Document:

ex_414582.htm

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this “Agreement”) is dated as of August 18, 2022 by and among ENDI Corp., a Delaware corporation (the “Company”), and the purchaser identified on the signature pages hereto (the “Purchaser”).

 

RECITALS

 

A.         The Company has entered into that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of December 29, 2021, by and among the Company, Cohanzick Management, LLC, CrossingBridge Advisors, LLC, Zelda Merger Sub 1, Inc., Zelda Merger Sub 2, LLC, and Enterprise Diversified, Inc.

 

B.         Pursuant to the terms of the Merger Agreement, Purchaser has the right, and has elected, to purchase from the Company ______ shares of Class A common stock (the “Common Stock”) of the Company (the “Shares”), for an aggregate purchase price of $______ (the “Purchase Price”), which Purchase Price was calculated based on a price per Share of $5.369.

 

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

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser hereby agree as follows:

 

ARTICLE I

    DEFINITIONS

 

1.1.    Definitions. Capitalized terms used but not defined herein shall have the same meaning ascribed to them in the Merger Agreement. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1:

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Agreement” shall have the meaning ascribed to such term in the Preamble.

 

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York are open for the general transaction of business.

 

“Closing” means the closing of the purchase and sale of the Shares pursuant to this Agreement.

 

“Closing Date” means August 18, 2022.

 

“Commission” has the meaning set forth in the Recitals.

 

“Common Stock” shall have the meaning ascribed to such term in the Recitals.

 

“Company” shall have the meaning ascribed to such term in the Preamble.

 

“Control” (including the terms “controlling,” “controlled by” or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Covered Person” has the meaning set forth in Section 3.1(i).

 

“Disqualifying Event” has the meaning set forth in Section 3.1(r).

 

“Encumbrance” has the meaning set forth in the Merger Agreement.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“GAAP” means U.S. generally accepted accounting principles, as applied by the Company.

 

“Knowledge” means the actual knowledge of each of Alea Kleinhammer, Jessica Greer and Steven Kiel, in each case, after due inquiry.

 

“Mandatory Shares” has the meaning set forth in the Recitals.

 

“Optional Shares” has the meaning set forth in the Recitals.

 

“Person” means an individual, corporation, partnership, limited liability Bank, trust, business trust, association, joint stock Bank, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Purchase Price” has the meaning set forth in the Recitals.

 

“Purchaser” has the meaning ascribed to such term in the Preamble.

 

“Registration Rights Agreement” means a registration rights agreement substantially in the form of Exhibit A, pursuant to which the Company shall file a registration statement under the Securities Act to register the resale of the Shares.

 

“Regulation D” has the meaning set forth in the Recitals.

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Securities Act” has the meaning set forth in the Recitals.

 

“Shares” has the meaning set forth in the Recitals.

 

“Transaction Documents” means this Agreement, the Registration Rights Agreement, and any other documents or agreements executed by the Company or the Purchaser in connection with the transactions contemplated hereunder.

 

ARTICLE II

    PURCHASE AND SALE

 

2.1.    Share Purchase; Sale and Delivery to Purchaser; Closing.

 

(a)    Shares of Common Stock. Subject to the terms and conditions set forth in this Agreement, the Company shall issue and sell to the Purchaser, and the Purchaser agrees to purchase from the Company, the Shares.

 

(b)    Closing. The Closing of the purchase of the Shares pursuant to this Agreement shall take place remotely by electronic exchange of documents on the Closing Date, or at such other location as the parties may mutually agree.

 

(c)    Payment for the Shares. On the Closing Date, the Purchaser shall pay to the Company the Purchase Price, in U.S. dollars and in immediately available funds, by wire transfer to the account provided by the Company.

 

(d)    Delivery of the Shares. At the Closing, the Company shall deliver to the Purchaser, in book-entry form, the Shares.

 

2.2.    Conditions Precedent to Closing.

 

(a)    Conditions to the Purchaser’s Obligation. The obligation of the Purchaser to consummate the purchase of the Shares from the Company on the Closing Date and to effect the Closing is subject to delivery by or at the direction of the Company to the Purchaser or the written waiver by the Purchaser prior to the Closing of such delivery of this Agreement and the Registration Rights Agreement, duly authorized and executed by the Company.

 

(b)    Conditions to the Company’s Obligation. The obligation of the Company to consummate the sale of the Shares to the Purchaser on the Closing Date, and to effect the Closing is subject to delivery by or at the direction of the Purchaser or the written waiver by the Company prior to the Closing of such delivery of:

 

(i)    this Agreement and the Registration Rights Agreement, duly authorized and executed by the Purchaser; and

 

(ii)    the Purchase Price, in U.S. dollars and in immediately available funds, by wire transfer to the account provided by the Company.

 

ARTICLE III

    REPRESENTATIONS AND WARRANTIES

 

3.1.    Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser that:

 

(a)    Organization and Qualification. The Company is an entity duly incorporated, validly existing and in good standing under the laws of Delaware, with the requisite power and authority to own or lease and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation of any of the provisions of its certificate of incorporation or bylaws. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary.

 

(b)    Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder in accordance with the terms hereof. The Company’s execution and delivery of each of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, its Board of Directors or its shareholders in connection therewith. Each of the Transaction Documents has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof or thereof, will constitute the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except (i) as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c)    No Conflicts. The execution, delivery and performance by the Company of the Transaction Documents and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the issuance of the Shares) do not and will not (i) conflict with or violate any provisions of the Company’s certificate of incorporation or bylaws, (ii) conflict with, constitute a default (or an event that with notice or lapse of time or both would result in a default) under or result in the creation of any Encumbrance upon, any of the properties or assets of the Company or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material contract, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations and the rules and regulations thereunder, or of any self-regulatory organization to which the Company or its securities are subject) assuming, without investigation, the correctness of the representations and warranties made by the Purchaser herein, or by which any property or asset of the Company is bound or affected, except in the case of clauses (ii) and (iii) such as would not have or reasonably be expected to have, individually or in the aggregate, a material adverse effect.

 

(d)    Filings, Consents and Approvals. No governmental orders, permissions, consents, approvals or authorizations are required to be obtained by the Company that have not been obtained, and no registrations or declarations are required to be filed by the Company that have not been filed in connection with, or, in contemplation of, the execution and delivery of, and performance under, the Transaction Documents, except for applicable requirements, if any, of the Securities Act, the Exchange Act or state securities laws or “blue sky” laws of the various states and any applicable federal or state banking laws and regulations that are to be filed after the date hereof.

 

(e)    Issuance of the Shares of Common Stock. The Common Stock has been duly authorized for issuance by the Company and, when the Shares are issued, delivered and paid for in accordance with this Agreement, will be validly issued, fully paid and nonassessable, free and clear of any Encumbrance, and will not have been issued in violation of or subject to any preemptive rights, rights of first refusal or similar right arising by operation of law, or under the certificate of incorporation or bylaws of the Company, or under any agreement to which the Company is a party. 

 

(f)    Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2 of this Agreement, no registration under the Securities Act is required for the offer and sale of Shares by the Company to the Purchaser under the Transaction Documents.

 

(g)    No Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, none of the Company, to the Company’s Knowledge, any of its Affiliates or any Person acting on its behalf has, directly or indirectly, at any time within the past six (6) months, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Shares as contemplated hereby.

 

(h)    No General Solicitation or General Advertising. Neither the Company nor, to the Company’s Knowledge, any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Shares to the Purchaser pursuant to the Transaction Documents.

 

(i)    No “Bad Actor” Disqualification. To the Company’s Knowledge, no “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualifying Event”) is applicable to the Company or, to the Company’s Knowledge any Covered Person, except for a Disqualifying Event as to which Rule 506(d)(2)(ii-iv) or (d)(3) of the Securities Act is applicable. “Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, any person listed in the first paragraph of Rule 506(d)(1).

 

3.2.    Representations and Warranties of Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:

 

(a)    Organization; Authority.

 

(i)    The execution, delivery and performance by the Purchaser of the applicable Transaction Documents to which it is a party and the transactions contemplated by this Agreement have been duly authorized. Each of the applicable Transaction Documents to which the Purchaser is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

(b)    No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of the Purchaser (if the Purchaser is an entity), (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or government entity to which the Purchaser is subject (including federal and state securities laws and regulations and the rules and regulations thereunder) applicable to the Purchaser, except in the case of clauses (ii) and (iii), as would not have or reasonably be expected to have, individually or in the aggregate, a material adverse effect.

 

(c)    Investment Intent. The Purchaser understands that the Shares are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Shares as principal for its own account and not with a view to, or for distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable state securities laws. The Purchaser does not presently have any agreement, plan or understanding, directly or indirectly, with any Person to distribute or effect any distribution of any of the Shares to or through any person or entity.

 

(d)    Purchaser Status. The Purchaser is and will be on the Closing Date (i) an “accredited investor” as such term is defined in Rule 501(a) of Regulation D, or (ii) a Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act.

 

(e)    General Solicitation. The Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other form of “general solicitation” or “general advertising” (as such terms are used in Regulation D promulgated under the Securities Act and interpreted by the Commission).

 

(f)    Experience of Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed decision with respect to its acquisition of the Shares. The Purchaser is capable of protecting its own interests in connection with this investment and has experience as an investor in securities of companies such as the Company. The Purchaser is able to hold the Shares indefinitely if required, is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment. The Purchaser has all applicable legal power and authority to hold the Shares, and there is no law regulation, order, judgment or decree applicable to the Purchaser that would prohibit the Purchaser from holding the Shares indefinitely. The Purchaser understands that no representation is being made as to the future trading value or trading volume of the Shares.

 

(g)    Access to Information. The Purchaser acknowledges that (i) it is not being provided with the disclosures that would be required if the offer and sale of the Shares were registered under the Securities Act, nor is it being provided with any offering circular or prospectus prepared in connection with the offer and sale of the Shares; (ii) it has conducted its own examination of the Company and the terms of the Common Stock to the extent it deems necessary to make its decision to purchase the Shares; and (iii) it has availed itself of publicly available financial and other information concerning the Company to the extent it deems necessary to make its decision to purchase Shares.

 

(h)    Brokers and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest or claim against or upon the Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the Purchaser.

 

(i)    Independent Investment Decision. The Purchaser has independently evaluated the merits of its decision to purchase Shares of the Common Stock pursuant to the Transaction Documents, and the Purchaser confirms that it has not relied on the advice of the Company (or any of their respective agents, counsel or Affiliates). The Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Shares constitutes legal, regulatory, tax or investment advice. The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares.

 

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

 

(k)    No Governmental Review. The Purchaser understands that no U.S. federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Common Stock nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

3.3         The Company and the Purchaser acknowledge and agree that no party to this Agreement has made or makes any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Article III and the Transaction Documents.

 

ARTICLE IV

    OTHER AGREEMENTS OF THE PARTIES

 

4.1.    Transfer Restrictions.

 

(a)    Compliance with Laws. The Purchaser understands and acknowledges that the Shares of Common Stock are being sold by the Company without registration under the Securities Act in reliance on the exemption from federal and state registration set forth in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder and similar exemptions under applicable state securities laws, and accordingly, notwithstanding any other provision of this Article IV, the Purchaser covenants that the Shares may be resold, pledged or otherwise transferred only pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any applicable state, federal or foreign securities laws. The Company has not made or is making any representation, warranty or covenant, express or implied, as to the availability of any exemption from registration under the Securities Act or any applicable state securities laws for the resale, pledge or other transfer of the Shares. In connection with any transfer of the Shares other than (i) pursuant to an effective registration statement or (ii) to the Company, the Company may require the transferor thereof to provide to the Company, at the transferor’s expense, (A) a representation letter, the form and substance of which letter shall be reasonably satisfactory to the Company, verifying certain facts necessary to establish that the transfer does not require registration of such transferred securities under the Securities Act, and (B) if the Company reasonably determines that such representation letter does not clearly establish the facts necessary to establish that the transfer is permissible pursuant to Rule 144 without registration of the transferred securities, an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred securities under the Securities Act.

 

(b)    Legends. Certificates evidencing the Shares shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form until such time as not required under Section 4.1(c) or applicable law:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY.

 

(c)    Acknowledgement. The Purchaser acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise transfer the Shares or any interest therein without complying with the requirements of the Securities Act.

 

4.2.    No Integration. The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with the offer or sale of the Shares of Common Stock in a manner that would require the registration under the Securities Act of the sale of the Shares of the Common Stock to the Purchaser.

 

4.3.    Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for general corporate purposes.

 

4.4.    Confidentiality. Each party to this Agreement will hold, and will use commercially reasonable efforts to cause its respective subsidiaries and their directors, officers, employees, agents, consultants and advisors to hold, in strict confidence, unless disclosure to a governmental entity is necessary or appropriate in connection with any necessary regulatory approval, or request for information or similar process, or unless compelled to disclose by judicial or administrative process or, based on the advice of its counsel, by other requirement of law or the applicable requirements of any governmental entity (in which case, the party permitted to disclose such information shall, to the extent legally permissible and reasonably practicable, provide the other party with prior written notice of such permitted disclosure), all nonpublic records, books, contracts, instruments, computer data and other data and information (collectively, “Information”) concerning the other party hereto or its Affiliates furnished to it by such other party or its representatives pursuant to this Agreement (except to the extent that such Information can be shown to have been (1) previously known by such party on a nonconfidential basis, (2) in the public domain through no fault of such party or (3) later lawfully acquired from other sources by the party to which it was furnished), and neither party hereto shall release or disclose such Information to any other person, except its Affiliates, partners, auditors, attorneys, financial advisors, other consultants and advisors with the express understanding that such parties will maintain the confidentiality of the Information and, to the extent permitted above, to auditors and securities regulatory authorities; provided, however, that (i) the Purchaser is permitted to disclose Information to auditors and Company and securities regulatory authorities without prior written notice to the Company in connection with any audit or examination that does not explicitly reference the Company or this Agreement, (ii) the Purchaser may identify the Company and the number and value of the Purchaser’s security holdings in the Company in accordance with applicable investment reporting and disclosure regulations or internal policies without prior notice to or consent from the Company and (iii) each of the Company and Purchaser may disclose such information to such Person’s equity holders or Affiliates, and their respective representatives, but subject to the prior receipt of an applicable confidentiality agreement.

 

ARTICLE V

    MISCELLANEOUS

 

5.1.    Fees and Expenses. The parties hereto shall be responsible for the payment of all expenses incurred by them in connection with the preparation and negotiation of the Transaction Documents and the consummation of the transactions contemplated hereby. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Shares to the Purchaser.

 

5.2.    Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules, if any, thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchaser will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.

 

5.3.    Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in this Section prior to 5:00 p.m., Eastern time, on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in this Section on a day that is not a Business Day or later than 5:00 p.m., Eastern time, on any Business Day, (c) if sent by U.S. nationally recognized overnight courier service with next day delivery specified (receipt requested) the Business Day following delivery to such courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

 

	
			If to the Company:

				
			ENDI Corp.

			2400 Old Brick Road, Suite 115

			Glen Allen, Virginia 23060

			Attention: Alea Kleinhammer

			
	 	 
	
			With a copy (which shall not constitute notice) to:

				
			Seward & Kissel LLP

			One Battery Park Plaza

			New York, NY 10004

			Attention: Nick Katsanos

			 

			and

			 

			Sheppard, Mullin, Richter & Hampton LLP

			1901 Avenue of the Stars, Suite 1600

			Los Angeles, CA 90067

			Attention: Linda Michaelson

			
	 	 
	
			If to the Purchaser:

				 

 

or such other address as may be designated in writing hereafter, in the same manner, by such Person.

 

5.4.    Amendments; Waivers. No amendment or waiver of any provision of this Agreement will be effective with respect to any party unless made in writing and signed by a duly authorized representative of such party. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.5.    Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

 

5.6.    Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of the Purchaser. The Purchaser may assign its rights hereunder in whole or in part to any Person to whom the Purchaser assigns or transfers any of the Shares in compliance with the Transaction Documents and applicable law, provided such transferee shall agree in writing to be bound, with respect to the transferred Shares, by the terms and conditions of this Agreement that apply to “Purchaser.”

 

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

 

5.8.    Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced on an exclusive basis in the Delaware Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such Delaware Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

5.9.    Survival; Limitation on Liability. None of the representations and warranties contained in this Agreement or in any instrument delivered under this Agreement will survive the Closing. This Section 5.9 does not limit any covenant or agreement of the parties hereto contained in this Agreement which, by its terms, contemplates performance after the Closing. The Company shall not be liable to the Purchaser hereunder for damages arising in excess of the Purchaser’s Purchase Price.

 

5.10.    Execution. This Agreement may be executed in two counterparts, both of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

5.11.    Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

5.12.    Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser and the Company will be entitled to seek specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate.

 

[Signature Pages Follow]

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	 	
			ENDI CORP.

			By:         _______________________________

			Name: David Sherman

			Title: Chief Executive Officer

			
	 	 

 

 

 

 

 

 

 

	 	
			PURCHASER:

			By:         ______________________________

			Name:         

			Number of Shares of Common Stock to be acquired:

			Purchase Price:

			Address for Notice:

			Telephone:         

			Facsimile:         ________________

			Email:         

			
	
			Delivery Instructions:

			(if different than above)

				 

 

 

 

 

 

EXHIBIT A

 

REGISTRATION RIGHTS AGREEMENTmufg-constellationxamend

EXECUTION VERSION    AMENDMENT NO. 3 TO  RECEIVABLES PURCHASE AGREEMENT   AMENDMENT NO. 3 TO RECEIVABLES PURCHASE AGREEMENT, dated as of  August 16, 2022 (the “Amendment”), among NewEnergy Receivables LLC, a Delaware limited  liability company (the “Seller”), Constellation NewEnergy, Inc., a Delaware corporation, as initial  Servicer (the “Servicer”), PNC Bank, National Association (“PNC”), as a Financial Institution  and  as a Purchaser Agent, Mizuho Bank, Ltd. (“Mizuho”), as a Financial Institution and as a Purchaser  Agent, Victory Receivables Corporation (“Victory”), as a Conduit, and MUFG Bank, Ltd.  (“MUFG”), as a Financial Institution, as a Purchaser Agent and as Agent.  W  I  T  N  E  S  S  E  T  H :   WHEREAS, the Servicer, the Seller, PNC, Mizuho, Victory and MUFG have heretofore  entered into that certain Receivables Purchase Agreement, dated as of April 8, 2020 (as amended,  restated, supplemented, assigned or otherwise modified from time to time, the “Agreement”);   WHEREAS, concurrently herewith, the Agent and Constellation Energy Generation LLC  (formerly known as Exelon Generation Company, LLC, the “Performance Guarantor”) are  entering into that certain Amended and Restated Performance Guaranty, dated as of the date hereof  (the “Performance Guaranty”); and   WHEREAS, the Servicer, the Seller, the Conduit, the Financial Institutions, the Purchaser  Agents, and the Agent seek to modify the Agreement upon the terms hereof.  NOW, THEREFORE, in exchange for good and valuable consideration (the receipt and  sufficiency of which are hereby acknowledged and confirmed), the Servicer, the Seller, the  Conduit, the Financial Institutions, the Purchaser Agents and the Agent agree as follows:  A G R E E M E N T:  1. Definitions.  Unless otherwise defined or provided herein, capitalized terms used  herein have the meanings attributed thereto in (or by reference in) Exhibit I of the Agreement.  2. Amendments to the Agreement. As of the date hereof, the Agreement is hereby  amended  as follows:  (a) The Agreement is hereby amended to incorporate the changes reflected in  the fully conformed copy of the Agreement attached hereto as Exhibit A.  (b) Exhibit VIII to the Agreement is hereby replaced in its entirety with Exhibit  VIII attached hereto.    3. Conditions to Effectiveness.  This Amendment shall be effective as of the date  hereof, upon satisfaction of the following conditions precedent:  

 

   2     (a) Execution of the Amendment.  The Agent shall have received executed  counterparts of this Amendment duly executed by each of the parties hereto.  (b) Execution of the Performance Guaranty.  The Agent shall have received  executed counterparts of the Performance Guaranty duly executed by each of the parties  thereto.  (c) Receipt of the Upfront Fee.  The Agent shall have received evidence that  the Upfront Fees (as defined below) have been received by each Purchaser Agent.  (d) Deliverables.  The Agent shall have received on or before the date hereof  favorable copies of all documents, agreements, instruments, reports and opinions listed on  the closing list attached hereto as Exhibit B.    (e) Representations and Warranties. As of the date hereof, both before and after  giving effect to this Amendment and the transactions contemplated hereby, all of the  representations and warranties contained in the Agreement and in each other Transaction  Document shall be true and correct as though made on and as of the date hereof.  (f) No Amortization Event.  As of the date hereof, both before and after giving  effect to this Amendment and the transactions contemplated hereby, no Amortization Event  or Potential Amortization Event shall have occurred and be continuing.  4. Certain Representations and Warranties.  Each of the Servicer and the Seller  represents and warrants to each other, the Financial Institutions, the Conduit, the Purchaser Agents  and the Agent as follows:  (a) Representations and Warranties.  Both before and after giving effect to this  Amendment and the transactions contemplated hereby, all of its respective representations  and warranties contained in the Agreement and each other Transaction Document to which  it is a party are true and correct as though made on and as of the date hereof.  (b) Due Authorization, Validity, etc. The execution and delivery by it of this  Amendment, and the performance of its obligations under this Amendment, the Agreement  (as amended hereby) and the other Transaction Documents to which it is a party are within  its organizational powers and have been duly authorized by all necessary organizational  action on its part, and this Amendment, the Agreement (as amended hereby) and the other  Transaction Documents to which it is a party are its valid and legally binding obligations,  enforceable in accordance with its terms, subject to the effect of bankruptcy, insolvency,  reorganization or other similar laws affecting the enforcement of creditors’ rights generally  and by general principles of equity (regardless of whether enforcement is sought in a  proceeding in equity or at law).  (c) No Amortization Event.  No Amortization Event or Potential Amortization  Event has occurred and is continuing, or would occur as a result of this Amendment or the  transactions contemplated hereby.  5. Reference to and Effect on the Agreement and the Transaction Documents.  

 

   3     (a) From and after the effectiveness of this Amendment, each reference in the  Agreement to “this Agreement”, “hereof”, “herein”, “hereunder” or words of like import,  and each reference in each of the other Transaction Documents to the “Receivables  Purchase Agreement”, “thereunder”, “thereof” or words of like import, in each case  referring to the Agreement, shall mean and be, a reference to the Agreement, as amended  hereby.  (b) The Agreement (except as specifically amended herein) and the other  Transaction Documents are hereby ratified and confirmed in all respects by each of the  parties hereto and shall remain in full force and effect in accordance with its respective  terms.  (c) The execution, delivery and effectiveness of this Amendment shall not,  except as expressly provided herein, operate as a waiver of or amendment to, any right,  power or remedy of the Agent, the Conduit, any Financial Institution or any Purchaser  Agent under, nor constitute a waiver of or amendment to, any other provision or condition  under, the Agreement or any other Transaction Document.  6. Costs and Expenses.  Seller shall reimburse Agent, each Purchaser Agent, each  Financial Institution and the Conduit on demand for all costs and out-of-pocket expenses in  connection with the preparation, negotiation, arrangement, execution and delivery of this  Amendment, the transactions contemplated hereby and the other documents to be delivered  hereunder, including without limitation, reasonable fees and out-of-pocket expenses of legal  counsel for the Conduit, any Financial Institution, any Purchaser Agent and/or Agent (which such  counsel may be employees of the Conduit, any Financial Institution, any Purchaser Agent or  Agent) with respect thereto and with respect to advising the Conduit, any Financial Institution, any  Purchaser Agent and/or Agent as to their respective rights and remedies under this Amendment.    7. CHOICE OF LAW.  THIS AMENDMENT SHALL BE GOVERNED AND  CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK  (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF  THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF  LAW PROVISIONS THEREOF.  8. Transaction Documents.  This Amendment is a Transaction Document executed  pursuant to the Agreement and shall be construed, administered and applied in accordance with  the terms and provisions thereof.  9. Integration.  This Amendment, together with the Agreement, contain the final and  complete integration of all prior expressions by the parties hereto with respect to the subject matter  hereof and shall constitute the entire agreement among the parties hereto with respect to the subject  matter hereof superseding all prior oral or written understandings.  10. Severability.  Any provisions of this Amendment which are prohibited or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such  prohibition or unenforceability without invalidating the remaining provisions hereof, and any such  

 

   4     prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such  provision in any other jurisdiction.  11. Counterparts.  This Amendment may be executed in any number of counterparts  and by different parties hereto in separate counterparts, each of which when so executed shall be  deemed to be an original and all of which when taken together shall constitute one and the same  agreement.  12. Headings.  The captions and headings of this Amendment are included herein for  convenience of reference only and shall not affect the interpretation of this Amendment.  13. Upfront Fee.  As consideration for the Purchasers entering into this Amendment,  the Seller and Servicer, jointly and severally agree to pay, on or prior to the date hereof, the  following fully earned and nonrefundable Upfront Fees (the “Upfront Fees”): (i) to MUFG as  Purchaser Agent for the benefit of the Purchasers in its Purchaser Group, $367,068.49; (ii) to PNC,  as Purchaser Agent for the benefit of the Purchasers in its Purchaser Group, $275,301.37; and (iii)  to Mizuho, as a Purchaser Agent for the benefit of the Purchasers in its Purchaser Group,  $275,301.37; provided, that for convenience, to the extent any Incremental Purchase is to occur on  the date hereof, the Upfront Fees shall be netted by the Purchasers in such Purchaser Group against  the Cash Purchase Price to be paid by such Purchaser in respect of such Incremental Purchase  occurring on the date hereof.  Such Upfront Fees shall be fully earned as of the date hereof, shall  be payable by wire transfer in lawful money of the United States of America in immediately  available funds and shall not reduce or modify any other fees, costs, expenses or other amounts  owed to the Agent, any Purchaser Agent, any Financial Institution or MUFG pursuant to the  Agreement or any other Transaction Document.      [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]    

 

   S-1 Amendment No. 3 to RPA    IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be  executed by their respective officers thereunto duly authorized, as of the date first above written.    NEWENERGY RECEIVABLES LLC      By:________________________________  Name:   Title:         CONSTELLATION NEWENERGY, INC.,  as Servicer      By:________________________________  Name:   Title:          

 

    S-2 Amendment No. 3 to RPA    MUFG BANK, LTD., as a Financial Institution      By: _____________________________________  Name:   Title:          VICTORY RECEIVABLES CORPORATION, as a  Conduit      By: _____________________________________  Name:   Title:          MUFG BANK, LTD., as a Purchaser Agent      By:________________________________  Name:   Title:           MUFG BANK, LTD., as Agent      By:________________________________  Name:   Title:           

 

    S-3 Amendment No. 3 to RPA    PNC BANK, NATIONAL ASSOCIATION, as a  Purchaser Agent      By:________________________________  Name:   Title:               PNC BANK, NATIONAL ASSOCIATION, as a  Financial Institution      By:________________________________  Name:   Title:          

 

    S-4 Amendment No. 3 to RPA    MIZUHO BANK, LTD., as a Purchaser Agent      By:________________________________  Name:   Title:           MIZUHO BANK, LTD., as a Financial Institution      By:________________________________  Name:   Title:        

 

EXECUTION VERSION  Exhibit A to Amendment No. 3 dated as of August 16, 2022      EXHIBIT A  RECEIVABLES PURCHASE AGREEMENT    dated as of April 8, 2020    among    NEWENERGY RECEIVABLES LLC, as Seller,    CONSTELLATION NEWENERGY, INC., as Servicer,    THE CONDUITS PARTY HERETO,    THE FINANCIAL INSTITUTIONS PARTY HERETO,    THE PURCHASER AGENTS PARTY HERETO,  THE CO-ARRANGERS PARTY HERETO    and    MUFG BANK, LTD.,  as Agent    

 

TABLE OF CONTENTS    Page   i     ARTICLE I PURCHASE ARRANGEMENTS ................................................................... 1  Section 1.1 Purchase Facility .................................................................................. 1  Section 1.2 Increases; Sale of Asset Portfolio ........................................................ 2  Section 1.3 Decreases ............................................................................................. 3  Section 1.4 Payment Requirements ........................................................................ 3  Section 1.5 Taxes .................................................................................................... 3  Section 1.6 Reinvestments ...................................................................................... 6  Section 1.7 RPA Deferred Purchase Price .............................................................. 6  ARTICLE II PAYMENTS AND COLLECTIONS .............................................................. 6  Section 2.1 Payments .............................................................................................. 6  Section 2.2 Collections Prior to Amortization ........................................................ 7  Section 2.3 Collections Following Amortization.................................................... 8  Section 2.4 Ratable Payments ................................................................................. 9  Section 2.5 Payment Rescission ............................................................................. 9  Section 2.6 Maximum Purchases In Respect of the Asset Portfolio..................... 10  Section 2.7 Limitation on Payments ..................................................................... 10  ARTICLE III CONDUIT PURCHASES ............................................................................. 10  Section 3.1 CP Costs ............................................................................................. 10  Section 3.2 CP Costs Payments ............................................................................ 10  Section 3.3 Calculation of CP Costs ..................................................................... 10  ARTICLE IV FINANCIAL INSTITUTION FUNDING ..................................................... 11  Section 4.1 Financial Institution Funding ............................................................. 11  Section 4.2 Financial Institution Yield Payments and Calculations ..................... 11  Section 4.3 Inability to Determine Rates; Change in Legality; Benchmark  Replacement Setting .......................................................................... 11  Section 4.4 Extension of Scheduled Termination Date ........................................ 18  Section 4.5 Term SOFR Conforming Changes..................................................... 19  Section 4.6 Compensation for Losses ................................................................... 20  ARTICLE V REPRESENTATIONS AND WARRANTIES.............................................. 20  Section 5.1 Representations and Warranties of the Seller Parties ........................ 20  ARTICLE VI CONDITIONS OF PURCHASES ................................................................. 25  Section 6.1 Closing Date; Conditions Precedent to Initial Purchase .................... 25  

 

TABLE OF CONTENTS  (continued)  Page     ii     Section 6.2 Conditions Precedent to All Purchases .............................................. 25  ARTICLE VII COVENANTS ............................................................................................... 26  Section 7.1 Affirmative Covenants of The Seller Parties ..................................... 26  Section 7.2 Negative Covenants of The Seller Parties ......................................... 34  ARTICLE VIII ADMINISTRATION AND COLLECTION ................................................. 36  Section 8.1 Designation of Servicer...................................................................... 36  Section 8.2 Duties of Servicer .............................................................................. 36  Section 8.3 Collection Notices .............................................................................. 38  Section 8.4 Responsibilities of Seller ................................................................... 38  Section 8.5 Reports ............................................................................................... 38  Section 8.6 Servicing Fees .................................................................................... 38  ARTICLE IX AMORTIZATION EVENTS......................................................................... 39  Section 9.1 Amortization Events .......................................................................... 39  Section 9.2 Remedies ............................................................................................ 41  ARTICLE X INDEMNIFICATION.................................................................................... 42  Section 10.1 Indemnities by the Seller ................................................................... 42  Section 10.2 Indemnities by the Servicer ............................................................... 45  Section 10.3 Increased Cost and Reduced Return .................................................. 46  Section 10.4 Other Costs and Expenses .................................................................. 46  Section 10.5 Allocations ......................................................................................... 47  Section 10.6 Accounting Based Consolidation Event ............................................ 47  ARTICLE XI AGENT .......................................................................................................... 47  Section 11.1 Authorization and Action ................................................................... 47  Section 11.2 Delegation of Duties .......................................................................... 48  Section 11.3 Exculpatory Provisions ...................................................................... 48  Section 11.4 Reliance by Agent .............................................................................. 48  Section 11.5 Non-Reliance on Agent and Other Purchasers .................................. 49  Section 11.6 Reimbursement and Indemnification ................................................. 49  Section 11.7 Agent in its Individual Capacity ........................................................ 49  Section 11.8 Successor Agent ................................................................................. 49  Section 11.9 Co-Arrangers...................................................................................... 50  

 

TABLE OF CONTENTS  (continued)  Page     iii     Section 11.10 Erroneous Payments........................................................................... 50  ARTICLE XII ASSIGNMENTS; PARTICIPATIONS ......................................................... 53  Section 12.1 Assignments ....................................................................................... 53  Section 12.2 Participations...................................................................................... 54  Section 12.3 Federal Reserve .................................................................................. 55  Section 12.4 Collateral Trustee ............................................................................... 55  ARTICLE XIII PURCHASER AGENTS ............................................................................... 55  Section 13.1 Purchaser Agents ............................................................................... 55  ARTICLE XIV MISCELLANEOUS ...................................................................................... 56  Section 14.1 Waivers and Amendments ................................................................. 56  Section 14.2 Notices ............................................................................................... 57  Section 14.3 Ratable Payments ............................................................................... 57  Section 14.4 Protection of Ownership Interests of the Purchasers ......................... 57  Section 14.5 Confidentiality ................................................................................... 58  Section 14.6 Bankruptcy Petition ........................................................................... 59  Section 14.7 Limitation of Liability........................................................................ 59  Section 14.8 CHOICE OF LAW ............................................................................ 59  Section 14.9 CONSENT TO JURISDICTION ....................................................... 60  Section 14.10 WAIVER OF JURY TRIAL .............................................................. 60  Section 14.11 Integration; Binding Effect; Survival of Terms ................................. 60  Section 14.12 Counterparts; Severability; Section References................................. 61  Section 14.13 MUFG Roles and Purchaser Agent Roles ......................................... 61  Section 14.14 Characterization ................................................................................. 61  Section 14.15 Excess Funds ...................................................................................... 62  Section 14.16 USA PATRIOT Act Notice ............................................................... 62  Section 14.17 Acknowledgement and Consent to Bail-In of Affected  Financial Institutions .......................................................................... 63  Section 14.18 Securitisation Regulation; Information; Indemnity ........................... 63  

 

  iv    EXHIBITS    Exhibit I -   Definitions  Exhibit II  - Form of Purchase Notice  Exhibit III - Places of Business of the Seller Parties; Locations     of Records; Federal Employer Identification Number(s)  Exhibit IV - Names of Collection Banks; Collection Accounts  Exhibit V - Form of Compliance Certificate  Exhibit VI - Addresses for Notices  Exhibit VII - Form of Assignment Agreement  Exhibit VIII - Credit and Collection Policy  Exhibit IX - [Reserved]   Exhibit X - Form of Monthly Report  Exhibit XI - Subject Obligor  Exhibit XII - Closing Memorandum      SCHEDULES  Schedule A  - Commitments, Payment Addresses, Purchaser Agents, Related       Financial Institutions and Co-Arrangers       

 

  v    INDEX OF DEFINED TERMS   DEFINED IN THE BODY OF THE AGREEMENT  Agent ............................................................................................................................................... 1  Aggregate Reduction ...................................................................................................................... 3  Amortization Event ....................................................................................................................... 33  Asset Portfolio ................................................................................................................................ 3  Assignment Agreement ................................................................................................................. 45  Closing Date.................................................................................................................................. 19  Conduits .......................................................................................................................................... 1  Consent Notice .............................................................................................................................. 12  Consent Period .............................................................................................................................. 12  EU Losses ..................................................................................................................................... 56  Extension Notice ........................................................................................................................... 12  Financial Institutions ....................................................................................................................... 1  Impacted Financial Institution ...................................................................................................... 45  Incremental Purchase ...................................................................................................................... 1  Indemnified Amounts ................................................................................................................... 37  Indemnified Party.......................................................................................................................... 37  Intended Tax Treatment ................................................................................................................ 54  Investment Company Act ............................................................................................................. 17  MUFG ............................................................................................................................................. 1  MUFG Roles ................................................................................................................................. 53  Non-Renewing Financial Institution ............................................................................................. 13  Obligations ...................................................................................................................................... 7  Other Costs.................................................................................................................................... 41  Other Sellers.................................................................................................................................. 41  Participant ..................................................................................................................................... 46  Participant Register ....................................................................................................................... 46  Patriot Act ..................................................................................................................................... 54  Payment Instruction ........................................................................................................................ 3  Proposed Reduction Date ................................................................................................................ 3  Purchase Notice .............................................................................................................................. 2  Purchaser Agent Roles .................................................................................................................. 53  Purchaser Agents ............................................................................................................................ 1  Purchasing Financial Institutions .................................................................................................. 45  PVSI ................................................................................................................................................ 1  Reduction Notice ............................................................................................................................ 3  Register ......................................................................................................................................... 46  RPA Deferred Purchase Price ......................................................................................................... 6  Seller ............................................................................................................................................... 1  Seller Parties ................................................................................................................................... 1  Seller Party ...................................................................................................................................... 1  Servicer ......................................................................................................................................... 31  Servicing Fee ................................................................................................................................ 33  Terminating Financial Institution ................................................................................................. 13  Termination Date ............................................................................................................................ 8  Termination Percentage .................................................................................................................. 8  Volcker Rule ................................................................................................................................. 17  

 

  RECEIVABLES PURCHASE AGREEMENT        RECEIVABLES PURCHASE AGREEMENT  This Receivables Purchase Agreement, dated as of April 8, 2020, is by and among  NewEnergy Receivables LLC, a Delaware limited liability company (the “Seller”), Constellation  NewEnergy, Inc., a Delaware corporation (together with its successors and assigns “CNE”), as  initial Servicer (as Servicer together with Seller, as further defined in Exhibit I, the “Seller Parties”  and each a “Seller Party”), the entities listed on Schedule A to this Agreement under the heading  “Financial Institution” (together with any of their respective successors and assigns hereunder,  the “Financial Institutions”), the entities (if any) listed on Schedule A to this Agreement under  the heading “Conduit” (together with any of their respective successors and assigns hereunder, the  “Conduits”), the entities listed on Schedule A to this Agreement under the heading “Purchaser  Agent” (together with any of their respective successors and assigns hereunder, the “Purchaser  Agents”), the entities listed on Schedule A to this Agreement under the heading “Co-Arrangers”  (together with any of their respective successors and assigns hereunder, the “Co-Arrangers”) and  MUFG Bank, Ltd. (“MUFG”), as agent for the Purchasers hereunder or any successor agent  hereunder (together with its successors and assigns hereunder, the “Agent”).  Unless defined  elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to  such terms in Exhibit I.  PRELIMINARY STATEMENTS  The Seller intends to sell and assign to Agent for the benefit of the Purchasers, the  Receivables and certain other related assets.  MUFG has been requested and is willing to act as Agent on behalf of the Conduits (if any)  and the Financial Institutions in accordance with the terms hereof.  AGREEMENT  Now therefore, in consideration of the foregoing and for other good and valuable  consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto  hereby agree as follows:  ARTICLE I    PURCHASE ARRANGEMENTS  Section 1.1 Purchase Facility.  (a) Upon the terms and subject to the conditions hereof, during the period from  the date hereof to but not including the Facility Termination Date, Seller shall sell and assign, as  described in Section 1.2(b), the Asset Portfolio to Agent for the benefit of the Purchasers.  In  accordance with the terms and conditions set forth herein, each Conduit may (in its sole discretion),  and each Financial Institution severally hereby agrees to, instruct Agent to make cash payments to  Seller of the related Cash Purchase Price in respect of the Asset Portfolio (each such cash payment,  an “Incremental Purchase”) on behalf of such Purchasers, in each case and from time to time in  an aggregate amount not to exceed at such time (i)  in the case of a Financial Institution, its  Commitment, (ii) in the case of any Purchaser Group, the Commitment of the Financial Institution  

 

