Document:

cbl-ex102_48.htm

Exhibit 10.2

FORBEARANCE AGREEMENT

 

This Forbearance Agreement (this “Agreement”) is made and entered into as of June 30, 2020 by and among CBL & ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership (“Borrower”), CBL & ASSOCIATES PROPERTIES, INC., a Delaware corporation (“Parent”), each of the Guarantors (as defined below) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, collectively with its successors and assigns, “Administrative Agent”), for its benefit and the benefit of Lenders (defined below).    

RECITALS

A.Pursuant to that certain Credit Agreement, dated as of January 30, 2019 (as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time, the “Credit Agreement”), by and among Borrower, Administrative Agent and the financial institutions party thereto and their assignees under Section 13.6 thereof (collectively, “Lenders”), Lenders made available to Borrower certain credit facilities in the initial aggregate amount of up to $1,185,000,000, which facilities include a $500,000,000 term loan facility and a $685,000,000 revolving credit facility (collectively, the “Facility”).  Each capitalized term used and not otherwise defined herein shall have the meaning given to such term in the Credit Agreement.

B.The Facility is guaranteed on a limited basis by Parent and also guaranteed by certain other Guarantors, and secured by certain Collateral as more specifically set forth in the Loan Documents and provided by certain Pledgors, Subsidiary Grantors and Limited Grantors (Borrower, Parent, Subsidiary Guarantors, Pledgors, Limited Grantors and Subsidiary Grantors are hereinafter collectively referred to as, “Obligors”).

C.Borrower, Parent and certain of the other Obligors are also parties to certain senior notes (collectively, the “Senior Notes” and the holders thereof, collectively, the “Senior Noteholders”) issued pursuant to that certain Indenture, dated as of November 26, 2013 (the “Original Indenture”), CBL & Associates Limited Partnership, as issuer, CBL & Associates Properties, Inc., as limited guarantor, the subsidiaries thereto as guarantors, and U.S. Bank National Association, as trustee (“Trustee”), as supplemented by a First Supplemental Indenture, dated as of November 26, 2013, a Second Supplemental Indenture, dated as of December 13, 2016 and a Third Supplemental Indenture, dated as of January 30, 2019 (the Original Indenture, as heretofore and hereafter amended, restated, modified, supplemented or replaced from time to time, the “Indenture”).

D.As of June 30, 2020 (and prior to application of the required amortization payment due on such date) there exists $456,250,000.00 in principal outstanding under the term loan facility, $675,925,436.17 in principal outstanding under the revolving credit facility, and $1,311,581.80 in issued and outstanding Letters of Credit.  

E.Certain Specified Defaults (as defined below) exist under the Credit Agreement and as a result of such Specified Defaults Administrative Agent and Lenders may exercise their rights and remedies with respect to the Obligations in accordance with the Loan Documents.

 

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F.Obligors have requested that Administrative Agent and Lenders forbear from exercising their remedies with regard to the Obligations that arise solely due to the existence of the Specified Defaults until the Forbearance Termination Date (as defined below).  Subject to the conditions set forth herein, in order to provide Borrower additional time to negotiate a holistic debt restructure or otherwise make arrangement to repay the Obligations in full to Lenders, Lenders agree to forbear from exercising their remedies until the Forbearance Termination Date.  

AGREEMENT

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

1.ACKNOWLEDGEMENT; REPRESENTATIONS AND WARRANTIES.  

(a)Specified Defaults.  

(i)Pursuant to those certain Reservation of Rights letters sent by Administrative Agent to Borrower on each of May 26, 2020, June 2, 2020, and June 16, 2020, Administrative Agent and Lenders have stated that Borrower is in default under the Loan Documents due to certain Events of Default identified therein (collectively, the “Original Specified Defaults”).  Borrower has reserved and continues to reserve its right to dispute the Original Specified Defaults.  In addition, as a result of Borrower’s failure to make the interest payment due on June 1, 2020 (the “June 1st Interest Payment”) with respect to the Senior Notes issued pursuant to the Indenture (as required pursuant to the Indenture) and the failure to make the interest payment due on June 15, 2020 with respect to the Senior Notes, and as a default in the payment of interest on any series of Senior Notes after the same has become due and payable, constitutes a Default under the Indenture, a Default and, with respect to the June 1st Interest Payment, an Event of Default now exist pursuant to Section 11.1(d)(iv) of the Credit Agreement (the “Cross Defaults” and together with the Original Specified Defaults, collectively, the “Specified Defaults”).  

(ii)Each of the Obligors acknowledge (A) receipt of notice of each of the Specified Defaults and that the Cross Defaults exist and are continuing and constitute a Default and, with respect to the June 1st Interest Payment, an Event of Default, (B) that while the Borrower disputes whether the Specified Defaults exist, none of the Specified Defaults have been waived or excused by Administrative Agent or Lenders at any time or in any manner, and (C) that there are no claims, demands, offsets or defenses at law or in equity that would defeat or diminish Administrative Agent’s or Lenders’ present and unconditional right to collect the indebtedness evidenced by the Loan Documents, and to proceed to enforce the rights and remedies available to Administrative Agent and Lenders as provided in the Loan Documents.

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(b)Acknowledgements.  Obligors acknowledge and agree that the Recitals herein are true and correct, that the indebtedness evidenced by the Loan Documents is due and owing to Lenders without offset, defense or counterclaim and that Loan Agreement, the Guaranties and the other Loan Documents, are valid, binding and fully enforceable according to their terms.  Obligors further acknowledge that (i) all necessary action to authorize the execution and delivery of this Agreement has been taken (ii) this Agreement constitutes the legal, valid and binding obligation of each Obligor enforceable against such Obligor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law), and (iii) on account of the Cross Defaults and in accordance with Section 2.11 of the Credit Agreement, all existing Loans will automatically, on the last day of the current Interest Period therefor, Convert into Base Rate Loans.  This Agreement is a forbearance relating to an existing obligation and is not a novation.  

(c)Representations and Warranties.  Each Obligor hereby represents and warrants that (i) neither the execution, delivery or performance by such Obligor of this Agreement, nor compliance by it with the terms and provisions hereof, (A) will contravene any provision of applicable law; (B) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of such Obligor or any Subsidiaries of such Obligor pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which such Obligor or any Subsidiaries of such Obligor is a party or by which it or any its property or assets is bound or to which it may be subject; or (C) will violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or equivalent constitutional, organizational and/or formation documents), as applicable, of such Obligor, and (ii) no Default or Event of Default has occurred or will exists as of date of this Agreement and after giving effect hereto other than the Cross Defaults (although, as noted in subsection (a)(ii) above, Obligors acknowledge that Administrative Agent and Lenders have stated that the Specified Defaults exist).  

2.EXECUTION OF THIS AGREEMENT.   Administrative Agent’s and Lenders’ agreement to forbear is expressly conditioned upon receipt of a fully-executed original of this Agreement on or before June 30, 2020 and satisfaction of all conditions precedent contained in Section 5 below.  Unless and until Obligors execute and return this Agreement to Administrative Agent by such date, Administrative Agent executes this Agreement and all conditions precedent have been satisfied to Administrative Agent’s satisfaction or have been waived in writing by Administrative Agent in its sole discretion, Administrative Agent and Lenders shall have no obligation to forbear and Administrative Agent and Lenders shall continue to be entitled to immediately exercise all rights and remedies available to them.

