Document:

First Amended and Restated Revolving Credit Agreement

 EXHIBIT 10.40 
 EXECUTION COPY 
 U.S. $400,000,000 
 FIRST AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT 
 Dated as of July 30, 2007 
 Among 
 AMBAC FINANCIAL GROUP, INC. and 
 AMBAC ASSURANCE CORPORATION, 

as Borrowers, 
 CERTAIN COMMERCIAL
LENDING INSTITUTIONS, 
 as Lenders, 
 CITIBANK, N.A., 
 as Administrative Agent, 
 THE BANK OF NEW YORK and 
 KEYBANK,
NATIONAL ASSOCIATION, 
 as Co-Syndication Agents, 
 HSBC BANK USA, N.A. and 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Co-Documentation Agents, 
 and

 CITIGROUP GLOBAL MARKETS INC., 
 as Sole Lead Arranger and Sole Book Runner 

 TABLE OF CONTENTS 
  

					
	 	    	 	  	Page
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	1
			
	 SECTION 1.01
	    	Certain Defined Terms	  	1
	 SECTION 1.02
	    	Computation of Time Periods	  	13
	 SECTION 1.03
	    	Accounting Terms	  	13
		
	 ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
	  	13
			
	 SECTION 2.01
	    	The Advances	  	13
	 SECTION 2.02
	    	Making the Advances	  	14
	 SECTION 2.03
	    	Fees	  	15
	 SECTION 2.04
	    	Termination or Reduction of the Commitments	  	15
	 SECTION 2.05
	    	Repayment	  	16
	 SECTION 2.06
	    	Interest	  	16
	 SECTION 2.07
	    	Interest Rate Determination	  	17
	 SECTION 2.08
	    	Optional Conversion of Advances	  	17
	 SECTION 2.09
	    	Prepayments	  	17
	 SECTION 2.10
	    	Increased Costs	  	18
	 SECTION 2.11
	    	Illegality	  	19
	 SECTION 2.12
	    	Payments and Computations	  	19
	 SECTION 2.13
	    	Taxes	  	20
	 SECTION 2.14
	    	Sharing of Payments, Etc	  	22
	 SECTION 2.15
	    	Use of Proceeds	  	22
	 SECTION 2.16
	    	Increase of Commitments	  	22
	 SECTION 2.17
	    	Extension of Commitment Termination Date	  	23
	 SECTION 2.18
	    	Right to Replace a Lender	  	24
		
	 ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING
	  	25
			
	 SECTION 3.01
	    	Conditions Precedent to Initial Borrowing	  	25
	 SECTION 3.02
	    	Conditions Precedent to Each Borrowing	  	26
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	26
			
	 SECTION 4.01
	    	Representations and Warranties of each Borrower	  	26
		
	 ARTICLE V COVENANTS OF THE BORROWERS
	  	28
			
	 SECTION 5.01
	    	Affirmative Covenants	  	28
	 SECTION 5.02
	    	Negative Covenants	  	30
	 SECTION 5.03
	    	Financial Covenants	  	31
		
	 ARTICLE VI EVENTS OF DEFAULT
	  	32
			
	 SECTION 6.01
	    	Events of Default	  	32
		
	 ARTICLE VII THE ADMINISTRATIVE AGENT, ETC.
	  	33
			
	 SECTION 7.01
	    	Authorization and Action	  	33

  

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	 SECTION 7.02
	    	The Administrative Agent’s Reliance, Etc.	  	34
	 SECTION 7.03
	    	Administrative Agent and Affiliates	  	34
	 SECTION 7.04
	    	Lender Credit Decision	  	34
	 SECTION 7.05
	    	Indemnification	  	35
	 SECTION 7.06
	    	Successor	  	35
		
	 ARTICLE VIII MISCELLANEOUS
	  	35
			
	 SECTION 8.01
	    	Amendments, Etc	  	35
	 SECTION 8.02
	    	Notices, Etc	  	36
	 SECTION 8.03
	    	No Waiver; Remedies	  	37
	 SECTION 8.04
	    	Costs and Expenses	  	37
	 SECTION 8.05
	    	Right of Set-off	  	38
	 SECTION 8.06
	    	Binding Effect	  	38
	 SECTION 8.07
	    	Assignments and Participations	  	38
	 SECTION 8.08
	    	Confidentiality	  	40
	 SECTION 8.09
	    	Governing Law	  	41
	 SECTION 8.10
	    	Execution in Counterparts	  	41
	 SECTION 8.11
	    	WAIVER OF JURY TRIAL	  	41
	 SECTION 8.12
	    	Judgment Currency	  	41
	 SECTION 8.13
	    	European Monetary Union	  	41
	 SECTION 8.14
	    	Jurisdiction, Etc.	  	42
	 SECTION 8.15
	    	Nature of Obligations	  	42
	 SECTION 8.16
	    	USA PATRIOT Act	  	42

  

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	 Schedules
	    		  	
			
	 Schedule I -
	    	 Commitments
	  	
	 Schedule II -
	    	 Administrative Agent’s Account(s)
	  	
	 Schedule III -
	    	 MCR Costs
	  	
	 Schedule 4.01(h) -
	    	 Contingent Liabilities
	  	
	 Schedule 5.02(a) -
	    	 Ongoing Debt
	  	
			
	 Exhibits
	    		  	
			
	 Exhibit A -
	    	Form of Note	  	
	 Exhibit B -
	    	Form of Notice of Borrowing	  	
	 Exhibit C -
	    	Form of Assignment and Acceptance	  	
	 Exhibit D -
	    	Form of Compliance Certificate	  	
	 Exhibit E -
	    	Form of Opinion of Anne Gill Kelly, Esq. Managing Director, Secretary and Assistant General Counsel of Ambac Financial	  	
	 Exhibit F -
	    	Form of Opinion of Kevin J. Doyle, Esq., Senior Vice President and General Counsel of Ambac Assurance	  	
	 Exhibit G -
	    	Form of Opinion of DeWitt, Ross & Stevens, S.C., Wisconsin Special Counsel to Ambac Assurance	  	
	 Exhibit H -
	    	Form of Opinion of Baker Botts L.L.P., Special New York Counsel to the Borrowers	  	
	 Exhibit I -
	    	Form of Opinion of Milbank, Tweed, Hadley & McCloy LLP, Special New York Counsel to the Administrative Agent	  	

  

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 FIRST AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT dated as of July 30, 2007 (this
“Agreement”) among AMBAC FINANCIAL GROUP, INC., a Delaware corporation (“Ambac Financial”), AMBAC ASSURANCE CORPORATION, a Wisconsin stock insurance corporation (“Ambac Assurance” and, together with
Ambac Financial, the “Borrowers”), the banks, financial institutions and other institutional lenders listed on the signature pages hereof (the “Initial Lenders”) and CITIBANK, N.A. (“Citibank”), as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 
 The Borrowers, certain banks and
Citibank, as administrative agent, are parties to a Revolving Credit Agreement dated as of July 28, 2005 (as amended by Amendment No. 1 thereto dated as of July 28, 2006, the “Existing Credit Agreement”). The parties
hereto desire to amend the Existing Credit Agreement in certain respects and to restate in its entirety the Existing Credit Agreement as so amended, and, accordingly, the parties hereto agree that the Existing Credit Agreement shall, effective on
the Effective Date (as defined below), be amended and restated to read in its entirety as follows: 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS 
 SECTION
1.01 Certain Defined Terms. 
 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): 
 “ABC Securities” means securities issued
by a Finance Trust representing an undivided beneficial interest in assets acquired by a Finance Trust from Ambac Assurance with the net proceeds of such issuance. 
 “Additional Commitment Agreement” has the meaning specified in Section 2.17(c). 
 “Additional Commitment Lender” has the meaning specified in Section 2.17(c). 
 “Administrative
Agent” has the meaning specified in the preamble. 
 “Administrative Agent’s Account” means, with respect to
any Currency, the account of the Administrative Agent for such Currency designated in Schedule II hereto or as otherwise designated by it as such account for such Currency by notice to the Lenders and the Borrowers; provided that any such
account shall at all times be located in either the United States or the United Kingdom. 
 “Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
 “Advance” has the meaning specified
in Section 2.01. 
 “Affected Person” has the meaning specified in Section 2.18. 
 “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. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of
a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Stock of such Person or to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Stock,
by contract or otherwise. 
 “Agreement” has the meaning specified in the preamble. 

 “Aleutian” means Aleutian Investments LLC, a Delaware limited liability company.

 “Alternate Currency” means, at any time, Euros or Sterling; provided that, at such time, such Currency is
available to be borrowed in the London interbank deposit market and is freely convertible into Dollars. 
 “Alternate Currency
Equivalent” means, with respect to any amount denominated in Dollars on any date, the amount of an Alternate Currency that would be required to purchase such amount of Dollars, as determined by the Administrative Agent, at the spot selling
rate at which Citibank offers to sell Dollars for such Alternate Currency, at approximately 11:00 A.M., London time, for delivery two Business Days thereafter, determinations thereof made in good faith by the Administrative Agent to be conclusive
and binding on the parties in the absence of manifest error. 
 “Ambac Assurance” has the meaning specified in the preamble.

 “Ambac Financial” has the meaning specified in the preamble. 
 “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate
Advance and such Lender’s Eurocurrency Lending Office in the case of a Eurocurrency Rate Advance. 
 “Applicable
Margin” means, as of any date, a percentage per annum determined by reference to the Financial Strength Rating in effect on such date as set forth below: 
  

									
	 	  	Financial
Strength Rating
Moody’s/S&P	  	Applicable Margin
for Base Rate
Advances	 	 	Applicable Margin for
Eurocurrency Rate
Advances	 
	 Level 1
	  	Aaa/AAA	  	0.000	%	 	0.125	%
	 Level 2
	  	Aa1/AA+	  	0.000	%	 	0.140	%
	 Level 3
	  	Aa2/AA	  	0.000	%	 	0.220	%
	 Level 4
	  	Lower than Level 3	  	0.000	%	 	0.250	%

 provided that upon the occurrence and during the continuance of any Event of Default, the Applicable Margin
determined as provided above shall be increased by 2% per annum. 
 “Asset Disposition” has the meaning specified in
Section 5.02(c). 
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an
Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit C hereto. 
 “Base Rate”
means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at all times be equal to the higher of: 
 (a) the rate of interest announced publicly by Citibank in New York City from time to time as Citibank’s base rate; and 
 (b) the Federal Funds Rate plus 0.5% per annum. 
  

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 “Base Rate Advance” means an Advance that bears interest as provided in
Section 2.06(a)(i). 
 “Borrowers” has the meaning specified in the preamble. 
 “Borrowing” means a borrowing consisting of Advances of the same Type made to a Borrower on the same day by the Lenders. 
 “Business Day” means any day (a) on which commercial banks are not authorized or required by law to close in New York City, and
(b) if such day relates to (i) any Eurocurrency Rate Advance denominated in Dollars, a day that is also a London Banking Day, (ii) if such day relates to any Advance denominated in Sterling, a day also on which foreign exchange
trading is carried out in the London interbank market and on which banks are open in London and (iii) if such day relates to any EURIBOR Advance a day on which foreign exchange trading is carried out in the London interbank market and that is
also a Target Operating Day and, if applicable, a day on which foreign exchange trading is carried out in the Brussels interbank market. 
 “Change of Control” means any of the following events: 
 (a) Ambac Financial shall (i) cease
to own, beneficially and of record, directly or indirectly, at least 51% of the shares of capital stock of Ambac Assurance (other than directors’ qualifying shares) or (ii) cease to have the ability to elect a majority of the board of
directors of Ambac Assurance; or 
 (b) any “person” or “group” (as such terms are used for purposes of
Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable, except that for purposes of this paragraph (b) such person or group shall be deemed to have “beneficial ownership” of all shares that such person or group has
the right to acquire, whether such right is exercisable immediately or only after the passage of time), other than any “person” or “group” that is a wholly-owned Subsidiary of either Borrower, is or becomes the “beneficial
owner” (as such term is used in Rule 13d-3 promulgated pursuant to the Exchange Act), directly or indirectly, of more than 30% of the aggregate voting power of all Voting Stock of Ambac Financial. 
 “Citibank” has the meaning specified in the preamble. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Commitment” has the meaning specified in Section 2.01. 
 “Commitment Date” has the meaning
specified in Section 2.16. 
 “Commitment Termination Date” means the earlier of (a) July 30, 2012, as the
same may be extended on and subject to the terms and conditions of this Agreement, and (b) the date of termination in whole of the Commitments pursuant to Section 2.04 or 6.01; provided that if such day is not a Business Day, the
Commitment Termination Date shall be the immediately preceding Business Day. 
 “Compliance Certificate” means a certificate
duly completed and executed by a Responsible Officer of Ambac Financial, substantially in the form of Exhibit D hereto. 
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
 “Contingent-Capital
Securities” means notes or securities so long as: 
 (a) at the time of any relevant determination under this
Agreement such notes or securities are classified as “soft capital” or “contingent capital” in accordance with then-applicable methodology by Moody’s and S&P; 
  

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 (b) such notes or securities are issued by either Borrower or any Subsidiary thereof, or
by a special purpose vehicle, under one or more facilities that permit such issuer or any Subsidiary thereof or, if such issuer is a special purpose vehicle, either Borrower or any Subsidiary thereof to draw funds at the discretion of such Person or
upon the occurrence or existence of any event or condition specified therein; and 
 (c) the proceeds of which are
(i) deposited into a segregated account in the name of such issuer, (ii) accessible from such account in accordance with the terms of a put option, capital contribution or other similar agreement or facility between the issuer thereof and
either Borrower or any Subsidiary thereof, as applicable, and (iii) withdrawn from such account solely to (A) acquire or purchase investments that are credited to such account, (B) contribute capital to Ambac Assurance or (C) to
repay such notes or securities and pay interest thereon and other amounts payable with respect thereto. 
 “Contingent
Liability” means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment,
to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of
dividends or other distributions upon the shares of any other Person. The amount of any Person’s obligation under any Contingent Liability at any time shall (subject to any limitation set forth therein) be deemed to be the outstanding amount at
such time (or, except in the case of the Indebtedness or obligation guaranteed thereby being unutilized credit lines for Derivative Transactions, if larger, the maximum amount) of the Indebtedness or obligation guaranteed thereby. 
 “Controlled Group” means all members of a controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with either Borrower, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA. 
 “Convert”, “Conversion” and “Converted” each refers to a conversion of Base Rate Advances into
Eurocurrency Rate Advances denominated in Dollars, or of Eurocurrency Rate Advances denominated in Dollars into Base Rate Advances, pursuant to Section 2.07 or 2.08. 
 “Credit-Linked Notes” means notes or other securities issued by either Borrower or any Subsidiary thereof (a) containing provisions providing that the payment of principal thereof, or interest
thereon, may be altered if certain events occur relating to a Person other than the issuer thereof, (b) that are not treated as short term debt or long term debt for GAAP purposes and (c) that are accorded risk transfer credit by
Moody’s and S&P at the time of issuance thereof. 
 “Currency” means Dollars or any Alternate Currency. 

“Current Commitment Termination Date” has the meaning specified in Section 2.17(a). 
 “Debt” of any Person means, without duplication, all Indebtedness of such Person of any type described in clause (a), (b) or
(c) of the definition of “Indebtedness” and all Contingent Liabilities of such Person in respect of any Indebtedness of any other Person of any such type. 
 “Declining Lender” has the meaning specified in Section 2.17(b). 
  

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 “Default” means any Event of Default or any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both. 
 “Derivative Transactions” means, with
respect to any Person, interest rate swap agreements, interest rate cap agreements, interest rate collar agreements, interest rate options, interest rate futures, foreign currency swap agreements, foreign currency cap agreements, foreign currency
collar agreements, foreign currency options, foreign currency futures and all other similar agreements or arrangements and all liabilities of such Person thereunder. 
 “Dollar Equivalent” means, with respect to any amount denominated in an Alternate Currency on any date, the amount of Dollars that would be required to purchase such amount of such Alternate Currency,
as determined by the Administrative Agent, at the spot selling rate at which Citibank offers to sell such Alternate Currency for Dollars, at approximately 11:00 A.M., London time, for delivery two Business Days thereafter, determinations
thereof made in good faith by the Administrative Agent to be conclusive and binding on the parties in the absence of manifest error. 
 “Dollars” and “$” mean the lawful money of the United States of America. 
 “Domestic
Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic Lending Office” in its Administrative Questionnaire, or such other office of such Lender as such Lender may from time to time
specify to the Borrowers and the Administrative Agent. 
 “Effective Date” means the first date on which the Administrative
Agent notifies each Borrower and the Initial Lenders that all of the conditions set forth in Section 3.01 have been satisfied. 
 “Eligible Assignee” means (a) the Federal Reserve Bank of the United States and (b) an Eligible Transferee; provided, however, that neither Borrower nor an Affiliate of the Borrowers shall qualify as
an Eligible Assignee. 
 “Eligible Transferee” means a commercial bank or other financial institution having the Required
Lender Rating. 
 “EMU” means economic and monetary union as contemplated in the Treaty on European Union. 
 “EMU Legislation” means legislative measures of the European Council for the introduction of, changeover to or operation of a single or
unified European currency (whether known as the Euro or otherwise), being in part the implementation of the third stage of EMU. 
 “Equity Issuance” means any issuance or sale (including, without limitation, as a result of a conversion or exchange of debt securities) by either Borrower or any of their Subsidiaries of equity securities issued by either
Borrower or any of their Subsidiaries. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder. 
 “EURIBOR Advance” means any Eurocurrency
Rate Advance which is denominated in Euros and bears interest at a rate determined in accordance with clause (b) of the definition of Eurocurrency Rate in this Section 1.01. 
 “Eurocurrency Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurocurrency Lending
Office” in its Administrative Questionnaire (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the Administrative Agent.

