event has occurred which has had or could reasonably be expected to have a Material Adverse Effect other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in writing.

Section 5.9      Taxes.  All tax returns and reports of Borrower that are or were required to be filed have been filed in a timely manner, and all taxes, assessments and other governmental charges have been paid in full, except those that have been disclosed in writing to Lender which are 

presently being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.

Section 5.10    Lien Priority.  Unless otherwise previously disclosed to and approved by Lender in writing, Borrower has not entered into any security agreements, granted a Lien or permitted the filing or attachment of any Lien (other than Permitted Liens) on or affecting any of the Collateral, except in favor of Lender.

Section 5.11    Use of Proceeds.   Borrower shall not use any Loan proceeds for (i) the purchasing of fixed assets, (ii) capital expenditures, or (iii) the purchasing or carrying of “margin stock” as defined in Regulation U issued by the Board of Governors of the Federal Reserve System.

Section 5.12    Employee  Benefit  Plans.    Each  employee  benefit  plan  as  to  which Borrower  may  have  any  liability  complies  in  all  material  respects  with  all  applicable requirements of law and regulations, and (a) no Reportable Event nor Prohibited Transaction (as defined in ERISA) has occurred with respect to any such plan, (b) Borrower has not withdrawn from any such plan or initiated steps to do so, (c) no steps have been taken to terminate any such plan, and (d) there are no unfunded liabilities other than those previously disclosed to Lender in writing.

Section 5.13    Location  of  Borrower's  Offices  and  Records.     Borrower's  place  of business, or Borrower's chief executive office if Borrower has more than one place of business, is located at the address for notices to Borrower set forth in Section 9.5.  Unless Borrower has notified Lender and Lender has acknowledged in writing to the contrary, said address is also the location of Borrower's books and records concerning the Collateral.

Section 5.14    Export-Related Accounts Receivable.

(a)       All Export-Related Accounts Receivable represented by Borrower to constitute
Eligible Export-Related Accounts Receivable satisfy all relevant eligibility criteria.

(b)       All   Export-Related   Receivables   information   contained   in   Export-Related Borrowing Base Certificates and related reports delivered to Lender will be true and correct, subject to immaterial variance.

(c)       Lender shall have the right at any time upon reasonable notice, during normal business hours and at Borrower's expense to confirm with Buyers the accuracy of such Export- Related Accounts Receivable information.

Section 5.15    Borrower’s Equity Interests.  No Person holds 20% of more of Borrower’s capital stock of the Guarantor or has the power to direct Borrowers' policies and/or management whether by contract or otherwise.

Section 5.16    Information.   All information heretofore or contemporaneously herewith furnished by Borrower to Lender for the purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all information hereafter furnished by or on behalf of Borrower to Lender will be, true and accurate in every material respect on the date as of which such information is dated or certified; and none of such information is or will be incomplete by omitting to state any material fact necessary to make such information not misleading. Borrower understands and agrees that Lender, without independent investigation, is relying upon the above representations 

and warranties in extending the Loan to Borrower.  Borrower further agrees that the foregoing representations and warranties shall be continuing in nature and shall remain in full force and effect as long as any of Borrower's Obligations remain outstanding.

ARTICLE VI COVENANTS

Borrower covenants and agrees with Lender that, while this Agreement is in effect and until all of Borrower's Obligations are fully paid and performed, Borrower shall:

Section 6.1      Additional Liabilities.  Promptly, but in any event within five (5) Business Days, inform Lender in writing (a) in the event any litigation, claim, investigation, administrative proceeding or similar action affecting Borrower which could reasonably be expected to have a Material Adverse Effect is filed or threatened against Borrower, and (b) of the creation, occurrence or assumption by Borrower of any actual or contingent liabilities not permitted under this Agreement.

Section 6.2      Financial Records.  Maintain or cause to be maintained books and records in  accordance with  GAAP,  and  permit  Lender  and  Ex-Im  Bank  or their representatives  to examine, review, audit and make and take away copies or reproductions of Borrower's books and records at all reasonable times.  If any books and records, including, without limitation, computer generated records and computer software programs for the generation of such records, now or hereafter are maintained in the possession of a third party, Borrower, upon request of Lender, shall instruct such party to permit Lender and Ex-Im Bank or their representatives free access to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower's expense.

Section 6.3      Reporting Requirements.  Furnish to Lender:

(a)       As soon as available and in any event not later than forty-five (45) days after the end of each fiscal quarter the unaudited consolidated financial statements of Borrower as of the end of such quarter and the related unaudited statements of income and shareholders' equity and cash flows for the period commencing at the end of the previous year and ending with the end of such quarter, and the corresponding figures as at the end of, and for, the corresponding period in the  preceding  fiscal  year,  all  in  reasonable  detail  and  duly  certified  with  respect  to  such statements (subject to year-end audit adjustments) by an authorized financial officer of Borrower as having been prepared in accordance with GAAP;

(b)       As soon as available and in any event not later than one hundred and twenty (120) days after the end of each fiscal  year, a copy of the audited annual  consolidated financial statement for such year for Borrower including therein audited balance sheets of Borrower as of the end of such fiscal year and the related statements of income, shareholders' equity and cash flows for such fiscal year, and the corresponding figures as at the end of, and for, the preceding fiscal  year,  in  each  case  audited  and  certified  by  a  firm  of  independent  certified  public accountants of recognized standing acceptable to Lender, including any management letters delivered by such accounting firm to Borrower in connection with such audit together with a certificate of such accounting firm to Lender stating that, in the course of the regular audit of the business of Borrower which auditing was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge that an Event of Default has 

occurred and is continuing, or if, in the opinion of such accounting firm, an Event of Default has occurred and is continuing, a statement as to the nature thereof;

(c)       To the extent not hereinabove described, the financial statements of Borrower deliverable pursuant to the Loan Authorization Notice by the dates set forth therein.

Section 6.4      Taxes, Charges and Liens.

(a)       Pay and discharge when due and prior to the date on which penalties would attach, all of Borrower's indebtedness and obligations, including, without limitation, all assessments, taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, and all lawful claims that, if unpaid, might become  a  lien  or  charge  upon  any  of  Borrower's  properties,  income,  or  profits;  provided, however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien or claim so long as (i) the legality of the same shall be contested in good faith by appropriate proceedings, and (ii) Borrower shall have established or caused to have been established adequate reserves with respect to such contested assessment, tax, charge, levy, lien, or claim in accordance with GAAP.

(b)       Borrower, upon demand of Lender, will furnish to Lender evidence of payment of the assessments, taxes, charges, levies, liens and claims and will authorize the appropriate governmental official to deliver to Lender at any time a written statement of any assessments, taxes, charges, levies, liens and claims against Borrower's properties, income, or profits.

Section 6.5      Additional Information.   Furnish to Lender such additional information and statements, lists of assets and liabilities, aging of receivables and payables, inventory schedules, budgets, forecasts, financial information on principal suppliers of Borrower, and other reports with respect to Borrower's financial condition and business operations as Lender may reasonably request from  time to time, including, without limitation, reports with respect to Borrower's accounts payable within thirty (30) days after the end of each calendar month.

Section 6.6      Insurance.     Maintain  fire  and  other  risk  insurance,  public  liability insurance, business interruption insurance, multi-hazard insurance, export credit insurance, worker's compensation coverage, general liability insurance, and such other insurance as Lender may require with respect to Borrower's properties and operations, in form, amounts, coverage and with insurance companies reasonably acceptable to Lender.  If Borrower fails to provide any required insurance or fails to continue such insurance in force, Lender may, but shall not be required to, obtain such insurance at Borrower's expense, and the cost of such insurance will be added to Borrower's Obligations.  Borrower, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form and substance satisfactory to Lender, including stipulations that coverage will not be canceled or changed without at least ten (10) days'  prior  written  notice  to  Lender.    In  connection  with  all  policies  covering  any  of  the Collateral,  Borrower will  provide  Lender with  such  loss  payable or other endorsements  as Lender may require; and each such policy in any event shall contain a standard non-contributing, non-reporting mortgagee or loss payee clause naming Lender as mortgagee and loss payee.  Each liability insurance policy shall name Lender as additional insured.  At Lender's request Borrower shall furnish to Lender from time to time reports on each existing insurance policy including, without limitation, the following:   (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the properties insured; (e) the then current property values on the basis of which insurance has been obtained, and the manner of 

determining those values; (f) the expiration date of the policy; and (g) such additional information as Lender may request.

Section 6.7      Other Agreements.  Comply with, and cause its Affiliates to comply in all material respects with, all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party, and notify Lender immediately in writing of any default in connection with any other such agreements.

Section 6.8      Performance.     Perform  and  comply  with  all  terms,  conditions,  and provisions set forth in this Agreement and in the other Financing Documents and in all Export Orders (including, without limitation, the delivery of the goods required thereby free and clear of defects and prior to the deadline specified therein) in a timely manner, and promptly notify Lender (including, without limitation, providing such notice of events as is required pursuant to the Borrower Agreement) of the occurrence of any event which constitutes or may constitute an Event of Default under this Agreement or a default under any of the other Financing Documents or Export Orders.   Borrower shall, as soon as possible, take all actions necessary to entitle Borrower to receive any payments due under all Export Orders, including, without limitation, the timely drawing  of  drafts  under  any letters  of  credit  issued  for  the  benefit  of  Borrower  in connection therewith and the timely presentation of any claims under any insurance policy issued by, or financing guaranteed by, Ex-Im Bank or any other insurer or guarantor.

Section 6.9      Operations.    Conduct  its  business  affairs  in  a  reasonable  and  prudent manner and in compliance with all applicable federal, state, municipal, and foreign laws, ordinances, rules and regulations respecting its properties, charters, businesses and operations, including without limitation, compliance with the Americans with Disabilities Act, all applicable environmental  statutes,  rules,  regulations  and  ordinances  and  with  all  minimum  funding standards and other requirements of ERISA and other laws applicable to Borrower's employee benefit plans.

Section 6.10    Export-Related  Borrowing Base Certificates.    In  addition  to  deliveries within five (5) Business Days prior to the date each request for a Credit Accommodation is made by Borrower (if required by Lender) or as otherwise required by Lender and Ex-Im Bank, and so long as there are any Credit Accommodations outstanding under the Loan, deliver to Lender no later than the thirty (30) days after the end of each calendar month an Export-Related Borrowing Base Certificate, along with such supporting documentation as Lender may request.   Without limiting the generality of the foregoing, each Export-Related Borrowing Base Certificate shall include or be accompanied by (a) in the event Borrower is requesting Credit Accommodations, a copy of the Export Order(s) (or, for Revolving Loan Facilities, if permitted in writing by Lender, a written summary of the Export Order(s)) and related invoice(s) against which Borrower is requesting Credit Accommodations, and copies of all other documentation pursuant to which the Buyer's obligations in respect of the Export Order(s) are evidenced, secured or guaranteed, and (b) in all cases, an Accounts Receivable Aging Report and Inventory schedule as described in Section 4.3, reconciled directly to Borrower's month-end Accounts Receivable report, its month- end Inventory schedule, and its general ledger, adjusted for intra-month sales, receipts, credits and other adjustments.

Section 6.11    Additional Assurances.   Execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, to Lender and Ex-Im Bank such promissory notes, mortgages, deeds of trust, security agreements, financing statements, instruments, documents and other agreements as Lender or Ex-Im Bank may reasonably request to evidence and secure the Loan, to 

perfect the Liens or otherwise facilitate the performance of this Agreement, any of the other Financing Documents and the Waiver Letter.

Section 6.12    Compliance Certificate.   Unless waived in writing by Lender, provide Lender within fifteen (15) days after the end of each calendar quarter with a certificate executed by Borrower's chief financial officer or other officer or person acceptable to Lender (a) certifying that the representations and warranties set forth in this Agreement and the other Financing Documents are true and correct as of the date of the certificate and that, as of the date of the certificate, no Event of Default exists under this Agreement, and (b) demonstrating compliance with all covenants set forth in this Agreement, including the Incorporated Covenants.

ARTICLE VII INCORPORATED COVENANTS

Borrower covenants and agrees with Lender that, while this Agreement is in effect and until all of Borrowers' Obligations are fully paid and performed, Borrower shall further perform and observe all of the covenants (the “Incorporated Covenants”) set forth in the Domestic Credit Agreements.

ARTICLE VIII
EVENTS OF DEFAULT; REMEDIES

Section 8.1      Events of Default.   Each of the following shall constitute an “Event of
Default” under this Agreement:

(a)      Failure of Borrower to make any payment when due on any of Borrower's Obligations,   including,   without   limitation,   any   mandatory   prepayments   of   Borrower's Obligations from the Proceeds of or comprising Export-Related Accounts Receivable and such failure shall continue for five (5) days;

(b)       Failure of Borrower to comply with or to perform when due any other term, obligation,  covenant  or  condition  contained  in  this  Agreement,  the  Note,  the  Borrower Agreement or in any of the other Financing Documents which is not cured within fifteen (15) days;

(c)       Failure of Borrower to pay when due any amount payable to Lender under any other loan or credit accommodation to Borrower and such failure shall continue for a period of five (5) days;

(d)       The occurrence of any default or event of default under any other agreement now existing or hereafter arising between Lender and Borrower;

(e)       Any warranty, representation or statement made in or furnished to Lender under this Agreement or the other Financing Documents is false or misleading in any material respect when made or furnished, or becomes false or misleading in any material respect at any time thereafter;
(f)        The occurrence of any event which permits the acceleration of the maturity of any indebtedness owing by Borrower to any third party under any agreement or undertaking, or any such indebtedness shall not be paid as and when due;

(g)       The  occurrence  of  any  event  of  default  whether  or  not  caused,  directly  or indirectly, by actions or omissions of Borrower or any third party under any agreement or undertaking entered into by Borrower, past any cure period provided thereon;

(h)       Borrower (i) applies for, consents to or suffers the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or of all or a substantial part of its property or calls a meeting of its creditors, (ii) admits in writing its inability, or is generally unable, to pay its debts as they become due or ceases operations of its present business, (iii) makes a general assignment for the benefit of creditors, (iv) commences a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition seeking to take advantage of any other law providing for the relief of debtors, (vii) acquiesces to, or fails to have dismissed within thirty (30) days, any petition filed against it in any involuntary case under such bankruptcy laws, (viii) is the subject of any proceeding for the liquidation of its assets or dissolution, or (ix) takes any action for the purpose of effecting any of the foregoing.

(i)        The Borrower becomes the subject of any merger or consolidation.

(j)       Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower, or by any governmental agency; or the issuance of any levy, assessment, attachment, seizure or Lien, other than a Permitted Lien, against any of the Collateral which is not stayed or lifted within fifteen (15) days.

(k)       The occurrence of an event of default under the Ex-Im Bank Guarantee or the Ex- Im Bank Guarantee ceases to be in effect for any reason whatsoever without Lender's prior written consent, including, without limitation, Borrower's failure to pay all fees due Ex-Im Bank.

(l)        Any material delay occurs in Borrower's performance of its obligations under any Export Order, unless such delay is due to force majeure and Borrower is able to satisfy Lender that the delay will not cause a default under the applicable Export Order or diminish the Buyer's payment obligations thereunder; or a material adverse change occurs in the financial condition of any supplier to Borrower.

(m)      An  event  occurs  which  has  had  or  could  reasonably  be  expected  to  have  a
Material Adverse Effect.

(n)       Any  Lien  in  any  of  the  Collateral  granted  or  intended  by  the  Financing Documents to be granted to Lender ceases to be a valid, enforceable, perfected, first priority Lien (or a lesser priority if expressly permitted pursuant to Section 6 of the Loan Authorization Notice) subject only to Permitted Liens.

(o)       Any material provision of any Financing Document for any reason ceases to be valid, binding and enforceable in accordance with its terms.
(p)       Any litigation is filed against Borrower which has had or could reasonably be expected to have a Material Adverse Effect and such litigation is not withdrawn or dismissed within thirty (30) days of the filing thereof.

Section 8.2      Effect of an Event of Default.   If any Event of Default shall occur, and unless such Event of Default shall be cured to the satisfaction of Lender and Ex-Im Bank, Lender may, at its option, without further notice or demand, (a) declare all Borrower's Obligations (contingent  or  otherwise)  immediately  due  and  payable;  (b)  refuse  to  make  or  incur  any additional Credit Accommodations under this Agreement or the Note; (d) assemble, sell, lease, buy, transfer or otherwise dispose of the Collateral or the Proceeds thereof; and (e) exercise all the rights and remedies provided in this Agreement, the Note, the Waiver Letter or in any of the other Financing Documents or available at law, in equity, or otherwise; provided, however, that if  any Event  of  Default  of  the  type  described  in  Section 8.1(f)  shall  occur,  all  Borrower's Obligations shall automatically become fully due and payable, without any notice, demand or action by Lender.   Except as may be prohibited by applicable law, all of Lender's rights and remedies shall be cumulative and may be exercised singularly or concurrently.   Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower shall not affect Lender's right to declare a default and to exercise its rights and remedies.

ARTICLE IX MISCELLANEOUS

Section 9.1      Renewal.   Pursuant to that certain Export Loan Agreement dated as of April 3, 2012 (as amended, the "Original Loan Agreement"), Lender extended a pre-export working credit facility to Borrower, in the principal amount not to exceed Five Million and No/100 Dollars ($5,000,000.00).  Borrower agrees and acknowledges that as of the date of this Agreement (i) the aggregate outstanding principal balance of advances made under the Original Loan Agreement is Four Million and No/100 Dollars ($4,000,000.00) (the “Existing Credit Accommodations”) and (ii) there are no outstanding Letters of Credit issued under the Original Loan Agreement.  Borrower further agrees and acknowledges that (i) the Loan is being extended to Borrower in renewal but not in payment or extinguishment of the Existing Credit Accommodations, which Existing Credit Accommodations as of the date of this Agreement constitute Credit Accommodations hereunder, and (ii) this Agreement, the Note, and the other Financing Documents are executed, delivered, confirmed and accepted in renewal, extension and modification of the Original Loan Agreement.

Section 9.2      Amendments.     This  Agreement,  together  with  the  other  Financing Documents and the Waiver Letter, constitute the entire understanding and agreement of the parties as to the matters set forth in this Agreement.   No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.   This Agreement, the other Financing Documents and the Waiver Letter supersede all existing agreements, oral or written, previously entered into between Borrower and Lender with respect to the Loan unless Borrower and Lender agree in writing to the contrary.
Section 9.3      Caption   Headings.      Caption   headings   in   this   Agreement   are   for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

Section 9.4      Consent to Loan Participation.  Borrower agrees and consents to Lender's sale or transfer, at Lender's sole discretion, whether now or later, of one or more participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender.  Lender may provide, without any limitation whatsoever, to any one or more purchasers, potential purchasers, or affiliates 

of Lender, any information or knowledge Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy it may have with respect to such matters.  Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation interests.

Section 9.5      Notices.  All communications and notices required to be given under this Agreement shall be hand delivered or sent by nationally recognized overnight courier or United States mail, certified or registered, postage prepaid, addressed to the party to whom the notice is to be given at the address shown below.  All such communications and notices shall be effective upon delivery.  Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's  address.    To  the extent  permitted  by applicable law,  if there is  more than  one Borrower, notice to any Borrower will constitute notice to all Borrowers:

if to Borrower:

FuelCell Energy, Inc.
3 Great Pasture Road
Danbury, CT  06813
                          Attention: Michael Bishop, Senior Vice President and CFO 

                               if to Lender:

JPMorgan Chase Bank, N.A. Two Corporate Drive, Suite 730
Shelton, CT  06484
Attention: James Patrick Murphy with copy to:
JPMorgan Chase Bank, N.A. – Global Trade Services
2200 Ross Ave., 6th Floor
Dallas, Texas 75201
Attention:  Mr. Randall Mascorro if to Ex-Im Bank:
Export-Import Bank of the United States
811 Vermont Avenue, N.W. Washington, D.C.  20571
Attention:  Vice President, Business Credit Division

Section 9.6      Survival.   All covenants, agreements, representations and warranties of Borrower made herein and in the other Financing Documents and in the certificates, instruments and other documents delivered pursuant hereto or thereto shall survive the making or incurring of Credit Accommodations hereunder, and shall continue in full force and effect until all of Borrower's Obligations have been paid and performed in full.

Section 9.7      Successors and Assigns.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and permitted assigns of such party; and all covenants, promises and agreements by or on behalf of Borrower which are contained in this Agreement or in the other Financing Documents shall inure to the benefit  of  the  successors  and  assigns  of  Lender  and  Ex-Im  Bank,  which  is  a  third-party beneficiary of this Agreement and each of the other Financing Documents to which it is not a direct party.   Borrower may not assign any interest that it may have under this Agreement, including,  without  limitation,  the  right  to  receive  the  benefit  of  the  Loan  to  be  extended hereunder, without the prior written consent of Lender and Ex-Im Bank.  Any assignment made or attempted by Borrower without the prior written consent of Lender and Ex-Im Bank shall be void and of no effect.  No consent by Lender and Ex-Im Bank to an assignment by Borrower shall release Borrower as the party primarily obligated and liable under the terms of this Agreement unless Borrower shall be released specifically by Lender and Ex-Im Bank in writing. No consent by Lender and Ex-Im Bank to an assignment shall be deemed to be a waiver of the requirement of prior written consent by Lender and Ex-Im Bank with respect to each and every further assignment and as a condition precedent to the effectiveness of such assignment.  Lender may assign its interest in any or all of the Financing Documents or the Waiver Letter to any Person, including Ex-Im Bank, without the consent of or notice to Borrower or any other Person, upon such terms as Lender in its sole discretion deems appropriate.

Section 9.8      Payment of Fees and Expenses.  Borrower shall pay all reasonable out-of- pocket expenses, including, without limitation, the fees and  disbursements of legal counsel employed by Lender, incurred by Lender in connection with (a) the preparation and negotiation of this Agreement, the Waiver Letter and the other Financing Documents, (b) the making or incurring of Credit Accommodations by Lender, (c) the protection of the Collateral and any other security for the repayment of Borrower's Obligations, and (d) the enforcement and protection of the rights of Lender in connection with this Agreement, the Waiver Letter or any of the other Financing Documents.    Prior to  Lender's  making or incurring  any Credit  Accommodations hereunder, Borrower shall pay to Lender, as an additional condition precedent to the making or incurring of Credit Accommodations, the Ex-Im Bank facility fee determined in accordance with the Loan Authorization Notice and all other fees and expenses due Lender.  Without limiting the generality of the foregoing, Borrower shall pay or cause to be paid to Lender the Ex-Im Bank application fee in the amount of $100 and the Ex-Im Bank guarantee fee in the amount of One Hundred Forty Thousand and No/100 Dollars ($140,000.00), payable on the Effective Date and at any renewal hereof.
Section 9.9      Applicable Law; Jurisdiction; Consent to Service of Process.   Except as hereinafter expressly provided, this Agreement is governed by and shall be construed in accordance with the laws of the State of Connecticut.  The Ex-Im Bank Guarantee is governed by New York law.  Accordingly, notwithstanding any provision  to the contrary contained herein or in any of the other Financing Documents, to the extent, but only to the extent, necessary to assure  full  satisfaction  of  and  compliance  with  all  terms  and  conditions  of  Ex-Im  Bank's guaranty of Borrower's Obligations under the Ex-Im Bank Guarantee and to preserve Lender's rights thereunder, this Agreement and each of the other Financing Documents shall be governed by and construed in accordance with the laws of the State of New York.  Lender and Borrower hereby submit to the non-exclusive jurisdiction of any Connecticut state court or federal court sitting in Connecticut over any suit, action or proceeding arising out  of or relating to this Agreement.   Final judgment in any such suit, action or proceeding brought in any such court shall  be  conclusive  and  binding  upon  Borrower  

and  may be  enforced  in  any court  to  the jurisdiction of which Borrower is subject, by a suit upon the judgment.

Section 9.10    No Liability of Lender.  Neither Lender nor Ex-Im Bank shall be liable for any act or omission by it pursuant to the provisions of this Agreement, in the absence of fraud or gross negligence.   Borrower hereby agrees that neither Lender nor Ex-Im Bank shall be chargeable for any negligence, mistake, act or omission of any accountant, examiner, agency or attorney employed by it in making examinations, investigations or collections, or otherwise in perfecting,  maintaining,  protecting  or  realizing  upon  any  lien  or  Security  Interest  in  the Collateral or any other interest in any security for Borrower's Obligations.  Neither Lender nor Ex-Im Bank shall incur any liability to Borrower or to any other party in connection with the acts or omissions of Lender or Ex-Im Bank in reliance upon any certificate or other paper believed by Lender or Ex-Im Bank to be genuine or with respect to any other thing which Lender or Ex-Im Bank may do or refrain from doing, unless such act or omission amounts to fraud or gross negligence.

Section 9.11    WAIVER OF SPECIAL DAMAGES. THE BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK  IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

Section 9.12    Indemnification.  Borrower agrees to protect, indemnify, defend and hold harmless  Lender  and  Ex-Im  Bank  from  and  against  any  and  all  claims,  damages,  losses, liabilities, costs or expenses (including, without limitation, attorneys' fees AND ANY SUCH CLAIMS, DAMAGES, LOSSES, LIABILITIES, COSTS OR EXPENSES INCURRED BY REASON OF THE LENDER'S OR EX-IM BANK'S OWN NEGLIGENCE OR STRICT LIABILITY) whatsoever which Lender and Ex-Im Bank may, at any time, sustain or incur by reason of or in consequence of or arising out of extending the Loan to Borrower, the making or incurring of Credit Accommodations, or the issuance of a guaranty of Borrower's Obligations, as the case may be; it being the intention of the parties that this Agreement shall be construed and applied to protect, indemnify, defend and hold harmless Lender and Ex-Im Bank against any and all risks involved in the transactions contemplated by this Agreement, the Waiver Letter and the other Financing Documents, all of which risks are hereby assumed by Borrower.  The provisions
of this Section shall survive the expiration or termination of this Agreement, the Waiver Letter, the other Financing Documents, and the payment and performance of Borrower's Obligations.

Section 9.13    Authorization  for  Direct  Payments  (ACH  Debits).    To  effectuate  any payment  due under this  Agreement,  the Note or any other  Financing  Document,  Borrower hereby authorizes Lender to initiate debit entries to any deposit account of Borrower maintained with Lender and to debit the same to such account. This authorization to initiate debit entries shall  remain  in  full  force  and  effect  until  Lender  has  received  written  notification  of  its termination in such time and in such manner as to afford Lender a reasonable opportunity to act on it. Borrower acknowledges (a) that such debit entries may cause an overdraft of any such account which may result in Lender's refusal to honor items drawn on any such account until adequate deposits are made to any such account; (b) that Lender is under no duty or obligation to initiate any debit entry for any purpose; and (c) that if a debit is not made because any such account does not have a sufficient available balance, or otherwise, the payments may be late or past due.

Section 9.14    No Partnership.  Nothing contained in this Agreement shall be construed in a manner to create any relationship among Borrower, Lender and Ex-Im Bank other than the relationship of borrower, lender and credit enhancement provider, and Borrower, Lender and Ex- Im Bank shall not be considered partners or co-venturers for any purpose on account of this Agreement.

Section 9.15    Controlling Agreement.   Borrower acknowledges and agrees that (a) the Borrower Agreement contains additional representations, terms, covenants and conditions related to Borrower and the Loan, and (b) as between Lender and Borrower this Agreement and the Borrower  Agreement  together  govern  the  establishment  of  the  Loan  as  a  Loan  Facility guaranteed pursuant to the Ex-Im Bank Guarantee and the making and incurring of Credit Accommodations under the Loan.  In the event any of the representations, terms, covenants or conditions  contained  in  this  Agreement  conflict  with  those  contained  in  the  Borrower Agreement, then as between Lender and Borrower, the more stringent provisions of each with respect to Borrower shall govern and prevail.

Section 9.16    USA PATRIOT ACT NOTIFICATION.  The following notification is provided to Borrowers pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318: IMPORTANT  INFORMATION  ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.  To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that  identifies  each  person  or  entity that  opens  an  account,  including  any deposit  account, treasury management account, loan, other extension of credit, or other financial services product. What this means for Borrowers:  When any Borrower opens an account, if any Borrower is an individual Lender will ask for such Borrower’s name, taxpayer identification number, residential address, date of birth, and other information that will allow Lender to identify such Borrower, and if any Borrower is not an individual Lender will ask for such Borrower’s name, taxpayer identification number, business address, and other information that will allow Lender to identify such Borrower. Lender may also ask, if any Borrower is an individual to see such Borrower’s driver’s license or other identifying documents, and if any Borrower is not an individual to see such Borrower’s legal organizational  documents or other identifying documents.
Section 9.17    Waiver  of  Trial  by  Jury.    EACH  OF  BORROWER  AND  LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE), TO WHICH BORROWER AND LENDER MAY BE PARTIES ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATED TO THIS AGREEMENT, THE WAIVER LETTER OR ANY OF THE OTHER FINANCING DOCUMENTS.     IT  IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT.   THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY EACH OF BORROWER AND LENDER, AND BORROWER HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  BORROWER FURTHER REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO BE REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO 

DISCUSS THIS WAIVER WITH COUNSEL.  THIS PROVISION IS A MATERIAL INDUCEMENT TO THE LENDER TO PROVIDE THE FINANCING HEREUNDER.