3.FORBEARANCE.  Administrative Agent, on behalf of itself and Lenders, agree, commencing as of the date hereof and ending on the Forbearance Termination Date (defined below) (such period, the “Forbearance Period”), to forbear from exercising Administrative Agent’s 

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and Lenders’ remedies under the Loan Documents solely relating to the Specified Defaults to the and continuing until the earliest of the following (such earliest date, the “Forbearance Termination Date”):

(a)11:59 p.m. (Eastern Daylight Time) on July 15, 2020; or

(b)the date of occurrence of any Forbearance Default (as defined in Section 7 below); or

(c)the making by Parent, Borrower or any of their respective direct or indirect Subsidiaries of all or any portion of the interest payments due with respect to the Senior Notes due on June 1, 2020 and June 15, 2020 or the making of any other payment (including, without limitation, by way of repurchase, exchange, discharge, defeasance or otherwise) by Parent, Borrower or any of their respective direct or indirect Subsidiaries with respect to the Senior Notes; or 

(d)the granting of any Lien on any property or assets of Parent, Borrower or any of their respective direct or indirect Subsidiaries to secure all or any portion of the Senior Notes;

(e)the failure of any representation or warranty made by any Obligor under this Agreement to be true and complete in all material respects (except that such materiality qualifier shall not be applicable to the extent that any representation and warranty already is qualified or modified by materiality in the text thereof) as of the date when made or any other breach in any material respect of any such representation or warranty;

(f)the entry by Borrower into any support agreement or definitive documentation with respect to, or announcement by Borrower of its intent to pursue, any other restructuring, recapitalization, refinancing, repurchase or other material transaction in respect of any material indebtedness of Borrower or its subsidiaries, whether through a court-supervised insolvency proceeding or otherwise, without the express written consent of each Lender approving this Agreement;

(g)the expiration or termination of the Noteholder Forbearance Agreement (defined below) other than as a result of either a permanent waiver of any default under the Indenture or the cure of the Cross Defaults and as a result of which the Senior Notes cannot be accelerated in accordance with the terms of the Indenture.

If any of the event described in clauses (a) through (g) above occurs, the Forbearance Period shall expire automatically, immediately, and without notice or demand to any Obligor, and Administrative Agent and Lenders shall be entitled to immediately exercise all of their rights and remedies available to it under the Loan Documents or otherwise at law with respect to the Specified Defaults or any other Event of Default that then exists under the Credit Agreement, the other Loan Documents or this Agreement, provided that the Obligors shall reserve their rights to contest any of the Original Specified Defaults.  Nothing in this Agreement shall constitute a waiver of any Default or Event of Default under the Loan Documents including, without limitation, the Specified Defaults, or of Administrative Agent’s or Lenders’ rights or remedies under any other indebtedness now or hereafter existing between Administrative Agent or any Lender and Obligors; provided, 

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however, to the extent that an Event of Default under the Indenture arising solely from the nonpayment of the June 1st Interest Payment due in respect of the 2023 Notes is waived by the Senior Noteholders holding the 2023 Notes in accordance with the Indenture on or before the Forbearance Termination Date or the payment of the June 1st Interest Payment and as a result of which the Senior Notes cannot be accelerated in accordance with the terms of the Indenture, then any Cross Default arising solely from the nonpayment of the June 1st Interest Payment due in respect of the 2023 Notes shall also be waived under the Credit Agreement.  On the Forbearance Termination Date, Administrative Agent and Lenders may, without further notice, exercise any and all rights and remedies available to them.  

This Agreement is being executed by ADMINISTRATIVE AGENT, on behalf of lenders, to accommodate the request of obligors, and obligors understand and agree that administrative agent and lenders have no obligation to grant further forbearances in the future.  

4.CONTINUED PERFORMANCE; APPLICABLE RATE OF INTEREST.  Obligors shall continue to comply with all other terms of the Credit Agreement and other Loan Documents not specifically addressed herein and all terms and conditions of this Agreement.  Notwithstanding the Specified Defaults, Obligors and Administrative Agent, for and on behalf of Lenders, acknowledge and agree that for so long as the Forbearance Period is in effect each Loan made by Lenders in accordance with the terms of the Credit Agreement shall continue to bear interest at the applicable rates set forth therein.

5.CONDITIONS PRECEDENT AND COVENANTS.  

(a)Conditions Precedent.  Administrative Agent’s and Lenders’ agreement hereunder is contingent upon Obligors’ compliance with the following conditions precedent.  Unless otherwise specified below, each condition precedent must be satisfied no later than June 30, 2020 in order for the Agreement to become effective.

(i)no Default or Event of Default (other than the Specified Defaults) or Forbearance Default shall have occurred and be continuing as of the date of this Agreement and immediately after giving effect hereto;

(ii)on or prior to the date of this Agreement, Borrower shall deliver to Administrative Agent a fully executed copy of the engagement letter with Lenders’ financial advisor, Ducera Partners LLC (“Ducera”), and the fee reimbursement letter with Administrative Agent’s counsel, Jones Day, in each case in the form previously provided to Borrower or its counsel, and Borrower shall have, on or prior to July 1, 2020 (a) delivered to Jones Day the required retainer under such agreement, (b) paid to Jones Day all legal fees incurred-to-date and for which an invoice has been provided prior to the execution of this Agreement, and (c) paid to Ducera the monthly fee set forth in the Ducera engagement letter for June and July, 2020;  

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(iii)on or prior to the date of this Agreement, Borrower shall deliver to Administrative Agent a fully executed copy of forbearance agreement by and among Obligors and a majority of Senior Noteholders holding the 2023 Notes, which forbearance agreement (a) shall have a scheduled expiration date not earlier than 11:59 p.m. (Eastern Daylight Time) on July 15, 2020, (b) shall not include or be contingent upon the delivery of any collateral or payments on, or otherwise in respect of, the Senior Notes, including, without limitation, any forbearance or other fee arising under such agreement, and (c) shall otherwise be in form and substance acceptable to Requisite Lenders (the “Noteholder Forbearance Agreement”); 

(iv)Borrower shall have reimbursed Administrative Agent for any other fees and expenses for which reimbursement is requested in accordance with the provisions of the Loan Documents prior to the execution of this Agreement.

(b)Covenants.  Each obligation specified below must be complied with by Obligors at all times or, if applicable, by the date and at the frequency specified.  In the event Obligors fail to comply with any of the obligations specified below such failure shall immediately constitute a Forbearance Default without the requirement of giving notice of any kind by Administrative Agent or any Lender.