  

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 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of the
Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurocurrency Rate” means: 

(a) for any Interest Period for each Eurocurrency Rate Advance denominated in Dollars or Sterling comprising part of the same Borrowing, the rate per
annum equal to the rate for deposits in such Currency having a maturity closest to such Interest Period which appears on the relevant Screen as of 11:00 A.M., London time, on the day two London Banking Days prior to the first day of such
Interest Period (provided that, if such rate does not appear on the relevant Screen for such Interest Period, the Eurocurrency Rate for that Interest Period will be the arithmetic average of quotations obtained by the Administrative Agent
from the Reference Banks for the rate at which deposits in such Currency having a maturity closest to such Interest Period are offered by the principal London office of each such Reference Bank at approximately 11:00 A.M., London time, on the
day that is two London Banking Days preceding the first day of such Interest Period to other prime banks in the London interbank market in a principal amount of $5,000,000 (or, in the case of a Eurocurrency Rate Advance denominated in Sterling, the
Alternate Currency Equivalent thereof in Sterling computed as of the day two London Banking Days prior to the first day of such Interest Period, rounded to the nearest 1,000 units of such Alternate Currency)); and 
 (b) for any Interest Period for each EURIBOR Advance comprising part of the same Borrowing, the rate per annum equal to the interbank offered rates for
deposits having a maturity closest to such Interest Period which appears on the relevant Screen as of 11:00 A.M., London time, on the day two London Banking Days prior to the first day of such Interest Period; provided that, if such rate
does not appear on such Screen for such Interest Period (or, if such Screen shall cease to be publicly available or if the information contained on such Screen, in the Administrative Agent’s reasonable judgment, shall cease accurately to
reflect such interbank offered rates for deposits in Euros within the member states of the European Union which are Participating Member States, as reported by any publicly available source of similar market data selected by the Administrative Agent
that, in the Administrative Agent’s reasonable judgment, accurately reflects such interbank offered rates for deposits in Euros within the member states of the European Union which are Participating Member States), the Eurocurrency Rate for
that Interest Period will be the arithmetic average of quotations obtained by the Administrative Agent from the Reference Banks for the rate at which deposits in Euros having a maturity closest to such Interest Period are offered by the principal
office of each of the Reference Banks in (i) London to prime banks in the London interbank market at approximately 11:00 A.M., London time, or (ii) at the request of a Borrower, Brussels to prime banks in the interbank market within the
member states of the European Union which are Participating Member States at approximately 12:00 noon (Brussels time), in each case on the day that is two Business Days before the first day of that Interest Period in a principal amount equal to the
Alternate Currency Equivalent in Euros computed as of the day two Business Days before the first day of such Interest Period (rounded to the nearest 1,000 Euros) of $5,000,000. 
 “Eurocurrency Rate Advance” means an Advance that bears interest as provided in Section 2.06(a)(ii). 
 “Eurocurrency Rate Reserve Percentage” means, for any Interest Period for all Eurocurrency Rate Advances comprising part of the same
Borrowing, the reserve percentage applicable two Business Days before the first day of such Interest Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve System in New York City with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurocurrency Rate Advances is determined) having a term equal to such Interest Period.

  

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 “Euro” means the single currency of Participating Member States of the European Union.

 “Events of Default” has the meaning specified in Section 6.01. 
 “Existing Credit Agreement” has the meaning specified in the preamble. 
 “Extended Commitment Termination Date” has the meaning specified in Section 2.17(a). 
 “Facility Fee Rate” means, as of any date, a percentage per annum determined by reference to the Financial Strength Rating in effect on
such date as set forth below: 
  

						
	 	  	 Financial
Strength Rating
 Moody’s/S&P
	  	Facility
Fee Rate	 
	 Level 1
	  	Aaa/AAA or above	  	0.050	%
	 Level 2
	  	Aa1/AA+	  	0.060	%
	 Level 3
	  	Aa2/AA	  	0.080	%
	 Level 4
	  	Lower than Level 3	  	0.100	%

 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding 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 of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
 “Finance Trust” means a
trust formed for the purpose of issuing ABC Securities, using the proceeds of such issuance to purchase assets from Ambac Assurance and entering into a Put Agreement with Ambac Assurance. 
 “Financial Strength Rating” means, as of any date, the rating that has been most recently announced by either S&P or Moody’s,
as the case may be, for the financial strength or insurance financial strength, as the case may be, of Ambac Assurance. For purposes of the foregoing, (a) if the ratings established by S&P and Moody’s shall fall within different
levels, the Applicable Margin, the Facility Fee Rate and the Utilization Fee Rate shall be based upon the lower rating; (b) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on
which such change is first announced publicly by the rating agency making such change; and (c) if S&P or Moody’s shall change the basis on which ratings are established, each reference to the Financial Strength Rating announced by
S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be. 
 “GAAP” has the meaning specified in Section 1.03. 
 “Hybrid Securities” means notes or other
securities (other than Contingent-Capital Securities or Credit-Linked Notes) issued by either Borrower or any Subsidiary thereof that are contractually subordinated to other Debt of such issuer and the payment of interest thereon may be subject to
optional or mandatory deferral under the terms thereof or under laws, rules or regulations applicable to such issuer, which notes or other securities are accorded some degree of equity treatment by S&P at the time such notes or other securities
are issued in accordance with then-applicable methodology. 
  

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 “Hybrid Securities Amount” means, with respect to any Hybrid Securities, the amount
(which amount may be a portion of the aggregate amount) of such Hybrid Securities at the time of issuance thereof that received equity classification by S&P. 
 “Increase Date” has the meaning specified in Section 2.16. 
 “Increase
Request” has the meaning specified in Section 2.16. 
 “Increasing Lender” has the meaning specified in
Section 2.16. 
 “Indebtedness” of any Person means, without duplication: (a) all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (b) all obligations, contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and
banker’s acceptances issued for the account of such Person; (c) all obligations of such Person as lessee under leases which have been or should be, in accordance with GAAP, recorded as capitalized lease liabilities; (d) net
obligations of such Person under all Derivative Transactions (other than Derivative Transactions that are designated by such Person as hedges in accordance with GAAP); (e) whether or not so included as liabilities in accordance with GAAP, all
obligations of such Person to pay the deferred purchase price of property or services (other than trade payables not overdue by more than 60 days incurred in the ordinary course of such Person’s business); (f) all obligations (excluding
prepaid interest thereon) of any other Person of any type described in any of clauses (a) through (e) of this definition which is secured by a Lien on property owned by such Person (including obligations arising under conditional sales or
other title retention agreements), even though such Person has not assumed or become liable for the payment of such obligations of such other Person; and (g) all Contingent Liabilities of such Person; provided, however, that the
following shall not constitute Indebtedness of either Borrower or any Subsidiary of either Borrower: (i) obligations under securities reverse repurchase agreements of either Borrower or any Subsidiary of either Borrower as the buyer of
securities to deliver such securities to the seller thereunder, (ii) obligations of an insurance company under insurance policies in the nature of financial guarantees and financial guarantees, in each case from time to time issued in the
ordinary course of such insurance company’s business, (iii) obligations of any Subsidiary of Ambac Financial in the business of issuing investment contracts, under Specified Investment Contracts issued by such Subsidiary,
(iv) obligations of such Person under any Specified Swaps and Specified Hedges, (v) obligations of Ambac Assurance to pay Put Premiums pursuant to any Put Agreement, (vi) obligations of either Borrower or any Subsidiary of either
Borrower under or in respect of any preferred stock issued, or to be issued, by such Borrower or Subsidiary and (vii) obligations of Persons which are Consolidated or subject to be Consolidated on the financial statements of Ambac Financial,
Ambac Assurance and their Subsidiaries according to the provisions of Financial Accounting Standards Board Interpretation No. 46 (R) (Consolidation of Variable Interest Entities). For all purposes of this Agreement, the Indebtedness of any
Person shall include the Indebtedness of any partnership in which such Person is a general partner. 
 “Interest Period”
means, for each Eurocurrency Rate Advance, the period commencing on (and including) the date of such Eurocurrency Rate Advance or the date of the Conversion of any Base Rate Advance into such Eurocurrency Rate Advance and ending on (but excluding)
the final day of the period selected by either Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the final of the next preceding Interest Period and ending on the final day of the period selected by such
Borrower pursuant to the provisions below. The duration of each such Interest Period shall be one, two, three or six months, or 9 or 12 months if available to all Lenders, as such Borrower may, upon notice received by the Administrative Agent not
later than 11:00 A.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided, however, that: 
 (a) any Interest Period with respect to any Eurocurrency Rate Advance that would otherwise end after the Commitment Termination Date shall
end on the Commitment Termination Date; 
  

 8 

 (b) whenever the final day of any Interest Period would otherwise occur on a day other
than a Business Day, the final day of such Interest Period shall be extended to occur on the next succeeding Business Day; provided, however, that, if such extension would cause the final day of such Interest Period to occur in the
next succeeding calendar month, the final day of such Interest Period shall occur on the next preceding Business Day; 
 (c)
whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the final Business Day of such succeeding calendar month; and 
 (d) neither Borrower shall be permitted to select Interest Periods to be in effect at any one time with respect to Eurocurrency Rate Advances made to such Borrower denominated in the same Currency which have
expiration dates occurring on more than five different dates. 
 “Juneau” means Juneau Investments LLC, a Delaware limited
liability company. 
 “Lenders” means the Initial Lenders and each Person that shall become a party hereto pursuant to
Section 2.16, 2.17, 2.18 or 8.07. 
 “Leverage Ratio” means, at any time, the ratio of (a) Total Debt at such time
to (b) Total Capital at such time. 
 “Lien” means any security interest, mortgage, pledge, hypothecation,
assignment, encumbrance, lien (statutory or otherwise), charge against or interest in property to secure payment or performance of an obligation, interest of any vendor or lessor under any conditional sale agreement, capital lease or other title
retention agreement or other priority or preferential arrangement of any kind or nature whatsoever; provided, however, that “Lien” shall not include (a) any reserve established in respect of insurance obligations on the
books of either Borrower or any of its Subsidiaries, provided that such reserve shall not create any preferential claim or priority on any asset of such Person and (b) any reserve established in respect of Specified Swaps on the books of
either Borrower or any of its Subsidiaries, provided that such reserve shall not create any preferential claim or priority on any asset of such Person. 
 “Loan Documents” means this Agreement and the Notes. 
 “Local Time” means
(a) with respect to any Advance denominated, or any payment to be made, in Dollars, New York City time, and (b) with respect to any Advance denominated, or any payment to be made, in an Alternate Currency, the local time in the Principal
Financial Center for such Currency. 
 “London Banking Day” means a day on which dealings in deposits in Dollars are carried
on in the London interbank market. 
 “Material Adverse Change” means any material adverse change in the business, financial
condition or operations of Ambac Financial and its Subsidiaries, taken as a whole. 
 “Material Adverse Effect” means a
material adverse effect (a) on the business, financial condition or operations of Ambac Financial and its Subsidiaries, taken as a whole, (b) on the rights and remedies of the Administrative Agent or any Lender under any Loan Document or
(c) on the ability of either Borrower to perform its obligations under any Loan Document. 
  

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 “Material Subsidiary” means, at any date of determination, any Subsidiary of either
Borrower that, together with its Subsidiaries, as of the end of the most recent fiscal year, was the owner of (or, in the case of any Subsidiary that is acquired following such fiscal year end, would have been the owner of) at least 10% of the
Consolidated assets of such Borrower and its Subsidiaries at the end of such fiscal year, all as set forth on the most recently available Consolidated financial statements of such Borrower for such fiscal year. 
 “MCR Cost” means the percentage rate per annum calculated by the Administrative Agent in accordance with Schedule III. 
 “Moody’s” means Moody’s Investors Service, Inc., and its successors. 
 “Net Proceeds” means with respect to any Equity Issuance, the gross proceeds received by such Borrower from such Equity Issuance less
the amount of all underwriting discounts and commissions and other reasonable costs, fees and expenses paid by such Borrower in connection with such Equity Issuance (including, but not limited to taxes and reasonable fees and expenses paid to
attorneys, brokers or other advisors or service providers). 
 “Note” means a promissory note of a Borrower payable to the
order of a Lender, substantially in the form of Exhibit A hereto, evidencing the aggregate indebtedness of such Borrower to such Lender resulting from Advances made by such Lender to such Borrower. 
 “Notice of Borrowing” has the meaning specified in Section 2.02. 
 “Other Taxes” has the meaning specified in Section 2.13(b). 
 “Participating Member State” means each state so described in any EMU Legislation. 
 “Pension Plan” means a “pension plan”, as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of
ERISA (other than a multiemployer plan as defined in section 4001(a) (3) of ERISA), and to which either Borrower or any corporation, trade or business that is, along with such Borrower, a member of a Controlled Group, may have liability,
including any liability by reason of having been a substantial employer within the meaning of section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing sponsor under section 4069 of ERISA.

 “Permitted Liens” means: (a) Liens for taxes, assessments and governmental charges or levies; (b) Liens imposed
by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than 60
days; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; and (d) encumbrances on title to real property that do not render title to the
property encumbered thereby unmarketable or materially adversely affect the use of such property for its intended purposes. 
 “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof. 
 “Put Agreement” means an agreement between Ambac Assurance and a Finance Trust
pursuant to which Ambac Assurance has the right, at its option, to compel a Finance Trust to purchase preferred stock issued, or to be issued, by Ambac Assurance. 
  

 10 

 “Principal Financial Center” means (a) New York with respect to Dollars,
(b) London with respect to Euros and Sterling and (c) any other financial center agreed to by the Borrowers and the Administrative Agent with respect to any Currency. 
 “Put Premium” means a premium payable by Ambac Assurance under a Put Agreement. 
 “Reference Banks” means Citibank, The Bank of New York and KeyBank, National Association (and any successors thereof). 
 “Register” has the meaning specified in Section 8.07(c). 
 “Relevant Anniversary” has the meaning specified in Section 2.17(a). 
 “Required Lenders” means, at any time, Lenders having at least a majority in interest of the Commitments or, if no Commitments are then
outstanding, Lenders owed at least a majority in interest of the then aggregate unpaid principal amount of all outstanding Advances (computed, in the case of Advances denominated in an Alternate Currency, as the Dollar Equivalent thereof as of such
time). 
 “Required Lender Rating” means an unsecured short-term senior debt rating of not less than A-1 from Moody’s
and P-1 from S&P. 
 “Reserve Requirement” means, for any Interest Period for all Eurocurrency Rate Advances comprising
part of the same Borrowing, the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during such Interest Period under Regulation D by member banks of the Federal Reserve
System in New York City with deposits exceeding one billion Dollars against “Eurocurrency Liabilities” (as such term is used in Regulation D). Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any other
reserves required to be maintained by such member banks by reason of any Regulatory Change against (a) any category of liabilities that includes deposits by reference to which the Eurocurrency Rate is to be determined or (b) any category
of extensions of credit or other assets that includes Eurocurrency Rate Advances. 
 “Responsible Officer” means, with
respect to a Borrower, the president, chief financial officer or treasurer of such Borrower. 
 “S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors. 
 “Screen” means: 
 (a) in relation to the Eurocurrency Rate for Advances denominated in Dollars or
Sterling, Reuters Page LIBOR01 or LIBOR02, as the case may be (or any successor or substitute page or service providing rate quotations comparable to those currently provided on such page, as determined by the Administrative Agent from time to time
for the purposes of providing quotations of interest rates applicable to Advances denominated in such Currency in the London interbank market); and 
 (b) in relation to the Eurocurrency Rate for Advances denominated in Euros, Reuters Page EURIBOR01 (or any successor or substitute page or service providing rate quotations comparable to those currently provided on
such page, as determined by the Administrative Agent from time to time for the purposes of providing quotations of interest rates applicable to Advances denominated in Euros within the member states of the European Union which are Participating
Member States). 
  

 11 

 “Solvent” means, with respect to any Person on a particular date, that (a) the fair
value of the total assets of such Person is greater than the total amount of the liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less
than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay such debts and liabilities as they mature, and (d) such Person is not engaged in business, and is not about to engage in business, for which such Person’s property would constitute unreasonably small capital.

 “Specified Hedge” means any derivative transaction, securities repurchase agreement or other similar agreement or
arrangement entered into by any Person that, in each case, is entered into as a hedge. 
 “Specified Investment Contract”
means any investment contract entered into by Ambac Assurance or any Subsidiary of Ambac Financial in the ordinary course of Ambac Assurance’s or such Subsidiary’s respective businesses. 
 “Specified Swap” means any interest rate swap agreement or other similar agreement or arrangement entered into by any Person, as to
which interest rate risk is substantially hedged. 
 “Sterling” means U.K. Pounds Sterling, the lawful currency of the
United Kingdom. 
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company,
trust or estate of which (or in which) more than 50% of (a) the issued and outstanding Voting Stock of such corporation, (b) the interest in the capital or profits of such limited liability company, partnership or joint venture or
(c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries, or by one or more of such Person’s other Subsidiaries.

 “Target Operating Day” means any day that is not (a) a Saturday or Sunday, (b) Christmas Day or New Year’s
Day or (c) any other day on which the Trans-European Automated Real-time Gross Settlement Express Transfer system (or any successor settlement system) is not scheduled to operate (as determined by the Administrative Agent). 
 “Taxes” has the meaning specified in Section 2.13(a). 
 “Total Capital” means, at any time, the sum of (a) the stockholders’ equity of Ambac Financial and its Subsidiaries (other
than Aleutian and Juneau), on a Consolidated basis (excluding unrealized gains on investments and unrealized losses on investments), computed as of the end of the most recently completed fiscal quarter of Ambac Financial (or, if such time is on the
final day of any fiscal quarter of Ambac Financial, as of such day) plus (b) Total Debt as of such time plus (c) the aggregate Hybrid Securities Amounts as of such time (excluding that portion, if any, of such aggregate
Hybrid Securities Amounts that exceeds 15% of Total Capital before giving effect to such exclusion, computed as of the end of the most recently completed fiscal quarter of Ambac Financial (or, if such time is on the final day of any fiscal quarter
of Ambac Financial, as of such day)). 
 “Total Debt” means, at any time, the aggregate amount of Debt of Ambac Financial
and its Subsidiaries (other than Aleutian and Juneau), on a Consolidated basis, excluding (a) Contingent-Capital Securities, (b) Credit-Linked Notes and (c) that portion of Debt in respect of Hybrid Securities that is included as
Total Capital under clause (c) of the definition of “Total Capital” in this Section 1.01, in each case computed as of the end of the most recently completed fiscal quarter of Ambac Financial (or, if such time is on the final day
of any fiscal quarter of Ambac Financial, as of such day). 
  

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 “Type” refers to, for any Advance, its nature as a Base Rate Advance or Eurocurrency
Rate Advance. 
 “Utilization Fee Rate” means, for any day, a percentage per annum determined by reference to the Financial
Strength Rating in effect on such date as set forth below: 
  

						
	 	  	Financial Strength Rating
Moody’s/S&P	  	Utilization Fee Rate	 
	 Level 1
	  	Aaa/AAA or above	  	0.025	%
	 Level 2
	  	Aa1/AA+	  	0.050	%
	 Level 3
	  	Aa2/AA	  	0.050	%
	 Level 4
	  	Lower than Level 3	  	0.050	%

 “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency. 
 “Welfare Plan” means a “welfare plan”, as such term is
defined in section 3(1) of ERISA. 
 SECTION 1.02 Computation of Time Periods. In this Agreement in the computation of periods of time
from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”. 
 SECTION 1.03 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the financial statements referred to in Section 4.01(e) (“GAAP”). 
 ARTICLE II 
 AMOUNTS AND TERMS OF THE ADVANCES 
 SECTION 2.01 The Advances. (a) Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make advances in Dollars
or in any Alternate Currency to each Borrower under this Section 2.01 (each, an “Advance”) from time to time on any Business Day during the period from the Effective Date until the Commitment Termination Date in an aggregate
principal amount (computed as of the second Business Day next preceding the Business Day on which such Advance is made or is scheduled to be made, in the case of Advances denominated in an Alternate Currency, as the Dollar Equivalent of the
aggregate principal amount of all Advances denominated in an Alternate Currency outstanding or to be made outstanding as of the Business Day on which such Advance is made or is scheduled to be made) at any one time outstanding up to but not
exceeding (in the aggregate for both Borrowers) the amount set forth opposite such Lender’s name on Schedule I or, if such Lender has entered into any Additional Commitment Agreement or Assignment and Acceptance, set forth for such Lender
in the Register maintained by the Administrative Agent pursuant to Section 8.07(c), as such amount may be reduced pursuant to Section 2.04 or increased pursuant to Section 2.16 or 2.17 (such Lender’s
“Commitment”). 
  