  RECEIVABLES PURCHASE AGREEMENT  2    in such Purchaser Group and (iii) in the aggregate, the lesser of (A) the Purchase Limit and (B) the  aggregate amount of the Commitments.  Any amount not paid for the Asset Portfolio hereunder as  Cash Purchase Price shall be paid to Seller as the RPA Deferred Purchase Price pursuant to, and  only to the extent required by, the priority of payments set forth in Sections 2.2(b) and 2.3 and  otherwise pursuant to the terms of this Agreement (including Section 2.7).  (b) Seller may, upon at least 10 Business Days’ prior notice to Agent and each  Purchaser Agent, terminate in whole or reduce in part, ratably among the Financial Institutions,  the unused portion of the Purchase Limit; provided that (i) each partial reduction of the Purchase  Limit shall be in an amount equal to $1,000,000 or an integral multiple thereof, (ii) the aggregate  of the Commitments for all of the Financial Institutions shall be terminated in whole or reduced in  part, ratably among the Financial Institutions, by an amount equal to such termination or reduction  in the Purchase Limit and (iii) no such partial reduction shall reduce the Purchase Limit to an  amount less than $200,000,000.  Section 1.2 Increases; Sale of Asset Portfolio.    (a) Increases.  Seller shall provide Agent and each Purchaser Agent with prior  notice in a form set forth as Exhibit II hereto of each Incremental Purchase (a “Purchase Notice”)  by 12:00 noon (New York City time) at least three Business Days prior to the requested date of  such Incremental Purchase.  Each Purchase Notice shall be subject to Article VI hereof and, except  as set forth below, shall be irrevocable, shall specify the requested Cash Purchase Price (which  shall not be less than $1,000,000 and in additional increments of $100,000) and the requested date  of such Incremental Purchase (which shall be on a Business Day).  Following receipt of a Purchase  Notice, each Purchaser Agent will promptly notify the Conduit (if any) in such Purchaser Agent’s  Purchaser Group of such Purchase Notice and Agent and each Purchaser Agent will identify the  Conduits (if any) that agree to make the Purchase.  If any Conduit declines to make a proposed  Incremental Purchase or if any Purchaser Group does not include a Conduit, such Incremental  Purchase will be made by (i) such declining Conduit’s Related Financial Institution(s) or (ii) the  Financial Institution(s) included in such Purchaser Group that does not include a Conduit, as  applicable, in accordance with the rest of this Section 1.2(a).  On the date of each Incremental  Purchase, upon satisfaction of the applicable conditions precedent set forth in Article VI and the  conditions set forth in this Section 1.2(a), the Conduits and/or the Financial Institutions, as  applicable, shall deposit to the Facility Account, in immediately available funds, no later than 1:00  p.m. (New York City time), an amount equal to its Purchaser Group’s Pro Rata Share of the  aggregate Cash Purchase Price in respect of such Incremental Purchase.  Each Financial  Institution’s obligation shall be several, such that the failure of any Financial Institution to make  available to Seller any funds in connection with any Incremental Purchase shall not relieve any  other Financial Institution of its obligation, if any, hereunder to make funds available on the date  of such Incremental Purchase, but no Financial Institution shall be responsible for the failure of  any other Financial Institution to make funds available in connection with any Incremental  Purchase.    (b) Sale of Asset Portfolio.  In accordance with Sections 1.1(a) and 1.2(a),  Seller hereby sells, assigns and transfers to Agent (on behalf of the Purchasers), for the related  Cash Purchase Price and the RPA Deferred Purchase Price, effective on and as of the date of each  Purchase hereunder, all of its right, title and interest in, to and under all Receivables and the Related  

 

  RECEIVABLES PURCHASE AGREEMENT  3    Security and Collections relating to such Receivables, in each case, existing as of the date of such  Purchase that have been acquired by Seller as provided herein and in the other Transaction  Documents on or prior to the date of such Purchase.  The Purchasers’ right, title and interest in and  to such assets is herein called the “Asset Portfolio”.  Section 1.3 Decreases.  Seller shall return in full the Aggregate Capital on the  Obligations Final Due Date.  Prior thereto, Seller shall provide Agent and each Purchaser with an  irrevocable prior written notice (a “Reduction Notice”) of any proposed reduction of the Aggregate  Capital no later than three (3) Business Days prior to the proposed reduction date.  Such Reduction  Notice shall designate (i) the date (the “Proposed Reduction Date”) upon which any such  reduction of the Aggregate Capital shall occur and (ii) the amount of the Aggregate Capital to be  reduced (the “Aggregate Reduction”), which shall be applied ratably to the aggregate Capital of  each Purchaser in accordance with the amount of Capital owing to such Purchaser.  Only one (1)  Reduction Notice shall be outstanding at any time.  In connection with any reduction of the  Aggregate Capital pursuant to this Section, Seller shall pay to the applicable Purchaser on the  immediately following Settlement Date all Broken Funding Costs arising as a result of such  reduction and any accrued and unpaid CP Costs and Financial Institution Yield in respect of such  portion of Capital so reduced.    Section 1.4 Payment Requirements.  All amounts to be paid or deposited by any Seller  Party pursuant to any provision of this Agreement or any other Transaction Document shall be  paid or deposited in accordance with the terms hereof no later than 11:00 a.m. (New York City  time) on the day when due in immediately available funds, and if not received before 11:00 a.m.  (New York City time) shall be deemed to be received on the next succeeding Business Day.  If  such amounts are payable to (i) Agent, they shall be paid to Agent for its own account, in  accordance with the applicable instructions from time to time notified by the Agent to such Person  and (ii) any Purchaser Agent or Purchaser, they shall be paid to the Purchaser Agent for such  Person’s Purchaser Group, for the account of such Person, in accordance with the applicable  instructions from time to time notified by such Purchaser Agent or Purchaser (each instruction set  forth in clauses (i) and (ii) being a “Payment Instruction”).  Upon notice to Seller, Agent (on  behalf of itself and/or any Purchaser) may debit the Facility Account for all amounts due and  payable hereunder.  All computations of Financial Institution Yield, per annum fees or discount  calculated as part of any CP Costs, per annum fees hereunder and per annum fees under any Fee  Letter shall be made on the basis of a year of 360 days (or, in the case of amounts determined by  reference to the Alternate Base Rate, 365 or 366 days, as applicable) for the actual number of days  elapsed.  If any amount hereunder or under any other Transaction Document shall be payable on a  day which is not a Business Day, such amount shall be payable on the next succeeding Business  Day and such extension of time shall be included in the computation of such payment or deposit.  Section 1.5 Taxes.  (a) Except to the extent required by Applicable Law, any and all  payments and deposits required to be made hereunder, under any other Transaction Document or  under any instrument delivered hereunder or thereunder to any Indemnified Party or otherwise  hereunder or thereunder by Seller or Servicer shall be made free and clear of, and without  withholding or deduction for, any and all present or future Taxes.    If Seller, Servicer or the Agent  shall be required by Applicable Law to make any such withholding or deduction, (A) if such Tax  is an Indemnified Tax, Seller (or Servicer, on its behalf) shall make an additional payment to such  Indemnified Party, in an amount sufficient so that, after making all required withholdings or  

 

  RECEIVABLES PURCHASE AGREEMENT  4    deductions (including withholdings or deductions applicable to additional sums payable under this  Section 1.5(a)), such Indemnified Party receives an amount equal to the sum it would have received  had no such withholdings or deductions been made, (B) Seller (or Servicer, on its behalf), Servicer  or the Agent shall make such withholding or deduction and (C) Seller (or Servicer, on its behalf),  Servicer or the Agent shall pay the full amount deducted to the relevant taxation authority or other  Governmental Authority in accordance with Applicable Law.  (b) Seller will indemnify each Indemnified Party for the full amount of  Indemnified Taxes payable by such Indemnified Party (including any Indemnified Taxes imposed  by any jurisdiction on amounts payable under this Section) and any liability (including penalties,  interest and expenses) attributable thereto and any reasonable expenses.  Any indemnification  under this Section 1.5(b) shall be paid on the next Settlement Date after the date any Indemnified  Party makes written demand therefor, together with a statement of reasons for such demand and  the calculations of such amount.  Such calculations, if made in good faith, absent manifest error,  shall be final and conclusive on all parties.   (c) Each Purchaser shall severally indemnify Agent, within 10 days after  demand therefor, for (i) any Indemnified Taxes attributable to such Purchaser (but only to the  extent that Seller has not already indemnified Agent for such Indemnified Taxes and without  limiting the obligation of Seller to do so) and (ii) any Excluded Taxes attributable to such  Purchaser, in each case, that are payable or paid by the Agent in connection with any Transaction  Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not  such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.   A certificate as to the amount of such payment or liability delivered to any Purchaser by Agent  shall be conclusive absent manifest error.  Each Purchaser hereby authorizes Agent to set off and  apply any and all amounts at any time owing to such Purchaser under any Transaction Document  or otherwise payable by Agent to such Purchaser from any other source against any amount due  to Agent under this Section 1.5(c).   (d) Within 30 days after the date of any payment of Taxes withheld by any of  Seller or Servicer, as applicable, in respect of any payment to any Indemnified Party, Seller or  Servicer, as applicable, will furnish to Agent and each Purchaser Agent, the original or a certified  copy of a receipt evidencing payment thereof (or other evidence reasonably satisfactory to Agent).   (e) Without prejudice to the survival of any other agreement contained herein,  the agreements and obligations contained in this Section shall survive the payment in full of  Obligations hereunder.   (f) Each Purchaser that is not a “United States person,” within the meaning of  Section 7701(a)(30) of the Code, shall, to the extent it is legally entitled to do so, on or before the  date it becomes a party to this Agreement, deliver to Seller, Servicer and Agent documentation  prescribed by Applicable Law to permit the Seller, Servicer or Agent to determine its tax reporting  requirements and any withholding or deduction required to be made, including whichever of the  following is applicable:  (i) in the case of a Purchaser claiming the benefits of an income tax  treaty to which the United States is a party (x) with respect to payments of interest under  

 

  RECEIVABLES PURCHASE AGREEMENT  5    any Transaction Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN- E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant  to the “interest” article of such tax treaty and (y) with respect to any other applicable  payments under any Transaction Document, IRS Form W-8BEN or IRS Form W-8BEN- E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant  to the “business profits” or “other income” article of such tax treaty;  (ii) executed copies of IRS Form W-8ECI;  (iii) in the case of a Purchaser claiming the benefits of the exemption for  portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such  Purchaser is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10  percent shareholder” of Seller within the meaning of Section 871(h)(3)(B) of the Code, or  a “controlled foreign corporation” related to Seller as described in Section 881(c)(3)(C) of  the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W- 8BEN or IRS Form W 8BEN-E; or  (iv) to the extent a Purchaser is not the beneficial owner, executed copies  of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS  Form W 8BEN-E, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other  certification documents from each beneficial owner, as applicable; provided that if the  Purchaser is a partnership and one or more direct or indirect partners of such Purchaser are  claiming the portfolio interest exemption, such Purchaser may provide a U.S. Tax  Compliance Certificate on behalf of each such direct and indirect partner.   (g) Each Indemnified Party that is a “United States person,” shall, on or before  the date it becomes a party to this Agreement, deliver to Seller, Servicer and Agent executed copies  of IRS Form W-9 certifying that such Purchaser is exempt from U.S. federal backup withholding  tax.  (h) If a payment made to a Purchaser under any Transaction Document would  be subject to U.S. federal withholding Tax imposed by FATCA if such Purchaser were to fail to  comply with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Purchaser shall deliver to Seller,  Servicer and Agent at the time or times prescribed by law and at such time or times reasonably  requested by the Seller, Servicer or Agent such documentation prescribed by Applicable Law  (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional  documentation reasonably requested by Seller, Servicer or Agent as may be necessary for the  Seller, Servicer or Agent to comply with their obligations under FATCA and to determine that  such Purchaser has complied with such Purchaser’s obligations under FATCA or to determine the  amount, if any, to deduct and withhold from such payment.  Solely for purposes of this clause (h),  “FATCA” shall include any amendments made to FATCA after the date of this Agreement.   (i) Each Indemnified Party agrees that if any form or certification it previously  delivered under the preceding paragraphs (f), (g) or (h) expires or becomes obsolete or inaccurate  in any respect, it shall update such form or certification or promptly notify the Seller and the Agent  in writing of its legal inability to do so.   

 

  RECEIVABLES PURCHASE AGREEMENT  6    (j) Seller shall timely reimburse Agent for the payment of, any Other Taxes.  (k) If any party determines, in its sole discretion exercised in good faith, that it  has received a refund in respect of any Taxes as to which it has been indemnified pursuant to this  Section, it shall promptly repay such refund to the indemnifying party (to the extent of amounts  that have been paid by the indemnifying party under this Section with respect to the Taxes giving  rise to such refund), net of all out-of-pocket expenses (including Taxes imposed with respect to  such refund) of such indemnified party and without interest (other than interest paid by the relevant  taxing authority with respect to such refund); provided, however, that the indemnified party, upon  the request of such indemnifying party, agrees to return such refund (plus penalties, interest or  other charges imposed by the relevant taxing authority) to such indemnifying party in the event  such indemnifying party is required to repay such refund to the applicable taxing authority.   Nothing in this Section shall obligate any Indemnified Party to apply for any refund.   (l) Nothing contained in this Section shall require any Indemnified Party to  make available any of its Tax returns (or any other information relating to its Taxes which it deems  to be confidential).  (m) Each party’s obligations under this Section 1.5 shall survive the resignation  or replacement of Agent or any assignment of rights by, or the replacement of, a Purchaser, the  termination of the Commitments and the repayment, satisfaction or discharge of all obligations  under any Transaction Document.  Section 1.6 Reinvestments. On each Business Day prior to the Final Payout Date, the  Servicer, on behalf of the Agent, shall pay to the Seller, out of Collections of Receivables, the  amount available for reinvestment in accordance with Section 2.2(a).  Each such payment is herein  referred to as a “Reinvestment”.  All Reinvestments with respect to the applicable Purchasers shall  be made ratably on behalf of the applicable Purchasers in the relevant Purchaser Group in  accordance with the respective outstanding portions of the Aggregate Capital funded by them.  Section 1.7 RPA Deferred Purchase Price.  Subject to the application of Collections as  RPA Deferred Purchase Price as permitted on each Settlement Date pursuant to Sections 2.2(b),  2.2(c) and 2.3, on each Business Day on and after the Final Payout Date, Servicer, on behalf of  Agent and the Purchasers, shall pay to Seller an amount as deferred purchase price (the “RPA  Deferred Purchase Price”) equal to the Collections of Receivables then held or thereafter received  by Seller (or Servicer on its behalf) less any accrued and unpaid Servicing Fee.  ARTICLE II    PAYMENTS AND COLLECTIONS  Section 2.1 Payments.  Notwithstanding any limitation on recourse contained in this  Agreement, Seller shall immediately pay to Agent when due, for the account of Agent, or the  relevant Purchaser or Purchasers, on a full recourse basis: (a) all amounts accrued or payable by  Seller to any such Person as described in Sections 2.2 and 2.3 and (b) each of the following  amounts, to the extent that such amounts are not paid in accordance with Sections 2.2 and 2.3: (i)  such fees as set forth in each Fee Letter (which fees collectively shall be sufficient to pay all fees  

 

  RECEIVABLES PURCHASE AGREEMENT  7    owing to the Financial Institutions), (ii) all amounts payable as CP Costs, (iii) all amounts payable  as Financial Institution Yield, (iv) all amounts payable as Deemed Collections, (v) all amounts  required pursuant to Section 2.5 or 2.6, (vi) all amounts payable pursuant to Article X, if any, (vii)  all Servicer costs and expenses, including the Servicing Fee, in connection with servicing,  administering and collecting the Receivables, (viii) all Broken Funding Costs, (ix) all Default Fees  and (x) any Erroneous Payment Subrogation Rights (the fees, amounts and other obligations  described in clauses (a) and (b) collectively, the “Obligations”).  If Seller fails to pay any of the  Obligations when due, Seller agrees to pay, on demand, the Default Fee in respect thereof until  paid.  Notwithstanding the foregoing, no provision of this Agreement or any Fee Letter shall  require the payment or permit the collection of any amounts hereunder in excess of the maximum  permitted by Applicable Law.  If at any time Seller receives any Collections or is deemed to receive  any Collections, Seller shall immediately pay such Collections or Deemed Collections to Servicer  for payment in accordance with the terms and conditions hereof and, at all times prior to such  payment, such Collections or Deemed Collections shall be held in trust by the Seller for the  exclusive benefit of the Purchasers and Agent.  Section 2.2 Collections Prior to Amortization.  (a) Collections Generally.  On any day (other than during the Amortization  Period) that Servicer receives any Collections and/or Deemed Collections, the Servicer shall set  aside and hold in trust for the benefit of the Purchasers (or, if so requested by the Agent, segregate  in a separate account designated by the Agent, which shall be an account maintained and controlled  by the Agent unless the Agent otherwise instructs in its sole discretion), for application in  accordance with the priority of payments set forth below, all Collections on Receivables that are  received by the Servicer or the Seller or received in any Lock-Box or Collection Account and all  Deemed Collections; provided, however, that so long as each of the conditions precedent set forth  in Section 6.2 are satisfied on such date, the Servicer may release to the Seller from such  Collections and Deemed Collections the amount (if any) necessary to pay the purchase price for  Receivables purchased by the Seller on such date in accordance with the terms of the Receivables  Sale Agreement.  (b) Application of Collections.  On each Settlement Date, so long as the  Amortization Period has not commenced, Servicer will apply such Collections to make the  following distributions in the following amounts and order of priority:  first, to the reimbursement of Agent’s, each Purchaser’s and each  Purchaser Agent’s costs of collection and enforcement of this Agreement;  second, to the Purchasers, all accrued and unpaid fees under any Fee  Letter, all accrued and unpaid CP Costs and Financial Institution Yield and any Broken  Funding Costs, in each case, for the prior Accrual Period;  third, if Servicer is not CNE or an Affiliate of CNE, to Servicer in  payment of the Servicing Fee;  fourth, to the extent that a Capital Coverage Deficit exists, to the  Purchasers (ratably, based on the aggregate outstanding Capital of each Purchaser at such  

 

  RECEIVABLES PURCHASE AGREEMENT  8    time) for the return of a portion of the Aggregate Capital at such time, in an aggregate  amount equal to the amount necessary to reduce the Capital Coverage Deficit to zero ($0);  fifth, if CNE or an Affiliate of CNE is then acting as Servicer, to  Servicer in payment of the Servicing Fee;  sixth, to each Terminating Financial Institution, ratably based on  such Terminating Financial Institution’s Termination Percentage, for the reduction of the  Capital of each such Terminating Financial Institution;  seventh, to the applicable Persons, for the ratable payment in full of  all other unpaid Obligations then due and owing; and  eighth, the balance, if any, to Seller as RPA Deferred Purchase Price.  (c) Each Terminating Financial Institution shall be allocated a ratable portion  of Collections from the Scheduled Termination Date that such Terminating Financial Institution  did not consent to extend (as to such Terminating Financial Institution, the “Termination Date”),  until, with respect to a Terminating Financial Institution, such Terminating Financial Institution’s  Capital, if any, shall be paid in full and the applicable, ratable portion of the RPA Deferred  Purchase Price allocable to such Terminating Financial Institution’s portion of the Asset Portfolio  has been paid in full in accordance with the priority of payments set forth in Section 2.2(b).  This  ratable portion shall be calculated on the Termination Date of each Terminating Financial  Institution as a percentage equal to (i) Capital of such Terminating Financial Institution  outstanding on its Termination Date, divided by (ii) the Aggregate Capital outstanding on such  Termination Date (the “Termination Percentage”).  Each Terminating Financial Institution’s  Termination Percentage shall remain constant prior to the Amortization Period.  During the  Amortization Period, each Termination Percentage shall be disregarded, and each Terminating  Financial Institution’s Capital shall be reduced ratably with all Financial Institutions in accordance  with Section 2.3.  Section 2.3 Collections Following Amortization.  During the Amortization Period, the  Servicer shall set aside and hold in trust for the benefit of the Purchasers (or, if so requested by the  Agent, segregate in a separate account designated by the Agent, which shall be an account  maintained and controlled by the Agent unless the Agent otherwise instructs in its sole discretion),  for application in accordance with the priority of payments set forth below, all Collections on  Receivables that are received by the Servicer or the Seller or received in any Lock-Box or  Collection Account and all Deemed Collections.  During the Amortization Period, Servicer shall,  at any time upon the request from time to time by (or pursuant to standing instructions from) Agent  apply such amounts at Agent’s direction to reduce the Aggregate Capital and any other Aggregate  Unpaids (it being understood and agreed that, in any event, no portion of the RPA Deferred  Purchase Price may be paid to Seller during the Amortization Period).  If there shall be insufficient  funds on deposit to distribute funds in payment in full of the aforementioned amounts, Servicer  (or, following its assumption of control of the Collection Accounts, the Agent) shall distribute  funds in the following order of priority:  

 

  RECEIVABLES PURCHASE AGREEMENT  9    first, to the reimbursement of Agent’s, each Purchaser’s and each  Purchaser Agent’s costs of collection and enforcement of this Agreement;  second, ratably to the payment of all accrued and unpaid fees under  any Fee Letter and all accrued and unpaid CP Costs; Financial Institution Yield and any  Broken Funding Costs;  third, to the payment of Servicer’s reasonable out-of-pocket costs  and expenses in connection with servicing, administering and collecting the Receivables,  including the Servicing Fee, if CNE, or one of its Affiliates is not then acting as Servicer;  fourth, to the Purchasers (ratably, based on the aggregate  outstanding Capital of each Purchaser at such time) for the reduction of the Aggregate  Capital to zero ($0);  fifth, for the ratable payment of all other unpaid Obligations,  provided that to the extent such Obligations relate to the payment of Servicer costs and  expenses, including the Servicing Fee, when CNE or one of its Affiliates is acting as  Servicer, such costs and expenses will not be paid until after the payment in full of all other  Obligations;  sixth, to the applicable Persons, for the ratable payment in full of all  other Aggregate Unpaids; and  seventh, after the Aggregate Unpaids have been indefeasibly  reduced to zero and this Agreement has terminated in accordance with its terms, to Seller  as RPA Deferred Purchase Price, any remaining Collections.  Section 2.4 Ratable Payments.  Collections applied to the payment of Aggregate  Unpaids shall be distributed in accordance with the aforementioned provisions, and, giving effect  to each of the priorities set forth in Sections 2.2 and 2.3 above, shall be shared ratably (within each  priority) among Agent, the Purchaser Agents and the Purchasers in accordance with the amount of  such Aggregate Unpaids owing to each of them in respect of each such priority.  Section 2.5 Payment Rescission.  No payment of any of the Aggregate Unpaids shall be  considered paid or applied hereunder to the extent that, at any time, all or any portion of such  payment or application is rescinded by application of law or judicial authority, or must otherwise  be returned or refunded for any reason.  Seller shall remain obligated for the amount of any  payment or application so rescinded, returned or refunded, and shall promptly pay to Agent (for  application to the Person or Persons who suffered such rescission, return or refund), the full amount  thereof, plus the Default Fee from the date of any such rescission, return or refunding, in each case,  if such rescinded amounts have not been paid under Section 2.2 or 2.3.  Section 2.6 Maximum Purchases In Respect of the Asset Portfolio.  Notwithstanding  anything to the contrary in this Agreement, Seller shall ensure that the Net Receivable Pool  Balance shall at no time be less than the sum of (i) the Aggregate Capital at such time, plus (ii) the  Required Reserves at such time.  If, on any date of determination, the sum of (i) the Aggregate  Capital, plus (ii) the Required Reserves exceeds the Net Receivable Pool Balance, in each case at  

 

  RECEIVABLES PURCHASE AGREEMENT  10    such time, Seller shall pay to the Purchasers within three (3) Business Days an amount to be applied  to reduce the Aggregate Capital (allocated ratably based on the ratio of each Purchaser’s Capital  at such time to the Aggregate Capital at such time), such that after giving effect to such payment,  the Net Receivable Pool Balance equals or exceeds the sum of (i) the Aggregate Capital, plus (ii)  the Required Reserves, in each case at such time.  Section 2.7 Limitation on Payments.  Notwithstanding any provision contained in this  Agreement or any other Transaction Document to the contrary, none of the Purchasers or Agent  shall, and none of them shall be obligated (whether on behalf of a Purchaser or otherwise) to, pay  any amount to Seller in respect of any portion of the RPA Deferred Purchase Price, except to the  extent that Collections are available for distribution to Seller in accordance with this Agreement.   In addition, notwithstanding anything to the contrary contained in this Agreement or any other  Transaction Document, the obligations of any Purchaser that is a commercial paper conduit or  similar vehicle under this Agreement or under any other Transaction Document shall be payable  by such Purchaser or successor or assign solely to the extent of funds received from Seller in  accordance herewith or from any party to any Transaction Document in accordance with the terms  thereof in excess of funds necessary to pay such Person’s matured and maturing Commercial Paper  or other senior indebtedness of such Person when due.  Any amount which Agent or a Purchaser  is not obligated to pay pursuant to the operation of the two preceding sentences shall not constitute  a claim (as defined in § 101 of the Federal Bankruptcy Code) against, or corporate obligation of,  any Purchaser or Agent, as applicable, for any such insufficiency unless and until such amount  becomes available for distribution to Seller pursuant to the terms hereof.  ARTICLE III    CONDUIT PURCHASES  Section 3.1 CP Costs.  Seller shall pay CP Costs with respect to the outstanding Capital  associated with each of the Conduits for each day that any such Capital is outstanding.  Section 3.2 CP Costs Payments.  On each Settlement Date, Seller shall pay to the  Conduits an aggregate amount equal to all accrued and unpaid CP Costs in respect of the  outstanding Capital of each of the Conduits for the related Settlement Period in accordance with  Article II.  Section 3.3 Calculation of CP Costs.  No later than the 5th calendar day of each month  (or if such day is not a Business Day, the next occurring Business Day), each Conduit shall  calculate the aggregate amount of its Conduit Costs for the prior Settlement Period and shall notify  Seller and Agent of such aggregate amount.  ARTICLE IV    FINANCIAL INSTITUTION FUNDING  Section 4.1 Financial Institution Funding.  The aggregate Capital associated with each  Financial Institutions shall accrue Financial Institution Yield in accordance with the terms and  conditions hereof for each day that any such Capital is outstanding.    

 

  RECEIVABLES PURCHASE AGREEMENT  11    Section 4.2 Financial Institution Yield Payments and Calculations.    (a) On each Settlement Date, Seller shall pay to the Financial Institutions an  aggregate amount equal to all accrued and unpaid Financial Institution Yield in respect of the  outstanding Capital of each of the Financial Institutions for the related Settlement Period in  accordance with Article II.  (b) No later than the 5th calendar day of each month (or if such day is not a  Business Day, the next occurring Business Day), each Financial Institution shall calculate the  aggregate amount of its Financial Institution Yield for the prior Settlement Period and shall notify  Seller and Agent of such aggregate amount.  Section 4.3 Inability to Determine Rates; Change in Legality; Benchmark Replacement  Setting.    (a) Subject to clause (b) below, if, on or prior to the first day of any Term SOFR  Settlement Period for any funding of any portion of the Asset Portfolio or Capital at Term SOFR  or on any day for any funding of any portion of the Asset Portfolio or Capital at Daily One Month  Term SOFR:  (i) the Agent determines (which determination shall be conclusive and  binding absent manifest error) that “Term SOFR” or “Daily One Month Term SOFR”, as  applicable, cannot be determined pursuant to the definition thereof, or  (ii) any Financial Institution determines that for any reason in  connection with any request for any funding of any portion of the Asset Portfolio or Capital  at Term SOFR or Daily One Month Term SOFR, as applicable, or a conversion thereto or  a continuation thereof that Term SOFR  or Daily One Month Term SOFR, as applicable,  for any requested Term SOFR Settlement Period or day with respect to a proposed funding  of any portion of the Asset Portfolio or Capital at Term SOFR or at Daily One Month Term  SOFR, as applicable, does not adequately and fairly reflect the cost to the applicable  Financial Institution’s Purchase Group of funding its Pro Rata Share of the Aggregate  Capital in respect to the Financial Institutions in such Financial Institution’s Purchaser  Group, and such Financial Institution has provided notice of such determination to the  Agent,  the Agent will promptly so notify the Seller and each Purchaser Agent.  Upon notice thereof by the Agent to the Seller, any obligation of the Financial  Institutions to make or fund any funding of any portion of the Asset Portfolio or Capital  at Term SOFR or Daily One Month Term SOFR, as applicable, and any right of the  Seller to continue any funding of any portion of the Asset Portfolio or Capital at Term  SOFR or Daily One Month Term SOFR, as applicable, or to convert such portion of the  Asset Portfolio or Capital of the Financial Institution funded at the Alternate Base Rate to  a funding of such portion of the Asset Portfolio or Capital of the Financial Institution at  Term SOFR or Daily One Month Term SOFR, as applicable, shall be suspended (to the  extent of the affected portion of the Asset Portfolio or Capital funded at Term SOFR  or  Daily One Month Term SOFR, as applicable, or affected Term SOFR Settlement Period  

 

  RECEIVABLES PURCHASE AGREEMENT  12    or days) until the Agent (with respect to clause (ii), at the instruction of the Purchaser  Agent (or group of Purchaser Agents)) revokes such notice.  Upon receipt of such notice,  (i) the Seller may revoke any pending request for a purchase of, conversion to or  continuation of any funding of any portion of the Asset Portfolio or Capital at Term  SOFR or Daily One Month Term SOFR, as applicable, (to the extent of the affected  portion of the Asset Portfolio or Capital funded at Term SOFR or Daily One Month Term  SOFR, as applicable, or affected Term SOFR Settlement Period or days) or, failing that,  the Seller will be deemed to have converted any such request into a request for a funding  of a Purchase at, or conversion to a Purchase funded at the Alternate Base Rate in the  amount specified therein and (ii) any outstanding affected portion of the Asset Portfolio  or Capital funded at Term SOFR or Daily One Month Term SOFR, as applicable will be  deemed to have been converted into a funding of such portion of the Asset Portfolio or  Capital at the Alternate Base Rate at the end of the applicable Term SOFR Settlement  Period (with respect to any portion of the Asset Portfolio or Capital funded at Term  SOFR) or on such day (with respect to any portion of the Asset Portfolio or Capital  funded at Daily One Month Term SOFR).  Upon any such conversion, the Seller shall  also pay accrued Financial Institution Yield on the amount so converted, together with  any additional Broken Funding Costs. Subject to clause (c), if the Agent determines  (which determination shall be conclusive and binding absent manifest error) that “Term  SOFR” or “Daily One Month Term SOFR” cannot be determined pursuant to the  definition thereof on any given day, the Financial Institution Yield on any portion of the  Asset Portfolio or Capital funded at the Alternate Base Rate shall be determined by the  Agent without reference to clause (c) of the definition of “Alternate Base Rate” until the  Agent revokes such determination.  (b) If any Financial Institution determines that any law has made it unlawful,  or that any governmental authority has asserted that it is unlawful, for any Purchaser in its Financial  Institution’s Purchaser Group or its applicable lending office to make, maintain or fund Purchases  whose yield rate is determined by reference to SOFR, the Term SOFR Reference Rate, Daily One  Month Term SOFR or Term SOFR, or to determine or charge yield rates based upon SOFR, the  Term SOFR Reference Rate, Daily One Month Term SOFR or Term SOFR, then, upon notice  thereof by such Financial Institution to the Seller (through the Agent), (a) any obligation of the  Purchaser in such Financial Institution’s Purchaser Group to provide any funding of any portion  of the Asset Portfolio or Capital at Term SOFR or Daily One Month Term SOFR, as applicable,  and any right of the Seller to continue any funding of any portion of the Asset Portfolio or Capital  at Term SOFR or Daily One Month Term SOFR, as applicable, or to convert such portion of the  Asset Portfolio or Capital of the Financial Institution funded at the Alternate Base Rate to a funding  of such portion of the Asset Portfolio or Capital of the Financial Institution at Term SOFR or Daily  One Month Term SOFR, as applicable, shall be suspended, and (b) the yield rate on which such  portion of the Asset Portfolio or Capital of the Financial Institution funded at the Alternate Base  Rate shall, if necessary to avoid such illegality, be determined by the Agent without reference to  clause (c) of the definition of “Alternate Base Rate”, in each case until such Financial Institution  notifies the Agent and the Seller that the circumstances giving rise to such determination no longer  exist.  Upon receipt of such notice, (i) the Seller shall, if necessary to avoid such illegality, upon  demand from any Financial Institution (with a copy to the Agent), prepay or, if applicable, convert  all of such Financial Institution’s Pro Rata Share of the Aggregate Capital from being funded at  Term SOFR or Daily One Month Term SOFR, as applicable, to being funded at Alternate Base  

 

  RECEIVABLES PURCHASE AGREEMENT  13    Rate (the yield rate on which any funding of any portion of the Asset Portfolio or Capital at by  such Financial Institution at the Alternate Base Rate shall, if necessary to avoid such illegality, be  determined by the Agent without reference to clause (c) of the definition of “Alternate Base Rate”),  on the last day of the Term SOFR Settlement Period therefor (with respect to any portion of the  Asset Portfolio or Capital funded at Term SOFR) or immediately (with respect to any portion of  the Asset Portfolio or Capital funded at Daily One Month Term SOFR), if with respect to any  portion of the Asset Portfolio or Capital Funded at Term SOFR, all affected Financial Institutions  may lawfully continue to maintain such any portion of the Asset Portfolio or Capital funded at  Term SOFR to such day, or immediately, if any Financial Institution may not lawfully continue to  maintain such portion of the Asset Portfolio or Capital funded at Term SOFR to such day, and (ii)  if necessary to avoid such illegality, the Agent shall during the period of such suspension compute  the Alternate Base Rate without reference to clause (c) of the definition of “Alternate Base Rate,”  in each case until the Agent is advised in writing by each affected Financial Institution that it is no  longer illegal for such Financial Institution to determine or charge interest rates based upon SOFR,  the Term SOFR Reference Rate, Daily One Month Term SOFR or Term SOFR.  Upon any such  prepayment or conversion, the Seller shall also pay accrued interest on the amount so prepaid or  converted, together with any additional Broken Funding Costs.  (c) Benchmark Replacement. Notwithstanding anything to the contrary herein  or in any other Transaction Document, upon the occurrence of a Benchmark Transition Event, the  Agent and the Seller may amend this Agreement to replace the then-current Benchmark with a  Benchmark Replacement.  Any such amendment with respect to a Benchmark Transition Event  will become effective at 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the  Agent has posted such proposed amendment to all affected Financial Institutions and the Seller so  long as the Agent has not received, by such time, written notice of objection to such amendment  from the Required Purchasers.  No replacement of a Benchmark with a Benchmark Replacement  pursuant to this Section 4.3(c) will occur prior to the applicable Benchmark Transition Start Date.  (d) Benchmark Replacement Conforming Changes. In connection with the use,  administration, adoption or implementation of a Benchmark Replacement, the Agent will have the  right to make Conforming Changes from time to time and, notwithstanding anything to the  contrary herein or in any other Transaction Document, any amendments implementing such  Conforming Changes will become effective without any further action or consent of any other  party to this Agreement or any other Transaction Document.  (e) Notices; Standards for Decisions and Determinations. The Agent will  promptly notify the Seller and the Purchaser Agents of (i) the implementation of any Benchmark  Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use,  administration, adoption or implementation of a Benchmark Replacement.  The Agent will  promptly notify the Seller of the removal or reinstatement of any tenor of a Benchmark pursuant  to clause (f) below.  Any determination, decision or election that may be made by the Agent or, if  applicable, any Purchaser Agent (or group of Purchaser Agents) pursuant to this Section 4.3,  including any determination with respect to a tenor, rate or adjustment or of the occurrence or non- occurrence of an event, circumstance or date and any decision to take or refrain from taking any  action or any selection, will be conclusive and binding absent manifest error and may be made in  its or their sole discretion and without consent from any other party to this Agreement or any other  Transaction Document, except, in each case, as expressly required pursuant to this Section 4.3.  