(i)During the term of this Agreement, Borrower agrees to continue making all scheduled payments of interest, principal and other amounts due under the Credit Agreement and other Loan Documents for application in accordance with the terms of the Credit Agreement and other Loan Documents, as applicable;

(ii)Obligors agree to deliver and update, (i) on a monthly basis commencing on July 1, 2020, cash flow statements and cash flow projections, (ii) on or prior to July 10, 2020, updated cash flow projections broken down into weekly periods, and (iii) a timely and prompt manner such other financial information as Ducera, Administrative Agent, or Lenders (through Administrative Agent) may reasonably request from time to time;

(iii)Obligors agree to host and lead weekly update calls among Obligors’ senior management team, Obligors’ advisors, Administrative Agent and Administrative Agent’s advisors (which update calls may, at Administrative Agent’s option, include all or a portion of the Lenders), and to timely respond to inquiries from individual Lenders, provided that such inquiries are routed through Administrative Agent;

(iv)During the term of this Agreement, Obligors and all direct and indirect Subsidiaries of Parent shall not:

(A)incur any additional Indebtedness, other than (1) unsecured trade payables incurred by Obligors or any direct or indirect Subsidiary of Parent in the ordinary course of operating each party’s respective properties and otherwise permitted by the Credit Agreement, (2) ordinary course draws under existing construction loans, (3) refinancings of maturing 

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property-level mortgages on substantially similar terms, with no increase in principal amount or granting of additional collateral, and (4) ordinary course non-material unsecured Indebtedness which is not for borrowed money and incurred in connection with the day-to-day operations of Obligors’ business (e.g., treasury management exposure);

(B)acquire any additional material assets;

(C)make additional Investments, other than further Investments in existing joint ventures or Subsidiaries, to the extent such Investments are required under the terms of the joint venture documents or necessary to pay ordinary course debt service on property level Indebtedness of a Subsidiary, provided, however, that the aggregate amount of Investments funded under this subsection (C) shall not exceed $7,500,000;

(D)make any Dispositions, other than (1) ordinary course Dispositions of non-real estate assets which are not material to the use or operation of any of Obligors properties, and (2) the sale of real estate assets currently under a binding purchase and sale contract executed prior to June 30, 2020 and disclosed to Administrative Agent prior to the date hereof; or

(E)make any Restricted Payment, including, without limitation, any dividends to common or preferred shareholders or payments on or repurchases of the Senior Notes;

(v)During the term of this Agreement, Obligors and all direct and indirect Subsidiaries of Parent shall not (nor shall any of the foregoing direct or permit any Affiliate or equity owner of such Person to), prepay any existing Indebtedness of the Obligors or any direct or indirect Subsidiary of Parent, create, grant or permit any Liens on any of the Collateral or any currently unencumbered assets owned by Obligors or any direct or indirect Subsidiary of Parent, or provide additional value to any other lender or creditor of the Obligors or any direct or indirect Subsidiary of Parent (collateral, cash, or otherwise);

(vi)On or prior to July 10, 2020, Obligors shall deliver a written counter-proposal responsive to the draft term sheet delivered by Administrative Agent to Obligors on June 5, 2020; 

(vii)During the term of this Agreement, Borrower shall notify Administrative Agent immediately following the occurrence of any Forbearance Default; and

(viii)In the event that Borrower enters into, executes or amends any forbearance agreement (including the Noteholder Forbearance Agreement) or other consent agreement with any Senior Noteholder with respect to Cross Defaults that includes the payment of forbearance fees or other consideration by Borrower to any such Senior Noteholder, (such agreement, the “Third-Party Agreement” and such 

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payment terms thereunder, the “Favorable Terms”), then (a) Borrower shall give Administrative Agent a written notice (the “MFN Notice”) and a copy of the Third-Party Agreement and (b) unless otherwise agreed in writing (including by email) by each Lender approving this Agreement within one business day following the receipt of the MFN Notice, this Agreement shall be deemed automatically modified to incorporate any such Favorable Terms together with any additional obligations, consents, waivers or similar agreements of such Senior Noteholder contained in such Third-Party Agreement. 

6.GUARANTY.  By countersigning this Agreement, Guarantors hereby reaffirm the Guaranties and acknowledge and agree that the Guaranties remains in full force and effect following the execution of this Agreement and performance hereunder.  Guarantors acknowledge that Guarantors’ obligations under the Guaranties are separate and distinct from Borrower’s obligations under the Credit Agreement and other Loan Documents and reaffirms Obligors’ waivers, as set forth in the Guaranties of each and every one of the possible defenses to such obligations

7.FORBEARANCE DEFAULT.  The following shall constitute events of default under this Agreement (each, an “Forbearance Default”), the occurrence of which shall result in the immediate termination of the Forbearance Period without notice of any kind and shall entitle Administrative Agent and Lenders to immediately exercise all of their rights and remedies available to it under the Credit Agreement and other Loan Documents or otherwise at law:

(a)any Default or Event of Default other than the Specified Defaults shall occur under the Credit Agreement; or

(b)any breach or violation of any covenant or agreement of Obligors set forth herein; or

(c)any of the following events shall occur with respect to the Senior Notes (any such event, a “Notes Enforcement Action”): (i) the declaration of any series of the then-outstanding Senior Notes under the Indenture to be due and payable in accordance with the Indenture, (ii) the enforcement against Borrower, Parent or any guarantor of any of the indebtedness issued pursuant to the Indenture; (iii) the exercise of any other remedies available to Trustee or any Senior Noteholder under the Indenture or the guarantees thereof; or (iv) the commencement or filing by Trustee or any Senior Noteholder of any involuntary proceeding under the Bankruptcy Code (or any similar proceeding relating to creditors relief) with respect to Borrower, Parent or any of the guarantors under the Indenture.

8.SEVERABILITY OF PROVISIONS.  If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be impaired thereby.

9.FEES AND EXPENSES.  Upon execution of this Agreement, Borrower shall pay the reasonable fees and expenses of Jones Day as legal counsel for Administrative Agent, incurred in connection with the preparation of this Agreement and documents related thereto, the administration, amendment, modification or enforcement of this Agreement and the collateral 

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documents and the collection or attempted collection of the indebtedness evidenced by the Loan Documents. 

10.GENERAL RELEASE.  

(a)Release of Claims; No Defenses.

(i)As of the date of this Agreement but without limiting the limited reservation of rights in Section 25(a) below, Obligors, to the fullest extent permitted by law, each hereby releases, and forever discharges Administrative Agent, each Lender and each of its or their respective trustees, officers, directors, participants, beneficiaries, agents, attorneys, affiliates and employees, and the successors and assigns of the foregoing (collectively, the “Released Parties”), from any and all claims, actions, causes of action, suits, defenses, set-offs against the Obligations, and liabilities of any kind or character whatsoever, known or unknown, contingent or matured, suspected or unsuspected, anticipated or unanticipated, liquidated or unliquidated, claimed or unclaimed, in contract or in tort, at law or in equity, or otherwise, including, without limitation, claims or defenses relating to allegations of fraud, duress, bad faith and usury, which relate, in whole or in part, directly or indirectly, to: (A) the Facility; (B) the Loan Documents; (C) the Obligations; (D) the Collateral; or (E) this Agreement, including, without limitation, the negotiation, execution, performance or enforcement of the Loan Documents and this Agreement, any claims, causes of action or defenses based on the negligence of any of the Released Parties or on any “lender liability” theories of, among others, bad faith, unfair dealing, duress, coercion, control, misrepresentation, omissions, misconduct, overreaching, unconscionability, disparate bargaining position, reliance, equitable subordination, fraud, or otherwise, and any claim based upon fraud, duress, illegality or usury (collectively, the “Released Claims”), in each case other than in connection with the gross negligence or willful misconduct of any Released Party.  No Obligor shall intentionally, willfully or knowingly commence, join in, prosecute, or participate in any suit or other proceeding in a position which is adverse to any of the Released Parties, arising directly or indirectly from any of the Released Claims.  The Released Claims include, but are not limited to, any and all unknown, unanticipated, unsuspected or misunderstood claims and defenses, all of which are released by the provisions hereof in favor of the Released Parties.