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 (b) Each Borrowing shall be in an aggregate amount of $15,000,000 or an integral multiple of $1,000,000
in excess thereof or, in the case of a Borrowing denominated in an Alternate Currency, the Alternate Currency Equivalent thereof in such Alternate Currency (computed as of the second Business Day next preceding the date of such Borrowing), rounded
to the nearest 1,000 units of such Alternate Currency, and shall consist of Advances of the same Type made on the same day in the same Currency by the Lenders ratably according to their respective Commitments. Within the limits of each Lender’s
Commitment, each Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.09 and reborrow under this Section 2.01. 
 (c) The Administrative Agent shall maintain a written record of each Advance made by a Lender to a Borrower, and of each repayment of principal of, and payment of interest on, such Advance made by such Borrower for the account of such
Lender. Upon the prior written request of any Lender delivered by such Lender to the Administrative Agent and the Borrowers, each of the Borrowers shall execute and deliver to such Lender a Note to the order of such Lender. 
 (d) No Base Rate Advance may be borrowed in a Currency other than Dollars. 
 SECTION 2.02 Making the Advances. (a) Each Borrowing shall be made on notice, given not later than 12:00 Noon (New York City time) (or, in the case of a Borrowing in an Alternate Currency, London time) on
the third Business Day next preceding the date of such Borrowing in the case of a Borrowing consisting of Eurocurrency Rate Advances, or 11:30 A.M. (New York City time) on the Business Day of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by either Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof by telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone,
confirmed immediately in writing or by telecopier, in substantially the form of Exhibit B, specifying therein the requested (i) date of such Borrowing, (ii) Currency and Type of Advances comprising such Borrowing, (iii) aggregate
amount of such Borrowing and (iv) in the case of a Borrowing consisting of Eurocurrency Rate Advances, initial Interest Period for each such Advance. Each Lender shall, before 10:00 A.M. (Local Time) on the date of such Borrowing in the case of
a Borrowing consisting of Eurocurrency Rate Advances, or 1:00 P.M. (New York City time) on the date of such Borrowing in the case of a Borrowing consisting of Base Rate Advances, make available for the account of its Applicable Lending Office to the
Administrative Agent at the Administrative Agent’s Account for the relevant Currency, in same day funds, such Lender’s ratable portion of such Borrowing. After the Administrative Agent’s receipt of such funds and upon fulfillment of
the applicable conditions set forth in Article III, the Administrative Agent will, not later than 11:00 A.M. (Local Time) on the date of such Borrowing in the case of a Borrowing consisting of Eurocurrency Rate Advances, or 2:00 P.M. (New York City
time) on the date of such Borrowing in the case of a Borrowing consisting of Base Rate Advances, make such funds available to such Borrower at the Administrative Agent’s address referred to in Section 8.02. 
 (b) Anything in subsection (a) above to the contrary notwithstanding, neither Borrower may select Eurocurrency Rate Advances for any Borrowing if
the obligation of the Lenders to make Eurocurrency Rate Advances shall then be suspended pursuant to Section 2.07 or 2.11. 
 (c) In the
case of any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurocurrency Rate Advances, the Borrower that has requested such Borrowing shall indemnify each Lender against any loss, cost or expense incurred by such
Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including any loss (excluding loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on
such date. 
 (d) Unless the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such
Lender will not make available to the Administrative Agent such 

  

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Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative
Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower that has requested such Borrowing on such date a
corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and such Borrower severally agree to repay to the Administrative Agent forthwith on demand
such corresponding amount together with interest thereon, for each day from the date such amount is made available to such Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of such Borrower, the
interest rate applicable at the time to Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid
shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement. 
 (e) The failure of any Lender to
make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on the date of any Borrowing. The obligation of either Borrower to pay any amount owing by such Borrower to any Lender under this Agreement or any of the Notes may be enforced by such Lender
against such Borrower after such amount has become due and payable by such Borrower to such Lender in accordance with the terms of this Agreement or such Note and, to the fullest extent permitted by law, it shall not be necessary for the
Administrative Agent or any other Lender to be joined as an additional party in any proceeding to enforce such obligation. 
 SECTION 2.03
Fees. (a) Facility Fee. The Borrowers jointly and severally agree to pay to the Administrative Agent for the account of each Lender in Dollars a facility fee, for each day from the Effective Date, if such Lender shall be a party
hereto on the Effective Date, or from the effective date specified in the Additional Commitment Agreement or Assignment and Acceptance pursuant to which it became a Lender or from the date it became a Lender pursuant to Section 2.16, 2.17 or
2.18, if such Lender shall become a party hereto after the Effective Date, until the Commitment Termination Date, computed at the Facility Fee Rate for such date on the amount of such Lender’s Commitment, whether or not utilized, for such date;
in each case payable in arrears quarterly on the final day of each March, June, September and December, commencing on the first of such dates to occur after the Effective Date, and on the Commitment Termination Date. 
 (b) Administrative Agent’s Fees. The Borrowers jointly and severally agree to pay to the Administrative Agent for its own account in Dollars
such fees as may from time to time be agreed between the Borrowers and the Administrative Agent. 
 (c) Utilization Fee. The Borrowers
jointly and severally agree to pay to the Administrative Agent for the account of each Lender a utilization fee, for each day on which the aggregate outstanding principal amount of the Advances (computed, in the case of any Advance denominated in an
Alternate Currency, as of the second Business Day next preceding the Business Day on which such Advance denominated in such Alternate Currency is made, as the Dollar Equivalent of the principal amount of such Advance denominated in such Alternate
Currency outstanding on such day) exceeds 50% of the aggregate amount of Commitments, computed at the Utilization Fee Rate for such day on the aggregate unpaid principal amount of the Advances of such Lender to the Borrowers, payable in arrears in
the case of each Advance on each day on which a payment of interest is due on such Advance under Section 2.06. 
 SECTION 2.04
Termination or Reduction of the Commitments. The Borrowers shall have the right, upon at least three Business Days’ notice signed by both Borrowers to the Administrative Agent (which shall promptly notify each Lender), to terminate in
whole or reduce ratably in part the unused portions of the respective Commitments of the Lenders, provided that each partial reduction shall be in the aggregate amount of $15,000,000 or an integral multiple of $1,000,000 in excess thereof.
Once terminated or reduced, the Commitments may not be reinstated, except as provided in Section 2.16 or 2.17. 
  

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 SECTION 2.05 Repayment. Each Borrower shall repay to the Administrative Agent for the account of
each Lender on the Commitment Termination Date the full principal amount of each Advance of such Lender made to such Borrower and outstanding on the Commitment Termination Date. 
 SECTION 2.06 Interest. (a) Each Borrower shall pay interest on the unpaid principal amount of each Advance made to such Borrower from the
date of such Advance until such principal amount shall be paid in full, at the following rates per annum: 
 (i) Base Rate
Advances. While such Advance is a Base Rate Advance, a rate per annum equal at all times to the sum of the (A) Base Rate in effect from time to time plus (B) the Applicable Margin for Base Rate Advances, payable in arrears
quarterly on the final Business Day of each March, June, September and December, and on the date such Base Rate Advance shall be Converted or paid in full and on the Commitment Termination Date. 
 (ii) Eurocurrency Rate Advances. While such Advance is a Eurocurrency Rate Advance, a rate per annum equal at all times during each
Interest Period for such Advance to the sum of (A) the Eurocurrency Rate for such Interest Period for such Advance plus (B) the Applicable Margin for Eurocurrency Rate Advances, payable in arrears on the final day of such Interest
Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurocurrency Rate Advance shall be
Converted or paid in full. 
 (b) Additional Interest on Eurocurrency Rate Advances. Each Borrower shall pay to each Lender, so long
as and to the extent such Lender shall be required under regulations of the Board of Governors of the Federal Reserve System to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional
interest on the unpaid principal amount of each Eurocurrency Rate Advance of such Lender made to such Borrower, from the date of such Eurocurrency Rate Advance until such principal amount is paid in full, at an interest rate per annum equal at all
times to the remainder obtained by subtracting (i) the Eurocurrency Rate for the then existing Interest Period for such Advance from (ii) the rate obtained by dividing such Eurocurrency Rate by a percentage equal to 100% minus the Eurocurrency Rate
Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such Advance. Each Lender shall, as promptly as practicable after an authorized officer of such Lender having direct and ongoing
involvement in the decisions made in respect of this Agreement obtains knowledge of such circumstances and the determination of such Lender to request additional interest from such Borrower pursuant to this Section 2.06(b), provide notice to the
Administrative Agent and such Borrower of the circumstances entitling such Lender to such additional interest, which notice shall (A) specify the amount of any such additional interest incurred in connection with such Eurocurrency Rate Advance made
to such Borrower and/or to be incurred in connection with Eurocurrency Rate Advances made by such Lender from time to time thereafter to such Borrower and (B) certify that such Lender’s claim for payment of such additional interest is not
inconsistent with its treatment of other borrowers that, as a credit matter, are substantially similar to such Borrower and that are subject to comparable provisions in the loan or other credit documentation to which such borrowers are parties;
provided, however, that no Lender shall be entitled to additional interest on any Eurocurrency Rate Advance pursuant to this Section 2.06(b) for any Interest Period ending more than 120 days prior to the date that notice of such
additional interest is first provided by such Lender to such Borrower. A notice delivered by any Lender to either Borrower pursuant to the terms of this Section 2.06(b) shall be conclusive and binding, absent manifest error. A Lender that delivers a
notice under this Section 2.06(b) shall promptly notify the Administrative Agent and such Borrower if the circumstances that gave rise to such notice no longer exist. 
  

 16 

 (c) MCR Costs. Each Borrower shall pay additional interest on the unpaid principal amount of each
Eurocurrency Rate Advance denominated in an Alternate Currency made to such Borrower, from the date of such Advance until such principal amount is paid in full, at an interest rate per annum equal at all times to the MCR Cost (if any) in respect of
such Advance, payable on each date on which interest is payable on such Advance. 
 SECTION 2.07 Interest Rate Determination.
(a) The Administrative Agent shall give prompt notice to each Borrower and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.06(a). 
 (b) If either Borrower shall fail to select the duration of any Interest Period for any Eurocurrency Rate Advances to be made to such Borrower in
accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, such Interest Period shall have a duration of one month. 
 (c) On the date on which the aggregate unpaid principal amount of Eurocurrency Rate Advances denominated in Dollars having the same Interest Period shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically, on the final day of the then existing Interest Period therefor, Convert into Base Rate Advances. 
 (d) Upon the occurrence and during the continuance of any Event of Default, (i) each Eurocurrency Rate Advance denominated in Dollars will automatically, on the final day of the then existing Interest Period therefor, Convert into a
Base Rate Advance and (ii) the obligation of the Lenders to Convert Base Rate Advances into Eurocurrency Rate Advances denominated in Dollars shall be suspended. 
 SECTION 2.08 Optional Conversion of Advances. Each Borrower may on any Business Day, upon notice given to the Administrative Agent not later than 12:00 A.M. (New York City time) on the third Business Day prior
to the date of the proposed Conversion and subject to the provisions of Sections 2.07 and 2.11, Convert all Base Rate Advances made to such Borrower comprising the same Borrowing into Eurocurrency Rate Advances denominated in Dollars and Convert all
Eurocurrency Rate Advances denominated in Dollars made to such Borrower comprising the same Borrowing into Base Rate Advances; provided, however, that (a) any Conversion of Eurocurrency Rate Advances denominated in Dollars into
Base Rate Advances shall be made only on the final day of an Interest Period for such Eurocurrency Rate Advances and (b) no Conversion of any Advances shall result in more separate Interest Periods with respect to Eurocurrency Rate Advances
denominated in Dollars made to such Borrower than permitted under the definition of the term “Interest Period” in Section 1.01; and provided, further, that no Base Rate Advance may be Converted to a Eurocurrency Rate Advance
denominated in Dollars when any Event of Default has occurred and is continuing. Each such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such Conversion, (ii) the Advances to be Converted,
and (iii) if such Conversion is into Eurocurrency Rate Advances denominated in Dollars, the duration of the initial Interest Period for each such Advance. Each notice of Conversion shall be irrevocable and binding on the Borrowers. 

SECTION 2.09 Prepayments. (a) Optional. Each Borrower may, in the case of Eurocurrency Rate Advances upon at least two Business
Days’ notice, or, in the case of Base Rate Advances upon same day notice, to the Administrative Agent (which shall promptly notify each Lender) stating the proposed date and aggregate principal amount of the prepayment, and if such notice is
given, such Borrower shall, prepay the outstanding principal amount of the Advances made to such Borrower comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the
principal amount prepaid; provided, however, that all such partial prepayments shall be in an aggregate minimum amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof (or in each case the Alternate Currency
Equivalent thereof computed as of the day two Business Days before such prepayment is made). Each prepayment of any Advances made pursuant to this Section 2.09 shall be without premium or penalty, subject, however, to Section 8.04(c).

  

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 (b) Mandatory. 
 (i) If on the last day of any Interest Period, by reason of fluctuation of exchange rates between Alternate Currencies and the Dollar,
(1) the aggregate outstanding principal amount of all Advances (computed as of such day, in the case of Advances denominated in an Alternate Currency, as the Dollar Equivalent of such Advances) exceeds (2) an amount equal to 105% of the
aggregate amount of the Commitments then in effect, the Administrative Agent shall use all reasonable efforts to give prompt written notice thereof to the Borrowers, specifying the amount to be prepaid by the Borrowers under this clause (i), so
that, after giving effect to such prepayment by the Borrowers, the aggregate principal amount of the Advances outstanding to both Borrowers (determined as aforesaid) does not exceed the aggregate amount of the Commitments and, if the Administrative
Agent shall give each of the Borrowers such notice, the Borrowers shall, within five Business Days after receipt by the Borrowers of such notice, prepay the Advances in an aggregate principal amount equal to the amount set forth in such notice by
the Administrative Agent. 
 (ii) The determinations of the Administrative Agent under this Section 2.09(b) shall be
conclusive and binding on the Borrowers in the absence of manifest error. 
 SECTION 2.10 Increased Costs. If, due to either
(a) the introduction of or any change (other than any change by way of imposition or increase of reserve requirements included in the Eurocurrency Rate Reserve Percentage), after the Effective Date in, or any change after the Effective Date in
the interpretation of, any law or regulation or (b) the compliance with any guideline or request promulgated after the Effective Date from any central bank or other governmental authority (whether or not having the force of law), there shall be
any increase in (i) the cost to any Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Advances (excluding for purposes of this Section 2.10 any such increased costs resulting from Taxes or Other Taxes or from
changes in the basis or rate of taxation of net income or gross income by the United States or by the foreign jurisdiction or state under the laws of which such Lender is subject to tax as a result of a present or former connection between such
Lender and such foreign jurisdiction or state) or (ii) the amount of capital required to be maintained by such Lender or any corporation controlling such Lender based on the existence of its Commitment or the Advances hereunder, then the
Borrowers jointly and severally agree from time to time, within five Business Days after receipt by both Borrowers of a written demand by such Lender (with a copy of such demand to the Administrative Agent), to pay to the Administrative Agent for
the account of such Lender additional amounts as shall accrue from and after the date of demand by such Lender to compensate such Lender (or such controlling corporation, as the case may be) for such increased cost or such increase of capital;
provided, however, that before making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to minimize such additional amounts and to designate a
different Applicable Lending Office if the making of such a designation would avoid the need for, or reduce the amount of, such increased cost or such increase of capital and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender; and provided, further, that the Borrowers shall be required jointly and severally to pay to such Lender only such additional amounts as shall be required to compensate such Lender for such increased cost
or such increase of capital as shall accrue from and after the date of demand by such Lender. In determining such additional amounts, such Lender will act reasonably and in good faith and will use averaging and attribution methods which are
reasonable, provided that such Lender’s determination of compensation owing under this Section 2.10 shall be conclusive and binding, absent manifest error. Each Lender, upon determining that any additional amounts will be payable
pursuant to this Section 2.10, will give prompt written notice thereof to the Borrowers, which notice shall show the basis for the calculation of such additional amounts. Notwithstanding anything herein to the contrary, either Borrower shall
have the right to unilaterally terminate the Commitment of any Lender demanding additional amounts under this Section 2.10 sixty (60) days after providing to such Lender a notice of termination; provided that such termination shall
not result in a reduction in amounts required to be paid pursuant to this Section 2.10. Each of the Borrowers shall, concurrently with such termination, pay or prepay, as the case may be, 

  

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to such Lender the aggregate amount, if any at such time, of all Advances and other amounts payable by such Borrower to such Lender under this Agreement.
Notwithstanding any provision of this Agreement to the contrary, Section 2.13 shall provide the exclusive remedy to the Lenders in respect of Taxes and Other Taxes. 
 SECTION 2.11 Illegality. Notwithstanding any other provision of this Agreement, if any Lender shall notify the Administrative Agent that the introduction of or any change after the Effective Date in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts after the Effective Date that it is unlawful, for any Lender or its Eurocurrency Lending Office to perform its obligations
hereunder to make Eurocurrency Rate Advances or to fund or maintain Eurocurrency Rate Advances hereunder, (i) each Eurocurrency Rate Advance denominated in Dollars will automatically, upon such demand, Convert into a Base Rate Advance and
(ii) the obligation of the Lenders to Convert Base Rate Advances into Eurocurrency Rate Advances denominated in Dollars shall be suspended until the Administrative Agent shall notify the Borrower that has requested such Advance and the Lenders
that the circumstances causing such suspension no longer exist; provided, however, that before making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Eurocurrency Lending Office if the making of such a designation would allow such Lender or its Eurocurrency Lending Office to continue to perform its obligations to make Eurocurrency Rate Advances or to
continue to fund or maintain Eurocurrency Rate Advances and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 
 SECTION 2.12 Payments and Computations. 
 (a) All payments of principal and of interest on any Advance
denominated in Dollars and of all facility fees, agency fees and utilization fees shall be made in Dollars and in immediately available funds. 
 (b) All payments of principal and interest on any Advance denominated in an Alternate Currency shall be made in such Currency and in immediately available funds. 
 (c) Each Borrower shall make each payment to be made by it hereunder and under the Notes to the Administrative Agent at the Administrative Agent’s Account in the Principal Financial Center for the relevant
Currency in immediately available funds, not later than 11:00 A.M. Local Time on the day when due and without set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like Currency and funds relating to the
payment of principal, interest or fees ratably (other than amounts payable pursuant to Section 2.10, 2.13 or 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like Currency and funds relating to the
payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to Section 8.07(d), from and after the effective date specified in such Assignment and Acceptance, the Administrative Agent shall make all payments hereunder and under the
Notes in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between
themselves. 
 (d) All computations of interest based on the Base Rate, when the Base Rate is determined by reference to Citibank’s base
rate, shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all other computations of interest and of facility fees and utilization fees shall be made by the Administrative Agent on the basis of
a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees are payable. Each determination by the Administrative Agent of an interest
rate hereunder shall be conclusive and binding, absent manifest error. 
  