 

  RECEIVABLES PURCHASE AGREEMENT  14    (f) Unavailability of Tenor of Benchmark.  Notwithstanding anything to the  contrary herein or in any other Transaction Document, at any time (including in connection with  the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate  (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not  displayed on a screen or other information service that publishes such rate from time to time as  selected by the Agent in its reasonable discretion or (B) the administrator of such Benchmark or  the regulatory supervisor for the administrator of such Benchmark has provided a public statement  or publication of information announcing that any tenor for such Benchmark is not or will not be  representative or in compliance with or aligned with the International Organization of Securities  Commissions (IOSCO) Principles for Financial Benchmarks, then the Agent may modify the  definition of “Term SOFR Settlement Period” or “Settlement Period” (or any similar or analogous  definition) for any Benchmark settings at or after such time to remove such unavailable, non- representative, non-compliant or non-aligned tenor and (ii) if a tenor that was removed pursuant  to clause (i) above either (A) is subsequently displayed on a screen or information service for a  Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an  announcement that it is not or will not be representative or in compliance with or aligned with the  International Organization of Securities Commissions (IOSCO) Principles for Financial  Benchmarks for a Benchmark (including a Benchmark Replacement), then the Agent may modify  the definition of “Term SOFR Settlement Period” or “Settlement Period” (or any similar or  analogous definition) for all Benchmark settings at or after such time to reinstate such previously  removed tenor.  (g) Benchmark Unavailability Period.  Upon the Seller’s receipt of notice of  the commencement of a Benchmark Unavailability Period the Seller may revoke any request for a  Purchase to be funded at either Term SOFR or Daily One Month Term SOFR, as applicable,  conversion to or continuation of any portion of the Asset Portfolio or Capital funded at Term SOFR  or Daily One Month Term SOFR, as applicable, to be made, converted or continued during any  Benchmark Unavailability Period and, failing that, the Seller will be deemed to have converted  any such request into a request for a Purchase of or conversion to a request for a Purchase funded  at the Alternate Base Rate.  During any Benchmark Unavailability Period or at any time that a  tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate  Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as  applicable, will not be used in any determination of the Alternate Base Rate.  (h) Rates.  The Agent does not warrant or accept responsibility for, and shall  not have any liability with respect to (a) the continuation of, administration of, submission of,  calculation of or any other matter related to Alternate Base Rate, the Term SOFR Reference Rate,  Term SOFR, or Daily One Month Term SOFR or any component definition thereof or rates  referred to in the definition thereof, or any alternative, successor or replacement rate thereto  (including any Benchmark Replacement), including whether the composition or characteristics of  any such alternative, successor or replacement rate (including any Benchmark Replacement) will  be similar to, or produce the same value or economic equivalence of, or have the same volume or  liquidity as, the Alternate Base Rate, the Term SOFR Reference Rate, Term SOFR, Daily One  Month Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the  effect, implementation or composition of any Conforming Changes.  The Agent and its affiliates  or other related entities may engage in transactions that affect the calculation of the Alternate Base  Rate, the Term SOFR Reference Rate, Term SOFR, Daily One Month Term SOFR any alternative,  

 

  RECEIVABLES PURCHASE AGREEMENT  15    successor or replacement rate (including any Benchmark Replacement) or any relevant  adjustments thereto, in each case, in a manner adverse to the Seller.  The Agent may select  information sources or services in its reasonable discretion to ascertain the Alternate Base Rate,  the Term SOFR Reference Rate, Term SOFR, Daily One Month Term SOFR or any other  Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the  Seller, any Financial Institution or any other person or entity for damages of any kind, including  direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses  (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation  of any such rate (or component thereof) provided by any such information source or service.  (i) Certain Defined Terms.  As used in this Section 4.3:  “Available Tenor” means, as of any date of determination and with respect to the then- current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such  Benchmark (or component thereof) that is or may be used for determining the length of a yield  period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with  reference to such Benchmark (or component thereof) that is or may be used for determining any  frequency of making payments of interest calculated with reference to such Benchmark, in each  case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark  that is then-removed from the definition of “Term SOFR Settlement Period” pursuant to clause (f)  of this Section 4.3.    “Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a  Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the  then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the  extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to  clause (c) of this Section 4.3.    “Benchmark Replacement” means with respect to any Benchmark Transition Event, the  sum of: (a) the alternate benchmark rate that has been selected by the Agent and the Seller giving  due consideration to (i) any selection or recommendation of a replacement benchmark rate or the  mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving  or then-prevailing market convention for determining a benchmark rate as a replacement to the  then-current Benchmark for dollar-denominated syndicated credit facilities and (b) the related  Benchmark Replacement Adjustment; provided that, if such Benchmark Replacement as so  determined would be less than the Floor, such Benchmark Replacement will be deemed to be the  Floor for the purposes of this Agreement and the other Transaction Documents.    “Benchmark Replacement Adjustment” means, with respect to any replacement of the  then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or  method for calculating or determining such spread adjustment, (which may be a positive or  negative value or zero) that has been selected by the Agent and the Seller giving due consideration  to (a) any selection or recommendation of a spread adjustment, or method for calculating or  determining such spread adjustment, for the replacement of such Benchmark with the applicable  Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or  then-prevailing market convention for determining a spread adjustment, or method for calculating  

 

  RECEIVABLES PURCHASE AGREEMENT  16    or determining such spread adjustment, for the replacement of such Benchmark with the applicable  Unadjusted Benchmark Replacement for dollar-denominated syndicated credit facilities.    “Benchmark Replacement Date” means the earliest to occur of the following events with  respect to the then-current Benchmark:    (1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later  of (a) the date of the public statement or publication of information referenced therein and  (b) the date on which the administrator of such Benchmark (or the published component  used in the calculation thereof) permanently or indefinitely ceases to provide all Available  Tenors of such Benchmark (or such component thereof); or  (2) in the case of clause (3) of the definition of “Benchmark Transition Event”, the first date  on which such Benchmark (or the published component used in the calculation thereof)  has been determined and announced by or on behalf of the administrator of such  Benchmark (or such component thereof) or the regulatory supervisor for the administrator  of such Benchmark (or such component thereof) to be non-representative or non-compliant  with or non-aligned with the International Organization of Securities Commissions  (IOSCO) Principles for Financial Benchmarks; provided that such non-representativeness,  non-compliance or non-alignment will be determined by reference to the most recent  statement or publication referenced in such clause (c) and even if any Available Tenor of  such Benchmark (or such component thereof) continues to be provided on such date;  For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred  in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable  event or events set forth therein with respect to all then-current Available Tenors of such  Benchmark (or the published component used in the calculation thereof).    “Benchmark Transition Event” means the occurrence of one or more of the following  events with respect to the then-current Benchmark:    (1) a public statement or publication of information by or on behalf of the administrator of  such Benchmark (or the published component used in the calculation thereof) announcing  that such administrator has ceased or will cease to provide all Available Tenors of such  Benchmark (or such component thereof), permanently or indefinitely; provided that, at the  time of such statement or publication, there is no successor administrator that will continue  to provide any Available Tenor of such Benchmark (or such component thereof);  (2) a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark (or the published component used in the calculation  thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency  official with jurisdiction over the administrator for such Benchmark (or such component),  a resolution authority with jurisdiction over the administrator for such Benchmark (or such  component) or a court or an entity with similar insolvency or resolution authority over the  administrator for such Benchmark (or such component), which states that the administrator  of such Benchmark (or such component) has ceased or will cease to provide all Available  Tenors of such Benchmark (or such component thereof) permanently or indefinitely;  

 

  RECEIVABLES PURCHASE AGREEMENT  17    provided that, at the time of such statement or publication, there is no successor  administrator that will continue to provide any Available Tenor of such Benchmark (or  such component thereof); or  (3) a public statement or publication of information by or on behalf of the administrator of  such Benchmark (or the published component used in the calculation thereof) or the  regulatory supervisor for the administrator of such Benchmark (or such component  thereof) announcing that all Available Tenors of such Benchmark (or such component  thereof) are not, or as of a specified future date will not be, representative or in compliance  with or aligned with the International Organization of Securities Commissions (IOSCO)  Principles for Financial Benchmarks.  For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred  with respect to any Benchmark if a public statement or publication of information set forth above  has occurred with respect to each then-current Available Tenor of such Benchmark (or the  published component used in the calculation thereof).    “Benchmark Transition Start Date” means, in the case of a Benchmark Transition  Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark  Transition Event is a public statement or publication of information of a prospective event, the  90th day prior to the expected date of such event as of such public statement or publication of  information (or if the expected date of such prospective event is fewer than 90 days after such  statement or publication, the date of such statement or publication).  “Benchmark Unavailability Period” means, the period (if any) (a) beginning at the time  that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement  has replaced the then-current Benchmark for all purposes hereunder and under any Transaction  Document in accordance with this Section 4.3 and (b) ending at the time that a Benchmark  Replacement has replaced the then-current Benchmark for all purposes hereunder and under any  Transaction Document in accordance with this Section 4.3.  “Relevant Governmental Body” means the Federal Reserve Board or the Federal  Reserve Bank of New York, or a committee officially endorsed or convened by the Federal  Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.  “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement  excluding the related Benchmark Replacement Adjustment.    Section 4.4 Extension of Scheduled Termination Date.  (a) Seller may request one or more 364-day extensions of the Scheduled  Termination Date then in effect by giving written notice of such request to Agent (each such notice,  an “Extension Notice”) at least 60 days prior to the Scheduled Termination Date then in effect.   After Agent’s receipt of any Extension Notice, Agent shall promptly notify each Purchaser Agent  of such Extension Notice.  After Agent’s and each Purchaser Agent’s receipt of any Extension  Notice, each Purchaser Agent shall promptly notify the Financial Institutions in such Purchaser  Agent’s Purchaser Group of such Extension Notice.  Each Financial Institution may, in its sole  discretion, by a revocable notice (a “Consent Notice”) given to Agent and, if applicable, the  Purchaser Agent in such Financial Institution’s Purchaser Group on or prior to the 30th day (or any  

 

  RECEIVABLES PURCHASE AGREEMENT  18    other day as may be mutually agreed among the Seller, the Agent and each Purchaser Agent) prior  to the Scheduled Termination Date then in effect (such period from the date of the Extension  Notice to such 30th day (or other applicable day) being referred to herein as the “Consent Period”),  consent to such extension of such Scheduled Termination Date; provided, however, that, except as  provided in Section 4.4(b), such extension shall not be effective with respect to any of the Financial  Institutions if any one or more Financial Institutions:  (i) notifies Agent and, if applicable, the  Purchaser Agent in such Financial Institution’s Purchaser Group during the Consent Period that  such Financial Institution either does not wish to consent to such extension or wishes to revoke its  prior Consent Notice or (ii) fails to respond to Agent and, if applicable, the Purchaser Agent in  such Financial Institution’s Purchaser Group within the Consent Period (each Financial Institution  or its related Conduit, as the case may be, that does not wish to consent to such extension or wishes  to revoke its prior Consent Notice of fails to respond to Agent and, if applicable, such Purchaser  Agent within the Consent Period is herein referred to as a “Non-Renewing Financial  Institution”).  If none of the events described in the foregoing clauses (i) or (ii) occurs during the  Consent Period and all Consent Notices have been received, then, the Scheduled Termination Date  shall be irrevocably extended until the date that is 364 days after the Scheduled Termination Date  then in effect.  Agent shall promptly notify Seller of any Consent Notice or other notice received  by Agent pursuant to this Section 4.4(a).  (b) Upon receipt of notice from Agent or, if applicable, a Purchaser Agent,  pursuant to Section 4.4(a) of any Non-Renewing Financial Institution or that the Scheduled  Termination Date has not been extended, one or more of the Financial Institutions (including any  Non-Renewing Financial Institution) may proffer to Agent, the Conduit in such Non-Renewing  Financial Institution’s Purchaser Group and, if applicable, the Purchaser Agent in such Non- Renewing Financial Institution’s Purchaser Group the names of one or more institutions meeting  the criteria set forth in Section 12.1(b)(i) that are willing to accept assignments of and assume the  rights and obligations under this Agreement and the other applicable Transaction Documents of  the Non-Renewing Financial Institution.  Provided the proffered name(s) are acceptable to Agent,  the Conduit in such Non-Renewing Financial Institution’s Purchaser Group and, if applicable, the  Purchaser Agent in such Non-Renewing Financial Institution’s Purchaser Group, Agent shall  notify each Purchaser Agent and the remaining Financial Institutions in MUFG’s Purchaser Group  of such fact and each Purchaser Agent shall notify the remaining Financial Institutions in such  Purchaser Agent’s Purchaser Group of such fact, and the then existing Scheduled Termination  Date shall be extended for an additional 364 days upon satisfaction of the conditions for an  assignment in accordance with Section 12.1, and the Commitment of each Non-Renewing  Financial Institution shall be reduced to zero.  If the rights and obligations under this Agreement  and the other applicable Transaction Documents of each Non-Renewing Financial Institution are  not assigned as contemplated by this Section 4.4(b) (each such Non-Renewing Financial Institution  or its related Conduit, as the case may be, whose rights and obligations under this Agreement and  the other applicable Transaction Documents are not so assigned is herein referred to as a  “Terminating Financial Institution”) and at least one Financial Institution is not a Non-Renewing  Financial Institution, the then existing Scheduled Termination Date shall be extended for an  additional 364 days; provided, however, that (i) the Purchase Limit shall be reduced on the  Termination Date applicable to each Terminating Financial Institution by an aggregate amount  equal to the Terminating Commitment Availability as of such date of each Terminating Financial  Institution and shall thereafter continue to be reduced by amounts equal to any reduction in the  Capital of any Terminating Financial Institution (after application of Collections pursuant to  

 

  RECEIVABLES PURCHASE AGREEMENT  19    Sections 2.2 and 2.3) and (ii) the Commitment of each Terminating Financial Institution shall be  reduced to zero on the Termination Date applicable to such Terminating Financial Institution.   Upon reduction to zero of the Capital of a Terminating Financial Institution (after application of  Collections thereto pursuant to Section 2.2 and 2.3), all rights and obligations of such Terminating  Financial Institution hereunder shall be terminated and such Terminating Financial Institution shall  no longer be a “Financial Institution”; provided, however, that the provisions of Article X shall  continue in effect for its benefit with respect to the Capital held by such Terminating Financial  Institution prior to its termination as a Financial Institution.  For the avoidance of doubt, each  reference to a Financial Institution in the context of a Terminating Financial Institution shall be  deemed to refer to the related Conduit if such Conduit continues to have Capital outstanding as a  Terminating Financial Institution.  (c) Any requested extension of the Scheduled Termination Date may be  approved or disapproved by a Financial Institution in its sole discretion.  In the event that the  Commitments are not extended in accordance with the provisions of this Section 4.4, the  Commitment of each Financial Institution shall be reduced to zero on the Scheduled Termination  Date.  Upon reduction to zero of the Commitment of a Financial Institution and upon reduction to  zero of the Capital of such Financial Institution, all rights and obligations of such Financial  Institution hereunder shall be terminated and such Financial Institution shall no longer be a  “Financial Institution”; provided, however, that the provisions of Article X shall continue in effect  for its benefit with respect to the Capital held by such Financial Institution prior to its termination  as a Financial Institution.  Section 4.5 Term SOFR Conforming Changes.  In connection with the use or  administration of Term SOFR and Daily One Month SOFR, the Agent will have the right to make  Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in  any other Transaction Document, any amendments implementing such Conforming Changes will  become effective without any further action or consent of any other party to this Agreement or any  other Transaction Document.  The Agent will promptly notify the Seller and the Purchasers of the  effectiveness of any Conforming Changes in connection with the use or administration of Term  SOFR or Daily One Month Term SOFR.  Section 4.6 Compensation for Losses.  In the event of the failure to fund, convert,  continue or prepay any portion of the Asset Portfolio or Capital funded at Term SOFR or Daily  One Month Term SOFR, as applicable, on the date specified in any notice delivered pursuant  hereto, as a result of a request by the Seller pursuant hereto, then, in any such event, the Seller  shall compensate each Purchaser for any loss, cost and expense attributable to such event,  including any loss, cost or expense arising from the liquidation or redeployment of funds.  A  certificate of any Purchaser setting forth any amount or amounts that such Purchaser is entitled to  receive pursuant to this Section 4.6 shall be delivered to the Seller and shall be conclusive absent  manifest error.  The Seller shall pay such Purchaser the amount shown as due on any such  certificate within 10 days after receipt thereof.  

 

  RECEIVABLES PURCHASE AGREEMENT  20    ARTICLE V    REPRESENTATIONS AND WARRANTIES  Section 5.1 Representations and Warranties of the Seller Parties.  Each Seller Party  hereby represents and warrants to Agent, the Purchaser Agents and the Purchasers, as to itself, as  of the date hereof and as of the date of each Purchase that:  (a) Existence and Power.  Such Seller Party is a corporation or limited liability  company, as applicable, duly organized, validly existing and in good standing under the laws of  its state of organization.  Such Seller Party is duly qualified to do business and is in good standing  as a foreign entity, and has and holds all power, corporate or otherwise, and all governmental  licenses, authorizations, consents and approvals required to carry on its business in each  jurisdiction in which its business is conducted, except where the failure to be so qualified or to  have and hold such governmental licenses, authorization, consents and approvals could not  reasonably be expected to have a Material Adverse Effect.  (b) Power and Authority; Due Authorization, Execution and Delivery.  The  execution and delivery by such Seller Party of this Agreement and each other Transaction  Document to which it is a party, and the performance of its obligations hereunder and thereunder  and, in the case of Seller, Seller’s use of the proceeds of Purchases made hereunder, are within its  powers and authority, corporate or otherwise, and have been duly authorized by all necessary  action, corporate or otherwise, on its part.  This Agreement and each other Transaction Document  to which such Seller Party is a party has been duly executed and delivered by such Seller Party.  (c) No Conflict.  The execution and delivery by such Seller Party of this  Agreement and each other Transaction Document to which it is a party, and the performance of its  obligations hereunder and thereunder do not contravene or violate (i) its certificate or articles of  incorporation or organization, by-laws or limited liability company agreement (or equivalent  governing documents), (ii) any law, rule or regulation applicable to it, (iii) any restrictions under  any agreement, contract or instrument to which it is a party or by which it or any of its property is  bound or (iv) any order, writ, judgment, award, injunction or decree binding on or affecting it or  its property, and do not result in the creation or imposition of any Adverse Claim on assets of such  Seller Party or its Subsidiaries; and no transaction contemplated hereby requires compliance with  any bulk sales act or similar law.  (d) Governmental Authorization.  Other than the filing of the financing  statements required hereunder, no authorization or approval or other action by, and no notice to or  filing with, any Governmental Authority or regulatory body is required for the due execution and  delivery by such Seller Party of this Agreement and each other Transaction Document to which it  is a party and the performance of its obligations hereunder and thereunder.  (e) Actions, Suits.  There are no actions, suits or proceedings pending, or to the  best of such Seller Party’s knowledge, threatened, against or affecting such Seller Party, or any of  its properties, in or before any court, arbitrator or other body, that could reasonably be expected to  have a Material Adverse Effect.  Such Seller Party is not in default with respect to any order of  

 

  RECEIVABLES PURCHASE AGREEMENT  21    any court, arbitrator or governmental body that could reasonably be expected to have a Material  Adverse Effect.  (f) Binding Effect.  This Agreement and each other Transaction Document to  which such Seller Party is a party constitute the legal, valid and binding obligations of such Seller  Party enforceable against such Seller Party in accordance with their respective terms, except as  such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other  similar laws relating to or limiting creditors’ rights generally and by general principles of equity  (regardless of whether enforcement is sought in a proceeding in equity or at law).  (g) Accuracy of Information.  All information heretofore furnished by such  Seller Party to Agent, the Purchaser Agents or the Purchasers for purposes of or in connection with  this Agreement, any of the other Transaction Documents or any transaction contemplated hereby  or thereby is, and all such information hereafter furnished by such Seller Party to Agent, the  Purchaser Agents or the Purchasers will be, true and accurate in every material respect on the date  such information is stated or certified and does not and will not contain any material misstatement  of fact or omit to state a material fact or any fact necessary to make the statements contained therein  not materially misleading.  (h) Use of Proceeds.  No proceeds of any Purchase hereunder will be used (i)  for a purpose that violates, or would be inconsistent with, Regulation T, U or X promulgated by  the Board of Governors of the Federal Reserve System from time to time or (ii) to acquire any  security in any transaction which is subject to Section 12, 13 or 14 of the Securities Exchange Act  of 1934, as amended.  (i) Good Title.  Immediately prior to each Purchase hereunder, Seller shall be  the legal and beneficial owner of the Receivables and Related Security with respect thereto, free  and clear of any Adverse Claim.  There have been duly filed all financing statements or other  similar instruments or documents necessary under the UCC (or any comparable law) of all  appropriate jurisdictions to perfect Seller’s ownership interest in each Receivable, its Collections  and the Related Security.  (j) Perfection.  This Agreement, together with the filing of the financing  statements contemplated hereby, is effective to, and shall, upon each Purchase hereunder, transfer  to Agent for the benefit of the Purchasers (and Agent for the benefit of the Purchasers shall acquire  from Seller) a valid and perfected ownership of or first priority perfected security interest in each  Receivable existing or hereafter arising and in the Related Security and Collections with respect  thereto, free and clear of any Adverse Claim.  There have been duly filed all financing statements  or other similar instruments or documents necessary under the UCC (or any comparable law) of  all appropriate jurisdictions to perfect Agent’s (on behalf of the Purchasers) ownership or security  interest in the Receivables, the Related Security and the Collections.  (k) Jurisdiction of Organization; Places of Business and Locations of Records.   The principal places of business, jurisdiction of organization and chief executive office of such  Seller Party and the offices where it keeps all of its Records are located at the address(es) listed on  Exhibit III or such other locations of which Agent and each Purchaser Agent have been notified in  accordance with Section 7.2(a) in jurisdictions where all action required by Section 7.1(h) and/or  

 

  RECEIVABLES PURCHASE AGREEMENT  22    Section 14.4(a) has been taken and completed.  Such Seller party’s organizational number assigned  to it by its jurisdiction of organization and such Seller Party’s Federal Employer Identification  Number are correctly set forth on Exhibit III.  Except as set forth on Exhibit III, such Seller Party  has not, since the date occurring five years prior to the Closing Date, (i) changed the location of  its principal place of business or chief executive office or its organizational structure, (ii) changed  its legal name, (iii) become a “new debtor” (as defined in Section 9-102(a)(56) of the UCC in  effect in the State of Delaware) or (iv) changed its jurisdiction of organization.  Seller is a Delaware  limited liability company and is a “registered organization” (within the meaning of Section 9-102  of the UCC in effect in the State of Delaware).  (l) Collections.  To the best of such Seller Party’s knowledge, the conditions  and requirements set forth in Section 7.1(h) and Section 8.2 have at all times been satisfied and  duly performed.  The names and addresses of all Collection Banks, together with the account  numbers of the Collection Accounts at each Collection Bank and the post office box number of  each Lock-Box are listed on Exhibit IV.  Seller has not granted any Person, other than Agent as  contemplated by this Agreement, dominion and control or “control” (within the meaning of  Section 9-104 of the UCC of all applicable jurisdictions) of any Lock-Box or Collection Account,  or the right to take dominion and control or “control” (within the meaning of Section 9-104 of the  UCC of all applicable jurisdictions) of any such Lock-Box or Collection Account at a future time  or upon the occurrence of a future event.  The Agent has “control” (within the meaning of Section  9-104 of the UCC of all applicable jurisdictions) over all Collection Accounts.  No funds other  than (i) the proceeds of Receivables and (ii) Gas Collections, are deposited to the Collection  Accounts.    (m) Servicing Programs.  No license or approval is required for the use of any  software or other computer program used by CNE, any Originator or any sub-servicer in the  servicing of the Receivables, other than those which have been obtained and are in full force and  effect.  (n) Material Adverse Effect.  Since the date of CEG’s most recent annual report  on form 10-K filed under the Exchange Act, no event has occurred that could reasonably be  expected to have a Material Adverse Effect.  (o) Names.  In the past five (5) years, Seller has not used any corporate or other  names, trade names or assumed names other than the name in which it has executed this  Agreement.  (p) Ownership of Seller.  CNE owns, directly, 100% of the issued and  outstanding membership units of Seller, free and clear of any Adverse Claim.  Such membership  units are validly issued, fully paid and nonassessable, and there are no options, warrants or other  rights to acquire Capital Stock of Seller.  (q) Solvent.  Seller is Solvent.  (r) Opinions.  The facts regarding each CNE Party, the Receivables, the  Related Security, the transactions contemplated by the Transaction Documents and the related  matters set forth or assumed in each of the true sale and non-consolidation opinions of counsel  

 

  RECEIVABLES PURCHASE AGREEMENT  23    delivered in connection with this Agreement and the Transaction Documents are true and correct  in all material respects.  (s) Not an Investment Company.  Such Seller Party is not and, after giving  effect to the transactions contemplated hereby, will not be required to be registered as, an  “investment company” within the meaning of the Investment Company Act of 1940, as amended  (the “Investment Company Act”), or any successor statute.  Seller is not a “covered fund” under  Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules  and regulations thereunder (the “Volcker Rule”).  In determining that Seller is not a “covered fund”  under the Volcker Rule, Seller is entitled to rely on the exemption from the definition of  “investment company” set forth in Section 3(c)(5)(A) or (B) of the Investment Company Act and  may also rely on other exemptions under the Investment Company Act.  (t) Ordinary Course of Business.  Each remittance of Collections by or on  behalf of Seller pursuant to the Transaction Documents and any related accounts of amounts owing  hereunder in respect of the Purchases will have been (i) in payment of a debt incurred by Seller in  the ordinary course of business or financial affairs of Seller and (ii) made in the ordinary course  of business or financial affairs of Seller.  (u) Tax Status.  Seller has (i) timely filed all federal and other material tax  returns required to be filed by it and (ii) paid, or caused to be paid, all federal and other material  taxes, assessments and other governmental charges, if any, other than taxes, assessments and other  governmental charges being contested in good faith by appropriate proceedings and as to which  adequate reserves have been provided in accordance with GAAP and as to which no Adverse  Claim exits.  (v) Disregarded Entity. Seller is, and shall at all relevant times continue to  be, a “disregarded entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 that is  wholly owned by a United States person.  (w) Compliance with Law.  Such Seller Party has complied in all respects with  all Applicable Laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to  which it may be subject, except where the failure to so comply could not reasonably be expected  to have a Material Adverse Effect.  Each Receivable, together with the Contract related thereto,  does not contravene any laws, rules or regulations applicable thereto (including, without limitation,  laws, rules and regulations relating to truth in lending, fair credit billing, fair credit reporting, equal  credit opportunity, fair debt collection practices and privacy), and no part of such Contract is in  violation of any such law, rule or regulation, in each case, except where such contravention or  violation, as applicable, could not reasonably be expected to have a Material Adverse Effect.  (x) Compliance with Credit and Collection Policy.  Such Seller Party has  complied in all material respects with the Credit and Collection Policy with regard to each  Receivable and the related Contract, and has not made any material change to such Credit and  Collection Policy.  (y) Payments to Originators.  With respect to each Receivable transferred to  Seller under the Receivables Sale Agreement, Seller has given reasonably equivalent value to the  

 

  RECEIVABLES PURCHASE AGREEMENT  24    applicable Originator in consideration therefor and such transfer was not made for or on account  of an antecedent debt.  No transfer by any Originator of any Receivable under the Receivables Sale  Agreement is or may be voidable under any section of the Federal Bankruptcy Code.  (z) Enforceability of Contracts.  To the best of such Seller Party’s knowledge,  each Contract with respect to each Receivable is effective to create, and has created, a legal, valid  and binding obligation of the related Obligor to pay the Outstanding Balance of the Receivable  created thereunder and any accrued interest thereon, enforceable against the Obligor in accordance  with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency,  reorganization or other similar laws relating to or limiting creditors’ rights generally and by general  principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at  law).  (aa) Eligible Receivables.  Each Receivable included in the Net Receivable Pool  Balance as an Eligible Receivable on the date of any Purchase or on the date of any Monthly  Report or Weekly Report was an Eligible Receivable on such date.    (bb) Capital Coverage Deficit.  Seller has determined that, immediately after  giving effect to each Purchase hereunder (including the initial Purchase on the date hereof), that  no Capital Coverage Deficit exists at such time.  (cc) Accounting.  The manner in which such Seller Party accounts for the  transactions contemplated by this Agreement and the Receivables Sale Agreement does not  jeopardize the true sale analysis.  (dd) No Amortization Event.  No event has occurred and is continuing and no  condition exists, or would result from any Purchase or from the application of proceeds therefrom,  that constitutes or may reasonably be expected to constitute an Amortization Event or Potential  Amortization Event.  (ee) Anti-Corruption Laws and Sanctions.  None of (i) the Seller Parties, any  Subsidiary or Affiliate thereof, or any of their respective directors or officers or (ii) to the  knowledge of such Seller Parties, any agent or employee of the Seller Parties or any Subsidiary  thereof have engaged in any activity or conduct which would violate any applicable Anti- Corruption Laws or any applicable Sanctions.  (ff) Use of Proceeds.  No Purchase or use of proceeds or any other transaction  contemplated by this Agreement will violate any Anti-Corruption Laws or applicable Sanctions.  (gg) Beneficial Ownership Rule.  The Seller is an entity that is organized under  the laws of the United States or of any State and at least 51 percent of whose common stock or  analogous equity interest is directly or indirectly owned by a Person whose common stock or  analogous equity interests are listed on the New York Stock Exchange or the American Stock  Exchange or have been designated as a NASDAQ National Market Security listed on the  NASDAQ stock exchange and is excluded on that basis from the definition of Legal Entity  Customer as defined in the Beneficial Ownership Rule.  

 

  RECEIVABLES PURCHASE AGREEMENT  25    (hh) No Linked Accounts.  There are no “Linked Accounts” (as defined in the  applicable Collection Account Agreement) with respect to any Collection Account maintained at  any Collection Bank.   ARTICLE VI    CONDITIONS OF PURCHASES  Section 6.1 Closing Date; Conditions Precedent to Initial Purchase.  This Agreement  shall become effective on the date hereof (the “Closing Date”), or such late date as all of the  conditions in this Section 6.1 have been satisfied.  The initial Purchase under this Agreement (and  the occurrence of the Closing Date) is subject to the conditions precedent that (a) Agent and each  Purchaser Agent shall have received on or before the date of such Purchase each of the documents,  agreements (in fully executed form), opinions of counsel, lien search results, UCC filings,  certificates and other deliverables listed on the closing memorandum attached as Exhibit XII  hereto, in each case, in form and substance reasonably acceptable to the Agent, (b) Agent, each  Purchaser Agent and each Purchaser shall have received all fees and expenses required to be paid  on or prior to such date pursuant to the terms of this Agreement and/or any Fee Letter, (c) Seller  shall have marked its master data processing records and other books and records relating to the  Asset Portfolio with a legend, acceptable to Agent, describing the Asset Portfolio, (d) Agent and  each Purchaser Agent shall have completed to its satisfaction a due diligence review of each  Originator’s and Seller’s billing, collection and reporting systems and other items related to the  Receivables and (e) each of the Purchasers shall have received the approval of its credit committee  of the transactions contemplated hereby.  Section 6.2 Conditions Precedent to All Purchases.  Each Incremental Purchase  (including the initial Incremental Purchase) and Reinvestment shall be subject to the further  conditions precedent that:  (a) in the case of each Incremental Purchase, Servicer shall have delivered to  Agent and each Purchaser Agent on or prior to the date of such Incremental Purchase, in form and  substance satisfactory to Agent and each Purchaser Agent, all Monthly Reports and Weekly  Reports as and when due under Section 8.5;   (b) in the case of each Incremental Purchase, Agent and each Purchaser Agent  shall have received a duly executed Purchase Notice and such other approvals, opinions or  documents as Agent or any Purchaser Agent may reasonably request;  (c) in the case of each Reinvestment, after giving effect to such Reinvestment,  the Servicer shall be holding in trust for the benefit of the Purchasers an amount of Collections  sufficient to pay the sum of (i) all accrued and unpaid Servicing Fees, CP Costs, Financial  Institution Yield, Broken Funding Costs and all other unpaid fees under any Fee Letter, in each  case, through the date of such Reinvestment, (ii) the amount by which the Aggregate Capital  exceeds the result of (x) the Net Receivable Pool Balance, minus (y) the Required Reserve and  (iii) the amount of all other accrued and unpaid Obligations through the date of such Reinvestment;  and  

 

  RECEIVABLES PURCHASE AGREEMENT  26    (d) on the date of such Incremental Purchase or Reinvestment, the following  statements shall be true (and acceptance of the proceeds of such Purchase shall be deemed a  representation and warranty by Seller that such statements are then true):  (i) the representations and warranties set forth in Section 5.1 are true  and correct on and as of the date of such Purchase as though made on and as of such date;  (ii) no event has occurred and is continuing, or would result from such  Purchase, that will constitute an Amortization Event, and no event has occurred and is  continuing, or would result from such Purchase, that would constitute a Potential  Amortization Event;   (iii) the Aggregate Capital does not exceed the Purchase Limit and no  Capital Coverage Deficit exists, in each case, both immediately before and after giving  effect to such Purchase; and  (iv) the Facility Termination Date shall not have occurred.  ARTICLE VII    COVENANTS  Section 7.1 Affirmative Covenants of The Seller Parties.  Until the Final Payout Date,  each Seller Party hereby covenants, as to itself, as set forth below:  (a) Financial Reporting.  Such Seller Party will maintain, for itself and each of  its Subsidiaries, a system of accounting established and administered in accordance with GAAP,  and furnish or cause to be furnished to Agent and each Purchaser Agent:  (i) Annual Reporting.  Within 105 days after the close of each of CEG’s  fiscal years, an audit report (without a “going concern” or like qualification or exception  and without any qualification or exception as to the scope of such audit) certified by  independent certified public accountants reasonably acceptable to the Agent, prepared in  accordance with GAAP on a consolidated basis for CEG and its Subsidiaries, including  balance sheets as of the end of such period, related profit and loss statements, and a  statement of cash flows.  (ii) Quarterly Reporting.  Within 60 days after the close of each of the  first three quarterly periods of each fiscal year, for CEG and its Subsidiaries, consolidated  unaudited balance sheets as at the close of each such period and consolidated unaudited  profit and loss statements and a consolidated unaudited statement of cash flows for the  period from the beginning of such fiscal year to the end of such quarter.  (iii) Financial Statements of Seller.  (i) As soon as available and in any  event within 75 days after the end of each of the first three (3) fiscal quarters of Seller,  copies of the unaudited income statement and balance sheet of Seller with respect to such  quarter, prepared in conformity with GAAP, duly certified by an Authorized Officer of  Seller with respect to such quarter and (ii) as soon as available and in any event within 120  

 

  RECEIVABLES PURCHASE AGREEMENT  27    days after the end of the fiscal year of Seller, copies of the unaudited annual income  statement and balance sheet of Seller, prepared in conformity with GAAP, duly certified  by an Authorized Officer of Seller with respect to such fiscal year.  (iv) Compliance Certificate.  Together with the financial statements  required hereunder, a compliance certificate in substantially the form of Exhibit V signed  by such Seller Party’s Authorized Officer and dated the date of such annual financial  statement or such quarterly financial statement, as the case may be.  (v) Shareholders Statements and Reports.  Promptly upon the furnishing  thereof to the shareholders of such Seller Party copies of all financial statements, reports  and proxy statements so furnished.  (vi) S.E.C. Filings.  Promptly upon the filing thereof, copies of all  registration statements and annual, quarterly, monthly or other regular reports which CEG,  Performance Guarantor, Seller, any Originator or any of their respective Subsidiaries files  with the Securities and Exchange Commission.  (vii) Copies of Notices.  Promptly upon its receipt of any notice, request  for consent, financial statements, certification, report or other communication under or in  connection with any Transaction Document from any Person other than Agent, any  Purchaser Agent (so long as Agent is copied on such communication) or any Purchaser (so  long as each other Purchaser is copied on such communication), copies of the same.  (viii) Change in Credit and Collection Policy.  At least thirty (30) days  prior to the effectiveness of any material change in or material amendment to the Credit  and Collection Policy, a copy of the Credit and Collection Policy then in effect and a notice  (A) indicating such change or amendment, and (B) if such proposed change or amendment  is material or otherwise would be reasonably likely to adversely affect the collectibility of  the Receivables or decrease the credit quality of any newly created Receivables, requesting  Agent’s and each Purchaser Agent’s consent thereto.  (ix) Notices under Receivables Sale Agreement.  Promptly upon its  receipt of any notice received or delivered pursuant to any provision of the Receivables  Sale Agreement, copies of the same.  (x) Other Information.  Promptly, from time to time, such other  information, documents, records or reports relating to the Receivables or the condition or  operations, financial or otherwise, of such Seller Party as Agent or any Purchaser Agent  may from time to time reasonably request in order to protect the interests of Agent and the  Purchasers under or as contemplated by this Agreement.  Any document readily available on-line through the “Electronic Data Gathering Analysis  and Retrieval” system (or any successor system thereof) maintained by the Securities and  Exchange Commission (or any succeeding Governmental Authority), shall be deemed to  have been furnished to the Agent and each Purchaser Agent for purposes of this Section  

 

  RECEIVABLES PURCHASE AGREEMENT  28    7.1(a) when the Seller sends to the Agent and each Purchaser Agent notice (which may be  by electronic mail) that such documents are so available.  (b) Notices.  Such Seller Party will notify Agent and each Purchaser Agent in  writing of any of the following promptly upon learning of the occurrence thereof, describing the  same and, if applicable, the steps being taken with respect thereto:  (i) Amortization Events or Potential Amortization Events.  The  occurrence of each Amortization Event and each Potential Amortization Event, by a  statement of an Authorized Officer of such Seller Party.  (ii) [Reserved].  (iii) Material Adverse Effect.  The occurrence of any event or condition  that has had, or could reasonably be expected to have, a Material Adverse Effect.  (iv) Termination Date.  The occurrence of the “Purchase Termination  Date” or any “Purchase Termination Event” under and as defined in the Receivables Sale  Agreement.  (v) [Reserved].  (vi) Downgrade.  The downgrade in the rating of any Indebtedness of  the Performance Guarantor by S&P or Moody’s, setting forth the Indebtedness affected  and the nature of such change.  (vii) Appointment of Independent Director.  The decision to appoint a  new governor of Seller as the “Independent Director” for purposes of this Agreement, such  notice to be issued not less than ten (10) days prior to the effective date of such appointment  and to certify that the designated Person satisfies the criteria set forth in the definition  herein of “Independent Director.”  (c) Compliance with Laws and Preservation of Existence.  Such Seller Party  will comply in all respects with all Applicable Laws, rules, regulations, orders, writs, judgments,  injunctions, decrees or awards to which it may be subject, except where the failure to so comply  could not reasonably be expected to have a Material Adverse Effect.  Such Seller Party will  preserve and maintain its legal existence, rights, franchises and privileges in the jurisdiction of its  organization, and qualify and remain qualified in good standing as a foreign entity in each  jurisdiction where its business is conducted, except where the failure to so preserve and maintain  any such rights, franchises or privileges or to so qualify could not reasonably be expected to have  a Material Adverse Effect.  (d) Audits.  Such Seller Party will furnish to Agent from time to time such  information with respect to it and the Receivables as Agent may reasonably request (for itself or  on behalf of any Purchaser Agent).  Such Seller Party will, from time to time during regular  business hours as requested by Agent, but not more than once quarterly (unless an Amortization  Event or Potential Amortization Event has occurred and is continuing), upon reasonable notice  and at the sole cost of such Seller Party, permit Agent or any of its respective agents or  representatives, (i) to examine and make copies of and abstracts from all Records in the possession  

 

  RECEIVABLES PURCHASE AGREEMENT  29    or under the control of such Person relating to the Receivables and the Related Security, including,  without limitation, the related Contracts or forms thereof, and (ii) to visit the offices and properties  of such Person for the purpose of examining such materials described in clause (i) above, and to  discuss matters relating to such Person’s financial condition or the Receivables and the Related  Security or any Person’s performance under any of the Transaction Documents or any Person’s  performance under the Contracts and, in each case, with any of the officers or employees of Seller  or Servicer having knowledge of such matters.  Without limiting the foregoing, such Seller Party  will, annually and prior to any Financial Institution renewing its Commitment hereunder, during  regular business hours as reasonably requested by Agent upon reasonable notice and at the sole  cost of such Seller Party, permit Agent or any of its respective agents or representatives, to conduct  a follow-up audit.  Any non-public information (which has been identified as such by such Seller  Party) obtained by Agent or any of its agents or representatives pursuant to this Section 7.1(d) shall  be treated confidentially by such Person in accordance with Section 14.5(b).  (e) Keeping and Marking of Records and Books.  (i) Servicer will maintain and implement administrative and operating  procedures (including, without limitation, an ability to recreate records evidencing  Receivables in the event of the destruction of the originals thereof), and keep and maintain  all documents, books, records and other information reasonably necessary or advisable for  the collection of all Receivables (including, without limitation, records adequate to permit  the immediate identification of each new Receivable and all Collections of and adjustments  to each existing Receivable) and the identification and segregation of Excluded  Receivables and Gas Receivables (including, without limitation, records adequate to permit  the immediate identification of each new Excluded Receivable and Gas Receivable and all  collections of each existing Excluded Receivable and Gas Receivable).  Servicer will give  Agent notice of any material change in the administrative and operating procedures  referred to in the previous sentence.  (ii) Such Seller Party has on or prior to the Closing Date, marked its  master data processing records and other books and records relating to the Asset Portfolio  with a legend, acceptable to Agent, describing the Asset Portfolio.  (f) Compliance with Contracts and Credit and Collection Policy.  Such Seller  Party will timely and fully (i) perform and comply in all material respects with all provisions,  covenants and other promises required to be observed by it under the Contracts related to the  Receivables, and (ii) comply in all material respects with the Credit and Collection Policy in regard  to each Receivable and the related Contract.  (g) Performance and Enforcement of Receivables Sale Agreement.  Seller will,  and will require each Originator to, perform each of their respective obligations and undertakings  under and pursuant to the Receivables Sale Agreement, will purchase Receivables thereunder in  strict compliance with the terms thereof and will vigorously enforce the rights and remedies  accorded to Seller under the Receivables Sale Agreement.  Seller will take all actions to perfect  and enforce its rights and interests (and the rights and interests of Agent and the Purchasers as  assignees of Seller) under the Receivables Sale Agreement as Agent may from time to time  

 

  RECEIVABLES PURCHASE AGREEMENT  30    reasonably request, including, without limitation, making claims to which it may be entitled under  any indemnity, reimbursement or similar provision contained in the Receivables Sale Agreement.  (h) Ownership.  Seller will take all necessary action to (i) vest legal and  equitable title to the Receivables, the Related Security and the Collections purchased under the  Receivables Sale Agreement irrevocably in Seller, free and clear of any Adverse Claims  (including, without limitation, the filing of all financing statements or other similar instruments or  documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to  perfect Seller’s interest in such Receivables, Related Security and Collections and such other  action to perfect, protect or more fully evidence the interest of Seller therein as Agent may  reasonably request), and (ii) establish and maintain, in favor of Agent, for the benefit of the  Purchasers, a valid and perfected ownership interest (and/or a valid and perfected first priority  security interest) in all Receivables, Related Security and Collections to the full extent  contemplated herein, free and clear of any Adverse Claims (including, without limitation, the filing  of all financing statements or other similar instruments or documents necessary under the UCC (or  any comparable law) of all appropriate jurisdictions to perfect Agent’s (for the benefit of the  Purchasers) interest in such Receivables, Related Security and Collections and such other action  to perfect, protect or more fully evidence the interest of Agent for the benefit of the Purchasers as  Agent may reasonably request).  (i) Purchasers’ Reliance.  Seller acknowledges that the Purchasers are entering  into the transactions contemplated by this Agreement in reliance upon Seller’s identity as a legal  entity that is separate from Servicer, the Originators and their respective Affiliates.  Therefore,  from and after the Closing Date, Seller will take all reasonable steps, including, without limitation,  all steps that Agent, any Purchaser Agent or any Purchaser may from time to time reasonably  request, to maintain Seller’s identity as a separate legal entity and to make it manifest to third  parties that Seller is an entity with assets and liabilities distinct from those of each Seller Party and  not just a division of any Seller Party.  Without limiting the generality of the foregoing and in  addition to the other covenants set forth herein, Seller will:  (i) conduct its own business in its own name;  (ii) have a separate area from the Servicer and each Originator for its  business (which may be located at the same address as such entities) and to the extent that  any other such entity has offices in the same location, there shall be a fair and appropriate  allocation of overhead costs between them, and each shall bear its fair share of such  expenses;  (iii) have a separate stationery in its own name;  (iv) conduct all transactions with each CNE Party and Servicer and their  respective Affiliates strictly on an arm’s-length basis, allocate all overhead expenses  (including, without limitation, telephone and other utility charges) for items shared  between Seller and any CNE Party or any Affiliate thereof on the basis of actual use to the  extent practicable and, to the extent such allocation is not practicable, on a basis reasonably  related to actual use;  

 

  RECEIVABLES PURCHASE AGREEMENT  31    (v) at all times have a Board of Directors consisting of at least three  members, at least one member of which is an Independent Director;  (vi) observe all limited liability company formalities as a distinct entity,  and ensure that all limited liability company actions relating to (1) the selection,  maintenance or replacement of the Independent Director, (2) the dissolution or liquidation  of Seller or (3) the initiation of, participation in, acquiescence in or consent to any  bankruptcy, insolvency, reorganization or similar proceeding involving Seller, are duly  authorized by unanimous vote of its Board of Directors (including the Independent  Director);  (vii) maintain Seller’s books and records separate from those of each  CNE Party and any Affiliate thereof and otherwise readily identifiable as its own assets  rather than assets of any CNE Party and any Affiliate thereof;  (viii) prepare its financial statements separately from those of each CNE  Party and insure that any consolidated financial statements of any CNE Party or any  Affiliate thereof that include Seller, including any that are filed with the Securities and  Exchange Commission or any other governmental agency have notes clearly stating that  Seller is a separate legal entity and that its assets will be available first and foremost to  satisfy the claims of the creditors of Seller;  (ix) except as herein specifically otherwise provided, maintain the funds  or other assets of Seller separate from, and not commingled with, those of any CNE Party  or any Affiliate thereof and only maintain bank accounts or other depository accounts to  which Seller alone (or Servicer in the performance of its duties hereunder) is the account  party and from which Seller alone (or Servicer in the performance of its duties hereunder  or Agent hereunder) has the power to make withdrawals;  (x) pay all of Seller’s operating expenses from Seller’s own assets  (except for certain payments by any CNE Party or other Persons pursuant to allocation  arrangements that comply with the requirements of this Section 7.1(i));  (xi) operate its business and activities such that:  it does not engage in  any business or activity of any kind, or enter into any transaction or indenture, mortgage,  instrument, agreement, contract, lease or other undertaking, other than the transactions  contemplated and authorized by this Agreement and the Receivables Sale Agreement; and  does not create, incur, guarantee, assume or suffer to exist any Indebtedness or other  liabilities, whether direct or contingent, other than (1) as a result of the endorsement of  negotiable instruments for deposit or collection or similar transactions in the ordinary  course of business, (2) the incurrence of obligations under this Agreement, (3) the  incurrence of obligations, as expressly contemplated in the Receivables Sale Agreement,  to make payment to the Originators thereunder for the purchase of Receivables from the  Originators under the Receivables Sale Agreement, and (4) the incurrence of operating  expenses in the ordinary course of business of the type otherwise contemplated by this  Agreement;  

 

  RECEIVABLES PURCHASE AGREEMENT  32    (xii) maintain its certificate of formation and operating agreement in  conformity with this Agreement, such that (1) it does not amend, restate, supplement or  otherwise modify its certificate of formation or operating agreement in any respect that  would impair its ability to comply with the terms or provisions of any of the Transaction  Documents, including, without limitation, Section 7.1(i) of this Agreement; and (2) its  certificate of formation and operating agreement, at all times that this Agreement is in  effect, provides for not less than ten (10) days’ prior written notice to Agent of the  replacement or appointment of any director that is to serve as an Independent Director for  purposes of this Agreement and the condition precedent to giving effect to such  replacement or appointment that Seller certify that the designated Person satisfied the  criteria set forth in the definition herein of “Independent Director” and Agent’s written  acknowledgement that in its reasonable judgment the designated Person satisfies the  criteria set forth in the definition herein of “Independent Director”;  (xiii) maintain the effectiveness of, and continue to perform under the  Receivables Sale Agreement, the Performance Guaranty and the other Transaction  Documents, such that it does not amend, restate, supplement, cancel, terminate or otherwise  modify the Receivables Sale Agreement, the Performance Guaranty or any other  Transaction Document, or give any consent, waiver, directive or approval thereunder or  waive any default, action, omission or breach under the Receivables Sale Agreement, the  Performance Guaranty, or any other Transaction Document, or otherwise grant any  indulgence thereunder, without (in each case) the prior written consent of Agent and the  Required Purchasers;  (xiv) maintain its legal separateness such that it does not merge or  consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one  transaction or in a series of transactions, and except as otherwise contemplated herein) all  or substantially all of its assets (whether now owned or hereafter acquired) to, or acquire  all or substantially all of the assets of, any Person, nor at any time create, have, acquire,  maintain or hold any interest in any Subsidiary;  (xv) pay to the appropriate Affiliate the marginal increase or, in the  absence of such increase, the market amount of its portion of the premium payable with  respect to any insurance policy that covers the Seller and any of its Affiliates;  (xvi) undertake any division of its rights, asset, obligations, or liabilities  pursuant to a plan of division or otherwise pursuant to Applicable Law; and   (xvii) maintain at all times the Required Capital Amount (as defined in the  Receivables Sale Agreement) and refrain from making any dividend, distribution,  redemption of membership units or payment of any subordinated Indebtedness or other  liabilities which would cause the Required Capital Amount to cease to be so maintained.  (j) Collections.  Such Seller Party will cause (1) all ACH Receipts to be  deposited immediately to a Collection Account and all proceeds from all Lock-Boxes to be directly  deposited by a Collection Bank into a Collection Account and (2) each Lock-Box and Collection  Account to be subject at all times to a Collection Account Agreement that is in full force and effect.   