Section 9.18    Severability.   If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity, however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respect shall remain valid and enforceable.

Section 9.19    Rules of Construction.   For purposes of this Agreement, the following additional rules of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender  shall  include  the  masculine,  the  feminine  and  the  neuter;  (b)  the  term  “or”  is  not exclusive; (c) the term “including” (or any form thereof) shall not be limiting or exclusive; (d) all references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations; (e) the words “this Agreement”, “herein”, “hereof”, “hereunder” or other words of similar import refer to this Agreement as a whole including the exhibits hereto as the same may be amended, modified or supplemented; (f) all references in this Agreement to sections, subsections, paragraphs and exhibits shall refer to the corresponding sections, subsections, paragraphs and exhibits of or to this Agreement; and (g) all references to any instruments or agreements, including references to the Waiver Letter or any of the Financing Documents, shall include any and all modifications, amendments and supplements thereto and any and  all restatements, extensions or renewals thereof to the extent permitted under this Agreement.
Section 9.17    Waiver  of  Trial  by  Jury.    EACH  OF  BORROWER  AND  LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE), TO WHICH BORROWER AND LENDER MAY BE PARTIES ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATED TO THIS AGREEMENT, THE WAIVER LETTER OR ANY OF THE OTHER FINANCING DOCUMENTS.     IT  IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT.   THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY EACH OF BORROWER AND LENDER, AND BORROWER HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  BORROWER FURTHER REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO BE REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.  THIS PROVISION IS A MATERIAL INDUCEMENT TO THE LENDER TO PROVIDE THE FINANCING HEREUNDER.

Section 9.18    Severability.   If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability 

or validity, however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respect shall remain valid and enforceable.

Section 9.19    Rules of Construction.   For purposes of this Agreement, the following additional rules of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender  shall  include  the  masculine,  the  feminine  and  the  neuter;  (b)  the  term  “or”  is  not exclusive; (c) the term “including” (or any form thereof) shall not be limiting or exclusive; (d) all references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations; (e) the words “this Agreement”, “herein”, “hereof”, “hereunder” or other words of similar import refer to this Agreement as a whole including the exhibits hereto as the same may be amended, modified or supplemented; (f) all references in this Agreement to sections, subsections, paragraphs and exhibits shall refer to the corresponding sections, subsections, paragraphs and exhibits of or to this Agreement; and (g) all references to any instruments or agreements, including references to the Waiver Letter or any of the Financing Documents, shall include any and all modifications, amendments and supplements thereto and any and  all restatements, extensions or renewals thereof to the extent permitted under this Agreement.
Section 9.17    Waiver  of  Trial  by  Jury.    EACH  OF  BORROWER  AND  LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE), TO WHICH BORROWER AND LENDER MAY BE PARTIES ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATED TO THIS AGREEMENT, THE WAIVER LETTER OR ANY OF THE OTHER FINANCING DOCUMENTS.     IT  IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT.   THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY EACH OF BORROWER AND LENDER, AND BORROWER HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT.  BORROWER FURTHER REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO BE REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.  THIS PROVISION IS A MATERIAL INDUCEMENT TO THE LENDER TO PROVIDE THE FINANCING HEREUNDER.

Section 9.18    Severability.   If a court of competent jurisdiction finds any provision of this Agreement to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity, however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respect shall remain valid and enforceable.

Section 9.19    Rules of Construction.   For purposes of this Agreement, the following additional rules of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender  shall  

include  the  masculine,  the  feminine  and  the  neuter;  (b)  the  term  “or”  is  not exclusive; (c) the term “including” (or any form thereof) shall not be limiting or exclusive; (d) all references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations; (e) the words “this Agreement”, “herein”, “hereof”, “hereunder” or other words of similar import refer to this Agreement as a whole including the exhibits hereto as the same may be amended, modified or supplemented; (f) all references in this Agreement to sections, subsections, paragraphs and exhibits shall refer to the corresponding sections, subsections, paragraphs and exhibits of or to this Agreement; and (g) all references to any instruments or agreements, including references to the Waiver Letter or any of the Financing Documents, shall include any and all modifications, amendments and supplements thereto and any and  all restatements, extensions or renewals thereof to the extent permitted under this Agreement.

EXHIBIT A BORROWER AGREEMENT [See attached]

EXPORT-IMPORT BANK OF THE UNITED STATES
WORKING CAPITAL GUARANTEE PROGRAM

BORROWER AGREEMENT

TABLE OF CONTENTS

ARTICLE I   DEFINITIONS .......................................................................................................1

1.01     Definition of Terms..................................................................................................1

1.02     Rules of Construction ............................................................................................14

1.03     Incorporation of Recitals........................................................................................15

ARTICLE II   OBLIGATIONS OF BORROWER .......................................................................15

2.01     Use of Credit Accommodations.............................................................................15

2.02     Security Interests....................................................................................................15

2.03     Loan Documents and Loan Authorization Agreement ..........................................15

2.04     Export-Related Borrowing Base Certificates and Export Orders ..........................16

2.05     Schedules, Reports and Other Statements .............................................................16

2.06     Exclusions from the Export-Related Borrowing Base...........................................16

2.07     Borrowings and Reborrowings ..............................................................................16

2.08     Repayment Terms ..................................................................................................17

2.09     Financial Statements ..............................................................................................17

2.10     Additional Security or Payment.............................................................................17

2.11     Continued Security Interest....................................................................................18

2.12     Inspection of Collateral and Facilities ...................................................................18

2.13     General Intangibles ................................................................................................19

2.14     Economic Impact Approval ...................................................................................19

2.15     Indirect Exports......................................................................................................19

2.16     Overseas Inventory and Accounts Receivable.......................................................20

2.17     Country Limitation Schedule .................................................................................20

2.18     Notice of Certain Event .........................................................................................21

2.19     Insurance ................................................................................................................21

2.20     Taxes ......................................................................................................................22

2.21     Compliance with Laws ..........................................................................................22

2.22     Negative Covenants ...............................................................................................22

2.23     Cross Default .........................................................................................................22

2.24     Munitions List ........................................................................................................22

2.25     Suspension and Debarment, etc .............................................................................22

ARTICLE III  RIGHTS AND REMEDIES ..................................................................................23
3.01     Indemnification ......................................................................................................23

3.02     Liens.......................................................................................................................23

ARTICLE IV MISCELLANEOUS ..............................................................................................24

4.01     Governing Law ......................................................................................................24

4.02     Notification ............................................................................................................24

4.03     Partial Invalidity.....................................................................................................24

4.04     Waiver of Jury Trial...............................................................................................24

4.05     Consequential Damages.........................................................................................24

EXPORT-IMPORT BANK OF THE UNITED STATES WORKING CAPITAL GUARANTEE PROGRAM BORROWER AGREEMENT

THIS BORROWER AGREEMENT (this "Agreement") is made and entered into by the entity identified as Borrower on the signature page hereof ("Borrower") in favor of the Export- Import Bank of the United States ("Ex-Im Bank") and the institution identified as Lender on the signature page hereof ("Lender").

RECITALS
Borrower has requested that Lender establish a Loan Facility in favor of Borrower for the purposes of providing Borrower with working capital to finance the manufacture, production or purchase and subsequent export sale of Items.

Lender and Borrower expect that Ex-Im Bank will provide a guarantee to Lender regarding this Loan Facility subject to the terms and conditions of the Master Guarantee Agreement, a Loan Authorization Agreement, and to the extent applicable, the Delegated Authority Letter Agreement or Fast Track Lender Agreement.

Lender and Ex-Im Bank have requested that Borrower execute this Agreement as a condition precedent to Lender establishing the Loan Facility and Ex-Im Bank providing the guarantee.

NOW, THEREFORE, Borrower hereby agrees as follows:

ARTICLE I DEFINITIONS

1.01     Definition of Terms.  As used in this Agreement, including the Recitals to this Agreement and the Loan Authorization Agreement, the following terms shall have the following meanings:

"Accounts Receivable" shall mean all of Borrower's now owned or hereafter acquired (a) "accounts" (as such term is defined in the UCC), other receivables, book debts and other forms
of obligations, whether arising out of goods sold or services rendered or from any other transaction; (b) rights in, to and under all purchase orders or receipts for goods or services; (c) rights to any goods represented or purported to be represented by any of the foregoing (including unpaid sellers’ rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods); (d) moneys due or to become due to such Borrower under all purchase orders and contracts (which includes Export Orders) for the sale of goods or the performance of services or both by Borrower (whether or not yet earned by performance on the part of Borrower), including the proceeds of the foregoing; (e) any notes, drafts, letters of credit, insurance proceeds or other instruments, documents and writings evidencing or
supporting the foregoing; and (f) all collateral security and guarantees of any kind given by any other Person with respect to any of the foregoing.

“Accounts Receivable Aging Report” shall mean a report detailing the Export-Related Accounts Receivable and Export-Related Overseas Accounts Receivable for a Loan Facility, and the applicable terms for the relevant time period; in the case of Indirect Exports, such report shall indicate the portion of such Accounts Receivables corresponding to Indirect Exports.

"Advance Rate" shall mean, with respect to a Loan Facility, the rate specified in Section
5.B. of the Loan Authorization Agreement for each category of Primary Collateral except for Export-Related General Intangibles and Other Collateral.  Unless otherwise set forth in writing by Ex-Im Bank, in no event shall the Advance Rate exceed (i) ninety percent (90%) for Eligible Export-Related Accounts Receivable, (ii) seventy five percent (75%) for Eligible Export-Related
Inventory, (iii) seventy percent (70%) for Eligible Export-Related Overseas Accounts Receivable or (iv) sixty percent (60%) for Eligible Export-Related Overseas Inventory and (v) twenty five percent (25%) for Retainage Accounts Receivable.

“Affiliated Foreign Person” shall have the meaning set forth in Section 2.16.

"Business Day" shall mean any day on which the Federal Reserve Bank of New York is open for business.

"Buyer" shall mean a Person that has entered into one or more Export Orders with Borrower or who is an obligor on Export-Related Accounts Receivable or Export-Related Overseas Accounts Receivable.

“Capital Good” shall mean a capital good (e.g., manufacturing equipment, licensing agreements) that will establish or expand foreign production capacity of an exportable good.

"Collateral" shall mean all real and personal property and interest in real and personal property in or upon which Lender has been, or shall be, granted a Lien as security for the payment of all the Loan Facility Obligations and all products and proceeds (cash and non-cash) thereof.

"Commercial Letters of Credit" shall mean those letters of credit subject to the UCP payable in Dollars and issued or caused to be issued by Lender on behalf of Borrower under a Loan Facility for the benefit of a supplier(s) of Borrower in connection with Borrower's purchase of goods or services from the supplier in support of the export of the Items.

"Country Limitation Schedule" shall mean the schedule published from time to time by Ex-Im Bank setting forth on a country by country basis whether and under what conditions Ex- Im Bank will provide coverage for the financing of export transactions to countries listed therein.

“Credit Accommodation Amount” shall mean, the sum of (a) the aggregate outstanding amount of Disbursements and (b) the aggregate outstanding Letter of Credit Obligations, which sum may not exceed the Maximum Amount.

"Credit Accommodations" shall mean, collectively, Disbursements and Letter of Credit

Obligations.
"Debarment Regulations" shall mean, collectively, (a) the Governmentwide Debarment and Suspension (Nonprocurement) regulations (Common Rule), 53 Fed. Reg. 19204 (May 26,
1988), (b) Subpart 9.4 (Debarment, Suspension, and Ineligibility) of the Federal Acquisition Regulations, 48 C.F.R. 9.400-9.409 and (c) the revised Governmentwide Debarment and Suspension (Nonprocurement) regulations (Common Rule), 60 Fed. Reg. 33037 (June 26, 1995).

"Delegated Authority Letter Agreement" shall mean the Delegated Authority Letter
Agreement, if any, between Ex-Im Bank and Lender.

"Disbursement" shall mean, collectively, (a) an advance of a working capital loan from Lender to Borrower under the Loan Facility, and (b) an advance to fund a drawing under a Letter of Credit issued or caused to be issued by Lender for the account of Borrower under the Loan Facility.

"Dollars" or "$" shall mean the lawful currency of the United States.

“Economic Impact Approval” shall mean a written approval issued by Ex-Im Bank stating the conditions under which a Capital Good may be included as an Item in a Loan Facility consistent with Ex-Im Bank’s economic impact procedures (or other mechanism for making this determination that Ex-Im Bank notifies Lender of in writing).
“Economic Impact Certification” shall have the meaning set forth in Section 2.14(b). "Effective Date" shall mean the date on which (a) all of the Loan Documents have been
executed by Lender, Borrower and, if applicable, Ex-Im Bank and (b) all of the conditions to the making of the initial Credit Accommodations under the Loan Documents or any amendments thereto have been satisfied.

"Eligible Export-Related Accounts Receivable" shall mean Export-Related Accounts Receivable which are acceptable to Lender and which are deemed to be eligible pursuant to the Loan Documents, but in no event shall Eligible Export-Related Accounts Receivable include any Account Receivable:

(a)       that does not arise from the sale of Items in the ordinary course of Borrower's business;
(b)       that is not subject to a valid, perfected first priority Lien in favor of Lender; (c)       as to which any covenant, representation or warranty contained in the Loan
Documents with respect to such Account Receivable has been breached;

(d)       that is not owned by Borrower or is subject to any right, claim or interest of another Person other than the Lien in favor of Lender;

(e)       with respect to which an invoice has not been sent;

(f)        that arises from the sale of defense articles or defense services;
(g)       that arises from the sale of Items to be used in the construction, alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production facilities unless with Ex-Im Bank’s prior written consent;

(h)       that is due and payable from a Buyer located in a country with which Ex-Im Bank is prohibited from doing business as designated in the Country Limitation Schedule;
(i)    that does not comply with the requirements of the Country Limitation Schedule; (j)    that is due and payable more than one hundred eighty (180) days from the date of
the invoice;

(k)       that is not paid within sixty (60) calendar days from its original due date, unless it is insured through Ex-Im Bank export credit insurance for comprehensive commercial and political risk, or through Ex-Im Bank approved private insurers for comparable coverage, in which case it is not paid within ninety (90) calendar days from its due date;

(l)        of a Buyer for whom fifty percent (50%) or more of the Accounts Receivable of such Buyer do not satisfy the requirements of subclauses (j) and (k) above;

(m)      that arises from a sale of goods to or performance of services for an employee of Borrower, a stockholder of Borrower, a subsidiary of Borrower, a Person with a controlling interest in Borrower or a Person which shares common controlling ownership with Borrower;

(n)       that is backed by a letter of credit unless the Items covered by the subject letter of credit have been shipped;

(o)       that Lender or Ex-Im Bank, in its reasonable judgment, deems uncollectible for any reason;

(p)       that is due and payable in a currency other than Dollars, except as may be approved in writing by Ex-Im Bank;

(q)       that is due and payable from a military Buyer, except as may be approved in writing by Ex-Im Bank;

(r)        that does not comply with the terms of sale set forth in Section 7 of the Loan
Authorization Agreement;

(s)       that is due and payable from a Buyer who (i) applies for, suffers, or consents to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property or calls a meeting of its creditors, (ii) admits in 

writing its inability, or is generally unable, to pay its debts as they become due or ceases operations of its present business, (iii) makes a general assignment for the benefit of creditors, (iv) commences a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition seeking to take advantage of any other law providing for the relief of debtors, (vii) acquiesces to, or fails to have
dismissed, any petition which is filed against it in any involuntary case under such bankruptcy laws, or (viii) takes any action for the purpose of effecting any of the foregoing;

(t)        that arises from a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other repurchase or return basis or is evidenced by chattel paper;

(u)       for which the Items giving rise to such Accounts Receivable have not been shipped to the Buyer or when the Items are services, such services have not been performed or when the Export Order specifies a timing for invoicing the Items other than shipment or performance and the Items have not been invoiced in accordance with such terms of the Export Order, or the Accounts Receivable otherwise do not represent a final sale;

(v)       that is subject to any offset, deduction, defense, dispute, or counterclaim or the Buyer is also a creditor or supplier of Borrower or the Account Receivable is contingent in any respect or for any reason;

(w)      for which Borrower has made any agreement with the Buyer for any deduction therefrom, except for discounts or allowances made in the ordinary course of business for prompt payment, all of which discounts or allowances are reflected in the calculation of the face value of each respective invoice related thereto;

(x)       for which any of the Items giving rise to such Account Receivable have been returned, rejected or repossessed;

(y)       that is included as an eligible receivable under any other credit facility to which
Borrower is a party;

(z)       any of the Items giving rise to such Accounts Receivable are Capital Goods, unless the transaction is in accordance with Section 2.14;

(aa)     that is due and payable from a Buyer that is, or is located in, the United States; provided however, that this subsection (aa) shall not preclude an Export-Related Accounts Receivable arising from the sale of Items to foreign contractors or subcontractors providing services to a United States Embassy or the United States Military located overseas from being deemed an Eligible Export-Related Accounts Receivable; or

(bb)     that arises from the sale of Items that do not meet the U.S. Content requirements in accordance with Section 2.01(b)(ii).

"Eligible Export-Related Inventory" shall mean Export-Related Inventory which is acceptable to Lender and which is deemed to be eligible pursuant to the Loan Documents, but in no event shall Eligible Export-Related Inventory include any Inventory:

(a)       that is not subject to a valid, perfected first priority Lien in favor of Lender; (b)       that is located at an address that has not been disclosed to Lender in writing;
(c)       that is placed by Borrower on consignment or held by Borrower on consignment from another Person;

(d)       that is in the possession of a processor or bailee, or located on premises leased or subleased to Borrower, or on premises subject to a mortgage in favor of a Person other than Lender, unless such processor or bailee or mortgagee or the lessor or sublessor of such premises, as the case may be, has executed and delivered all documentation which Lender shall require to evidence the subordination or other limitation or extinguishment of such Person's rights with respect to such Inventory and Lender's right to gain access thereto;

(e)       that is produced in violation of the Fair Labor Standards Act or subject to the "hot goods" provisions contained in 29 U.S.C.§215 or any successor statute or section;

(f)        as to which any covenant, representation or warranty with respect to such
Inventory contained in the Loan Documents has been breached;

(g)       that is not located in the United States unless expressly permitted by Lender, on terms acceptable to Lender;

(h)       that is an Item or is to be incorporated into Items that do not meet U.S. Content requirements in accordance with Section 2.01(b)(ii);

(i)        that is demonstration Inventory;

(j)        that consists of proprietary software (i.e. software designed solely for Borrower's internal use and not intended for resale);

(k)       that is damaged, obsolete, returned, defective, recalled or unfit for further processing;

(l)        that has been previously exported from the United States;

(m)      that constitutes, or will be incorporated into Items that constitute, defense articles or defense services;

(n)       that is an Item or will be incorporated into Items that will be used in the construction, alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production facilities unless with Ex-Im Bank’s prior written consent;

(o)       that is an Item or is to be incorporated into Items destined for shipment to a country as to which Ex-Im Bank is prohibited from doing business as designated in the Country Limitation Schedule;

(p)       that is an Item or is to be incorporated into Items destined for shipment to a Buyer located in a country in which Ex-Im Bank coverage is not available for commercial reasons as designated in the Country Limitation Schedule, unless and only to the extent that such Items are

(q)       that constitutes, or is to be incorporated into, Items whose sale would result in an
Accounts Receivable which would not be an Eligible Export-Related Accounts Receivable;

(r)        that is included as eligible inventory under any other credit facility to which
Borrower is a party; or

(s)       that is, or is to be incorporated into, an Item that is a Capital Good, unless the transaction is in accordance with Section 2.14.

"Eligible Export-Related Overseas Accounts Receivable" shall mean Export-Related Overseas Accounts Receivable which are acceptable to Lender and which are deemed to be eligible pursuant to the Loan Documents but in no event shall include the Accounts Receivable (a) through (bb) excluded from the definition of Eligible Export-Related Accounts Receivable.

“Eligible Export-Related Overseas Inventory" shall mean Export-Related Overseas Inventory which is acceptable to Lender and which is deemed to be eligible pursuant to the Loan Documents, but in no event shall include the Inventory (a) through (r) excluded from the definition of Eligible Export-Related Inventory.

"Eligible Person" shall mean a sole proprietorship, partnership, limited liability partnership, corporation or limited liability company which (a) is domiciled, organized or formed, as the case may be, in the United States, whether or not such entity is owned by a
foreign national or foreign entity; (b) is in good standing in the state of its formation or otherwise authorized to conduct business in the United States; (c) is not currently suspended or debarred from doing business with the United States government or any instrumentality, division, agency or department thereof; (d) exports or plans to export Items; (e) operates and has operated as a going concern for at least one (1) year; (f) has a positive tangible net worth determined in accordance with GAAP; and (g) has revenue generating operations relating to its core business activities for at least one year.  An Affiliated Foreign Person that meets all of the requirements of the foregoing definition of Eligible Person other than subclause (a) thereof shall be deemed to be an Eligible Person

"ERISA" shall mean the Employee Retirement Income Security Act of 1974 and the rules and regulations promulgated thereunder
.
"Export Order" shall mean a documented purchase order or contract evidencing a Buyer’s agreement to purchase the Items from Borrower for export from the United States, which documentation shall include written information that is necessary to confirm such purchase order 

or contract, including identification of the Items, the name of the Buyer, the country of destination, contact information for the Buyer and the total amount of the purchase order or contract; in the case of Indirect Exports, such documentation shall further include a copy of the written purchase order or contract from a foreign purchaser or other documentation clearly evidencing a foreign purchaser’s agreement to purchase the Items.

"Export-Related Accounts Receivable" shall mean those Accounts Receivable arising from the sale of Items which are due and payable to Borrower in the United States.
"Export-Related Accounts Receivable Value" shall mean, at the date of determination thereof, the aggregate face amount of Eligible Export-Related Accounts Receivable less taxes, discounts, credits, allowances and Retainages, except to the extent otherwise permitted by Ex-Im Bank in writing.

"Export-Related Borrowing Base" shall mean, at the date of determination thereof, the sum of (a) (if Lender elects to include) the Export-Related Inventory Value or Export-Related Historical Inventory Value multiplied by the Advance Rate applicable to Eligible Export-Related Inventory set forth in Section 5.B.(1.) of the Loan Authorization Agreement, plus (b) the Export- Related Accounts Receivable Value multiplied by the Advance Rate applicable to Eligible
Export-Related Accounts Receivable set forth in Section 5.B.(2.) of the Loan Authorization
Agreement, plus (c) if permitted by Ex-Im Bank in writing, the Retainage Value multiplied by
the Advance Rate applicable to Retainages set forth in Section 5.B.(3.) of the Loan Authorization Agreement, plus (d) the Other Assets set forth in Section 5.B.(4.) of the Loan Authorization Agreement multiplied by the Advance Rate agreed to in writing by Ex-Im Bank, plus (e) if permitted by Ex-Im Bank in writing, the Export-Related Overseas Accounts Receivable Value multiplied by the Advance Rate applicable to Eligible Export-Related Overseas Accounts Receivable set forth in Section 5.B.(5.) of the Loan Authorization Agreement, plus (f) if
permitted by Ex-Im Bank in writing, the Export-Related Overseas Inventory Value multiplied by the Advance Rate applicable to Eligible Export-Related Overseas Inventory set forth in Section
5.B.(6.) of the Loan Authorization Agreement, less (g) the amounts required to be reserved pursuant to Section 2.10(b) of this Agreement for each outstanding Letter of Credit, less (h) such reserves and in such amounts deemed necessary and proper by Lender from time to time.

"Export-Related Borrowing Base Certificate" shall mean a certificate in the form provided or approved by Lender, executed by Borrower and delivered to Lender pursuant to the Loan Documents detailing the Export-Related Borrowing Base supporting the Credit Accommodations which reflects, to the extent included in the Export-Related Borrowing Base, Export-Related Accounts Receivable, Eligible Export-Related Accounts Receivable, Export-Related Inventory, Eligible Export-Related Inventory, Export-Related Overseas Accounts Receivable, Eligible Export-Related Accounts Receivable, Export-Related Overseas Inventory and Eligible Export- Related Overseas Inventory balances that have been reconciled with Borrower's general ledger, Accounts Receivable Aging Report and Inventory schedule.
"Export-Related Inventory" shall mean the Inventory of Borrower located in the United States that has been purchased, manufactured or otherwise acquired by Borrower for sale or resale as Items, or to be incorporated into Items to be sold or resold pursuant to Export Orders.

"Export-Related Inventory Value" shall mean, at the date of determination thereof, the lowest of (i) the cost of Eligible Exported-Related Inventory as determined in accordance with 

GAAP, or (ii) the market value of Eligible Export-Related Inventory as determined in accordance with GAAP or (iii) the lower of the appraised market value or orderly liquidation value of the Eligible Export-Related Inventory, if Lender has other loans and financial accommodations to a Borrower for which it conducts (or contracts for the performance of) such an appraised or orderly liquidation value.

"Export-Related Overseas Accounts Receivable" shall mean those Accounts Receivable arising from the sale of Items which are due and payable outside of the United States either to a Borrower or an Affiliated Foreign Person.

"Export-Related Overseas Accounts Receivable Value" shall mean, with respect to a Loan Facility, at the date of determination thereof, the aggregate face amount of Eligible Export- Related Overseas Accounts Receivable less taxes, discounts, credits, allowances and Retainages, except to the extent otherwise permitted by Ex-Im Bank in writing.

"Export-Related Overseas Inventory" shall mean the Inventory of Borrower located outside of the United States that has been purchased, manufactured or otherwise acquired by such Borrower for sale or resale as Items, or to be incorporated into Items to be sold or resold pursuant to Export Orders.

“Export-Related Overseas Inventory Value” shall mean, at the date of determination thereof, the lowest of (i) the cost of Eligible Export-Related Overseas Inventory as determined in accordance with GAAP, (ii) the market value of Eligible Export-Related Overseas Inventory as determined in accordance with GAAP or (iii) the appraised or orderly liquidation value of the Eligible Export-Related Overseas Inventory, if Lender has other loans and financial accommodations to Borrower or an Affiliated Foreign Person for which it conducts (or contracts for the performance of) such a appraised or orderly liquidation.

“Export-Related Sales Ratio” shall mean with respect to a Borrower, the percentage of such Borrower’s total sales revenue derived from the sale of Eligible Export-Related Inventory over a rolling twelve-month period ending no more than ninety (90) days prior to the date of the relevant Export-Related Borrowing Base Certificate

"Extension" shall mean, with respect to a Loan Facility, an amendment to the Loan Authorization Agreement extending the Final Disbursement Date on the same terms and conditions as the Loan Facility for an aggregate period not to exceed one hundred and twenty (120) days beyond the original Final Disbursement Date, either as agreed to in writing by Ex-Im Bank or, in the case of Delegated Authority, as notified by Lender to Ex-Im Bank pursuant to its authority under the Delegated Authority Letter Agreement.

“Fast Track Lender Agreement” shall mean the Fast Track Lender Agreement, if any, between Ex-Im Bank and Lender.

"Export-Related General Intangibles" shall mean the Pro Rata Percentage of General Intangibles determined as of the earlier of: (i) the date such General Intangibles are liquidated and (ii) the date Borrower fails to pay when due any outstanding amount of principal or accrued 

interest payable under the Loan Documents that becomes the basis for a Payment Default on which a Claim is filed.

“Export-Related Historical Inventory Value” shall mean with respect to a Borrower, the relevant Export-Related Sales Ratio multiplied by the lowest of (i) the cost of such Borrower’s Inventory as determined in accordance with GAAP, or (ii) the market value of such Borrower’s Inventory as determined in accordance with GAAP or (iii) the appraised or orderly liquidation value of such Borrower’s Inventory, if Lender has loans and financial accommodations to such Borrower for which it conducts (or contracts for the performance of) such an appraised or orderly liquidation value.

"Final Disbursement Date" shall mean the last date on which Lender may make a Disbursement set forth in Section 10 of the Loan Authorization Agreement (including as amended by an Extension) or, if such date is not a Business Day, the next succeeding Business Day; provided, however, to the extent that Lender has not received cash collateral in the amount of the Letter of Credit Obligations or an equivalent full indemnity from Borrower or Guarantor, as applicable, with respect to Letter of Credit Obligations outstanding on the Final Disbursement Date, the Final Disbursement Date with respect to an advance to fund a drawing under such Letter of Credit shall be no later than thirty (30) days after any such drawing which may be no later than the expiry date of the Letter of Credit related thereto
 
                "GAAP" shall mean the generally accepted accounting principles issued in the United States.