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 (e) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest, facility fee or utilization fee, as the case may be; provided,
however, that, if such extension would cause payment of interest on or principal of Eurocurrency Rate Advances to be made in the next succeeding calendar month, such payment shall be made on the next preceding Business Day. 
 (f) Unless the Administrative Agent shall have received notice from either Borrower prior to the date on which any payment is due to the Lenders
hereunder that such Borrower will not make such payment in full, the Administrative Agent may assume that such Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall
repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent, at the Federal Funds Rate. 
 SECTION 2.13 Taxes. (a) Any and all payments by each Borrower hereunder or
under the Notes shall be made, in accordance with Section 2.12, free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings imposed by the United States or by any
political subdivision thereof or therein with respect to such payments, and all penalties and interest with respect thereto, excluding, in the case of each Lender and the Administrative Agent, taxes imposed on or measured by its net income or
net profit, and branch profit taxes, franchise taxes, taxes on doing business and taxes measured by or imposed upon its capital or net worth, in each case imposed as a result of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced this Agreement or the Notes) (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the Notes being hereinafter
referred to as “Taxes”). If either Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable by such Borrower hereunder or under any Note to any Lender or the Administrative Agent, (i) the sum
payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.13) such Lender or the Administrative Agent (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower shall make such deductions and (iii) such Borrower shall pay the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law. 
 (b) In addition, the Borrowers jointly and severally agree to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from the execution, delivery or registration of this Agreement or the Notes (hereinafter referred to as “Other Taxes”);
provided, however, that the Borrowers shall have no obligation to pay Other Taxes that may arise as a result of a participation referred to in Section 2.14 or 8.07. 
 (c) Each of the Borrowers shall indemnify each Lender and the Administrative Agent for and hold it harmless against the full amount of Taxes with respect
to payments by such Borrower hereunder or under the Notes imposed on or paid by such Lender or the Administrative Agent (as the case may be) and any liability for penalties, interest and expenses arising therefrom or with respect thereto. The
Borrowers shall jointly and severally indemnify each Lender and the Administrative Agent for and hold it harmless against the full amount of Other Taxes imposed on or paid by such Lender or the Administrative Agent (as the case may be) and any
liability for penalties, interest and expenses arising therefrom or with respect thereto. Any indemnification under this Section 2.13(c) shall be made within 30 days from the date such Lender or the Administrative Agent (as the case may be)
makes written demand therefor. 
  

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 (d) Each Lender that is not a “United States person” within the meanings specified in
Section 7701 of the Code, on or prior to the date of its execution and delivery of this Agreement or on the date of the Assignment and Acceptance pursuant to which it becomes a Lender, as the case may be, and from time to time thereafter as
requested in writing by either Borrower (but only so long as such Lender remains lawfully able to do so), shall provide each of the Administrative Agent and such Borrower with (i) two accurate and complete original signed copies of Internal
Revenue Service Form W-8BEN or W-8ECI, as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying to such Lender’s entitlement to a complete exemption from United States withholding tax with respect to
payments to be made under this Agreement or the Notes on account of such Lender being entitled to benefits under an income tax treaty or such payments being effectively connected with such Lender’s conduct of a United States trade or business
or (ii) if the Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver either Internal Revenue Service Form W-8BEN or W-8ECI pursuant to clause (i) above, (A) a certificate in
form and substance satisfactory to the Administrative Agent and such Borrower stating that such Lender is not a “person” described in Section 871(h)(3) or Section 881(c)(3) of the Code (a “Foreign Lender
Certificate”) and (B) two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN (or successor form) certifying to such Lender’s entitlement to a complete exemption from United States withholding tax
with respect to payments to be made under this Agreement and under any Note. In addition, each Lender agrees that from time to time, when a lapse in time or change in circumstances renders the previous certification obsolete or inaccurate in any
material respect, it will deliver to such Borrower and the Administrative Agent two new accurate and complete original signed copies of Internal Revenue Service Form W-8BEN or W-8ECI, or Form W-8BEN and a Foreign Lender Certificate, as the case may
be, and such other forms as may be required in order to confirm or establish the entitlement of such Lender to a continued exemption from United States withholding tax with respect to payments under this Agreement and any Note or it shall
immediately notify such Borrower and the Administrative Agent of its inability to deliver any such form or certificate, in which case such Lender shall not be required to deliver any such form or certificate pursuant to this Section 2.13(d) for
so long as such payments may be made free from United States withholding tax. Notwithstanding the foregoing, no Lender shall be required to deliver any such form or certificate described in the immediately preceding sentence if a change in treaty,
law or regulation has occurred prior to the date on which such delivery would otherwise be required that renders any such form or certificate inapplicable or would prevent the Lender from duly completing and delivering any such form or certificate
with respect to it and such Lender so advises such Borrower. 
 (e) For any period with respect to which a Lender has failed to provide
either Borrower with the appropriate form described in Section 2.13(d), such Lender shall not be entitled to indemnification under Section 2.13(a) or (c) with respect to Taxes or Other Taxes imposed by the United States by reason of
such failure. 
 (f) Any Lender claiming additional amounts payable pursuant to this Section 2.13 agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to minimize such additional amounts and to change the jurisdiction of its Applicable Lending Office if the making of such a change would avoid the need for, or reduce the
amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable determination of such Lender, be otherwise disadvantageous to such Lender. 
 (g) If a Lender changes its Applicable Lending Office (other than pursuant to subsection (f) above or Section 2.11 or 2.12 or otherwise at the
request of either Borrower) and the effect of such change, as of the date of such change, would be to cause either Borrower to become obligated to pay any additional amounts under this Section 2.13, such Borrower shall not be obligated to pay
such additional amounts. 
  

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 (h) If either Borrower is required to pay any amounts pursuant to the provisions of this
Section 2.13 to or for the account of any Lender or the Administrative Agent, and if thereafter such Lender or the Administrative Agent, as the case may be, shall receive a refund of any Taxes or Other Taxes paid by or on behalf of such Lender
or the Administrative Agent, as the case may be, that such Lender or the Administrative Agent, as the case may be, reasonably determines to relate solely to the amounts so paid by such Borrower, such Lender or the Administrative Agent, as the case
may be, shall to the extent that it can do so without prejudice to the retention of the amount of such refund, pay to such Borrower within twenty days after the date on which such Lender or the Administrative Agent, as the case may be, actually
receives such refund in an amount which such Lender or the Administrative Agent, as the case may be, determines to be the proportion of the refunded amount as will leave it, after such remittance, in no better or worse position than it would have
been if the Taxes or Other Taxes had not been imposed and the corresponding additional amounts or indemnification payment not been made. Nothing in this Section 2.13(h) shall be construed as requiring any Lender or the Administrative Agent to
conduct its business or to arrange or alter in any respect its tax or financial affairs so that it is entitled to receive such refund. Neither a Lender nor the Administrative Agent shall be obligated to disclose information regarding its tax affairs
or computations to either Borrower in connection with this clause (h). 
 SECTION 2.14 Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances owing to it (other than pursuant to Section 2.10, 2.13 or 8.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Advances owing to them as shall be necessary to cause such purchasing Lender to share the excess
payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay
to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (a) the amount of such Lender’s required repayment to (b) the
total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrowers agree that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.14 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor
of either Borrower in the amount of such participation. 
 SECTION 2.15 Use of Proceeds. Each Borrower shall use the proceeds of each
Advance for working capital and general corporate or company purposes of such Borrower and its Subsidiaries. 
 SECTION 2.16 Increase of
Commitments. (a) The Borrowers may, at any time but in any event not more than two times during any calendar year, make a written request (an “Increase Request”) to the Administrative Agent (who shall forward a copy to each
Lender) that the Commitments of the Lenders be increased, in integral multiples of $15,000,000, by an aggregate amount, together with the aggregate amount by which the Commitments of the Lenders were previously increased pursuant to this
Section 2.16, not to exceed $100,000,000 in excess of the aggregate amount of the Commitments as of the Effective Date. Such Increase Request shall include a certification by a senior officer of each Borrower that (i) on and as of the date
of the Increase Request and after giving effect to the requested increase in Commitments, Ambac Financial’s long-term senior unsecured non-credit-enhanced debt ratings by Moody’s and S&P are better than or equal to Aa3 and AA-,
respectively, and (ii) no Default has occurred and is continuing and all representations and warranties contained herein are true and correct in all material respects on and as of the date of the Increase Request, including without limitation
the representation and warranty of the Borrowers as to the execution, delivery and performance by them of this Agreement and the Notes, taking into account such increase, having been duly authorized by all necessary corporate action (it being
understood and agreed that any representation or warranty which expressly refers by its terms to a specified date shall be required to be true and correct in all material 

  

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respects only as of such date). Any such increase in Commitments shall be effective as of a date (the “Increase Date”) specified in the
related Increase Notice that is (i) prior to the Commitment Termination Date and (ii) at least 10 days after the date of such Increase Notice. Each Increase Notice shall specify the date by which Lenders who wish to increase their
Commitments must consent to such increase (the “Commitment Date”), which date shall be no later than five Business Days prior to the related Increase Date. Each Lender that is willing to increase its Commitment (each an
“Increasing Lender”), shall notify the Administrative Agent on or prior to the Commitment Date of the amount by which it is willing to increase its Commitment, which amount shall not exceed the respective amount specified in the
relevant Increase Notice. No Lender shall be obligated to increase its Commitment pursuant to this Section 2.16 and any such increase shall be in the sole discretion of each Lender. If the Lenders notify the Administrative Agent that they are
willing to increase the amount of their respective Commitments by an aggregate amount that exceeds the amount of the requested increase, the requested increase shall be allocated among the Lenders willing to participate therein ratably in accordance
with the amount by which they offered to increase their respective Commitments on the Commitment Date. 
 (b) Promptly following each
Commitment Date, the Administrative Agent shall notify the Borrowers as to the amount, if any, by which the Lenders are willing to participate in the requested increase. If the aggregate amount by which the Lenders are willing to increase their
Commitments on any such Commitment Date is less than the requested amount, then any one or more Eligible Transferees designated by the Borrowers that agree to provide Commitments for the shortfall may become party to this Agreement by executing and
delivering, together with the Borrowers, an accession agreement pursuant to which such Eligible Transferee shall become a party to this Agreement and, to the extent provided therein, shall have the rights and obligations of a Lender hereunder;
provided that each such Eligible Transferee shall provide a Commitment in a minimum amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof. 
 (c) On each Increase Date, (i) each Eligible Transferee that accepts an offer to participate in a requested Commitment increase in accordance with Section 2.16(b) shall become a Lender party to this
Agreement as of such Increase Date and the Commitment of each Increasing Lender shall be increased as of such Increase Date by the amount set forth in its notice delivered to the Administrative Agent in accordance with Section 2.16(a) (or by
the amount allocated to such Lender pursuant to the last sentence of Section 2.16(a)) and (ii) if on such date there are Advances outstanding, appropriate adjustments shall be made among the Lenders to cause the outstanding Advances to be
held ratably by all Lenders in accordance with their respective Commitments as of the Increase Date. As soon as practicable after the Increase Date, Notes (to the extent requested by Increasing Lenders and Eligible Transferees) shall be issued to
reflect the respective Commitments of any such Increasing Lenders and Eligible Transferees. 
 SECTION 2.17 Extension of Commitment
Termination Date. 
 (a) The Borrowers shall have the right, upon at least 30 Business Days’ notice to the Administrative Agent
(which shall promptly forward such notice to the Lenders) prior to each of the first three anniversaries of the Effective Date (each, a “Relevant Anniversary”), to request that the Commitment Termination Date then in effect (the
“Current Commitment Termination Date”) be extended to the date one year after such Current Commitment Termination Date (such extended date, an “Extended Commitment Termination Date”). 
 (b) Each Lender will use its reasonable efforts to notify the Administrative Agent at least 15 Business Days before the Relevant Anniversary whether it
agrees to participate in such extension. Any Lender that does not so notify the Administrative Agent that it agrees to such extension (each, a “Declining Lender”) shall continue to be a Lender with a Commitment until the Current
Commitment Termination Date or until such Lender is replaced pursuant to subsection (c) of this Section 2.17 (but shall not have any Commitment during any extended period to which it has not agreed). 
  

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 (c) The Borrowers shall have the right to replace, effective as of the Relevant Anniversary or the
Current Commitment Termination Date, each Declining Lender with, and add as “Lenders” under this Agreement, one or more Eligible Assignees (which may include any Lender with the consent of such Lender) (each such Eligible Assignee an
“Additional Commitment Lender”) with the approval of the Administrative Agent (not to be unreasonably withheld), each of which Additional Commitment Lenders shall have entered into an agreement in form and substance satisfactory to
the Borrowers and the Administrative Agent (an “Additional Commitment Agreement”) pursuant to which such Additional Commitment Lender shall undertake a Commitment (if any such Additional Commitment Lender is a Lender, its Commitment
shall be in addition to such Lender’s Commitment hereunder), and such Additional Commitment Lender shall become a “Lender” for all purposes of this Agreement on the Relevant Anniversary or the Current Commitment Termination Date, as
the case may be. 
 (d) If and only if the total of the Commitments of the Lenders that have so agreed to extend the Commitment Termination
Date, taking into account any Commitment increases pursuant to clause (c) of this Section 2.17, shall be more than 50% of the aggregate amount of the Commitments in effect immediately prior to the Relevant Anniversary, the Current
Commitment Termination Date shall be extended, effective as of the Relevant Anniversary, to the Extended Commitment Termination Date. The Borrowers agree to pay in full all amounts owing hereunder to each Declining Lender on the Relevant Anniversary
or the Current Termination Date, as the case may be, on which such Declining Lender is replaced as a Lender pursuant to clause (c) of this Section 2.17. 
 (e) Notwithstanding the foregoing, each extension of the Commitment Termination Date hereunder pursuant to this Section 2.17 shall be effective only if: 
 (i) no Default has occurred and is continuing as of the date of the request pursuant to clause (a) above and the Relevant
Anniversary; and 
 (ii) all representations and warranties contained herein are true and correct in all material respects on
and as of the date of the request pursuant to clause (a) above and the Relevant Anniversary, including without limitation the representation and warranty of the Borrowers as to the execution, delivery and performance by them of this Agreement
and the Notes, taking into account such extension, having been duly authorized by all necessary corporate action (it being understood and agreed that any representation or warranty which expressly refers by its terms to a specified date shall be
required to be true and correct in all material respects only as of such date); and 
 (iii) if on the Relevant Anniversary or
the Current Commitment Termination Date there are Advances outstanding, appropriate adjustments shall be made among the Lenders to cause the outstanding Advances to be held ratably by all Lenders in accordance with their respective Commitments as of
each such date. 
 SECTION 2.18 Right to Replace a Lender. If either Borrower is required to make any additional payment pursuant to
Section 2.10 or 2.13 to any Lender or if any Lender’s obligation to make, or to Convert Advances into, Eurocurrency Rate Advances shall be suspended pursuant to Section 2.11 (in each case, such Lender being an “Affected
Person”), the Borrowers may elect, if such amounts continue to be charged or such suspension is still effective, to replace such Affected Person as a party to this Agreement, provided that no Default shall have occurred and be
continuing at the time of such replacement and, provided, further, that concurrently with such replacement, (i) one or more Eligible Transferees reasonably satisfactory to the Borrowers and the Administrative Agent shall agree, as
of such date, to become a Lender for all purposes under this Agreement and to assume all obligations (including the Commitment) of the Affected Person to be terminated as of such date and to comply with the requirements of Section 8.07
applicable to assignments, (ii) such Affected Person shall have received payment of all amounts then due and owing to such Affected Person hereunder to and including the date 

  

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of termination, including without limitation payments due such Affected Person under Section 2.10 and 2.13, and (iii) such Borrower shall pay to
the Administrative Agent an administrative fee in the amount of $3,500 for each such replacement in the event that the replacing Lender in respect thereof is not a Lender at the time of such replacement. 
 ARTICLE III 
 CONDITIONS TO EFFECTIVENESS AND
LENDING 
 SECTION 3.01 Conditions Precedent to Initial Borrowing. This Agreement (and the amendment and restatement of the Existing
Credit Agreement to be effected hereby) and the obligation of each Lender to make its Advance on the occasion of the initial Borrowing shall be subject to the satisfaction, on or before July 30, 2007, of the following conditions precedent:

 (a) The Administrative Agent shall have received counterparts of this Agreement executed by the parties hereto. 
 (b) The following statements shall be true on the Effective Date and the Administrative Agent shall have received, with a copy for each Lender, a
certificate signed by a duly authorized officer of each Borrower, dated the Effective Date, stating that: 
 (i) the
representations and warranties made by such Borrower and contained in Section 4.01 are true and correct on and as of the Effective Date (it being understood and agreed that any representation or warranty which expressly refers by its terms to a
specified date shall be required to be correct in all material respects only as of such date), and 
 (ii) no Default has
occurred and is continuing on and as of the Effective Date. 
 (c) The Administrative Agent shall have received the following, each dated the
Effective Date, in form and substance satisfactory to the Administrative Agent and (except for the Notes) in sufficient copies for each Lender: 
 (i) If requested by any Lender pursuant to Section 2.01(c), a Note for the account of such Lender, duly executed by each Borrower, in the amount of such Lender’s Commitment as in effect on the Effective
Date. 
 (ii) Certified copies of the certificate of incorporation and by-laws of each Borrower as in effect on the Effective
Date. 
 (iii) Certified copies of the resolutions of the Board of Directors of each of the Borrowers approving this Agreement
and the Notes, and of all documents evidencing other necessary corporate action, third-party and governmental approvals and consents, if any, with respect to this Agreement and the Notes. 
 (iv) A certificate of the Secretary or an Assistant Secretary of each of the Borrowers certifying the names and true signatures of the
officers of each of the Borrowers, respectively, authorized to sign this Agreement and the Notes and the other documents to be delivered hereunder. 
 (v) Evidence that all principal, interest and other amounts owing by the Borrowers under the Existing Credit Agreement to any lender thereunder that is not a Lender hereunder shall have been (or shall simultaneously
be) paid in full and all commitments to extend credit thereunder of any such lender shall have been terminated, in each case in a manner satisfactory to the Administrative Agent. 
  