 

  RECEIVABLES PURCHASE AGREEMENT  33    In the event any payments relating to Receivables are remitted directly to any Seller Party, such  Seller Party will remit (or will cause all such payments to be remitted) directly to a Collection  Bank and deposited into a Collection Account within one (1) Business Day following receipt  thereof, and, at all times prior to such remittance, such Seller Party will itself hold or, if applicable,  will cause such payments to be held in trust for the exclusive benefit of Agent and the Purchasers.   Seller will maintain exclusive ownership, dominion and control (subject to the terms of this  Agreement) of each Lock-Box and Collection Account and shall not grant the right to take  dominion and control or establish “control” (within the meaning of Section 9-104 of the UCC of  all applicable jurisdictions) of any Lock-Box or Collection Account at a future time or upon the  occurrence of a future event to any Person, except to Agent as contemplated by this Agreement.   With respect to each Collection Account, each Seller Party shall take all steps necessary to ensure  that Agent has “control” (within the meaning of Section 9-104 of the UCC of all applicable  jurisdictions) over each such Collection Account.  Each Seller Party will ensure that no  disbursements are made from any Collection Account, other than disbursements that are made at  the direction and for the account of the Seller.  (k) Taxes.  Such Seller Party will file all tax returns and reports required by law  to be filed and will remit all Taxes and governmental charges due and payable by it, including in  connection with the Receivables, exclusive of taxes on or measured by income or gross receipts of  any Conduit, Agent or any Financial Institution.  (l) Disregarded Entity.  Seller shall at all relevant times be a “disregarded  entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 that is wholly owned by a  United States person.  (m) [Reserved].  (n) Payments to Originators.  With respect to any Receivable purchased by  Seller from any Originator, such sale shall be effected under, and in strict compliance with the  terms of, the Receivables Sale Agreement, including, without limitation, the terms relating to the  amount and timing of payments to be made to such Originator in respect of the purchase price for  such Receivable.  (o) Federal Assignment of Claims Act; Etc. If requested by the Agent following  the occurrence of an Amortization Event, prepare and make any filings under the Federal  Assignment of Claims Act (or any other similar Applicable Law) with respect to Government  Receivables, that are necessary or desirable in order for the Agent to enforce such Government  Receivable against the Obligor thereof.  (p) Anti-Corruption Laws.  Such Seller Party will maintain in effect and enforce  policies and procedures designed to ensure compliance by such Seller Party, its Subsidiaries and  their respective directors, officers, employees and agents with Anti-Corruption Laws and  applicable Sanctions.  (q) Beneficial Ownership Rule.  Promptly following any change that would  result in a change to the status of the Seller as an excluded “Legal Entity Customer” under the  Beneficial Ownership Rule, the Seller shall execute and deliver to the Agent a Certification of  

 

  RECEIVABLES PURCHASE AGREEMENT  34    Beneficial Owner(s) complying with the Beneficial Ownership Rule, in form and substance  reasonably acceptable to the Agent.  (r) Commingling.  On and after the occurrence of the Post-Closing Date, such  Seller Party shall use commercially reasonable effort to ensure that Gas Collections are not  deposited into the Collection Accounts.  Section 7.2 Negative Covenants of The Seller Parties.  Until the date on which the  Aggregate Unpaids have been indefeasibly paid in full and this Agreement terminates in  accordance with its terms, each Seller Party hereby covenants, as to itself, that:  (a) Name Change, Offices and Records.  Such Seller Party will not change its  name, jurisdiction of organization, identity or organizational structure (within the meaning of  Sections 9-503 and/or 9-507 of the UCC of all applicable jurisdictions) or relocate its chief  executive office, principal place of business or any office where Records are kept unless it shall  have:  (i) given Agent and each Purchaser Agent at least forty-five (45) days’ prior written notice  thereof and (ii) delivered to Agent all financing statements, instruments, opinions and other  documents requested by Agent and each Purchaser Agent in connection with such change or  relocation; provided, however, that the Seller shall not change its name, jurisdiction of  organization, identity or organizational structure without the prior written consent of the Agent.  (b) Change in Payment Instructions to Obligors.  Except as may be required by  Agent pursuant to Section 8.2(b), such Seller Party will not add or terminate any bank as a  Collection Bank, or make any change in the instructions to Obligors regarding payments to be  made to any Lock-Box or Collection Account, unless Agent has consented thereto in writing and  Agent and each Purchaser Agent shall have received, at least ten (10) days before the proposed  effective date therefor, (i) written notice of such addition, termination or change and (ii) with  respect to the addition of a Collection Bank or a Collection Account or Lock-Box, an executed  Collection Account Agreement with respect to the new Collection Account or Lock-Box;  provided, however, that Servicer may make changes in instructions to Obligors regarding  payments if such new instructions require such Obligor to make payments to another existing  Collection Account.  On the Final Payout Date, promptly following written request from a Seller  Party to Agent, Agent shall consent in writing to the termination of all Collection Account  Agreements.  (c) Modifications to Contracts and Credit and Collection Policy.  Such Seller  Party will not make any change to the Credit and Collection Policy that is material or otherwise  could adversely affect the collectability of the Receivables or decrease the credit quality of any  newly created Receivables, in any case, without the prior written consent of the Agent and each  Purchaser Agent.  Servicer will not extend, amend or otherwise modify the terms of any Receivable  or any Contract related thereto, other than in accordance with the Credit and Collection Policy and  only so long as such modification is in compliance with Section 8.2(d).  (d) Sales, Liens.  Seller will not sell, assign (by operation of law or otherwise)  or otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse  Claim upon (including, without limitation, the filing of any financing statement) or with respect  to, any Receivable, Related Security or Collections, or upon or with respect to any Contract under  

 

  RECEIVABLES PURCHASE AGREEMENT  35    which any Receivable arises, or any Lock-Box or Collection Account, or assign any right to receive  income with respect thereto (other than, in each case, the creation of the interests therein in favor  of Agent and the Purchasers provided for herein), and Seller will defend the right, title and interest  of Agent and the Purchasers in, to and under any of the foregoing property, against all claims of  third parties claiming through or under Seller or any Originator.  Seller will not create or suffer to  exist any mortgage, pledge, security interest, encumbrance, lien, charge or other similar  arrangement on any of its inventory, the financing or lease of which gives rise to any Receivable.  (e) Capital Coverage Deficit.  At no time prior to the Final Payout Date shall  Seller permit a Capital Coverage Deficit to exist at such time.  (f) Termination Date Determination.  Seller will not designate the Purchase  Termination Date (as defined in the Receivables Sale Agreement), or send any written notice to  any Originator in respect thereof, without the prior written consent of Agent and each Purchaser  Agent.  (g) Restricted Junior Payments.  Seller will not make any Restricted Junior  Payment using funds other than such funds as have been remitted to Seller in accordance with  Article II.  (h) Collections.  No Seller Party will deposit or otherwise credit, or cause or  permit to be so deposited or credited, to any Collection Account cash or cash proceeds other than  Collections and Gas Collections.  Except as may be required by Agent pursuant to the last sentence  of  Section 8.2(b), no Seller Party will deposit or otherwise credit, or cause or permit to be so  deposited or credited, any Collections or proceeds thereof to any lock-box account or to any other  account not covered by a Collection Account Agreement.  (i) Sanctions.  No Seller Party shall use, and such Seller Party shall ensure that  its Subsidiaries and its or their respective directors, officers, employees and agents shall not use,  directly or indirectly, all or any part of the proceeds of any Purchase (A) in furtherance of an offer,  payment, promise to pay, or authorization of the payment or giving of money, or anything else of  value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding,  financing or facilitating any activities, business or transaction of or with any Sanctioned Person,  or in any Sanctioned Country, or (C) in any manner that would result in the violation of any  Sanctions applicable to any party hereto.  (j) [reserved].  (k) Linked Accounts.  The Seller Parties shall not permit any Linked Account  to exist with respect to any Collection Account.  ARTICLE VIII    ADMINISTRATION AND COLLECTION  Section 8.1 Designation of Servicer.  (a) The servicing, administration and collection  of the Receivables on behalf of Agent and the Purchasers shall be conducted by such Person (the  “Servicer”) so designated from time to time in accordance with this Section 8.1.  CNE is hereby  

 

  RECEIVABLES PURCHASE AGREEMENT  36    designated as, and hereby agrees to perform the duties and obligations of, Servicer for Agent and  the Purchasers pursuant to the terms of this Agreement.  Agent (on behalf of the Purchasers) may,  and at the direction of the Required Purchasers shall, at any time following the occurrence of an  Amortization Event designate as Servicer any Person to succeed CNE or any successor Servicer.  (b) Without the prior written consent of Agent and the Required  Purchasers, CNE shall not be permitted to delegate any of its duties or responsibilities as Servicer  to any Person.  (c) Notwithstanding the foregoing subsection (b), (i) CNE shall be and  remain primarily liable to Agent, the Purchaser Agents and the Purchasers for the full and prompt  performance of all duties and responsibilities of Servicer hereunder and (ii) Agent, the Purchaser  Agents and the Purchasers shall be entitled to deal exclusively with CNE in matters relating to the  discharge by Servicer of its duties and responsibilities hereunder.    Section 8.2 Duties of Servicer.  (a)  Servicer shall take or cause to be taken all such  actions as may be necessary or advisable to collect each Receivable from time to time, all in  accordance with Applicable Laws, rules and regulations, with reasonable care and diligence, and  in accordance with the Credit and Collection Policy.  (b) Servicer will instruct all Obligors to pay all Collections either (i) directly to  a Collection Account by means of an automatic electronic funds transfer, wire transfer or otherwise  or (ii) directly to a Lock-Box.  Servicer shall cause any payments made by means of automatic  electronic funds transfer to be deposited directly into a Collection Account from each Obligor’s  relevant account.  Servicer shall effect a Collection Account Agreement with each bank party to a  Collection Account at any time.  In the case of any remittances received in any Lock-Box or  Collection Account that shall have been identified, to the satisfaction of Servicer, to not constitute  Collections or other proceeds of the Receivables or the Related Security, Servicer shall promptly  remit such items to the Person identified to it as being the owner of such remittances.  From and  after the date Agent delivers a Collection Notice to any Collection Bank pursuant to Section 8.3,  Agent may request that Servicer, and Servicer thereupon promptly shall instruct all Obligors with  respect to the Receivables, to remit all payments thereon to a new lock-box or depositary account  specified by Agent.  (c) Servicer shall administer the Collections in accordance with the procedures  described herein and in Article II.  Servicer shall set aside and hold in trust for the benefit of the  Purchasers, the Collections in accordance with Article II.  Servicer shall, upon the request of  Agent, segregate, in a manner acceptable to Agent, all cash, checks and other instruments received  by it from time to time constituting Collections from the general funds of Servicer or Seller prior  to the remittance thereof in accordance with Article II.  If Servicer shall be required to segregate  Collections pursuant to the preceding sentence, Servicer shall segregate and deposit with a bank  designated by Agent such allocable share of Collections of Receivables set aside for the Purchasers  on the first Business Day following receipt by Servicer of such Collections, duly endorsed or with  duly executed instruments of transfer.  (d) Servicer may, in accordance with the Credit and Collection Policy, extend  the maturity of any Receivable or adjust the Outstanding Balance of any Receivable as Servicer  

 

  RECEIVABLES PURCHASE AGREEMENT  37    determines to be appropriate (i) to maximize Collections thereof, (ii) as required under Applicable  Law or (iii) in connection with the COVID-19 Emergency; provided, however, that such extension  or adjustment shall not (x) alter the status of such Receivable as a Delinquent Government  Receivable or Defaulted Receivable and for purposes of determining if such Receivable is a  Delinquent Government Receivable or Defaulted Receivable, the original due date for such  Receivable shall continue to apply or (y) limit the rights of Agent, the Purchaser Agents or the  Purchasers under this Agreement.  Notwithstanding anything to the contrary contained herein,  Agent shall have the absolute and unlimited right to direct Servicer to commence or settle any  legal action with respect to any Receivable or to foreclose upon or repossess any Related Security.  (e) Servicer shall hold in trust for Agent on behalf of the Purchasers all Records  that (i) evidence or relate to the Receivables, the related Contracts and Related Security or (ii) are  otherwise necessary or desirable to collect the Receivables.  Servicer shall, as soon as practicable  following receipt thereof turn over to Seller any cash collections or other cash proceeds received  with respect to Indebtedness not constituting Receivables.  Servicer shall, from time to time at the  request of any Purchaser, furnish to the Purchasers (promptly after any such request) a calculation  of the amounts set aside for the Purchasers pursuant to Article II.  (f) Any payment by an Obligor in respect of any Indebtedness or other liability  owed by it to the applicable Originator or Seller shall, except as otherwise specified by such  Obligor or otherwise required by contract or law and unless otherwise instructed by Agent, be  applied as a Collection of any Receivable of such Obligor (starting with the oldest such  Receivable) to the extent of any amounts then due and payable thereunder before being applied to  any other receivable or other obligation of such Obligor.  Section 8.3 Collection Notices.  Agent is authorized at any time after the occurrence of  an Amortization Event to date and to deliver to the Collection Banks the Collection Notices.  Seller  hereby transfers to Agent for the benefit of the Purchasers, effective when Agent delivers such  notices, the dominion and control and “control” (within the meaning of Section 9-104 of the UCC  of all applicable jurisdictions) of each Lock-Box, each Collection Account and the amounts on  deposit therein.  In case any authorized signatory of Seller whose signature appears on a Collection  Account Agreement shall cease to have such authority before the delivery of such notice, such  Collection Notice shall nevertheless be valid as if such authority had remained in force.  Seller  hereby authorizes Agent, and agrees that Agent shall be entitled to (i) endorse Seller’s name on  checks and other instruments representing Collections, (ii) enforce the Receivables, the related  Contracts and the Related Security and (iii) take such action as shall be necessary or desirable to  cause all cash, checks and other instruments constituting Collections of Receivables to come into  the possession of Agent rather than Seller.  Section 8.4 Responsibilities of Seller.  Anything herein to the contrary notwithstanding,  the exercise by Agent, the Purchaser Agents and the Purchasers of their rights hereunder shall not  release Servicer, any Originator or Seller from any of their duties or obligations with respect to  any Receivables or under the related Contracts.  The Purchasers shall have no obligation or liability  with respect to any Receivables or related Contracts, nor shall any of them be obligated to perform  the obligations of Seller.  Section 8.5 Reports.    

 

  RECEIVABLES PURCHASE AGREEMENT  38    (a) Servicer shall prepare and forward to Agent and each Purchaser Agent (i)  three Business Days prior to each Settlement Date and at such times as Agent or any Purchaser  Agent shall request, a Monthly Report and (ii) at such times as Agent or any Purchaser Agent shall  request, a listing by Obligor of all Receivables together with an aging of such Receivables.  Unless  otherwise requested by Agent or any Purchaser Agent, all computations in such Monthly Report  shall be made as of the close of business on the last day of the Accrual Period preceding the date  on which such Monthly Report is delivered.  (b) If a Level II Ratings Event has occurred and is continuing, Servicer shall  prepare and forward to Agent and each Purchaser Agent, a Weekly Report no later than the second  Business Day of each calendar week.  Unless otherwise requested by Agent or any Purchaser  Agent, all computations in such Weekly Report shall be made as of the close of business on the  last Business Day of the prior calendar week.  Section 8.6 Servicing Fees.  In consideration of CNE’s agreement to act as Servicer  hereunder, the Purchasers hereby agree that, so long as CNE shall continue to perform as Servicer  hereunder, CNE shall be paid a fee (the “Servicing Fee“) in accordance with the priority of  payments set forth in Sections 2.2(b) and 2.3, as applicable, on the 19th calendar day of each month  (or, if such day is not a Business Day, then the next Business Day thereafter), in arrears for the  immediately preceding Fiscal Month, equal to the Servicing Fee Rate of the average Net  Receivable Pool Balance during such period, as compensation for its servicing activities.  ARTICLE IX    AMORTIZATION EVENTS  Section 9.1 Amortization Events.  The occurrence of any one or more of the following  events shall constitute an “Amortization Event”:  (a) Any of the following events shall occur: (i) any CNE Party shall fail to make  any payment or deposit or transfer any monies to be made by it hereunder or under any other  Transaction Document as and when due and such failure is not remedied within two (2) Business  Days after written notice to, or knowledge thereof by, any CNE Party or (ii) the Servicer shall  breach Section 8.5 and such failure shall remain unremedied for three (3) Business Days.  (b) A Capital Coverage Deficit shall occur, and shall not have been cured within  three (3) Business Days.  (c) Any CNE Party shall fail to perform or observe any term, covenant or  agreement as and when required hereunder or under any other Transaction Document to which it  is a party (other than as referred to in clause (a) above or as otherwise separately provided for in  this Section 9.1) and such failure, solely to the extent capable of cure, shall continue unremedied  for fifteen (15) Business Days after written notice to, or knowledge thereof by, any CNE Party.  (d) Any representation or warranty made or deemed to be made by any CNE  Party under or in connection with any Transaction Document shall prove to have been false or  incorrect in any material respect when made or deemed to be made, and, if capable of cure, such  

 

  RECEIVABLES PURCHASE AGREEMENT  39    representation or warranty shall continue to be false or incorrect for ten (10) Business Days after  written notice to, or knowledge thereof by, any CNE Party.  (e) Any CNE Party shall fail to pay any principal of or premium or interest on  any Indebtedness that is outstanding in a principal amount in excess of $100,000,000 in the  aggregate (but excluding Indebtedness hereunder and Nonrecourse Indebtedness) when the same  becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,  demand or otherwise), and such failure shall continue after the applicable grace period, if any,  specified in the agreement or instrument relating to such Indebtedness; or any other event shall  occur or condition shall exist under any agreement or instrument relating to any such Indebtedness  and shall continue after the applicable grace period, if any, specified in such agreement or  instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of,  the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and  payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior  to the stated maturity thereof.  (f)  (i) Any CNE Party shall generally not pay its debts as such debts become  due or shall admit in writing its inability to pay its debts generally or shall make a general  assignment for the benefit of creditors; or (ii) an Event of Bankruptcy shall have occurred with  respect to any CNE Party; or (iii) any CNE Party or any parent thereof shall take any corporate or  other action to authorize any Event of Bankruptcy with respect to any CNE Party.  (g) As at the end of any Fiscal Month (such date, the “Determination Date”):  (i) the average for three consecutive Fiscal Months of the Days Sales  Outstanding shall exceed 65.0 days,  (ii) the average for three consecutive Fiscal Months of the Default Ratio  shall exceed 9.0%, or  (iii) the average for three consecutive Fiscal Months of the Dilution  Ratio shall exceed 1.5%.  (h) A Change of Control shall occur.  (i) (i) One or more judgments for the payment of money shall be entered  against Seller or (ii) one or more judgments or orders for the payment of money in an aggregate  amount exceeding $100,000,000 (excluding any such judgments or orders to the extent covered  by insurance, subject to any customary deductible, and under which the applicable insurance  carrier has not denied coverage) shall be rendered against any CNE Party and either (i)  enforcement proceedings shall have been commenced by any creditor upon such judgment or order  or (ii) there shall be any period of 30 consecutive days during which a stay of enforcement of such  judgment or order, by reason of a pending appeal or otherwise, shall not be in effect.  (j) The “Purchase Termination Date” or any “Purchase Termination Event”  under and as defined in the Receivables Sale Agreement shall occur under the Receivables Sale  Agreement or any Originator shall for any reason cease to transfer, or cease to have the legal  capacity to transfer, or otherwise be incapable of transferring Receivables to Seller under the  

 

  RECEIVABLES PURCHASE AGREEMENT  40    Receivables Sale Agreement; or Seller shall for any reason cease to purchase, or cease to have the  legal capacity to purchase, or otherwise be incapable of accepting Receivables from any Originator  under the Receivables Sale Agreement.  (k) Either (i) any Transaction Document shall terminate in whole or in part  (except in accordance with its terms), or shall cease to be effective or to be the legally valid,  binding and enforceable obligation of the applicable CNE Party or (ii) any CNE Party shall directly  or indirectly contest in any manner such effectiveness, validity, binding nature or enforceability.   (l) Agent for the benefit of the Purchasers shall cease to have a valid and  perfected ownership or first priority perfected security interest in the Receivables, the Related  Security and the Collections with respect thereto and the Collection Accounts.  (m) [Reserved].  (n) Either (i) the Internal Revenue Service shall file notice of a lien pursuant to  Section 6323 of the Code with regard to any assets of any Originator or the Seller or (ii) the PBGC  shall, or shall indicate its intention to, file notice of a lien pursuant to Section 303(k) or Section  4068 of ERISA with regard to any of the assets of any Originator or the Seller.  (o) (i) the occurrence of a Reportable Event; (ii) the adoption of an amendment  to a Plan that would require the provision of security pursuant to Section 401(a)(29) of the Code  or Section 206 of ERISA; (iii) the existence with respect to any Multiemployer Plan of an  “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of  ERISA), whether or not waived; (iv) the failure to satisfy the minimum funding standard under  Section 412 of the Code or Section 302 of ERISA with respect to any Plan (v) the incurrence of  any liability under Title IV of ERISA with respect to the termination of any Plan or the withdrawal  or partial withdrawal of any CNE Party or any of their respective ERISA Affiliates from any  Multiemployer Plan; (vi) the receipt by any CNE Party or any of their respective ERISA Affiliates   from  the PBGC or any plan administrator of any notice relating to the intention to terminate any  Plan or Multiemployer Plan or to appoint a trustee to administer any Plan or Multiemployer Plan;  (vii) the receipt by any CNE Party or any of their respective ERISA Affiliates of any notice  concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan  is, or is expected to be, insolvent within the meaning of Title IV of ERISA; (viii) the occurrence  of a prohibited transaction with respect to any CNE Party or any of their respective ERISA  Affiliates (pursuant to Section 4975 of the Code); (ix) the occurrence or existence of any other  similar event or condition with respect to a Plan or a Multiemployer Plan, with respect to each of  clause (i) through (ix), either individually or in the aggregate, could reasonably be expected to  result in a Material Adverse Effect.  (p) Performance Guarantor shall fail to perform or observe any term, covenant  or agreement required to be performed by it under the Performance Guaranty and such failure,  solely to the extent capable of cure, shall continue unremedied for two (2) Business Days after  written notice to, or knowledge thereof by, any CNE Party, or the Performance Guaranty shall  cease to be effective or to be the legally valid, binding and enforceable obligation of Performance  Guarantor, or Performance Guarantor shall directly or indirectly contest in any manner such  effectiveness, validity, binding nature or enforceability.  

 

  RECEIVABLES PURCHASE AGREEMENT  41    (q) Any Person shall be appointed as an Independent Director of Seller without  prior notice thereof having been given to Agent in accordance with Section 7.1(b)(vii) or without  the written acknowledgement by Agent that such Person conforms, to the satisfaction of Agent,  with the criteria set forth in the definition herein of “Independent Director.”  (r) Seller shall fail to pay in full all of its Obligations to Agent and the  Purchasers hereunder and under each other Transaction Document on or prior to the Obligations  Final Due Date.  Section 9.2 Remedies.  Upon the occurrence and during the continuation of an  Amortization Event, Agent may, or upon the direction of the Required Purchasers shall, take any  of the following actions: (i) replace the Person then acting as Servicer with any Person other than  a direct competitor of CEG or CNE or any of their respective Subsidiaries, (ii) declare the Facility  Termination Date to have occurred, whereupon the Facility Termination Date shall forthwith  occur, without demand, protest or further notice of any kind, all of which are hereby expressly  waived by each Seller Party; provided, however, that upon the occurrence of an Amortization  Event described in Section 9.1(f), or of an actual or deemed entry of an order for relief with respect  to any Seller Party under the Federal Bankruptcy Code or under any other applicable bankruptcy,  insolvency, arrangement, moratorium or similar laws of any other jurisdiction (foreign or  domestic), the Facility Termination Date shall automatically occur, without demand, protest or any  notice of any kind, all of which are hereby expressly waived by each Seller Party, (iii) to the fullest  extent permitted by Applicable Law, declare that the Default Fee shall accrue with respect to any  of the Aggregate Unpaids outstanding at such time, (iv) deliver the Collection Notices to the  Collection Banks and (v) notify Obligors of the Purchasers’ interest in the Receivables.  The  aforementioned rights and remedies shall be without limitation, and shall be in addition to all other  rights and remedies of Agent, the Purchaser Agents and the Purchasers otherwise available under  any other provision of this Agreement, by operation of law, at equity or otherwise, all of which are  hereby expressly preserved, including, without limitation, all rights and remedies provided under  the UCC, all of which rights shall be cumulative.  ARTICLE X    INDEMNIFICATION  Section 10.1 Indemnities by the Seller.  Without limiting any other rights that Agent, any  Purchaser Agent, any Funding Source, any Purchaser or any of their respective Affiliates may have  hereunder or under Applicable Law, Seller hereby agrees to indemnify (and pay upon demand to)  Agent, each Purchaser Agent, each Funding Source, each Purchaser and their respective Affiliates,  successors, assigns, officers, directors, agents and employees (each an “Indemnified Party”) from  and against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other  amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of any  Indemnified Party) and disbursements (all of the foregoing being collectively referred to as  “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result  of this Agreement, or the use of the proceeds of any Purchase hereunder, or the acquisition, funding  or ownership either directly or indirectly, by any Indemnified Party of an interest in the Asset  Portfolio, Receivables, or any Receivable or any Contract or any Related Security, or any action  or inaction of any Seller Party, excluding, however:  

 

  RECEIVABLES PURCHASE AGREEMENT  42    (x) Indemnified Amounts to the extent a final judgment of a  court of competent jurisdiction holds that such Indemnified Amounts resulted from gross  negligence or willful misconduct on the part of the Indemnified Party seeking  indemnification; or  (y) Indemnified Taxes pursuant to Section 1.5 (other than any  Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim);  provided, however, that nothing contained in this sentence shall limit the liability of Seller or limit  the recourse of the Purchasers to the Seller for amounts otherwise specifically provided to be paid  by Seller under the terms of this Agreement.  Without limiting the generality of the foregoing  indemnification, Seller shall indemnify each Indemnified Party for Indemnified Amounts  (including, without limitation, losses in respect of uncollectible receivables, regardless of whether  reimbursement therefor would constitute recourse to Seller) relating to or resulting from:  (i) any representation or warranty made by Seller (or any officers  thereof) under or in connection with this Agreement, any other Transaction Document or  any other information or report delivered by any such Person pursuant hereto or thereto,  which shall have been false or incorrect when made or deemed made;  (ii) the failure by Seller to comply with any Applicable Law, rule or  regulation with respect to any Receivable or Contract related thereto, or the nonconformity  of any Receivable or Contract included therein with any such Applicable Law, rule or  regulation;  (iii) any failure of Seller to perform its duties, covenants or other  obligations in accordance with the provisions of this Agreement or any other Transaction  Document;  (iv) any products liability, personal injury or damage suit, or other  similar claim arising out of or in connection with merchandise, insurance, electricity or  other services that are the subject of any Contract or any Receivable;  (v) any dispute, claim, offset or defense (other than discharge in  bankruptcy of the Obligor) of the Obligor to the payment of any Receivable (including,  without limitation, a defense based on such Receivable or the related Contract not being a  legal, valid and binding obligation of such Obligor enforceable against it in accordance  with its terms), or any other claim resulting from the sale of electricity or other service  related to such Receivable or the furnishing or failure to furnish such electricity or other  services;  (vi) the commingling of Collections of Receivables at any time with  other funds (including collections of Excluded Receivables and Gas Collections);  (vii) any investigation, litigation or proceeding related to or arising from  this Agreement or any other Transaction Document, the transactions contemplated hereby,  the use of the proceeds of a Purchase, the ownership of the Asset Portfolio (or any portion  thereof) or any other investigation, litigation or proceeding relating to Seller, Servicer or  

 

  RECEIVABLES PURCHASE AGREEMENT  43    any Originator in which any Indemnified Party becomes involved as a result of any of the  transactions contemplated hereby;  (viii) any inability to litigate any claim against any Obligor in respect of  any Receivable as a result of such Obligor being immune from civil and commercial law  and suit on the grounds of sovereignty or otherwise from any legal action, suit or  proceeding;  (ix) any Amortization Event described in Section 9.1(f);  (x) any failure of Seller to acquire and maintain legal and equitable title  to, and ownership of, any Receivable and the Related Security and Collections with respect  thereto from any Originator, free and clear of any Adverse Claim; or any failure of Seller  to give reasonably equivalent value to any Originator under the Receivables Sale  Agreement in consideration of the transfer by such Originator of any Receivable, or any  attempt by any Person to void such transfer under statutory provisions or common law or  equitable action;  (xi) any failure to vest and maintain vested in Agent for the benefit of  the Purchasers, or to transfer to Agent for the benefit of the Purchasers, legal and equitable  title to, and ownership of, or a valid and perfected first priority security interest in, the  Asset Portfolio, free and clear of any Adverse Claim;  (xii) the failure to have filed, or any delay in filing, financing statements  or other similar instruments or documents under the UCC of any applicable jurisdiction or  other Applicable Laws with respect to any Receivable, the Related Security and Collections  with respect thereto, and the proceeds of any thereof, whether at the time of any Purchase  or at any subsequent time;  (xiii) any action or omission by Seller which reduces or impairs the rights  of Agent or the Purchasers with respect to any Receivable or the value of any such  Receivable;  (xiv) any setoff with respect to any Receivable;  (xv) any attempt by any Person to void any Purchase under statutory  provisions or common law or equitable action;   (xvi) the failure or delay to provide any Obligor with an invoice or other  evidence of indebtedness;  (xvii) the failure by the Seller to pay when due any energy surcharges or  other governmental charges payable by the Seller in connection with the Receivables or  the Transaction Documents;  (xviii) any amounts payable by the Agent to a Collection Bank under any  Collection Account Agreement;  

 

  RECEIVABLES PURCHASE AGREEMENT  44    (xix) the existence of any “Linked Account” (as defined in the applicable  Collection Account Agreement) with respect to any Collection Account (including any  such “Linked Account” permitted hereunder) and any debit from or other charge against  any Collection Account as a result of any “Settlement Item” (as defined in the applicable  Collection Account Agreement) that originated in any account other than a Collection  Account;  (xx) the failure of any Receivable included in the calculation of the Net  Receivable Pool Balance as an Eligible Receivable to be an Eligible Receivable at the time  so included;   (xxi) the failure of any Collections to be remitted directly from a Utility  Account to a Collection Account; and  (xxii) any civil penalty or fine assessed by OFAC or any other  governmental authority administering any Anti-Corruption Law or Sanctions, and all  reasonable costs and expenses (including reasonable documented legal fees and  disbursements) incurred in connection with defense thereof by, any Indemnified Party in  connection with the Transaction Documents as a result of any action of the Seller or any  of its respective Affiliates.  Section 10.2 Indemnities by the Servicer.  Without limiting any other rights that Agent,  any Purchaser Agent, any Funding Source, any Purchaser or any of their respective Affiliates may  have hereunder or under Applicable Law, Servicer hereby agrees to indemnify (and pay upon  demand to) each Indemnified Party from and against any Indemnified Amounts awarded against  or incurred by any of them, arising out of or resulting from (whether directly or indirectly): (a) the  failure of any information contained in any Monthly Report or Weekly Report, as of the date such  Monthly Report or Weekly Report is delivered pursuant to Section 8.5 to be true and correct, or  the failure of any other information provided to such Indemnified Party by, or on behalf of, the  Servicer to be true and correct, (b) the failure of any representation, warranty or statement made  or deemed made by the Servicer under or in connection with this Agreement or any other  Transaction Document to which it is a party, to have been true and correct as of the date made or  deemed made, (c) the failure by the Servicer to comply with any Applicable Law, rule or regulation  with respect to any Receivable or the related Contract, (d) any dispute, claim, offset or defense of  the Obligor to the payment of any Receivable in, or purporting to be in, the Asset Portfolio  resulting from or related to the collection activities with respect to such Receivable, (e) any failure  of the Servicer to perform its duties or obligations in accordance with the provisions hereof or any  other Transaction Document to which it is a party, (f) the commingling of Collections of  Receivables at any time with other funds (including collections of Excluded Receivables and Gas  Collections), (g) any amounts payable by the Agent to a Collection Bank under any Collection  Account Agreement, (h) the existence of any “Linked Account” (as defined in the applicable  Collection Account Agreement) with respect to any Collection Account (including any such  “Linked Account” permitted hereunder) and any debit from or other charge against any Collection  Account as a result of any “Settlement Item” (as defined in the applicable Collection Account  Agreement) that originated in any account other than a Collection Account, (i) any civil penalty or  fine assessed by OFAC or any other governmental authority administering any Anti-Corruption  Law or Sanctions, and all reasonable costs and expenses (including reasonable documented legal  

 

  RECEIVABLES PURCHASE AGREEMENT  45    fees and disbursements) incurred in connection with defense thereof by, any Indemnified Party in  connection with the Transaction Documents as a result of any action of the Seller or any of its  respective Affiliates, (j) the failure of any Collections to be remitted directly from a Utility Account  to a Collection Account or (k) any breach of the covenants of Section 7.1(l); excluding, however:  (x) Indemnified Amounts to the extent a final judgment of a  court of competent jurisdiction holds that such Indemnified Amounts resulted from gross  negligence or willful misconduct on the part of the Indemnified Party seeking  indemnification;  (y) Indemnified Taxes pursuant to Section 1.5 (other than any  Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim); or  (z) Indemnified Amounts to the extent the same includes losses  in respect of Receivables that are uncollectible on account of the insolvency, bankruptcy  or lack of creditworthiness of the related Obligor.  Section 10.3 Increased Cost and Reduced Return.  (a)  If any Regulatory Change (i)  subjects any Purchaser or any Funding Source to any charge or withholding on or with respect to  any Funding Agreement or this Agreement or a Purchaser’s or Funding Source’s obligations under  a Funding Agreement or this Agreement, or on or with respect to the Receivables, or subjects any  Indemnified Party to any Taxes or changes the basis of taxation of payments to any Purchaser or  any Funding Source of any amounts payable under any Funding Agreement or this Agreement  (except in each case for (A) Indemnified Taxes, (B) Taxes described in clauses (iii) or (iv) of the  definition of Excluded Taxes and (C) Connection Income Taxes) or (ii) imposes, modifies or  deems applicable any reserve, assessment, fee, tax, insurance charge, special deposit or similar  requirement against assets of, deposits with or for the account of, or liabilities of a Funding Source  or a Purchaser, or credit extended by a Funding Source or a Purchaser pursuant to a Funding  Agreement or this Agreement or (iii) imposes any other condition the result of which is to increase  the cost to a Funding Source or a Purchaser of performing its obligations under a Funding  Agreement or this Agreement, or to reduce the rate of return on a Funding Source’s or Purchaser’s  capital as a consequence of its obligations under a Funding Agreement or this Agreement, or to  reduce the amount of any sum received or receivable by a Funding Source or a Purchaser under a  Funding Agreement or this Agreement, or to require any payment calculated by reference to the  amount of interests or loans held or interest received by it, then, upon demand by Agent, Seller  shall pay to Agent, for the benefit of the relevant Funding Source or Purchaser, such amounts  charged to such Funding Source or Purchaser or such amounts to otherwise compensate such  Funding Source or such Purchaser for such increased cost or such reduction.  (b) A certificate of the applicable Purchaser or Funding Source setting forth the  amount or amounts necessary to compensate such Purchaser or Funding Source pursuant to  paragraph (a) of this Section 10.2 shall be delivered to Seller and shall be conclusive absent  manifest error.  Section 10.4 Other Costs and Expenses.  Seller shall reimburse Agent, each Purchaser  Agent and each Conduit on demand for all costs and out-of-pocket expenses in connection with  the preparation, negotiation, arrangement, execution, delivery, enforcement and administration of  

 

  RECEIVABLES PURCHASE AGREEMENT  46    this Agreement, the transactions contemplated hereby and the other documents to be delivered  hereunder, including without limitation, the cost of any Conduit’s auditors auditing the books,  records and procedures of Seller, reasonable fees and out-of-pocket expenses of legal counsel for  any Conduit, any Purchaser Agent and/or Agent (which such counsel may be employees of any  Conduit, any Purchaser Agent or Agent) with respect thereto and with respect to advising any  Conduit, any Purchaser Agent and/or Agent as to their respective rights and remedies under this  Agreement.  Seller shall reimburse Agent and each Purchaser Agent on demand for any and all  costs and expenses of Agent, the Purchaser Agents and the Purchasers, if any, including reasonable  counsel fees and expenses in connection with the enforcement of this Agreement and the other  documents delivered hereunder and in connection with any restructuring or workout of this  Agreement or such documents, or the administration of this Agreement following an Amortization  Event.  Seller shall reimburse each Conduit on demand for all other costs and expenses incurred  by such Conduit (“Other Costs”), including, without limitation, the cost of auditing such Conduit’s  books by certified public accountants, the cost of rating the Commercial Paper of such Conduit by  independent financial rating agencies, and the reasonable fees and out-of-pocket expenses of  counsel for such Conduit or any counsel for any shareholder of such Conduit with respect to  advising such Conduit or such shareholder as to matters relating to such Conduit’s operations.  Section 10.5 Allocations.  Each Conduit shall allocate the liability for Other Costs among  Seller and other Persons with whom such Conduit has entered into agreements to purchase interests  in receivables (“Other Sellers”).  If any Other Costs are attributable to Seller and not attributable  to any Other Seller, Seller shall be solely liable for such Other Costs.  However, if Other Costs are  attributable to Other Sellers and not attributable to Seller, such Other Sellers shall be solely liable  for such Other Costs.  All allocations to be made pursuant to the foregoing provisions of this Article  X shall be made by the applicable Conduit in its sole and absolute discretion and shall be binding  on Seller and Servicer.  Section 10.6 Accounting Based Consolidation Event.  Upon demand by Agent, Seller  shall pay to Agent, for the benefit of the relevant Funding Source, such amounts as such Funding  Source reasonably determines will compensate or reimburse such Funding Source for any (i) fee,  expense or increased cost charged to, incurred or otherwise suffered by such Funding Source, (ii)  reduction in  the rate of return on such Funding Source’s capital or reduction in the amount of any  sum received or receivable by such Funding Source or (iii) internal capital charge or other imputed  cost determined by such Funding Source to be allocable to Seller or the transactions contemplated  in this Agreement, in each case resulting from or in connection with the consolidation, for financial  and/or regulatory accounting purposes, of all or any portion of the assets and liabilities of the  Conduit, that are subject to this Agreement or any other Transaction Document with all or any  portion of the assets and liabilities of a Funding Source.  Amounts under this Section 10.5 may be  demanded at any time without regard to the timing of issuance of any financial statement by the  Conduit or by any Funding Source. A certificate of the Funding Source setting forth the amount  or amounts necessary to compensate such Funding Source pursuant to this Section 10.5 shall be  delivered to Seller and shall be conclusive absent manifest error.  Seller shall pay such Funding  Source the amount as due on any such certificate on the next Settlement Date following receipt of  such notice.  