(ii)Obligors each acknowledges and agrees that it has no defenses, counterclaims, offsets, cross-complaints, causes of action, rights, claims or demands of any kind or nature whatsoever, including, without limitation, any usury or lender liability claims or defenses, arising out of the Facility or the Loan Documents or this Agreement, that can be asserted either to reduce or eliminate all or any part of any of Obligor’s liability to Administrative Agent and Lenders under the Loan Documents, or to seek affirmative relief or damages of any kind or nature from Administrative Agent or Lenders, for or in connection with the Facility or any of the Loan Documents.  Each of Obligors further acknowledges that, to the extent that any such claim does in fact exist, it is being fully, finally and irrevocably released by them as provided in this Agreement.

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(iii)Each of Obligors hereby waives the provisions of any applicable laws restricting the release of claims which the releasing parties do not know or suspect to exist at the time of release, which, if known, would have materially affected the decision to agree to these releases.  Accordingly, each of Obligors hereby agrees, represents and warrants to Administrative Agent and each Lender that it understands and acknowledges that factual matters now unknown may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and each of Obligors further agrees, represents and warrants that the releases provided herein have been negotiated and agreed upon, and in light of, that realization and that Obligors nevertheless hereby intend to release, discharge and acquit the parties set forth hereinabove from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are in any manner set forth in or related to the Released Claims and all dealings in connection therewith.

(iv)In making the releases set forth in this Agreement, each of Obligors acknowledges that it has not relied upon any representation of any kind made by any Released Party.

(v)It is understood and agreed by Released Parties that the acceptance of delivery of the releases set forth in this Agreement shall not be deemed or construed as an admission of liability by any of the Released Parties and Administrative Agent, on behalf of itself and the other Released Parties, hereby expressly denies liability of any nature whatsoever arising from or related to the subject of such releases.

(b)INDEMNIFICATION. EACH OBLIGOR HEREBY AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE RELEASED PARTIES, TO THE EXTENT SET FORTH IN THE CREDIT AGREEMENT, FOR, FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, LIABILITIES, CLAIMS, ACTIONS, JUDGMENTS, COURT COSTS AND LEGAL OR OTHER EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES AND EXPENSES) WHICH THE RELEASED PARTIES MAY INCUR AS A DIRECT OR INDIRECT CONSEQUENCE OF: (A) THE FAILURE OF OBLIGORS TO PERFORM ANY OBLIGATIONS AS AND WHEN REQUIRED BY THIS AGREEMENT; OR (B) ANY FAILURE AT ANY TIME OF ANY OF OBLIGORS’ REPRESENTATIONS OR WARRANTIES SET FORTH HEREIN TO BE TRUE AND CORRECT.  OBLIGORS’ DUTY AND OBLIGATIONS TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE RELEASED PARTIES SHALL SURVIVE THE FORBEARANCE TERMINATION DATE.

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11.OTHER BANKING RELATIONSHIPS.  This Agreement only pertains to the Loan Documents.  The parties acknowledge that they may, now or in the future, have other lending, borrowing or banking relationships, none of which are affected by this Agreement.

12.APPLICABLE LAW.  The substantive laws of the State of New York shall govern the construction of this Agreement and the rights and remedies of the parties hereto.

13.LITIGATION; FORUM SELECTION; GOVERNING LAW.  Section 13.5  and Section 13.13 of the Credit Agreement are hereby incorporated into this Agreement by this reference as if set forth in full herein.

14.ENTIRE AGREEMENT; NO VERBAL AGREEMENTS.  

(a)This Agreement and the documents referred to herein or delivered in connection herewith constitute the entire agreement and understanding between the parties concerning the subject matter hereof, and supersede and replace all prior negotiations, proposed agreements and agreements written or verbal concerning the subject matter hereof.  Each of the parties to this Agreement acknowledges that no other party to this Agreement, nor any agent or attorney of any such party, has made any promise, representation or warranty whatsoever, express or implied, not contained in this Agreement, to induce it to execute this Agreement.  Each of the parties further acknowledges that it is not executing this Agreement in reliance on any promise, representation or warranty not contained in this Agreement.

(b)Except for the matters specifically set forth herein, this Agreement does not alter, amend, modify or release any right of Administrative Agent or Lenders, or any obligations of Obligors in connection with the Loan Documents.  By execution of this Agreement, Administrative Agent and Lenders are not waiving any principal, interest, costs or attorney’s fees or any other amounts payable under the Loan Documents.

(c)THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT VERBAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN VERBAL AGREEMENTS BETWEEN THE PARTIES.

(d)This Agreement may not be modified verbally but only by a written agreement executed by each of the parties and designated as an amendment or modification of this Agreement.

(e)This Agreement shall be deemed to be a Loan Document for all purposes under the Credit Agreement.

15.GENDER.  Whenever, in this Agreement, the context may so require, the masculine or neuter gender shall be deemed to refer to and include the feminine, masculine, and neuter, and the singular to refer to and include the plural.

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16.SUCCESSORS AND ASSIGNS.  This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective permitted successors, assigns, heirs, devisees, executors, administrators, affiliates, representatives, assigns, officers, agents, and employees wherever the context requires or admits.

17.COUNTERPARTS.  This Agreement may be executed in any number of counterparts, each of which shall be an original and enforceable against any party who signed it, but all of which together shall constitute one and the same document.  The words “execution,” signed,” “signature,” and words of like import in this Agreement shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.  Each party hereto hereby waives any defenses to the enforcement of the terms of this Agreement based on the form of its signature, and hereby agrees that such electronically transmitted or signed signatures shall be conclusive proof, admissible in judicial proceedings, of such party’s execution of this Agreement. Even though the parties agree that electronic signatures are legally enforceable and intended to be effective for all purposes, the signing parties agree if requested by Administrative Agent in its sole discretion to promptly deliver to Administrative Agent the requested original document bearing an original manual signature, to the extent required or advisable to be delivered in connection with any program made available to Administrative Agent or any of its affiliates by the Federal Reserve, U.S. Treasury Department or any other federal or state regulatory body.

18.CONFIDENTIALITY.  Section 13.9 of the Credit Agreement is hereby incorporated into this Agreement by this reference as if set forth in full herein.

19.TIME IS OF THE ESSENCE.  Time is of the essence with respect to each and every provision set forth in this Agreement.