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 (vi) An opinion of Anne Gill Kelly, Esq., Managing Director, Secretary and Assistant
General Counsel of Ambac Financial, substantially in the form of Exhibit E hereto. 
 (vii) An opinion of Kevin J. Doyle,
Esq., Senior Vice President and General Counsel of Ambac Assurance, substantially in the form of Exhibit F hereto. 
 (viii)
An opinion of DeWitt, Ross & Stevens, S.C., Wisconsin special counsel to Ambac Assurance, substantially in the form of Exhibit G hereto. 
 (ix) An opinion of Baker Botts L.L.P., special New York counsel for the Borrowers, substantially in the form of Exhibit H hereto. 
 (x) An opinion of an external counsel for the Borrowers saying that neither Borrower is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, in form and substance satisfactory to the Administrative Agent. 
 (xi) An opinion of Milbank, Tweed, Hadley & McCloy LLP, special New York counsel to the Administrative Agent, substantially in the form of Exhibit I hereto. 
 (d) The Administrative Agent shall have received payment of all fees, costs and expenses due and payable by the Borrowers on the Effective Date pursuant
to this Agreement. 
 SECTION 3.02 Conditions Precedent to Each Borrowing. The obligation of each Lender to make an Advance on the
occasion of each Borrowing shall be subject to the conditions precedent that (i) the Effective Date shall have occurred and (ii) on the date of such Borrowing the following statements shall be true (and each of the giving of the applicable
Notice of Borrowing and the acceptance by either Borrower of the proceeds of such Borrowing shall constitute a representation and warranty by such Borrower that on the date of such Borrowing such statements are true): 
 (a) the representations and warranties contained in Section 4.01 (other than subparagraphs (f) and (g) and the final sentence of
subparagraph (e) thereof) are true and correct on and as of the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date (it being
understood and agreed that any representation or warranty which expressly refers by its terms to a specified date shall be required to be true and correct in all material respects only as of such date), and 
 (b) no Default has occurred and is continuing or would result from such Borrowing. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 4.01 Representations and Warranties of each Borrower. Each Borrower represents and warrants as follows: 
 (a) Each Borrower and each of its Material Subsidiaries (i) is a limited liability company, corporation or partnership, as the case may be, duly formed or
organized and existing and in good standing under the laws of the jurisdiction of its formation or organization, as the case may be, (ii) is duly registered or qualified to do business as a foreign limited liability company, corporation or
partnership, as the case may be, in each jurisdiction where the nature of its business requires such 

  

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registration or qualification and (iii) holds all requisite governmental licenses, permits and other approvals to own and hold under lease its property
and to conduct its business substantially as conducted by it, except where the failure to be so qualified or hold such licenses, permits and approvals, singly or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 (b) The execution, delivery and performance by each Borrower of each Loan Document to which it is party are within such Borrower’s
corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene such Borrower’s certificate of incorporation or by-laws; (ii) contravene any contractual restriction, law or governmental
regulation or court decree or order binding on or affecting such Borrower; or (iii) result in, or require the creation or imposition of, any Lien on any of such Borrower’s properties. 
 (c) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or other Person is
required for the due execution, delivery or performance by each Borrower of any Loan Document to which such Borrower is a party. Neither Borrower is an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. 
 (d) Each Loan Document to which each Borrower is a party constitutes the legal, valid and binding obligation of such Borrower,
enforceable against such Borrower in accordance with its terms. 
 (e) The audited Consolidated balance sheets of Ambac Financial, Ambac
Assurance and their Subsidiaries as at December 31, 2006, and the related audited Consolidated statements of operations and cash flows of Ambac Financial, Ambac Assurance and their Subsidiaries for the fiscal year ended on such date and the
Consolidated balance sheet of Ambac Financial, Ambac Assurance and their Subsidiaries as at March 31, 2007, and the related Consolidated statements of operations and cash flows of Ambac Financial, Ambac Assurance and their Subsidiaries for the
three months then ended, heretofore furnished to the Administrative Agent, have been prepared in accordance with GAAP consistently applied and fairly present, subject, in the case of such balance sheet as at March 31, 2007, and such statements
of operations and cash flows for the three months then ended, to year-end audit adjustments, the Consolidated financial condition of Ambac Financial, Ambac Assurance and their Subsidiaries as at the respective dates thereof and the results of their
operations for the respective periods then ended. Since December 31, 2006, there has been no Material Adverse Change. 
 (f) There is no
pending or, to the knowledge of each Borrower, threatened litigation, action, proceedings, investigation or labor controversy affecting such Borrower or any Material Subsidiary or any of its respective properties, businesses, assets or revenues
which may reasonably be expected to have a Material Adverse Effect or which purports to affect the legality, validity or enforceability of any Loan Document. 
 (g) Each of the Borrowers and its Material Subsidiaries has filed all tax returns and reports required by law to have been filed by it and has paid all taxes and governmental charges thereby shown to be owing, except
any such taxes or charges which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP (or statutory accounting principles, as appropriate) shall have been set aside on its
books and except where the failure to file said returns or reports or to pay such taxes or charges could not reasonably be expected to have a Material Adverse Effect. 
 (h) During the twelve-consecutive-month period prior to the date of the execution and delivery of this Agreement and prior to the date of any Borrowing hereunder, except as disclosed in Schedule 4.01(h), no steps have
been taken to terminate any Pension Plan, and no contribution failure has occurred with respect to any Pension Plan sufficient to give rise to a Lien under section 302(f) of ERISA. No condition exists or event or transaction has occurred with
respect to any Pension Plan which might 

  

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result in the incurrence by either Borrower or any member of the Controlled Group of any material liability, fine or penalty other than a non-defaulted
obligation to make a contribution under Section 302 of ERISA. Except as disclosed in Schedule 4.01(h), neither Borrower nor any member of the Controlled Group have any contingent liability with respect to any post-retirement benefit under a
Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I of ERISA. 
 (i) After applying the proceeds of
each Advance, not more than 25% of the value of the assets of either Borrower that are subject to Section 5.02 are margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System). 
 (j) The Debt of each Borrower under this Agreement and, to the extent applicable, the Notes issued by such Borrower, will rank at least pari
passu in priority of payment with all other unsecured and unsubordinated Debt of such Borrower. 
 (k) Each Borrower is and, after
giving effect to each Advance and to the use of proceeds thereof, will be Solvent. 
 ARTICLE V 
 COVENANTS OF THE BORROWERS 
 SECTION 5.01
Affirmative Covenants. So long as any principal of or interest on any Advance or any other amount payable under this Agreement shall remain unpaid or any Lender shall have any Commitment hereunder, each Borrower will: 
 (a) Compliance with Statutes, Etc. Comply, and cause each of its Material Subsidiaries to comply, in all material respects with all applicable
laws, statutes, regulations and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, including, without limitation, ERISA and environmental laws in respect of the conduct of its business and the
ownership of its property, except where noncompliance therewith could not reasonably be expected to have, in the aggregate, a Material Adverse Effect. 
 (b) Use of Proceeds. Apply the proceeds of each Advance for working capital and general corporate or company purposes of such Borrower and its Subsidiaries. 
 (c) Maintenance of Insurance. Maintain, and cause each of its Material Subsidiaries to maintain, insurance with responsible and reputable
insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which such Borrower or such Material Subsidiary
operates; provided, however, that each Borrower and its Material Subsidiaries may self-insure to the same extent as other companies engaged in similar businesses and owning similar properties in the same general areas in which such
Borrower or such Material Subsidiary operates and to the extent consistent with prudent business practice. 
 (d) Preservation of
Corporate Existence, Etc. Preserve and maintain, and cause each of its Material Subsidiaries to preserve and maintain, its legal existence (except as otherwise permitted by Section 5.02(b)) and its material rights, franchises and licenses;
provided, however, that nothing in this Section 5.01(d) shall prevent the withdrawal, lapse or termination by either Borrower or any of its Material Subsidiaries of any right, franchise or license where such withdrawal, lapse or
termination could not reasonably be expected to have a Material Adverse Effect. 
 (e) Keeping of Books; Visitation Rights. (i) Keep,
and cause each of its Material Subsidiaries to keep, books of record and account which accurately reflect all of its business affairs and transactions; and (ii) permit, and cause each of its Material Subsidiaries to permit, officers and designated

  

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representatives of the Administrative Agent and any Lender to visit and inspect, under guidance of officers of either Borrower or such Material Subsidiary,
any of the properties of such Borrower or such Material Subsidiary, and to examine the books of record and account of such Borrower or such Material Subsidiary and discuss the affairs, finances and accounts of such Borrower or such Material
Subsidiary with, and be advised as to the same by, its and their officers and its independent public accountants (and each Borrower hereby authorizes such independent public accountant to discuss each Borrower’s financial matters with the
Administrative Agent or its representatives), all at such reasonable times and intervals (and, prior to the occurrence of any Default, with reasonable prior notice given to the applicable Borrower) and to such reasonable extent as any Lender may
reasonably request. 
 (f) Reporting Requirements. Furnish to the Administrative Agent: 
 (i) Quarterly Financial Statements of Ambac Financial. As soon as they are available, but in any event within 60 days after the end
of each of the first three quarterly accounting periods in each fiscal year of Ambac Financial, the Consolidated balance sheet of Ambac Financial and its Consolidated Subsidiaries as at the end of such quarterly period and the related Consolidated
statements of operations and cash flows for such quarterly period and for the elapsed portion of the fiscal year ended with the last day of such quarterly period all of which shall be certified by the chief financial officer or treasurer of Ambac
Financial, subject to year-end audit adjustments. 
 (ii) Annual Financial Statements of Ambac Financial. As soon as
they are available, but in any event within 120 days after the end of each fiscal year of Ambac Financial, a copy of the annual report for such fiscal year for Ambac Financial and its Consolidated Subsidiaries, including therein the Consolidated
balance sheet of Ambac Financial and its Consolidated Subsidiaries as at the end of such fiscal year and the related Consolidated statements of operations, stockholders’ equity and of cash flow for such fiscal year, in each case, certified, in
the case of the Consolidated financial statements, by independent certified public accountants of recognized national standing reasonably acceptable to the Administrative Agent. 
 (iii) Quarterly Statutory Statements of Ambac Assurance. As soon as they are available, but in any event within 60 days after the
end of each of the first three quarterly accounting periods in each fiscal year of Ambac Assurance, the quarterly statement of Ambac Assurance for such quarter, as filed with the Office of Commissioner of Insurance of the State of Wisconsin,
certified as to fairness of presentation, generally accepted statutory accounting principles and consistency by the Responsible Officer of Ambac Assurance as at the end of such quarterly period and the related Consolidated statements of operations
and cash flows for such quarterly period and for the elapsed portion of the fiscal year ended with the last day of such quarterly period, all of which shall be certified by the chief financial officer or treasurer of Ambac Assurance, subject to
year-end audit adjustments. 
 (iv) Annual Statutory Statements of Ambac Assurance. As soon as they are available, but
in any event within 120 days after the end of each fiscal year of Ambac Assurance, a copy of the annual statement for such fiscal year for Ambac Assurance as filed with the Office of Commissioner of Insurance of the State of Wisconsin, certified as
to fairness of presentation, generally accepted statutory accounting principles and consistency by the Responsible Officer of Ambac Assurance. 
 (v) Occurrence of Default. As soon as possible and in any event within ten days after a Responsible Officer of either Borrower shall obtain actual knowledge of the occurrence of a Default continuing on the date
of such statement, a statement of the chief financial officer of such Borrower setting forth details of such Default and the action that such Borrower has taken and proposes to take with respect thereto. 
  

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 (vi) Compliance Certificate. Concurrently with the delivery of the financial
information pursuant to clauses (i) and (ii) above, a Compliance Certificate, executed by a Responsible Officer of Ambac Financial, showing compliance as of the last day of the most recently completed fiscal quarter with the financial
covenants set forth in Section 5.03 and stating that no Default has occurred and is continuing (or, if a Default has occurred, specifying the details of such Default and the action that Ambac Financial has taken or proposes to take with respect
thereto). 
 (vii) Notice of Litigation. As soon as possible and in any event within 5 Business Days after a
Responsible Officer of either Borrower obtains knowledge of the filing or commencement of any material litigation, action, proceeding or labor controversy with respect to such Borrower or any of its Material Subsidiaries, notice thereof and, to the
extent the Administrative Agent requests, copies of all documentation relating thereto. 
 (viii) ERISA. Immediately
upon becoming aware of (i) the institution of any steps by any Person to terminate any Pension Plan, (ii) the failure to make a required contribution to any Pension Plan if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA, (iii) the taking of any action with respect to a Pension Plan which could result in the requirement that either Borrower furnish a bond or other security to the Pension Benefit Guaranty Corporation (or any Person
succeeding to any or all of its functions under ERISA) or such Pension Plan, or (iv) the occurrence of any event with respect to any Pension Plan which could result in the incurrence by either Borrower of any material liability, fine or
penalty, notice thereof and copies of all documentation relating thereto. 
 (ix) Other Information. Such other
financial and other information as any Lender through the Administrative Agent may from time to time reasonably request. 
 (g) Payment of
Taxes, Etc. Pay and discharge, and cause each of its Material Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property and
(ii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided, however, that neither Borrower nor any of its Material Subsidiaries shall be required to pay or discharge any such tax, assessment,
charge or claim that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its
other creditors. 
 (h) Maintenance of Properties. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve,
all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted, except where failure to do so could not reasonably be expected to have a Material Adverse Effect.

 SECTION 5.02 Negative Covenants. So long as any principal of or interest on any Advance or any other amount payable under this
Agreement shall remain unpaid or any Lender shall have any Commitment hereunder, each Borrower agrees that: 
 (a)
Liens. It will not, and will not permit any of its Material Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of its property, revenues or assets, whether now owned or hereafter acquired, to secure Debt of such
Borrower or such Material Subsidiary except: (i) Liens granted prior to the Effective Date securing Debt existing as of the Effective 

  

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Date which Liens are identified in Schedule 5.02(a); (ii) any Lien on any asset granted to secure payment of Debt incurred or assumed for the purpose of
financing the acquisition of such asset, provided that such Lien attaches to such asset no later than the ninetieth day after such acquisition; (iii) any Lien existing on any asset prior to the acquisition thereof by such Borrower or any
Material Subsidiary thereof and not created in contemplation of such acquisition; (iv) any Lien arising out of the refinancing, extension, renewal or refunding of any Debt secured by any Lien permitted in clause (i), (ii) or (iii),
provided that such Debt is not increased and is not secured by any additional assets; (v) Permitted Liens; (vi) any Lien consisting of a pledge by Ambac Assurance of its subrogation rights to secure Debt for borrowed money, in the
aggregate amount outstanding not to exceed $50,000,000 at any time; and (vii) other Liens where the aggregate principal amount of Debt secured thereby at any time outstanding does not exceed $50,000,000 in the aggregate. 
 (b) Mergers, Etc. It will not, and will not permit any of its Material Subsidiaries to, liquidate or dissolve, consolidate with, or
merge into or with, any other Person, except: (i) any such Material Subsidiary (other than Ambac Assurance) may liquidate or dissolve voluntarily into, and may consolidate and merge with and into, either Borrower or any other Material
Subsidiary of either Borrower; and (ii) so long as no Default has occurred and is continuing or would occur after giving effect thereto, either Borrower may consolidate or merge with and into any other Person organized under the laws of a State
of the United States if (A) such Borrower is the surviving entity and such Borrower and its Subsidiaries, as a whole, will continue to have the financial guaranty business as one of its principal businesses; or (B) all of the following are
satisfied: (I) such other Person and its Subsidiaries, as a whole, shall have the financial guaranty business as one of its principal businesses, (II) such Person shall have assumed all the obligations of such Borrower pursuant to an instrument
in form and substance reasonably satisfactory to the Required Lenders and shall have delivered such opinions of counsel with respect thereto as the Administrative Agent may reasonably request, (III) both immediately prior to and after giving effect
to such consolidation or merger, the ratings on such Person’s senior unsecured debt and (if such Person is an insurer at such time) claims-paying ability shall be at least as high as the applicable Borrower immediately prior to such
consolidation or merger, and (IV) such Person meets each Lender’s internal policies with respect to extensions of credit of the type contemplated hereunder. 
 (c) Asset Dispositions. It will not, and will not permit any of its Material Subsidiaries to, sell, transfer, lease, contribute or
otherwise convey, or grant options, warrants or other rights with respect to, all or any substantial part of its property, revenues or assets (including accounts receivable and capital stock of any of its Material Subsidiaries) to any Person (any of
the foregoing, an “Asset Disposition”); provided, however, that each Borrower and its Material Subsidiaries may consummate (i) Asset Dispositions in the ordinary course of their business and (ii) any Asset
Disposition, to the extent that immediately after giving effect to such Asset Disposition, the aggregate fair market value (determined at the time of the applicable transactions) of all assets subject to Asset Dispositions (other than those
described in clause (i) consummated by the Borrowers and their respective Subsidiaries in such fiscal year) and consummated in such fiscal year, would not exceed 25% of the stockholders’ equity of Ambac Financial and its Subsidiaries, on a
Consolidated basis (excluding unrealized gains on investments and unrealized losses on investments), at the end of the next preceding fiscal year. 
 SECTION 5.03 Financial Covenants. 
 So long as any principal of or interest on any Advance or any other
amount payable under this Agreement shall remain unpaid or any Lender shall have any Commitment hereunder, Ambac Financial will: 
 (a) Minimum Net Assets. Maintain at all times an excess of Consolidated total assets over Consolidated total liabilities (in each case excluding the assets and liabilities of Aleutian and Juneau and of Persons which are Consolidated
or subject to be Consolidated according to FASB Interpretation 46(R) (Consolidation of Variable Interest Entities)) of at least $2,900,000,000 plus (i) an amount equal to 15% of Consolidated net income (if positive) for each fiscal year
of Ambac Financial commencing with fiscal year 2007 plus (ii) an amount equal to 15% of the Net Proceeds of any Equity Issuance made during such fiscal year. 
  