 

  RECEIVABLES PURCHASE AGREEMENT  47    ARTICLE XI    AGENT  Section 11.1 Authorization and Action.  Each Purchaser hereby designates and appoints  MUFG to act as its agent hereunder and under each other Transaction Document, and authorizes  Agent to take such actions as agent on its behalf and to exercise such powers as are delegated to  Agent by the terms of this Agreement and the other Transaction Documents together with such  powers as are reasonably incidental thereto.  Agent shall not have any duties or responsibilities,  except those expressly set forth herein or in any other Transaction Document, or any fiduciary  relationship with any Purchaser, and no implied covenants, functions, responsibilities, duties,  obligations or liabilities on the part of Agent shall be read into this Agreement or any other  Transaction Document or otherwise exist for Agent.  In performing its functions and duties  hereunder and under the other Transaction Documents, Agent shall act solely as agent for the  Purchasers and does not assume nor shall be deemed to have assumed any obligation or  relationship of trust or agency with or for any Seller Party or any Purchaser Agent or any of such  Seller Party’s or Purchaser Agent’s successors or assigns.  Agent shall not be required to take any  action that exposes Agent to personal liability or that is contrary to this Agreement, any other  Transaction Document or Applicable Law.  The appointment and authority of Agent hereunder  shall terminate upon the indefeasible payment in full of all Aggregate Unpaids.  Each Purchaser  hereby authorizes Agent to authorize and file each of the Uniform Commercial Code financing or  continuations statements (and amendments thereto and assignments or terminations thereof) on  behalf of such Purchaser (the terms of which shall be binding on such Purchaser).  Section 11.2 Delegation of Duties.  Agent may execute any of its duties under this  Agreement and each other Transaction Document by or through agents or attorneys-in-fact and  shall be entitled to advice of counsel concerning all matters pertaining to such duties.  Agent shall  not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by  it with reasonable care.  Section 11.3 Exculpatory Provisions.  Neither Agent nor any of its directors, officers,  agents or employees shall be (i) liable for any action lawfully taken or omitted to be taken by it or  them under or in connection with this Agreement or any other Transaction Document (except for  its, their or such Person’s own gross negligence or willful misconduct), or (ii) responsible in any  manner to any of the Purchasers for any recitals, statements, representations or warranties made  by any Seller Party contained in this Agreement, any other Transaction Document or any  certificate, report, statement or other document referred to or provided for in, or received under or  in connection with, this Agreement, or any other Transaction Document or for the value, validity,  effectiveness, genuineness, enforceability or sufficiency of this Agreement, or any other  Transaction Document or any other document furnished in connection herewith or therewith, or  for any failure of any Seller Party to perform its obligations hereunder or thereunder, or for the  satisfaction of any condition specified in Article VI, or for the ownership, perfection, priority,  condition, value or sufficiency of any collateral pledged in connection herewith.  Agent shall not  be under any obligation to any Purchaser to ascertain or to inquire as to the observance or  performance of any of the agreements or covenants contained in, or conditions of, this Agreement  or any other Transaction Document, or to inspect the properties, books or records of the Seller  

 

  RECEIVABLES PURCHASE AGREEMENT  48    Parties.  Agent shall not be deemed to have knowledge of any Amortization Event or Potential  Amortization Event unless Agent has received notice from Seller or a Purchaser.  Section 11.4 Reliance by Agent.  Agent and each Purchaser Agent shall in all cases be  entitled to rely, and shall be fully protected in relying, upon any document or conversation believed  by it to be genuine and correct and to have been signed, sent or made by the proper Person or  Persons and upon advice and statements of legal counsel (including, without limitation, counsel to  any Seller Party), independent accountants and other experts selected by Agent.  Agent shall in all  cases be fully justified in failing or refusing to take any action under this Agreement or any other  Transaction Document unless it shall first receive such advice or concurrence of the Required  Purchasers or all of the Purchasers, as applicable, as it deems appropriate and it shall first be  indemnified to its satisfaction by the Purchasers, provided that unless and until Agent shall have  received such advice, Agent may take or refrain from taking any action, as Agent shall deem  advisable and in the best interests of the Purchasers.  Agent shall in all cases be fully protected in  acting, or in refraining from acting, in accordance with a request of the Required Purchasers or all  of the Purchasers, as applicable, and such request and any action taken or failure to act pursuant  thereto shall be binding upon all the Purchasers.  Section 11.5 Non-Reliance on Agent and Other Purchasers.  Each Purchaser expressly  acknowledges that neither Agent, nor any of its officers, directors, employees, agents, attorneys- in-fact or Affiliates has made any representations or warranties to it and that no act by Agent  hereafter taken, including, without limitation, any review of the affairs of any Seller Party, shall  be deemed to constitute any representation or warranty by Agent.  Each Purchaser represents and  warrants to Agent that it has and will, independently and without reliance upon Agent or any other  Purchaser and based on such documents and information as it has deemed appropriate, made its  own appraisal of and investigation into the business, operations, property, prospects, financial and  other conditions and creditworthiness of each Seller Party and made its own decision to enter into  this Agreement, the other Transaction Documents and all other documents related hereto or  thereto.  Section 11.6 Reimbursement and Indemnification.  Each Financial Institution and each  Purchaser Agent agrees to reimburse and indemnify Agent and its officers, directors, employees,  representatives and agents ratably based on the ratio of each such indemnifying Financial  Institution’s Commitment to the aggregate Commitment (or, in the case of an indemnifying  Purchaser Agent, ratably based on the Commitment(s) of each Financial Institution in such  Purchaser Agent’s Purchaser Group to the aggregate Commitment), to the extent not paid or  reimbursed by Seller Parties (i) for any amounts for which Agent, acting in its capacity as Agent,  is entitled to reimbursement by the Seller Parties hereunder and (ii) for any other expenses incurred  by Agent, in its capacity as Agent and acting on behalf of the Purchasers, in connection with the  administration and enforcement of this Agreement and the other Transaction Documents.  Section 11.7 Agent in its Individual Capacity.  Agent and its Affiliates may make loans  to, accept deposits from and generally engage in any kind of business with any Seller Party or any  Affiliate of any Seller Party as though Agent were not Agent hereunder.  With respect to the  acquisition of the Asset Portfolio on behalf of the Purchasers pursuant to this Agreement, Agent  shall have the same rights and powers under this Agreement in its individual capacity as any  Purchaser and may exercise the same as though it were not Agent, and the terms “Financial  

 

  RECEIVABLES PURCHASE AGREEMENT  49    Institution,” “Related Financial Institution,” “Purchaser,” “Financial Institutions,” “Related  Financial Institutions” and “Purchasers” shall include Agent in its individual capacity.  Section 11.8 Successor Agent.  Agent may, upon 10 Business Days’ notice to Seller and  the Purchasers, and Agent will, upon the direction of all of the Purchasers (other than Agent, in its  individual capacity) resign as Agent.  If Agent shall resign, then the Required Purchasers during  such five-day period shall appoint from among the Purchasers and the Purchaser Agents a  successor agent.  If for any reason no successor Agent is appointed by the Required Purchasers  during such five-day period, then effective upon the termination of such five-day period, the  Purchasers shall perform all of the duties of Agent hereunder and under the other Transaction  Documents and Seller and Servicer (as applicable) shall make all payments in respect of the  Aggregate Unpaids directly to the applicable Purchasers and for all purposes shall deal directly  with the Purchasers.  After the effectiveness of any retiring Agent’s resignation hereunder as  Agent, the retiring Agent shall be discharged from its duties and obligations hereunder and under  the other Transaction Documents and the provisions of this Article XI and Article X shall continue  in effect for its benefit with respect to any actions taken or omitted to be taken by it while it was  Agent under this Agreement and under the other Transaction Documents.  Section 11.9 Co-Arrangers.  Each of the parties hereto hereby acknowledges and agrees  that no Co-Arranger shall have any right, power, obligation, liability, responsibility or duty under  this Agreement.  Each of party hereto acknowledges that it has not relied, and will not rely, on any  Co-Arranger in deciding to enter into this Agreement and to take, or omit to take, any action under  any Transaction Document.  Section 11.10 Erroneous Payments  (a) If the Agent notifies a Purchaser, a Purchaser Agent or a Indemnified Party,  or any Person who has received funds on behalf of a Purchaser, a Purchaser Agent or Indemnified  Party (any such Purchaser, Purchaser Agent, Indemnified Party or other recipient, a “Payment  Recipient”) that the Agent has determined in its sole discretion (whether or not after receipt of any  notice under immediately succeeding clause (b)) that any funds received by such Payment  Recipient from the Agent or any of its Affiliates were erroneously transmitted to, or otherwise  erroneously or mistakenly received by, such Payment Recipient (whether or not known to such  Purchaser, Purchaser Agent, Indemnified Party or other Payment Recipient on its behalf) (any such  funds, whether received as a payment, prepayment or repayment of principal, interest, fees,  distribution or otherwise, individually and collectively, an “Erroneous Payment”) and demands  the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all  times remain the property of the Agent pending its return or repayment as contemplated below in  this Section 11.10 and held in trust for the benefit of the Agent, and such Purchaser, Purchaser  Agent or Indemnified Party shall (or, with respect to any Payment Recipient who received such  funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than  two (2) Business Days thereafter return to the Agent the amount of any such Erroneous Payment  (or portion thereof) as to which such a demand was made, in same day funds (in the currency so  received), together with interest thereon in respect of each day from and including the date such  Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such  amount is repaid to the Agent in same day funds at the greater of the Federal Funds Effective Rate  and a rate determined by the Agent in accordance with banking industry rules on interbank  

 

  RECEIVABLES PURCHASE AGREEMENT  50    compensation from time to time in effect . A notice of the Agent to any Payment Recipient under  this clause (a) shall be conclusive, absent manifest error.  (b) Without limiting immediately preceding clause (a), each Purchaser,  Purchaser Agent or Indemnified Party, or any Person who has received funds on behalf of a  Purchaser, Purchaser Agent or Indemnified Party, agrees that if it receives a payment, prepayment  or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees,  distribution or otherwise) from the Agent (or any of its Affiliates) (x) that is in a different amount  than, or on a different date from, that specified in this Agreement or in a notice of payment,  prepayment or repayment sent by the Agent (or any of its Affiliates) with respect to such payment,  prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment,  prepayment or repayment sent by the Agent (or any of its Affiliates), or (z) that such Purchaser,  Purchaser Agent or Indemnified Party, or other such recipient, otherwise becomes aware was  transmitted, or received, in error or by mistake (in whole or in part), then in each such case:  (i) it acknowledges and agrees that (A) in the case of immediately  preceding clauses (x) or (y), an error shall be presumed to have been made (absent written  confirmation from the Agent to the contrary) or (B) an error has been made (in the case of  immediately preceding clause (z)), in each case, with respect to such payment, prepayment  or repayment; and  (ii) such Purchaser, Purchaser Agent or Indemnified Party shall (and  shall cause any other recipient that receives funds on its respective behalf to) promptly  (and, in all events, within one (1) Business Day of its knowledge of the occurrence of any  of the circumstances described in immediately preceding clauses (x), (y) and (z)) notify the  Agent of its receipt of such payment, prepayment or repayment, the details thereof (in  reasonable detail) and that it is so notifying the Agent pursuant to this Section 11.10(b).   For the avoidance of doubt, the failure to deliver a notice to the Agent pursuant to this  Section 11.10(b) shall not have any effect on a Payment Recipient’s obligations pursuant  to Section 11.10(a) or on whether or not an Erroneous Payment has been made.  (c) Each Purchaser, Purchaser Agent or Indemnified Party hereby authorizes  the Agent to set off, net and apply any and all amounts at any time owing to such Purchaser,  Purchaser Agent or Indemnified Party under any Transaction Document, or otherwise payable or  distributable by the Agent to such Purchaser, Purchaser Agent or Indemnified Party under any  Transaction Document with respect to any payment of principal, interest, fees or other amounts,  against any amount that the Agent has demanded to be returned under immediately preceding  clause (a) or under the indemnification provisions of this Agreement.  (d) (i) In the event that an Erroneous Payment (or portion thereof) is not  recovered by the Agent for any reason, after demand therefor in accordance with immediately  preceding clause (a), from any Purchaser or Purchaser Agent that has received such Erroneous  Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous  Payment (or portion thereof) on its respective behalf)  (such unrecovered amount, an “Erroneous  Payment Return Deficiency”), upon the Agent’s notice to such Purchaser or Purchaser Agent at  any time, then effective immediately (with the consideration therefor being acknowledged by the  

 

  RECEIVABLES PURCHASE AGREEMENT  51    parties hereto), (A) such Purchaser shall be deemed to have assigned its Capital (but not its  Commitments ) with respect to which such Erroneous Payment was made in an amount equal to  the Erroneous Payment Return Deficiency (or such lesser amount as the Agent may specify) (such  assignment of the Capital (but not Commitments), the “Erroneous Payment Deficiency  Assignment”) (on a cashless basis and such amount calculated at par plus any accrued and unpaid  interest (with the assignment fee to be waived by the Agent in such instance)), and is hereby  (together with the Seller) deemed to execute and deliver an Assignment and Assumption with  respect to such Erroneous Payment Deficiency Assignment, (B) the Agent as the assignee  Purchaser shall be deemed to have acquired the Erroneous Payment Deficiency Assignment, (C)  upon such deemed acquisition, the Agent as the assignee Purchaser shall become a Purchaser, as  applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the  assigning Purchaser shall cease to be a Purchaser, as applicable, hereunder with respect to such  Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations  under the indemnification provisions of this Agreement and its applicable Commitments which  shall survive as to such assigning Purchaser, (D) the Agent and the Seller shall each be deemed to  have waived any consents required under this Agreement to any such Erroneous Payment  Deficiency Assignment, and (E) the Agent will reflect in the Register its ownership interest in the  Capital subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no  Erroneous Payment Deficiency Assignment will reduce the Commitments of any Purchaser and  such Commitments shall remain available in accordance with the terms of this Agreement.    (ii) Subject to Section 11.10  (but excluding, in all events, any  assignment consent or approval requirements (whether from the Seller or otherwise)), the  Agent may, in its discretion, sell any Capital acquired pursuant to an Erroneous Payment  Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous  Payment Return Deficiency owing by the applicable Purchaser shall be reduced by the net  proceeds of the sale of such Purchaser (or portion thereof), and the Agent shall retain all  other rights, remedies and claims against such Purchaser (and/or against any recipient that  receives funds on its respective behalf). In addition, an Erroneous Payment Return  Deficiency owing by the applicable Purchaser (x) shall be reduced by the proceeds of  prepayments or repayments of principal and interest, or other distribution in respect of  principal and interest, received by the Agent on or with respect to any such Capital acquired  from such Purchaser or related Purchaser Agent pursuant to an Erroneous Payment  Deficiency Assignment (to the extent that any such Capital are then owned by the Agent)  and (y) may, in the sole discretion of the Agent, be reduced by any amount specified by  the Agent in writing to the applicable Purchaser from time to time.  (e) The parties hereto agree that (x) irrespective of whether the Agent may be  equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered  from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for  any reason, the Agent shall be subrogated to all the rights and interests of such Payment Recipient  (and, in the case of any Payment Recipient who has received funds on behalf of Purchaser or  Indemnified Party, to the rights and interests of such Purchaser, Purchaser Agent or Indemnified  Party, as the case may be) under the Transaction Documents with respect to such amount (the  “Erroneous Payment Subrogation Rights”) (provided that the Obligations under the Transaction  Documents in respect of the Erroneous Payment Subrogation Rights shall not be duplicative of  such Obligations in respect of Capital that has been assigned to the Agent under an Erroneous  

 

  RECEIVABLES PURCHASE AGREEMENT  52    Payment Deficiency Assignment) and (y) an Erroneous Payment shall not pay, prepay, repay,  discharge or otherwise satisfy any Obligations owed by the Seller or Servicer; provided that this  Section 11.10 shall not be interpreted to increase (or accelerate the due date for), or have the effect  of increasing (or accelerating the due date for), the Obligations of the Seller relative to the amount  (and/or timing for payment) of the Obligations that would have been payable had such Erroneous  Payment not been made by the Agent; provided, further, that for the avoidance of doubt,  immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous  Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised  of funds received by the Agent from the Seller or the Servicer for the purpose of making such  Erroneous Payment.  (f) To the extent permitted by applicable law, no Payment Recipient shall assert  any right or claim to  an Erroneous Payment, and hereby waives, and is deemed to waive, any  claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim  or counterclaim by the Agent for the return of any Erroneous Payment received, including, without  limitation, any defense based on “discharge for value” or any similar doctrine.  (g) Each party’s obligations, agreements and waivers under this Section 11.10  shall survive the resignation or replacement of the Agent, any transfer of rights or obligations by,  or the replacement of, a Purchaser or Purchaser Agent, the termination of the Commitments and/or  the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any  Transaction Document.  ARTICLE XII    ASSIGNMENTS; PARTICIPATIONS  Section 12.1 Assignments.  (a)  (I) Seller, Servicer, Agent, each Purchaser Agent and  each Purchaser hereby agree and consent to the complete or partial assignment by any Conduit of  all or any portion of its rights under, interest in, title to and obligations under this Agreement to  any Funding Source pursuant to any Funding Agreement or to any other Person, and upon such  assignment, such Conduit shall be released from its obligations so assigned.  Further, Seller,  Servicer, Agent, each Purchaser Agent and each Purchaser hereby agree that any assignee of any  Conduit of this Agreement or of all or any portion of the Asset Portfolio of any Conduit shall have  all of the rights and benefits under this Agreement as if the term “Conduit” explicitly referred to  and included such party (provided that (i) the Capital of any such assignee that is a Conduit or a  commercial paper conduit shall accrue CP Costs based on such Conduit’s Conduit Costs or on  such commercial paper conduit’s cost of funds, respectively, and (ii) the Capital of any other such  assignee shall accrue Financial Institution Yield pursuant to Section 4.1), and no such assignment  shall in any way impair the rights and benefits of any Conduit hereunder.    (II) Neither Seller nor Servicer shall have the right to assign its rights or obligations  under this Agreement.  (b) Any Financial Institution may at any time and from time to time assign to  one or more Persons (“Purchasing Financial Institutions”) all or any part of its rights and  obligations under this Agreement pursuant to an assignment agreement, substantially in the form  

 

  RECEIVABLES PURCHASE AGREEMENT  53    set forth in Exhibit VII hereto (the “Assignment Agreement”) executed by such Purchasing  Financial Institution and such selling Financial Institution.  The consent of the Conduit (if any) in  such selling Financial Institution’s Purchaser Group shall be required prior to the effectiveness of  any such assignment.  Each assignee of a Financial Institution must (i) have a short-term debt  rating of A-1 or better by S&P and P-1 by Moody’s and (ii) agree to deliver to Agent, promptly  following any request therefor by Agent or the Conduit (if any) in such selling Financial  Institution’s Purchaser Group, an enforceability opinion in form and substance satisfactory to  Agent and such Conduit.  Upon delivery of the executed Assignment Agreement to Agent, such  selling Financial Institution shall be released from its obligations hereunder to the extent of such  assignment.  Thereafter the Purchasing Financial Institution shall for all purposes be a Financial  Institution party to this Agreement and shall have all the rights and obligations of a Financial  Institution (including, without limitation, the applicable obligations of a Related Financial  Institution) under this Agreement to the same extent as if it were an original party hereto and no  further consent or action by Seller, the Purchasers, the Purchaser Agents or Agent shall be required.  (c) Each of the Financial Institutions agrees that in the event that it shall cease  to have a short-term debt rating of A-1 or better by S&P and P-1 by Moody’s (an “Impacted  Financial Institution”), such Impacted Financial Institution shall be obliged, at the request of the  Conduit (if any) in such Impacted Financial Institution’s Purchaser Group or Agent, to assign all  of its rights and obligations hereunder to (x) another Financial Institution in such Impacted  Financial Institution’s Purchaser Group or (y) another funding entity nominated by Agent and  acceptable to the Conduit (if any) in such Impacted Financial Institution’s Purchaser Group, and  willing to participate in this Agreement through the Scheduled Termination Date in the place of  such Impacted Financial Institution; provided that the Impacted Financial Institution receives  payment in full, pursuant to an Assignment Agreement, of an amount equal to such Financial  Institution’s Pro Rata Share of the Aggregate Capital and Financial Institution Yield owing to the  Financial Institutions in such Impacted Financial Institution’s Purchaser Group and all accrued but  unpaid fees and other costs and expenses payable in respect of its Pro Rata Share of the Asset  Portfolio of the Financial Institutions in such Impacted Financial Institution’s Purchaser Group.  (d) Agent, acting solely for this purpose as a non-fiduciary agent of Seller, shall  maintain a copy of each Assignment Agreement delivered to it and a register for the recordation  of the names and addresses of the Purchasers, and the Commitments and Capital and Financial  Institution Yield and/or CP Costs of each Purchaser pursuant to the terms hereof from time to time  (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and Seller,  Servicer, Agent and the Purchasers shall treat each Person whose name is recorded in the Register  pursuant to the terms hereof as a Purchaser hereunder for all purposes of this Agreement.  The  Register shall be available for inspection by Seller, Servicer and any Purchaser, at any reasonable  time and from time to time upon reasonable prior notice.  Section 12.2 Participations.  Any Financial Institution may, in the ordinary course of its  business at any time sell to one or more Persons (each a “Participant”) participating interests in  its Pro Rata Share portion of the Asset Portfolio of the Financial Institutions in such Financial  Institution’s Purchaser Group or any other interest of such Financial Institution hereunder.   Notwithstanding any such sale by a Financial Institution of a participating interest to a Participant,  such Financial Institution’s rights and obligations under this Agreement shall remain unchanged,  such Financial Institution shall remain solely responsible for the performance of its obligations  

 

  RECEIVABLES PURCHASE AGREEMENT  54    hereunder, and each Seller Party, each Conduit, each other Financial Institution, each Purchaser  Agent and Agent shall continue to deal solely and directly with such Financial Institution in  connection with such Financial Institution’s rights and obligations under this Agreement.  Each  Financial Institution agrees that any agreement between such Financial Institution and any such  Participant in respect of such participating interest shall not restrict such Financial Institution’s  right to agree to any amendment, supplement, waiver or modification to this Agreement, except  for any amendment, supplement, waiver or modification described in Section 14.1(b)(i).    Each  Financial Institution that sells a participation shall, acting solely for this purpose as a non-fiduciary  agent of Seller, maintain a register on which it enters the name and address of each Participant and  the Capital and Financial Institution Yield and/or CP Costs of each Participant’s interest in the  Purchases or other obligations under the Transaction Documents (the “Participant Register”);  provided that no Financial Institution shall have any obligation to disclose all or any portion of the  Participant Register (including the identity of any Participant or any information relating to a  Participant's interest in the Purchases or any commitments, loans, letters of credit or its other  obligations under any Transaction Document) to any Person except to the extent that such  disclosure is necessary to establish that such Purchase, commitment, loan, letter of credit or other  obligation is in registered form under Section 5f.103-1(c) of the United States Treasury  Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and  such Financial Institution shall treat each Person whose name is recorded in the Participant  Register as the owner of such participation for all purposes of this Agreement notwithstanding any  notice to the contrary.  For the avoidance of doubt, Agent (in its capacity as Agent) shall have no  responsibility for maintaining a Participant Register.  Section 12.3 Federal Reserve.  Notwithstanding any other provision of this Agreement  to the contrary, any Financial Institution may at any time pledge or grant a security interest in all  or any portion of its rights (including, without  limitation, its portion of the Asset Portfolio and any  rights to payment of Capital and Financial Institution Yield) under this Agreement to secure  obligations of such Financial Institution to a Federal Reserve Bank, without notice to or consent  of Seller or Agent; provided that no such pledge or grant of a security interest shall release a  Financial Institution from any of its obligations hereunder, or substitute any such pledgee or  grantee for such Financial Institution as a party hereto.  Section 12.4 Collateral Trustee.  Notwithstanding any other provision of this Agreement  to the contrary, any Conduit may at any time pledge or grant a security interest in all or any portion  of its rights (including, without limitation, its portion of the Asset Portfolio and any rights to  payment of Capital and CP Costs) under this Agreement to secure obligations of such Conduit to  a collateral trustee or security trustee under its Commercial Paper program, without notice to or  consent of Seller or Agent; provided that no such pledge or grant of a security interest shall release  a Conduit from any of its obligations hereunder, or substitute any such pledgee or grantee for such  Conduit as a party hereto.  ARTICLE XIII    PURCHASER AGENTS  Section 13.1 Purchaser Agents.  Each Purchaser Group may (but is not required to)  designate and appoint a “Purchaser Agent” hereunder which Purchaser Agent shall become a party  

 

  RECEIVABLES PURCHASE AGREEMENT  55    to this Agreement and shall authorize such Purchaser Agent to take such actions as agent on its  behalf and to exercise such powers as are delegated to the Purchaser Agent by the terms of this  Agreement and the other Transaction Documents together with such powers as are reasonably  incidental thereto.  Unless otherwise notified in writing to the contrary by the applicable Purchaser,  Agent and the Seller Parties shall provide all notices and payments specified to be made by Agent  or any Seller Party to a Purchaser hereunder to such Purchaser’s Purchaser Agent, if any, for the  benefit of such Purchaser, instead of to such Purchaser.  Each Purchaser Agent may perform any  of the obligations of, or exercise any of the rights of, any member of its Purchaser Group and such  performance or exercise shall constitute performance of the obligations of, or exercise of the rights  of, such member hereunder.  In performing its functions and duties hereunder and under the other  Transaction Documents, each Purchaser Agent shall act solely as agent for the Purchasers in such  Purchaser Agent’s Purchaser Group and does not assume nor shall be deemed to have assumed  any obligation or relationship of trust or agency with or for any other Purchaser or any Seller Party  or any of such Purchaser’s or Seller Party’s successors or assigns.  The appointment and authority  of each Purchaser Agent hereunder shall terminate upon the indefeasible payment in full of all  Aggregate Unpaids.  Each Purchaser Group designates the “Purchaser Agent”, if any, identified as  such on the signature pages to this agreement or any Assignment Agreement or similar instrument  by which such Purchaser Group becomes a party to this Agreement.  ARTICLE XIV    MISCELLANEOUS  Section 14.1 Waivers and Amendments.  (a)  No failure or delay on the part of Agent,  any Purchaser Agent or any Purchaser in exercising any power, right or remedy under this  Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such  power, right or remedy preclude any other further exercise thereof or the exercise of any other  power, right or remedy.  The rights and remedies herein provided shall be cumulative and  nonexclusive of any rights or remedies provided by law.  Any waiver of this Agreement shall be  effective only in the specific instance and for the specific purpose for which given.  (b) No provision of this Agreement may be amended, supplemented, modified  or waived except in writing in accordance with the provisions of this Section 14.1(b).  Each  Conduit, Seller, each Purchaser Agent and Agent, at the direction of the Required Purchasers, may  enter into written modifications or waivers of any provisions of this Agreement, provided,  however, that no such modification or waiver shall:  (i) without the consent of each affected Purchaser, (A) extend the  Scheduled Termination Date or the date of any payment or deposit of Collections by Seller  or Servicer, (B) reduce the rate or extend the time of payment of Financial Institution Yield  or any CP Costs (or any component of Financial Institution Yield or CP Costs), (C) reduce  any fee payable to Agent for the benefit of the Purchasers, (D) except pursuant to Article  XII hereof, change the amount of the Capital of any Purchaser, any Financial Institution’s  Pro Rata Share, any Conduit’s Pro Rata Share, any Financial Institution’s Commitment  (other than, to the extent applicable in each case, pursuant to Section 4.4 or the terms of  any Funding Agreement), (E) amend, modify or waive any provision of the definition of  Required Purchasers, Section 4.4, this Section 14.1(b) or Section 14.6, (F) consent to or  

 

  RECEIVABLES PURCHASE AGREEMENT  56    permit the assignment or transfer by Seller of any of its rights and obligations under this  Agreement, (G) change the definition of  “Eligible Receivable,” “Excess Concentration,”  “Required Reserves,” “Net Receivable Pool Balance” “Servicing Fee Rate” or “RPA  Deferred Purchase Price” or (H) amend or modify any defined term (or any defined term  used directly or indirectly in such defined term) used in clauses (A) through (G) above in  a manner that would circumvent the intention of the restrictions set forth in such clauses;  or  (ii) without the written consent of the then Agent, amend, modify or  waive any provision of this Agreement if the effect thereof is to affect the rights or duties  of such Agent.  Notwithstanding the foregoing, (i) without the consent of the Purchasers, but with the consent of  Seller, Agent may amend this Agreement solely to add additional Persons as Financial Institutions,  Conduits and/or Purchaser Agents hereunder and (ii) Agent, the Required Purchasers and each  Conduit may enter into amendments to modify any of the terms or provisions of Article XI, Article  XII, Section 14.13 or any other provision of this Agreement without the consent of any Seller  Party, provided that such amendment has no negative impact upon such Seller Party.  Any  modification or waiver made in accordance with this Section 14.1 shall apply to each of the  Purchasers equally and shall be binding upon each Seller Party, the Purchaser Agents, the  Purchasers and Agent.  Section 14.2 Notices.  Except as provided in this Section 14.2, all communications and  notices provided for hereunder shall be in writing (including e-mail and shall be given to the other  parties hereto at their respective addresses or e-mail addresses set forth on Exhibit VI hereof or at  such other address or e-mail address as such Person may hereafter specify for the purpose of notice  to each of the other parties hereto.  Each such notice or other communication shall be effective  if  given by e-mail, upon the receipt thereof,  if given by mail, three (3) Business Days after the time  such communication is deposited in the mail with first class postage prepaid or  if given by any  other means, when received at the address specified in this Section 14.2.  Seller hereby authorizes  Agent and the Purchasers to effect Purchases based on telephonic notices made by any Person  whom Agent or applicable Purchaser in good faith believes to be acting on behalf of Seller.  Seller  agrees to deliver promptly to Agent and each applicable Purchaser a written confirmation of each  telephonic notice signed by an authorized officer of Seller; provided, however, the absence of such  confirmation shall not affect the validity of such notice.  If the written confirmation differs from  the action taken by Agent and/or the applicable Purchaser, the records of Agent and/or the  applicable Purchaser shall govern absent manifest error.  Section 14.3 Ratable Payments.  If any Purchaser, whether by setoff or otherwise, has  payment made to it with respect to any portion of the Aggregate Unpaids owing to such Purchaser  (other than payments received pursuant to Sections 10.2 or 10.3) in a greater proportion than that  received by any other Purchaser entitled to receive a ratable share of such Aggregate Unpaids,  such Purchaser agrees, promptly upon demand, to purchase for cash without recourse or warranty  a portion of such Aggregate Unpaids held by the other Purchasers so that after such purchase each  Purchaser will hold its ratable proportion of such Aggregate Unpaids; provided that if all or any  portion of such excess amount is thereafter recovered from such Purchaser, such purchase shall be  rescinded and the purchase price restored to the extent of such recovery, but without interest.  

 

  RECEIVABLES PURCHASE AGREEMENT  57    Section 14.4 Protection of Ownership Interests of the Purchasers.  (a)  Seller agrees that  from time to time, at its expense, it will promptly execute and deliver all instruments and  documents, and take all actions, that may be necessary or desirable, or that Agent may request, to  perfect, protect or more fully evidence Agent’s (on behalf of the Purchasers) valid ownership of  or first priority perfected security interest in the Asset Portfolio, or to enable Agent or the  Purchasers to exercise and enforce their rights and remedies hereunder. Without limiting the  foregoing, Seller will, upon the request of Agent, file such financing or continuation statements,  or amendments thereto or assignments thereof, and execute and file such other instruments and  documents, that may be necessary or desirable, or that Agent may reasonably request, to perfect,  protect or evidence such valid ownership of or first priority perfected security interest in the Asset  Portfolio.  At any time following the occurrence of an Amortization Event, Agent may, or Agent  may direct Seller or Servicer to, notify the Obligors of Receivables, at Seller’s expense, of the  ownership or security interests of the Purchasers under this Agreement and may also direct that  payments of all amounts due or that become due under any or all Receivables be made directly to  Agent or its designee.  Seller or Servicer (as applicable) shall, at any Purchaser’s request, withhold  the identity of such Purchaser in any such notification.  (b) If any Seller Party fails to perform any of its obligations hereunder, Agent  or any Purchaser may (but shall not be required to) perform, or cause performance of, such  obligations, and Agent’s or such Purchaser’s costs and expenses incurred in connection therewith  shall be payable by Seller as provided in Section 10.3.  Each Seller Party irrevocably authorizes  Agent at any time and from time to time in the sole and absolute discretion of Agent, and appoints  Agent as its attorney-in-fact, to act on behalf of such Seller Party (i) to authorize and/or execute  on behalf of such Seller Party as debtor and to file financing or continuation statements (and  amendments thereto and assignments thereof) necessary or desirable in Agent’s sole and absolute  discretion to perfect and to maintain Agent’s (on behalf of the Purchasers) valid ownership of or  first priority perfected security interest in the Receivables and (ii) to file a carbon, photographic or  other reproduction of this Agreement or any financing statement with respect to the Receivables  as a financing statement in such offices as Agent in its sole and absolute discretion deems necessary  or desirable to perfect and to maintain the ownership of or first priority perfected security interest  in the interests of the Purchasers in the Receivables.  This appointment is coupled with an interest  and is irrevocable.  The authorization by each Seller Party set forth in the second sentence of this  Section 14.4(b) is intended to meet all requirements for authorization by a debtor under Article 9  of any applicable enactment of the UCC, including, without limitation, Section 9-509 thereof.  Section 14.5 Confidentiality.  (a)  Each Seller Party, Agent, each Purchaser Agent and  each Purchaser shall maintain and shall cause each of its employees and officers to maintain the  confidentiality of this Agreement and the other confidential or proprietary information with respect  to Agent, each Purchaser Agent, each Purchaser and their respective businesses obtained by it or  them in connection with the structuring, negotiating and execution of the transactions  contemplated herein, except that such Seller Party, Agent, such Purchaser Agent and such  Purchaser and its officers and employees may disclose such information to such Seller Party’s,  Agent’s, such Purchaser Agent’s and such Purchaser’s external accountants and attorneys and as  required by any Applicable Law (including, without limitation, the Exchange Act) or order of any  judicial or administrative proceeding.  