20.ADVICE OF COUNSEL.  Obligors acknowledge that they have reviewed this Agreement in its entirety, having consulted such legal, tax or other advisors as they deem appropriate and understand and agree to each of the provisions of this Agreement and further acknowledge that they have entered into this Agreement voluntarily.

21.ASSIGNMENT.Each Lender expressly retains and reserves its rights to sell and assign its interests under (and in accordance with) the Credit Agreement, other Loan Documents and this Agreement and to fully disclose its files in connection therewith to potential purchasers of such Lender’s interests, to the extent permitted under the Loan Documents.  No Obligor shall be permitted to assign its rights or obligations under this Agreement without the prior written consent of Administrative Agent and Requisite Lenders, which consent Administrative Agent and Requisite Lenders may withhold in their sole and absolute discretion.

Page 12

Loan No. 12503DAN8

 

22.RULES OF CONSTRUCTION.The parties hereto agree that any rule of construction to the effect that ambiguities are resolved against the drafting party shall not apply to the interpretation of this Agreement.

23.PARAGRAPH HEADINGS.The headings and titles of the several paragraphs of this Agreement are inserted solely for convenience of reference and are not a part of and are not intended to govern, limit or aid in the construction of any term or provision of this Agreement.

24.AUTHORITY.Each individual executing this Agreement on behalf of a partnership, corporation, limited liability company or other entity represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of such entity, and that this Agreement is binding on such entity.

25.RESERVATION OF RIGHTS.  Notwithstanding anything to the contrary herein, (a) the Obligors reserve their rights to dispute or make a claim with respect to the existence of any or all of the Original Specified Defaults, including without limitation, the occurrence thereof and any actions taken by the Administrative Agent or any Lender in respect thereof after the date hereof or any retroactive imposition of the base rate, and (b) the Administrative Agent and the Lenders reserve all of their rights with respect to all of the Original Specified Defaults, including without limitation, (i) the occurrence thereof and any actions taken by the Parent, Borrower or any of their respective direct or indirect Subsidiaries, or any actions or representations made by any of their respective employees, officers or directors in connection therewith, (ii) the right to retroactively charge interest at the Base Rate from and after the occurrence of the first Specified Default, and (iii) all claims and remedies under the Loan Documents and applicable law (provided the Administrative Agent and Lenders shall forbear from exercising such remedies during the Forbearance Period as set forth herein).

 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

Page 13

Loan No. 12503DAN8

 

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the day and year first above written.

 

 

“BORROWER”

 

CBL & Associates Limited Partnership,

a Delaware limited partnership

 

By: CBL Holdings I, Inc., 

Its sole general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

 

“PARENT”

 

CBL & Associates Properties, Inc., 

a Delaware corporation

 

By:/s/ Farzana Khaleel

Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

 

 

 

 

 

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

 

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

“ADMINISTRATIVE AGENT”

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

a national banking association,

as Administrative Agent

 

By:/s/ Ryan Sansavera

Name:Ryan Sansavera

Title:Senior Vice President

 

 

 

 

 

 

 

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

“SUBSIDIARY GUARANTORS”

 

CBL/Imperial Valley GP, LLC

CBL/Kirkwood Mall, LLC

CBL/Madison I, LLC

CBL/Richland G.P., LLC

CBL/Sunrise GP, LLC

Cherryvale Mall, LLC

Hixson Mall, LLC

Imperial Valley Mall GP, LLC

JG Winston-Salem, LLC

Kirkwood Mall Acquisition LLC

Kirkwood Mall Mezz LLC

Layton Hills Mall CMBS, LLC

Madison/East Towne, LLC

Madison/West Towne, LLC

Madison Joint Venture, LLC

Mayfaire GP, LLC

MDN/Laredo GP, LLC

Mortgage Holdings, LLC

Multi-GP Holdings, LLC

Pearland Ground, LLC

Pearland Town Center GP, LLC

 

	
By:
	
CBL & Associates Limited Partnership, as the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

Frontier Mall Associates Limited Partnership

Turtle Creek Limited Partnership

 

	
By:
	
CBL & Associates Limited Partnership, as the general partner of each of the above listed limited partnerships

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

 

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

POM-College Station, LLC

 

	
By:
	
CBL & Associates Limited Partnership, its managing member

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

Title:Executive Vice President and Chief Financial Officer

 

CBL RM-Waco, LLC

 

	
By:  
	
CBL/Richland G.P., LLC, its managing member

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the managing member of the above listed limited liability company

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

Arbor Place Limited Partnership

 

	
By:
	
Multi-Holdings GP, LLC, its general partner

 

Imperial Valley Mall II, L.P.

 

	
By:  
	
Imperial Valley Mall GP, LLC, its general partner

 

Imperial Valley Mall, L.P.

 

	
By:  
	
CBL/Imperial Valley GP, LLC, its general partner

 

Mayfaire Town Center, LP

 

	
By:
	
Mayfaire GP, LLC, its general partner

 

Pearland Town Center Limited Partnership

 

	
By:
	
Pearland Town Center GP, LLC, its general partner

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the general partner of each of the above listed limited partnerships

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner 

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

CBL SM-Brownsville, LLC

 

	
 
	
By:  
	
CBL/Sunrise GP, LLC, its chief manager

 

Mall Del Norte, LLC

 

	
 
	
By:  
	
MDN/Laredo GP, LLC, its chief manager

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the chief manager of the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

CBL/Westmoreland I, LLC

CBL/Westmoreland II, LLC

 

	
 
	
By:  
	
CW Joint Venture, LLC, as the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as the manager of the chief manager of each of the above listed limited liability companies

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	

	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

CBL/Westmoreland, L.P.

	
By:
	
CBL/Westmoreland I, LLC, its general partner

 

	
 
	
By:
	
CW Joint Venture, LLC, its chief manager

 

	
 
	
By:
	
CBL & Associates Limited Partnership, as manager of the chief manager of the general partner of the above listed limited partnership

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	
    
	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

 

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

CW Joint Venture, LLC

 

	
By:
	
CBL & Associates Limited Partnership, its manager

 

	
 
	
By:
	
CBL Holdings I, Inc., its general partner

 

	
 
	

	
By:/s/ Farzana Khaleel

	
 
	
    
	
Name:Farzana Khaleel

	
 
	

	
Title:Executive Vice President and Chief Financial Officer

 

 

 

 

[Remainder of Page Intentionally Left Blank; Signature Pages Continue on Following Page]

 

Signature Page – CBL Forbearance Agreement

Loan No. 12503DAN8

 

 

“PLEDGORS”

 

CBL & Associates Limited Partnership

 

By: CBL Holdings I, Inc., its general partner

 

	
 
	
By:
	
/s/ Farzana Khaleel

	
 
	
Name:
	
Farzana Khaleel

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

Madison Joint Venture, LLC

Mortgage Holdings, LLC

 

	
By: 
	
CBL & Associates Limited Partnership, as chief manager of each of Madison Joint Venture, LLC and Mortgage Holdings, LLC

 

By:CBL Holdings I, Inc., its general partner

 

	
 
	
By:
	
/s/ Farzana Khaleel

	
 
	
Name:
	
Farzana Khaleel

	
 
	
Title:
	
Executive Vice President and Chief Financial Officer

 

 

 

 

[End of Signature Pages]Exhibit

                                                
Exhibit 10.1 

AMENDED AND RESTATED KELLOGG COMPANY 2002 EMPLOYEE STOCK PURCHASE PLAN
(Effective July 1, 2020)

		
	1.
	Purpose. Kellogg Company (the “Company”) has established this Amended and Restated 2002 Employee Stock Purchase Plan (the “Plan”) to encourage and enable its eligible employees and the eligible employees of its Subsidiaries to acquire the Company’s Common Stock, and to align more closely the interests of those individuals and the Company’s shareowners. The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The Plan was originally adopted by the Board on December 6, 2001, to be effective July 1, 2002, and was approved by the Company’s shareowners on April 26, 2002 (the “2002 Plan”). The plan was amended and restated effective January 1, 2008. The following provisions constitute an amendment and restatement of the Plan effective as of July 1, 2020, subject to approval by the Company’s shareowners at the Company’s 2020 annual meeting of shareowners.