"General Intangibles" shall mean all intellectual property and other "general intangibles" (as such term is defined in the UCC).

"Guarantor" shall mean any Person which is identified in Section 3 of the Loan Authorization Agreement who shall guarantee (jointly and severally if more than one) the payment and performance of all or a portion of the Loan Facility Obligations.

"Guarantee Agreement" shall mean a valid and enforceable agreement of guarantee executed by each Guarantor in favor of Lender.

“Indirect Exports” shall mean finished goods or services that are sold by a Borrower to a Buyer located in the United States, are intended for export from the United States, and are identified in Section 4.A.(2.) of the Loan Authorization Agreement.

"Inventory" shall mean all "inventory" (as such term is defined in the UCC), now or hereafter owned or acquired by Borrower, wherever located, including all inventory, merchandise, goods and other personal property which are held by or on behalf of Borrower for sale or lease or are furnished or are to be furnished under a contract of service or which constitute raw materials, work in process or materials used or consumed or to be used or consumed in Borrower's business or in the processing, production, packaging, promotion, delivery or shipping of the same, including other supplies.

“ISP” shall mean the International Standby Practices-ISP98, International Chamber of

Commerce Publication No. 590 and any amendments and revisions thereof.

“Issuing Bank” shall mean the bank that issues a Letter of Credit, which bank is Lender itself or a bank that Lender has caused to issue a Letter of Credit by way of a guarantee or reimbursement obligation.

"Items" shall mean the finished goods or services which are intended for export from the United States, either directly or as an Indirect Export, meet the U.S. Content requirements in accordance with Section 2.01(b)(ii) of this Agreement and are specified in Section 4.A. of the Loan Authorization Agreement.
"Letter of Credit" shall mean a Commercial Letter of Credit or a Standby Letter of Credit.

"Letter of Credit Obligations" shall mean all undrawn amounts of outstanding obligations incurred by Lender, whether direct or indirect, contingent or otherwise, due or not due, in connection with the issuance or guarantee by Lender or Issuing Bank of Letters of Credit.

"Lien" shall mean any mortgage, security deed or deed of trust, pledge, hypothecation, assignment, deposit arrangement, lien, charge, claim, security interest, security title, easement or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any lease or title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement perfecting a security interest under the UCC or comparable law of any jurisdiction) by which property is encumbered or otherwise charged.

"Loan Agreement" shall mean a valid and enforceable agreement between Lender and a Borrower setting forth, with respect to each Loan Facility, the terms and conditions of such Loan Facility.

"Loan Authorization Agreement" shall mean, as applicable, the duly executed Loan Authorization Agreement, Fast Track Loan Authorization Agreement, or the Loan Authorization Notice, setting forth certain terms and conditions of each Loan Facility, a copy of which is attached hereto as Annex A.

"Loan Authorization Notice" shall mean the Loan Authorization Notice executed by Lender and delivered to Ex-Im Bank in accordance with the Delegated Authority Letter Agreement setting forth the terms and conditions of each Loan Facility.

"Loan Documents" shall mean the Loan Authorization Agreement, the Loan Agreement, this Agreement, each promissory note (if applicable), each Guarantee Agreement, and all other instruments, agreements and documents now or hereafter executed by the applicable Borrower, any Guarantor, Lender or Ex-Im Bank evidencing, securing, guaranteeing or otherwise relating to the Loan Facility or any Credit Accommodations made thereunder.

"Loan Facility" shall mean the Revolving Loan Facility, the Transaction Specific Loan Facility or the Transaction Specific Revolving Loan Facility established by Lender in favor of Borrower under the Loan Documents.

"Loan Facility Obligations" shall mean all loans, advances, debts, expenses, fees, liabilities, and obligations, including any accrued interest thereon, for the performance of covenants, tasks or duties or for payment of monetary amounts (whether or not such performance is then required or contingent, or amounts are liquidated or determinable) owing by Borrower to Lender, of any kind or nature, present or future, arising in connection with the Loan Facility.

"Loan Facility Term" shall mean, with respect to a Loan Facility, the number of months
or portion thereof from the Effective Date to the Final Disbursement Date as set forth in the Loan
Authorization Agreement as amended.
"Master Guarantee Agreement" shall mean the Master Guarantee Agreement between
Ex-Im Bank and Lender, as amended, modified, supplemented and restated from time to time.

"Material Adverse Effect" shall mean a material adverse effect on (a) the business, assets, operations, prospects or financial or other condition of Borrower or any Guarantor, (b) any Borrower's ability to pay or perform the Loan Facility Obligations in accordance with the terms thereof, (c) the Collateral or Lender's Liens on the Collateral or the priority of such Lien, or (d) Lender's rights and remedies under the Loan Documents.

"Maximum Amount" shall mean the maximum Credit Accommodation Amount that may be outstanding at any time under each Loan Facility, as specified in Section 5.A. of the Loan Authorization Agreement.

“Other Assets” shall mean, with respect to a Loan Facility, such other assets of a Borrower to be included in Primary Collateral, which may include cash and marketable securities, or such other assets as Ex-Im Bank agrees to in writing, and disclosed as Primary Collateral in Section 6.A. of the Loan Authorization Agreement.  The applicable Advance Rate (to be multiplied by the Other Asset Value) shall be as agreed to by Ex-Im Bank in writing case by case by case and set forth in Section 5.B.(4) of the Loan Authorization Agreement.

“Other Asset Value” shall mean, with respect to a Loan Facility, at the date of determination thereof, the value of the Other Assets as determined in accordance with GAAP.

“Other Collateral” shall mean any additional collateral that Lender customarily would require as security for loan facilities on its own account and risk where the permitted borrowing level is based principally on a borrowing base derived from a borrower’s inventory and accounts receivable, but where such additional collateral does not enter into the borrowing base calculation.

"Permitted Liens" shall mean (a) Liens for taxes, assessments or other governmental charges or levies not delinquent, or, being contested in good faith and by appropriate proceedings and with respect to which proper reserves have been taken by Borrower; provided, that, the Lien shall have no effect on the priority of the Liens in favor of Lender or the value of the assets in which Lender has such a Lien and a stay of enforcement of any such Lien shall be in effect; (b) deposits or pledges securing obligations under worker's compensation, unemployment insurance, social security or public liability laws or similar legislation; (c) deposits or pledges securing bids, tenders, contracts (other than contracts for the payment of money), leases, statutory obligations, 

surety and appeal bonds and other obligations of like nature arising in the ordinary course of Borrower's business; (d) judgment Liens that have been stayed or bonded; (e) mechanics', workers', materialmen's or other like Liens arising in the ordinary course of Borrower's business with respect to obligations which are not due; (f) Liens placed upon fixed assets hereafter acquired to secure a portion of the purchase price thereof, provided, that, any such Lien shall not encumber any other property of Borrower; (g) security interests being terminated concurrently with the execution of the Loan Documents; and (h) Liens disclosed in Section 6.D. of the Loan Authorization Agreement, provided that, except as otherwise permitted by Ex-Im Bank in
writing, such Liens in Section 6.D. shall be subordinate to the Liens in favor of Lender on
Primary Collateral.
"Person" shall mean any individual, sole proprietorship, partnership, limited liability partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, entity or government (whether national, federal, provincial, state, county, city, municipal or otherwise, including any instrumentality, division, agency, body or department thereof), and shall include such Person's successors and assigns.

"Pro Rata Percentage" shall mean, with respect to a Loan Facility, as of the date of determination thereof, the principal balance of the Credit Accommodations outstanding as a percentage of the combined principal balance of all loans from Lender to such Borrower including the then outstanding principal balance of the Credit Accommodations plus unfunded amounts under outstanding Letters of Credit.

"Principals" shall mean any officer, director, owner, partner, key employee, or other Person with primary management or supervisory responsibilities with respect to Borrower or any other Person (whether or not an employee) who has critical influence on or substantive control over the transactions covered by this Agreement.

"Retainage" shall mean that portion of the purchase price of an Export Order that a Buyer is not obligated to pay until the end of a specified period of time following the satisfactory performance under such Export Order.

"Retainage Accounts Receivable" shall mean those portions of Eligible Export-Related Accounts Receivable or Eligible Export-Related Overseas Accounts Receivable arising out of a Retainage.

“Retainage Value" shall mean, at the date of determination thereof, the aggregate face amount of Retainage Accounts Receivable as permitted by Ex-Im Bank in writing, less taxes, discounts, credits and allowances, except to the extent otherwise permitted by Ex-Im Bank in writing.

"Revolving Loan Facility" shall mean the credit facility or portion thereof established by Lender in favor of Borrower for the purpose of providing working capital in the form of loans and/or Letters of Credit to finance the manufacture, production or purchase and subsequent export sale of Items pursuant to Loan Documents under which Credit Accommodations may be made and repaid on a continuous basis based solely on credit availability on the Export-Related Borrowing Base during the term of such credit facility

"Special Conditions" shall mean those conditions, if any, set forth in Section 13 of the
Loan Authorization Agreement.

"Specific Export Orders" shall mean those Export Orders specified in Section 5.C. of the Loan Authorization Agreement as applicable for a Transaction Specific Revolving Loan Facility or a Transaction Specific Loan Facility.
"Transaction Specific Loan Facility" shall mean a credit facility or a portion thereof established by Lender in favor of Borrower for the purpose of providing working capital in the form of loans and/or Letters of Credit to finance the manufacture, production or purchase and subsequent export sale of Items pursuant to Loan Documents under which Credit Accommodations are made based solely on credit availability on the Export-Related Borrowing Base relating to Specific Export Orders and once such Credit Accommodations are repaid they may not be reborrowed.

"Transaction Specific Revolving Loan Facility" shall mean a Revolving Credit Facility established to provide financing of Specific Export Orders.

"UCC" shall mean the Uniform Commercial Code, as the same may be in effect from time to time in the relevant United States jurisdiction.

"UCP" shall mean the Uniform Customs and Practice for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500 and any amendments and revisions thereof.

"U.S." or "United States" shall mean the United States of America including any division or agency thereof (including United States embassies or United States military bases located overseas), and any United States Territory (including without limitation, Puerto Rico, Guam or the United States Virgin Islands).

"U.S. Content" shall mean, with respect to any Item, all the costs, including labor, materials, services and overhead, but not markup or profit margin, which are of U.S. origin or manufacture, and which are incorporated into an Item in the United States.

"Warranty" shall mean Borrower’s guarantee to Buyer that the Items will function as intended during the warranty period set forth in the applicable Export Order.

"Warranty Letter of Credit" shall mean a Standby Letter of Credit which is issued or caused to be issued by Lender to support the obligations of Borrower with respect to a Warranty or a Standby Letter of Credit which by its terms becomes a Warranty Letter of Credit.

1.02     Rules of Construction.  For purposes of this Agreement, the following additional rules of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate, each term stated in either the singular or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, the feminine and the neuter; (b) the term "or" is not exclusive; (c) the term "including" (or any form thereof) shall not be limiting or exclusive; (d) all references to statutes 

and related regulations shall include any amendments of same and any successor statutes and regulations; (e) the words "this Agreement", "herein", "hereof", "hereunder" or other words of similar import refer to this Agreement as a whole including the schedules, exhibits, and annexes hereto as the same may be amended, modified or supplemented; (f) all references in this Agreement to sections, schedules, exhibits, and annexes shall refer to the corresponding sections, schedules, exhibits, and annexes of or to this Agreement; and (g) all references to any
instruments or agreements, including references to any of the Loan Documents, the Delegated
Authority Letter Agreement, or the Fast Track Lender Agreement shall include any and all modifications, amendments and supplements thereto and any and all extensions or renewals thereof to the extent permitted under this Agreement.

1.03     Incorporation of Recitals. The Recitals to this Agreement are incorporated into and shall constitute a part of this Agreement.

ARTICLE II OBLIGATIONS OF BORROWER
Until  payment  in  full  of  all  Loan  Facility Obligations  and  termination  of  the  Loan
Documents, Borrower agrees as follows:

2.01     Use of Credit Accommodations. (a) Borrower shall use Credit Accommodations only for the purpose of enabling Borrower to finance the cost of manufacturing, producing, purchasing or selling the Items.  Borrower may not use any of the Credit Accommodations for the purpose of: (i) servicing or repaying any of Borrower's pre-existing or future indebtedness unrelated to the Loan Facility unless approved by Ex-Im Bank in writing; (ii) acquiring fixed assets or capital assets for use in Borrower's business; (iii) acquiring, equipping or renting commercial space outside of the United States; (iv) paying the salaries of non U.S. citizens or non-U.S. permanent residents who are located in offices outside of the United States; or (v) in connection with a Retainage or Warranty unless approved by Ex-Im Bank in writing.

(b)     In addition, no Credit Accommodation may be used to finance the manufacture, purchase or sale of any of the following:

(i)        Items to be sold to a Buyer located in a country as to which Ex-Im Bank is prohibited from doing business as designated in the Country Limitation Schedule;

(ii)       that part of the cost of the Items which is not U.S. Content unless such part is not greater than fifty percent (50%) of the cost of the Items and is incorporated into the Items in the United States;

(iii)      defense articles or defense services;

(iv)      Capital Goods unless in accordance with Section 2.14 of this Agreement;
or

(v)       without Ex-Im Bank's prior written consent, any Items to be used in the construction, alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production facilities.

2.02     Security Interests.  Borrower agrees to cooperate with Lender in any steps Lender shall take to file and maintain valid, enforceable and perfected security interests in the Collateral.

2.03     Loan Documents and Loan Authorization Agreement.  (a)  This Agreement and each of the other Loan Documents applicable to Borrower have been duly executed and delivered on behalf of Borrower, and are and will continue to be legal and valid obligations of Borrower, enforceable against it in accordance with its terms.
Authority Letter Agreement, or the Fast Track Lender Agreement shall include any and all modifications, amendments and supplements thereto and any and all extensions or renewals thereof to the extent permitted under this Agreement.

1.03     Incorporation of Recitals. The Recitals to this Agreement are incorporated into and shall constitute a part of this Agreement.

ARTICLE II OBLIGATIONS OF BORROWER
Until  payment  in  full  of  all  Loan  Facility Obligations  and  termination  of  the  Loan
Documents, Borrower agrees as follows:

2.01     Use of Credit Accommodations. (a) Borrower shall use Credit Accommodations only for the purpose of enabling Borrower to finance the cost of manufacturing, producing, purchasing or selling the Items.  Borrower may not use any of the Credit Accommodations for the purpose of: (i) servicing or repaying any of Borrower's pre-existing or future indebtedness unrelated to the Loan Facility unless approved by Ex-Im Bank in writing; (ii) acquiring fixed assets or capital assets for use in Borrower's business; (iii) acquiring, equipping or renting commercial space outside of the United States; (iv) paying the salaries of non U.S. citizens or non-U.S. permanent residents who are located in offices outside of the United States; or (v) in connection with a Retainage or Warranty unless approved by Ex-Im Bank in writing.

(b)     In addition, no Credit Accommodation may be used to finance the manufacture, purchase or sale of any of the following:

(i)        Items to be sold to a Buyer located in a country as to which Ex-Im Bank is prohibited from doing business as designated in the Country Limitation Schedule;

(ii)       that part of the cost of the Items which is not U.S. Content unless such part is not greater than fifty percent (50%) of the cost of the Items and is incorporated into the Items in the United States;

(iii)      defense articles or defense services;

(iv)      Capital Goods unless in accordance with Section 2.14 of this Agreement;
or

(v)       without Ex-Im Bank's prior written consent, any Items to be used in the construction, alteration, operation or maintenance of nuclear power, enrichment, reprocessing, research or heavy water production facilities.

2.02     Security Interests.  Borrower agrees to cooperate with Lender in any steps Lender shall take to file and maintain valid, enforceable and perfected security interests in the Collateral.

2.03     Loan Documents and Loan Authorization Agreement.  (a)  This Agreement and each of the other Loan Documents applicable to Borrower have been duly executed and delivered on behalf of Borrower, and are and will continue to be legal and valid obligations of Borrower, enforceable against it in accordance with its terms.

 
(c)       Borrower hereby represents and warrants to Lender that Borrower is an Eligible Person. 

2.04     Export-Related Borrowing Base Certificates and Export Orders.  (a) In order to receive Credit Accommodations under the Loan Facility, Borrower shall have delivered to Lender an Export-Related Borrowing Base Certificate as frequently as required by Lender but at least within the past month, together with a copy of the Export Order(s) or, for Revolving Loan Facilities, if permitted by Lender, a written summary of the Export Orders (when Eligible
Export-Related Inventory and Eligible Overseas Export-Related Inventory are entering the Export-Related Borrowing Base) against which Borrower is requesting Credit Accommodations. In addition, so long as there are any Credit Accommodations outstanding under the Loan
Facility, Borrower shall deliver to Lender an Export-Related Borrowing Base Certificate at least once each month.  Lender shall determine if daily electronic reporting reconciled monthly may substitute for monthly Export-Related Borrowing Base Certificates.  If the Lender requires an Export-Related Borrowing Base Certificate more frequently, Borrower shall deliver such Export- Related Borrowing Base Certificate as required by Lender.

(b)       If Lender permits summaries of Export Orders, Borrower shall also deliver promptly to Lender copies of any Export Orders requested by Lender.

2.05     Schedules, Reports and Other Statements.  With the delivery of each Export- Related Borrowing Base Certificate required in Section 2.04 above, Borrower shall submit to Lender in writing (a) an Inventory schedule for the preceding month, as applicable, and (b) an Accounts Receivable Aging Report for the preceding month.  Borrower shall also furnish to Lender promptly upon request such information, reports, contracts, invoices and other data concerning the Collateral as Lender may from time to time specify.

2.06     Exclusions from the Export-Related Borrowing Base.  In determining the Export- Related Borrowing Base, Borrower shall exclude therefrom Inventory which are not Eligible Export-Related Inventory or Eligible Export-Related Overseas Inventory and Accounts Receivable which are not Eligible Export-Related Accounts Receivable or Eligible Export- Related Overseas Accounts Receivable.  Borrower shall promptly, but in any event within five (5) Business Days, notify Lender (a) if any then existing Export-Related Inventory or Export- Related Overseas Inventory no longer constitutes Eligible Export-Related Inventory or Eligible 

Export-Related Overseas Inventory, as applicable or (b) of any event or circumstance which to Borrower’s knowledge would cause Lender to consider any then existing Export-Related Accounts Receivable or Export-Related Overseas Accounts Receivable as no longer constituting an Eligible Export-Related Accounts Receivable or Eligible Export-Related Overseas Accounts Receivable, as applicable.

2.07     Borrowings and Reborrowings.  (a)   If the Loan Facility is a Revolving Loan Facility or Transaction Specific Revolving Loan Facility, provided that Borrower is not in default under any of the Loan Documents, Borrower may borrow, repay and reborrow amounts under such Loan Facility up to the credit available on the current Export-Related Borrowing
Base Certificate subject to the terms of this Agreement and each of the other Loan Documents until the close of business on the Final Disbursement Date.

(b)       If the Loan Facility is a Transaction Specific Loan Facility, provided that Borrower is not in default under any of the Loan Documents, Borrower may borrow (but not reborrow) amounts under the Loan Facility up to the credit available on the current Export- Related Borrowing Base Certificate subject to the terms of this Agreement and each of the other Loan Documents until the close of business on the Final Disbursement Date.

2.08     Repayment Terms.  (a)   The Borrower on a Revolving Loan Facility shall pay in full the outstanding Loan Facility Obligations no later than the first Business Day after the Final Disbursement Date unless such Loan Facility is renewed or extended by Lender consistent with procedures required by Ex-Im Bank.

(b)       The Borrower on a Transaction Specific Loan Facility and a Transaction Specific Revolving Loan Facility shall, within two (2) Business Days of the receipt thereof, pay to Lender (for application against the outstanding Loan Facility Obligations) all checks, drafts, cash and other remittances it may receive in payment or on account of the Export-Related Accounts Receivable, Export-Related Overseas Accounts Receivable or any other Collateral, in precisely the form received (except for the endorsement of Borrower where necessary).  Pending such deposit, Borrower shall hold such amounts in trust for Lender separate and apart and shall not commingle any such items of payment with any of its other funds or property.  Unless a Transaction Specific Loan Facility or Transaction Specific Revolving Loan Facility is renewed
or extended by Lender consistent with procedures required by Ex-Im Bank, Borrower shall pay in full all outstanding Loan Facility Obligations no later than the first Business Day after the Final Disbursement Date, except for Eligible Export-Related Accounts Receivables and Eligible Export-Related Overseas Accounts Receivable outstanding as of the Final Disbursement Date and due and payable after such date, for which the principal and accrued and unpaid interest
thereon shall be due and payable no later than the first Business Day after the date such Accounts
Receivable are due and payable.

2.09     Financial Statements.  Borrower shall deliver to Lender the financial statements required to be delivered by Borrower in accordance with Section 11 of the Loan Authorization Agreement.

2.10     Additional Security or Payment.  (a)  Borrower shall at all times ensure that the Export-Related Borrowing Base equals or exceeds the aggregate outstanding amount of 

Disbursements.  If informed by Lender or if Borrower otherwise has actual knowledge that the Export-Related Borrowing Base is at any time less than the aggregate outstanding amount of Disbursements, Borrower shall, within five (5) Business Days, either (i) furnish additional Collateral to Lender, in form and amount satisfactory to Lender and Ex-Im Bank or (ii) pay to Lender an amount equal to the difference between the aggregate outstanding amount of Disbursements and the Export-Related Borrowing Base.

(b)       For purposes of this Agreement, in determining the Export-Related Borrowing Base there shall be deducted from the Export-Related Borrowing Base an amount equal to (i) twenty-five percent (25%) of the undrawn amount of outstanding Commercial Letters of Credit and Standby Letters of Credit and (ii) one hundred percent (100%) of the undrawn amount of
outstanding Warranty Letters of Credit less the amount of cash collateral held by Lender to secure Warranty Letters of Credit.

(c)       Unless otherwise approved in writing by Ex-Im Bank, for Revolving Loan Facilities (other than Transaction Specific Revolving Loan Facilities), Borrower shall at all times ensure that the sum of the outstanding amount of Disbursements and the undrawn amount of outstanding Commercial Letters of Credit that is supported by Eligible Export-Related Inventory or Eligible Export-Related Overseas Inventory (discounted by the relevant Advance Rate percentages) in the Export-Related Borrowing Base does not exceed sixty percent (60%) of the sum of the total outstanding amount of Disbursements and the undrawn amount of all
outstanding Commercial Letters of Credit.  If informed by Lender or if Borrower otherwise has actual knowledge that the sum of the outstanding amount of Disbursements and the undrawn amount of outstanding Commercial Letters of Credit that is supported by such Inventory exceeds sixty percent (60%) of the sum of the total outstanding Disbursements and the undrawn amount of all outstanding Commercial Letters of Credit, Borrower shall, within five (5) Business Days, either (i) furnish additional non-Inventory Collateral to Lender, in form and amount satisfactory to Lender and Ex-Im Bank, or (ii) pay down the applicable portion of the outstanding Disbursements or  (iii) reduce the undrawn amount of outstanding Commercial Letters of Credit such that the above described ratio is not exceeded.

(d)       If informed by Lender or if Borrower otherwise has actual knowledge that the conditions of Section 2.16(g) are at any time not being met, Borrower shall, within five (5) Business Days, either (i) furnish additional Collateral to Lender that is not Eligible Export- Related Overseas Accounts Receivable or Eligible Export-Related Overseas Inventory, in form and amount satisfactory to Lender and Ex-Im Bank, or (ii) remove from the Export-Related Borrowing  Base  the  portion  of  Eligible  Export-Related  Overseas  Accounts  Receivable  or Eligible Export-Related Overseas Inventory that supports greater than fifty percent (50%) of the Export-Related Borrowing Base.

2.11     Continued Security Interest.  Borrower shall not change (a) its name or identity in any manner, (b) the location of its principal place of business or its jurisdiction of organization or formation, (c) the location of any of the Collateral or (d) the location of any of the books or records related to the Collateral, in each instance without giving thirty (30) days prior written notice thereof to Lender and taking all actions deemed necessary or appropriate by Lender to continuously protect and perfect Lender’s Liens upon the Collateral.

2.12     Inspection of Collateral and Facilities.  (a)    Borrower shall permit the representatives of Lender and Ex-Im Bank to make at any time during normal business hours inspections of the Collateral and of Borrower's facilities, activities, and books and records, and shall cause its officers and employees to give full cooperation and assistance in connection therewith.

(b)       Borrower agrees to facilitate Lender’s conduct of field examinations at Borrower’s facilities in accordance with the time schedule and content for such examinations that Lender requests.  Such field examinations shall address at a minimum: (x) the value of the Collateral against which Credit Accommodations may be provided, (y) the amount, if any, that
the aggregate outstanding amount of Disbursements exceeds the Export-Related Borrowing Base and (z) whether such Borrower is in material compliance with the terms of each of the Loan Documents.  Such field examinations shall include an inspection and evaluation of the Export- Related Inventory and Export-Related Overseas Inventory, a book audit of Export-Related Accounts Receivable and Export-Related Overseas Accounts Receivable, a review of the Accounts Receivable Aging Reports and a review of Borrower’s compliance with any Special Conditions.  Lenders who opt to use the Export-Related Historical Inventory Value in the
Export-Related Borrowing Base calculation shall reconcile those numbers against the calculation for the relevant time periods using the Export-Related Inventory Value. Whenever Export- Related Accounts Receivable or Export-Related Inventory derived from Indirect Exports are in the Export-Related Borrowing Base, Lender shall verify compliance with Section 2.15 herein, including taking a random sampling of ultimate foreign purchasers.

2.13     General Intangibles.  Borrower represents and warrants that it owns, or is licensed to use, all General Intangibles necessary to conduct its business as currently conducted except where the failure of Borrower to own or license such General Intangibles could not reasonably
be expected to have a Material Adverse Effect.

2.14     Economic Impact Approval.   (a)  For Loan Facilities up to and including $10 million, Borrower acknowledges that Capital Goods may not be included as Items, and Export- Related Inventory, Export-Related Overseas Inventory, Export-Related Accounts Receivable and Export-Related Overseas Accounts Receivable in connection with the sale of such Capital Goods may not be included in the Export-Related Borrowing Base, if such Capital Goods would enable
a foreign buyer to establish or expand production of a product where, as of the date of the Economic Impact Certification covering such Item: (i) the Buyer is subject to a Final Anti- Dumping (AD) or Countervailing Duty (CVD) order, or a Suspension Agreement arising from a AD or CVD investigation, and such product is substantially the same as the product that is the subject of the AD/CVD order or suspension agreement; or (ii) the Buyer is the subject of a Section 201 injury determination by the International Trade Commission (“ITC”) and such product is substantially the same as a product that is the subject of the ITC injury determination. Borrower may consult with Ex-Im Bank regarding the appropriate application of this Section
2.14(a) and may, at its option, request that Ex-Im Bank issue an Economic Impact Approval covering any Items listed in Section 4.A. of the Loan Authorization Agreement.  For Loan Facilities over $10 million involving Items that are Capital Goods, Borrower shall obtain from Ex-Im Bank, and abide by, an Economic Impact Approval covering all Items listed in Section
4(A) of the Loan Authorization Agreement.

(b)  Borrower shall provide Lender with a certification in the form of Annex B (an “Economic Impact Certification”) covering the Items stated in Section 4(A) of the Loan Authorization Agreement prior to Lender including such Items in the Loan Authorization Agreement.  Prior to Lender amending the Loan Authorization Agreement to include additional Items, Borrower shall provide Lender with an additional Economic Impact Certification covering such additional Items.

2.15     Indirect Exports.  Indirect Exports may be included as Items in a Loan Facility provided that funds available under such Loan Facility’s Export-Related Borrowing Base supported by Accounts Receivable and Inventory derived from Indirect Exports at no time exceed ten percent (10%) of the Maximum Amount of such Loan Facility, and provided, further that (a) the ultimate foreign buyer for the Items must be located in a country in which Ex-Im Bank is not legally prohibited from doing business in accordance with the Country Limitation
Schedule, and (b) the Borrower must make available to Lender verifiable evidence of intent to export the Indirect Exports from the United States, which evidence may be contained in the Export Orders and Accounts Receivable Aging Reports and supporting documents.  Lender must obtain written consent from Ex-Im Bank prior to including funds derived from Indirect Exports
in an Export-Related Borrowing Base above the ten percent (10%) threshold.