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 (b) Leverage Ratio. Maintain, as at the last day of each fiscal quarter of Ambac
Financial, a Leverage Ratio of not greater than 0.3 to 1.0. 
 ARTICLE VI 
 EVENTS OF DEFAULT 
 SECTION 6.01 Events of Default. If any of the following
events (“Events of Default”) shall occur and be continuing: 
 (a) Either Borrower shall fail to pay any principal of any
Advance made to such Borrower when the same becomes due and payable; or either Borrower shall fail to pay any interest on any Advance made to such Borrower or make any payment of fees or other amounts (other than principal) payable by such Borrower
under this Agreement or any Note within five Business Days after the same becomes due and payable by such Borrower; or 
 (b) Any
representation or warranty made by either Borrower herein or which is contained in any certificate furnished by such Borrower at any time under or in connection with this Agreement shall prove to have been incorrect in any material respect when made
or deemed made; or 
 (c) Either Borrower shall fail to perform or observe any term, covenant or agreement contained in
Section 5.01(f)(v), 5.02(b), 5.02(c) or 5.03 on its part to be performed or observed; or either Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement on its part to be performed or observed
if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to such Borrower by the Administrative Agent or any Lender; or 
 (d) Either Borrower or any of its Material Subsidiaries shall (i) fail to pay any principal of or premium or interest on any Debt that is outstanding in a principal or notional amount of at least $100,000,000 in
the aggregate (but excluding Debt outstanding hereunder) of such Borrower or such Material Subsidiary, as the case may be, when the same becomes due and payable, and such failure shall continue after the applicable grace period, if any, specified in
the agreement or instrument relating to such Debt; or (ii) any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt 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 Debt; or (iii) any such Debt shall be declared to be due and payable, or required to be prepaid
or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof;
or 
 (e) Either Borrower or any of its Material Subsidiaries shall generally not pay its debts as such debts become due, or shall admit in
writing its inability or unwillingness to pay its debts generally, or shall make a general assignment for the benefit of creditors; or 
 (f)
Any proceeding shall be instituted by or against either Borrower or any of its Material Subsidiaries seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, 

  

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reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any Federal, State or foreign law relating to
bankruptcy, insolvency, receivership or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including,
without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or either Borrower or any of its Material
Subsidiaries shall take any corporate action to authorize any of the actions set forth above in subsection (e) or in this subsection (f); or 
 (g) Any judgment or order for the payment of money individually or in the aggregate in excess of $100,000,000 at any one time in effect, shall be rendered against either Borrower or any of its Material Subsidiaries 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; provided, however, that the amount of any such judgment or order shall not be considered in determining whether a Default exists under this Section 6.01(g) if and to the extent that
(i) the amount of such judgment or order is covered by a valid and binding policy of insurance between the defendant and the insurer covering payment thereof and (ii) such insurer, which shall be rated at least “A” by A.M. Best
Company, has been notified of, and has not disputed the claim made for payment of, the amount of such judgment or order; or 
 (h) Any of the
following events shall occur with respect to any Pension Plan: (i) the institution of any steps by either Borrower, any member of its Controlled Group or any other Person to terminate a Pension Plan if, as a result of such termination, such
Borrower or any such member could be required to make a contribution to such Pension Plan, or could reasonably expect to incur a liability or obligation to such Pension Plan, in excess of $20,000,000; or (ii) a contribution failure occurs with
respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA; or 
 (i) A Change of Control shall occur;

 then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the
Borrowers, declare the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrowers,
declare the Advances and the Notes, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances and the Notes, all such interest and all such amounts shall become and be forthwith
due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Borrower; provided, however, that in the case of any Event of Default described in subsection
(f) above, (A) the obligation of each Lender to make Advances shall automatically be terminated and (B) the Advances and the Notes, all such interest and all such amounts shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by each Borrower. 
 ARTICLE VII 

THE ADMINISTRATIVE AGENT, ETC. 
 SECTION
7.01 Authorization and Action. (a) Each Lender hereby appoints Citibank as the Administrative Agent under and for the purposes of each Loan Document. Each Lender authorizes the Administrative Agent to take such action as Administrative
Agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to the Administrative Agent 

  

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by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of the Advances and the Notes), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders or all the Lenders if applicable, and such instructions shall be binding upon all Lenders and all holders of the Advances and
the Notes; provided, however, that the Administrative Agent shall not be required to take any action that exposes the Administrative Agent to personal liability or that is contrary to this Agreement or applicable law. The
Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by either Borrower pursuant to the terms of this Agreement. 
 (b) Anything in this Agreement to the contrary notwithstanding, none of the Persons identified on the cover page hereof as “Co-Syndication Agents”, “Co-Documentation Agents”, “Sole Lead
Arranger” or “Sole Book Runner” shall have, in their capacities as such, any responsibilities or liabilities under or in connection with this Agreement. 
 SECTION 7.02 The Administrative Agent’s Reliance, Etc. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable to any Lender for any action taken or omitted
to be taken by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing: (i) the Administrative Agent may treat the payee of
any Note as the holder thereof until the Administrative Agent receives and accepts an Assignment and Acceptance entered into by the Lender that is the payee of such Note, as assignor, and an Eligible Assignee, as assignee, as provided in
Section 8.07; (ii) the Administrative Agent may consult with legal counsel (including counsel for the Borrowers), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (iii) the Administrative Agent makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements,
warranties or representations (whether written or oral) made in or in connection with this Agreement; (iv) the Administrative Agent shall have no duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants
or conditions of this Agreement on the part of the Borrowers or to inspect the property (including the books and records) of the Borrowers; (v) the Administrative Agent shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, this Agreement or any other instrument or document furnished pursuant hereto; and (vi) the Administrative Agent shall not incur any liability under or in respect of this Agreement
by acting upon any notice, consent, certificate or other instrument or writing (which may be by telecopier) believed by it to be genuine and signed or sent by the proper party or parties. 
 SECTION 7.03 Administrative Agent and Affiliates. With respect to its Commitment, the Advances made by it and the Note or Notes issued to it, the
Administrative Agent shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the Administrative Agent; and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated, include the Administrative Agent in its individual capacity. The Administrative Agent and its Affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept investment banking
engagements from and generally engage in any kind of business with, the Borrowers, any of their Subsidiaries and any Person who may do business with or own securities of either Borrower or any such Subsidiaries, all as if it were not acting as the
Administrative Agent and without any duty to account therefor to the Lenders. 
 SECTION 7.04 Lender Credit Decision. Each Lender
acknowledges that it has, independently and without reliance upon the Administrative Agent or any Lender or any of the Persons identified on the cover page hereof as “Co-Syndication Agents”, “Sole Lead Arranger” or “Sole
Book Runner”, and based on the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this 

  

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Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any such Person 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 this Agreement. 
 SECTION 7.05 Indemnification. The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrowers), ratably according to the respective principal amounts of the Advances and Notes then held by each
of them (or if no Notes are at the time outstanding) ratably according to the respective amounts of their Commitments), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Administrative Agent in any way arising out of this Agreement or any action taken or omitted by the Administrative Agent under this Agreement
(collectively, the “Indemnified Costs”), provided that no Lender shall be liable for any portion of the Indemnified Costs resulting from the Administrative Agent’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket fees and expenses (including counsel fees and expenses) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, to the extent that the Administrative Agent is not reimbursed for such fees and expenses by the Borrowers. In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05 applies
whether any such investigation, litigation or proceeding is brought by the Administrative Agent, any Lender or a third party. 
 SECTION 7.06
Successor. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrowers and may be removed at any time with or without cause by the Required Lenders. Upon any such resignation or removal,
the Required Lenders shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the
retiring Administrative Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent, which shall be a commercial bank organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement. After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Article VII shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. 
 ARTICLE
VIII 
 MISCELLANEOUS 
 SECTION
8.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Notes, nor consent to any departure by either Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the
Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing and
signed by all the Lenders, do any of the following: (a) waive any of the conditions specified in Section 3.01, (b) except as provided in Section 2.16, increase or extend the Commitments of the Lenders or subject the Lenders to
any additional obligations, (c) reduce the principal of, or interest on, the Advances or the Notes or any fees payable under Section 2.03, or any other amounts payable hereunder, (d) postpone any date fixed for 

  

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any payment of principal of, or interest on, the Advances or the Notes or any fees or other amounts payable hereunder, (e) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Advances or the Notes, or the number of Lenders, that shall be required for the Lenders or any of them to take any action hereunder or (f) amend this Section 8.01 or the
definition of “Required Lenders”; and provided, further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action,
affect the rights or duties of the Administrative Agent under this Agreement or any Note. 
 SECTION 8.02 Notices, Etc. (a) All
notices and other communications provided for hereunder shall be in writing (including telecopier) and mailed, telecopied or delivered, if to either Borrower, at its address at One State Street Plaza, New York, New York, 10004, Attention: Treasurer
(with copy to General Counsel at same address); if to any Lender, at its address (or telecopier number) set forth in its Administrative Questionnaire; and if to the Administrative Agent, at its address at Citibank, N.A., 2 Penns Way, Suite 110,
New Castle, Delaware 19720, Attention: Mr. Nick Rozell (fax: 212-994-0961); or, as to the Borrowers or the Administrative Agent, at such other address as shall be designated by such party in a written notice to the other parties and, as to each
other party, at such other address as shall be designated by such party in a written notice to the Borrowers and the Administrative Agent. All such notices and communications shall, when mailed or telecopied, be effective when deposited in the mails
or telecopied, respectively, except that notices and communications to the Administrative Agent pursuant to Article II, III or VII shall not be effective until received by the Administrative Agent. Delivery by telecopier of an executed counterpart
of any amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 
 (b) Each Borrower hereby agrees that it will provide to the Administrative Agent all information, documents and other materials that it is obligated to
furnish to the Administrative Agent pursuant to this Agreement, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such
communication that (i) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (ii) provides notice of any Default under this Agreement or (iii) is required to be
delivered to satisfy any condition precedent to the occurrence of the Effective Date (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an
electronic/soft medium in a format acceptable to the Administrative Agent to oploanswebadmin@citigroup.com. In addition, each Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner specified in this
Agreement but only to the extent requested by the Administrative Agent. 
 (c) Each Borrower further agrees that the Administrative Agent may
make the Communications available to the Lenders by posting the Communications on Intralinks or a substantially similar electronic transmission system (the “Platform”). THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT
PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, THE
“AGENT PARTIES”) HAVE ANY LIABILITY TO EITHER BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR
EXPENSES (WHETHER IN TORT, 

  

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CONTRACT OR OTHERWISE) ARISING OUT OF SUCH BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO
THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 
 (d) The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall
constitute effective delivery of the Communications to the Administrative Agent for purposes of this Agreement. Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the
Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to provide to the Administrative Agent in writing (including by electronic communication), promptly
after the date of this Agreement, an e-mail address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address. 
 (e) Nothing herein shall prejudice the right of either Borrower, the Administrative Agent or any Lender to give any notice or other communication
pursuant to this Agreement in any other manner specified in this Agreement. 
 SECTION 8.03 No Waiver; Remedies. No failure on the
part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 SECTION 8.04 Costs and Expenses. (a) The Borrowers jointly and severally agree to pay in Dollars on demand all out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement, the Notes and the other documents to be delivered hereunder, including the reasonable fees and expenses of counsel for the Administrative Agent with respect thereto and with respect to
advising the Administrative Agent as to its rights and responsibilities under this Agreement. The Borrowers further jointly and severally agree to pay in Dollars on demand all out-of-pocket costs and expenses of the Administrative Agent and the
Lenders, if any, in connection with the enforcement of this Agreement, the Notes and the other documents to be delivered hereunder, limited, in the case of counsel fees and expenses, to the reasonable fees and expenses of one common counsel for the
Administrative Agent and the Lenders. 
 (b) The Borrowers jointly and severally agree to indemnify and hold harmless the Administrative
Agent and each Lender and each of their Affiliates and their officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or relating to the Notes, this Agreement, the transactions
contemplated hereby or the actual or proposed use of the proceeds of the Advances, whether or not such investigation, litigation or proceeding is brought by a Borrower, any of its shareholders or creditors, an Indemnified Party or any other Person,
or an Indemnified Party is otherwise, a party thereto, except with respect to any Indemnified Party to the extent such claim, damage, loss, liability or expense results from such Indemnified Party’s gross negligence or willful misconduct as
determined in a final non-appealable judgment by a court of competent jurisdiction. In no event shall any Indemnified Party have any liability for any special, indirect, consequential or punitive damages in connection with any matter relating
hereto. 
  

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 (c) If any payment of principal of, or Conversion of, any Eurocurrency Rate Advance is made by either
Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.07(c), 2.09 or 2.11, prepayment, acceleration of the maturity of the
Advances or the Notes pursuant to Section 6.01 or for any other reason, or if such Borrower fails to make a prepayment of any Eurocurrency Rate Advance under Section 2.09 in accordance with a notice of prepayment given under such Section,
such Borrower shall, upon written demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional
losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion or such failure to prepay, including any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. 
 (d) Without prejudice to the survival of
any other agreement of each Borrower hereunder, the agreements and obligations of each Borrower contained in Sections 2.10 and 2.13 and this Section 8.04 shall survive the payment in full of principal and interest payable hereunder and under
the Notes. 
 SECTION 8.05 Right of Set-off. Upon the occurrence and during the continuance of any Default under Section 6.01(f)
or any Event of Default and the making of the request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Advances and Notes due and payable pursuant to the provisions of
Section 6.01, or any actual acceleration of the maturity thereof pursuant to the proviso at the end of Section 6.01, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of either Borrower against any and all of the
obligations of such Borrower now or hereafter existing under this Agreement and the Note held by such Lender, whether or not such Lender shall have made any demand under this Agreement or such Note and although such obligations may be unmatured.
Each Lender agrees promptly to notify such Borrower after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender under this
Section 8.05 are in addition to other rights and remedies (including other rights of setoff under applicable law or otherwise) which such Lender may have. 
 SECTION 8.06 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Borrowers, the Administrative Agent and each Lender and their respective successors and assigns, except that the
Borrowers shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 
 SECTION 8.07 Assignments and Participations. (a) Each Lender may, if approved by the Borrowers and the Administrative Agent (which approvals may not be unreasonably withheld or delayed and which approvals of the Borrowers shall
not be required if an Event of Default has occurred and is continuing), and, if demanded by the Borrowers in the event that at any time any Lender shall cease to have the Required Lender Rating, upon at least 5 Business Days’ notice to such
Lender and the Administrative Agent, will assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, the Advances owing to it and the Note
held by it); provided, however, that (i) each such assignment shall be of a constant, and not a varying, percentage of all rights and obligations under this Agreement, (ii) except in the case of an assignment to a Person
that, immediately prior to such assignment, was a Lender or an assignment of all of a Lender’s rights and obligations under this Agreement, the amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof, (iii) each such assignment shall be to an Eligible
Assignee, (iv) the parties to each such assignment shall execute and deliver to the 

  

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Administrative Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together with any Note subject to such assignment and a
processing and recordation fee of $3,500 and (v) the assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (A) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have
the rights and obligations of a Lender hereunder and (B) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto). Notwithstanding the foregoing, each Lender will have the right, upon notice to the Administrative Agent and with the approval of the Borrowers (which approval may not be unreasonably withheld or delayed and which approval shall not be
required if an Event of Default has occurred and is continuing), to assign all or part of its rights and obligations under any Loan Document to any of its Affiliates. 
 (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of either Borrower or the performance or observance by either Borrower of any of its obligations under this Agreement or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the Administrative Agent, such assigning Lender or any other Lender 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 this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints
and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender.

 (c) The Administrative Agent shall maintain at its address referred to in Section 8.02 a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances owing to, each Lender from time to time (the “Register”). The
entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for inspection by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
 (d) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in the Register and (iii) give prompt notice thereof to each Borrower. Within five Business Days after its receipt of such notice, each Borrower, at its 

  

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own expense, shall execute and deliver to the Administrative Agent in exchange for the surrendered Note a new Note to the order of such Eligible Assignee in
an amount equal to the Commitment assumed by it pursuant to such Assignment and Acceptance and, if the assigning Lender has retained a Commitment hereunder, a new Note to the order of the assigning Lender in an amount equal to the Commitment
retained by it hereunder. Such new Note or Notes shall be in an aggregate principal amount equal to the aggregate principal amount of such surrendered Note or Notes, shall be dated the effective date of such Assignment and Acceptance and shall
otherwise be in substantially the form of Exhibit A hereto. 
 (e) Each Lender may sell participations to one or more banks or other entities
(other than the Borrowers or any of their Affiliates) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, the Advances owing to it and the Note or Notes
held by it); provided, however, that (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to the Borrowers hereunder) shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrowers, the Administrative Agent and the
other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no participant under any such participation shall have any right to approve any
amendment or waiver of any provision of this Agreement or any Note, or any consent to any departure by either Borrower therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the Notes or
any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or postpone any date fixed for any payment of principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case
to the extent subject to such participation. 
 (f) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement (including, without limitation, the Advances owing to it and any Note held by it) in favor of any Federal Reserve Bank in accordance with Regulation A of the
Board of Governors of the Federal Reserve System. 
 SECTION 8.08 Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective managers, administrators, trustees, partners, directors,
officers, employees, agents, advisors and other representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 8.08, to (i) any
assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement, (ii) any actual or prospective party (or its managers, administrators, trustees, partners, directors,
officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to either Borrower and its obligations, this Agreement or payments hereunder,
(iii) any rating agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) with the consent of the Borrowers or (h) to the extent such Information (x) becomes publicly available other than as a result of a
breach of this Section 8.08 or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrowers. For purposes of this Section 8.08,
“Information” means all information received from either Borrower or any of its Subsidiaries relating to such Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is
available to the Administrative Agent or any Lender 

  

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on a nonconfidential basis prior to disclosure by either Borrower or any of its Subsidiaries, provided that, in the case of information received from either
Borrower or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 8.08 shall
be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
 SECTION 8.09 Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the law of the State of New York.

 SECTION 8.10 Execution in Counterparts. 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 taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 8.11 WAIVER OF JURY
TRIAL. EACH OF THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 SECTION 8.12 Judgment Currency.
This is an international loan transaction in which the specification of Dollars or an Alternate Currency, as the case may be (the “Specified Currency”), and payment of Dollars in New York City and of an Alternate Currency in the
Principal Financial Center for such Alternate Currency, as the case may be (the “Specified Place”), is of the essence, and the Specified Currency shall be the currency of account in all events relating to Advances denominated in the
Specified Currency. The payment obligations of the Borrowers under this Agreement and the Notes shall not be discharged by an amount paid in another currency or in another place, whether pursuant to a judgment or otherwise, to the extent that the
amount so paid on conversion to the Specified Currency and transfer to the Specified Place under normal banking procedures does not yield the amount of the Specified Currency at the Specified Place due hereunder. If for the purpose of obtaining
judgment in any court it is necessary to convert a sum due hereunder in a Specified Currency into another currency (the “Second Currency”), the rate of exchange which shall be applied shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase the Specified Currency with the Second Currency on the Business Day next preceding that on which such judgment is rendered. The obligation of each Borrower in respect of any such sum due
from it to the Administrative Agent or any Lender hereunder (an “Entitled Person”) shall, notwithstanding the rate of exchange actually applied in rendering such judgment, be discharged only to the extent that on the Business Day
following receipt by such Entitled Person of any sum adjudged to be due hereunder or under the Notes in the Second Currency such Entitled Person may in accordance with normal banking procedures purchase and transfer to the Specified Place the
Specified Currency with the amount of the Second Currency so adjudged to be due; and each Borrower hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify such Entitled Person against, and to pay such Entitled
Person on demand in the Specified Currency, any difference between the sum originally due to such Entitled Person in the Specified Currency and the amount of the Specified Currency so purchased and transferred. 
 SECTION 8.13 European Monetary Union. 
 (a) Payments by the Administrative Agent Generally. With respect to the payment of any amount denominated in Euro, the Administrative Agent shall not be liable to any of the Borrowers or any of the Lenders in
any way whatsoever for any delay, or the consequences of any delay, in the crediting to any account of any amount required by this Agreement to be paid by 

  

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the Administrative Agent if the Administrative Agent shall have taken all relevant steps to achieve, on the date required by this Agreement, the payment of
such amount in immediately available, freely transferable, cleared funds (in Euro) to the account of any Borrower or any Lender in the Principal Financial Center in the Participating Member State which such Borrower or such Lender, as the case may
be, shall have specified for such purpose. For the purposes of this paragraph, “all relevant steps” means all such steps as may be prescribed from time to time by the regulations or operating procedures of such clearing or
settlement system as the Administrative Agent may from time to time determine for the purpose of clearing or settling payments in Euro. 
 (b) Other Consequential Changes. Without prejudice to the respective liabilities of the Borrowers to the Lenders and the Lenders to the Borrowers under or pursuant to this Agreement, except as expressly
provided in this Section, each provision of this Agreement shall be subject to such reasonable changes of construction as the Administrative Agent may from time to time reasonably specify to be necessary or appropriate to reflect the introduction of
or changeover to Euros in Participating Member States. 
 SECTION 8.14 Jurisdiction, Etc. Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to
this Agreement or the Notes in the courts of any jurisdiction. 
 SECTION 8.15 Nature of Obligations. The obligations of the Borrowers
under the Loan Documents are several obligations, and are not joint and several obligations, of the respective Borrowers unless otherwise expressly provided herein. 
 SECTION 8.16 USA PATRIOT Act. Each Lender hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the names and addresses of the Borrowers and other information that will allow such Lender to identify the Borrowers
in accordance with the Act. 
  