 

  RECEIVABLES PURCHASE AGREEMENT  58    (b) Anything herein to the contrary notwithstanding, each Seller Party hereby  consents to the disclosure of any nonpublic information with respect to it (i) to Agent, the Financial  Institutions, the Purchaser Agents or the Conduits by each other and by each such Person to such  Person’s equityholders, (ii) by Agent, the Purchaser Agents or the Purchasers to any prospective  or actual assignee or participant of any of them and (iii) by Agent, any Purchaser Agent or any  Conduit to any collateral trustee or security trustee, any rating agency, Funding Source,  Commercial Paper dealer or provider of a surety, guaranty or credit or liquidity enhancement to  any Conduit or any entity organized for the purpose of purchasing, or making loans secured by,  financial assets for which MUFG or any Purchaser Agent acts as the administrative agent and to  any officers, directors, employees, outside accountants and attorneys of any of the foregoing,  provided each such Person is informed of and agrees to maintain the confidential nature of such  information.  In addition, the Purchasers, the Purchaser Agents and Agent may disclose any such  nonpublic information pursuant to any law, rule, regulation, direction, request or order of any  judicial, administrative or regulatory authority or proceedings (whether or not having the force or  effect of law).  Section 14.6 Bankruptcy Petition.  (a) Seller, Servicer, Agent, each Purchaser Agent and  each Purchaser hereby covenants and agrees that, prior to the date that is one year and one day  after the payment in full of all outstanding senior indebtedness of any Conduit or any Financial  Institution or Funding Source that is a special purpose bankruptcy remote entity, it will not institute  against, or join any other Person in instituting against, any Conduit, any Financial Institution or  any such entity any bankruptcy, reorganization, arrangement, insolvency or liquidation  proceedings or other similar proceeding under the laws of the United States or any state of the  United States.  (b) Servicer hereby covenants and agrees that, prior to the date that is one year  and one day after the payment in full of all Obligations of Seller, it will not institute against, or  join any other Person in instituting against, Seller any bankruptcy, reorganization, arrangement,  insolvency or liquidation proceedings or other similar proceeding under the laws of the United  States or any state of the United States.  Section 14.7 Limitation of Liability.  Except with respect to any claim arising out of the  willful misconduct or gross negligence of any Conduit, Agent, any Purchaser Agent, any Funding  Source or any Financial Institution, no claim may be made by any Seller Party or any other Person  against any Conduit, Agent, any Purchaser Agent, any Funding Source or any Financial Institution  or their respective Affiliates, directors, officers, employees, attorneys or agents for any special,  indirect, consequential or punitive damages in respect of any claim for breach of contract or any  other theory of liability arising out of or related to the transactions contemplated by this  Agreement, or any act, omission or event occurring in connection therewith; and each Seller Party  hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or  not accrued and whether or not known or suspected to exist in its favor.  Section 14.8 CHOICE OF LAW.  THIS AGREEMENT SHALL BE GOVERNED AND  CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK  (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF  THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF  LAW PROVISIONS THEREOF, EXCEPT TO THE EXTENT THAT THE PERFECTION, THE  

 

  RECEIVABLES PURCHASE AGREEMENT  59    EFFECT OF PERFECTION OR PRIORITY OF THE INTERESTS OF AGENT OR ANY  PURCHASER IN THE ASSET PORTFOLIO IS GOVERNED BY THE LAWS OF A  JURISDICTION OTHER THAN THE STATE OF NEW YORK).  Section 14.9 CONSENT TO JURISDICTION.  EACH SELLER PARTY HEREBY  IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED  STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK CITY, NEW  YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS  AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO  THIS AGREEMENT AND EACH SELLER PARTY HEREBY IRREVOCABLY AGREES  THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD  AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY  OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH  SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH  COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT  OF AGENT, ANY PURCHASER AGENT OR ANY PURCHASER TO BRING  PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER  JURISDICTION.  ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST  AGENT, ANY PURCHASER AGENT OR ANY PURCHASER OR ANY AFFILIATE OF  AGENT, ANY PURCHASER AGENT OR ANY PURCHASER INVOLVING, DIRECTLY OR  INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR  CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH  SELLER PARTY PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A  COURT IN NEW YORK CITY, NEW YORK.  Section 14.10 WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR  INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR  OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH  THIS AGREEMENT, ANY DOCUMENT EXECUTED BY ANY SELLER PARTY  PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED  HEREUNDER OR THEREUNDER.  Section 14.11 Integration; Binding Effect; Survival of Terms.  (a) This Agreement and each other Transaction Document contain the final and  complete integration of all prior expressions by the parties hereto with respect to the subject matter  hereof and shall constitute the entire agreement among the parties hereto with respect to the subject  matter hereof superseding all prior oral or written understandings.  (b) This Agreement shall be binding upon and inure to the benefit of the parties  hereto and their respective successors and permitted assigns (including any trustee in bankruptcy)  and shall inure to the benefit of the Indemnified Parties and their successors and permitted assigns  (including any trustee in bankruptcy).  This Agreement shall create and constitute the continuing  obligations of the parties hereto in accordance with its terms and shall remain in full force and  effect until terminated in accordance with its terms; provided, however, that the rights and  remedies with respect to (i) any breach of any representation and warranty made by any Seller  

 

  RECEIVABLES PURCHASE AGREEMENT  60    Party pursuant to Article V, (ii) the indemnification, payment and other provisions of Article X,  and Sections 2.7(b), 14.5 and 14.6 shall be continuing and shall survive any termination of this  Agreement.  Section 14.12 Counterparts; Severability; Section References.  This Agreement may be  executed in any number of counterparts and by different parties hereto in separate counterparts,  each of which when so executed shall be deemed to be an original and all of which when taken  together shall constitute one and the same Agreement.  Any provisions of this Agreement which  are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to  the extent of such prohibition or unenforceability without invalidating the remaining provisions  hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or  render unenforceable such provision in any other jurisdiction.  Unless otherwise expressly  indicated, all references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean articles  and sections of, and schedules and exhibits to, this Agreement.  Section 14.13 MUFG Roles and Purchaser Agent Roles.  (a) Each of the Purchasers and Purchaser Agents acknowledges that MUFG  acts, or may in the future act, (i) as administrative agent for any Conduit or any Financial Institution  in MUFG’s Purchaser Group, (ii) as issuing and paying agent for certain Commercial Paper, (iii)  to provide credit or liquidity enhancement for the timely payment for certain Commercial Paper  and (iv) to provide other services from time to time for any Conduit or any Financial Institution in  MUFG’s Purchaser Group (collectively, the “MUFG Roles”).  Without limiting the generality of  this Section 14.13, each Purchaser and each Purchaser Agent hereby acknowledges and consents  to any and all MUFG Roles and agrees that in connection with any MUFG Role, MUFG may take,  or refrain from taking, any action that it, in its discretion, deems appropriate, including, without  limitation, in its role as administrative agent for any Conduit.  (b) Each of the Purchasers acknowledges that each Purchaser Agent acts, or  may in the future act, (i) as administrative agent for the Conduit in such Purchaser Agent’s  Purchaser Group or any Financial Institution in such Purchaser Agent’s Purchaser Group, (ii) as  issuing and paying agent for certain Commercial Paper, (iii) to provide credit or liquidity  enhancement for the timely payment for certain Commercial Paper and (iv) to provide other  services from time to time for the Conduit in such Purchaser Agent’s Purchaser Group or any  Financial Institution in such Purchaser Agent’s Purchaser Group (collectively, the “Purchaser  Agent Roles”).  Without limiting the generality of this Section 14.13, each Purchaser hereby  acknowledges and consents to any and all Purchaser Agent Roles and agrees that in connection  with any Purchaser Agent Role, the applicable Purchaser Agent may take, or refrain from taking,  any action that it, in its discretion, deems appropriate, including, without limitation, in its role as  agent for the Conduit in such Purchaser Agent’s Purchaser Group.  Section 14.14 Characterization.  (a)  It is the intention of the parties hereto that each  Purchase hereunder shall constitute and be treated as an absolute and irrevocable sale to Agent, on  behalf of the Purchasers, for all purposes (other than federal and state income tax purposes), which  such Purchase shall provide Agent, on behalf of the Purchasers, with the full benefits of ownership  of the Asset Portfolio.  Except as specifically provided in this Agreement, each Purchase hereunder  is made without recourse to Seller; provided, however, that (i) Seller shall be liable to each  

 

  RECEIVABLES PURCHASE AGREEMENT  61    Purchaser, each Purchaser Agent and Agent for all representations, warranties, covenants and  indemnities made by Seller pursuant to the terms of this Agreement, and (ii) such sale does not  constitute and is not intended to result in an assumption by any Purchaser, any Purchaser Agent or  Agent or any assignee thereof of any obligation of Seller or any Originator or any other Person  arising in connection with the Receivables, the Related Security, or the related Contracts, or any  other obligations of Seller or any Originator.  (b) In addition to any ownership interest which Agent may from time to time  acquire pursuant hereto, Seller hereby grants to Agent for the ratable benefit of the Purchasers a  valid and perfected security interest in all of Seller’s right, title and interest in, to and under all  Receivables now existing or hereafter arising, the Collections, each Lock-Box, each Collection  Account, all Related Security, all other rights and payments relating to such Receivables, and all  proceeds of any thereof prior to all other liens on and security interests therein to secure the prompt  and complete payment of the Aggregate Unpaids.  Seller hereby authorizes the filing of financing  statements describing the collateral covered thereby as “all of debtor’s personal property and  assets” or words to that effect, notwithstanding that such wording may be broader in scope than  the collateral described in this Section 14.14.  Agent, the Purchaser Agents and the Purchasers  shall have, in addition to the rights and remedies that they may have under this Agreement, all  other rights and remedies provided to a secured creditor under the UCC and other Applicable Law,  which rights and remedies shall be cumulative.  (c) Notwithstanding clause (a) above, it is the intention of the parties hereto  that for U.S. federal, state and local income and franchise tax purposes, each Purchase will be  treated as a loan from the applicable Purchaser to Seller (it being understood that all payments to  the Purchasers, in their capacity as such, representing Financial Institution Yield, CP Costs shall  be deemed to constitute interest payments) (such treatment, the “Intended Tax Treatment”),  except as required by Applicable Law.  The provisions of this Agreement and all related  Transaction Documents shall be construed to further these intentions of the parties hereto.  Section 14.15 Excess Funds.  Each of Seller, Servicer, each Purchaser, each Purchaser  Agent and Agent agrees that each Conduit shall be liable for any claims that such party may have  against such Conduit only to the extent that such Conduit has funds in excess of those funds  necessary to pay matured and maturing Commercial Paper and to the extent such excess funds are  insufficient to satisfy the obligations of such Conduit hereunder, such Conduit shall have no  liability with respect to any amount of such obligations remaining unpaid and such unpaid amount  shall not constitute a claim against such Conduit.  Any and all claims against any Conduit shall be  subordinate to the claims against such Conduit of the holders of Commercial Paper and any Person  providing liquidity support to such Conduit.  Section 14.16 USA PATRIOT Act Notice. The Agent and each Financial Institution  hereby notifies each other party hereto that pursuant to the requirements of the Uniting and  Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct  Terrorism Act of 2001 (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the  “PATRIOT Act”), it is required to obtain, verify and record information that identifies each such  party, which information includes the name, address, tax identification number and other  information that will allow the Agent and each Financial Institution to identify such party in  accordance with the PATRIOT Act. This notice is given in accordance with the requirements of  

 

  RECEIVABLES PURCHASE AGREEMENT  62    the PATRIOT Act.  Promptly following any request therefor, each party to this Agreement shall  deliver to the Agent all documentation and other information requested by the Agent in connection  with applicable “know your customer” and anti-money-laundering and counter-terrorist financing  laws, rules and regulations and the Beneficial Ownership Rule.  Section 14.17 Acknowledgement and Consent to Bail-In of Affected Financial  Institutions.  Notwithstanding anything to the contrary in any Transaction Document or in any  other agreement, arrangement or understanding among any such parties, each party hereto  acknowledges that any liability of any Affected Financial Institution arising under any Transaction  Document, to the extent such liability is unsecured, may be subject to the write-down and  conversion powers of the applicable Resolution Authority and agrees and consents to, and  acknowledges and agrees to be bound by:  (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be payable to  it by any party hereto that is an Affected Financial Institution; and  (b) the effects of any Bail-in Action on any such liability, including, if  applicable:  (i) a reduction in full or in part or cancellation of any such liability;  (ii) a conversion of all, or a portion of, such liability into shares or other  instruments of ownership in such Affected  Financial Institution, its parent undertaking, or  a bridge institution that may be issued to it or otherwise conferred on it, and that such shares  or other instruments of ownership will be accepted by it in lieu of any rights with respect  to any such liability under this Agreement or any other Transaction Document; or  (iii) the variation of the terms of such liability in connection with the  exercise of the write-down and conversion powers of the applicable Resolution Authority.  Section 14.18 Securitisation Regulation; Information; Indemnity.    (a) Securitisation Regulation.   CNE hereby represents, warrants and agrees for  the benefit of the Agent and the Purchasers until the Final Payout Date that:  (i) CNE, as originator for purposes of the Securitisation Regulation,  shall retain a material net economic interest in the Receivables in an amount not less than 5% of  the nominal value of the Receivables in the form of a first loss tranche determined in accordance  with sub-paragraph (d) of Article 6(3) of the Securitisation Regulation, which material economic  interest shall be based upon (1) CNE’s ownership of all of the membership interest of the Seller  and ownership of all of the Subordinated Notes issued by the Seller, and (2) the Seller’s right to  receive the RPA Deferred Purchase Price under Article II.  (ii) CNE shall not change the manner in which it retains or the method  of calculation of such material net economic interest, except to the extent permitted under the  Securitisation Regulation Rules;  

 

  RECEIVABLES PURCHASE AGREEMENT  63    (iii) Each of CNE and the Seller shall not hedge or otherwise mitigate  its credit risk under, or sell, transfer or otherwise surrender all or part of the rights, benefits or  obligations arising from, such material net economic interest, except to the extent permitted under  the Securitisation Regulation Rules;  (iv) CNE shall provide confirmation as to the continued compliance  with the foregoing clauses (i) through (iii) above (A) by providing such confirmation to the  Servicer on a monthly basis for inclusion in each Monthly Report, (B) promptly following the  occurrence of any Potential Amortization Event or Amortization Event and (C) from time to time  promptly upon written request by the Agent (on behalf of any Purchaser) in connection with any  material change in the performance of the Receivables or the transaction contemplated by the  Transaction Documents or any material breach of the Transaction Documents;  (v) CNE shall notify the Agent, each Purchaser and each Purchaser  Agent promptly and in any event within five (5) Business Days of: (A) any change in the identity  of the Person or Persons, if any, through which it is retaining and holding such material net  economic interest or (B) any breach of  clause (i) through (iii) above;  (vi) CNE (A) was not established and does not operate for the sole  purpose of securitizing exposures, (B) has a business strategy and the capacity to meet payment  obligations and the capacity to meet payment obligations (x) consistent with a broader business  enterprise and (y) involving material support from capital, assets, fees or other income available  to CNE, relying neither on the Receivables and any other exposures being securitised by CNE,  the material net economic interest nor on any other interests retained or proposed to be retained  in accordance with the Securitisation Regulation, nor on any corresponding income from such  exposures and interests, and (C) has responsible decision-makers who have the required  experience to enable CNE to pursue its established business strategy, as well as an adequate  corporate governance arrangement;  (vii) CNE granted all the credits giving rise to the Receivables on the  basis of sound and well-defined underwriting criteria; and have, and shall maintain clearly  established processes for approving, amending, modifying or renewing the Receivables and have  effective systems in place to apply those criteria and process to ensure that the Receivables are  granted based on a thorough assessment of each Obligor’s creditworthiness;   (viii) the credit underwriting policies for CNE and the standard terms and  conditions for the granting of credit by CNE are established and implemented by CNE, such that  CNE has been directly or indirectly involved in the origination of the Receivables that have been  extended to the Obligors by CNE, and CNE has established and is managing the securitisation  contemplated by the Transaction Documents and therefore is an ‘originator’ as defined in the  Securitisation Regulation; and  (ix) none of the Receivables is a securitisation position (as defined in  the Securitisation Regulation).  (b) Information.  CNE covenants that it shall, from time to time at first request  by the Agent or any Purchaser (i) provide to the Agent and such Purchaser all information which  

 

  RECEIVABLES PURCHASE AGREEMENT  64    the Agent or such Purchaser reasonably requests in order for the Agent or the Purchaser, as  applicable, to comply with any of its obligations under the Securitisation Regulation, and (ii) take  such further action, provide such further information and enter into such other agreements not  otherwise provided for hereunder as may be reasonably required by any Purchaser in order for  such Purchaser to comply with its obligations under the Securitisation Regulation in relation to the  Transaction Documents and the transactions contemplated thereby.  (c) Indemnity.  CNE hereby agrees to indemnify and hold harmless each  Indemnified Party from and against any and all EU Losses (as defined below) resulting from or  arising out of any breach by CNE of this Section 14.18.  “EU Losses” shall mean each of (i) the  amount necessary to compensate such Indemnified Party for any increased cost or any reduction  in its rate of return on capital which such Indemnified Party reasonably attributes to such increase  in capital that is required or directed to be maintained by that Indemnified Party in relation to its  interest in such Covered Pool (including by application of an additional risk weight pursuant to  Article 270a of Regulation (EU) No. 575/2013) and (ii) any out-of-pocket costs and expenses  (including reasonable fees of external counsel) of such Indemnified Party resulting from or arising  out of any breach by CNE of this Section 14.18.    (Signature Pages Follow) 

 

  RECEIVABLES PURCHASE AGREEMENT    S-1    WHEREOF, the parties hereto have caused this Agreement to be executed and delivered  by their duly authorized officers as of the date hereof.    NEWENERGY RECEIVABLES LLC      By:________________________________  Name:   Title:         CONSTELLATION NEWENERGY, INC.,  as Servicer      By:________________________________  Name:   Title:          

 

  RECEIVABLES PURCHASE AGREEMENT  S-2    MUFG BANK, LTD., as a Financial Institution      By: _____________________________________  Name:   Title:          VICTORY RECEIVABLES CORPORATION, as a  Conduit      By: _____________________________________  Name:   Title:          MUFG BANK, LTD., as a Purchaser Agent      By:________________________________  Name:   Title:             MUFG BANK, LTD., as Agent      By:________________________________  Name:   Title:           

 

  RECEIVABLES PURCHASE AGREEMENT  S-3    PNC BANK, NATIONAL ASSOCIATION, as a  Purchaser Agent      By:________________________________  Name:   Title:               PNC BANK, NATIONAL ASSOCIATION, as a  Financial Institution      By:________________________________  Name:   Title:          

 

  RECEIVABLES PURCHASE AGREEMENT    S-4    MIZUHO BANK, LTD., as a Purchaser Agent      By:________________________________  Name:   Title:               MIZUHO BANK, LTD., as a Financial Institution      By:________________________________  Name:   Title:      

 

  RECEIVABLES PURCHASE AGREEMENT  S-5      PNC BANK, NATIONAL ASSOCIATION, as a Co- Arranger      By:________________________________  Name:   Title:         

 

  RECEIVABLES PURCHASE AGREEMENT  S-6    MIZUHO BANK, LTD., as a Co-Arranger      By:________________________________  Name:   Title: 

 

  RECEIVABLES PURCHASE AGREEMENT    Exh. I-1    EXHIBIT I  DEFINITIONS  As used in this Agreement, the following terms shall have the following meanings (such  meanings to be equally applicable to both the singular and plural forms of the terms defined):  “Accrual Period” means each Fiscal Month, provided that the initial Accrual Period  hereunder means the period from (and including) the date hereof to (and including) the last day of  the Fiscal Month thereafter.  “Accrued Customer Refunds” means, at any time of determination, the estimated  aggregate accrued refunds owing by the CNE Parties to the Obligors with respect to the  outstanding Receivables, as reasonably determined from time to time the Agent.  As of the Closing  Date, the “Accrued Customer Refunds” shall be $1,500,000 and such amount may be updated,  from time to time, by the Agent in connection with any audit or field examination of the  Receivables upon not less than five (5) Business Days’ notice to the Seller and the Servicer, but  not more than once quarterly (unless an Amortization Event or Potential Amortization Event has  occurred and is continuing).  “ACH Receipts” means funds received in respect of Automatic Debit Collections.  “Adjusted Dilution Ratio” means, as of any day, the average of the Dilution Ratios for the  preceding twelve Fiscal Months.  “Adverse Claim” means any ownership interest or claim, mortgage, deed of trust, pledge,  lien, security interest, hypothecation, charge or other encumbrance or security arrangement of any  nature whatsoever, whether voluntarily or involuntarily given, including, but not limited to, any  conditional sale or title retention arrangement, and any assignment, deposit arrangement or lease  intended as, or having the effect of, security and any filed financing statement or other notice of  any of the foregoing (whether or not a lien or other encumbrance is created or exists at the time of  the filing); it being understood that any thereof in favor of, or assigned to, the Agent (for the benefit  of the Purchasers) shall not constitute an Adverse Claim.  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.  “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls,  is controlled by or is under common control with such Person or is a director or officer of such  Person.  “Affiliate Receivable” means any Receivable, an Obligor of which is an Affiliate of any  CNE Party.  “Agent” has the meaning set forth in the preamble to this Agreement.  “Aggregate Capital” means, on any date of determination, the aggregate outstanding  Capital of all Purchasers on such date.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-2    “Aggregate Reduction” has the meaning set forth in Section 1.3.  “Aggregate Unpaids” means, at any time, an amount equal to the sum of all accrued and  unpaid fees under any Fee Letter, CP Costs, Financial Institution Yield, Aggregate Capital and all  other unpaid Obligations (whether due or accrued) at such time.  “Agreement” means this Receivables Purchase Agreement, as it may be amended, restated,  supplemented or otherwise modified and in effect from time to time.  “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the  Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus  1⁄2 of 1% and (c) the greater of (i) 0.00% and (ii) Term SOFR for a one month tenor in effect on  such day plus SOFR Spread, provided however, that the Alternate Base Rate applicable to any  portion of the Asset Portfolio or Capital accruing yield in accordance with this clause (c) that is  not advanced on a Monthly Settlement Date shall be Daily One Month Term SOFR plus the SOFR  Spread for each day during the initial Term SOFR Settlement Period applicable to such portion of  the Asset Portfolio or Capital from the date such Incremental Purchase is made pursuant to Section  1.1 until the next occurring Monthly Settlement Date.  Any change in the Alternate Base Rate due  to a change in the Prime Rate, the Federal Funds Effective Rate, Daily One Month Term SOFR or  Term SOFR shall be effective from and including the effective date of such change in the Prime  Rate, the Federal Funds Effective Rate, Daily One Month Term SOFR or Term SOFR,  respectively.  “Alternate Base Rate Term SOFR Determination Day” has the meaning specified in the  definition of “Term SOFR”.  “Amortization Period” means the period commencing on the earlier of (i) the Facility  Termination Date and (ii) the occurrence of an Amortization Event (that has not been expressly  waived in accordance with this Agreement), and ending on the Final Payout Date.  “Amortization Event” has the meaning set forth in Article IX.  “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction  applicable to the Seller Parties or any of their Subsidiaries from time to time concerning or relating  to bribery or corruption.   “Applicable Law” means, with respect to any Person, (x) all provisions of law, statute,  treaty, constitution, ordinance, rule, regulation, ordinance, requirement, restriction, permit,  executive order, certificate, decision, directive or order of any Governmental Authority applicable  to such Person or any of its property and (y) all judgments, injunctions, orders, writs, decrees and  awards of all courts and arbitrators in proceedings or actions in which such Person is a party or by  which any of its property is bound.  “Asset Portfolio” has the meaning set forth in Section 1.2(b).  “Assignment Agreement” has the meaning set forth in Section 12.1(b).  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-3    “Authorized Officer” means, with respect to any Person, its president, corporate controller,  treasurer or chief financial officer.  “Automatic Debit Collection” means the payment of Collections by an Obligor by means  of automatic electronic funds transfer from the Obligor’s bank account.  “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.  “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, regulation rule or requirement for such EEA Member Country from  time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the  United Kingdom,  Part I of the United Kingdom Banking Act 2009 (as amended from time to time)  and any other law, regulation or rule applicable in the United Kingdom relating to the resolution  of unsound or failing banks, investment firms or other financial institutions or their Affiliates  (other than through liquidation, administration or other insolvency proceedings).   “Beneficial Ownership Rule” means 31 C.F.R. § 1010.230.  “BGE Home Receivable” means all indebtedness and other obligations of any obligor,  whether constituting an account, chattel paper, instrument or general intangible, arising in  connection with the providing heating and air conditioning installations and repairs along with  plumbing repairs, in each case, by the BGE Home division.  “Billed-by-Originator Receivable” means any End-User Receivable other than a Billed- by-Utility Receivable.  “Billed-by-Utility Obligor” means any Obligor with respect to which any of its Receivables  are subject to a Billed-by-Utility Program.  “Billed-by-Utility Program” means a program pursuant to which a Utility agrees to bill  Receivables on behalf of an Originator and for which such bills are consolidated to include both  Delivery Charges owing to such Utility as well as all amounts owing to such Originator under the  related Receivable.  “Billed-by-Utility Receivable” means any Receivable billed or contracted to be billed, as  the case may be, by a Utility on behalf of an Originator to pursuant to a Billed-by-Utility Program.  “Broken Funding Costs” means for any Capital of any Purchaser which: (i) is reduced for  any reason on any day other than a Settlement Date, (ii) is initially funded at Term SOFR and is  converted to another rate on any day other than a Settlement Date or (iii) is assigned, transferred  or funded pursuant to a Funding Agreement or otherwise transferred or terminated on a date prior  to the date on which it was originally scheduled to end; an amount equal to the excess, if any, of  (A) the CP Costs or Financial Institution Yield (as applicable) that would have accrued during the  remainder of the Settlement Periods or the tranche periods for Commercial Paper determined by  the applicable Purchaser Agent or Agent to relate to such Capital (as applicable) subsequent to the  date of such reduction, conversion, assignment, transfer, funding or termination of such Capital if  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-4    such reduction, conversion, assignment, transfer, funding or termination had not occurred, over  (B) the income, if any, actually received net of any costs of redeployment of funds during the  remainder of such period by the holder of such Capital from investing the portion of such Capital  not so allocated.  In the event that the amount referred to in clause (B) exceeds the amount referred  to in clause (A), the relevant Purchaser or Purchasers agree to pay to Seller the amount of such  excess.  All Broken Funding Costs shall be due and payable hereunder upon demand.  “Budget Billing Plan” means the “Budget Billing Plan” or similar levelized billing plan  pursuant to which the related Obligor’s invoice amount for each billing cycle is a constant amount  (or approximately constant) irrespective of usage for the related billing cycle.  “Budget Bill Receivable” means any Receivable, the Obligor of which has entered into a  Budget Billing Plan with the related Originator.  “Business Day” means any day that is not a Saturday, Sunday or other day that is a legal  holiday under the laws of the State of New York or is a day on which banking institutions in such  state are authorized or required by law to close.  “Capital” means at any time with respect to the Asset Portfolio and any Purchaser, an  amount equal to (A) the amount of Cash Purchase Price paid by such Purchaser to Seller for  Purchases pursuant to Sections 1.1 and 1.2, minus (B) the sum of the aggregate amount of  Collections and other payments received by Agent or such Purchaser, as applicable, which in each  case are applied to reduce such Purchaser’s Capital in accordance with the terms and conditions  of this Agreement; provided that such Capital shall be restored (in accordance with Section 2.5) in  the amount of any Collections or other payments so received and applied if at any time the  distribution of such Collections or payments are rescinded, returned or refunded for any reason.  “Capital Coverage Amount” means, at any time of determination, the amount equal to (a)  the Net Receivable Pool Balance at such time, minus (b) the Required Reserves at such time.  “Capital Coverage Deficit” means, at any time of determination, the amount, if any, by  which (a) the Aggregate Capital at such time, exceeds (b) the Capital Coverage Amount at such  time.  “Capital Stock” means, with respect to any Person, any and all common shares, preferred  shares, interests, participations, rights in or other equivalents (however designated) of such  Person’s capital stock, partnership interests, limited liability company interests, membership  interests or other equivalent interests and any rights (other than debt securities convertible into or  exchangeable for capital stock), warrants or options exchangeable for or convertible into such  capital stock or other equity interests.  “Cash Purchase Price” means, with respect to any Incremental Purchase of any portion  of the Asset Portfolio, the amount paid to Seller for such portion of the Asset Portfolio which shall  not exceed the least of (i) the amount requested by Seller in the applicable Purchase Notice, (ii)  the unused portion of the Purchase Limit on the applicable Purchase date, taking into account any  other proposed Incremental Purchase requested on the applicable Purchase date, and (iii) the  excess, if any, of the Net Receivable Pool Balance (less the Required Reserves) on the applicable  Purchase date over the aggregate outstanding amount of the Aggregate Capital determined  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-5    immediately prior to such Incremental Purchase, taking into account any other proposed  Incremental Purchase requested on the applicable Purchase date.  “CEG” means Constellation Energy Generation, LLC, a Pennsylvania limited liability  company (formerly known as Exelon Generation Company, LLC), together with its successors  and assigns.  “Change of Control” means the occurrence of any of the following:  (a) CNE ceases to own, directly, 100% of the issued and outstanding Capital  Stock of the Seller free and clear of all Adverse Claims;  (b) Performance Guarantor ceases to own, directly or indirectly, 100% of the  issued and outstanding Capital Stock of CNE, each Originator and the Servicer;  (c) any Subordinated Note shall at any time cease to be owned by an Originator,  free and clear of all Adverse Claims; or  (d) a “Change in Control” under the Credit Agreement. For purposes of this  clause (d), unless otherwise defined in this Agreement, terms used herein (including all  defined terms used within such terms ) shall have the respective meaning assigned to  such terms in the Credit Agreement as in effect on February 1, 2022 (the “Credit  Agreement Effective Date”) and without giving effect to any amendment, waiver,  modification or termination thereof; provided, however, if after the Credit Agreement  Effective Date, any term used herein (including all defined terms used within such  terms ) is waived, amended or modified, then for all purposes of this clause (d), such  term shall automatically and without further action on the part of any Person, be  deemed to be also so waived, amended or modified, if at the time of such waiver,  amendment or modification, (i) all Purchasers (or an Affiliate thereof) are a party to the  Credit Agreement and the Required Purchasers (or an Affiliate thereof) consented to  such waiver, amendment or modification and (ii) such waiver, amendment or  modification is consummated in accordance with the terms of the Credit Agreement.  “Charged-Off Receivable” means a Receivable which, consistent with the Credit and  Collection Policy, would be or should have been written off as uncollectible.  “Closing Date” has the meaning set forth in Section 6.1.  “Co-Arranger” has the meaning set forth in the preamble to this Agreement.  “Code” means the Internal Revenue Code of 1986, as amended.  “Connection Income Taxes” means Other Connection Taxes that are imposed on or  measured by net income (however denominated) or that are franchise Taxes or branch profits  Taxes.  “CNE” has the meaning set forth in the preamble to this Agreement.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-6    “CNE Party” means each of CNE, CEG, the Seller, the Servicer and each Originator and  their respective successors and assigns.  For the avoidance of doubt, the term CNE Party shall not  include any Person then acting as Servicer that is not an Affiliate of CEG or CNE.  “Collection Account” means each account listed on Exhibit IV and maintained at a  Collection Bank in the name of Seller.  “Collection Account Agreement” means with respect to each Collection Account and  Lock-Box, if applicable, a valid and enforceable agreement in form and substance reasonably  satisfactory to the Agent, among the Seller, the Servicer, the Agent and any Collection Bank,  whereupon the Seller, as sole owner of the related Collection Account and the customer of the  related Collection Bank in respect of such Collection Account, shall transfer to the Agent exclusive  dominion and control over and otherwise perfect a first-priority security interest in, such Collection  Account and the cash, instruments or other property on deposit or held therein.  “Collection Bank” means, at any time, any of the banks holding one or more Collection  Accounts.  “Collection Notice” means a notice, in substantially the form attached to the related  Collection Account Agreement, from Agent to a Collection Bank, or any similar or analogous  notice from Agent to a Collection Bank.  “Collections” means, with respect to any Receivable, all cash collections and other cash  and other proceeds in respect of such Receivable, including, without limitation, all scheduled  payments, prepayments, yield, Finance Charges or other related amounts accruing in respect  thereof, all cash proceeds of Related Security with respect to such Receivable; for the avoidance  of doubt, in no event shall Collections be deemed to include any such cash collections or other  proceeds from Excluded Receivables.  “Commercial Paper” means promissory notes of any Conduit issued by such Conduit in  the commercial paper market.  “Commitment” means, for each Financial Institution, the commitment of such Financial  Institution to make Incremental Purchases to the extent that the Conduit (if any) in its Purchaser  Group declines to make such Incremental Purchases, in an amount not to exceed (i) in the  aggregate, the amount set forth opposite such Financial Institution’s name on Schedule A to this  Agreement, as such amount may be modified in accordance with the terms hereof (including,  without limitation, any termination of Commitments pursuant to Section 4.4 hereof) and (ii) with  respect to any individual Incremental Purchase hereunder, its Pro Rata Share of the Cash Purchase  Price therefor.  “Concentration Percentage” means (i) for any Group A Obligor, 12.0%, (ii) for any Group  B Obligor, 6.0%, (iii) for any Group C Obligor, 4.0% and (iv) for any Group D Obligor, 3.0%.  “Conduit” has the meaning set forth in the preamble to this Agreement.    “Conduit Costs” means, for any outstanding Capital of any Conduit, an amount equal to  such Capital multiplied by a per annum rate equivalent to the “weighted average cost” (as defined  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-7    below) related to the issuance of indexed Commercial Paper of such Conduit that is allocated, in  whole or in part, to fund such Capital (and which may also be allocated in part to the funding of  other assets of such Conduit); provided, however, that if any component of such rate is a discount  rate, in calculating such rate for such Capital for such date, the rate used to calculate such  component of such rate shall be a rate resulting from converting such discount rate to an interest  bearing equivalent rate per annum; provided, however, that on any day when any Amortization  Event shall have occurred that remains continuing, the applicable “Conduit Costs” for each  Conduit shall be calculated using a rate per annum equal to the sum of (x) 3.00% per annum, plus  (y) the greater of (A) the applicable Alternate Base Rate and (B) the applicable “weighted average  cost” on such day.  As used in this definition, the “weighted average cost” shall consist of (x) the  actual interest rate paid to purchasers of indexed Commercial Paper issued by such Conduit, (y)  the costs associated with the issuance of such Commercial Paper (including dealer fees and  commissions to placement agents), and (z) interest on other borrowing or funding sources by such  Conduit, including to fund small or odd dollar amounts that are not easily accommodated in the  commercial paper market.  “Conforming Changes” means, with respect to either the use or administration of Term  SOFR or Daily One Month Term SOFR or the use, administration, adoption or implementation of  any Benchmark Replacement, any technical, administrative or operational changes (including  changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition  of “U.S. Government Securities Business Day,” the definition of “Term SOFR Settlement Period,”  the definition of “Settlement Period” or any similar or analogous definition (or the addition of a  concept of “yield period”), timing and frequency of determining rates and making payments of  yield, timing of purchase requests or prepayment, conversion or continuation notices, the  applicability and length of lookback periods, the applicability of Section 4.7 and other technical,  administrative or operational matters) that the Agent decides may be appropriate to reflect the  adoption and implementation of any such rate or to permit the use and administration thereof by  the Agent in a manner substantially consistent with market practice (or, if the Agent decides that  adoption of any portion of such market practice is not administratively feasible or if the Agent  determines that no market practice for the administration of any such rate exists, in such other  manner of administration as the Agent decides is reasonably necessary in connection with the  administration of this Agreement and the other Transaction Documents).   “Consent Notice” has the meaning set forth in Section 4.4(a).  “Consent Period” has the meaning set forth in Section 4.4(a).  “Contract” means, with respect to any Receivable, any and all instruments, agreements,  invoices or other writings (including those with electronic signatures or other electronic  authorization), which may be executed in counterparts and received by facsimile or electronic mail,  pursuant to which such Receivable arises or which evidences such Receivable.  “COVID-19” means the 2019 Novel Coronavirus or 2019-nCoV.  “COVID-19 Emergency” means collectively, the public health emergency declared by the  United States Secretary of Health and Human Services on January 27, 2020, with respect to the  2019 Novel Coronavirus and all related federal and state emergency declarations and measures.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-8    “CP Costs” means, for each day, the aggregate discount or yield accrued with respect to  the outstanding Capital of each respective Conduit as determined in accordance with the definition  of Conduit Costs.  “Credit Agreement” means the Credit Agreement, dated as of February 1, 2022 (as it may  be amended, restated, supplemented or otherwise modified from time to time) by and among CEG,  the lenders from time to time party thereto, the other parties from time to time party thereto and  JPMorgan, as administrative agent.  “Credit and Collection Policy” means Seller’s and/or the applicable Originator’s credit  and collection policies and practices relating to Contracts and Receivables existing on the Closing  Date and summarized in Exhibit VIII hereto, as modified from time to time in accordance with  this Agreement.  “Cut-Off Date” means the last day of a Fiscal Month.  “Daily One Month Term SOFR” means, for any day during a Settlement Period, the Term  SOFR Reference Rate for a tenor of one-month on such day, or if such day is not a U.S.  Government Securities Business Day, the immediately preceding U.S. Government Securities  Business Day (such day, the “Daily One Month Term SOFR Determination Day”), as such rate  is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New  York City time) on any Daily One Month Term SOFR Determination Day the Term SOFR  Reference Rate for one month has not been published by the Term SOFR Administrator and a  Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred,  then Daily One Month Term SOFR will be the Term SOFR Reference Rate for one month as  published by the Term SOFR Administrator on the first preceding U.S. Government Securities  Business Day for which such Term SOFR Reference Rate for one month was published by the  Term SOFR Administrator so long as such first preceding U.S. Government Securities Business  Day is not more than three (3) U.S. Government Securities Business Days prior to such Daily One  Month Term SOFR Determination Day; provided, further, that if Daily One Month Term SOFR  determined as provided above (including pursuant to the proviso above) shall ever be less than the  Floor, then Daily One Month Term SOFR shall be deemed to be the Floor.  “Daily One Month Term SOFR Determination Day” has the meaning specified in the  definition of “Daily One Month Term SOFR”.  “Daily One Month Term SOFR Financial Institution” means (i) PNC and (ii) any other  Financial Institution that has provided written notice to the Seller of its election to be a “Daily One  Month Term SOFR Financial Institution” hereunder; provided, however, that any Daily One  Month Term SOFR Financial Institution may cease to be a Daily One Month Term SOFR Financial  Institution on any day by providing written notice thereof to the Seller.   “Days Sales Outstanding” means, on any date, the number of days equal to the product of  (a) 30 and (b) the amount obtained by dividing (i) the aggregate Outstanding Balance of all  Receivables as of the Cut-Off Date of the most recently ended Fiscal Month, by (ii) the aggregate  initial Outstanding Balance of all Receivables which were originated during the immediately  preceding Fiscal Month.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-9    “Deemed Collections” means the aggregate of all amounts Seller shall have been deemed  to have received as a Collection of a Receivable.  If at any time, (i) the Outstanding Balance of  any Receivable is either (w) reduced as a result of any defective or rejected goods or services, any  discount, dispute, refunds, netting, rebates or any adjustment or otherwise by Seller or any  Originator (other than cash Collections on account of the Receivables), (x) reduced as a result of  converting such Receivable to an Excluded Receivable, (y) reduced as a result of applying any  Deposit Balances or (z) reduced or canceled as a result of a setoff in respect of any claim by any  Person (whether such claim arises out of the same or a related transaction or an unrelated  transaction) or any netting by any Person or (ii) any of the representations or warranties in Article  V are no longer true with respect to any Receivable, Seller shall be deemed to have received a  Collection of such Receivable in the amount of (A) such reduction or cancellation in the case of  clause (i) above, and (B) the entire Outstanding Balance in the case of clause (ii) above.  “Default Fee” means with respect to any amount due and payable by Seller in respect of  any Aggregate Unpaids, interest on any such unpaid Aggregate Unpaids at a rate per annum equal  to 3.00% above the Alternate Base Rate.  “Default Ratio” means, as of any Cut-Off Date, a percentage equal to:  (i) the aggregate  Outstanding Balance of all Receivables that are Defaulted Receivables on such Cut-Off Date,  divided by (ii) the aggregate Outstanding Balance of all Receivables on such day.  “Defaulted Receivable” means a Receivable: (a) as to which any payment, or part thereof,  remains unpaid for 91 (or if such Receivable is a Government Receivable, 181) days or more from  the original due date for such payment, (b) as to which the Obligor thereof is subject to an Event  of Bankruptcy that has occurred and is continuing or (c) which, consistent with the Credit and  Collection Policy, would be or should have been written off as uncollectible.  “Delinquent Government Receivable” means a Government Receivables as to which any  payment, or part thereof, remains unpaid for 91 days or more from the original due date for such  payment.  “Delivery Charges” means, with respect to a Contract, any amount payable by the Obligor  for delivery and distribution services or any other services provided by the related Utility.  “Deposit Balance” means, as of any date, the aggregate amount of security deposits and  other deposits received by or on behalf of the Obligors that are then being held by the Originators  and Affiliates thereof (or any agent thereof on their behalf).  “Designated Obligor” means an Obligor indicated by Agent to Seller in writing.  “Dilution” means, at any time, the aggregate amount of reductions or cancellations  described in clause (i) of the definition of “Deemed Collections”.  “Dilution Horizon Ratio” means, as of any date, a ratio (expressed as a percentage),  computed as of the Cut-Off Date of the most recently ended Fiscal Month by dividing (i) the  aggregate initial Outstanding Balance of all Receivables originated by the Originators during the  most recently ended Fiscal Month, by (ii) the Net Receivable Pool Balance as of the Cut-Off Date  of the most recently ended Fiscal Month.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-10    “Dilution Ratio” means, as of any Cut-Off Date, a ratio (expressed as a percentage),  computed by dividing (i) the aggregate amount of all Dilution in respect of Receivables which  occurred during the Fiscal Month ending on such Cut-Off Date, by (ii) the aggregate initial  Outstanding Balance of all Receivables generated by the Originators during the Fiscal Month one  (1) month prior to the Fiscal Month ending on such Cut-Off Date.  “Dilution Reserve Floor Percentage” means the product of:  ADR x DHR  where:  ADR =  Adjusted Dilution Ratio;  DHR = Dilution Horizon Ratio.  “Dilution Spike” means, at any time, the highest Dilution Ratio observed over the previous  12 months.  “Dilution Volatility Ratio” means the product of:  ((DS – ADR) x DS/ADR)  where:  ADR = Adjusted Dilution Ratio;  DS = Dilution Spike    “Discount Rate” means, except as otherwise provided in Section 4.3, for any day in any  Settlement Period with respect to any Capital (or any portion thereof) of any Financial Institution,  the applicable rate set forth below:  (a) if such Capital (or any portion thereof) is being funded by any Daily One  Month Term SOFR Financial Institution on such day, the applicable Daily One Month  Term SOFR plus the SOFR Spread; and  (b) if such Capital (or any portion thereof) is being funded by any other Financial  Institution on such day, the applicable Term SOFR plus the SOFR Spread;  provided, however, that:   (i) on any day as to any Capital (or any portion thereof) of any Financial  Institution, the Discount Rate shall equal the applicable Alternate Base Rate if the Agent  determines that (x) funding such Capital (or portion thereof) at the applicable Term SOFR  or Daily One Month Term SOFR would violate any Applicable Law or (y) the Alternate  Base Rate is applicable at such time pursuant to Section 4.3; and  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-11    (ii) on any day when any Amortization Event shall have occurred that remains  continuing, the applicable Discount Rate for the Capital of each Financial Institution shall  be a rate per annum equal to the sum of (x) 3.00% per annum, plus (y) the greater of (A)  the applicable Alternate Base Rate and (B) the applicable “Discount Rate” set forth above  for such Capital on such day.  “Distributed Generation Receivables” means all indebtedness and other obligations of any  obligor, whether constituting an account, chattel paper, instrument or general intangible, arising in  connection with CNE’s provision of distributed generation services, including energy efficiency,  solar and other distributed generation products.  “Dynamic Dilution Reserve Percentage” means, at any time, a percentage calculated as  follows:  ((SF x ADR) + DVR) x DHR  where:  SF = stress factor of 2.00;  ADR = Adjusted Dilution Ratio;  DVR = Dilution Volatility Ratio;  DHR = Dilution Horizon Ratio.  “Dynamic Loss Reserve Percentage” means, at any time, the product of:  SF x LR x LHR  where:  SF = stress factor of 2.00;  LR = the highest three-month average Loss Ratio over the past 12 months;  LHR = Loss Horizon Ratio.   “EEA Financial Institution” means (a) any credit institution or investment firm  established in any EEA Member Country which is subject to the supervision of an EEA Resolution  Authority, (b) any entity established in an EEA Member Country which is a parent of an institution  described in clause (a) of this definition, or (c) any financial institution established in an EEA  Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this  definition and is subject to consolidated supervision with its parent.  “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-12    “EEA Resolution Authority” means any public administrative authority or any person  entrusted with public administrative authority of any EEA Member Country (including any  delegee) having responsibility for the resolution of any EEA Financial Institution.  “Efficiency Made Easy Program” means the “Efficiency Made Easy” or similar program  pursuant to which an Originator assists Obligors in the funding of energy efficiency upgrades.  “Efficiency Made Easy Receivable” means any Receivable, the Obligor of which has  entered into an Efficiency Made Easy Program.  “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor person), as in effect from time to time, available  at http://www.lma.eu.com/pages.aspx?p=499.  “Eligible Receivable” means, at any time, a Receivable:  (a) the Obligor of which (i) is a resident of, and has both a billing address and  a service address in, the United States; (ii) with respect to any End-User Receivable, is  not an Affiliate of any CNE Party; (iii) with respect to any End-User Receivable, is not  disconnected by the related Originator or Utility for non-payment or any other reason;  (iv) with respect to any End-User Receivable, is not a Utility; (v) is not a material  supplier of any Originator; (vi) is not a party to any Payment Plan (unless all amounts  owing thereunder have been reduced to zero) and (vii) is neither a Designated Obligor  nor a Sanctioned Person;  (b) that no more than 50% of the aggregate Outstanding Balance of all  Receivables of the related Obligor are Defaulted Receivables;  (c) that either (i) is an Eligible Unbilled Receivable or (ii) an invoice for such  Receivable has been delivered to the related Obligor;  (d) that (i) is not a Defaulted Receivable, (ii) if a Level I Ratings Event has  occurred and is continuing, is neither a Delinquent Government Receivable nor an  Affiliate Receivable, (iii) is not a Gas Receivable, (iv) is not a Budget Bill Receivable  and (v) has not been cancelled;  (e) which by its terms has Invoice Payment Terms of (i) if an End-User  Receivable, (A) and the Obligor of which is any Subject Obligor or any Subsidiary  thereof, 160 days or less or (B) otherwise, 120 days or less and (ii) if a POR Receivable,  30 days or less;  (f) that arises under a Contract that has not had any payment or other terms of  such Contract extended, modified or waived, other than in accordance with the Credit  and Collection Policy and only so long as such extension, modification or waive is in  compliance with Section 8.2(d);  (g) that (i) is an “account” within the meaning of Article 9 of the UCC of all  applicable jurisdictions, (ii) is not evidenced by “instruments” or “chattel paper” within  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-13    the meaning of Article 9 of the UCC of all applicable jurisdictions, (iii) does not  constitute, or arise from the sale of, “as-extracted collateral” within the meaning of  Article 9 of the UCC of all applicable jurisdictions and (iv) is not payable in  installments;  (h) that (i) is denominated and payable only in United States dollars in the  United States and (ii) the related Contract directs payment thereof to be sent directly to  (A) a Lock-Box or a Collection Account or (B) if such Receivable is a Billed-by-Utility  Receivable, an Eligible Utility Account;  (i) that arises under a Contract in substantially the form of one of the form  contracts provided to Agent prior to the Closing Date or otherwise approved by Agent  in writing, which, together with such Receivable, is in full force and effect and  constitutes the legal, valid and binding obligation of the related Obligor enforceable  against such Obligor in accordance with its terms subject to no offset, counterclaim or  other defense;  (j) that arises under a Contract that (i) does not require the Obligor under such  Contract to consent to the transfer, sale or assignment of the rights and duties of the  applicable Originator or any of its assignees under such Contract and (ii) does not  contain a confidentiality provision that purports to restrict the ability of any Purchaser  to exercise its rights under this Agreement, including, without limitation, its right to  review the Contract;  (k) that arises under a Contract that contains an obligation to pay a specified  sum of money, contingent only upon (i) if an End-User Receivable, the sale of goods  or the provision of services or (ii) if a POR Receivable, the sale of Purchased-by-Utility  Receivable, in each case, by the applicable Originator;  (l) that, together with the Contract related thereto, does not contravene any law,  rule or regulation applicable thereto (including, without limitation, any law, rule and  regulation relating to truth in lending, fair credit billing, fair credit reporting, equal  credit opportunity, fair debt collection practices and privacy) and with respect to which  no part of the Contract related thereto is in violation of any such law, rule or regulation;  (m) that satisfies all applicable requirements of the Credit and Collection Policy;  (n) that was generated in the ordinary course of the applicable Originator’s  business;  (o) that if an End-User Receivable, (i) arises solely from the provision or  transportation of electricity and provision of related services, in each case, to the related  Obligor by an Originator and not by any other Person (in whole or in part), (ii)  the  provision of a bill with respect thereto to the applicable Obligor has been made or will  be made (I) if a Billed-by-Originator Receivable, by the related Originator and not by  any Utility or any other Person and (II) if a Billed-by-Utility Receivable, by the related  Utility and not by any other Person and (iii) does not include any Delivery Charges;  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-14    provided, that only the portion of such Receivable in an amount equal to such Delivery  Charges shall be ineligible;  (p) that if a Billed-by-Utility Receivable, (i) for which the applicable Utility is  obligated to invoice and collect such Billed-by-Utility Receivable; (ii) for which no  dispute or claim exists between the related Utility and any CNE Party as to (I) any  Delivery Charges owed to such Utility by any CNE Party or (II) any payments on any  Receivables owned by such Utility to any CNE Party; (iii) for which the related Utility  is obligated under the related Billed-by-Utility Program to turn over any Collections it  receives on such Billed-by-Utility Receivable directly to a Collection Account within  fifteen (15) days of receipt thereof by such Utility; (iv) for which the related Billed-by- Utility Program is in full force and effect and constitutes the legal, valid and binding  obligation of the related Utility enforceable against such Utility in accordance with its  terms subject to no offset, counterclaim or other defense; (v) for which the related  Utility has waived any right of set-off that it may have that would result in such Utility  reducing the amount it remits to the related Originator on such Billed-by-Utility  Receivable; (vi) for which the related Utility is not subject to an Event of Bankruptcy  that has occurred and is continuing; (vii) the related Contract directs payment thereof  to be sent directly to a Lock-Box, a Collection Account or an Eligible Utility Account  and (viii) for which the related Utility has satisfied and fully performed all obligations  on its part with respect to the related Billed-by-Utility Receivables required to be  fulfilled by it, and no further action is required to be performed by the related Utility  with respect to the related Billed-by-Utility Receivable;  (q) that if a POR Receivable, (i) is reflected in the applicable Originator’s  accounting system as owed by the applicable Utility (and, for the avoidance of doubt,  not owed by an Obligor that is not a Utility), (ii) for which the applicable Utility is  obligated to invoice and collect the related Purchased-by-Utility Receivable, (iii) for  which the related Utility is unconditionally obligated to pay such POR Receivable  irrespective of the payment (or lack thereof) by the related Obligors with respect to the  related Purchased-by-Utility Receivables, (iv) for which no dispute or claim exists  between the related Utility and any CNE Party as to any Delivery Charges owed to  such Utility by any CNE Party, (v) for which the related Utility has waived any right  of set-off that it may have that would result in such Utility reducing its payment on  such POR Receivable, (vi) for which the related Utility is then purchasing from the  related Originator all End-User Receivables originated by such Originator for which  such Utility is then delivering and distributing electricity to the related obligor of such  End-User Receivable and (vii) for which the related Originator has satisfied and fully  performed all obligations on its part with respect to the related Purchased-by-Utility  Receivables required to be fulfilled by it, and no further action is required to be  performed by the related Originator or any Affiliate thereof with respect to the related  Purchased-by-Utility Receivables;  (r) as to which Agent has not notified Seller that Agent has determined that  such Receivable or class of Receivables is not acceptable as an Eligible Receivable,  including, without limitation, because such Receivable arises under a Contract that is  not acceptable to Agent;  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-15    (s) that is not subject to any right of rescission, set-off, counterclaim, any other  defense (including defenses arising out of violations of usury laws) of the applicable  Obligor against the applicable Originator or any other Adverse Claim, and the Obligor  thereon holds no right as against such Originator to cause such Originator to repurchase  the goods or merchandise or Purchased-by-Utility Receivables the sale of which shall  have given rise to such Receivable (except with respect to sale discounts effected  pursuant to the Contract, or defective goods returned in accordance with the terms of  the Contract);  (t) the payment of which by the applicable Obligor is not subject to any  withholding Tax;  (u) that is not interest-bearing and does not include any Finance Charges;  provided, that only the portion of such Receivable in an amount equal to such Finance  Charges shall be ineligible;  (v) if a Level I Ratings Event has occurred and is continuing, for which neither  the related Originator nor any Affiliate thereof is holding any Deposit Balances or other  deposits received by or on behalf of the related Obligor; provided that only the portion  of such Receivable in an amount equal to such Deposit Balances or other deposits shall  be ineligible;  (w) as to which the related Originator has satisfied and fully performed all  obligations on its part with respect to such Receivable required to be fulfilled by it, and  no further action is required to be performed by any Person with respect thereto other  than (i) payment thereon by the applicable Obligor and (ii) in the case of an Unbilled  Receivable, the provision of a bill to the applicable Obligor;  (x) all right, title and interest to and in which has been validly transferred by  the applicable Originator directly to Seller under and in accordance with the  Receivables Sale Agreement, and Seller has good and marketable title thereto free and  clear of any Adverse Claim;  (y) that arises under a Contract that does not permit the Outstanding Balance of  such Receivable to be paid in installments;  (z) that is not a Modified Receivable;  (aa) which does not require payments based on a percentage of the applicable  Obligor’s income;  (bb) that, together with the related Contract, has not been sold, assigned or  pledged by the applicable Originator or Seller, except pursuant to the terms of the  Receivables Sale Agreement and this Agreement;  (cc) with respect to which there is only one original executed copy of the related  Contract, which will, together with the related records be held by Servicer as bailee of  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-16    Agent and the Purchasers, and no other custodial agreements are in effect with respect  thereto; and  (dd) for which the related invoice does not include any Excluded Receivables or  Gas Receivables.  Notwithstanding anything to the contrary herein or in any other Transaction Document, in  calculating the aggregate Outstanding Balance of all Eligible Receivables at any time, the sum of  (i) the Late Charge Proxy at such time, plus (ii) the Accrued Customer Refunds at such time, shall  be reduced from the amount that would otherwise be calculated, for all purposes of this Agreement  and the other Transaction Documents.  “Eligible Unbilled Receivable” means, at any time, any Unbilled Receivable if (a) the  related Originator has recognized the related revenue on its financial books and records under  GAAP, (b) such Unbilled Receivable is not an Efficiency Made Easy Receivable and (c) not more  than thirty (30) days have expired since the date such Unbilled Receivable arose.  “Eligible Utility Account” means, as of any date of determination, each Utility Account  that satisfied each of the following criteria at such time:  (i) such Utility Account is owned by the  related Utility and is located in the United States, (ii) such Utility Account is not subject to any  Adverse Claims, (iii) the related Utility has not granted “control” (within the meaning of Section  9-104 of the UCC of all applicable jurisdictions) over such Utility Account to any Person, (iv) the  bank holding such Utility Account is not then exercising any rights of setoff with respect to any  amounts on deposit in such Utility Account and (v) any Collections on deposit in such Utility  Account are promptly (but in any event, within fifteen (15) days following deposit therein) being  remitted directly to a Collection Account, without setoff or other deduction.  “End-User Receivable” means all indebtedness and other obligations of any Obligor,  whether constituting an account, chattel paper, instrument or general intangible, arising in  connection with the sale of goods or the rendering of services by or on behalf of an Originator, and  further includes, without limitation, the obligation to pay any Finance Charges with respect thereto.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from  time to time.  “ERISA Affiliate” means, with respect to any Person, any corporation, trade or business  which together with the Person is a member of a controlled group of corporations or a controlled  group of trades or businesses and would be deemed a “single employer” within the meaning of  Sections 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.  “Erroneous Payment” has the meaning assigned to it in Section 11.10(a).  “Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section  11.10(d)(i).   “Erroneous Payment Return Deficiency” has the meaning assigned to it in Section  11.10(d)(i).  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-17    “Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section  11.10(e).    “Event of Bankruptcy” shall be deemed to have occurred with respect to a Person if either:  (a) (i) a case or other proceeding shall be commenced, without the application  or consent of such Person, in any court, seeking the liquidation, examinership,  reorganization, debt arrangement, dissolution, winding up, or composition or  readjustment of debts of such Person, the appointment of a trustee, receiver, custodian,  liquidator, examiner, assignee, sequestrator (or other similar official) for such Person  or all or substantially all of its assets, or any similar action with respect to such Person  under any Applicable Law relating to bankruptcy, insolvency, reorganization, winding  up or composition or adjustment of debts; or (ii) an order for relief in respect of such  Person shall be entered in an involuntary case under federal bankruptcy laws or other  similar Applicable Laws now or hereafter in effect; or    (b) such Person (i) shall commence a voluntary case or other proceeding under  any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution  or other similar law now or hereafter in effect, or (ii) shall consent to the appointment  of or taking possession by a receiver, liquidator, examiner, assignee, trustee, custodian,  sequestrator (or other similar official) for, such Person or for any substantial part of its  property, or (iii) shall make any general assignment for the benefit of creditors, or shall  fail to, or admit in writing its inability to, pay its debts generally as they become due,  or, if a corporation or similar entity, its board of directors (or any board or Person  holding similar rights to control the activities of such Person) shall vote to implement  any of the foregoing.  “Excess Concentration” means, without duplication, the sum of the following amounts:  (a) the sum of the amounts calculated for each of the Obligors equal to the  excess (if any) of the aggregate Outstanding Balance of the Eligible Receivables of  such Obligor, over the product of (x) such Obligor’s Concentration Percentage,  multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables; plus    (b) the amount (if any) by which the aggregate Outstanding Balance of all  Eligible Receivables that are Eligible Unbilled Receivables, exceeds 50.0% of the  aggregate Outstanding Balance of all Eligible Receivables; plus    (c) the amount (if any) by which the aggregate Outstanding Balance of all  Eligible Receivables that are Government Receivables, exceeds 6.0% of the aggregate  Outstanding Balance of all Eligible Receivables; plus    (d) the amount (if any) by which the aggregate Outstanding Balance of all  Eligible Receivables that are Extended Term Receivables, exceeds 2.5% of the  aggregate Outstanding Balance of all Eligible Receivables; plus    