2.16     Overseas Inventory and Accounts Receivable.  Upon the prior written consent of Ex-Im Bank, Export-Related Overseas Accounts Receivable and Export-Related Overseas Inventory of a Borrower or of an Affiliated Foreign Person (as defined below) may be included in the Export-Related Borrowing Base provided that conditions required by Ex-Im Bank, including the following, are met:

(a)       the Affiliated Foreign Person, if any, has been approved by Ex-Im Bank;

(b)       the Affiliated Foreign Person, if any, is a Borrower under the relevant Loan
Facility;

(c)       notwithstanding the Maximum Amount of the Loan Facility, all payments due and payable on such Export-Related Overseas Accounts Receivable are collected through a cash collateral account under Lender’s control;

(d)       as of the Effective Date, or such later date when the Export-Related Overseas Accounts Receivable and/or Export-Related Overseas Inventory are added to the Loan Facility, Lender has obtained a valid and enforceable first priority Lien in the Export-Related Overseas Accounts Receivable and Export-Related Overseas Inventory, as applicable;

(e)       as of the Effective Date, or such later date when the Export-Related Overseas Accounts Receivable and/or Export-Related Overseas Inventory are added to the Loan Facility, Lender has obtained a legal opinion confirming the security interest in the Export-Related Overseas Accounts Receivable and Export-Related Overseas Inventory;

(f)        the Export-Related Overseas Accounts Receivable are due and payable in United
States Dollars or other currency acceptable to Ex-Im Bank; and

(g)      at no time may the portion of the Export-Related Borrowing Base derived from Eligible Export-Related Overseas Accounts Receivable and Eligible Export-Related Overseas Inventory exceed fifty percent (50%) of the Export-Related Borrowing Base.

For purposes hereof, an “Affiliated Foreign Person” shall mean a subsidiary or affiliate of a Borrower on the same Loan Facility, which has duly executed as a Borrower all of the applicable Loan Documents and any other documents required by Ex-Im Bank, meets all of the requirements of the definition of Eligible Person other than subclause (a) thereof and is in good standing in the country of its formation or otherwise authorized to conduct business in such country.

2.17     Country Limitation Schedule.  Unless otherwise informed in writing by Lender or Ex-Im Bank, Borrower shall be entitled to rely on the last copy of the Country Limitation Schedule distributed from Lender to Borrower.
2.18     Notice of Certain Events.  Borrower shall promptly, but in any event within five
(5) Business Days, notify Lender in writing of the occurrence of any of the following:

(a)       Borrower or any Guarantor (i) applies for, consents to or suffers the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or of all or a substantial part of its property or calls a meeting of its creditors, (ii) admits in writing its inability, or is generally unable, to pay its debts as they become due or ceases operations of its present business, (iii) makes a general assignment for the benefit of creditors, (iv) commences a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (v) is adjudicated as bankrupt or insolvent, (vi) files a petition seeking to take advantage of any other law providing for the relief of debtors, (vii) acquiesces to, or fails to have dismissed within thirty (30) days, any petition filed against it in any involuntary case under such bankruptcy laws, or (vii) takes any action for the purpose of effecting any of the foregoing;

(b)       any Lien in any of the Collateral, granted or intended by the Loan Documents to be granted to Lender, ceases to be a valid, enforceable, perfected, first priority Lien (or a lesser priority if expressly permitted pursuant to Section 6 of the Loan Authorization Agreement) subject only to Permitted Liens;

(c)       the issuance of any levy, assessment, attachment, seizure or Lien, other than a Permitted Lien, against any of the Collateral which is not stayed or lifted within thirty (30) calendar days;
(d)       any proceeding is commenced by or against Borrower or any Guarantor for the liquidation of its assets or dissolution;

(e)       any litigation is filed against Borrower or any Guarantor which has had or could reasonably be expected to have a Material Adverse Effect and such litigation is not withdrawn or dismissed within thirty (30) calendar days of the filing thereof;

(f)        any default or event of default under the Loan Documents;

(g)       any failure to comply with any terms of the Loan Authorization Agreement; (h)       any material provision of this Agreement or any other Loan Document for any
reason ceases to be valid, binding and enforceable in accordance with its terms;

(i)        any event which has had or could reasonably be expected to have a Material
Adverse Effect; or

(j)        the aggregate outstanding amount of Disbursements exceeds the applicable
Export-Related Borrowing Base.

2.19     Insurance. Borrower will at all times carry property, liability and other insurance, with insurers acceptable to Lender, in such form and amounts, and with such deductibles and other provisions, as Lender shall require, and Borrower will provide evidence of such insurance to Lender on the proper Acord Form, so that Lender is satisfied that such insurance is, at all times, in full force and effect. Each property insurance policy shall name Lender as loss payee or mortgagee and shall contain a lender's loss payable endorsement in form acceptable to Lender and each liability insurance policy shall name Lender as an additional insured. All policies of insurance shall provide that they may not be cancelled or changed without at least thirty (30) days' prior written notice to Lender and shall otherwise be in form and substance satisfactory to Lender. Borrower will promptly deliver to Lender copies of all reports made to insurance companies.

2.20     Taxes.  Borrower has timely filed all tax returns and reports required by applicable law, has timely paid all applicable taxes, assessments, deposits and contributions owing by Borrower and will timely pay all such items in the future as they became due and payable.
Borrower may, however, defer payment of any contested taxes; provided, that Borrower (a) in good faith contests Borrower's obligation to pay such taxes by appropriate proceedings promptly and diligently instituted and conducted; (b) notifies Lender in writing of the commencement of, and any material development in, the proceedings; (c) posts bonds or takes any other steps required to keep the contested taxes from becoming a Lien upon any of the Collateral; and (d) maintains adequate reserves therefore in conformity with GAAP.

2.21     Compliance with Laws.  Borrower represents and warrants that it has complied in all material respects with all provisions of all applicable laws and regulations, including those relating to Borrower's ownership of real or personal property, the conduct and licensing of Borrower's business, the payment and withholding of taxes, ERISA and other employee matters, safety and environmental matters.

2.22     Negative Covenants.  Without the prior written consent of Ex-Im Bank and Lender, Borrower shall not: (a) merge, consolidate or otherwise combine with any other Person; (b) acquire all or substantially all of the assets or capital stock of any other Person; (c) sell, lease, transfer, convey, assign or otherwise dispose of any of its assets, except for the sale of Inventory in the ordinary course of business and the disposition of obsolete equipment in the ordinary course of business; (d) create any Lien on the Collateral except for Permitted Liens; (e) make any 

material changes in its organizational structure or identity; or (f) enter into any agreement to do any of the foregoing.

2.23     Cross Default.  Borrower shall be deemed in default under the Loan Facility if Borrower fails to pay when due any amount payable to Lender under any loan or other credit accommodations to Borrower whether or not guaranteed by Ex-Im Bank.

2.24     Munitions List.  If any of the Items are articles, services, or related technical data that are listed on the United States Munitions List (part 121 of title 22 of the Code of Federal Regulations), Borrower shall send a written notice promptly, but in any event within five (5) Business Days, of Borrower learning thereof to Lender describing the Items(s) and the corresponding invoice amount
.
2.25     Suspension and Debarment, etc.  On the date of this Agreement neither Borrower nor its Principals are (a) debarred, suspended, proposed for debarment with a final determination still pending, declared ineligible or voluntarily excluded (as such terms are defined under any of the Debarment Regulations referred to below) from participating in procurement or nonprocurement transactions with any United States federal government department or agency pursuant to any of the Debarment Regulations or (b) indicted, convicted or had a civil judgment rendered against Borrower or any of its Principals for any of the offenses listed in any of the Debarment Regulations.  Unless authorized by Ex-Im Bank, Borrower will not knowingly enter into any transactions in connection with the Items with any person who is debarred, suspended, declared ineligible or voluntarily excluded from participation in procurement or nonprocurement transactions with any United States federal government department or agency pursuant to any of the Debarment Regulations.  Borrower will provide immediate written notice to Lender if at any time it learns that the certification set forth in this Section 2.24 was erroneous when made or has become erroneous by reason of changed circumstances.

ARTICLE III RIGHTS AND REMEDIES

3.01     Indemnification.  Upon Ex-Im Bank's payment of a Claim to Lender in connection with the Loan Facility pursuant to the Master Guarantee Agreement, Ex-Im Bank may assume all rights and remedies of Lender under the Loan Documents and may enforce any such rights or remedies against Borrower, the Collateral and any Guarantors.  Borrower shall hold Ex-Im Bank and Lender harmless from and indemnify them against any and all liabilities, damages, claims, costs and losses incurred or suffered by either of them resulting from (a) any
materially incorrect certification or statement knowingly made by Borrower or its agent to Ex-Im Bank or Lender in connection with the Loan Facility, this Agreement, the Loan Authorization Agreement or any other Loan Documents or (b) any material breach by Borrower of the terms
and conditions of this Agreement, the Loan Authorization Agreement or any of the other Loan Documents.  Borrower also acknowledges that any statement, certification or representation made by Borrower in connection with the Loan Facility is subject to the penalties provided in Article 18 U.S.C. Section 1001.

3.02     Liens. Borrower agrees that any and all Liens granted by it to Lender are also hereby granted to Ex-Im Bank to secure Borrower’s obligation, however arising, to reimburse 

Ex-Im Bank for any payments made by Ex-Im Bank pursuant to the Master Guarantee Agreement.  Lender is authorized to apply the proceeds of, and recoveries from, any property subject to such Liens to the satisfaction of Loan Facility Obligations in accordance with the terms of any agreement between Lender and Ex-Im Bank.
ARTICLE IV MISCELLANEOUS

4.01     Governing Law.  This Agreement and the obligations arising under this Agreement shall be governed by, and construed in accordance with, the law of the state governing the Loan Agreement.

4.02     Notification.  All notices required by this Agreement shall be given in the manner and to the parties provided for in the Loan Agreement.

4.03     Partial Invalidity.  If at any time any of the provisions of this Agreement becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, the validity nor the enforceability of the remaining provisions hereof shall in any way be affected or impaired.

4.04     Waiver of Jury Trial.  BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT, PROCEEDING OR OTHER LITIGATION BROUGHT TO RESOLVE ANY DISPUTE ARISING UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, THE LOAN AUTHORIZATION AGREEMENT, ANY LOAN DOCUMENT, OR ANY OTHER AGREEMENT, DOCUMENT OR INSTRUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OR OMISSIONS OF LENDER, EX-
IM BANK, OR ANY OTHER PERSON, RELATING TO THIS AGREEMENT, THE LOAN AUTHORIZATION AGREEMENT OR ANY OTHER LOAN DOCUMENT.

4.05     Consequential Damages.  Neither Ex-Im Bank, Lender nor any agent or attorney for any of them shall be liable to Borrower for consequential damages arising from any breach of contract, tort or other wrong relating to the establishment, administration or collection of the
Loan Facility Obligations.

IN WITNESS WHEREOF, Borrower has caused this Agreement to be duly executed as of the 3rd day of April, 2013.

FUELCELL ENERGY, INC. (Name of Borrower)

		
	By: 
	/s/ Michael S. Bishop     (Signature)

		
	Name: 
	Michael S. Bishop     (Print or Type)

		
	Title: 
	SVP, CFO     (Print or Type)

ACKNOWLEDGED:

JPMORGAN CHASE BANK, N.A.

By:    /s/ James P. Murphy     Name:   James Patrick Murphy
Title:   Authorized Officer

JPMORGAN CHASE BANK, N.A. Global Trade Services

By: /s/ Randall Mascorro     Name:  Randall Mascorro
Title:    Vice President

By:    /s/ Terese Gravenhorst     Name:   Terese Gravenhorst
Title:   Executive Director

ANNEXES:

Annex A         - Loan Authorization Agreement, Fast Track Loan Authorization Agreement or
Loan Authorization Notice, as applicable
Annex B         - Economic Impact Certification

ANNEX A
LOAN AUTHORIZATION NOTICE 
[See attached]

[Two originals to be provided to Ex-Im Bank]

To:      Export-Import Bank of the United States
811 Vermont Avenue, N.W. Washington, D.C. 20571
Attention:  Vice President - United States Division

LOAN AUTHORIZATION NOTICE

We hereby notify the Export-Import Bank of the United States ("Ex-Im Bank") that, pursuant to the delegated authority granted by Ex-Im Bank to the undersigned institution (the "Lender") under the Delegated Authority Letter Agreement referred to below between Lender and Ex-Im Bank, we have issued an Ex-Im Bank Guarantee under the Master Guarantee Agreement between Ex-Im Bank and Lender, of the Loan Facility identified below from Lender to Borrower identified below.  The Loan Facility is subject to the specific terms and conditions set forth below.  Unless otherwise defined, the capitalized terms used herein shall have the meanings set forth in the Master Guarantee Agreement.

		
	1.
	Documentation and Location of Loan Documents: Name of Lender:  JPMorgan Chase Bank, N.A.

Delegated Authority Letter Agreement Number:  TX - DA - 05 - 010

Master Guarantee Agreement Number:  TX - MGA - 05 - 010

Borrower Agreement Date:  April 3, 2013

Effective Date of this Loan Facility:  April 3, 2013

Location of Loan Documents:  2200 Ross Ave., 6th Floor, Dallas, Texas 75201

If Borrower was assisted by a city/state export agency, please provide the name of the agency, contact person, and telephone number.

Name:                    Address:               

Attention:       Telephone:

		
	2.
	A.        Borrower's Name and Address: The full name, address, contact person, telephone and telefax numbers of Borrower are as follows:

Name:             FuelCell Energy, Inc. Address:         3 Great Pasture Rd.
Danbury, CT  06813
Attention:       Michael Bishop,  SVP and CFO
Telephone:     203-825-6000
Telecopier:     203-825-6100

B.        Is Borrower a Small Business as stipulated by SBA guidelines?
         Yes       X    No

C.        Additionality:  Please select appropriate answer(s).

o(1.)      Borrower meets all small business criteria:
(i)        Maximum Amount is $2 million or less;
		
	(ii)
	Borrower qualifies as Small Business under SBA Guidelines;

(iii)     Borrower employs 100 people or fewer; and
(iv)      Borrower's annual revenues do not exceed $10 million.

ý(2.)      Repayment risk associated with foreign sale.

ý(3.)      Borrower's creditworthiness requires Guarantee.

o(4.)      Lender's internal lending limits reached.

o(5.)      Lender's statutory lending limits reached.

o(6.)      Other (please specify)                                                                        .

		
	ý(7.)
	Lender  has  adequately  addressed  each  of  the  requirements  of “Additionality” as set forth in the Working Capital Guaranty Manual in its internal credit memorandum.

3.         Guarantor's Name and Address: Are there Guarantors for the Loan Facility?

oYes

ýNo   If no, attach waiver letter from Ex-Im Bank and/or ownership breakdown.

The full name, address, telephone and telefax numbers of each Guarantor are as follows:
Name:                    Address:               

Attention: Telephone: Telecopier:

4.         The Items to be financed:

		
	A.
	(1.) The Items:  (Complete description of goods and services to be exported, e.g. machine tools, electronic components, logs, etc.)

SIC Code(s)/NAIC No(s):  335999   Development and manufacture of high- efficiency stationary fuel cell power plants

(2.)      Will Indirect Exports be included in the Export-Related Borrowing Base?

oYes.    If  yes,  please  indicate  which  Items  above  will  include  Indirect
Exports and affirm:

oFunds available under the Export-Related Borrowing Base derived from Indirect Exports shall at all times constitute no more than 10% of the Maximum Amount of this Loan Facility in accordance with the standard stated in Section 4.15 of the Master Guarantee Agreement; or

oFunds available under the Export-Related Borrowing Base derived from Indirect Exports might constitute more than 10% of the Maximum Amount of this Loan Facility.  Lender has obtained Ex-Im Bank's prior written consent to exceed 10% of the Maximum Amount.  Attached is a copy of Ex-Im Bank's written consent.

ýNo.

(3.)      Have you obtained an Economic Impact Certification from the Borrower covering all Items listed in 4.A.(1) in accordance with Section 4.09 of the MGA?

ýYes

oNo
B.        Are Commercial Letters of Credit or Standby Letters of Credit (other than
Warranty Letters of Credit) to be issued under this Loan Facility?

ýYes    If yes, approximately what percentage of the Loan Facility will be utilized for Commercial Letters of Credit or Standby Letters of Credit?  Up to 15%
oNo

C.        Are Warranty Letters of Credit expected to be issued under this Loan Facility?

oYes    Lender has obtained Ex-Im Bank's prior written consent for issuance of such Warranty Letters of Credit.  Attached is a copy of Ex-Im Bank's written consent.

ýNo

D.        Are Retainage Accounts Receivable to be included in the Export-Related
Borrowing Base?

oYes   Lender has obtained Ex-Im Bank's prior written consent for inclusion of each such Retainage Accounts Receivable.  Attached is a copy of Ex-Im Bank's written consent.

ýNo

		
	5.
	Maximum Amount, Advance Rates, Loan Facility Terms: A.    Maximum Amount:    $8,000,000.00

B.        Advance Rates by Categories of Primary Collateral:

		
	(1.)
	Inventory:  The Advance Rate (to be multiplied by the Export-Related Inventory Value or Export-Related Historical Inventory Value) for Collateral categorized as Eligible Export-Related Inventory shall be:

Seventy-five percent ( 75% )

		
	(2.)
	Accounts Receivable:  The Advance Rate (to be multiplied by the Export- Related Accounts Receivable Value) for Collateral categorized as Eligible Export-Related Accounts Receivable shall be:

Ninety percent ( 90% )
		
	(3.)
	Retainage Accounts Receivable:  The Advance Rate (to be multiplied by the Retainage Value) for Collateral categorized as Retainage Accounts Receivable shall be:

Zero percent ( 0% )

		
	(4.)
	Other Assets (as described in Section 6.A. below):  The Advance Rate (to be multiplied by the Other Assets Value) for Collateral categorized as Other Assets shall be:

Zero percent ( 0% )

		
	(5.)
	Overseas Accounts Receivable: The Advance Rate (to be multiplied by the Export-Related Overseas Accounts Receivable Value) for Collateral categorized  as  Eligible  Export-Related  Overseas  Accounts  Receivable shall be:

Zero percent ( 0% )

		
	(6.)
	Overseas Inventory: The Advance Rate (multiplied by the Export-Related Overseas Inventory Value) for Collateral categorized as Eligible Export- Related Overseas Inventory shall be:

Zero percent ( 0% )
		
	C.
	Type of Loan Facility and Exports supported: (1.)    Type of Loan Facility:

ýThe Loan Facility is a Revolving Loan Facility (other than a Transaction Specific Revolving Loan Facility).  (Complete subsections (2.), (3.) and (5.), and, if applicable, (6.) below.)

oThe Loan Facility is a Transaction Specific Revolving Loan Facility. (Complete subsections (3.), (4.), and (5.), and, if applicable, (6.) below.)

oThe Loan Facility is a Transaction Specific Loan Facility.  (Complete subsections (3.), (4.), and (5.), and, if applicable, (6.) below.)

		
	(2.)
	For a Revolving Loan Facility, identify the top three countries to which the Items will be exported:

Country of Export:     South Korea Country of Export:     England Country of Export:     Germany

(3.)      Estimated Total Export Sales each year to be supported by this Loan
Facility:  $ 100,000,000.00
(4.)      For a Transaction Specific Revolving Loan Facility or a Transaction
Specific Loan Facility, identify the Specific Export Order(s):

	
		
	Country of Export:
	    

	Contract Price:
	$    

	Contract Number:
	    

	Contract Date:
	    

	Parties:
	 

(5.)      Lender shall conduct field examinations:

oAt least every six (6) months starting on the date six (6) months following the Effective Date of the Loan Facility.

ýAt least every six (6) months starting 4/30/13 (specify date no later than six (6) months following the Effective Date of the Loan Facility; semi- annual field examination schedule must include Borrower’s fiscal year end date if audited financial statements will substitute for one field
examination annually).

		
	(6.)
	For Loan Facilities with a Loan Facility Term greater than one (1) year, Lender shall provide Ex-Im Bank an annual review:

oOn each Loan Facility Anniversary Date or

oAnnually starting                      (specify date no later than the first anticipated Loan Facility Anniversary Date).

6.         Security Interests:

Subject to the provisions of subsections D, E and F below in this Section 6, Lender agrees to obtain and maintain the following valid, enforceable and perfected security interests in the following Collateral, and the proceeds thereof:

A.        First priority in the following (check all that apply):

ýAll Inventory.

oAll Export-Related Inventory.

oAll Export-Related Overseas Inventory.
oAll Export-Related Inventory relating to Specific Export Order(s).

oAll Export-Related Overseas Inventory relating to Specific Export
Order(s).

ýAll Accounts Receivable.

oAll Export-Related Accounts Receivable.

oAll Export-Related Overseas Accounts Receivable.

oAll Export-Related Accounts Receivable relating to Specific Export
Order(s).

oAll Export-Related Overseas Accounts Receivable relating to Specific
Export Order(s).

ýAll General Intangibles.

oAll Export-Related General Intangibles.

oAll Other Assets.  Please specify:      

oAll Other Collateral.  Please specify:

		
	B.
	Secondary Collateral:  Any other assets of Borrower in which Lender is receiving a Lien to secure any other financial accommodations provided by Lender to such Borrower.

Please specify: Cash collateral being held at JPMC securing other facilities or derivative transactions.

		
	C.
	Guarantor Collateral:  Any assets of a Guarantor or a third party in which Lender is granted a Lien to secure any financial accommodations provided by Lender to Borrower.

Please specify:                        N/A     
D.        Permitted Liens:

(1) Liens granted to the Connecticut Development Authority pursuant to: (a) the Note in the amount of $4,000,000, the Loan Agreement, and the Security Agreement all dated April 29, 2008; (b) the Loan Agreement with the Connecticut Development Authority dated as of June 30, 2000, as amended and (c) Loan Agreement with the Connecticut Development Authority dated as of March 5,
2013.

(2) Liens granted to (i) Relational, LLC, (ii) Relational II, LLC, and(iii) Key Equipment Finance Inc. for which UCC Financing Statements have been filed prior to the date hereof, securing equipment leased or purchased by the Borrower;

(3) Liens granted or to be granted in connection with the financing of power plants to be sold by the Borrower to entities controlled by the Borrower or the Borrower’s distribution partners for projects selected by the State of Connecticut Department of  Public Utility Control (“DPUC”) for purposes of providing 43.5 megawatts, including (but not limited to) projects for generating approximately
27.3 megawatts of power which may be financed in whole or in part by a United
States Department of Energy Loan Guarantee.

(4) Liens on  raw materials which secure trade debt arising from the purchase of such raw materials and such trade debt is incurred by borrower in the ordinary course of business;

(5) Liens and all associated rights of the Department of Energy and other governmental agencies arising from so-called “march-in rights” to the technology subject to a cooperative research and development agreement.

(6) Liens in favor of POSCO Power, a Korean corporation securing Borrower's obligations under the POSCO Contract.

		
	E.
	The Liens of Lender on the Secondary Collateral shall be a first priority Lien except for the following Liens:       

F.        The Liens of Lender on the Guarantor Collateral shall be a first priority Lien
except for the following Liens:
 
N/A
G.        Are you separately collateralizing the Unguaranteed Portion10% portion of this
Loan Facility? No       X     

Yes       
 
If yes, please specify separate collateral.       
                                                                                                                        .

Note:  Lender cannot collateralize its retained 10% risk with cash, cash equivalents or marketable securities from Borrower, any Guarantor, or any of Borrower's Affiliates (as
defined in Section 5(b) of the Delegated Authority Letter Agreement) or any third party guarantors.

7.         Terms of Sale:

The terms of sale for the Items under this Loan Facility shall be typical for the industry
but in no event shall allow for payment more than 180 days following the original invoice date. The terms may include the following:

ýConfirmed irrevocable letters of credit.

ýIrrevocable letters of credit.

ýOpen account insured through Ex-Im Bank export credit insurance for comprehensive commercial and political risk.

ýOpen account insured through non Ex-Im Bank export credit insurance for comprehensive commercial and political risk.

ýCash payment received prior to shipment.

ýOpen account uninsured.

ýSight draft documents against payment (also known as "documentary collections").

oOther terms. [If checked, any such terms of sale must be fully described on an attached addendum in order for this Notice to be considered complete.]

8.         Interest Rate and Other Fees.

A.        Lender's Interest Rate:   JPMC CBFR or LIBOR + 1 1⁄2% B.        Other Fees: Letter of Credit fees if applicable

9.         Facility Fee:  Lender will submit a completed and signed Schedule A together with the
Facility Fee amount determined in accordance with the applicable section of Schedule A: A.      within ten (10) Business Days of the Effective Date;
		
	B.
	with respect to a Revolving Loan Facility (other than a Transaction Specific Revolving Loan Facility), within ten (10) Business Days of the first and second anniversaries of the Effective Date, as applicable; and/or

		
	C.
	within ten (10) Business Days of the Effective Date of an Extension of the Final Disbursement Date (such Extensions not to exceed one-hundred-twenty (120) days in the aggregate), as applicable.  Please note that Ex-Im Bank considers a Renewal to be a new Loan Facility rather than an Extension.

10.       Final Disbursement Date:  April 2, 2014.

		
	11.
	Financial Reporting Requirements: Borrower and each Guarantor shall deliver to Lender the following financial statements:

A.        Year End Financial Statements.
Within one hundred and twenty (120) days of Borrower's and each Guarantor's (other than individual Guarantor) fiscal year end or if such Person is required to submit a Form 10-K at the time of filing of such Form 10-K, the income statement, balance sheet and statement of cash flow as of such fiscal year-end including in each case all footnotes and other disclosures, which financial statements have been (check one):

ýcertified without qualification by an independent accounting firm acceptable to Lender (the "Accountants") (For Loan Facilities with a Maximum Amount of $5,000,000 or more)

oreviewed by the Accountants (For Loan Facilities with a Maximum Amount of $2,000,000 or more but less than $5,000,000)

ocompiled by the Accountants  (For Loan Facilities with a
Maximum Amount of $1,000,000 or more but less than
$2,000,000)

ointernally prepared by management of such Person in accordance with GAAP, certified as fairly presenting the financial condition of such Person as of the date thereof by an authorized officer of such Person (For Loan Facilities with a Maximum Amount of less than
$1,000,000)

B.        Quarterly Financial Statements.

Within 45 days of Borrower's and each Guarantor's (other than an individual Guarantor) fiscal quarter end or if such Person is required to submit a Form 10-Q at the time of filing of such Form 10-Q, the income statement, balance sheet and statement of cash flow as of the end of such fiscal quarter which have been internally prepared by management of such Person in accordance with GAAP, and certified as fairly presenting the financial condition of such Person as of the date thereof by an authorized officer of such Person.
		
	C.
	Individual Guarantors Financial Statements:  Once each year, a personal financial statement on a bank form or such other form generally accepted by Lender.

		
	12.
	Country Limitation Schedule:  (See Country Limitation Schedule dated January 31, 2013, attached hereto, which may be updated from time to time)

13.       See attached waiver letter dated March 28, 2013 from the Export-Import Bank of the
United States for a listing of the approved waiver items.
IN WITNESS WHEREOF, Lender has caused this instrument to be executed this 3rd day of April, 2013.

Name of Lender:
 
Receipt acknowledged by:
JPMORGAN CHASE BANK, N.A.                    EXPORT-IMPORT BANK OF THE UNITED STATES

By:        
 
By:        
(Signature)                                                                             (Signature)

Name:   Randall Mascorro                              Name:        
(Print or Type)

Title:   Vice President                                     Title:        
(Print or Type)

Address:   2200 Ross Ave., 6th Floor            Address:  811 Vermont Avenue, N.W.
Dallas, TX  75201                                        Washington, D.C.  20571
Attention:  Vice President,
Business Credit Division

	
				
	Telephone:   (214) 965-3632
	Telephone:
	(202) 565-3780

	Telefax:
	(214) 965-3671
	Telefax:
	(202) 565-3793

Name of Lender:

JPMORGAN CHASE BANK, N.A.

By:        
(Signature)

Name:  Terese Gravenhorst

Title:   Executive Director

Address:   420 West Van Buren Street, Floor 09
Chicago, IL 60606-3534

Telephone:   (312) 954-8256
Telefax:        (214) 965- 3671

Schedule A to the Loan Authorization Notice
FOR LOAN FACILITY EFFECTIVE DATES OF 9/17/12 AND AFTER
Facility Fee Schedule

Lender:   JPMorgan Chase Bank, N.A.          Guaranteed Loan Number: AP085877XA(B) Borrower(s):  FuelCell Energy, Inc.
I.         Loan Facility Type (Check one.)