 42 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

			
	AMBAC FINANCIAL GROUP, INC.
		
	By	 	 /s/ David Trick

	Name:	 	David Trick
	Title:	 	Managing Director & Treasurer
	
	AMBAC ASSURANCE CORPORATION
		
	By	 	 /s/ David Trick

	Name:	 	David Trick
	Title:	 	Managing Director & Treasurer
	
	CITIBANK, N.A., as Administrative Agent
		
	By	 	 /s/ Shannon Sweeney

	Name:	 	Shannon Sweeney
	Title:	 	Vice President

			
	LENDERS
	
	CITIBANK, N.A.
		
	By	 	 /s/ Shannon Sweeney

	Name:	 	Shannon Sweeney
	Title:	 	Vice President
	
	THE BANK OF NEW YORK
		
	By	 	 /s/ Lizanne T. Eberle

	Name:	 	Lizanne T. Eberle
	Title:	 	Managing Director
	
	KEYBANK, NATIONAL ASSOCIATION
		
	By	 	 /s/ Mary K. Young

	Name:	 	Mary K. Young
	Title:	 	Senior Vice President
	
	HSBC BANK USA, N.A.
		
	By	 	 /s/ Dennis Cogan

	Name:	 	Dennis Cogan
	Title:	 	Managing Director
	
	WACHOVIA BANK, NATIONAL ASSOCIATION
		
	By	 	 /s/ Joan Anderson

	Name:	 	Joan Anderson
	Title:	 	Director
	
	MERRILL LYNCH BANK USA
		
	By	 	 /s/ Derek Befus

	Name:	 	Derek Befus
	Title:	 	Vice President

 SCHEDULE I 
 COMMITMENTS 
  

				
	 LENDER
	  	COMMITMENT
	 Citibank, N.A.
	  	$	80,000,000
	 The Bank of New York
	  	$	67,500,000
	 KeyBank, National Association
	  	$	67,500,000
	 HSBC Bank USA, N.A.
	  	$	67,500,000
	 Wachovia Bank, National Association
	  	$	67,500,000
	 Merrill Lynch Bank USA
	  	$	50,000,000
	 TOTAL COMMITMENTS
	  	$	400,000,000

 SCHEDULE II 
 ADMINISTRATIVE AGENT’S ACCOUNT(S) 
 Eurocurrency Payment Details: 
 Citibank N.A. 
 London EC14 9GE 
 Swift Code CITIGB2L 
 Favour Citibank Int’l PLC, London, 
 A/C:    944823 
 Attn: UK Loans Dept. 
 Ref: (Borrower Name) 
 GBP Payment Details: 
 Citibank N.A., 11 Old Jewry, 
 London EC2R 8DU 
 Sort Code 18.50.04 
 Favour Citibank Int’l PLC 
 A/C:    558397 
 Attn: UK Loans Dept 
 Ref: (Borrower Name) 
 USD Payment Details: 
 Citibank, N.A., New York 
 2 Penns Way, Suite 110 
 New Castle, DE 19720 
 ABA 021000089 
 Favor Medium Term Finance 
 A/C 36852248 
 Attn: Nick Rozell 
 Ref: (Borrower Name) 

 SCHEDULE III 
 MCR Costs Formulae 
  

	1.	The MCR Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period (or as soon as possible thereafter) the Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Lender, in accordance with the paragraphs set out below. The MCR Cost rate will be calculated by the Administrative Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each such Lender in the relevant Advance) and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Lender lending from an Applicable Lending Office in a Participating Member State will be the percentage notified by that Lender to the
Administrative Agent. This percentage will be certified by that Lender in its notice to the Administrative Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from
that Applicable Lending Office) of complying with the minimum reserve requirements of the European Central Bank in respect of Advances made from that Applicable Lending Office. 

  

	4.	The Additional Cost Rate for any Lender lending from an Applicable Lending Office in the United Kingdom will be calculated by the Administrative Agent as follows:

  

	 	(a)	in relation to an Advance denominated in Sterling: 

  

	
	 AB + C(B – D) +E × 0.01

	             100 ( A +
C)                per cent. per annum

  

	 	(b)	in relation to an Advance denominated in Euros: 

  

	
	 E × 0.01

	     300        per cent. per annum.

 Where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	 	B	is the percentage rate of interest (excluding the Applicable Margin and the MCR Cost and, if applicable, the additional amount of interest specified in Section 2.07(c) payable
for the relevant Interest Period on the Advance. 

  

	 	C	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits. 

	 	E	designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Administrative Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Administrative Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000; 

  

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” has the meaning given to it from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England. 

  

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits. 

  

	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate). 

  

	 	(d)	“Special Deposits” has the meaning given to it from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England. 

  

	 	(e)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	If requested by the Administrative Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Administrative
Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank
as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	8.	Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which it becomes a Lender: 

  

	 	(a)	the jurisdiction of its Applicable Lending Office; and 

  

	 	(b)	any other information that the Administrative Agent may reasonably require for such purpose. 

 Each Lender shall promptly notify the Administrative Agent of any change to the information provided by it pursuant to this paragraph. 
 The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be
determined by the Administrative 

 
Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative
Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with an Applicable Lending Office in the same jurisdiction
as its Applicable Lending Office. 
  

	9.	The Administrative Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	10.	The Administrative Agent shall distribute the additional amounts received as a result of the MCR Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above. 

  

	11.	Any determination by the Administrative Agent pursuant to this Schedule III in relation to a formula, the MCR Cost, an Additional Cost Rate or any amount payable to a Lender shall,
in the absence of manifest error, be conclusive and binding on all parties. 

  

	12.	The Administrative Agent may from time to time, after consultation with the Borrowers and the Lenders, determine and notify to all parties any amendments which are required to be
made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority
which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties. 

 SCHEDULE 4.01(H) 
 AMBAC FINANCIAL GROUP, INC./ 
 AMBAC ASSURANCE CORPORATION 
 REVOLVING CREDIT AGREEMENT 
 CONTINGENT
LIABILITIES 
  

	 	•	 	 Post-retirement health and life insurance benefits provided under Ambac Financial Health and Welfare Plan for those employees that commenced employment with Ambac
Financial or any of its Subsidiaries prior to August 1, 2005. 

  

	 	•	 	 During 2006, the Compensation Committee of the Board of Directors of Ambac Financial approved an amendment to the Pension Plan that stopped the accrual of
additional benefits effective December 31, 2006. Ambac Financial and its Subsidiaries are in the process of taking necessary steps to terminate the Pension Plan. 

 SCHEDULE 5.02(A) 
 AMBAC FINANCIAL GROUP, INC./ 
 AMBAC ASSURANCE CORPORATION 
 REVOLVING CREDIT AGREEMENT 
 ONGOING DEBT

  

	 	•	 	 None 

 EXHIBIT A - 
 FORM OF NOTE 
 PROMISSORY NOTE 
  

			
	U.S.$                    	  	Dated:                     , 2007

 FOR VALUE RECEIVED, the undersigned, [AMBAC FINANCIAL GROUP, INC./AMBAC ASSURANCE CORPORATION]
(the “Borrower”), HEREBY PROMISES TO PAY on the Commitment Termination Date (as defined in the Credit Agreement referred to below) to the order of
                                        
                 (the “Lender”) for the account of its Applicable Lending Office (as defined in the Credit Agreement referred to below) the aggregate
principal amount of the Advances made by the Lender to the Borrower pursuant to the First Amended and Restated Revolving Credit Agreement dated as of July 30, 2007, among the Borrower, the Lender and certain other lenders parties thereto, and
Citibank, N.A., as Administrative Agent for the Lender and such other lenders (as amended or modified from time to time, the “Credit Agreement”; the terms defined therein being used herein as therein defined) outstanding on the
Commitment Termination Date. 
 The Borrower promises to pay interest on the unpaid principal amount of each Advance from the date of such
Advance until such principal amount is paid in full, at such interest rates, and payable at such times, and in the Currency, as are specified in the Credit Agreement. 
 The date, amount, Type, Currency, interest rate and duration of Interest Period of each Advance made by the Lender to the Borrowers, and each payment made on account of the principal thereof, shall be recorded by the
Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof, provided that the failure of the Lender to make any such recordation (or any error in making any
such recordation) or endorsement shall not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Advances made by the Lender. This Promissory Note is one of
the Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of Advances by the Lender to the Borrower from time to time in an aggregate amount not to
exceed at any time outstanding the Dollar amount first above mentioned, the indebtedness of the Borrower resulting from each such Advance being evidenced by this Promissory Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified. 
  

			
	[AMBAC FINANCIAL GROUP INC./
	AMBAC ASSURANCE CORPORATION]
		
	By	 	  

	Name:	 	
	Title:	 	

  

 REVOLVING CREDIT NOTE 

 ADVANCES AND PAYMENTS OF PRINCIPAL 
  

									
	 Date
	  	 Amount of
 Advance
	  	 Amount of
 Principal
 Paid
 or Prepaid
	  	 Unpaid
 Principal
 Balance
	  	 Notation
 Made By

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

					
	  
	  	  
	  	  
	  	  
	  	  

  

 REVOLVING CREDIT NOTE 

 EXHIBIT B - FORM OF 
 NOTICE OF BORROWING 
 Citibank, N.A., as Administrative Agent 
 for the Lenders parties 
 to the Credit
Agreement 
 referred to below 

											
	  
	 		 		 		 		  	
						
	  
	 		 		 		 		  	                 , 20    

 Attention:
                                 
 Ladies and Gentlemen: 
 The undersigned, [Ambac Financial
Group, Inc./Ambac Assurance Corporation], refers to the First Amended and Restated Revolving Credit Agreement, dated as of July 30, 2007 (as amended or modified from time to time, the “Credit Agreement”, the terms defined
therein being used herein as therein defined), among the undersigned, [Ambac Financial Group, Inc./Ambac Assurance Corporation], certain Lenders parties thereto, and Citibank, N.A., as Administrative Agent for said Lenders, and hereby gives you
notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing under the Credit Agreement, and in that connection sets forth below the information relating to such Borrowing (the
“Proposed Borrowing”) as required by Section 2.02(a) of the Credit Agreement: 
 (i) The Business Day of
the Proposed Borrowing is                  , 20    . 
 (ii) The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances] [Eurocurrency Rate Advances]. 
 (iii) The [Currency of the Proposed Borrowing is
             and the]1 aggregate amount of the Proposed Borrowing, stated in Dollars, is
$                    . 
 [(iv) The Eurocurrency Rate of the Eurocurrency Rate Borrowing in [LIBOR][EURIBOR]. 
 [(iv)
The initial Interest Period for each Eurocurrency Rate Advance made as part of the Proposed Borrowing is                      month[s].]

 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed
Borrowing: 
 (A) the representations and warranties contained in Section 4.01 (other than subparagraphs (f) and (g) and the
final sentence of subparagraph (e) thereof) of the Credit Agreement are correct, before and after giving effect to the Proposed Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; and

	 1
	 Insert in the case of Eurocurrency Rate Borrowing only.

  

 B-1 

 (B) no event has occurred and is continuing, or would result from such Proposed Borrowing or from the
application of the proceeds therefrom, that constitutes a Default. 
  

			
	Very truly yours,
	
	 [AMBAC FINANCIAL GROUP,
 INC./AMBAC ASSURANCE
 CORPORATION]

		
	By	 	  

	Name:	 	
	Title:	 	

  

 B-2 

 EXHIBIT C - FORM OF 
 ASSIGNMENT AND ACCEPTANCE 
 Reference is made to the First Amended and Restated Revolving Credit Agreement
dated as of July 30, 2007 (as amended or modified from time to time, the “Credit Agreement”) among Ambac Financial Group, Inc. and Ambac Assurance Corporation (the “Borrowers”), the Lenders (as defined in the
Credit Agreement), and Citibank, N.A., as administrative agent for the Lenders (the “Administrative Agent”). Terms defined in the Credit Agreement are used herein with the same meaning. 
 The “Assignor” and the “Assignee” referred to on Schedule I hereto agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, an interest in
and to the Assignor’s rights and obligations under the Credit Agreement as of the date hereof equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit Agreement. After giving
effect to such sale and assignment, the Assignee’s Commitment and the amount of the Advances owing to the Assignee will be as set forth on Schedule 1 hereto. 
 2. The Assignor (a) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim; (b) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Credit
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant thereto; (c) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of either Borrower or the performance or observance by either Borrower of any of its obligations under the Credit Agreement or any other instrument or document furnished pursuant thereto; and
(d) attaches the Note held by the Assignor and requests that the Administrative Agent exchange such Note for a new Note payable to the order of the Assignee in an amount equal to the Commitment assumed by the Assignee pursuant hereto or new
Notes payable to the order of the Assignee in an amount equal to the Commitment assumed by the Assignee pursuant hereto and the Assignor in an amount equal to the Commitment retained by the Assignor under the Credit Agreement, respectively, as
specified on Schedule 1 hereto. 
 3. The Assignee (a) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 4.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and
Acceptance; (b) agrees that it will, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender 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 Credit Agreement; (c) confirms that it is an Eligible Assignee; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; (e) agrees that it will perform in
accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a Lender; and (f) attaches any U.S. Internal Revenue Service forms required under Section 2.13 of the Credit
Agreement. 
 4. Following the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent
for acceptance and recording by the Administrative Agent. The effective date for this Assignment and Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Administrative Agent, unless otherwise specified on
Schedule 1 hereto. 
  

 C-1 

 5. Upon such acceptance and recording by the Administrative Agent, as of the Effective
Date, (a) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (b) the Assignor shall, to the extent provided in
this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement. 
 6.
Upon such acceptance and recording by the Administrative Agent, from and after the Effective Date, the Administrative Agent shall make all payments under the Credit Agreement and the Notes in respect of the interest assigned hereby (including,
without limitation, all payments of principal, interest and facility fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement and the Notes for periods prior
to the Effective Date directly between themselves. 
 7. This Assignment and Acceptance shall be governed by, and construed in
accordance with, the law of the State of New York. 
 8. This Assignment and Acceptance 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 taken together shall constitute one and the same agreement. Delivery of an executed counterpart
of Schedule 1 to this Assignment and Acceptance by telecopier shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. 
 IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment and Acceptance to be executed by their officers thereunto duly authorized as of the date specified thereon. 
  

 C-2 

 Schedule 1 
 to 
 Assignment and Acceptance 
  

					
	 Percentage interest assigned:
	  	 	                    	%
		
	 Assignee’s Commitment:
	  	$	                    	 
		
	 Aggregate outstanding principal amount of Advances assigned:
	  	$	                    	 
		
	 Principal amount of Note payable to Assignee:
	  	$	                    	 
		
	 Principal amount of Note payable to Assignor:
	  	$	                    	 
		
	 Effective Date*
	  	 	                    ,        	 

  

			
	[NAME OF ASSIGNOR], as Assignor
		
	By	 	  

	Name:	 	
	Title:	 	
	
	Dated:                     ,
        
	
	[NAME OF ASSIGNEE], as Assignee
		
	By	 	  

	Name:	 	
	Title:	 	

	*	This date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to the Agent. 

  

 C-3 

			
	Accepted [and Approved] this
	
	                     day of
                    ,         
	
	                                      
          , as Administrative Agent
		
	By	 	  

	Name:	 	
	Title:	 	
	
	 Approved this
                     day
 of
                            ,
        

	
	AMBAC FINANCIAL GROUP, INC.
		
	By	 	  

	Name:	 	
	Title:	 	
	
	AMBAC ASSURANCE CORPORATION
		
	By	 	  

	Name:	 	
	Title:	 	

  

 C-4 

 EXHIBIT D 
 FORM OF COMPLIANCE CERTIFICATE 
 AMBAC FINANCIAL GROUP, INC. 
 AMBAC ASSURANCE CORPORATION 
 This
certificate is delivered pursuant to clause (vi) of Section 5.01(f) of the First Amended and Restated Revolving Credit Agreement dated as of July 30, 2007 (together with all amendments and other modifications, if any,
from time to time made thereto, the “Credit Agreement”), among AMBAC FINANCIAL GROUP, INC (“Ambac Financial”), AMBAC ASSURANCE CORPORATION (“Ambac Assurance”; together with Ambac Financial, the
“Borrowers”), the various commercial lending institutions as are or may become parties (hereto collectively, the “Lenders”), and CITIBANK, N.A., as administrative agent (the “Administrative Agent”).
Unless otherwise defined herein, terms used herein and in the Attachment 1 hereto have the meanings provided therefor in the Credit Agreement. 
 This Compliance Certificate relates to the              Fiscal Quarter, commencing on
                    ,          and ending on
                    ,          (such latter date being the “Computation
Date”). Ambac Financial hereby further certifies, represents and warrants that as of the Computation Date: 
  

	 	(1)	No Default has occurred and is continuing; 

  

	 	(2)	The Leverage Ratio on the Computation Date was      to 1.00, as computed on Attachment 1 hereto. The maximum Leverage Ratio permitted pursuant to
Section 5.03(b) of the Credit Agreement on the Computation Date is 0.30 to 1.00, and accordingly, Section 5.03(b) of the Credit Agreement has [not] been complied with; and 

  

	 	(3)	The excess of Consolidated total assets over Consolidated total liabilities (in each case excluding the assets and liabilities of Aleutian and Juneau) and of Persons which are
Consolidated or subject to be Consolidated according to FASB Interpretation 46(R) (Consolidation of Variable Interest Entities) is $            . The minimum amount by which
Consolidated total assets must exceed Consolidated total liabilities as of the Computation Date pursuant to Section 5.03(a) of the Credit Agreement is
$                    , and accordingly, Section 5.03(a) of the Credit Agreement has [not] been complied with.