		
	2.
	Definitions. Unless the context clearly indicates otherwise, for purposes of the Plan, the following terms shall have the following meanings:

		
	(a) 
	“Board” means the Board of Directors of Kellogg Company, as constituted from time to time.

		
	(b) 
	“Beneficiary” means (i) the person designated by the Participant to receive benefits under a Company-sponsored and Company-paid life insurance program, if any, or (ii) the Participant’s estate.

		
	(c) 
	“Code” means the Internal Revenue Code of 1986, in effect and as amended from time to time, or any successor statute thereto, together with any rules, regulations and interpretations promulgated thereunder or with respect thereto.

		
	(d) 
	“Committee” means the Compensation and Talent Management Committee of the Board.

		
	(e) 
	“Common Stock” means the Common Stock, par value $0.25 per share, of the Company or any security of the Company issued by the Company in substitution or exchange therefor.

		
	(f) 
	“Company” means Kellogg Company, a Delaware corporation, or any successor corporation to Kellogg Company.

		
	(g) 
	“Compensation” means with respect to a Participant, the portion of the Participant’s base salary, commissions or wages paid to the Participant during the applicable payroll period.

		
	(h) 
	“Custodian” means the individual or organization appointed by the Plan Administrator to maintain custody of Participants’ payroll deductions, purchase Common Stock under the Plan, and allocate Common Stock among Participants.

		
	(i) 
	“Designated Subsidiary” means any Subsidiary that the Board has designated from time to time, in its sole discretion, as eligible to participate in the Plan.

		
	(j) 
	“Disability” means disability as determined by the Committee in accordance with standards and procedures similar to those under the long-term disability plan of the Company or Designated Subsidiary, if any. At any time that the Company or Designated Subsidiary does not maintain a long-term disability plan, “Disability” shall mean any physical or mental disability that is determined to be total and permanent by a physician selected in good faith by the Company or Designated Subsidiary.

		
	(k) 
	“Effective Date” means July 1, 2020.

		
	(l) 
	“Eligible Employee” means each Employee of the Company or a Designated Subsidiary. 

		
	(m) 
	“Employee” means each and every person employed by the Company or a Designated Subsidiary, and whom the Company or Designated Subsidiary classifies as a common law employee; provided that, only individuals who are paid as common law employees from the payroll of the Company or a Designated Subsidiary shall be deemed to be Employees for purposes of the Plan.

For purposes of this definition of Employee, and notwithstanding any other provisions of the Plan to the contrary, individuals who are not classified by the Company or by a Designated Subsidiary, in its discretion, as employees under Code Section 3121(d), including, but not limited to, individuals classified 

 1

by the Company or a Designated Subsidiary as independent contractors and non-employee consultants) and individuals who are classified by the Company or by a Designated Subsidiary, in its discretion, as employees of any entity other than the Company or a Designated Subsidiary, do not meet the definition of Employee and are ineligible for benefits under the Plan. In the event the classification of an individual who is excluded from the definition of Employee under the preceding sentence is determined to be erroneous or is retroactively revised, the individual shall nonetheless continue to be excluded from the definition of Employee and shall be ineligible for benefits for all periods prior to the date the Company or Designated Subsidiary determines its classification of the individual is erroneous or should be revised, in each case to the extent that, during such periods: (i) such excluded individual had been employed by the Company or a Designated Subsidiary for less than two years; (ii) the customary employment of such excluded individual was 20 hours or less per week; (iii) the customary employment of such excluded individual was for not more than five months in any calendar year; or (iv) such excluded individual was a highly compensated employee within the meaning of Code Section 414(q).
		
	(n) 
	“Exchange Act” means the Securities Exchange Act of 1934, in effect and as amended from time to time, or any successor statute thereto, together with any rules, regulations and interpretations promulgated thereunder or with respect thereto.

		
	(o) 
	“Fair Market Value” means, with respect to any date, the closing price per share on the New York Stock Exchange on such date, provided that if there shall be no sales of shares reported on such date, the Fair Market Value of a share on such date shall be deemed to be equal to the closing price per share on the New York Stock Exchange for the last preceding date on which sales of shares were reported.

		
	(p) 
	“Offering Date” means the first day of a Purchase Period, January 1, April 1, July 1 and October 1.

		
	(q) 
	“Option” means an option to purchase shares of Common Stock under the Plan, pursuant to the terms and conditions thereof.

		
	(r) 
	“Participant” means an Eligible Employee who is participating in the Plan pursuant to Section 4.

		
	(s) 
	“Plan” means the Kellogg Company 2020 Employee Stock Purchase Plan, as set forth herein, as in effect, and as amended from time to time (together with any rules and regulations promulgated by the Committee with respect thereto).

		
	(t) 
	“Plan Account” means an account maintained by the Plan Administrator for each Participant to which the Participant’s payroll deductions are credited, against which funds used to purchase shares of Common Stock are charged, and to which shares of Common Stock purchased are credited.

		
	(u) 
	“Plan Administrator” means the Committee or such other person or persons as the Committee may appoint to administer the Plan.

		
	(v) 
	“Purchase Date” means, except as provided in Sections 13 and 18, the last day of a Purchase Period, each March 31, June 30, September 30 and December 31.

		
	(w) 
	“Purchase Period” means each calendar quarter.

		
	(x) 
	“Purchase Price” means, with respect to each Purchase Period, an amount between 85% and 95% of the Fair Market Value of Common Stock on the Purchase Date, with such amount determined by the Committee in its sole discretion before the beginning of the Purchase Period.

(y) “Retirement” means the retirement by the Participant from active employment with the Company and its Designated Subsidiaries on or after the attainment of early or normal retirement age under the pension or retirement plan sponsored by the Company or Designated Subsidiary in which he or she participates, or any other age with the consent of the Company or Designated Subsidiary.
		
	(z) 
	“Subsidiary” means any corporation, domestic or foreign, other than the Company, in an unbroken chain of corporations beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

 2

Notwithstanding the foregoing, the term “Subsidiary” shall include a limited liability company that is disregarded as an entity separate from a Subsidiary.
		