ýRevolving  Loan  Facility  (other  than  Transaction  Specific  Revolving  Loan
Facility) (Loan Facility Type “R” for use in Table 1)

oTransaction Specific Loan Facility (Loan Facility Type “TS” for use in Table 1)

oTransaction Specific Revolving Loan Facility (Loan Facility Type “TSR” for use in Table 1)

		
	II.
	Loan Facility Fee Term, and Portion of Term for which the Facility Fee is due: A.    Number of months (total) in the term of the Loan Facility:  12

		
	B.
	Number of months for which Facility Fee is due:                 12 (Based on Table 1 below)

Table 1              
	
					
	

LOAN FACILITY TYPE
	

If number of
months in Part A is:
	

NUMBER OF MONTHS FOR WHICH FACILITY FEE IS DUE WITHIN 10 BUSINESS DAYS OF:

	

Effective Date
	

1st anniversary
of Effective Date
	

2nd anniversary of Effective Date

	

R
	

Up to 12 months
	

Number of months set forth in Part II.A. above (minimum 6)
	

N/A
	

N/A

	

More than 12 months, up to and including 24 months
	

12
	Number of months set forth in Part II.A. less 12
	

N/A

	

More than 24 months, up to and including 36 months
	

12
	

12
	

Number of months set forth in Part II.A. less 24

	

T, TSR
	

Any number of months
	

Number of months set forth in Part II.A. above (minimum 6)
	

N/A
	

N/A

Late fees accrue at the rate of Fifty Dollars ($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth (10th) Business Day following the Effective Date, each Loan Facility Anniversary Date, or the effective date of each Extension or amendment to the Loan Authorization Notice increasing the Maximum Amount, as applicable, up to the sixtieth (60th) calendar day after such date.

III.      Annual Facility Fee Percentage (check one):

ýThe Criteria for Reduced Facility Fee have not been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex- Im Bank’s share in Table 2).
oThe Criteria for Reduced Facility Fee have been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex-Im Bank’s share in Table 2).

Note:  For Revolving Loan Facilities (other than Transaction Specific Revolving Loan Facilities) with terms in excess of twelve (12) months, the Criteria for  the  Reduced  Facility  Fee  must  have  been  met  for  

each  year  or portion thereof for which Lender remits the Reduced Facility Fee.

Table 2                       
	
								
	

LOAN FACILITY TERM
	

MAXIMUM AMOUNT
	

STANDARD FACILITY FEE (1.75%)
	

REDUCED FACILITY FEE (1.25%)

	 
	 
	

Facility Fee
	

Ex-Im’s
Share
	

Lender
Retains
	

Facility Fee
	

Ex-Im’s
Share
	

Lender
Retains

	Up to 6 months
	First $2,000,000
	87.5 bp
	37.5 bp
	50 bp
	62.5 bp
	37.5 bp
	25 bp

	 
	Portion over $2,000,000
	87.5 bp
	50 bp
	37.5 bp
	62.5 bp
	37.5 bp
	25 bp

	More than 6 up to 12
months
	

First $2,000,000
	

175 bp pa
	

50 bp
	

125 bp pa
	

125 bp pa
	

50 bp
	

75 bp pa

	 
	Portion over $2,000,000
	175 bp pa
	100 bp pa
	75 bp pa
	125 bp pa
	75 bp pa
	50 bp pa

	More than 12 months
	First $2,000,000
	175 bp pa
	50 bp pa
	125 bp pa
	125 bp pa
	50 bp pa
	75 bp pa

	 
	Portion over $2,000,000
	175 bp pa
	100 bp pa
	75 bp pa
	125 bp pa
	75 bp pa
	50 bp pa

	 
	bp = basis point pa = per annum

IV.A.  Facility Fee Calculations following the Effective Date and each Loan Facility
Anniversary Date:

Show Facility Fee calculation in Table 3 below:

     Table 3     

	
								
	

Portion of Maximum Amount
	

X
	

Applicable “Ex- Im’s Share” from Table 2
	Pro-rate Facility Fee if/as applicable:
	

Amount of Facility Fee to remit to Ex-Im Bank

	

X
	Number of months for which Facility Fee is due (based on Table 1)
	

divided by 12 =

	Loan Facility Term up to 6 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp
	

FLAT FEE
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

             bp
	

FLAT FEE
	

= $

	 

	Loan Facility Term more than
6 up to 12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp
	

FLAT FEE
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

           bp (pa)
	

X
	 
	

/ 12
	

= $

	 

	Loan Facility Term more than
12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$2,000,000
	

X
	

     50      bp (pa)
	

X
	12
	

/ 12
	

= $10,000.00

	Portion over
$2,000,000 =
	

$6,000,000
	

X
	

     100   bp (pa)
	

X
	12
	

/ 12
	

= $60,000.00

	Lender shall pay this Facility Fee to Ex-Im Bank within ten (10) Business Days of the
[Effective Date] [1st anniversary of Effective Date] [2nd anniversary of Effective Date]                = $70,000.00

	Lender shall pay to Ex-Im Bank any late fees which accrue at the rate of Fifty Dollars
($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth
(10th) Business Day following the Effective Date, and each Loan Facility Anniversary Date,       = $
as applicable, up to the sixtieth (60th) calendar day after such date.

	Total (Facility Fee + any applicable late fees)   = $70,000.00

	 

B.        Facility Fee Calculations for an Extension:

oAs of the date of this requested Extension, the Criteria for Reduced Facility Fee have not been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex-Im Bank’s share in Table 2).
oAs of the date of this requested Extension, the Criteria for Reduced Facility Fee have been met in accordance with Exhibit I to the Master Guarantee Agreement. (Use to determine applicable Ex-Im Bank’s share in Table 2).
Show Facility Fee calculation in Table 4 below:

     Table 4     

	
								
	

Portion of Maximum Amount
	

X
	

Applicable “Ex- Im’s Share” from Table 2
	Pro-rate Facility Fee if/as applicable:
	

Amount of Facility Fee to remit to Ex-Im Bank

	

X
	Number of days for which Facility Fee is due (based on Table 1)
	

divided by 360 =

	Loan Facility Term plus
Extension up to 6 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	 
	 
	 
	 
	

NOT APPLICABLE

	Portion over
$2,000,000 =
	 
	 
	 
	 
	

NOT APPLICABLE

	 

	Loan Facility Term plus
Extension more than
6 up to 12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	 
	 
	 
	

NOT APPLICABLE

	Portion over
$2,000,000 =
	

$
	

X
	

             bp (pa)
	

X
	 
	

/ 360
	

= $

	 

	Loan Facility Term plus
Extension more than
12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp (pa)
	

X
	 
	

/ 360
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

           bp (pa)
	

X
	 
	

/ 360
	

= $

	Lender shall pay this Facility Fee to Ex-Im Bank within ten (10) Business Days of the
Extension.                                                                                                                                         = $

	Lender shall pay to Ex-Im Bank any late fees which accrue at the rate of Fifty Dollars
($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth
(10th) Business Day following the Extension, up to the sixtieth (60th) calendar day after such      = $
date.

	Total (Facility Fee + any applicable late fees)   = $

	 

C.        Facility Fee Calculations for an Increase in the Maximum Amount:

For increases in the Maximum Amount, the Facility Fee shall be calculated in accordance with Section 3.01(a)(iv) of the Master Guarantee Agreement.  Ex-Im Bank’s portion of such Facility Fee shall be between 25 and 75 basis points based on the amount of the increase to the Maximum Amount.

C O U N T R Y   L I M I T A T I O N

S C H E D U L E

AS OF JANUARY 31, 2013

EBD-G-02                                                                                                                  January 2013

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION SCHEDULE
Special Conditions Pertaining to
Ex-Im Bank Loan & Guarantee Programs, Export Credit Insurance,
and Working Capital Guarantee Program

EFFECTIVE January 31, 2013

It is agreed that pursuant to the provisions of Ex-Im Bank loans and guarantees and Ex-Im Bank export credit insurance policies, the country limitation schedule has been amended effective January 31, 2013. This revision supersedes the December 27, 2012 Country Limitation Schedule and any amendments thereto.

Please note that Ex-Im Bank only sends updates to the Country Limitation Schedule via e-mail. Policyholders must register a http://www.exim.gov/lists/subscribe.cfm, or use the link from Ex-Im Bank’s home (www.exim.gov) under “E-Mail Subscriptions,” to receive updates to the CLS via e-mail along with other Ex- Im Bank publications such as the Exporter and Africa newsletters.

GENERAL CONDITIONS

Exceptions to any condition or limitation contained herein must be obtained in writing from Ex-Im Bank.

Ex-Im Bank reserves the right to set additional conditions for any particular buyer or issuing bank including the right to set a different percentage of coverage. Ex-Im Bank also reserves the right to reject any particular application.

The sector where the risk lies (public or private) and the country of the obligor or guarantor, if there is one, will generally be used for determining appropriate country limitations and fees.

The following insurance policies are affected by this country limitation schedule. Please note that Short-Term
Insurance Policies are governed by the columns titled “Up to one year”:

Short-Term Insurance Policies: EBD, ELC, ENB, ENV, ESC, ESM(ST), ESS, ETM(ST), EUS, FB, FB-E, FV, ESP, ESSP, FP, MCP(ST).

Medium-Term: All medium-term and lease-policy types, ESM, ETM, MCP, MRP, MSC, MSC-E, MTR, MTR-E.

	
			
	

Effective Date of
	

January 31, 2013
	

No. CLS-01/13

	This Endorsement:
	12:01 A.M. E.S.T.
	 

- 2 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Afghanistan
	X
	X
	X
	 
	X
	X
	X
	10,13

	Albania
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Algeria
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Andorra
	 
	 
	 
	 
	 
	 
	 
	 

	Angola
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Anguilla
	 
	 
	 
	 
	 
	 
	 
	1

	Antigua and Barbuda
	X
	X
	X
	 
	 
	 
	 
	1, 4, 13

	Argentina
	X
	X
	X
	 
	 
	 
	X
	1, 13

	Armenia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 10

	Aruba
	 
	 
	 
	 
	 
	 
	 
	1, 9

	Australia
	 
	 
	 
	 
	 
	 
	 
	 

	Austria
	 
	 
	 
	 
	 
	 
	 
	 

	Azerbaijan
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Bahamas
	 
	 
	 
	 
	 
	 
	 
	 

	Bahrain
	 
	 
	 
	 
	 
	 
	 
	 

	Bangladesh
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Barbados
	 
	 
	 
	 
	 
	 
	 
	1

	Belarus
	X
	X
	X
	 
	X
	X
	X
	13

	Belgium
	 
	 
	 
	 
	 
	 
	 
	 

	Belize
	 
	 
	 
	 
	 
	 
	 
	6a

	Benin
	 
	 
	 
	 
	 
	 
	X
	1, 5, 13

	Bermuda
	 
	 
	 
	 
	 
	 
	 
	 

	Bhutan
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Bolivia
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	Bosnia-Herzegovina
	 
	 
	X
	 
	 
	 
	X
	1, 4, 13

	Botswana
	 
	 
	 
	 
	 
	 
	 
	 

	
									
	Brazil
	 
	 
	 
	 
	 
	 
	 
	 

	Brunei
	 
	 
	 
	 
	 
	 
	 
	 

	Bulgaria
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Burkina Faso
	 
	 
	X
	 
	 
	 
	 
	1, 10, 13

	Burma
	X
	X
	X
	 
	X
	X
	X
	7

	Burundi
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Cambodia
	X
	X
	X
	 
	 
	 
	X
	1, 4, 13

	Cameroon
	 
	 
	 
	 
	 
	 
	 
	4, 5, 6a

	Canada
	 
	 
	 
	 
	 
	 
	 
	 

	Cape Verde
	 
	 
	 
	 
	 
	 
	 
	10

	Cayman Is.
	 
	 
	 
	 
	 
	 
	 
	 

	Central African Republic
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Chad
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Chile
	 
	 
	 
	 
	 
	 
	 
	 

	China
	 
	 
	 
	 
	 
	 
	 
	2

	Colombia
	 
	 
	 
	 
	 
	 
	 
	 

*            Total Term is from the date of authorization until final repayment.
- 3 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Comoros
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Congo
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Congo, Democratic Rep.
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Cook Islands
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Costa Rica
	 
	 
	 
	 
	 
	 
	 
	6b

	Cote d’Ivoire
	 
	X
	X
	 
	 
	 
	X
	1, 11a, 13

	Croatia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Cuba
	X
	X
	X
	 
	X
	X
	X
	7

	
									
	Curacao
	 
	 
	 
	 
	 
	 
	 
	 

	Cyprus
	 
	 
	 
	 
	 
	 
	 
	 

	Czech Republic
	 
	 
	 
	 
	 
	 
	 
	 

	Denmark
	 
	 
	 
	 
	 
	 
	 
	 

	Djibouti
	 
	X
	X
	 
	 
	 
	X
	1, 4, 11a, 13

	Dominica
	 
	 
	 
	 
	 
	 
	 
	1

	Dominican Republic
	 
	 
	 
	 
	 
	 
	 
	3, 6a

	East Timor
	 
	 
	X
	 
	X
	X
	X
	5, 13

	Ecuador
	 
	 
	X
	 
	X
	X
	X
	5, 13

	Egypt
	 
	 
	 
	 
	 
	 
	 
	1, 4

	El Salvador
	 
	 
	 
	 
	 
	 
	 
	 

	Equatorial Guinea
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	Eritrea
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Estonia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6b

	Ethiopia
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	Fiji
	 
	 
	 
	 
	 
	 
	 
	1,4

	Finland
	 
	 
	 
	 
	 
	 
	 
	 

	France
	 
	 
	 
	 
	 
	 
	 
	 

	Gabon
	 
	 
	 
	 
	 
	 
	 
	5, 6a, 10

	Gambia
	 
	X
	X
	 
	 
	 
	X
	10, 11a, 13

	Georgia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Germany
	 
	 
	 
	 
	 
	 
	 
	 

	Ghana
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5, 10

	Greece
	 
	 
	 
	 
	 
	 
	 
	 

	Grenada
	 
	 
	X
	 
	 
	 
	 
	1, 5, 13

	Guatemala
	 
	 
	 
	 
	 
	 
	 
	6b

	Guinea
	X
	X
	X
	 
	X
	X
	X
	10, 13

	Guinea-Bissau
	X
	X
	X
	 
	X
	X
	X
	13

	Guyana
	 
	 
	X
	 
	 
	 
	X
	1, 13

	Haiti
	X
	X
	X
	 
	X
	X
	X
	10,13

	Honduras
	 
	 
	 
	 
	 
	 
	 
	 

	Hong Kong
	 
	 
	 
	 
	 
	 
	 
	 

	Hungary
	 
	 
	 
	 
	 
	 
	 
	 

	Iceland
	 
	 
	 
	 
	 
	 
	 
	 

	India
	 
	 
	 
	 
	 
	 
	 
	 

*            Total Term is from the date of authorization until final repayment.
- 4 -
	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	
									
	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Indonesia
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Iran
	X
	X
	X
	 
	X
	X
	X
	7

	Iraq
	 
	 
	X
	 
	 
	 
	X
	1, 3, 5, 10, 13, 14

	Ireland
	 
	 
	 
	 
	 
	 
	 
	 

	Israel
	 
	 
	 
	 
	 
	 
	 
	 

	Italy
	 
	 
	 
	 
	 
	 
	 
	 

	Jamaica
	 
	 
	 
	 
	 
	 
	 
	6a

	Japan
	 
	 
	 
	 
	 
	 
	 
	 

	Jordan
	 
	 
	 
	 
	 
	 
	 
	6a

	Kazakhstan
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Kenya
	 
	 
	 
	 
	 
	 
	 
	1, 5

	Kiribati
	 
	 
	 
	 
	 
	 
	 
	1

	Korea, North
	X
	X
	X
	 
	X
	X
	X
	7

	Korea, South
	 
	 
	 
	 
	 
	 
	 
	 

	Kosovo
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Kuwait
	 
	 
	 
	 
	 
	 
	 
	 

	Kyrgyzstan
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Laos
	 
	 
	X
	 
	X
	X
	X
	1, 5, 13

	Latvia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Lebanon
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Lesotho
	 
	 
	 
	 
	 
	 
	 
	6b

	Liberia
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Libya
	 
	 
	 
	 
	 
	 
	X
	1, 3, 4, 5, 12a,
12b, 13

	Liechtenstein
	 
	 
	 
	 
	 
	 
	 
	 

	Lithuania
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Luxembourg
	 
	 
	 
	 
	 
	 
	 
	 

	Macau
	 
	 
	 
	 
	 
	 
	 
	1

	Macedonia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Madagascar
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Malawi
	 
	 
	X
	 
	 
	 
	 
	1, 4, 5, 10, 13

	Malaysia
	 
	 
	 
	 
	 
	 
	 
	6b

	Maldives
	 
	 
	 
	 
	 
	 
	 
	1

	Mali
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	Malta
	 
	 
	 
	 
	 
	 
	 
	 

	Marshall Islands
	 
	 
	 
	 
	 
	 
	 
	1

	Mauritania
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Mauritius
	 
	 
	 
	 
	 
	 
	 
	 

	Mexico
	 
	 
	 
	 
	 
	 
	 
	 

	Micronesia
	 
	 
	 
	 
	 
	 
	 
	1

	Moldova
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Monaco
	 
	 
	 
	 
	 
	 
	 
	 

	
									
	Mongolia
	 
	 
	 
	 
	 
	 
	 
	1, 4

*            Total Term is from the date of authorization until final repayment.

- 5 -

	
									
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Montenegro
	 
	 
	 
	 
	 
	 
	 
	1, 3, 5

	Montserrat
	 
	 
	 
	 
	 
	 
	 
	1

	Morocco
	 
	 
	 
	 
	 
	 
	 
	6b

	Mozambique
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5, 10

	Namibia
	 
	 
	 
	 
	 
	 
	 
	1

	Nauru
	X
	X
	X
	 
	X
	X
	X
	13

	Nepal
	 
	 
	X
	 
	X
	X
	X
	1, 13

	Netherlands
	 
	 
	 
	 
	 
	 
	 
	 

	New Zealand
	 
	 
	 
	 
	 
	 
	 
	 

	Nicaragua
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	Niger
	 
	X
	X
	 
	 
	 
	X
	1, 11a, 13

	Nigeria
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Norway
	 
	 
	 
	 
	 
	 
	 
	 

	Oman
	 
	 
	 
	 
	 
	 
	 
	 

	Pakistan
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	
									
	Palau
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Panama
	 
	 
	 
	 
	 
	 
	 
	 

	Papua New Guinea
	 
	 
	 
	 
	 
	 
	 
	1

	Paraguay
	 
	 
	 
	 
	 
	 
	 
	6b

	Peru
	 
	 
	 
	 
	 
	 
	 
	1

	Philippines
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Poland
	 
	 
	 
	 
	 
	 
	 
	 

	Portugal
	 
	 
	 
	 
	 
	 
	 
	 

	Qatar
	 
	 
	 
	 
	 
	 
	 
	 

	Romania
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Russia
	 
	 
	 
	 
	 
	 
	 
	1

	Rwanda
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	St. Kitts and Nevis
	 
	 
	 
	 
	 
	 
	 
	1

	St. Lucia
	 
	 
	 
	 
	 
	 
	 
	1

	St. Vincent and Grenadines
	 
	 
	 
	 
	 
	 
	 
	1

	Samoa
	 
	 
	 
	 
	 
	 
	 
	1

	Sao Tome and Principe
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Saudi Arabia
	 
	 
	 
	 
	 
	 
	 
	 

	Senegal
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Serbia
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Seychelles
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Sierra Leone
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Singapore
	 
	 
	 
	 
	 
	 
	 
	 

	Sint Maarten
	 
	 
	 
	 
	 
	 
	 
	 

	Slovak  Republic
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Slovenia
	 
	 
	 
	 
	 
	 
	 
	6a

	Solomon Islands
	 
	 
	 
	 
	 
	 
	 
	1

	Somalia
	X
	X
	X
	 
	X
	X
	X
	13

*            Total Term is from the date of authorization until final repayment.- 6 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	South Africa
	 
	 
	 
	 
	 
	 
	 
	 

	Spain
	 
	 
	 
	 
	 
	 
	 
	 

	Sri Lanka
	 
	 
	 
	 
	 
	 
	 
	1

	Sudan
	X
	X
	X
	 
	X
	X
	X
	7

	Suriname
	X
	X
	X
	 
	 
	 
	X
	13

	Swaziland
	 
	 
	 
	 
	 
	 
	 
	 

	Sweden
	 
	 
	 
	 
	 
	 
	 
	 

	Switzerland
	 
	 
	 
	 
	 
	 
	 
	 

	Syria
	X
	X
	X
	 
	X
	X
	X
	7

	Taiwan
	 
	 
	 
	 
	 
	 
	 
	 

	Tajikistan
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	Tanzania
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Thailand
	 
	 
	 
	 
	 
	 
	 
	 

	Togo
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 13

	Tonga
	 
	 
	 
	 
	 
	 
	 
	1

	Trinidad and Tobago
	 
	 
	 
	 
	 
	 
	 
	6a

	Tunisia
	 
	 
	 
	 
	 
	 
	 
	 

	Turkey
	 
	 
	 
	 
	 
	 
	 
	 

	Turkmenistan
	 
	 
	 
	 
	X
	X
	X
	1, 3, 5, 13

	Turks and Caicos
	 
	 
	 
	 
	 
	 
	 
	 

	Tuvalu
	 
	 
	 
	 
	 
	 
	 
	3

	Uganda
	 
	 
	 
	 
	 
	 
	 
	1, 5, 10

	Ukraine
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	United Arab Emirates
	 
	 
	 
	 
	 
	 
	 
	8

	United Kingdom
	 
	 
	 
	 
	 
	 
	 
	 

	Uruguay
	 
	 
	 
	 
	 
	 
	 
	6b

	Uzbekistan
	 
	 
	 
	 
	 
	 
	X
	1, 3, 4, 5, 13

	Vanuatu
	 
	 
	 
	 
	 
	 
	 
	1

	Vatican City
	 
	 
	 
	 
	 
	 
	 
	 

	Venezuela
	X
	X
	X
	 
	X
	X
	X
	13

	Vietnam
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Virgin Islands (British)
	 
	 
	 
	 
	 
	 
	 
	 

	Yemen
	X
	X
	X
	 
	X
	X
	X
	13

	Zambia
	 
	 
	X
	 
	 
	 
	X
	1, 5, 13

	Zimbabwe
	X
	X
	X
	 
	X
	X
	X
	13

*            Total Term is from the date of authorization until final repayment.

Notes:

		
	1.
	Discretionary Credit Limits under Short-Term Insurance Policies are withdrawn. Cover not available unless specified in a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or a Country Limits of Liability endorsement.

		
	2.
	For sovereign transactions in the People’s Republic of China (“China”), Ex-Im Bank will typically require an indication of Chinese government support in the form of a “Notice of MOF Guarantee” as defined in the Framework Agreement, dated January 24, 2005 between the Ministry of Finance of China and Ex-Im Bank.

For public sector nonsovereign and private sector transactions under medium- and long-term programs, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial information sufficient to enable Ex-Im Bank to reach a credit conclusion.

Under short-term insurance policies for public sector nonsovereign transactions, the use of Discretionary Credit Limits and Country Limits of Liability typically requires the obligation of one of the following: the Bank of China, the China Development Bank, the China Construction Bank, the Industrial and Commercial Bank of China, or the Bank of Communications. For private sector transactions, Discretionary Credit Limits are not available, and cover is not available unless specified in a Special Buyer Credit Limit endorsement or an Issuing Bank Credit Limit endorsement.

Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank referenced in the immediately preceding paragraph, or by a bank pre-approved by Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

		
	3.
	Prior to accepting an application for a preliminary or final commitment for a public sector transaction, or for any insurance or WCGP coverage for a public sector transaction, Ex-Im Bank will require an indication of host government support for the application.  Contact Ex-Im Bank for more detailed information on specific markets.

		
	4.
	Ex-Im Bank cover/support for private sector transactions is typically limited to transactions with a commercial bank as obligor or guarantor.  Coverage under the WCGP for private sector transactions requires that the transaction be supported by an irrevocable Letter of Credit.   Ex- Im Bank will consider transactions without a bank undertaking on a case-by-case basis.  As conditions pursuant to which we may consider non-bank transactions vary in markets subject to this note, please contact the Credit Policy Division for further information.

		
	5.
	Ex-Im Bank cover/support for public sector transactions is typically limited to transactions which commit the full faith and credit of the government.

6.         Under Short-Term Insurance Policies, coverage under Discretionary Credit Limits and Country Limits of Liability shall be the lesser of the limits authorized in the policy or:

                a. $50,000

                b. $100,000

Higher limits will be considered upon application for a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or a Country Limits of Liability endorsement.

7.         Support is legally prohibited.

8.         Public sector transactions in Sharjah, Fujairah, Ras Al Khaimah, Umm Al Qaywayn, and
Ajman require the guarantee of the federal government of the United Arab Emirates.  Coverage under the WCGP for public sector transactions for the above may be considered if supported
by an irrevocable Letter of Credit.

		
	9.
	Sovereign transactions with total term in excess of one (1) year require the Government of Aruba as the borrower.  For the WCGP, a transaction may also be considered eligible if it is supported by an irrevocable Letter of Credit.

		
	10.
	When open for cover, medium- and long-term public sector transactions are subject to Ministry of Finance notification to Ex-Im Bank that the transaction is of the highest priority and would conform with IMF program limits on non-concessional debt.

11a.     Public sector risk cover is available under Ex-Im Bank’s Short Term Africa Initiative.
Discretionary Credit Limits are withdrawn.  Transaction structure and additional information requirements will be determined on a case-by-case basis.  Public sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

b.      Private sector risk cover is available under Ex-Im Bank’s Short Term Africa Initiative.
Discretionary Credit Limits are withdrawn.  Transaction structure and additional information requirements will be determined on a case-by-case basis. Private sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

		
	12a.
	As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the public sector.  Coverage under the WCGP for public sector transactions is currently not available.

		
	b.
	As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the private sector.  Coverage under the WCGP for private sector transactions is currently not available.

		
	13.
	Where the CLS indicates support is not available, Ex-Im Bank can still consider financing arrangements that eliminate or externalize country risks.  Potentially acceptable transactions include structured transactions that earn revenues offshore in a country with no CLS restrictions and are held in a bank or trust account acceptable to Ex-Im Bank; third-party support from creditworthy entities in countries with no CLS restriction; and asset-backed lease and financing structures involving equipment such as aircraft.

In addition, coverage under the WCGP may be available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank, and/or due from a Buyer, located in a country where Ex-Im Bank is open without restrictions for short-term transactions.

		
	14.
	For private sector transactions, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial information sufficient to enable Ex-Im to reach a credit conclusion.  Financial statements provided in support of the transaction should be audited by an affiliate of an international accounting firm and prepared in accordance with International Financial Reporting Standards (IFRS).

Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank acceptable to Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

INFORMATION SUPPLEMENT ON MEDIUM- AND LONG-TERM PROGRAMS

“Open for Cover” versus “Off-Cover.”  The attached Country Limitation Schedule indicates where Ex-Im Bank is “open for cover” and where Ex-Im Bank is “off-cover.” The Schedule is organized along three dimensions:  the country where the risk lies, sector (public sector or private sector), and term of total exposure (including both disbursement period and repayment term).  Ex-Im Bank defines “public sector” as including those obligors or guarantors which are at least 50% owned, directly or indirectly, by the government. Where the CLS presents an X mark, Ex-Im Bank is “off-cover,” and is therefore not willing to consider approval of routine transactions.  These “off-cover” determinations are due to economic and/or political risks associated with the country.

Where Ex-Im Bank is Open for Cover.  The “open for cover” designation refers to the possibility, rather than the certainty, of Ex-Im Bank support in particular cases.  Proposed obligors, guarantors, and transaction structures under medium- and long-term programs are all subject to case-by-case Ex-Im Bank approval.  Approval depends on the
case-by-case application of Ex-Im Bank policies, particularly Ex-Im Bank’s determination of reasonable assurance of repayment.  The following paragraphs provide very general guidance to the application of policies in markets where
Ex-Im Bank is on-cover.

Ÿ Identification of Obligor or Guarantor. Ex-Im Bank will approve a final commitment, a preliminary commitment (PC), or a medium-term insurance policy or commitment (MTIP or MTIC), only if a specific obligor or guarantor has been identified. Ex-Im Bank may approve an indicative letter of interest (LI) for a proposed transaction, subject to the condition that an obligor or guarantor is identified at the time the LI is converted to a final commitment, PC, MTIP, or MTIC; and Ex-Im Bank can accept the credit risk of the proposed obligor or guarantor.

Ÿ Information Requirements regarding Obligors or Guarantors.  Ex-Im Bank requires that obligors or guarantors offer “reasonable assurance of repayment.”  To process applications for final commitments, PCs, MTIPs, and MTICs, Ex-Im Bank will first require information on proposed obligors and guarantors.  Such information includes financial statements and credit references.  Engineering data is required for long-term transactions. Generally, Ex-Im Bank will require more detailed information regarding obligors or guarantors when processing relatively large transactions, or transactions with obligors or guarantors with which Ex-Im Bank has had no favorable direct credit experience.  Ex-Im Bank’s application form and program literature specify the Bank’s standard information requirements.