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-18    (e) the amount (if any) by which the aggregate Outstanding Balance of all  Eligible Receivables that are Delinquent Government Receivables, exceeds 2.5% of  the aggregate Outstanding Balance of all Eligible Receivables; plus    (f) unless a Level I Ratings Event has occurred and is continuing, the amount  (if any) by which the Deposit Balance, exceeds 2.5% of the aggregate Outstanding  Balance of all Eligible Receivables.    “Exchange Act” means the Securities Exchange Act of 1934, as amended.  “Excluded Receivable” means (i) all Distributed Generation Receivables, (ii) all Gas  Receivables, (iii) all Solar Receivables, (iv) all BGE Home Receivables, (v) all End-User  Receivables that constitute Affiliate Receivables and (vi) all Purchased-by-Utility Receivables;  provided, however, that no indebtedness or other obligation that is included in any Monthly Report  or Weekly Report as a Receivable shall constitute an “Excluded Receivable”.  “Excluded Taxes” means (i) any Taxes based upon, measured by or with respect to any  Indemnified Party’s net income, but only to the extent such Taxes are imposed by a taxing  authority (a) in a jurisdiction (or political subdivision thereof) under the laws of which such  Indemnified Party is organized or incorporated, (b) in a jurisdiction (or political subdivision  thereof) in which such Indemnified Party does business, (c) in a jurisdiction (or political  subdivision thereof) in which such Indemnified Party maintains an office (or branch) or (d) that  are Other Connection Taxes, (ii) any franchise Taxes, branch Taxes or branch profits Taxes  imposed by any jurisdiction (or political subdivision thereof) described in clause (i), (iii) with  regard to any Purchaser organized outside of the United States, (a) any U.S. federal withholding  Tax to the extent it is imposed on amounts payable to such Purchaser at the time such Purchaser  becomes a party to this Agreement and (b) any withholding Tax imposed because such Purchaser  designates a new lending office, except, in each case, to the extent that such Purchaser (or the  transferor to such Purchaser) was entitled, at the time of designation of a new lending office (or  assignment), to receive such additional amounts from any of Seller, Servicer or Performance  Guarantor, as applicable, pursuant to Section 1.5 and (iv) any FATCA Withholding Tax.  “Extended Term Receivable” means any Receivable with Invoice Payment Terms of  greater than 60 days.  “Extension Notice” has the meaning set forth in Section 4.4(a).  “Facility” means the facility providing for Seller to sell the Asset Portfolio as provided in  this Agreement.  “Facility Account” means the account from time to time identified by the Seller to the  Agent and each Purchaser Agent in writing, which may be a Collection Account.  “Facility Termination Date” means the earliest of (i) the Scheduled Termination Date, (ii)  the Business Day specified in a written notice from Agent following the occurrence of an  Amortization Event, (iii) the occurrence of an Amortization Event set forth in Section 9.1(f)  and  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-19    (iv) the date which is 10 Business Days after Agent’s receipt of written notice from Seller that it  wishes to terminate the facility evidenced by this Agreement.  “FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with), any current or future regulations or official interpretations thereof, any  agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental  agreements entered into in connection with the foregoing and any fiscal or regulatory legislation,  rules or official practices implemented to give effect to any such intergovernmental agreements.  “FATCA Withholding Tax” means any withholding Tax imposed under FATCA.  “Federal Bankruptcy Code” means Title 11 of the United States Code entitled  “Bankruptcy,” as amended and any successor statute thereto.  “Federal Funds Effective Rate” means for any day, the weighted average (rounded  upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions  with members of the Federal Reserve System arranged by Federal funds brokers, as published on  the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is  not so published for any day that is a Business Day, the average (rounded upwards, if necessary,  to the next 1/100 of 1%) of the quotations for such day for such transactions received by Agent  from three Federal funds brokers of recognized standing selected by it.  Notwithstanding the  foregoing, if any Financial Institution is borrowing overnight funds on any day from a Federal  Reserve Bank to make or maintain such Financial Institution’s funding of all or any portion of the  Asset Portfolio hereunder, the Federal Funds Effective Rate, at the option of such Financial  Institution, for such Financial Institution shall be the average rate per annum at which such  overnight borrowings are made on any such day.  Each determination of the Federal Funds  Effective Rate shall be conclusive and binding on Seller and the Seller Parties, except in the case  of manifest error.  “Fee Letter” means the letter agreement dated as of the Closing Date (as amended,  restated, supplemented, or otherwise modified from time to time) among Seller, the Agent and the  Purchaser Agents.  “Final Payout Date” means the date following the Facility Termination Date on which the  Aggregate Capital shall have been reduced to zero and all of the Aggregate Unpaids, Obligations  and all other amounts then accrued or payable to Agent, the Purchaser Agents, the Purchasers and  the other Indemnified Parties shall have been indefeasibly paid in full in cash.   “Finance Charges” means, with respect to a Contract, any finance, interest, late payment  charges, early termination charges or similar charges owing by an Obligor pursuant to such  Contract.  “Financial Institutions” has the meaning set forth in the preamble in this Agreement.  “Financial Institution Yield” means for each respective Settlement Period relating to any  Capital (or portion thereof) of any of the Financial Institutions, an amount for each day during  such Settlement Period equal to the product of (i) the applicable Discount Rate for such Capital  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-20    (or portion thereof) for such day or Settlement Period, as applicable, multiplied by (ii) the Capital  (or portion thereof) of such Financial Institution on such day, annualized on a 360 day basis.  “Fiscal Month” means each calendar month.  “Floor” means a rate of interest equal to 0.00% .   “Funding Agreement” means (i) this Agreement and (ii) any agreement or instrument  executed by any Funding Source with or for the benefit of a Conduit.  “Funding Source” means with respect to any Conduit (i) such Conduit’s Related Financial  Institution(s) or (ii) any insurance company, bank or other funding entity providing liquidity, credit  enhancement or back-up purchase support or facilities to such Conduit.  “GAAP”  means generally accepted accounting principles in effect in the United States of  America as of the date of this Agreement, provided, that if there occurs after the date of this  Agreement any change in GAAP that affects in any material respect the calculation of any amount  described in Sections 9.1(f), Agent and Seller shall negotiate in good faith amendments to the  provisions of this Agreement that relate to the calculation of such amounts with the intent of having  the respective positions of Agent and the Purchasers and Seller after such change in GAAP  conform as nearly as possible to their respective positions as of the date of this Agreement and,  until any such amendments have been agreed upon, the amounts described in Sections 9.1(f) shall  be calculated as if no such change in GAAP has occurred.  “Gas Receivable” means all indebtedness and other obligations of any obligor, whether  constituting an account, chattel paper, instrument or general intangible, arising in connection with  the sale of natural gas or the rendering of services with respect to natural gas by or on behalf of  Constellation NewEnergy Gas Division, LLC or any successor thereto.  “Gas Collections” means, with respect to any Gas Receivable, all cash collections and  other cash and other proceeds in respect of such Gas Receivable, including, without limitation, all  scheduled payments, prepayments, yield, finance charges or other related amounts accruing in  respect thereof.  “Government Receivables” means any Receivables for which the related Obligor is a  Governmental Authority.  “Governmental Authority” means any government or political subdivision (including any  state or other political subdivision thereof) or any agency, authority, bureau, regulatory body,  court, central bank, commission, department or instrumentality of any such government or political  subdivision, or any other entity exercising executive, legislative, judicial, taxing, regulatory or  administrative powers or functions of or pertaining to government or any court, tribunal, grand  jury or arbitrator, or any accounting board or authority (whether or not part of a government) which  is responsible for the establishment or interpretation of national or international accounting  principles, in each case whether foreign or domestic (including any supra-national bodies such as  the European Union or the European Central Bank).  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-21    “Group A Obligor” means an Obligor (or its parent or majority owner, as applicable, if  such parent or majority owner is a guarantor on the related Contract) with a short-term rating of at  least: (a) “A-1” by Standard & Poor’s or, if such Obligor does not have a short-term rating from  Standard & Poor’s, a rating of “A+” or better by Standard & Poor’s on such Obligor’s (or, if  applicable, its parent’s or its majority owner’s) long-term senior unsecured and uncredit-enhanced  debt securities, and (b) “P-1” by Moody’, or, if such Obligor does not have a short-term rating  from Moody’s, a rating of “Al” or better by Moody’s on such Obligor’s (or, if applicable, its  parent’s or its majority owner’s) long-term senior unsecured and uncredit-enhanced debt  securities; provided, that if an Obligor (or its parent or majority owner, as applicable, if such parent  or majority owner is a guarantor on the related Contract) receives a split rating from Standard &  Poor’s and Moody’s, then such Obligor (or its parent or majority owner, as applicable) shall be  deemed to have the lower of the two ratings. Notwithstanding the foregoing, any Obligor that is a  Subsidiary or an Affiliate of an Obligor that satisfies the definition of “Group A Obligor” shall be  deemed to be a Group A Obligor and shall be aggregated with the Obligor that satisfies such  definition for the purposes of clause (a) of the definition of “Excess Concentration” for such  Obligors, unless such deemed Obligor separately satisfies the definition of “Group A Obligor”,  “Group B Obligor”, or “Group C Obligor”, in which case such Obligor shall be separately treated  as a Group A Obligor, a Group B Obligor or a Group C Obligor, as the case may be, and shall be  aggregated and combined for such purposes with any of its Subsidiaries that are Obligors.  “Group B Obligor” means an Obligor (or its parent or majority owner, as applicable, if  such parent or majority owner is a guarantor on the related Contract) that is not a Group A Obligor  and that has a short-term rating of at least: (a) “A-2” by Standard & Poor’s or, if such Obligor does  not have a short-term rating from Standard & Poor’s, a rating of “BBB+” or better by Standard &  Poor’s on such Obligor’s (or, if applicable, its parent’s or its majority owner’s) long-term senior  unsecured and uncredit-enhanced debt securities, and (b) “P-2” by Moody’s or, if such Obligor  does not have a short-term rating from Moody’s, a rating of “Baal” or better by Moody’s on such  Obligor’s (or, if applicable, its parent’s or its majority owner’s) long-term senior unsecured and  uncredit-enhanced debt securities; provided, that if an Obligor (or its parent or majority owner, as  applicable, if such parent or majority owner is a guarantor on the related Contract) receives a split  rating from Standard & Poor’s and Moody’s, then such Obligor (or its parent or majority owner,  as applicable) shall be deemed to have the lower of the two ratings. Notwithstanding the foregoing,  any Obligor that is a Subsidiary or Affiliate of an Obligor that satisfies the definition of “Group B  Obligor” shall be deemed to be a Group B Obligor and shall be aggregated with the Obligor that  satisfies such definition for the purposes of clause (a) of the definition of “Excess Concentration”  for such Obligors, unless such deemed Obligor separately satisfies the definition of “Group A  Obligor”, “Group B Obligor”, or “Group C Obligor”, in which case such Obligor shall be  separately treated as a Group A Obligor, a Group B Obligor or a Group C Obligor, as the case may  be, and shall be aggregated and combined for such purposes with any of its Subsidiaries that are  Obligors.  “Group C Obligor” means an Obligor (or its parent or majority owner, as applicable, if  such parent or majority owner is a guarantor on the related Contract) that is not a Group A Obligor  or a Group B Obligor and that has a short-term rating of at least: (a) “A-3” by Standard & Poor’s  or, if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “BBB- ”or better by Standard & Poor’s on such Obligor’s (or, if applicable, its parent’s or its majority  owner’s) long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-3” by  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-22    Moody’s or, if such Obligor does not have a short-term rating from Moody’s, a rating of “Baa3”  or better by Moody’s on such Obligor’s (or, if applicable, its parent’s or its majority owner’s) long- term senior unsecured and uncredit-enhanced debt securities; provided, that if an Obligor (or its  parent or majority owner, as applicable, if such parent or majority owner is a guarantor on the  related Contract) receives a split rating from Standard & Poor’s and Moody’s, then such Obligor  (or its parent or majority owner, as applicable) shall be deemed to have the lower of the two ratings.  Notwithstanding the foregoing, any Obligor that is a Subsidiary or Affiliate of an Obligor that  satisfies the definition of “Group C Obligor” shall be deemed to be a Group C Obligor and shall  be aggregated with the Obligor that satisfies such definition for the purposes of clause (a) of the  definition of “Excess Concentration” for such Obligors, unless such deemed Obligor separately  satisfies the definition of “Group A Obligor”, “Group B Obligor”, or “Group C Obligor”, in which  case such Obligor shall be separately treated as a Group A Obligor, a Group B Obligor or a Group  C Obligor, as the case may be, and shall be aggregated and combined for such purposes with any  of its Subsidiaries that are Obligors.  “Group D Obligor” means any Obligor that is not a Group A Obligor, Group B Obligor or  Group C Obligor, any Obligor (or its parent or majority owner, as applicable, if such Obligor is  unrated) that is rated by neither Moody’s nor Standard & Poor’s shall be a Group D Obligor.  “Impacted Financial Institution” has the meaning set forth in Section 12.1(c).  “Incremental Purchase” has the meaning set forth in Section 1.1(a).  “Indebtedness” of a Person means such Person’s (i) indebtedness for borrowed money,  (ii) obligations evidenced by bonds, debentures, notes or other similar instruments, (iii)  obligations to pay the deferred purchase price of property or services (other than trade payables  incurred in the ordinary course of business), (iv) obligations as lessee under leases that shall  have been or are required to be, in accordance with GAAP, recorded as capital leases, (v)  obligations (contingent or otherwise) under reimbursement or similar agreements with respect  to the issuance of letters of credit (other than obligations in respect of documentary letters of  credit opened to provide for the payment of goods or services purchased in the ordinary course  of business), (vi) net liabilities under interest rate swap, exchange or cap agreements, (vii)  obligations under any other transaction having the commercial effect of a borrowing of money  entered into by such Person to finance its operations or capital requirements (other than trade  payables incurred in the ordinary course of business) and (viii) obligations under direct or  indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or  otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or  obligations of others of the kinds referred to in clauses (i)  through (vii) above.  “Indemnified Amounts” has the meaning set forth in Section 10.1.  “Indemnified Party” has the meaning set forth in Section 10.1.  “Indemnified Taxes” means (a) Taxes other than Excluded Taxes and (b) to the extent not  otherwise described in (a), Other Taxes.  “Independent Director” shall mean a member of the Board of Directors of Seller who (i)  shall not have been at the time of such Person’s appointment or at any time during the preceding  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-23    five years, and shall not be as long as such Person is a governor of Seller, (A) a director, officer,  employee, partner, shareholder, member, manager, governor or Affiliate of any of the following  Persons (collectively, the “Independent Parties”) other than in a similar capacity as an independent  director of one of the Independent Parties:  Servicer, any CNE Party, or any of their respective  Subsidiaries or Affiliates (other than Seller), (B) a supplier to any of the Independent Parties, (C)  a Person controlling or under common control with any partner, shareholder, member, manager,  governor, Affiliate or supplier of any of the Independent Parties, or (D) a member of the immediate  family of any director, officer, employee, partner, shareholder, member, manager, Affiliate or  supplier of any of the Independent Parties; (ii) has prior experience as an independent director or  governor for a corporation or limited liability company whose charter documents required the  unanimous consent of all independent directors or governors thereof before such corporation or  limited liability company could consent to the institution of bankruptcy or insolvency proceedings  against it or could file a petition seeking relief under any applicable federal or state law relating to  bankruptcy and (iii) has at least three years of employment experience with one or more entities  that provide, in the ordinary course of their respective businesses, advisory, management or  placement services to issuers of securitization or structured finance instruments, agreements or  securities and is employed by any such entity.  “Intended Tax Treatment” has the meaning set forth in Section 14.14(c).  “Invoice Payment Terms” means, with respect to any Receivable, the number of days  following the date of the related original invoice by which such Receivable is required to be paid  in full, as set forth in such original invoice.  “JPMorgan” means JPMorgan Chase Bank, N.A. in its individual capacity and its  successors and assigns.  “Late Charge Proxy” means, at any time of determination, the estimated aggregate  outstanding late charges owing by Obligors with respect to the outstanding Receivables, as  reasonably determined from time to time by the Agent.  As of the Closing Date, the “Late Charge  Proxy” shall be $300,000 and such amount may be updated, from time to time, by the Agent in  connection with any audit or field examination of the Receivables upon not less than five (5)  Business Days’ notice to the Seller and the Servicer, but not more than once quarterly (unless an  Amortization Event or Potential Amortization Event has occurred and is continuing).  “Level I Ratings Event” means, at any time of determination, one or more of the following  events has occurred and is continuing: (i) S&P’s credit rating for CEG’s long-term senior  unsecured and uncredit-enhanced debt securities is below BBB-, (ii) Moody’s credit rating for  CEG’s long-term senior unsecured and uncredit-enhanced debt securities is below Baa3, (iii) CEG  does not have a credit rating by S&P for its long-term senior unsecured and uncredit-enhanced  debt securities or (iv) CEG does not have a credit rating by Moody’s for its long-term senior  unsecured and uncredit-enhanced debt securities.  “Level II Ratings Event” means, at any time of determination, one or more of the  following events has occurred and is continuing: (i) S&P’s credit rating for CEG’s long-term  senior unsecured and uncredit-enhanced debt securities is below BB, (ii) Moody’s credit rating for  CEG’s long-term senior unsecured and uncredit-enhanced debt securities is below Ba2, (iii) CEG  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-24    does not have a credit rating by S&P for its long-term senior unsecured and uncredit-enhanced  debt securities or (iv) CEG does not have a credit rating by Moody’s for its long-term senior  unsecured and uncredit-enhanced debt securities.   “Lock-Box” means each locked postal box with respect to which a bank who has executed  a Collection Account Agreement has been granted exclusive access for the purpose of retrieving  and processing payments made on the Receivables and which is listed on Exhibit IV.  “Loss Horizon Ratio” means, as of any Cut-Off Date, the ratio (expressed as a decimal)  computed by dividing (i) the aggregate initial Outstanding Balance of Receivables generated by  the Originators during the preceding four (4) Fiscal Months, by (ii) the amount equal to the Net  Receivable Pool Balance as of such Cut-Off Date.  “Loss Ratio” means, as of any Cut-Off Date, the ratio (expressed as a decimal) (a) the  numerator of which is the sum of (i) the aggregate Outstanding Balance of all Receivables as to  which any payment, or part thereof, remains unpaid for more than 90 but less than 121 days from  the original due date for such payment, plus (without duplication) (ii) any Losses (net of  recoveries) incurred in the most recently ended Fiscal Month, and (b) the denominator of which is  the aggregate initial Outstanding Balance of all Receivables generated by the Originators during  the Fiscal Month four (4) months prior to the Fiscal Month ending on such Cut-Off Date.  “Loss Reserve Floor Percentage” means 12.0%.  “Losses” means the Outstanding Balance of any Charged-Off Receivable.  “Material Adverse Effect” means, with respect to any event or circumstance, a material  adverse effect on:  (a) (i) if a particular Person is specified, the ability of such Person to perform  its obligations under this Agreement or any other Transaction Document or (ii) if a  particular Person is not specified, the ability of any Originator, Servicer, Performance  Guarantor or Seller to perform its obligations under this Agreement or any other  Transaction Document;  (b) (i) the legality, validity or enforceability against it of any Transaction  Document or (ii) the value, validity, enforceability or collectibility of the Receivables or  any material portion thereof;  (c) the status, existence, perfection, priority, enforceability or other rights and  remedies of any Purchaser or the Agent associated with its respective interest in the  Receivables; or  (d) (i) if a particular Person is specified, the business, assets, liabilities,  property, operations or condition (financial or otherwise) of such Person and its  Subsidiaries or (ii) if a particular Person is not specified, the business, assets, liabilities,  property, operations or conditions (financial or otherwise) of (A) the Seller or (B) any  Originator, Performance Guarantor and the Servicer, taken as a whole.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-25    “Maximum Days Sales Outstanding” means, as of any day, the highest Days Sales  Outstanding over the most recent 12-months.  “Modified Receivable” means a Receivable as to which the payment terms of the related  Contract have been extended or modified for credit reasons since the origination of such  Receivable.  For the avoidance of doubt, Modified Receivable shall not include a Receivable as to  which the payment terms of the related Contract have been extended or modified (i) as required  under Applicable Law or (ii) in connection with the COVID-19 Emergency, in either case, so long  as such modification is made in accordance with Section 8.2(d).  “Monthly Report” means a report, in substantially the form of Exhibit X hereto  (appropriately completed), furnished by Servicer to Agent and each Purchaser Agent pursuant to  Section 8.5.  “Monthly Settlement Date” means the 23rd day of each calendar month (or if such day is  not a Business Day, the next occurring Business Day); provided, however, that the initial Monthly  Settlement Date shall be May 26, 2020.  “Moody’s” means Moody’s Investors Service, Inc.  “MUFG” has the meaning set forth in the preamble to this Agreement.  “MUFG Roles” has the meaning set forth in Section 14.13(a).  “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)  of ERISA to which any CNE Party or any of their respective ERISA Affiliates is making or  accruing an obligation to make contributions, or has within any of the preceding five plan years  made or accrued an obligation to make contributions.  “Net Receivable Pool Balance” means, at any time, an amount equal to (i) the aggregate  Outstanding Balance of all Eligible Receivables at such time, minus (ii) the Excess Concentration  at such time.  “Non-Renewing Financial Institution” has the meaning set forth in Section 4.4(a).  “Nonrecourse Indebtedness” means any Indebtedness that finances the acquisition,  development, ownership or operation of an asset or portfolio of assets in respect of which the  Person to which such Indebtedness is owed has no recourse whatsoever to any CNE Party or any  of its respective Subsidiaries other than:  (i) recourse to the named obligor with respect to such Indebtedness (the “Debtor”) for  amounts limited to the cash flow or net cash flow (other than historic cash flow) from the asset;   (ii) recourse to the Debtor for the purpose only of enabling amounts to be claimed in  respect of such Indebtedness in an enforcement of any security interest or lien given by the Debtor  over the asset or the income, cash flow or other proceeds deriving from the asset (or given by any  shareholder or the like in the Debtor over its shares or like interest in the capital of the Debtor) to  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-26    secure the Indebtedness, but only if the extent of the recourse to the Debtor is limited solely to the  amount of any recoveries made on any such enforcement; and  (iii) recourse to the Debtor generally or indirectly to any Affiliate of the Debtor, under  any form of assurance, undertaking or support, which recourse is limited to a claim for damages  (other than liquidated damages and damages required to be calculated in a specified way) for a  breach of an obligation (other than a payment obligation or an obligation to comply or to procure  compliance by another with any financial ratios or other tests of financial condition) by the Person  against which such recourse is available.  “Obligations” shall have the meaning set forth in Section 2.1.  “Obligations Final Due Date” means the date that is one hundred and eighty days  following the Facility Termination Date.  “Obligor” means a Person obligated to make payments pursuant to a Contract.  “OFAC” means the Office of Foreign Assets Control of the U.S. Department of the  Treasury.   “Originator” means CNE, in its capacity as seller under the Receivables Sale Agreement,  and any other seller from time to time party thereto.  “Other Connection Taxes” means, with respect to any Indemnified Party, Taxes imposed  as a result of a present or former connection between such Indemnified Party and the jurisdiction  imposing such Tax.  “Other Costs” shall have the meaning set forth in Section 10.4.  “Other Sellers” shall have the meaning set forth in Section 10.5.  “Other Taxes” means all present or future stamp, court or documentary, intangible,  recording, filing or similar Taxes that arise from any payment made under, from the execution,  delivery, performance, enforcement or registration of, from the receipt or perfection of a security  interest under, or otherwise with respect to, any Transaction Document.  “Outstanding Balance” of any Receivable at any time means the then outstanding  principal balance thereof.  “Participant” has the meaning set forth in Section 12.2.  “Participant Register” has the meaning set forth in Section 12.2.  “Patriot Act” has the meaning set forth in Section 14.16.  “Payment Instruction” has the meaning set forth in Section 1.4.  “Payment Plan” means any payment plan pursuant to which all or a portion of the current  balance owing by an Obligor to an Originator is payable in two or more installments.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-27    “Payment Recipient” has the meaning assigned to it in Section 11.10(a).    “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in  ERISA.  “Performance Guarantor” means CEG.  “Performance Guaranty” means that certain Amended and Restated Performance  Guaranty, dated as of August 16, 2022, by Performance Guarantor in favor of Agent, as the same  may be amended, restated, supplemented or otherwise modified from time to time.  “Periodic Term SOFR Determination Day” has the meaning specified in the definition of  “Term SOFR”.   “Person” means an individual, partnership, corporation (including a business trust),  limited liability company, joint stock company, trust, unincorporated association, joint venture or  other entity, or a government or any political subdivision or agency thereof.  “Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2)  of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA or Section 412  of the Code, and that is maintained by or contributed to by any CNE Party or any of their respective  ERISA Affiliates, or to which any such entity is obligated to contribute.  “Post-Closing Date” means the date that is 90 days following the Closing Date.  “POR Receivable” means all indebtedness and other obligations of any Obligor that is a  Utility, whether constituting an account, chattel paper, instrument or general intangible, arising in  connection with the sale of a Purchased-by-Utility Receivable by an Originator to such Utility, and  further includes, without limitation, the obligation to pay any Finance Charges with respect thereto.  “Potential Amortization Event” means an event which, with the passage of time or the  giving of notice, or both, would constitute an Amortization Event.  “Prime Rate” means a rate per annum equal to the prime rate of interest announced from  time to time by MUFG or its parent (which is not necessarily the lowest rate charged to any  customer), changing when and as said prime rate changes.  “Proposed Reduction Date” has the meaning set forth in Section 1.3.  “Pro Rata Share” means, for each Purchase Group, a percentage equal to (i) the  Commitment of the Financial Institutions in such Purchase Group, divided by (ii) the aggregate  amount of all Commitments of all Financial Institutions.  “Purchase” means an Incremental Purchase or a Reinvestment.  “Purchase Limit” means $1,100,000,000.  “Purchase Notice” has the meaning set forth in Section 1.2(a).  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-28    “Purchased-by-Utility Program” means a “purchase of receivables” or similar program  pursuant to which a Utility agrees to purchase End-User Receivables from an Originator.  “Purchased-by-Utility Receivable” means any End-User Receivable sold or contracted to  be sold, by an Originator to a Utility pursuant to a Purchased-by-Utility Program.  “Purchaser Agent Roles” has the meaning set forth in Section 14.13(b).  “Purchaser Agents” has the meaning set forth in the preamble to this Agreement.  “Purchaser Group” means with respect to (i) each Conduit, a group consisting of such  Conduit, its Purchaser Agent and its Related Financial Institution(s), (ii) each Financial Institution,  a group consisting of such Financial Institution, the Conduit (if any) for which such Financial  Institution is a Related Financial Institution, its Purchaser Agent and each other Financial  Institution that is a Related Financial Institution for such Conduit (if any) and (iii) each Purchaser  Agent, a group consisting of such Purchaser Agent and the Conduit (if any) and Related Financial  Institution(s) for which such Purchaser Agent is acting as Purchaser Agent hereunder.  “Purchasers” means each Conduit and each Financial Institution.  “Purchasing Financial Institution” has the meaning set forth in Section 12.1(b).  “Ratings Request” has the meaning as specified in Section 10.2(c).  “Receivable” means all End-User Receivables and POR Receivables; provided, however,  that “Receivable” shall not include any Excluded Receivable.  Indebtedness and other rights and  obligations arising from any one transaction, including, without limitation, indebtedness and other  rights and obligations represented by an individual invoice, shall constitute a Receivable separate  from a Receivable consisting of the indebtedness and other rights and obligations arising from any  other transaction; provided further, that any indebtedness, rights or obligations referred to in the  immediately preceding sentence shall be a Receivable regardless of whether the account debtor,  any Originator or Seller treats such indebtedness, rights or obligations as a separate payment  obligation.  “Receivables Sale Agreement” means that certain Receivables Sale Agreement, dated as  of the Closing Date, by and among the Originators and Seller, as amended, restated, supplemented  or otherwise modified from time to time.  “Records” means, with respect to any Receivable, all Contracts and other documents,  books, records and other information (including, without limitation, computer programs, tapes,  disks, punch cards, data processing software and related property and rights) relating to such  Receivable, any Related Security therefor and the related Obligor.  “Reduction Notice” has the meaning set forth in Section 1.3.  “Register” has the meaning set forth in Section 12.1.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-29    “Regulatory Change” shall mean (i) the adoption after the date hereof of any applicable  law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy)  or any change therein after the date hereof, (ii) any change after the date hereof in the interpretation  or administration thereof by any governmental authority, central bank or comparable agency  charged with the interpretation or administration thereof, or compliance with any request or  directive (whether or not having the force of law) of any such authority, central bank or comparable  agency, or (iii) the compliance, whether commenced prior to or after the date hereof, by any  Funding Source or Purchaser with (a) the final rule titled Risk-Based Capital Guidelines; Capital  Adequacy Guidelines; Capital Maintenance: Regulatory Capital; Impact of Modifications to  Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper  Programs; and Other Related Issues, adopted by the United States bank regulatory agencies on  December 15, 2009, or any rules or regulations promulgated in connection therewith by any such  agency; (b) the Dodd-Frank Wall Street Reform and Consumer Protection Act adopted by  Congress on July 21, 2010 or (c) the revised Basel Accord prepared by the Basel Committee on  Banking Supervision as set out in the publication entitled “International Convergence of Capital  Measurements and Capital Standards: a Revised Framework,” as updated from time to time  (including, without limitation, the Basel II and Basel III).  “Reinvestment” has the meaning set forth in Section 1.6.  “Related Financial Institution” means with respect to each Conduit, each Financial  Institution set forth opposite such Conduit’s name on Schedule A to this Agreement and/or, in the  case of an assignment pursuant to Section 12.1, set forth in the applicable Assignment Agreement.  “Related Goods” means with respect to any Receivable, the goods sold or licensed to or  financed for the Obligor which sale, licensing or financing gave rise to such Receivable and all  financing statements or other filings with respect thereto.  “Related Security” means, with respect to any Receivable:  (a) all of Seller’s interest in the Related Goods or other inventory and goods  (including returned or repossessed inventory or goods), if any, the sale, licensing or financing of  which by the applicable Originator gave rise to such Receivable, and all insurance contracts with  respect thereto,  (b) all other security interests or liens and property subject thereto from time to  time, if any, purporting to secure payment of such Receivable, whether pursuant to the Contract  related to such Receivable or otherwise, together with all financing statements and security  agreements describing any collateral securing such Receivable,  (c) all guaranties, letters of credit, insurance, “supporting obligations” (within  the meaning of Section 9-102(a) of the UCC of all applicable jurisdictions) and other agreements  or arrangements of whatever character from time to time supporting or securing payment of such  Receivable whether pursuant to the Contract related to such Receivable or otherwise,  (d) all service contracts and other contracts and agreements associated with  such Receivable,  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-30    (e) all Records related to such Receivable,  (f) all of Seller’s right, title and interest in, to and under the Receivables Sale  Agreement and the Performance Guaranty,  (g) all of Seller’s right, title and interest in and to each Lock-Box and Collection  Account, and any and all agreements related thereto,  (h) all Collections in respect thereof, and  (i) all proceeds of such Receivable and any of the foregoing.  “Reportable Event” shall mean any reportable event as defined in Section 4043(c) of  ERISA or the regulations issued thereunder with respect to a Plan, other than an event for which  the 30-day notice period is waived.  “Required Purchasers” means, at any time, the Financial Institutions with Commitments  in excess of 50% of the aggregate Commitments hereunder; provided, however, at any time there  are (i) only two Financial Institutions, “Required Purchasers” shall mean both such Financial  Institutions and (ii) more than two Financial Institutions, “Required Purchasers” shall mean at least  two Financial Institutions.  “Required Reserve” means, on any day during a Fiscal Month, (i) the sum of (a) the greater  of (I) the sum of the Loss Reserve Floor Percentage and the Dilution Reserve Floor Percentage  and (II) the sum of the Dynamic Loss Reserve Percentage and the Dynamic Dilution Reserve  Percentage, plus (b) the sum of the Yield Reserve Percentage and the Servicing Fee Reserve  Percentage, multiplied by (ii) the Net Receivable Pool Balance as of such date.  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  “Restricted Junior Payment” means (i) any dividend or other distribution, direct or  indirect, on account of any shares of any class of membership units of Seller now or hereafter  outstanding, except a dividend payable solely in shares of that class of membership units or in any  junior class of membership units of Seller, (ii) any redemption, retirement, sinking fund or similar  payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of  membership units of Seller now or hereafter outstanding, (iii) any payment or prepayment of  principal of, premium, if any, or interest, fees or other charges on or with respect to, and any  redemption, purchase, retirement, defeasance, sinking fund or similar payment and any claim for  rescission with respect to the Subordinated Loans (as defined in the Receivables Sale Agreement),  (iv) any payment made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any  outstanding warrants, options or other rights to acquire shares of any class of membership units of  Seller now or hereafter outstanding, and (v) any payment of management fees by Seller (except  for reasonable management fees to the Originators or their Affiliates in reimbursement of actual  management services performed).  “RPA Deferred Purchase Price” has the meaning set forth in Section 1.7.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-31    “Sanctioned Country” means, at any time, a country, region or territory which is itself, or  whose government is, the subject or target of any Sanctions (as of the Effective Date, the Crimea  region of Ukraine, Cuba, Iran, North Korea, Syria, the so-called Donetsk People’s Republic region  of Ukraine and the so-called Luhansk People’s Republic region of Ukraine).     “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related  list of designated Persons maintained by the Office of Foreign Assets Control of the U.S.  Department of the Treasury, the U.S. Department of State, the United Nations Security Council,  the European Union, any European Union member state, Her Majesty’s Treasury of the United  Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in  a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described  in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.  “Sanctions” means all economic or financial sanctions or trade embargoes or restrictive  measures imposed, administered or enforced from time to time by (a) the U.S. government,  including those administered by the Office of Foreign Assets Control of the U.S. Department of  the Treasury or the U.S. Department of State or (b) the United Nations Security Council, the  European Union, any European Union member state, Her Majesty’s Treasury of the United  Kingdom or other relevant sanctions authority.  “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill  Companies, Inc.  “Scheduled Termination Date” means August 15, 2025, as extended by the mutual  agreement of Seller, Agent, the Purchaser Agents and the Purchasers in accordance with  Section 4.4(a).  “Securitisation Regulation” means Regulation (EU) 2017/2402 of the European  Parliament and of the Council of 12 December 2017 laying down a general framework for  securitisation and creating a specific framework for simple, transparent and standardised  securitisation. amending certain other European Union directives and regulations, and including  any related laws, regulations or directions made in relation to the Securitisation Regulation in the  United Kingdom amending the Securitisation Regulation as it will apply in the United Kingdom,  in each case as amended and in effect from time to time.  “Securitisation Regulation Rules” means the Securitisation Regulation, together with all  relevant implementing regulations in relation thereto, all regulatory and/or implementing technical  standards in relation thereto or applicable in relation thereto pursuant to any transitional  arrangements made pursuant to the Securitisation Regulation and, in each case, any relevant  guidance published in relation thereto by the European Banking Authority, the European Securities  and Markets Authority, the European Insurance and Occupational Pensions Authority and the  European Commission and, in the United Kingdom, the Financial Conduct Authority or the  Prudential Regulation Authority (or in each case, any predecessor or any other applicable  regulatory authority).  “Seller” has the meaning set forth in the preamble to this Agreement.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-32    “Seller Parties” or “Seller Party” has the meaning set forth in the preamble to this  Agreement.  For the avoidance of doubt, the term Seller Parties or Seller Party shall not include  any Person then acting as Servicer that is not an Affiliate of CEG or CNE.  “Servicer” means at any time the Person (which may be Agent) then authorized pursuant  to Article VIII to service, administer and collect Receivables.  “Servicing Fee” has the meaning set forth in Section 8.6.  “Servicing Fee Rate” means 1.0% per annum.  “Servicing Fee Reserve Percentage” means, on any day, a percentage determined as  follows:   (SF x SFR) x (MDSO/360)   where:  SFR = the Servicing Fee Rate;  SF  =  stress factor of 1.5; and  MDSO = the Maximum Days Sales Outstanding on such day.  “Settlement Date” means, (i) so long as no Amortizing Event has occurred and is  continuing and the Facility Termination Date has not occurred, the Monthly Settlement Date and  (ii) on and after the Facility Termination Date or if an Amortization Event has occurred and is  continuing, each day selected from time to time by the Agent (it being understood that the Agent  may select such Settlement Date to occur as frequently as daily), or, in the absence of such  selection, the Monthly Settlement Date.  “Settlement Period” means each Accrual Period.   “Solar Receivable” means all indebtedness and other obligations of any obligor, whether  constituting an account, chattel paper, instrument or general intangible, arising in connection with  the installation of on-site solar PV and the purchase of electricity generated by on-site solar PV  systems.  “SOFR” means a rate equal to the secured overnight financing rate as administered by the  SOFR Administrator.  “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).  “SOFR Spread” means 0.10% per annum.   “Solvent” means, with respect to any Person and as of any particular date, (i) the fair value  of the assets of such Person, at a fair valuation, will exceed the debts and liabilities, direct,  subordinated, contingent or otherwise, of such Person; (ii) the present fair saleable value of the  property of such Person will be greater than the amount that will be required to pay the probable  liabilities of such Person on its debts and other liabilities, direct, subordinated, contingent or  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-33    otherwise, as such debts and other liabilities become absolute and matured; (iii) such Person will  be able to pay its debts and liabilities, direct, subordinated, contingent or otherwise, as such debts  and liabilities become absolute and matured; and (iv) such Person will not have unreasonably small  capital with which to conduct the businesses in which it is engaged as such businesses are currently  conducted and are proposed to be conducted.   “Subject Obligor” means each Obligor set forth on Exhibit XI hereto.  “Subordinated Note” has the meaning set forth in the Receivables Sale Agreement.  “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding  securities having ordinary voting power of which shall at the time be owned or controlled, directly  or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or  more of its Subsidiaries, or (ii) any partnership, association, limited liability company, joint  venture or similar business organization more than 50% of the ownership interests having ordinary  voting power of which shall at the time be so owned or controlled.  Unless otherwise expressly  provided, all references herein to a “Subsidiary” shall mean a Subsidiary of Seller.  “Taxes” means all income, gross receipts, rental, franchise, excise, stamp, occupational,  capital, value added, sales, use, ad valorem (real and personal), property (real and personal) and  taxes, fees, levies, imposts, charges or withholdings of any nature whatsoever, together with any  assessments, penalties, fines, additions to tax and interest thereon, howsoever imposed, by any  Governmental Authority or other taxing authority in the United States or by any foreign  government, foreign governmental subdivision or other foreign or international taxing authority.   “Terminating Commitment Amount” means, with respect to any Terminating Financial  Institution, an amount equal to the Commitment (without giving effect to clause (iii) of the proviso  to the penultimate sentence of Section 4.4(b)) of such Terminating Financial Institution, minus an  amount equal to 2% of such Commitment.  “Terminating Commitment Availability” means, with respect to any Terminating  Financial Institution, the positive difference (if any) between (a) an amount equal to the  Commitment (without giving effect to clause (iii) of the proviso to the penultimate sentence of  Section 4.4(b)) of such Terminating Financial Institution, minus an amount equal to 2% of such  Commitment, minus (b) the Capital funded by such Terminating Financial Institution.  “Terminating Financial Institution” has the meaning set forth in Section 4.4(b).  “Termination Date” has the meaning set forth in Section 2.2(c).  “Termination Percentage” has the meaning set forth in Section 2.2(c).  “Term SOFR” means,   (a) for any calculation with respect to any portion of the Asset Portfolio or  Capital funded at Term SOFR, the Term SOFR Reference Rate for a tenor comparable to the  applicable Term SOFR Settlement Period on the day (such day, the “Periodic Term SOFR  Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-34    day of such Term SOFR Settlement Period, as such rate is published by the Term SOFR  Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic  Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not  been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect  to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR  Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding  U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such  tenor was published by the Term SOFR Administrator so long as such first preceding U.S.  Government Securities Business Day is not more than three (3) U.S. Government Securities  Business Days prior to such Periodic Term SOFR Determination Day, and  (b) for any calculation with respect to any portion of the Asset Portfolio or  Capital funded at the Alternate Base Rate on any day, the Term SOFR Reference Rate for a tenor  of one month on the day (such day, the “Alternate Base Rate Term SOFR Determination Day”)  that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is  published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York  City time) on any Alternate Base Rate Term SOFR Determination Day the Term SOFR Reference  Rate for the applicable tenor has not been published by the Term SOFR Administrator and a  Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred,  then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term  SOFR Administrator on the first preceding U.S. Government Securities Business Day for which  such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator  so long as such first preceding U.S. Government Securities Business Day is not more than three  (3) U.S. Government Securities Business Days prior to such Alternate Base Rate Term SOFR  Determination Day;  provided, further, that if Term SOFR determined as provided above (including pursuant to  the proviso under clause (a) or clause (b) above) shall ever be less than the Floor, then Term SOFR  shall be deemed to be the Floor.  “Term SOFR Administrator” means CME Group Benchmark Administration Limited  (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Agent in  its reasonable discretion).   “Term SOFR Reference Rate” means  the forward-looking term rate based on SOFR.  “Term SOFR Settlement Period” means the period from and including each Settlement  Date to (but excluding) the following Settlement Date; provided, that the last Term SOFR  Settlement Period shall end on the Final Payout Date.  “Transaction Documents” means, collectively, this Agreement, each Purchase Notice, the  Receivables Sale Agreement, the Performance Guaranty, each Collection Account Agreement,  each Fee Letter, and the Subordinated Note, in each case, as amended, restated, supplemented or  otherwise modified from time to time.  “UCC” means the Uniform Commercial Code as from time to time in effect in the specified  jurisdiction.  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-35    “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential  Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended  from time to time) promulgated by the United Kingdom Financial Conduct Authority, which  includes certain credit institutions and investment firms, and certain affiliates of such credit  institutions or investment firms.  “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.  “Unbilled Receivable” means, as of any date of determination, any Receivables as to which  the invoice or bill with respect thereto has not yet been sent to the Obligor thereof.  “U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b)  a Sunday or (c) a day on which the Securities Industry and Financial Markets Association  recommends that the fixed income departments of its members be closed for the entire day for  purposes of trading in United States government securities.  “Utility” means an electric utility (or affiliated captive finance company).  “Utility Account” means a bank account of a Utility.   “Yield Reserve Percentage” means, at any time, a percentage equal to the product of (i)  the Alternate Base Rate as of such date, (ii) 1.5 and (iii) the Maximum Days Sales Outstanding as  of such date divided by 360.  “Weekly Report” means a report, with such information and in a form reasonably  acceptable to Agent (appropriately completed), furnished by Servicer to Agent and each Purchaser  Agent pursuant to Section 8.5.  “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete  or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle  E of Title IV of ERISA.  “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In  Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial  Institution or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to  suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.  All accounting terms defined directly or by incorporation in this Agreement or the  Receivables Sale Agreement shall have the defined meanings when used in any certificate or other  