	3.
	Stock Subject to the Plan. Subject to Section 14, the aggregate number of shares of Common Stock that may be sold under the Plan is 4,000,000 (which amount is inclusive of 1,500,000 additional shares to be made available as of July 1, 2020, and all shares previously authorized under the 2002 Plan). Shares of Common Stock to be issued under the Plan may be authorized and unissued shares, issued shares that have been reacquired by the Company (in the open-market or in private transactions) and that are being held as treasury shares, or a combination thereof. 

		
	4.
	Participation in the Plan. Each Eligible Employee may participate in the Plan effective as of any Offering Date, by completing and delivering a payroll deduction authorization to the Plan Administrator at least 10 days in advance of the applicable Offering Date in the manner specified by the Plan Administrator. The Offering Date as of which an Eligible Employee commences or recommences participation in the Plan, and each Offering Date as of which an Eligible Employee renews his or her authorization under paragraph (a), is an Offering Date with respect to that Eligible Employee. 

		
	(a)
	Participant’s payroll deductions under the Plan shall commence on his or her initial Offering Date, and shall continue, subject to paragraph (a), until the Eligible Employee terminates participation in the Plan, is no longer an Eligible Employee, or the Plan is terminated.

		
	(b)
	A Participant’s payroll deduction authorization shall be automatically renewed effective on the Offering Date following the conclusion of his or her initial Purchase Period and each subsequent Purchase Period, unless the Participant otherwise notifies the Plan Administrator in the manner specified by the Plan Administrator at least 10 days in advance of such date.

		
	(c)
	Notwithstanding the foregoing, an Eligible Employee shall not be eligible to purchase shares of Common Stock under the Plan if, on the Purchase Date, the Eligible Employee owns, or could own if the Eligible Employee exercised his or her purchase right under the Plan on such Purchase Date, stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary. For purposes of this paragraph (b), the rules of Code Section 424(d) shall apply in determining the stock ownership of an individual, and stock that an Eligible Employee may purchase under outstanding options shall be treated as stock owned by the Eligible Employee.

		
	(d)
	Notwithstanding the foregoing, an Eligible Employee shall not be permitted to elect participation in the Plan for the next two full Purchase Periods immediately following his or her sale, transfer (including transfer to a different brokerage account or withdrawal from the Participant’s Plan Account), or other disposition of Common Stock that was acquired within one year of the Purchase Date applicable to that Common Stock.

		
	5.
	Payroll Deductions. An Eligible Employee may participate in the Plan only through payroll deductions. After-tax payroll deductions shall be made from the Compensation paid to each Participant for each Purchase Period in such whole percentage from 1% to 10%, as the Participant shall authorize in his or her election form. No Eligible Employee may be granted the right to purchase more than $25,000 of Fair Market Value (determined as of the Purchase Date) of Common Stock under the Plan, and any other stock purchase plan of the Company or any Subsidiary that is qualified under Code Section 423, in any calendar year.

		
	6.
	Changes in Payroll Deductions. A Participant may not increase or decrease the amount of his or her payroll deductions during a Purchase Period. A Participant may change his or her payroll deductions effective as of a subsequent Purchase Period by notifying the Plan Administrator in the manner specified by the Plan Administrator at least 10 days in advance of the next Offering Date.

		
	7.
	Termination of Participation in Plan.

		
	(a)
	A Participant may, for any reason and at any time prior to each Purchase Date, voluntarily terminate participation in the Plan by notifying the Plan Administrator in a reasonable time and manner prior to the Purchase Date. Such Participant’s payroll deductions under the Plan shall cease as soon as practicable following delivery of such notice. If the former Participant remains employed by the Company or any Designated Subsidiary after termination of his or her participation in the Plan, any payroll deductions 

 3

credited to such Participant’s Plan Account may be used to purchase shares of Common Stock on the next Purchase Date or refunded, without interest, to the Participant, at the election of the Participant. Participants must notify the Plan Administrator of any request for a refund at least 20 days prior to the Purchase Date. An Eligible Employee whose participation in the Plan is terminated may rejoin the Plan no earlier than the beginning of the Purchase Period next following his or her withdrawal, by delivering a new payroll deduction authorization in accordance with Section 4.
		
	(b)
	A Participant’s participation in the Plan shall terminate upon termination of his or her employment with the Company and its Designated Subsidiaries, or termination of status as an Eligible Employee, for any reason. If a former Participant is no longer employed by the Company or any Designated Subsidiary for any reason, including Disability or Retirement, any payroll deductions credited to his or her Plan Account may be used to purchase shares of Common Stock on the next Purchase Date, or refunded (subject to the 20 day advance notice requirement described in Section 7(a)), without interest, to the Participant, at the election of the Participant (or, in the event of the Participant’s death or Disability, the Participant’s Beneficiary), as soon as practicable following his or her termination of employment. 

		
	8.
	Purchase of Shares.

		
	(a) 
	On each Purchase Date, each Participant shall be deemed to have been granted an Option. In no event will a Participant be deemed to have been granted more than one Option during any Purchase Period.

		
	(b) 
	On the Purchase Date of a Purchase Period, each Participant shall be deemed, without any further action, to have purchased that number of whole and fractional shares of Common Stock determined by dividing the balance in the Participant’s Plan Account on the Purchase Date by the Purchase Price (fractional shares will be calculated to the third decimal place); provided, however, that, in addition to the $25,000 limitation set forth in Section 5 above, in no event may any Participant purchase more than 1,000 shares of Common Stock during a Purchase Period (subject to adjustment in accordance with Section 14 below). Except as provided in Sections 13 and 18, in no event may a Participant purchase shares of Common Stock prior to the Purchase Date of a Purchase Period. 

		
	(c) 
	As soon as practicable after each Purchase Date, a statement shall be delivered to each Participant that shall include the number of shares of Common Stock purchased on the Purchase Date on behalf of such Participant under the Plan.

		
	(d) 
	As of the Purchase Date of each Purchase Period, the Common Stock purchased by each Participant shall be considered to be issued and outstanding to his or her credit as a bookkeeping entry maintained by the Custodian in the Participant’s Plan Account. Subject to the restrictions of Section 4(c) above, a stock certificate for shares of Common Stock credited to a Participant’s Plan Account shall be issued upon request of the Participant at any time. Stock certificates under the Plan shall be issued, at the election of the Participant, in the Participant’s name or in his or her name and the name of another person as joint tenants with right of survivorship or as tenants in common. A cash payment shall be made for any fraction of a share in such Plan Account, if necessary to close the Plan Account.

		
	9.
	Rights as a Shareowner. A Participant shall not be treated as the owner of Common Stock until the Purchase Date of such stock under the Plan. As of the Purchase Date a Participant shall be treated as the record owner of his or her shares purchased on such date pursuant to the Plan. Unless the Participant elects otherwise in the time and manner specified by the Plan Administrator, any dividends paid in respect of Common Stock purchased by a Participant under the Plan and credited to his or her Plan Account will be reinvested in Common Stock in accordance with procedures established by the Company.