Ÿ Sovereign Guarantees for Public Sector Buyers or Obligors.  For cases involving proposed public sector buyers or obligors which do not have significant independent sources of revenue outside the central government budget and which do not have independently audited financial statements, Ex-Im Bank will routinely require a sovereign guarantee.

Ÿ Prior Evidence of Host Government Willingness to Provide Sovereign Guarantee in Some Countries.  In some countries, Ex-Im Bank requires applications for a final commitment for a medium- or long-term loan or guarantee, or for medium-term insurance, to be accompanied by prior evidence of the host government=s willingness to provide a sovereign guarantee.

ŸTemporary Suspension of Cover.  In countries where the CLS indicates that Ex-Im Bank is “open for cover,” Ex-Im Bank may, under certain circumstances, temporarily suspend cover.  This is most likely to be the case for public sector obligors and guarantors only, but may involve all obligors and guarantors.  In such an event, Ex-Im Bank will advise applicants as quickly as possible.

Ÿ Large Transactions in Smaller Markets.  Relatively large transactions in smaller economies, even when sovereign guaranteed, will be subject to special Ex-Im Bank review.  Ex-Im Bank will review the 

potential macroeconomic impacts of the transaction, in terms of higher debt burden and debt repayment capacity.

ŸPrivate Companies.  Ex-Im Bank will accept the direct credit risks of private buyers, if available information suggests that these buyers offer a “reasonable assurance of repayment.”  For closely held companies, Ex-Im Bank may require financial information from owners.  For holding companies, Ex-Im Bank may require financial information on operating components, and may require their counter-guarantee.

Ÿ Commercial Bank Guarantees.   Ex-Im Bank may require the guarantees of acceptable commercial banks in the event that information available to Ex-Im Bank on proposed private buyers suggests that these buyers by themselves do not offer a “reasonable assurance of repayment.”

ŸLimited-Recourse Projects.  Ex-Im Bank will consider limited-recourse project finance structures (those without full recourse to an acceptable, established obligor or guarantor), but only after a comprehensive review of project features.  These features shall include the financial commitment of the project’s equity shareholders over the life of the proposed Ex-Im Bank commitment; the experience and capacity of project participants, including suppliers and offtakers; project cash flow coverage of foreign currency debt service; and security structures, including hard currency external payments arrangements.  Ex-Im Bank will review only well- developed proposals, and will require project sponsors to fund review of project proposals by consultants retained by the Bank.  Significant changes to proposed structures may be required.

Ÿ Political-Only Cover. Ex-Im Bank’s standard guarantee and insurance cover is “comprehensive,” under which Ex-Im Bank will pay claims resulting from both commercial and political perils.  For private borrowers, Ex-Im Bank also offers a narrower form of coverage,  under “political-only” cover.  Ex-Im Bank’s guarantee agreements and insurance policies describe in detail and/or define the specific risks which are subject to this form of coverage.

The following is intended as a summary:  For long-term transactions, Ex-Im Bank covers default arising from four “core” perils:  transfer risk, expropriation, U.S. export license risk and political violence.  Transfer risk involves borrowers’ inability to acquire foreign exchange through legal foreign exchange markets. Expropriation involves the government’s confiscation of assets or ownership, or arbitrary or discriminatory intervention in business operations.  U.S. export license risk involves the cancellation or non-renewal of a U.S. export license or imposition of certain restrictions on such license after shipment.  Political violence involves war, revolution, insurrection, and other such acts.  Under medium-term insurance policies, Ex-Im Bank also covers defaults arising from other defined risks.

Suppliers and/or lenders choosing political-only cover must be prepared to assume broad commercial risks associated with the borrower’s capacity.  Ex-Im Bank’s political-only cover does not cover defaults arising
from the borrower’s capacity to withstand domestic or international commercial market disruptions, or currency
devaluation or depreciation.  If suppliers and/or lenders are unable to assume these and other commercial risks, then Ex-Im Bank comprehensive cover would be a more appropriate form of coverage.

Political-only cover is offered only for private buyers or borrowers, those which are not subject to the administration of government authorities, and for which it is possible to distinguish between commercial perils and political risk perils.  Political-only cover is not available for guaranteed lenders that are majority-owned or controlled by the host country government.  Political-only cover is the only form of coverage available from
Ex-Im Bank for borrowers which are effectively controlled by suppliers and/or lenders participating in transactions. Political-only cover is available only in those countries where Ex-Im Bank is “open for cover” for private sector risk.

Where Ex-Im Bank is Off Cover for Country Credit Reasons.  Ex-Im Bank will not consider routine transactions in countries and sectors (public or private) where the country limitation schedule indicates that the Bank is off-cover (where there is an X).  However, four special categories of transactions may be eligible for

Ex-Im Bank support, under restrictive conditions, subject to additional special review:

		
	Ÿ
	Borrowers on International Capital Markets.  Individual borrowers (either public sector or private sector) with a strong record of independent access or those borrowers which in Ex-Im Bank’s opinion could have access to private international capital markets or other international sources of funds, absent external (including sovereign) guarantees.  The fee grade assigned, and the extent of Ex-Im Bank support, will take into account information related to the borrower’s financings and ratings.  For Ex-Im Bank to consider such borrowers, information on the borrower’s international borrowings for at least the last six months must accompany the application.  For each traded debt security, the required information includes the maturity and coupon, credit ratings (if any), and recent yield data.  For syndicated loans, the required information includes interest rates, arranging fees, maturity profile, amounts borrowed, and names of arranging and key participating banks.

		
	Ÿ
	Insulated Project Finance Structures.  Ex-Im Bank’s approval in “off-cover” markets/sectors of limited- recourse structures depends on the establishment of structures which do not require the financial or operating commitments of host government agencies and which are effectively insulated from government involvement. Furthermore, these structures must involve the channeling of project foreign exchange earnings through offshore payments and escrow mechanisms.  In some country environments, the only acceptable limited- recourse structures may be “enclave” projects which are almost completely insulated from the broader country environment.  The fee grade assigned, and the extent of Ex-Im Bank support, will take into account project structure and other conditions.

		
	Ÿ
	Secured Long-Range Aircraft Leases.  Ex-Im Bank approval of asset-secured long-range aircraft lease transactions requires that the airline’s country of registry become a signatory to international conventions protecting aircraft property rights. Ex-Im Bank approval for aircraft transactions in off-cover markets is more likely for privately owned airlines with established operating records. Depending on the nature of transaction participants and structures, Ex-Im Bank may also require offshore payments and escrow mechanisms, or may provide a reduced percentage of cover.  Aircraft transactions are subject to special fees and covenants.

Ÿ Acceptable Borrower Outside the Country. Support may be available if an acceptable financial institution
(e.g., commercial or multinational bank) outside of the country acts as the obligor.

It should be noted that these exceptions do not apply in countries where Ex-Im Bank is legally prohibited from operating.

EXPORT-IMPORT BANK
OF THE UNITED STATES

March  28, 2013

Randall  Mascorro
Vice President
J P Morgan  Chase  Bank,  N.A. Global  Trade  Services
Mail  Code  TXl-2805
2200  Ross  A venue,  6th  Floor
Dallas,  Texas  75201

		
	Re:
	Working   Capital  Guarantee   No.:   AP085877XA(B) Delegated   Authority   Letter  Agreement:   TX-DA-OS-OIO Borrower:   FuelCelJ  Energy,   Inc.  ("FCE"  or "Borrower) Revolving   Loan  Facility:   $8.0  million

Dear  Mr.  Mascorro:

Thank  you  for letter  of March   18,2013   regarding   the renewal  of the above-referenced    Loan Facility   and  Borrower.    As an accommodation    to the Borrower   and  based  upon  the information provided,   Ex-Im  Bank  hereby  consents   to the following:

Notwithstanding    Section   6 (a) "Minimum   Credit  Criteria  and Other  Requirements"    of the Delegated   Authority   Letter  Agreement,   Ex-Im  Bank  agrees  to waive  the requirement   for the Borrower   to compare  favorably   with  the lower  quartile  of its industry   (RMA  Statement   Studies) for at least 4 of the 7 specified   financial   ratios  for the most  recent  fiscal  year end.   Ex-Im  Bank acknowledges    the Borrower   met 2 of the 7 required  ratios  based  on FYE  10/31/12  Audited financial   statements.    Ex-Im  Bank  is granting  this  waiver  due to  the  fact  that  the Borrower,   which is a public  company,   has been  successful   at consistently   raising  cash.  The  Company   raised  $64 million  in proceeds   from  sale  of common   stock  in FY 2012  compared   to $33  million  in FY 2011.

The  Primary   Collateral   for the Loan  Facility  will  include  Export-Related    Accounts   Receivable, Export-Related    Inventory,   Export-Related    General   Intangibles,   domestic   accounts   receivable, domestic   inventory   and  domestic   general  intangibles.   Furthermore,    with  respect  to patents, trademarks,   and related  general   intangibles,   Ex-Im  Bank  acknowledges    that  the Lender  shall  rely upon  a general  UCC  blanket   filing.  Notwithstanding    Section  4.02  (b)(ii)  of the Master  Guarantee Agreement   concerning   the Primary   Collateral  requirements   for  a  Revolving   Loan  Facility,   Ex- Im Bank  will  allow  the $13.7  million  cash  collateral   that secures  the domestic   facilities  to remain as Secondary   Collateral,   and  not be considered   Other  Collateral.    Ex-Im  Bank  understands   that there  is $14.2  million  in committed   indebtedness   other  than the Ex-Im  Bank  line that  needs  the collateral   coverage   from  this  cash.

811 VERMONT     AVRNUF.,    N.w. WASHINGTON,       D.c. 20571

Ex-Im  Bank  understands    that  the Borrower  has  liens and  likely  future  liens  to be described  in the Loan  Authorization    Notice   as Permitted   Liens  granted  in favor  of lessors  and debtors  for specific manufacturing    equipment   and  leased  equipment.   Notwithstanding     Section   4.02  (b) and (c) of the Mater  Guarantee   Agreement,    Ex-Irn  Bank  will allow  this collateral   that secures  the non-Ex-Im Bank  Guaranteed   debt  to be excluded   from  Secondary   Collateral,   Other  Assets  and Other Collateral   as there  is approximately    $4.0  million  in committed   indebtedness    other  than  the Ex-Im line  that requires   the collateral   coverage   from  these  assets.  Ex-Im  Bank  understands   that FCE entered  into  a 10-year  loan  agreement   with the Connecticut   Development    Authority   to finance equipment   purchases   associated   with  manufacturing   capacity   expansion   allowing  for a maximum borrowing   of $4MM.  The  Connecticut   Development   Authority   and  the State  of Connecticut Department   of Public  Utility  Control  have provided   financing   to the Company   and both  holds liens  against  certain  equipment    and  power  plants.

Ex-Im  Bank  understands   that Fuel  Cell  has been  awarded   a $69  million  contract  with Dominion to develop  a 15 megawatt   fuel  cell  park  in Bridgeport,   Connecticut.   Additionally    Dominion   will pay  Fuel Cell  $68  million   over  the next  15 years  under  a long  term  service  contract.  Fuel  Cell  is in the process  of finalizing   a new $5.8  million  long term  loan,  and  a $1.5  million  grant  from  the State  of Connecticut's     Clean  Energy   and Finance  Authority   for this project.  The  term  loan  will be secured  with  a first  priority  security  interest  in all future  project  cash  flows  limited  to those generated   specifically    by the Bridgeport   Power  Plant  project  and  its rights  to receive  project funds  that  will  be escrowed.    Notwithstanding    Section  2.22(d)  of the Borrower   Agreement,   Ex- Im Bank  will  allow  the creation   of lien on the collateral   limited  to the future  cash  flows  specific to the Bridgeport   project.

Notwithstanding    Section   4.02(b)(i),  "Primary   Collateral",   of the Master   Guarantee   Agreement, Ex-Im  Bank  agrees  to allow  the Department   of Energy  (DoE)  to have  certain  rights  in specific patents  held  by FCE.   Ex-Im  Bank  understands   that under  an arrangement    agreed  to by the Borrower  and the DoE  Energy,   it has granted  specific  intellectual   property  rights  related  to the technology   granted  to the DoE  under  research  and development    agreements.   FCE  has a patent portfolio   including   80 US  patents,  of which  the DoE  only  has  rights  to nine.  The  rights  granted  to the DoE  do not prevent  FCE  from  granting  a lien in favor  of JP Morgan   Chase.  DoE's  march-in rights  may  only  be applied  in the event  that FCE fails  to proceed   with  commercialization     of the fuel cell technology,    and  DoE  determines   that it is beneficial   to the national   interest  to continue
the commercialization     of the technology.    Ex-Im  Bank  understands   that FCE  will be licensing   its General  Intangibles,   specifically    intellectual   property,   in the ordinary   course  of business   on an ongoing   basis  through   licensing   agreements.   This  is a primary   revenue   generating   activity   for FuelCell   which  will  translate   into Export-Related    Accounts   Receivable   for  the subject  $8.0 million  Revolving   Loan  Facility.

Ex-Im  Bank  understands    that  the Bon-ower  negotiated   a $181  million  contract  with POSCO
Power,  a South  Korean  company   for the sale of a 121.8  megawatt    fuel  cell power  kit through
2016,  and currently   also  has  an existing   $115.5  million  contract   with POSCO Power  for the sale of 11  70 megawatt   fuel cell  power  kit through  April  2013.  The  specific  Export-Related    Accounts
Receivable   and Export-Related     Inventory   related  only  to these  contracts   will  serve  as collateral for POSCO  Power  and  serve  as a purchase   money  security  interest.  This  security  interest  is
securing   advance  payments   that  POSCO  Power  will  be making  to Fuel  Cell.   Notwithstanding
Section  7(a)  "Collateralization"      of the Delegated   Authority   Letter  Agreement   and  Section   J  .01 "Eligible  Export-Related     Accounts   Receivable"   and  "Eligible   Export-Related    Inventory"   of the Borrower   Agreement,    Ex-Im  Bank  hereby  agrees  to allow  Export-Related    Accounts   Receivable and Export-Related    Inventory   related  to these  contracts   with  POSCO   Power,  to be excluded   from the primary  collateral   

requirement    of the subject  Loan  Facility.    Ex-1m Bank  understands   that all of this  collateral   will  be excluded   from  the JPMC  Export-Related    Borrowing   Base  during  the life of these  contracts.

In addition  to the contracts   mentioned   above,  Ex-Im  Bank  understands    that the Borrower   has  on- going  sales  to POSCO   Power,  which  has a 16% ownership   of the Borrower.   Ex-Im  Bank understands   that POSCO   Power,  which  is the largest  non-government    private  power  generating business  in South  Korea,   does  not currently   have  any  management    authority   or controlling interest  in the Borrower;    therefore,   notwithstanding    the definition   of "Eligible   Export-Related Accounts   Receivable"    (m)  in the Borrower   Agreemeent,   the Eligible   Export-Related    Account Receivable   can be considered     eligible,   assuming   they meet  all of the other  criteria  for eligibility as outlined   in the Borrower   Agreement.   If POSCO  Power  obtains   any controlling   interest, defined  as ownership   of 20%  or more,  or a management   role  in the Borrower,   then  the Lender would  need  to seek  a waiver  from  Ex-1m Bank  to maintain   these  receivables   as eligible.

Ex-Im  Bank  understands    that  Fuel  Cell's   Canadian   based  export   customer,   Enbridge,   Inc.,  is  a holder  of Series  1 preferred   shares  in Fuel  Cell's   Canadian   Subsidiary,   FCE  Ltd  as well  as a 10% ownership   interest   in Fuel  Cell.  Ex-Im  Bank  understands    that  Enbridge,   Inc.  does  not  currently have   any   management      authority     or   controlling     interest    in   the   Borrower;     therefore,     the Notwithstanding      the   definition    of   "Eligible   Export-Related     Accounts    Receivable"     (m),     the Eligible  Export-Related     Account   Receivable   can  be considered     eligible,   assuming   they  meet  all of  the  other   criteria   for  eligibility    as  outlined   in  the  Borrower    Agreement.    If  Enbridge,    Inc. obtains  any  controlling    interest,   defined   as ownership   of 20%  or more,  or a management    role  in the Borrower,   then  the  Lender   would  need  to seek  a waiver  from  Ex-Im  Bank  to maintain   these receivables   as eligible.

Notwithstanding     the  requirements,     as  set  forth  by  Sections   4.06(a)   and  4.06(b)   of  the  Master Guarantee    Agreement,     for  each   Disbursement     to  be  supported    by  Export   Orders,   JPMorgan Chase  Bank  may  make   Credit  Accommodations    against  Eligible   Export-Related    Inventory   (as a percentage   of the  Borrower's    total  eligible  Inventory)   based  upon  the Borrower's    export  sales  as a percentage   of its total  sales,  as determined   by  the  Borrower's    prior  six-month   sales  mix.   As  a condition    of  this  waiver,   the  Lender   shall  ensure   accurate   reporting    by  the  Borrower    (of  its export  sales  as a percentage   of total  sales)  via quarterly   examinations    of the Borrower's    records.

Notwithstanding    Section   4.08  (d) of the Master  Guarantee   Agreement   entitled,  "Inspections    and Reviews"   that requires   Lender   to review  a 10% sampling   of the Export  Order  Summaries   once each quarter  in the event  Lender  elects  to make  Credit  Accommodations     based  upon  summaries of the Export  Orders,  Ex-Im  Bank  will  allow  the Export  Order  Summaries,   which  are submitted
as part of the monthly   reporting,   to be conducted   once  a year  as part of the annual  collateral   field
exam.  Ex-Im  Bank  understands    that each  annual  exam  will  include  the required  quarterly
reviews  for the preceding   four quarters.These waivers are granted solely with respect to the subject Loan Facility, and shall not be deemed to apply to any other loan or Borrower, without Ex-Irn Bank's  prior written consent.    All other terms and conditions of the Master Guarantee Agreement and the Delegated Authority Letter Agreement shall remain in full force and effect.

Please retain letter in your records, and do not forward a copy to Ex-Im Bank unless requested
Should you have any questions, please contact Mario Ramirez, Director, at (202) 565 -3785.

Sincerely,

Pamela S. Bowers
Vice President
Business Credit Division

	
		
	Name of Lender:                                                                             Name:
	

	 
	 

	Title:
	

ANNEX B
ECONOMIC IMPACT CERTIFICATION
[see attached]

ANNEX B

Economic  Impact  Certification

I am making this Economic  Impact Certification  on behalf of FuelCell  Energy,  Inc.(the "Borrower")  pursuant  to Section  2.14(b) of the Borrower  Agreement  applicable  to the Borrower's  Loan Facility.   All capitalized  terms not otherwise  defined  in this Certification  are as defined  in the Borrower  Agreement.

I hereby certify that:

ý No Items  listed in Section 4.A.(1.)  of the Loan Authorization   Agreement applicable  to the Borrower's   Loan Facility  are Capital  Goods.

ý No Items being added to Section 4.A.(1.) of the Loan Authorization   Agreement  in amending  such document  are Capital  Good.

oThe Items listed below are Capital  Goods.  In accordance  with Section  2.14(a) of the Borrower  Agreement,  the Borrower  has either conducted  its own analysis  or obtained an Economic  Impact  Approval  concluding  that such Items do not require  any restrictions. The Economic  Impact Approval  or Borrower's   analysis  supporting  this conclusion  is attached.

oThe Items listed below are Capital Goods.  In accordance  with Section 2.14(a)  of the Borrower  Agreement,  the Borrower  has either conducted  its own analysis  or obtained an Economic  Impact  Approval  that identifies  certain restrictions.   The Borrower  shall abide by the terms of such restrictions  throughout  the term of the Loan Facility.   The Economic  Impact  Approval  or Borrower's   analysis  enumerating  the restrictions  is attached.

I certify that I am authorized  to sign this Certification  on behalf of the Borrower.

FuelCell  Energy,  Inc.                March 13, 2013    
 (Name of Borrower)                    Date
 
Officer Name and title:  Michael Bishop SVP & CFO

	
			
	Officer Name and title: Michael Bishop SVP & CFO
	 
	 

	                                       
	 
	 

EXHIBIT B
LOAN AUTHORIZATION NOTICE 
[See attached]

[Two originals to be provided to Ex-Im Bank]

To:      Export-Import Bank of the United States
811 Vermont Avenue, N.W. Washington, D.C. 20571
Attention:  Vice President - United States Division

LOAN AUTHORIZATION NOTICE

We hereby notify the Export-Import Bank of the United States ("Ex-Im Bank") that, pursuant to the delegated authority granted by Ex-Im Bank to the undersigned institution (the "Lender") under the Delegated Authority Letter Agreement referred to below between Lender and Ex-Im Bank, we have issued an Ex-Im Bank Guarantee under the Master Guarantee Agreement between Ex-Im Bank and Lender, of the Loan Facility identified below from Lender to Borrower identified below.  The Loan Facility is subject to the specific terms and conditions set forth below.  Unless otherwise defined, the capitalized terms used herein shall have the meanings set forth in the Master Guarantee Agreement.

		
	1.
	Documentation and Location of Loan Documents: Name of Lender:  JPMorgan Chase Bank, N.A.

Delegated Authority Letter Agreement Number:  TX - DA - 05 - 010

Master Guarantee Agreement Number:  TX - MGA - 05 - 010

Borrower Agreement Date:  April 3, 2013

Effective Date of this Loan Facility:  April 3, 2013

Location of Loan Documents:  2200 Ross Ave., 6th Floor, Dallas, Texas 75201

If Borrower was assisted by a city/state export agency, please provide the name of the agency, contact person, and telephone number.

Name:                    Address:               

Attention:       Telephone:

		
	2.
	A.        Borrower's Name and Address: The full name, address, contact person, telephone and telefax numbers of Borrower are as follows:

Name:             FuelCell Energy, Inc. Address:         3 Great Pasture Rd.
Danbury, CT  06813
Attention:       Michael Bishop, SVP and CFO
Telephone:     203-825-6000
Telecopier:     203-825-6100

B.        Is Borrower a Small Business as stipulated by SBA guidelines?
         Yes       X    No

C.        Additionality:  Please select appropriate answer(s).

o(1.)      Borrower meets all small business criteria:
(i)        Maximum Amount is $2 million or less;
		
	(ii)
	Borrower qualifies as Small Business under SBA Guidelines;

(iii)     Borrower employs 100 people or fewer; and
(iv)      Borrower's annual revenues do not exceed $10 million.

ý(2.)      Repayment risk associated with foreign sale.

ý(3.)      Borrower's creditworthiness requires Guarantee.

o(4.)      Lender's internal lending limits reached.

o(5.)      Lender's statutory lending limits reached.

o(6.)      Other (please specify)                                                                        .

		
	ý(7.)
	Lender  has  adequately  addressed  each  of  the  requirements  of “Additionality” as set forth in the Working Capital Guaranty Manual in its internal credit memorandum.

3.         Guarantor's Name and Address: Are there Guarantors for the Loan Facility?

oYes

ýNo   If no, attach waiver letter from Ex-Im Bank and/or ownership breakdown.

The full name, address, telephone and telefax numbers of each Guarantor are as follows:
Name:                    Address:               

Attention: Telephone: Telecopier:

4.         The Items to be financed:

		
	A.
	(1.) The Items:  (Complete description of goods and services to be exported, e.g. machine tools, electronic components, logs, etc.)

SIC Code(s)/NAIC No(s):  335999   Development and manufacture of high- efficiency stationary fuel cell power plants

(2.)      Will Indirect Exports be included in the Export-Related Borrowing Base?

oYes.    If  yes,  please  indicate  which  Items  above  will  include  Indirect
Exports and affirm:

oFunds available under the Export-Related Borrowing Base derived from Indirect Exports shall at all times constitute no more than 10% of the Maximum Amount of this Loan Facility in accordance with the standard stated in Section 4.15 of the Master Guarantee Agreement; or

oFunds available under the Export-Related Borrowing Base derived from Indirect Exports might constitute more than 10% of the Maximum Amount of this Loan Facility.  Lender has obtained Ex-Im Bank's prior written consent to exceed 10% of the Maximum Amount.  Attached is a copy of Ex-Im Bank's written consent.

ýNo.

(3.)      Have you obtained an Economic Impact Certification from the Borrower covering all Items listed in 4.A.(1) in accordance with Section 4.09 of the MGA?

ýYes

oNo
B.        Are Commercial Letters of Credit or Standby Letters of Credit (other than
Warranty Letters of Credit) to be issued under this Loan Facility?

ýYes    If yes, approximately what percentage of the Loan Facility will be utilized for Commercial Letters of Credit or Standby Letters of Credit?  Up to 15%
oNo

C.        Are Warranty Letters of Credit expected to be issued under this Loan Facility?

oYes    Lender has obtained Ex-Im Bank's prior written consent for issuance of such Warranty Letters of Credit.  Attached is a copy of Ex-Im Bank's written consent.

ýNo

D.        Are Retainage Accounts Receivable to be included in the Export-Related
Borrowing Base?

oYes   Lender has obtained Ex-Im Bank's prior written consent for inclusion of each such Retainage Accounts Receivable.  Attached is a copy of Ex-Im Bank's written consent.

ýNo

		
	5.
	Maximum Amount, Advance Rates, Loan Facility Terms: A.    Maximum Amount:    $8,000,000.00

B.        Advance Rates by Categories of Primary Collateral:

		
	(1.)
	Inventory:  The Advance Rate (to be multiplied by the Export-Related Inventory Value or Export-Related Historical Inventory Value) for Collateral categorized as Eligible Export-Related Inventory shall be:

Seventy-five percent ( 75% )

		
	(2.)
	Accounts Receivable:  The Advance Rate (to be multiplied by the Export- Related Accounts Receivable Value) for Collateral categorized as Eligible Export-Related Accounts Receivable shall be:

Ninety percent ( 90% )
		
	(3.)
	Retainage Accounts Receivable:  The Advance Rate (to be multiplied by the Retainage Value) for Collateral categorized as Retainage Accounts Receivable shall be:

Zero percent ( 0% )

		
	(4.)
	Other Assets (as described in Section 6.A. below):  The Advance Rate (to be multiplied by the Other Assets Value) for Collateral categorized as Other Assets shall be:

Zero percent ( 0% )

		
	(5.)
	Overseas Accounts Receivable: The Advance Rate (to be multiplied by the Export-Related Overseas Accounts Receivable Value) for Collateral categorized  as  Eligible  Export-Related  Overseas  Accounts  Receivable shall be:

Zero percent ( 0% )

		
	(6.)
	Overseas Inventory: The Advance Rate (multiplied by the Export-Related Overseas Inventory Value) for Collateral categorized as Eligible Export- Related Overseas Inventory shall be:

Zero percent ( 0% )
		
	C.
	Type of Loan Facility and Exports supported: (1.)    Type of Loan Facility:

ýThe Loan Facility is a Revolving Loan Facility (other than a Transaction Specific Revolving Loan Facility).  (Complete subsections (2.), (3.) and (5.), and, if applicable, (6.) below.)

oThe Loan Facility is a Transaction Specific Revolving Loan Facility. (Complete subsections (3.), (4.), and (5.), and, if applicable, (6.) below.)

oThe Loan Facility is a Transaction Specific Loan Facility.  (Complete subsections (3.), (4.), and (5.), and, if applicable, (6.) below.)

		
	(2.)
	For a Revolving Loan Facility, identify the top three countries to which the Items will be exported:

Country of Export:     South Korea Country of Export:     England Country of Export:     Germany

(3.)      Estimated Total Export Sales each year to be supported by this Loan
Facility:  $ 100,000,000.00
(4.)      For a Transaction Specific Revolving Loan Facility or a Transaction
Specific Loan Facility, identify the Specific Export Order(s):

	
		
	Country of Export:
	    

	Contract Price:
	$    

	Contract Number:
	    

	Contract Date:
	    

	Parties:
	 

(5.)      Lender shall conduct field examinations:

oAt least every six (6) months starting on the date six (6) months following the Effective Date of the Loan Facility.

ýAt least every six (6) months starting 4/30/13 (specify date no later than six (6) months following the Effective Date of the Loan Facility; semi- annual field examination schedule must include Borrower’s fiscal year end date if audited financial statements will substitute for one field
examination annually).

		
	(6.)
	For Loan Facilities with a Loan Facility Term greater than one (1) year, Lender shall provide Ex-Im Bank an annual review:

oOn each Loan Facility Anniversary Date or

oAnnually starting                      (specify date no later than the first anticipated Loan Facility Anniversary Date).

6.         Security Interests:

Subject to the provisions of subsections D, E and F below in this Section 6, Lender agrees to obtain and maintain the following valid, enforceable and perfected security interests in the following Collateral, and the proceeds thereof:

A.        First priority in the following (check all that apply):

ýAll Inventory.

oAll Export-Related Inventory.

oAll Export-Related Overseas Inventory.
oAll Export-Related Inventory relating to Specific Export Order(s).

oAll Export-Related Overseas Inventory relating to Specific Export
Order(s).