 

  RECEIVABLES PURCHASE AGREEMENT  Exh. I-36    document delivered pursuant thereto unless otherwise defined therein. For purposes of this  Agreement, the Receivables Sale Agreement and all such certificates and other documents, unless  the context otherwise requires: (a) accounting terms not specifically defined herein shall be  construed in accordance with GAAP; (b) all terms used in Article 9 of the UCC in the State of  New York, and not specifically defined herein, are used herein as defined in such Article 9;  (c) references to any amount as on deposit or outstanding on any particular date means such  amount at the close of business on such day; (d) the words “hereof,” “herein” and “hereunder” and  words of similar import refer to such agreement (or the certificate or other document in which they  are used) as a whole and not to any particular provision of such agreement (or such certificate or  document); (e) references to any Section are references to such Section in such agreement (or the  certificate or other document in which the reference is made), and references to any paragraph,  subsection, clause or other subdivision within any Section or definition refer to such paragraph,  subsection, clause or other subdivision of such Section or definition; (f) the term “including”  means “including without limitation”; (g) references to any law, rule, regulation, or directive of  any governmental or regulatory authority refer to such law, rule, regulation, or directive, as  amended from time to time and include any successor law, rule, regulation, or directive;  (h) references to any agreement refer to that agreement as from time to time amended or  supplemented or as the terms of such agreement are waived or modified in accordance with its  terms; (i) references to any Person include that Person’s successors and assigns; (j) headings are  for purposes of reference only and shall not otherwise affect the meaning or interpretation of any  provision hereof; (k) unless otherwise provided, in the calculation of time from a specified date to  a later specified date, the term “from” means “from and including”, and the terms “to” and “until”  each means “to but excluding”; (l) terms in one gender include the parallel terms in the neuter and  opposite gender; and (m) the term “or” is not exclusive.  

 

  RECEIVABLES PURCHASE AGREEMENT    Exh. II-1      EXHIBIT II  FORM OF PURCHASE NOTICE  [Date]  MUFG Bank, Ltd., as Agent  1221 Avenue of the Americas  6th Floor  New York, New York 10020  MUFG Bank, Ltd., as a Purchaser Agent  1221 Avenue of the Americas  6th Floor  New York, New York 10020  Attention:   ABS Surveillance  PNC Bank, National Association  The Tower at PNC Plaza  300 Fifth Avenue, 11th Floor  Pittsburgh, PA 15222    Mizuho Bank, Ltd.  1271 Avenue of the Americas  New York, NY 10020  Attn: Johan Andreasson  Re:  PURCHASE NOTICE  Ladies and Gentlemen:   Reference is hereby made to the Receivables Purchase Agreement, dated as of April 8,  2020, by and among NewEnergy Receivables LLC, a Delaware limited liability company  (“Seller”), Constellation NewEnergy, Inc., a Delaware corporation, as Servicer, the Financial  Institutions party thereto, the Conduits party thereto, the Purchaser Agents party thereto and  MUFG Bank, Ltd., as Agent (as amended, restated, supplemented or otherwise modified from time  to time, the “Receivables Purchase Agreement”).  Capitalized terms used herein shall have the  meanings assigned to such terms in (or by reference in) the Receivables Purchase Agreement.  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. II-2       Each of the Agent and each Purchaser Agent is hereby notified of the following Purchase:  Purchase Price: $   Portion of the Purchase Price Payable by  MUFG’s Purchaser Group: $   Portion of the Purchase Price Payable by  PNC Bank, National Association’s  Purchaser Group: $   Portion of the Purchase Price Payable by  Mizuho Bank, Ltd.’s Purchaser Group: $   Date of Purchase:       Please credit the Purchase Price in immediately available funds to our Facility Account  [and then wire-transfer the Purchase Price in immediately available funds on the above-specified  date of purchase to]  [Account Name]  [Account No.]  [Bank Name & Address]  [ABA #]  Reference:  Telephone advice to: [Name] @ tel. No. ( )      Please advise [Name] at telephone no ( ) _________________ if any Conduit will not be  making this purchase.   In connection with the Purchase to be made on the above listed “Date of Purchase” (the  “Purchase Date”), the Seller hereby certifies that the following statements are true on the date  hereof, and will be true on the Purchase Date (before and after giving effect to the proposed  Purchase):  (i) the representations and warranties of the Seller set forth in Section 5.1 of  the Receivables Purchase Agreement are true and correct on and as of the Purchase Date as though  made on and as of such date;  (ii) no event has occurred and is continuing, or would result from the proposed  Purchase, that will constitute an Amortization Event or a Potential Amortization Event;  (iii) the Facility Termination Date has not occurred, the Aggregate Capital does  not exceed the Purchase Limit and the Net Receivable Pool Balance equals or exceeds the sum of  (i) the Aggregate Capital, plus (ii) the Required Reserves (in each case as of the Purchase Date);  and  (iv) the amount of Aggregate Capital is $________ after giving effect to the  Purchase to be made on the Purchase Date.  Very truly yours,    

 

RECEIVABLES PURCHASE AGREEMENT    Exh. II-3      NewEnergy Receivables LLC      By: _______________________________________  Name:        Title:    

 

RECEIVABLES PURCHASE AGREEMENT    Exh. III-1      EXHIBIT III  Places of Business of the Seller Parties;   Locations of Records;   Federal Employer Identification Number(s)    A. Principal Place of Business for Seller and CNE   Seller:  1310 Point St, Baltimore, MD 21231         CNE:  Currently: 1310 Point St, Baltimore, MD 21231       1001 Louisiana St Suite 2300, Houston, TX 77002       Previously: 100 Constellation Way, Baltimore, MD 21200       1221 Lamar St, Suite 750, Houston, TX 77010       B. Location of Records and Chief Executive Offices:   Seller:  Currently: 1310 Point St, Baltimore, MD 21231       1001 Louisiana St Suite 2300, Houston, TX 77002       Previously: 1310 Point St, Baltimore, MD 21231       1001 Louisiana St Suite 2300, Houston, TX 77002       10 S. Dearborn St., 48th Floor, Chicago, IL 60680-5398      CNE:  Currently: 1310 Point St, Baltimore, MD 21231       1001 Louisiana St Suite 2300, Houston, TX 77002       Previously: 1310 Point St, Baltimore, MD 21231       1001 Louisiana St Suite 2300, Houston, TX 77002       10 S. Dearborn St., 48th Floor, Chicago, IL 60680-5398       C. Jurisdiction of Organization:   Seller:   Delaware    

 

RECEIVABLES PURCHASE AGREEMENT    Exh. III-2       CNE:   Delaware  D. Federal Employer Identification Nos. and Organization Nos.:   Seller:    Federal Employer I.D. No.: N/A      Organizational No.: 2938363           CNE:   Federal Employer I.D. No.:  95-4714890      Organizational No.:   2938363        E. Other Names:   Seller:   None     CNE:   None       

 

RECEIVABLES PURCHASE AGREEMENT    Exh. IV      EXHIBIT IV  Lock Boxes   Collection Banks; Collection Accounts  Collection Banks  Name and Address  Account Numbers: Lock-Boxes:  Bank of America, N.A.  2000 Clayton Rd, Building D  - 6th Floor  Concord, CA, 94520-2425  Attn:  Blocked Account  Support  Mail Code:  CA4-704-06-08   N/A  Wells Fargo Bank, National  Association  Mail Address Code:  D1129- 072  301 South Tryon Street, 7th  Floor  Charlotte, North Carolina  28282-1915  Attn:  DACA Team     N/A  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. V-1      EXHIBIT V  FORM OF COMPLIANCE CERTIFICATE   To: MUFG Bank, Ltd., as Agent  This Compliance Certificate is furnished pursuant to that certain Receivables Purchase  Agreement, dated as of April 8, 2020 (as amended, restated or otherwise modified from time to  time, the “Agreement”), by and among NewEnergy Receivables LLC, a Delaware limited liability  company (the “Seller”), Constellation NewEnergy, Inc., a Delaware corporation (the “Servicer”),  the Financial Institutions party thereto, the Conduits party thereto, the Purchaser Agents party  thereto and MUFG Bank, Ltd., as agent for such Purchasers.  Capitalized terms used and not  otherwise defined herein are used with the meanings attributed thereto in the Agreement.  THE UNDERSIGNED HEREBY CERTIFIES THAT:  1. I am the duly elected ________ of [Insert name of applicable entity] (the  “Applicable Party”).  2. I have reviewed the terms of the Agreement and I have made, or have caused to be  made under my supervision, a detailed review of the transactions and conditions of the Applicable  Party and its Subsidiaries during the accounting period covered by the attached financial  statements.  3. The examinations described in paragraph 2 above did not disclose, and I have no  knowledge of, the existence of any condition or event which constitutes an Amortization Event or  Potential Amortization Event during or at the end of the accounting period covered by the attached  financial statements or as of the date of this Certificate, except as set forth in paragraph 5 below.  4. Schedule I attached hereto sets forth financial data and computations evidencing  the compliance with certain covenants of the Agreement, all of which data and computations are  true, complete and correct.  5. Described below are the exceptions, if any, to paragraph 3 above by listing, in  detail, the nature of the condition or event, the period during which it has existed and the action  which the Applicable Party has taken, is taking, or proposes to take with respect to each such  condition or event.  6.  As of the date hereof, the jurisdiction of organization of Seller is Delaware, the  jurisdiction of organization of the Servicer is Delaware, each of Seller and the Servicer is a  “registered organization” (within the meaning of Section 9-102 of the UCC in effect in Delaware)  and neither Seller nor the Servicer has changed its jurisdiction of organization during the prior five  years.  The foregoing certifications, together with the computations set forth in Schedule I hereto  and the financial statements delivered with this Certificate in support hereof, are made and  delivered this ___ day of ________, ____.  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. V-2      NewEnergy Receivables LLC      By: _______________________________________  Name:  Title:  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. V-3      SCHEDULE I TO COMPLIANCE CERTIFICATE  A. Schedule of Compliance as of __________, ____, with Section ____ of the  Agreement.  Unless otherwise defined herein, the terms used in this Compliance  Certificate have the meanings ascribed thereto in the Agreement.  This schedule relates to the Fiscal Month ended:  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VI-1      EXHIBIT VI  ADDRESSES FOR NOTICES  If to CNE:    Constellation NewEnergy, Inc.  c/o Constellation Energy Generation, LLC  1310 Point Street, 12th Floor  Baltimore, Maryland 21231    With a copy that does not constitute notice to:    Constellation Energy Generation, LLC  1310 Point Street, 12th Floor  Baltimore, Maryland 21231    If to Seller:    NewEnergy Receivables LLC  c/o Constellation Energy Generation, LLC  1310 Point Street, 12th Floor  Baltimore, Maryland 21231    With a copy that does not constitute notice to:    Constellation Energy Generation, LLC  1310 Point Street, 12th Floor  Baltimore, Maryland 21231    If to MUFG:    MUFG Bank, Ltd.  1221 Avenue of the Americas  New York, NY 10020  If to Victory:  Victory Receivables Corporation  1221 Avenue of the Americas  New York, NY 10020    With a copy to MUFG (as Agent)  If to PNC:  PNC Bank, National Association  The Tower at PNC Plaza  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VI-2      300 Fifth Avenue, 11th Floor  Pittsburgh, PA 15222    If to Mizuho:  Mizuho Bank, Ltd.  1271 Avenue of the Americas  New York, NY 10020    

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-1      EXHIBIT VII  FORM OF ASSIGNMENT AGREEMENT  THIS ASSIGNMENT AGREEMENT (this “Assignment Agreement”) is entered into as  of the ___ day of ________, ____, by and between ____________________ (“Assignor”) and  ____________________ (“Assignee”).  PRELIMINARY STATEMENTS  A. This Assignment Agreement is being executed and delivered in accordance with  Section 12.1(b) of that certain Receivables Purchase Agreement, dated as of April 8, 2020, by and  among NewEnergy Receivables LLC, a Delaware limited liability company, Constellation  NewEnergy, Inc., a Delaware corporation, as Servicer, the Financial Institutions party thereto, the  Conduits party thereto, the Purchaser Agents party thereto and MUFG BANK, LTD., as Agent (as  amended, modified or restated from time to time, the “Purchase Agreement”).  Capitalized terms  used and not otherwise defined herein are used with the meanings set forth or incorporated by  reference in the Purchase Agreement.  B. Assignor is a Financial Institution party to the Purchase Agreement, and Assignee  wishes to become a Financial Institution thereunder; and  C. Assignor is selling and assigning to Assignee  __________% (the “Transferred  Percentage”) of all of Assignor’s rights and obligations under the Purchase Agreement and the  Transaction Documents, including, without limitation, the Transferred Percentage of Assignor’s  Commitment and (if applicable) the Transferred Percentage of the Capital of Assignor as set forth  herein.  AGREEMENT  The parties hereto hereby agree as follows:  1. The sale, transfer and assignment effected by this Assignment Agreement shall  become effective (the “Effective Date”) two (2) Business Days (or such other date selected by the  Agent in its sole and absolute discretion) following the date on which a notice substantially in the  form of Schedule II to this Assignment Agreement (the “Effective Notice”) is delivered by the  Agent to the Conduit in the Assignor’s and Assignee’s Purchaser Group, Assignor and Assignee.   From and after the Effective Date, Assignee shall be a Financial Institution party to the Purchase  Agreement for all purposes thereof as if Assignee were an original party thereto and Assignee  agrees to be bound by all of the terms and provisions contained therein.  2. If Assignor has no outstanding Capital under the Purchase Agreement, on the  Effective Date, Assignor shall be deemed to have hereby transferred and assigned to Assignee,  without recourse, representation or warranty (except as provided in paragraph 6 below), and the  Assignee shall be deemed to have hereby irrevocably taken, received and assumed from Assignor,  the Transferred Percentage of Assignor’s Commitment and all rights and obligations associated  therewith under the terms of the Purchase Agreement, including, without limitation, the  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-2      Transferred Percentage of Assignor’s future funding obligations under Article I of the Purchase  Agreement.  3. If Assignor has any outstanding Capital under the Purchase Agreement, at or before  12:00 noon, local time of Assignor, on the Effective Date Assignee shall pay to Assignor, in  immediately available funds, an amount equal to the sum of (i) the Transferred Percentage of the  outstanding Capital of Assignor (such amount, being hereinafter referred to as the “Assignee’s  Capital”); (ii) all accrued but unpaid (whether or not then due) Financial Institution Yield  attributable to the Transferred Percentage of Assignor’s Capital; and (iii) accruing but unpaid fees  and other costs and expenses payable in respect of Transferred Percentage of Assignor’s Capital  for the period commencing upon each date such unpaid amounts commence accruing, to and  including the Effective Date (the “Assignee’s Acquisition Cost”); whereupon, Assignor shall be  deemed to have sold, transferred and assigned to Assignee, without recourse, representation or  warranty (except as provided in paragraph 6 below), and Assignee shall be deemed to have hereby  irrevocably taken, received and assumed from Assignor, the Transferred Percentage of Assignor’s  (i) Commitment and (ii) Capital (if applicable) and all related rights and obligations under the  Purchase Agreement and the Transaction Documents, including, without limitation, the  Transferred Percentage of Assignor’s future funding obligations under Article I of the Purchase  Agreement.  4. Concurrently with the execution and delivery hereof, Assignor will provide to  Assignee copies of all documents requested by Assignee which were delivered to Assignor  pursuant to the Purchase Agreement.  5. Each of the parties to this Assignment Agreement agrees that at any time and from  time to time upon the written request of any other party, it will execute and deliver such further  documents and do such further acts and things as such other party may reasonably request in order  to effect the purposes of this Assignment Agreement.  6. By executing and delivering this Assignment Agreement, Assignor and Assignee  confirm to and agree with each other, the Agent and the other Financial Institutions in the  Assignor’s and Assignee’s Purchaser Group as follows: (a) other than the representation and  warranty that it has not created any Adverse Claim upon any interest being transferred hereunder,  Assignor makes no representation or warranty and assumes no responsibility with respect to any  statements, warranties or representations made by any other Person in or in connection with the  Purchase Agreement or the Transaction Documents or the execution, legality, validity,  enforceability, genuineness, sufficiency or value of Assignee, the Purchase Agreement or any other  instrument or document furnished pursuant thereto or the perfection, priority, condition, value or  sufficiency of any collateral; (b) Assignor makes no representation or warranty and assumes no  responsibility with respect to the financial condition of any Seller Party, any Obligor, any Affiliate  of any Seller Party or the performance or observance by any Seller Party, any Obligor, any Affiliate  of any Seller Party of any of their respective obligations under the Transaction Documents or any  other instrument or document furnished pursuant thereto or in connection therewith; (c) Assignee  confirms that it has received a copy of the Purchase Agreement and copies of such other  Transaction Documents, and other documents and information as it has requested and deemed  appropriate to make its own credit analysis and decision to enter into this Assignment Agreement;  (d) Assignee will, independently and without reliance upon the Agent, any Conduit, the Seller or  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-3      any other Financial Institution or Purchaser and based on such documents and information as it  shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking  action under the Purchase Agreement and the Transaction Documents; (e) Assignee appoints and  authorizes the Agent to take such action as agent on its behalf and to exercise such powers under  the Transaction Documents as are delegated to the Agent by the terms thereof, together with such  powers as are reasonably incidental thereto; (f) Assignee appoints and authorizes  _______________ to take such action on its behalf and to exercise such powers under the  Transaction Documents as are delegated to the Purchaser Agent for the Assignee’s Purchaser  Group by the terms thereof, together with such powers as are reasonably incidental thereto;  and  (g) Assignee agrees that it will perform in accordance with their terms all of the obligations which,  by the terms of the Purchase Agreement and the other Transaction Documents, are required to be  performed by it as a Financial Institution (including, without limitation, as a Related Financial  Institution) or, when applicable, as a Purchaser.  7. Each party hereto represents and warrants to and agrees with the Agent that it is  aware of and will comply with the provisions of the Purchase Agreement, including, without  limitation, Article I and Sections 4.1 and 14.6 thereof.  8. Schedule I hereto sets forth the revised Commitment of Assignor, the Conduit for  which Assignee shall act as a Related Financial Institution and the Commitment of Assignee, as  well as administrative information with respect to Assignee.  9. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  10.  Assignee hereby covenants and agrees that, prior to the date which is one year and one  day after the payment in full of all senior Indebtedness of any Conduit or any Financial Institution  or Funding Source that is a special purpose bankruptcy remote entity, it will not institute against,  or join any other Person in instituting against, any Conduit or any such entity any bankruptcy,  reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding  under the laws of the United States or any state of the United States.  IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to  be executed by their respective duly authorized officers of the date hereof.  [Signature Pages Follow]     

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-4        [ASSIGNOR]      By: _______________________________________  Name:  Title:      [ASSIGNEE]      By: _______________________________________  Name:  Title:  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-5      SCHEDULE I TO ASSIGNMENT AGREEMENT  LIST OF LENDING OFFICES, ADDRESSES  FOR NOTICES AND COMMITMENT AMOUNTS  Date:_________________, ____  Transferred Percentage: ______%   A-1 A-2 B-1 B-2  Assignor Commitment  (prior to giving  effect to the  Assignment  Agreement)  Commitment  (after giving  effect to the  Assignment  Agreement)  Outstanding  Capital  (if any)  Ratable Share  of Outstanding  Capital            A-2 B-1 B-2  Assignee  Commitment  (after giving  effect to the  Assignment  Agreement)  Outstanding  Capital  (if any)  Ratable Share  of Outstanding  Capital        Assignee is a Related Financial Institution for: ________________  Address for Notices  Attention:  Phone:  Fax:  

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-6      SCHEDULE II TO ASSIGNMENT AGREEMENT  EFFECTIVE NOTICE  TO:______________________, Assignor                       TO:______________________, Assignee                       The undersigned, as Agent under the Receivables Purchase Agreement, dated as of April 8, 2020,  by and among NewEnergy Receivables LLC, a Delaware limited liability company, Constellation  NewEnergy, Inc., a Delaware corporation, as Servicer, the Financial Institutions party thereto, the  Conduits party thereto, the Purchaser Agents party thereto and MUFG Bank, Ltd., as Agent (as  amended, the “Receivables Purchase Agreement”), hereby acknowledges receipt of executed  counterparts of a completed Assignment Agreement dated as of ____________, ____ between  ________, as Assignor, and _________________, as Assignee (the “Assignment Agreement”).   Terms defined in such Assignment Agreement are used herein as therein defined.  1. Pursuant to such Assignment Agreement, you are advised that the Effective Date  will be __________, ____.  2. The Conduit in the Assignor’s Purchaser Group hereby consents to the Assignment  Agreement as required by Section 12.1(b) of the Receivables Purchase Agreement.  [3. Pursuant to such Assignment Agreement, the Assignee is required to pay  $__________ to Assignor at or before 12:00 noon (local time of Assignor) on the Effective Date  in immediately available funds.]  Very truly yours,    MUFG BANK, LTD., as Agent      By: _______________________________________  Name:  Title:      

 

RECEIVABLES PURCHASE AGREEMENT    Exh. VII-7      [APPLICABLE CONDUIT]      By: _______________________________________  Name:  Title:  

 

    Sch. A-1    SCHEDULE A  COMMITMENTS, PAYMENT ADDRESSES,   PURCHASER AGENTS, RELATED FINANCIAL INSTITUTIONS AND CO- ARRANGERS    Commitments and Payment Addresses of Financial Institutions  Financial Institution Commitment Address  MUFG Bank, Ltd. $440,000,000 1221 Avenue of the Americas, 6th Floor  New York, New York 10020    PNC Bank, National  Association  $330,000,000 PNC Bank, National Association  The Tower at PNC Plaza  300 Fifth Avenue, 11th Floor  Pittsburgh, PA 15222     Mizuho Bank, Ltd. $330,000,000 Mizuho Bank, Ltd.  1271 Avenue of the Americas  New York, NY 10020         

 

RECEIVABLES PURCHASE AGREEMENT    Sch. A-2      Purchaser Agents  Purchaser Group Purchaser Agent Address  MUFG Bank, Ltd. MUFG Bank, Ltd. 1221 Avenue of the Americas, 6th Floor  New York, New York 10020    PNC Bank, National  Association  PNC Bank, National  Association  PNC Bank, National Association  The Tower at PNC Plaza  300 Fifth Avenue, 11th Floor  Pittsburgh, PA 15222    Mizuho Bank, Ltd. Mizuho Bank, Ltd. Mizuho Bank, Ltd.  1271 Avenue of the Americas  New York, NY 10020    Conduits  Purchaser Group Conduit Address  MUFG Bank, Ltd. Victory Receivables  Corporation  1221 Avenue of the Americas, 6th Floor  New York, New York 10020    PNC Bank, National  Association  N/A N/A  Mizuho Bank, Ltd. N/A N/A            Co-Arrangers  Purchaser Group Co-Arranger Address  PNC Bank, National  Association  PNC Bank, National  Association  PNC Bank, National Association  The Tower at PNC Plaza  300 Fifth Avenue, 11th Floor  Pittsburgh, PA 15222    

 

RECEIVABLES PURCHASE AGREEMENT      Amendment No. 2 to RPA    Mizuho Bank, Ltd. Mizuho Bank, Ltd. Mizuho Bank, Ltd.  1271 Avenue of the Americas  New York, NY 10020

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