		
	10.
	Rights Not Transferable. Rights under the Plan are not transferable by a Participant other than by will or the laws of descent and distribution, and are exercisable during the Participant’s lifetime only by the Participant or by the Participant’s guardian or legal representative. No rights or payroll deductions of a Participant shall be subject to execution, attachment, levy, garnishment or similar process.

		
	11.
	Application of Funds. All funds of Participants received or held by the Company under the Plan before purchase of the shares of Common Stock shall be held by the Company without liability for interest or other increment.

 4

		
	12.
	Administration of the Plan. The Plan shall be administered by the Plan Administrator. The Plan Administrator shall have authority to make rules and regulations for the administration of the Plan, and its interpretations and decisions with regard to the Plan and such rules and regulations shall be final and conclusive. It is intended that the Plan shall at all times meet the requirements of Code Section 423, if applicable, and the Plan Administrator shall, to the extent possible, interpret the provision of the Plan so as to carry out such intent.

		
	13.
	Change of Control Provisions.

(a) Notwithstanding any other provision of the Plan to the contrary, in the event of a Change in Control, each Option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or subsidiary of such successor corporation. If the successor corporation refuses or is unable to assume or substitute for outstanding Options, each Purchase Period then in progress shall be shortened and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Purchase Period then in progress will terminate.
The New Purchase Date shall be on or immediately before the effective time of the Change in Control, the Plan
Administrator shall notify each Participant in writing, at least 10 days before the New Purchase Date, that the Purchase Date for his or her Option has been changed to the New Purchase Date, and that the Participant’s Option will be exercised automatically on the New Purchase Date unless the Participant has withdrawn from the Purchase Period before the New Purchase Date, as provided in Section 7.

		
	(b)
	For purposes of the Plan, a “Change in Control” shall mean the happening of any of the following events:

(i) An acquisition after the Effective Date by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (a) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (b) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company or approved by the Incumbent Board (as defined below), (2) any increase in beneficial ownership of a Person as a result of any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, (4) any acquisition by an underwriter temporarily holding Company securities pursuant to an offering of such securities, or (5) any acquisition pursuant to a transaction that complies with clauses (1), (2) (3) of subsection (iii) of this Section 13; or

(ii) A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 13, that any individual who becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election by the Company’s shareowners, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso), either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such
nomination shall be considered as though such individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or

(iii) Consummation of a reorganization, merger or consolidation (or similar transaction), a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity (“Corporate Transaction”); in each case, unless immediately following such Corporate 

 5

Transaction (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (other than the Company, any employee benefit plan (or related trust) the Company or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 20% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors, except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board at the time of the Board’s approval of the execution of the initial agreement providing for such Corporate Transaction will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such Corporate Transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries); or 
(iv) The approval by the shareowners of the Company of a complete liquidation or dissolution of the Company. 
		
	14.
	Adjustments in Case of Changes Affecting Shares. In the event of any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, Change in Control or exchange of Common Stock or other securities of the Company, or other corporate transaction or event that affects the Common Stock: (a) the number of shares of Common Stock approved for the Plan shall be increased or decreased proportionately, and (b) the Board may determine, in its sole discretion, that an adjustment is necessary or appropriate in order to prevent dilution or enlargement of benefits or potential benefits intended to be made available under the Plan. 

		
	15.
	No Corporate Action Restriction. The existence of the Plan and/or the Options granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the Company’s shareowners to make or authorize (a) any adjustment, recapitalization, reorganization or other change in the Company’s or any Subsidiary’s capital structure or its business, (b) any merger, consolidation or change in the ownership of the Company or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Company’s or any Subsidiary’s capital stock or the rights thereof, (d) any dissolution or liquidation of the Company or any Subsidiary, (e) any sale or transfer of all or any part of the Company’s or any Subsidiary’s assets or business, or (f) any other corporate act or proceeding by the Company or any Subsidiary. No Participant, Employee, beneficiary or any other person shall have any claim against any member of the Board or the Committee, the Company or any Subsidiary, or any employees, officers, shareowners or agents of the Company or any    Subsidiary, as a result of any such action. 

		
	16.
	Notices. All notices or other communications by an Employee or Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

		
	17.
	Amendments to the Plan. The Committee may, at any time, or from time to time, amend or modify the Plan; provided, however, that no amendment shall be made increasing or decreasing the number of shares authorized for the Plan (other than as provided in Section 14), and that, except to conform the Plan to the requirements of the Code, no amendment shall be made that would cause the Plan to fail to meet the applicable requirements of Code Section 423. 

 6

		
	18.
	Termination of Plan. The Plan shall terminate upon the earliest of (a) the twelfth anniversary of the Effective Date, (b) the date no more shares of Common Stock remain to be purchased under the Plan, or (c) the termination of the Plan by the Board as specified below. The Board may terminate the Plan as of any date. The date of termination of the Plan shall be deemed a Purchase Date. If on such Purchase Date Participants in the aggregate have Options to purchase more shares of Common Stock than are available for purchase under the Plan, each Participant shall be eligible to purchase a reduced number of shares of Common Stock on a pro rata basis, and any excess payroll deductions shall be returned to Participants, without interest, all as provided by rules and regulations adopted by the Plan Administrator. 

		
	19.
	Costs. All costs and expenses incurred in administering the Plan shall be paid by the Company. Any costs or expenses of selling shares of Company Stock acquired pursuant to the Plan shall be borne by the holder thereof.

		
	20.
	Governmental Regulations. The Company’s obligation to sell and deliver its Common Stock pursuant to the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such stock. Shares shall not be issued with respect to an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, state securities laws, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

As a condition to the exercise of an Option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
		
	21.
	Governing Law. The Plan and all actions taken thereunder shall be governed by and construed in accordance with the laws of the United States of America and, to the extent not inconsistent therewith, by the laws of the State of Delaware, without reference to the principles of conflict of laws thereof.

This Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended, but is intended to comply with Code Section 423. Accordingly, the provisions of the Plan shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. Any provisions required to be set forth in this Plan by such Code section are hereby included as fully as if set forth in the Plan in full. Any titles and headings herein are for reference purposes only, and shall in no way limit, define or otherwise affect the meaning, construction or interpretation of any provisions of the Plan. 
		
	22.
	Effect on Employment. The provisions of this Plan shall not affect the right of the Company or any Designated Subsidiary or any Participant to terminate the Participant’s employment with the Company or any Designated Subsidiary.  

		
	23.
	Withholding. The Company reserves the right to withhold from stock or cash distributed to a Participant any amounts that it is required by law to withhold.

		
	24.
	Other Company Benefit and Compensation Programs. For purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Company or any Designated Subsidiary (a) any amounts deducted from a Participant’s Compensation pursuant to the Participant’s payroll deduction election under Section 4 shall be deemed a part of a Participant’s compensation, and (b) payments and other benefits received by a Participant under an Option shall not be deemed a part of a Participant’s compensation, unless expressly provided in such other plans or arrangements, or except where the Board expressly determines in writing. The existence of the Plan notwithstanding, the Company or any Designated Subsidiary may adopt such other compensation plans or programs and additional compensation arrangements as it deems necessary to attract, retain and motivate employees.

25. Effective Date. The Plan, as amended, shall be effective July 1, 2020.

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