ýAll Accounts Receivable.

oAll Export-Related Accounts Receivable.

oAll Export-Related Overseas Accounts Receivable.

oAll Export-Related Accounts Receivable relating to Specific Export
Order(s).

oAll Export-Related Overseas Accounts Receivable relating to Specific
Export Order(s).

ýAll General Intangibles.

oAll Export-Related General Intangibles.

oAll Other Assets.  Please specify:      

oAll Other Collateral.  Please specify:

		
	B.
	Secondary Collateral:  Any other assets of Borrower in which Lender is receiving a Lien to secure any other financial accommodations provided by Lender to such Borrower.

Please specify: Cash collateral being held at JPMC securing other facilities or derivative transactions.

		
	C.
	Guarantor Collateral:  Any assets of a Guarantor or a third party in which Lender is granted a Lien to secure any financial accommodations provided by Lender to Borrower.

Please specify:                        N/A     
D.        Permitted Liens:

(1) Liens granted to the Connecticut Development Authority pursuant to: (a) the Note in the amount of $4,000,000, the Loan Agreement, and the Security Agreement all dated April 29, 2008; (b) the Loan Agreement with the Connecticut Development Authority dated as of June 30, 2000, as amended and (c) Loan Agreement with the Connecticut Development Authority dated as of March 5,
2013.

(2) Liens granted to (i) Relational, LLC, (ii) Relational II, LLC, and(iii) Key Equipment Finance Inc. for which UCC Financing Statements have been filed prior to the date hereof, securing equipment leased or purchased by the Borrower;

(3) Liens granted or to be granted in connection with the financing of power plants to be sold by the Borrower to entities controlled by the Borrower or the Borrower’s distribution partners for projects selected by the State of Connecticut Department of  Public Utility Control (“DPUC”) for purposes of providing 43.5 megawatts, including (but not limited to) projects for generating approximately
27.3 megawatts of power which may be financed in whole or in part by a United
States Department of Energy Loan Guarantee.

(4) Liens on  raw materials which secure trade debt arising from the purchase of such raw materials and such trade debt is incurred by borrower in the ordinary course of business;

(5) Liens and all associated rights of the Department of Energy and other governmental agencies arising from so-called “march-in rights” to the technology subject to a cooperative research and development agreement.

(6) Liens in favor of POSCO Power, a Korean corporation securing Borrower's obligations under the POSCO Contract.

		
	E.
	The Liens of Lender on the Secondary Collateral shall be a first priority Lien except for the following Liens:       

F.        The Liens of Lender on the Guarantor Collateral shall be a first priority Lien
except for the following Liens:
 
N/A
G.        Are you separately collateralizing the Unguaranteed Portion10% portion of this
Loan Facility? No       X     

Yes       
 
If yes, please specify separate collateral.       
                                                                                                                        .

Note:  Lender cannot collateralize its retained 10% risk with cash, cash equivalents or marketable securities from Borrower, any Guarantor, or any of Borrower's Affiliates (as
defined in Section 5(b) of the Delegated Authority Letter Agreement) or any third party guarantors.

7.         Terms of Sale:

The terms of sale for the Items under this Loan Facility shall be typical for the industry
but in no event shall allow for payment more than 180 days following the original invoice date. The terms may include the following:

ýConfirmed irrevocable letters of credit.

ýIrrevocable letters of credit.

ýOpen account insured through Ex-Im Bank export credit insurance for comprehensive commercial and political risk.

ýOpen account insured through non Ex-Im Bank export credit insurance for comprehensive commercial and political risk.

ýCash payment received prior to shipment.

ýOpen account uninsured.

ýSight draft documents against payment (also known as "documentary collections").

oOther terms. [If checked, any such terms of sale must be fully described on an attached addendum in order for this Notice to be considered complete.]

8.         Interest Rate and Other Fees.

A.        Lender's Interest Rate:   JPMC CBFR or LIBOR + 1 1⁄2% B.        Other Fees: Letter of Credit fees if applicable

9.         Facility Fee:  Lender will submit a completed and signed Schedule A together with the
Facility Fee amount determined in accordance with the applicable section of Schedule A: A.      within ten (10) Business Days of the Effective Date;
		
	B.
	with respect to a Revolving Loan Facility (other than a Transaction Specific Revolving Loan Facility), within ten (10) Business Days of the first and second anniversaries of the Effective Date, as applicable; and/or

		
	C.
	within ten (10) Business Days of the Effective Date of an Extension of the Final Disbursement Date (such Extensions not to exceed one-hundred-twenty (120) days in the aggregate), as applicable.  Please note that Ex-Im Bank considers a Renewal to be a new Loan Facility rather than an Extension.

10.       Final Disbursement Date:  April 2, 2014.

		
	11.
	Financial Reporting Requirements: Borrower and each Guarantor shall deliver to Lender the following financial statements:

A.        Year End Financial Statements.
Within one hundred and twenty (120) days of Borrower's and each Guarantor's (other than individual Guarantor) fiscal year end or if such Person is required to submit a Form 10-K at the time of filing of such Form 10-K, the income statement, balance sheet and statement of cash flow as of such fiscal year-end including in each case all footnotes and other disclosures, which financial statements have been (check one):

ýcertified without qualification by an independent accounting firm acceptable to Lender (the "Accountants") (For Loan Facilities with a Maximum Amount of $5,000,000 or more)

oreviewed by the Accountants (For Loan Facilities with a Maximum Amount of $2,000,000 or more but less than $5,000,000)

ocompiled by the Accountants  (For Loan Facilities with a
Maximum Amount of $1,000,000 or more but less than
$2,000,000)

ointernally prepared by management of such Person in accordance with GAAP, certified as fairly presenting the financial condition of such Person as of the date thereof by an authorized officer of such Person (For Loan Facilities with a Maximum Amount of less than
$1,000,000)

B.        Quarterly Financial Statements.

Within 45 days of Borrower's and each Guarantor's (other than an individual Guarantor) fiscal quarter end or if such Person is required to submit a Form 10-Q at the time of filing of such Form 10-Q, the income statement, balance sheet and statement of cash flow as of the end of such fiscal quarter which have been internally prepared by management of such Person in accordance with GAAP, and certified as fairly presenting the financial condition of such Person as of the date thereof by an authorized officer of such Person.
		
	C.
	Individual Guarantors Financial Statements:  Once each year, a personal financial statement on a bank form or such other form generally accepted by Lender.

		
	12.
	Country Limitation Schedule:  (See Country Limitation Schedule dated January 31, 2013, attached hereto, which may be updated from time to time)

13.       See attached waiver letter dated March 28, 2013 from the Export-Import Bank of the
United States for a listing of the approved waiver items.
IN WITNESS WHEREOF, Lender has caused this instrument to be executed this 3rd day of April, 2013.

Name of Lender:
 
Receipt acknowledged by:
JPMORGAN CHASE BANK, N.A.                    EXPORT-IMPORT BANK OF THE UNITED STATES

By:        
 
By:        
(Signature)                                                                             (Signature)

Name:   Randall Mascorro                              Name:        
(Print or Type)

Title:   Vice President                                     Title:        
(Print or Type)

Address:   2200 Ross Ave., 6th Floor            Address:  811 Vermont Avenue, N.W.
Dallas, TX  75201                                        Washington, D.C.  20571
Attention:  Vice President,
Business Credit Division

	
				
	Telephone:   (214) 965-3632
	Telephone:
	(202) 565-3780

	Telefax:
	(214) 965-3671
	Telefax:
	(202) 565-3793

Name of Lender:

JPMORGAN CHASE BANK, N.A.

By:        
(Signature)

Name:  Terese Gravenhorst

Title:   Executive Director

Address:   420 West Van Buren Street, Floor 09
Chicago, IL 60606-3534

Telephone:   (312) 954-8256
Telefax:        (214) 965- 3671

Schedule A to the Loan Authorization Notice
FOR LOAN FACILITY EFFECTIVE DATES OF 9/17/12 AND AFTER
Facility Fee Schedule

Lender:   JPMorgan Chase Bank, N.A.          Guaranteed Loan Number: AP085877XA(B) Borrower(s):  FuelCell Energy, Inc.
I.         Loan Facility Type (Check one.)

ýRevolving  Loan  Facility  (other  than  Transaction  Specific  Revolving  Loan
Facility) (Loan Facility Type “R” for use in Table 1)

oTransaction Specific Loan Facility (Loan Facility Type “TS” for use in Table 1)

oTransaction Specific Revolving Loan Facility (Loan Facility Type “TSR” for use in Table 1)

		
	II.
	Loan Facility Fee Term, and Portion of Term for which the Facility Fee is due: A.    Number of months (total) in the term of the Loan Facility:  12

		
	B.
	Number of months for which Facility Fee is due:                 12 (Based on Table 1 below)

Table 1              
	
					
	

LOAN FACILITY TYPE
	

If number of
months in Part A is:
	

NUMBER OF MONTHS FOR WHICH FACILITY FEE IS DUE WITHIN 10 BUSINESS DAYS OF:

	

Effective Date
	

1st anniversary
of Effective Date
	

2nd anniversary of Effective Date

	

R
	

Up to 12 months
	

Number of months set forth in Part II.A. above (minimum 6)
	

N/A
	

N/A

	

More than 12 months, up to and including 24 months
	

12
	Number of months set forth in Part II.A. less 12
	

N/A

	

More than 24 months, up to and including 36 months
	

12
	

12
	

Number of months set forth in Part II.A. less 24

	

T, TSR
	

Any number of months
	

Number of months set forth in Part II.A. above (minimum 6)
	

N/A
	

N/A

Late fees accrue at the rate of Fifty Dollars ($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth (10th) Business Day following the Effective Date, each Loan Facility Anniversary Date, or the effective date of each Extension or amendment to the Loan Authorization Notice increasing the Maximum Amount, as applicable, up to the sixtieth (60th) calendar day after such date.

III.      Annual Facility Fee Percentage (check one):

ýThe Criteria for Reduced Facility Fee have not been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex- Im Bank’s share in Table 2).
oThe Criteria for Reduced Facility Fee have been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex-Im Bank’s share in Table 2).

Note:  For Revolving Loan Facilities (other than Transaction Specific Revolving Loan Facilities) with terms in excess of twelve (12) months, the Criteria for  the  Reduced  Facility  Fee  must  have  been  met  for  

each  year  or portion thereof for which Lender remits the Reduced Facility Fee.

Table 2                       
	
								
	

LOAN FACILITY TERM
	

MAXIMUM AMOUNT
	

STANDARD FACILITY FEE (1.75%)
	

REDUCED FACILITY FEE (1.25%)

	 
	 
	

Facility Fee
	

Ex-Im’s
Share
	

Lender
Retains
	

Facility Fee
	

Ex-Im’s
Share
	

Lender
Retains

	Up to 6 months
	First $2,000,000
	87.5 bp
	37.5 bp
	50 bp
	62.5 bp
	37.5 bp
	25 bp

	 
	Portion over $2,000,000
	87.5 bp
	50 bp
	37.5 bp
	62.5 bp
	37.5 bp
	25 bp

	More than 6 up to 12
months
	

First $2,000,000
	

175 bp pa
	

50 bp
	

125 bp pa
	

125 bp pa
	

50 bp
	

75 bp pa

	 
	Portion over $2,000,000
	175 bp pa
	100 bp pa
	75 bp pa
	125 bp pa
	75 bp pa
	50 bp pa

	More than 12 months
	First $2,000,000
	175 bp pa
	50 bp pa
	125 bp pa
	125 bp pa
	50 bp pa
	75 bp pa

	 
	Portion over $2,000,000
	175 bp pa
	100 bp pa
	75 bp pa
	125 bp pa
	75 bp pa
	50 bp pa

	 
	bp = basis point pa = per annum

IV.A.  Facility Fee Calculations following the Effective Date and each Loan Facility
Anniversary Date:

Show Facility Fee calculation in Table 3 below:

     Table 3     

	
								
	

Portion of Maximum Amount
	

X
	

Applicable “Ex- Im’s Share” from Table 2
	Pro-rate Facility Fee if/as applicable:
	

Amount of Facility Fee to remit to Ex-Im Bank

	

X
	Number of months for which Facility Fee is due (based on Table 1)
	

divided by 12 =

	Loan Facility Term up to 6 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp
	

FLAT FEE
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

             bp
	

FLAT FEE
	

= $

	 

	Loan Facility Term more than
6 up to 12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp
	

FLAT FEE
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

           bp (pa)
	

X
	 
	

/ 12
	

= $

	 

	Loan Facility Term more than
12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$2,000,000
	

X
	

     50      bp (pa)
	

X
	12
	

/ 12
	

= $10,000.00

	Portion over
$2,000,000 =
	

$6,000,000
	

X
	

     100   bp (pa)
	

X
	12
	

/ 12
	

= $60,000.00

	Lender shall pay this Facility Fee to Ex-Im Bank within ten (10) Business Days of the
[Effective Date] [1st anniversary of Effective Date] [2nd anniversary of Effective Date]                = $70,000.00

	Lender shall pay to Ex-Im Bank any late fees which accrue at the rate of Fifty Dollars
($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth
(10th) Business Day following the Effective Date, and each Loan Facility Anniversary Date,       = $
as applicable, up to the sixtieth (60th) calendar day after such date.

	Total (Facility Fee + any applicable late fees)   = $70,000.00

	 

B.        Facility Fee Calculations for an Extension:

oAs of the date of this requested Extension, the Criteria for Reduced Facility Fee have not been met in accordance with Exhibit I to the Master Guarantee Agreement.  (Use to determine applicable Ex-Im Bank’s share in Table 2).
oAs of the date of this requested Extension, the Criteria for Reduced Facility Fee have been met in accordance with Exhibit I to the Master Guarantee Agreement. (Use to determine applicable Ex-Im Bank’s share in Table 2).
Show Facility Fee calculation in Table 4 below:

     Table 4     

	
								
	

Portion of Maximum Amount
	

X
	

Applicable “Ex- Im’s Share” from Table 2
	Pro-rate Facility Fee if/as applicable:
	

Amount of Facility Fee to remit to Ex-Im Bank

	

X
	Number of days for which Facility Fee is due (based on Table 1)
	

divided by 360 =

	Loan Facility Term plus
Extension up to 6 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	 
	 
	 
	 
	

NOT APPLICABLE

	Portion over
$2,000,000 =
	 
	 
	 
	 
	

NOT APPLICABLE

	 

	Loan Facility Term plus
Extension more than
6 up to 12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	 
	 
	 
	

NOT APPLICABLE

	Portion over
$2,000,000 =
	

$
	

X
	

             bp (pa)
	

X
	 
	

/ 360
	

= $

	 

	Loan Facility Term plus
Extension more than
12 months:
	 
	 
	 
	 
	 
	 

	First
$2,000,000 =
	

$
	

X
	

bp (pa)
	

X
	 
	

/ 360
	

= $

	Portion over
$2,000,000 =
	

$
	

X
	

           bp (pa)
	

X
	 
	

/ 360
	

= $

	Lender shall pay this Facility Fee to Ex-Im Bank within ten (10) Business Days of the
Extension.                                                                                                                                         = $

	Lender shall pay to Ex-Im Bank any late fees which accrue at the rate of Fifty Dollars
($50.00) per day for each calendar day that the Facility Fee remains unpaid after the tenth
(10th) Business Day following the Extension, up to the sixtieth (60th) calendar day after such      = $
date.

	Total (Facility Fee + any applicable late fees)   = $

	 

C.        Facility Fee Calculations for an Increase in the Maximum Amount:

For increases in the Maximum Amount, the Facility Fee shall be calculated in accordance with Section 3.01(a)(iv) of the Master Guarantee Agreement.  Ex-Im Bank’s portion of such Facility Fee shall be between 25 and 75 basis points based on the amount of the increase to the Maximum Amount.

C O U N T R Y   L I M I T A T I O N

S C H E D U L E

AS OF JANUARY 31, 2013

EBD-G-02                                                                                                                  January 2013

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION SCHEDULE
Special Conditions Pertaining to
Ex-Im Bank Loan & Guarantee Programs, Export Credit Insurance,
and Working Capital Guarantee Program

EFFECTIVE January 31, 2013

It is agreed that pursuant to the provisions of Ex-Im Bank loans and guarantees and Ex-Im Bank export credit insurance policies, the country limitation schedule has been amended effective January 31, 2013. This revision supersedes the December 27, 2012 Country Limitation Schedule and any amendments thereto.

Please note that Ex-Im Bank only sends updates to the Country Limitation Schedule via e-mail. Policyholders must register a http://www.exim.gov/lists/subscribe.cfm, or use the link from Ex-Im Bank’s home (www.exim.gov) under “E-Mail Subscriptions,” to receive updates to the CLS via e-mail along with other Ex- Im Bank publications such as the Exporter and Africa newsletters.

GENERAL CONDITIONS

Exceptions to any condition or limitation contained herein must be obtained in writing from Ex-Im Bank.

Ex-Im Bank reserves the right to set additional conditions for any particular buyer or issuing bank including the right to set a different percentage of coverage. Ex-Im Bank also reserves the right to reject any particular application.

The sector where the risk lies (public or private) and the country of the obligor or guarantor, if there is one, will generally be used for determining appropriate country limitations and fees.

The following insurance policies are affected by this country limitation schedule. Please note that Short-Term
Insurance Policies are governed by the columns titled “Up to one year”:

Short-Term Insurance Policies: EBD, ELC, ENB, ENV, ESC, ESM(ST), ESS, ETM(ST), EUS, FB, FB-E, FV, ESP, ESSP, FP, MCP(ST).

Medium-Term: All medium-term and lease-policy types, ESM, ETM, MCP, MRP, MSC, MSC-E, MTR, MTR-E.

	
			
	

Effective Date of
	

January 31, 2013
	

No. CLS-01/13

	This Endorsement:
	12:01 A.M. E.S.T.
	 

- 2 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Afghanistan
	X
	X
	X
	 
	X
	X
	X
	10,13

	Albania
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Algeria
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Andorra
	 
	 
	 
	 
	 
	 
	 
	 

	Angola
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Anguilla
	 
	 
	 
	 
	 
	 
	 
	1

	Antigua and Barbuda
	X
	X
	X
	 
	 
	 
	 
	1, 4, 13

	Argentina
	X
	X
	X
	 
	 
	 
	X
	1, 13

	Armenia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 10

	Aruba
	 
	 
	 
	 
	 
	 
	 
	1, 9

	Australia
	 
	 
	 
	 
	 
	 
	 
	 

	Austria
	 
	 
	 
	 
	 
	 
	 
	 

	Azerbaijan
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Bahamas
	 
	 
	 
	 
	 
	 
	 
	 

	Bahrain
	 
	 
	 
	 
	 
	 
	 
	 

	Bangladesh
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Barbados
	 
	 
	 
	 
	 
	 
	 
	1

	Belarus
	X
	X
	X
	 
	X
	X
	X
	13

	Belgium
	 
	 
	 
	 
	 
	 
	 
	 

	Belize
	 
	 
	 
	 
	 
	 
	 
	6a

	Benin
	 
	 
	 
	 
	 
	 
	X
	1, 5, 13

	Bermuda
	 
	 
	 
	 
	 
	 
	 
	 

	Bhutan
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Bolivia
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	Bosnia-Herzegovina
	 
	 
	X
	 
	 
	 
	X
	1, 4, 13

	Botswana
	 
	 
	 
	 
	 
	 
	 
	 

	Brazil
	 
	 
	 
	 
	 
	 
	 
	 

	
									
	Brunei
	 
	 
	 
	 
	 
	 
	 
	 

	Bulgaria
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Burkina Faso
	 
	 
	X
	 
	 
	 
	 
	1, 10, 13

	Burma
	X
	X
	X
	 
	X
	X
	X
	7

	Burundi
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Cambodia
	X
	X
	X
	 
	 
	 
	X
	1, 4, 13

	Cameroon
	 
	 
	 
	 
	 
	 
	 
	4, 5, 6a

	Canada
	 
	 
	 
	 
	 
	 
	 
	 

	Cape Verde
	 
	 
	 
	 
	 
	 
	 
	10

	Cayman Is.
	 
	 
	 
	 
	 
	 
	 
	 

	Central African Republic
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Chad
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Chile
	 
	 
	 
	 
	 
	 
	 
	 

	China
	 
	 
	 
	 
	 
	 
	 
	2

	Colombia
	 
	 
	 
	 
	 
	 
	 
	 

*            Total Term is from the date of authorization until final repayment.
- 3 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Comoros
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Congo
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Congo, Democratic Rep.
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Cook Islands
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Costa Rica
	 
	 
	 
	 
	 
	 
	 
	6b

	Cote d’Ivoire
	 
	X
	X
	 
	 
	 
	X
	1, 11a, 13

	Croatia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Cuba
	X
	X
	X
	 
	X
	X
	X
	7

	Curacao
	 
	 
	 
	 
	 
	 
	 
	 

	Cyprus
	 
	 
	 
	 
	 
	 
	 
	 

	Czech Republic
	 
	 
	 
	 
	 
	 
	 
	 

	Denmark
	 
	 
	 
	 
	 
	 
	 
	 

	Djibouti
	 
	X
	X
	 
	 
	 
	X
	1, 4, 11a, 13

	Dominica
	 
	 
	 
	 
	 
	 
	 
	1

	Dominican Republic
	 
	 
	 
	 
	 
	 
	 
	3, 6a

	
									
	East Timor
	 
	 
	X
	 
	X
	X
	X
	5, 13

	Ecuador
	 
	 
	X
	 
	X
	X
	X
	5, 13

	Egypt
	 
	 
	 
	 
	 
	 
	 
	1, 4

	El Salvador
	 
	 
	 
	 
	 
	 
	 
	 

	Equatorial Guinea
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	Eritrea
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Estonia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6b

	Ethiopia
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	Fiji
	 
	 
	 
	 
	 
	 
	 
	1,4

	Finland
	 
	 
	 
	 
	 
	 
	 
	 

	France
	 
	 
	 
	 
	 
	 
	 
	 

	Gabon
	 
	 
	 
	 
	 
	 
	 
	5, 6a, 10

	Gambia
	 
	X
	X
	 
	 
	 
	X
	10, 11a, 13

	Georgia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Germany
	 
	 
	 
	 
	 
	 
	 
	 

	Ghana
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5, 10

	Greece
	 
	 
	 
	 
	 
	 
	 
	 

	Grenada
	 
	 
	X
	 
	 
	 
	 
	1, 5, 13

	Guatemala
	 
	 
	 
	 
	 
	 
	 
	6b

	Guinea
	X
	X
	X
	 
	X
	X
	X
	10, 13

	Guinea-Bissau
	X
	X
	X
	 
	X
	X
	X
	13

	Guyana
	 
	 
	X
	 
	 
	 
	X
	1, 13

	Haiti
	X
	X
	X
	 
	X
	X
	X
	10,13

	Honduras
	 
	 
	 
	 
	 
	 
	 
	 

	Hong Kong
	 
	 
	 
	 
	 
	 
	 
	 

	Hungary
	 
	 
	 
	 
	 
	 
	 
	 

	Iceland
	 
	 
	 
	 
	 
	 
	 
	 

	India
	 
	 
	 
	 
	 
	 
	 
	 

*            Total Term is from the date of authorization until final repayment.
- 4 -
	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Indonesia
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	
									
	Iran
	X
	X
	X
	 
	X
	X
	X
	7

	Iraq
	 
	 
	X
	 
	 
	 
	X
	1, 3, 5, 10, 13, 14

	Ireland
	 
	 
	 
	 
	 
	 
	 
	 

	Israel
	 
	 
	 
	 
	 
	 
	 
	 

	Italy
	 
	 
	 
	 
	 
	 
	 
	 

	Jamaica
	 
	 
	 
	 
	 
	 
	 
	6a

	Japan
	 
	 
	 
	 
	 
	 
	 
	 

	Jordan
	 
	 
	 
	 
	 
	 
	 
	6a

	Kazakhstan
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Kenya
	 
	 
	 
	 
	 
	 
	 
	1, 5

	Kiribati
	 
	 
	 
	 
	 
	 
	 
	1

	Korea, North
	X
	X
	X
	 
	X
	X
	X
	7

	Korea, South
	 
	 
	 
	 
	 
	 
	 
	 

	Kosovo
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Kuwait
	 
	 
	 
	 
	 
	 
	 
	 

	Kyrgyzstan
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Laos
	 
	 
	X
	 
	X
	X
	X
	1, 5, 13

	Latvia
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Lebanon
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Lesotho
	 
	 
	 
	 
	 
	 
	 
	6b

	Liberia
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Libya
	 
	 
	 
	 
	 
	 
	X
	1, 3, 4, 5, 12a,
12b, 13

	Liechtenstein
	 
	 
	 
	 
	 
	 
	 
	 

	Lithuania
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Luxembourg
	 
	 
	 
	 
	 
	 
	 
	 

	Macau
	 
	 
	 
	 
	 
	 
	 
	1

	Macedonia
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5, 10

	Madagascar
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Malawi
	 
	 
	X
	 
	 
	 
	 
	1, 4, 5, 10, 13

	Malaysia
	 
	 
	 
	 
	 
	 
	 
	6b

	Maldives
	 
	 
	 
	 
	 
	 
	 
	1

	Mali
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	Malta
	 
	 
	 
	 
	 
	 
	 
	 

	Marshall Islands
	 
	 
	 
	 
	 
	 
	 
	1

	Mauritania
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Mauritius
	 
	 
	 
	 
	 
	 
	 
	 

	Mexico
	 
	 
	 
	 
	 
	 
	 
	 

	Micronesia
	 
	 
	 
	 
	 
	 
	 
	1

	Moldova
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 10, 13

	Monaco
	 
	 
	 
	 
	 
	 
	 
	 

	Mongolia
	 
	 
	 
	 
	 
	 
	 
	1, 4

*            Total Term is from the date of authorization until final repayment.

- 5 -

	
									
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	Montenegro
	 
	 
	 
	 
	 
	 
	 
	1, 3, 5

	Montserrat
	 
	 
	 
	 
	 
	 
	 
	1

	Morocco
	 
	 
	 
	 
	 
	 
	 
	6b

	Mozambique
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5, 10

	Namibia
	 
	 
	 
	 
	 
	 
	 
	1

	Nauru
	X
	X
	X
	 
	X
	X
	X
	13

	Nepal
	 
	 
	X
	 
	X
	X
	X
	1, 13

	Netherlands
	 
	 
	 
	 
	 
	 
	 
	 

	New Zealand
	 
	 
	 
	 
	 
	 
	 
	 

	Nicaragua
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	Niger
	 
	X
	X
	 
	 
	 
	X
	1, 11a, 13

	Nigeria
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Norway
	 
	 
	 
	 
	 
	 
	 
	 

	Oman
	 
	 
	 
	 
	 
	 
	 
	 

	Pakistan
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 13

	Palau
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Panama
	 
	 
	 
	 
	 
	 
	 
	 

	Papua New Guinea
	 
	 
	 
	 
	 
	 
	 
	1

	Paraguay
	 
	 
	 
	 
	 
	 
	 
	6b

	Peru
	 
	 
	 
	 
	 
	 
	 
	1

	Philippines
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Poland
	 
	 
	 
	 
	 
	 
	 
	 

	Portugal
	 
	 
	 
	 
	 
	 
	 
	 

	
									
	Qatar
	 
	 
	 
	 
	 
	 
	 
	 

	Romania
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Russia
	 
	 
	 
	 
	 
	 
	 
	1

	Rwanda
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	St. Kitts and Nevis
	 
	 
	 
	 
	 
	 
	 
	1

	St. Lucia
	 
	 
	 
	 
	 
	 
	 
	1

	St. Vincent and Grenadines
	 
	 
	 
	 
	 
	 
	 
	1

	Samoa
	 
	 
	 
	 
	 
	 
	 
	1

	Sao Tome and Principe
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Saudi Arabia
	 
	 
	 
	 
	 
	 
	 
	 

	Senegal
	 
	 
	 
	 
	 
	 
	 
	1, 3, 4, 5

	Serbia
	 
	 
	 
	 
	 
	 
	 
	1, 4

	Seychelles
	 
	X
	X
	 
	 
	X
	X
	11a, 11b, 13

	Sierra Leone
	 
	X
	X
	 
	 
	X
	X
	10, 11a, 11b, 13

	Singapore
	 
	 
	 
	 
	 
	 
	 
	 

	Sint Maarten
	 
	 
	 
	 
	 
	 
	 
	 

	Slovak  Republic
	 
	 
	 
	 
	 
	 
	 
	3, 5, 6a

	Slovenia
	 
	 
	 
	 
	 
	 
	 
	6a

	Solomon Islands
	 
	 
	 
	 
	 
	 
	 
	1

	Somalia
	X
	X
	X
	 
	X
	X
	X
	13

*            Total Term is from the date of authorization until final repayment.- 6 -

	
									
	

EXPORT-IMPORT BANK OF THE UNITED STATES COUNTRY LIMITATION  SCHEDULE
Total Term* C Effective January 31, 2013

	

“X” INDICATES SUPPORT IS NOT AVAILABLE

	 
	        PUBLIC SECTOR RISK    
	 
	       PRIVATE SECTOR RISK    
	 

	COUNTRY
	Up to 1 year
	1 to 7 years
	Over 7 years
	 
	Up to 1 year
	1 to 7 years
	Over 7 years
	NOTE(S)

	South Africa
	 
	 
	 
	 
	 
	 
	 
	 

	Spain
	 
	 
	 
	 
	 
	 
	 
	 

	Sri Lanka
	 
	 
	 
	 
	 
	 
	 
	1

	Sudan
	X
	X
	X
	 
	X
	X
	X
	7

	Suriname
	X
	X
	X
	 
	 
	 
	X
	13

	Swaziland
	 
	 
	 
	 
	 
	 
	 
	 

	Sweden
	 
	 
	 
	 
	 
	 
	 
	 

	Switzerland
	 
	 
	 
	 
	 
	 
	 
	 

	Syria
	X
	X
	X
	 
	X
	X
	X
	7

	Taiwan
	 
	 
	 
	 
	 
	 
	 
	 

	Tajikistan
	 
	 
	X
	 
	 
	 
	X
	1, 4, 5, 10, 13

	Tanzania
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Thailand
	 
	 
	 
	 
	 
	 
	 
	 

	Togo
	 
	 
	X
	 
	 
	 
	X
	1, 3, 4, 5, 13

	Tonga
	 
	 
	 
	 
	 
	 
	 
	1

	Trinidad and Tobago
	 
	 
	 
	 
	 
	 
	 
	6a

	Tunisia
	 
	 
	 
	 
	 
	 
	 
	 

	Turkey
	 
	 
	 
	 
	 
	 
	 
	 

	Turkmenistan
	 
	 
	 
	 
	X
	X
	X
	1, 3, 5, 13

	Turks and Caicos
	 
	 
	 
	 
	 
	 
	 
	 

	Tuvalu
	 
	 
	 
	 
	 
	 
	 
	3

	Uganda
	 
	 
	 
	 
	 
	 
	 
	1, 5, 10

	Ukraine
	 
	 
	 
	 
	 
	 
	X
	1, 4, 5, 13

	United Arab Emirates
	 
	 
	 
	 
	 
	 
	 
	8

	United Kingdom
	 
	 
	 
	 
	 
	 
	 
	 

	Uruguay
	 
	 
	 
	 
	 
	 
	 
	6b

	Uzbekistan
	 
	 
	 
	 
	 
	 
	X
	1, 3, 4, 5, 13

	Vanuatu
	 
	 
	 
	 
	 
	 
	 
	1

	Vatican City
	 
	 
	 
	 
	 
	 
	 
	 

	Venezuela
	X
	X
	X
	 
	X
	X
	X
	13

	Vietnam
	 
	 
	 
	 
	 
	 
	 
	1, 4, 5

	Virgin Islands (British)
	 
	 
	 
	 
	 
	 
	 
	 

	Yemen
	X
	X
	X
	 
	X
	X
	X
	13

	Zambia
	 
	 
	X
	 
	 
	 
	X
	1, 5, 13

	Zimbabwe
	X
	X
	X
	 
	X
	X
	X
	13

*            Total Term is from the date of authorization until final repayment.

Notes:

		
	1.
	Discretionary Credit Limits under Short-Term Insurance Policies are withdrawn. Cover not available unless specified in a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or a Country Limits of Liability endorsement.

		
	2.
	For sovereign transactions in the People’s Republic of China (“China”), Ex-Im Bank will typically require an indication of Chinese government support in the form of a “Notice of MOF Guarantee” as defined in the Framework Agreement, dated January 24, 2005 between the Ministry of Finance of China and Ex-Im Bank.

For public sector nonsovereign and private sector transactions under medium- and long-term programs, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial information sufficient to enable Ex-Im Bank to reach a credit conclusion.

Under short-term insurance policies for public sector nonsovereign transactions, the use of Discretionary Credit Limits and Country Limits of Liability typically requires the obligation of one of the following: the Bank of China, the China Development Bank, the China Construction Bank, the Industrial and Commercial Bank of China, or the Bank of Communications. For private sector transactions, Discretionary Credit Limits are not available, and cover is not available unless specified in a Special Buyer Credit Limit endorsement or an Issuing Bank Credit Limit endorsement.

Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank referenced in the immediately preceding paragraph, or by a bank pre-approved by Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

		
	3.
	Prior to accepting an application for a preliminary or final commitment for a public sector transaction, or for any insurance or WCGP coverage for a public sector transaction, Ex-Im Bank will require an indication of host government support for the application.  Contact Ex-Im Bank for more detailed information on specific markets.

		
	4.
	Ex-Im Bank cover/support for private sector transactions is typically limited to transactions with a commercial bank as obligor or guarantor.  Coverage under the WCGP for private sector transactions requires that the transaction be supported by an irrevocable Letter of Credit.   Ex- Im Bank will consider transactions without a bank undertaking on a case-by-case basis.  As conditions pursuant to which we may consider non-bank transactions vary in markets subject to this note, please contact the Credit Policy Division for further information.

		
	5.
	Ex-Im Bank cover/support for public sector transactions is typically limited to transactions which commit the full faith and credit of the government.

6.         Under Short-Term Insurance Policies, coverage under Discretionary Credit Limits and Country Limits of Liability shall be the lesser of the limits authorized in the policy or:

                a. $50,000

                b. $100,000

Higher limits will be considered upon application for a Special Buyer Credit Limit endorsement, an Issuing Bank Credit Limit endorsement, or a Country Limits of Liability endorsement.

7.         Support is legally prohibited.

8.         Public sector transactions in Sharjah, Fujairah, Ras Al Khaimah, Umm Al Qaywayn, and
Ajman require the guarantee of the federal government of the United Arab Emirates.  Coverage under the WCGP for public sector transactions for the above may be considered if supported
by an irrevocable Letter of Credit.

		
	9.
	Sovereign transactions with total term in excess of one (1) year require the Government of Aruba as the borrower.  For the WCGP, a transaction may also be considered eligible if it is supported by an irrevocable Letter of Credit.

		
	10.
	When open for cover, medium- and long-term public sector transactions are subject to Ministry of Finance notification to Ex-Im Bank that the transaction is of the highest priority and would conform with IMF program limits on non-concessional debt.

11a.     Public sector risk cover is available under Ex-Im Bank’s Short Term Africa Initiative.
Discretionary Credit Limits are withdrawn.  Transaction structure and additional information requirements will be determined on a case-by-case basis.  Public sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

b.      Private sector risk cover is available under Ex-Im Bank’s Short Term Africa Initiative.
Discretionary Credit Limits are withdrawn.  Transaction structure and additional information requirements will be determined on a case-by-case basis. Private sector risk cover is also available under the WCGP provided that the transaction is insured by an insurer acceptable to Ex-Im Bank, or is supported by an irrevocable Letter of Credit or bank guarantee acceptable to Ex-Im Bank.

		
	12a.
	As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the public sector.  Coverage under the WCGP for public sector transactions is currently not available.

		
	b.
	As a result of existing conditions in this market, Ex-Im Bank is currently not processing applications in the private sector.  Coverage under the WCGP for private sector transactions is currently not available.

		
	13.
	Where the CLS indicates support is not available, Ex-Im Bank can still consider financing arrangements that eliminate or externalize country risks.  Potentially acceptable transactions include structured transactions that earn revenues offshore in a country with no CLS restrictions and are held in a bank or trust account acceptable to Ex-Im Bank; third-party support from creditworthy entities in countries with no CLS restriction; and asset-backed lease and financing structures involving equipment such as aircraft.

In addition, coverage under the WCGP may be available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank, and/or due from a Buyer, located in a country where Ex-Im Bank is open without restrictions for short-term transactions.

		
	14.
	For private sector transactions, Ex-Im Bank will consider transactions with financial institutions or other entities that are able to provide detailed financial information sufficient to enable Ex-Im to reach a credit conclusion.  Financial statements provided in support of the transaction should be audited by an affiliate of an international accounting firm and prepared in accordance with International Financial Reporting Standards (IFRS).

Coverage under the Working Capital Guarantee Program (WCGP) requires that the transaction be supported by an irrevocable Letter of Credit issued by a bank acceptable to Ex-Im Bank. Exceptions may be made for private sector transactions that are insured for comprehensive political and commercial risk.

INFORMATION SUPPLEMENT ON MEDIUM- AND LONG-TERM PROGRAMS

“Open for Cover” versus “Off-Cover.”  The attached Country Limitation Schedule indicates where Ex-Im Bank is “open for cover” and where Ex-Im Bank is “off-cover.” The Schedule is organized along three dimensions:  the country where the risk lies, sector (public sector or private sector), and term of total exposure (including both disbursement period and repayment term).  Ex-Im Bank defines “public sector” as including those obligors or guarantors which are at least 50% owned, directly or indirectly, by the government. Where the CLS presents an X mark, Ex-Im Bank is “off-cover,” and is therefore not willing to consider approval of routine transactions.  These “off-cover” determinations are due to economic and/or political risks associated with the country.

Where Ex-Im Bank is Open for Cover.  The “open for cover” designation refers to the possibility, rather than the certainty, of Ex-Im Bank support in particular cases.  Proposed obligors, guarantors, and transaction structures under medium- and long-term programs are all subject to case-by-case Ex-Im Bank approval.  Approval depends on the
case-by-case application of Ex-Im Bank policies, particularly Ex-Im Bank’s determination of reasonable assurance of repayment.  The following paragraphs provide very general guidance to the application of policies in markets where
Ex-Im Bank is on-cover.

Ÿ Identification of Obligor or Guarantor. Ex-Im Bank will approve a final commitment, a preliminary commitment (PC), or a medium-term insurance policy or commitment (MTIP or MTIC), only if a specific obligor or guarantor has been identified. Ex-Im Bank may approve an indicative letter of interest (LI) for a proposed transaction, subject to the condition that an obligor or guarantor is identified at the time the LI is converted to a final commitment, PC, MTIP, or MTIC; and Ex-Im Bank can accept the credit risk of the proposed obligor or guarantor.

Ÿ Information Requirements regarding Obligors or Guarantors.  Ex-Im Bank requires that obligors or guarantors offer “reasonable assurance of repayment.”  To process applications for final commitments, PCs, MTIPs, and MTICs, Ex-Im Bank will first require information on proposed obligors and guarantors.  Such information includes financial statements and credit references.  Engineering data is required for long-term transactions. Generally, Ex-Im Bank will require more detailed information regarding obligors or guarantors when processing relatively large transactions, or transactions with obligors or guarantors with which Ex-Im Bank has had no favorable direct credit experience.  Ex-Im Bank’s application form and program literature specify the Bank’s standard information requirements.

Ÿ Sovereign Guarantees for Public Sector Buyers or Obligors.  For cases involving proposed public sector buyers or obligors which do not have significant independent sources of revenue outside the central government budget and which do not have independently audited financial statements, Ex-Im Bank will routinely require a sovereign guarantee.

Ÿ Prior Evidence of Host Government Willingness to Provide Sovereign Guarantee in Some Countries.  In some countries, Ex-Im Bank requires applications for a final commitment for a medium- or long-term loan or guarantee, or for medium-term insurance, to be accompanied by prior evidence of the host government=s willingness to provide a sovereign guarantee.

ŸTemporary Suspension of Cover.  In countries where the CLS indicates that Ex-Im Bank is “open for cover,” Ex-Im Bank may, under certain circumstances, temporarily suspend cover.  This is most likely to be the case for public sector obligors and guarantors only, but may involve all obligors and guarantors.  In such an event, Ex-Im Bank will advise applicants as quickly as possible.

Ÿ Large Transactions in Smaller Markets.  Relatively large transactions in smaller economies, even when sovereign guaranteed, will be subject to special Ex-Im Bank review.  Ex-Im Bank will review the 

potential macroeconomic impacts of the transaction, in terms of higher debt burden and debt repayment capacity.

ŸPrivate Companies.  Ex-Im Bank will accept the direct credit risks of private buyers, if available information suggests that these buyers offer a “reasonable assurance of repayment.”  For closely held companies, Ex-Im Bank may require financial information from owners.  For holding companies, Ex-Im Bank may require financial information on operating components, and may require their counter-guarantee.

Ÿ Commercial Bank Guarantees.   Ex-Im Bank may require the guarantees of acceptable commercial banks in the event that information available to Ex-Im Bank on proposed private buyers suggests that these buyers by themselves do not offer a “reasonable assurance of repayment.”

ŸLimited-Recourse Projects.  Ex-Im Bank will consider limited-recourse project finance structures (those without full recourse to an acceptable, established obligor or guarantor), but only after a comprehensive review of project features.  These features shall include the financial commitment of the project’s equity shareholders over the life of the proposed Ex-Im Bank commitment; the experience and capacity of project participants, including suppliers and offtakers; project cash flow coverage of foreign currency debt service; and security structures, including hard currency external payments arrangements.  Ex-Im Bank will review only well- developed proposals, and will require project sponsors to fund review of project proposals by consultants retained by the Bank.  Significant changes to proposed structures may be required.

Ÿ Political-Only Cover. Ex-Im Bank’s standard guarantee and insurance cover is “comprehensive,” under which Ex-Im Bank will pay claims resulting from both commercial and political perils.  For private borrowers, Ex-Im Bank also offers a narrower form of coverage,  under “political-only” cover.  Ex-Im Bank’s guarantee agreements and insurance policies describe in detail and/or define the specific risks which are subject to this form of coverage.

The following is intended as a summary:  For long-term transactions, Ex-Im Bank covers default arising from four “core” perils:  transfer risk, expropriation, U.S. export license risk and political violence.  Transfer risk involves borrowers’ inability to acquire foreign exchange through legal foreign exchange markets. Expropriation involves the government’s confiscation of assets or ownership, or arbitrary or discriminatory intervention in business operations.  U.S. export license risk involves the cancellation or non-renewal of a U.S. export license or imposition of certain restrictions on such license after shipment.  Political violence involves war, revolution, insurrection, and other such acts.  Under medium-term insurance policies, Ex-Im Bank also covers defaults arising from other defined risks.

Suppliers and/or lenders choosing political-only cover must be prepared to assume broad commercial risks associated with the borrower’s capacity.  Ex-Im Bank’s political-only cover does not cover defaults arising
from the borrower’s capacity to withstand domestic or international commercial market disruptions, or currency
devaluation or depreciation.  If suppliers and/or lenders are unable to assume these and other commercial risks, then Ex-Im Bank comprehensive cover would be a more appropriate form of coverage.

Political-only cover is offered only for private buyers or borrowers, those which are not subject to the administration of government authorities, and for which it is possible to distinguish between commercial perils and political risk perils.  Political-only cover is not available for guaranteed lenders that are majority-owned or controlled by the host country government.  Political-only cover is the only form of coverage available from
Ex-Im Bank for borrowers which are effectively controlled by suppliers and/or lenders participating in transactions. Political-only cover is available only in those countries where Ex-Im Bank is “open for cover” for
private sector risk.

Where Ex-Im Bank is Off Cover for Country Credit Reasons.  Ex-Im Bank will not consider routine transactions in countries and sectors (public or private) where the country limitation schedule indicates that the Bank is off-cover (where there is an X).  However, four special categories of transactions may be eligible for
Ex-Im Bank support, under restrictive conditions, subject to additional special review:

		
	Ÿ
	Borrowers on International Capital Markets.  Individual borrowers (either public sector or private sector) with a strong record of independent access or those borrowers which in Ex-Im Bank’s opinion could have access to private international capital markets or other international sources of funds, absent external (including sovereign) guarantees.  The fee grade assigned, and the extent of Ex-Im Bank support, will take into account information related to the borrower’s financings and ratings.  For Ex-Im Bank to consider such borrowers, information on the borrower’s international borrowings for at least the last six months must accompany the application.  For each traded debt security, the required information includes the maturity and coupon, credit ratings (if any), and recent yield data.  For syndicated loans, the required information includes interest rates, arranging fees, maturity profile, amounts borrowed, and names of arranging and key participating banks.

		
	Ÿ
	Insulated Project Finance Structures.  Ex-Im Bank’s approval in “off-cover” markets/sectors of limited- recourse structures depends on the establishment of structures which do not require the financial or operating commitments of host government agencies and which are effectively insulated from government involvement. Furthermore, these structures must involve the channeling of project foreign exchange earnings through offshore payments and escrow mechanisms.  In some country environments, the only acceptable limited- recourse structures may be “enclave” projects which are almost completely insulated from the broader country environment.  The fee grade assigned, and the extent of Ex-Im Bank support, will take into account project structure and other conditions.

		
	Ÿ
	Secured Long-Range Aircraft Leases.  Ex-Im Bank approval of asset-secured long-range aircraft lease transactions requires that the airline’s country of registry become a signatory to international conventions protecting aircraft property rights. Ex-Im Bank approval for aircraft transactions in off-cover markets is more likely for privately owned airlines with established operating records. Depending on the nature of transaction participants and structures, Ex-Im Bank may also require offshore payments and escrow mechanisms, or may provide a reduced percentage of cover.  Aircraft transactions are subject to special fees and covenants.

Ÿ Acceptable Borrower Outside the Country. Support may be available if an acceptable financial institution
(e.g., commercial or multinational bank) outside of the country acts as the obligor.

It should be noted that these exceptions do not apply in countries where Ex-Im Bank is legally prohibited from operating.

EXPORT-IMPORT BANK
OF THE UNITED STATES

March  28, 2013

Randall  Mascorro
Vice President
J P Morgan  Chase  Bank,  N.A. Global  Trade  Services
Mail  Code  TXl-2805
2200  Ross  A venue,  6th  Floor
Dallas,  Texas  75201

		
	Re:
	Working   Capital  Guarantee   No.:   AP085877XA(B) Delegated   Authority   Letter  Agreement:   TX-DA-OS-OIO Borrower:   FuelCelJ  Energy,   Inc.  ("FCE"  or "Borrower) Revolving   Loan  Facility:   $8.0  million

Dear  Mr.  Mascorro:

Thank  you  for letter  of March   18,2013   regarding   the renewal  of the above-referenced    Loan Facility   and  Borrower.    As an accommodation    to the Borrower   and  based  upon  the information provided,   Ex-Im  Bank  hereby  consents   to the following:

Notwithstanding    Section   6 (a) "Minimum   Credit  Criteria  and Other  Requirements"    of the Delegated   Authority   Letter  Agreement,   Ex-Im  Bank  agrees  to waive  the requirement   for the Borrower   to compare  favorably   with  the lower  quartile  of its industry   (RMA  Statement   Studies) for at least 4 of the 7 specified   financial   ratios  for the most  recent  fiscal  year end.   Ex-Im  Bank acknowledges    the Borrower   met 2 of the 7 required  ratios  based  on FYE  10/31/12  Audited financial   statements.    Ex-Im  Bank  is granting  this  waiver  due to  the  fact  that  the Borrower,   which is a public  company,   has been  successful   at consistently   raising  cash.  The  Company   raised  $64 million  in proceeds   from  sale  of common   stock  in FY 2012  compared   to $33  million  in FY 2011.

The  Primary   Collateral   for the Loan  Facility  will  include  Export-Related    Accounts   Receivable, Export-Related    Inventory,   Export-Related    General   Intangibles,   domestic   accounts   receivable, domestic   inventory   and  domestic   general  intangibles.   Furthermore,    with  respect  to patents, trademarks,   and related  general   intangibles,   Ex-Im  Bank  acknowledges    that  the Lender  shall  rely upon  a general  UCC  blanket   filing.  Notwithstanding    Section  4.02  (b)(ii)  of the Master  Guarantee Agreement   concerning   the Primary   Collateral  requirements   for  a  Revolving   Loan  Facility,   Ex- Im Bank  will  allow  the $13.7  million  cash  collateral   that secures  the domestic   facilities  to remain as Secondary   Collateral,   and  not be considered   Other  Collateral.    Ex-Im  Bank  understands   that there  is $14.2  million  in committed   indebtedness   other  than the Ex-Im  Bank  line that  needs  the collateral   coverage   from  this  cash.

811 VERMONT     AVRNUF.,    N.w. WASHINGTON,       D.c. 20571

Ex-Im  Bank  understands    that  the Borrower  has  liens and  likely  future  liens  to be described  in the Loan  Authorization    Notice   as Permitted   Liens  granted  in favor  of lessors  and debtors  for specific manufacturing    equipment   and  leased  equipment.   Notwithstanding     Section   4.02  (b) and (c) of the Mater  Guarantee   Agreement,    Ex-Irn  Bank  will allow  this collateral   that secures  the non-Ex-Im Bank  Guaranteed   debt  to be excluded   from  Secondary   Collateral,   Other  Assets  and Other Collateral   as there  is approximately    $4.0  million  in committed   indebtedness    other  than  the Ex-Im line  that requires   the collateral   coverage   from  these  assets.  Ex-Im  Bank  understands   that FCE entered  into  a 10-year  loan  agreement   with the Connecticut   Development    Authority   to finance equipment   purchases   associated   with  manufacturing   capacity   expansion   allowing  for a maximum borrowing   of $4MM.  The  Connecticut   Development   Authority   and  the State  of Connecticut Department   of Public  Utility  Control  have provided   financing   to the Company   and both  holds liens  against  certain  equipment    and  power  plants.

Ex-Im  Bank  understands   that Fuel  Cell  has been  awarded   a $69  million  contract  with Dominion to develop  a 15 megawatt   fuel  cell  park  in Bridgeport,   Connecticut.   Additionally    Dominion   will pay  Fuel Cell  $68  million   over  the next  15 years  under  a long  term  service  contract.  Fuel  Cell  is in the process  of finalizing   a new $5.8  million  long term  loan,  and  a $1.5  million  grant  from  the State  of Connecticut's     Clean  Energy   and Finance  Authority   for this project.  The  term  loan  will be secured  with  a first  priority  security  interest  in all future  project  cash  flows  limited  to those generated   specifically    by the Bridgeport   Power  Plant  project  and  its rights  to receive  project funds  that  will  be escrowed.    Notwithstanding    Section  2.22(d)  of the Borrower   Agreement,   Ex- Im Bank  will  allow  the creation   of lien on the collateral   limited  to the future  cash  flows  specific to the Bridgeport   project.

Notwithstanding    Section   4.02(b)(i),  "Primary   Collateral",   of the Master   Guarantee   Agreement, Ex-Im  Bank  agrees  to allow  the Department   of Energy  (DoE)  to have  certain  rights  in specific patents  held  by FCE.   Ex-Im  Bank  understands   that under  an arrangement    agreed  to by the Borrower  and the DoE  Energy,   it has granted  specific  intellectual   property  rights  related  to the technology   granted  to the DoE  under  research  and development    agreements.   FCE  has a patent portfolio   including   80 US  patents,  of which  the DoE  only  has  rights  to nine.  The  rights  granted  to the DoE  do not prevent  FCE  from  granting  a lien in favor  of JP Morgan   Chase.  DoE's  march-in rights  may  only  be applied  in the event  that FCE fails  to proceed   with  commercialization     of the fuel cell technology,    and  DoE  determines   that it is beneficial   to the national   interest  to continue
the commercialization     of the technology.    Ex-Im  Bank  understands   that FCE  will be licensing   its General  Intangibles,   specifically    intellectual   property,   in the ordinary   course  of business   on an ongoing   basis  through   licensing   agreements.   This  is a primary   revenue   generating   activity   for FuelCell   which  will  translate   into Export-Related    Accounts   Receivable   for  the subject  $8.0 million  Revolving   Loan  Facility.

Ex-Im  Bank  understands    that  the Bon-ower  negotiated   a $181  million  contract  with POSCO
Power,  a South  Korean  company   for the sale of a 121.8  megawatt    fuel  cell power  kit through
2016,  and currently   also  has  an existing   $115.5  million  contract   with POSCO Power  for the sale of 11  70 megawatt   fuel cell  power  kit through  April  2013.  The  specific  Export-Related    Accounts
Receivable   and Export-Related     Inventory   related  only  to these  contracts   will  serve  as collateral for POSCO  Power  and  serve  as a purchase   money  security  interest.  This  security  interest  is
securing   advance  payments   that  POSCO  Power  will  be making  to Fuel  Cell.   Notwithstanding
Section  7(a)  "Collateralization"      of the Delegated   Authority   Letter  Agreement   and  Section   J  .01 "Eligible  Export-Related     Accounts   Receivable"   and  "Eligible   Export-Related    Inventory"   of the Borrower   Agreement,    Ex-Im  Bank  hereby  agrees  to allow  Export-Related    Accounts   Receivable and Export-Related    Inventory   related  to these  contracts   with  POSCO   Power,  to be excluded   from the primary  collateral   

requirement    of the subject  Loan  Facility.    Ex-1m Bank  understands   that all of this  collateral   will  be excluded   from  the JPMC  Export-Related    Borrowing   Base  during  the life of these  contracts.

In addition  to the contracts   mentioned   above,  Ex-Im  Bank  understands    that the Borrower   has  on- going  sales  to POSCO   Power,  which  has a 16% ownership   of the Borrower.   Ex-Im  Bank understands   that POSCO   Power,  which  is the largest  non-government    private  power  generating business  in South  Korea,   does  not currently   have  any  management    authority   or controlling interest  in the Borrower;    therefore,   notwithstanding    the definition   of "Eligible   Export-Related Accounts   Receivable"    (m)  in the Borrower   Agreemeent,   the Eligible   Export-Related    Account Receivable   can be considered     eligible,   assuming   they meet  all of the other  criteria  for eligibility as outlined   in the Borrower   Agreement.   If POSCO  Power  obtains   any controlling   interest, defined  as ownership   of 20%  or more,  or a management   role  in the Borrower,   then  the Lender would  need  to seek  a waiver  from  Ex-1m Bank  to maintain   these  receivables   as eligible.

Ex-Im  Bank  understands    that  Fuel  Cell's   Canadian   based  export   customer,   Enbridge,   Inc.,  is  a holder  of Series  1 preferred   shares  in Fuel  Cell's   Canadian   Subsidiary,   FCE  Ltd  as well  as a 10% ownership   interest   in Fuel  Cell.  Ex-Im  Bank  understands    that  Enbridge,   Inc.  does  not  currently have   any   management      authority     or   controlling     interest    in   the   Borrower;     therefore,     the Notwithstanding      the   definition    of   "Eligible   Export-Related     Accounts    Receivable"     (m),     the Eligible  Export-Related     Account   Receivable   can  be considered     eligible,   assuming   they  meet  all of  the  other   criteria   for  eligibility    as  outlined   in  the  Borrower    Agreement.    If  Enbridge,    Inc. obtains  any  controlling    interest,   defined   as ownership   of 20%  or more,  or a management    role  in the Borrower,   then  the  Lender   would  need  to seek  a waiver  from  Ex-Im  Bank  to maintain   these receivables   as eligible.

Notwithstanding     the  requirements,     as  set  forth  by  Sections   4.06(a)   and  4.06(b)   of  the  Master Guarantee    Agreement,     for  each   Disbursement     to  be  supported    by  Export   Orders,   JPMorgan Chase  Bank  may  make   Credit  Accommodations    against  Eligible   Export-Related    Inventory   (as a percentage   of the  Borrower's    total  eligible  Inventory)   based  upon  the Borrower's    export  sales  as a percentage   of its total  sales,  as determined   by  the  Borrower's    prior  six-month   sales  mix.   As  a condition    of  this  waiver,   the  Lender   shall  ensure   accurate   reporting    by  the  Borrower    (of  its export  sales  as a percentage   of total  sales)  via quarterly   examinations    of the Borrower's    records.

Notwithstanding    Section   4.08  (d) of the Master  Guarantee   Agreement   entitled,  "Inspections    and Reviews"   that requires   Lender   to review  a 10% sampling   of the Export  Order  Summaries   once each quarter  in the event  Lender  elects  to make  Credit  Accommodations     based  upon  summaries of the Export  Orders,  Ex-Im  Bank  will  allow  the Export  Order  Summaries,   which  are submitted
as part of the monthly   reporting,   to be conducted   once  a year  as part of the annual  collateral   field
exam.  Ex-Im  Bank  understands    that each  annual  exam  will  include  the required  quarterly
reviews  for the preceding   four quarters.These waivers are granted solely with respect to the subject Loan Facility, and shall not be deemed to apply to any other loan or Borrower, without Ex-Irn Bank's  prior written consent.    All other terms and conditions of the Master Guarantee Agreement and the Delegated Authority Letter Agreement shall remain in full force and effect.

Please retain letter in your records, and do not forward a copy to Ex-Im Bank unless requested
Should you have any questions, please contact Mario Ramirez, Director, at (202) 565 -3785.

Sincerely,

Pamela S. Bowers
Vice President
Business Credit Division

	
		
	Name of Lender:                                                                             Name:
	

	 
	 

	Title:

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