 IN WITNESS WHEREOF, the undersigned has caused this Compliance Certificate to be delivered by its Responsible Officer this
         day of                     ,         .

  

			
	AMBAC FINANCIAL GROUP, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 D-1 

 LEVERAGE RATIO 
 As of                      , 20     
 (the “Computation Date”) 
  

	(A)	Total Debt of Ambac Financial and its Subsidiaries (other than Aleutian and Juneau) on a Consolidated basis as of the Computation Date 

  

						
	 (1)
	  	Borrowed money and all obligations evidenced by bonds, debentures, notes or other similar instruments (excluding Contingent-Capital Securities, Credit-Linked Notes and that portion of Debt in
respect of Hybrid Securities included in Item C).	  	$	                    
			
	 (2)
	  	All obligations, contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and banker’s acceptances issued for the account of Ambac Financial or
its Subsidiaries (other than Aleutian and Juneau) on a Consolidated basis.	  	$	                    
			
	 (3)
	  	All obligations as lessees under leases which have been or should be, in accordance with GAAP, recorded as capitalized lease liabilities.	  	$	                    
			
	 (4)
	  	All Contingent Liabilities in respect of any of Items A(1), A(2) and A(3).	  	$	                    
			
	 (5)
	  	The sum of Items A(1), A(2), A(3) and A(4).	  	$	                    

  

	(B)	Stockholders’ Equity: Stockholders’ equity of Ambac Financial and its Subsidiaries (other than Aleutian and Juneau), on a Consolidated basis (excluding unrealized
gains on investments and unrealized losses on investments). 

  

	(C)	Total Capital: the sum of Item A(5) plus Item B plus the aggregate Hybrid Securities Amounts (excluding that portion, if any, of
such aggregate Hybrid Securities Amounts that exceeds 15% of this Item C before giving effect to such exclusion). 

  

	(D)	Leverage Ratio: 

  

			
	 The ratio of Item A(5) to Item C
	  	             to 1.00

  

 D-2 

 EXHIBIT E 
 [FORM OF OPINION OF ANNE GILL KELLY, ESQ., MANAGING DIRECTOR, SECRETARY AND 
 ASSISTANT GENERAL COUNSEL OF
AMBAC FINANCIAL GROUP, INC.] 
                 
    , 2007 
 Citibank, N.A., as Administrative Agent 
                 (as defined below) 
  

	Re:	Ambac Financial Group, Inc. 

 Ladies and Gentlemen: 
 This opinion is delivered to you pursuant to Section 3.01(c)(vi) of the First Amended and Restated Revolving Credit Agreement dated as of
July 30, 2007 (the “Credit Agreement”), among Ambac Financial Group, Inc., a Delaware corporation (“Ambac Financial”), Ambac Assurance Corporation, a Wisconsin stock insurance corporation, the Lenders parties
thereto and Citibank, N.A., as Administrative Agent for the Lenders (the “Administrative Agent”). Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as therein defined. 
 I am Assistant General Counsel of Ambac Financial and have acted as counsel to Ambac Financial in connection with the preparation, execution and delivery
of the Credit Agreement. In that connection, I have examined: 
  

	 	1.	the Credit Agreement; 

  

	 	2.	the Notes dated the date hereof, executed by Ambac Financial and payable to each of you as Lenders (the “Ambac Financial Notes”); 

  

	 	3.	the Amended and Restated Certificate of Incorporation of Ambac Financial and all amendments thereto (the “Charter”); and 

  

	 	4.	the By-laws of Ambac Financial and all amendments thereto (the “By-laws”). 

 I also have examined and am familiar with the originals, or copies certified or otherwise identified to my satisfaction, of such documents and corporate
records of Ambac Financial, certificates of public officials and officers of Ambac Financial and agreements, instruments and other documents, as I have deemed necessary as a basis for the opinions expressed below. As to questions of fact material to
such opinions, I have, when relevant facts were not independently established by me, relied, to the extent I deemed appropriate, upon certificates of Ambac Financial or its officers, or of public officials. In addition, I have also assumed the
genuineness of all signatures, the authenticity of all documents submitted to me as originals and the conformity with originals of all documents submitted to me as copies thereof. I have also assumed the due execution and delivery, pursuant to due
authorization, of the Credit Agreement by each of the Lenders and the Administrative Agent. 
 I am qualified to practice law in the State of
New York. I do not purport to express any opinion herein as to the laws of any jurisdiction other than the laws of the State of New York, the General Corporation Law of the State of Delaware and the Federal laws of the United States of America.

  

 E-1 

 Based upon the foregoing and upon such investigation, as I have deemed necessary, I am of the following
opinion: 
 (1) Ambac Financial is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. Ambac Financial is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the nature of its business requires such qualification, except where the failure to be so qualified,
singly or in the aggregate, would not have a Material Adverse Effect. 
 (2) The execution, delivery and performance by Ambac
Financial of the Credit Agreement and the Ambac Financial Notes are within Ambac Financial’s corporate powers, and have been duly authorized by all necessary corporate action on the part of Ambac Financial. 
 (3) There is no pending or, to my knowledge, threatened action, suit, investigation, litigation, proceeding or labor controversy affecting
Ambac Financial before any court, governmental agency or arbitrator which (A) purports to affect the legality, validity or enforceability of the Credit Agreement or any of the Ambac Financial Notes or the consummation of the transactions
contemplated thereby or (B) which could be reasonably likely to have a Material Adverse Effect. 
 (4) The execution,
delivery and performance by Ambac Financial of the Credit Agreement and the Ambac Financial Notes do not (i) violate or contravene its Charter or By-laws, or any contractual restriction or law applicable to Ambac Financial or any rule or
regulation applicable to Ambac Financial or (ii) result in, or require the creation or imposition of, any Lien on any of Ambac Financial’s properties. 
 (5) The execution, delivery and performance by Ambac Financial of the Credit Agreement and the Ambac Financial Notes do not conflict with
or result in a breach of any of the terms or provisions of, or constitute a default under (i) any indenture, loan agreement, lease, guarantee, mortgage or other agreement or instrument, or (ii) any order, writ, judgment, award, injunction
or decree known to me to which Ambac Financial is a party or by which it is bound or to which any of its properties or assets are subject, except for such conflicts, breaches or defaults, which individually or in the aggregate, would not have any
Material Adverse Effect, would not have a material adverse effect on the legality, validity, binding effect or enforceability of the Credit Agreement or the Ambac Financial Notes, and would not subject the Administrative Agent or any Lender to any
liability. 
 (6) No authorization, approval or other action by, and no notice to or filing with, any governmental authority
or regulatory body is required for the due execution, delivery and performance by Ambac Financial of the Credit Agreement or any Ambac Financial Note. 
 (7) The Credit Agreement and the Ambac Financial Notes have been duly executed and delivered on behalf of Ambac Financial. 
 A copy of this opinion letter may be delivered by each of you to any Eligible Assignee in connection with and at the time of any assignment and delegation by either of you as a Lender to such Eligible Assignee of a
portion of your Advances and Commitment in accordance with the provisions of the Credit Agreement, and such Eligible Assignee may rely on the opinions expressed above with respect to the Credit Agreement as if this opinion letter were addressed and
delivered to such Eligible Assignee on the date hereof. 
  

 E-2 

 This opinion letter speaks only as of the date hereof. I do not assume, and I expressly disclaim, any
responsibility to advise any of you or any other Person who is permitted to rely on any opinion expressed herein as specified in the next preceding paragraph of any or change of law or fact that may occur after the date of this opinion letter even
though such change may affect the legal analysis, a legal conclusion or any other matter set forth in or relating to this opinion letter. 
 This opinion is given pursuant to the Credit Agreement and in connection with the Loan Documents and is not to be relied upon for any other purpose. 
  

	
	 Very truly yours,

  

 E-3 

 EXHIBIT F 
 [FORM OF OPINION OF KEVIN J. DOYLE, ESQ., SENIOR VICE PRESIDENT AND 
 GENERAL COUNSEL OF AMBAC ASSURANCE
CORPORATION] 
                      , 2007

 Citibank, N.A., as Administrative Agent 
                 (as defined below) 
  

	Re:	Ambac Assurance Corporation 

 Ladies and Gentlemen: 
 This opinion is delivered to you pursuant to Section 3.01(c)(vii) of the First Amended and Restated Revolving Credit Agreement dated as of
July 30, 2007 (the “Credit Agreement”), among Ambac Financial Group, Inc., a Delaware corporation, Ambac Assurance Corporation, a Wisconsin stock insurance corporation (“Ambac Assurance”), the Lenders parties
thereto, and Citibank, N.A., as Administrative Agent for the Lenders (the “Administrative Agent”). Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as therein defined. 
 I am a Managing Director and the General Counsel of Ambac Assurance and have acted as counsel to Ambac Assurance in connection with the preparation,
execution and delivery of the Credit Agreement. In that connection, I have examined: 
  

	 	1.	the Credit Agreement; 

  

	 	2.	the Notes dated the date hereof, executed by Ambac Assurance and payable to each of you as Lenders (the “Ambac Assurance Notes”); 

  

	 	3.	the Restated Articles of Incorporation of Ambac Assurance and all amendments thereto (the “Charter”); and 

  

	 	4.	the restated by-laws of Ambac Assurance and all amendments thereto (the “By-laws”). 

 I have also examined and am familiar with originals or copies, certified or otherwise identified to my satisfaction, of such documents and corporate records of Ambac Assurance, certificates of public officials and
officers of Ambac Assurance and agreements, instruments and other documents, as I have deemed necessary as a basis for the opinions expressed below. As to questions of fact material to such opinions, I have, when relevant facts were not
independently established by me, relied, to the extent I deemed appropriate, upon certificates of Ambac Assurance or its officers, or of public officials. In addition, I have also assumed the genuineness of all signatures, the authenticity of all
documents submitted to me as originals and the conformity with originals of all documents submitted to me as copies thereof I have also assumed the due execution and delivery, pursuant to due authorization, of the Credit Agreement by each of the
Lenders and the Administrative Agent. 
  

 F-1 

 I am qualified to practice law in the State of New York. I do not purport to express any opinion herein
as to the laws of any jurisdiction other than the laws of the State of New York and the Federal laws of the United States of America. 
 Based upon the foregoing and upon such investigation as I have deemed necessary, I am of the following opinion: 
 (1) Ambac Assurance is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the nature of its business requires such qualification, except where the failure to be so qualified, singly or
in the aggregate, would not have a Material Adverse Effect. 
 (2) There is no pending or, to my knowledge, threatened action,
suit, investigation, litigation, proceeding or labor controversy affecting Ambac Assurance before any court, governmental agency or arbitrator which (A) purports to affect the legality, validity or enforceability of the Credit Agreement or any
of the Ambac Assurance Notes or the consummation of the transactions contemplated thereby or (B) which could be reasonably likely to have a Material Adverse Effect. 
 (3) All the outstanding shares of capital stock of Ambac Assurance are fully paid and non-assessable and issued to, and held of record by,
Ambac Financial. 
 (4) The execution, delivery and performance by Ambac Assurance of the Credit Agreement and the Ambac
Assurance Notes do not (i) violate or contravene its Charter or By-laws or any contractual restriction or law applicable to Ambac Assurance or any rule or regulation applicable to Ambac Assurance or (ii) result in, or require the creation
or imposition of, any Lien on any of Ambac Assurance’s properties. 
 (5) The execution, delivery and performance by
Ambac Assurance of the Credit Agreement and the Ambac Assurance Notes do not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under (i) any indenture, loan agreement, lease, guarantee, mortgage
or other agreement or instrument, or (ii) any order, writ, judgment, award, injunction or decree known to me to which Ambac Assurance is a party or by which it is bound or to which any of its properties or assets are subject, except for such
conflicts, breaches or defaults, which individually or in the aggregate, would not have any Material Adverse Effect, would not have a material adverse effect on the legality, validity, binding effect or enforceability of the Credit Agreement or the
Ambac Assurance Notes, and would not subject the Administrative Agent or any Lender to any liability. 
 (6) No authorization,
approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by Ambac Assurance of the Credit Agreement or any Ambac Assurance Note.

 (7) The Credit Agreement and the Ambac Assurance Notes have been duly executed and delivered on behalf of Ambac Assurance.

 A copy of this opinion letter may be delivered by each of you to any Eligible Assignee in connection with and at the time of any
assignment and delegation by either of you as a Lender to such Eligible Assignee of a portion of your Advances and Commitment in accordance with the provisions of the Credit Agreement and such Eligible Assignee may rely on the opinions expressed
above with respect to the Credit Agreement, as if this opinion letter were addressed and delivered to such Eligible Assignee on the date hereof 
  

 F-2 

 This opinion letter speaks only as of the date hereof. I do not assume, and I expressly disclaim, any
responsibility to advise any of you or any other person who is permitted to rely on any opinion expressed herein as specified in the next preceding paragraph of any change of law or fact that may occur after the date of this opinion letter even
though such change may affect the legal analysis, a legal conclusion or any other matter set forth in or relating to this opinion letter. 
 This opinion is given pursuant to the Credit Agreement and in connection with the Loan Documents and is not to be relied upon for any other purpose. 
  

	
	Very truly yours,

  

 F-3 

 EXHIBIT G 
 [FORM OF OPINION OF DEWITT ROSS & STEVENS, S.C.] 
                      , 2007 
 Citibank, N.A., as Administrative Agent 
                 (as
defined below) 
  

	RE:	Ambac Assurance Corporation 

 Ladies and Gentlemen: 
 This opinion is delivered to you pursuant to Section 3.01(c)(viii) of the First Amended and
Restated Revolving Credit Agreement dated as of July 30, 2007, (the “Credit Agreement”) among Ambac Financial Group, Inc., a Delaware corporation (“Ambac Financial”), Ambac Assurance Corporation, a Wisconsin
stock insurance corporation (“Ambac Assurance”; together with Ambac Financial, the “Borrowers”), the various commercial lending institutions as are or may become parties thereto (collectively, the
“Lenders”), and Citibank, N.A., as Administrative Agent for the Lenders (the “Administrative Agent”). Unless otherwise defined herein, terms to which meanings are ascribed in the Credit Agreement are used herein
with such meanings. 
 We have acted as special counsel for Ambac Assurance in connection with the preparation, execution and delivery of the Credit
Agreement. 
 In that connection, we have examined: 
  

	 	1.	the Credit Agreement; 

  

	 	2.	the Notes dated the date hereof, executed by Ambac Assurance and payable to each of you as Lenders (the “Ambac Assurance Notes”); 

  

	 	3.	the Restated Articles of Incorporation of Ambac Assurance and all amendments thereto (the “Charter”); 

  

	 	4.	the Restated Bylaws of Ambac Assurance and all amendments thereto (the “Bylaws”); and 

  

	 	5.	the Certificate of Authority issued to Ambac Assurance by the Office of the Commissioner of Insurance for the State of Wisconsin. 

 We have examined the originals, or copies certified to our satisfaction, of such other corporate records of Ambac Assurance, certificates of public officials and of
officers of Ambac Assurance and Ambac Financial and agreements, instruments and other documents, as we have deemed necessary as a basis for the opinions expressed below. As to questions of fact material to such opinions, we have, when relevant facts
were not independently established by us, relied, to the extent we deemed appropriate, upon certificates of Ambac Assurance and Ambac Financial or their respective officers, or of public officials. 

  

 G-1 

 
We have assumed the due execution and delivery, pursuant to due authorization, of the Credit Agreement by the Lenders and the Administrative Agent. We have
assumed the due execution and delivery of the Credit Agreement and the Ambac Assurance Notes, the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity to originals of all documents
submitted to us as copies thereof. 
 QUALIFICATIONS AND ASSUMPTIONS 
 (1) We are qualified to practice law in the State of Wisconsin and the opinions expressed herein relate solely to the laws of the State of Wisconsin and
are limited to the presently existing statutes of the State of Wisconsin and the published decisions of the State of Wisconsin and federal courts. 
 (2) We assume that Ambac Financial is a Delaware corporation and wholly owns the outstanding capital stock of Ambac Assurance, which fact has been certified to us by Ambac Financial. 
 (3) The insurance laws of the State of Wisconsin govern the activities of Ambac Assurance and the agreements, transactions and other activities between
Ambac Assurance and its affiliates, including Ambac Financial. The opinions set forth below are limited to the agreements and other documents specified herein and no opinion is rendered herein regarding any agreements or transactions between Ambac
Assurance and its affiliates, including Ambac Financial. 
 OPINION 
 Based solely upon the foregoing and subject to the qualifications and assumptions stated above, in our opinion: 
 (1) Ambac Assurance is a corporation duly organized, validly existing and in good standing under the laws of the State of Wisconsin. Ambac Assurance is licensed as an insurance company by the Office of the
Commissioner of Insurance of the State of Wisconsin. 
 (2) The execution, delivery and performance by Ambac Assurance of the
Credit Agreement and the Ambac Assurance Notes: (a) are within Ambac Assurance’s corporate powers and have been duly authorized by all necessary corporate action on the part of Ambac Assurance; and (b) do not violate or contravene the
Charter or Bylaws of Ambac Assurance or any laws or regulations of the State of Wisconsin. 
 (3) No authorization, approval
or other action by and no notice to or filing with the Office of the Commissioner of Insurance of the State of Wisconsin or any other Wisconsin governmental authority or regulatory body is required for the due execution, delivery and performance by
either Borrower of the Credit Agreement or any Ambac Assurance Note. 
 (4) a. The New York governing law clauses of the
Credit Agreement and the Ambac Assurance Notes to which Ambac Assurance is a party are valid under the law of the State of Wisconsin. 
 b. Under the law of the State of Wisconsin, the law of the State of New York will be applied to the Loan Documents to which Ambac Assurance is a party, except to the extent that any term of such documents or any
provision of the law of the State of New York applicable to such document violates an important public policy of the State of Wisconsin. We have no reason to believe that any such term violates an important public policy of the State of Wisconsin.

  

 G-2 

 (5) Assuming that the Credit Agreement and the Ambac Assurance Notes are legal, valid,
binding and enforceable under the law of the State of New York, the Credit Agreement and the Ambac Assurance Notes constitute the legal, valid and binding obligations of Ambac Assurance, and are enforceable against Ambac Assurance in accordance with
their respective terms. 
 The opinions set forth above are subject to the following qualifications: 
 a. Our opinion in Paragraph 5 is subject to the effect of any applicable bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar law affecting creditors’ rights generally. 
 b. Our opinion in Paragraph
5 above is also subject to the effect of general principles of equity, including (without limitation) concepts of materiality, reasonableness, good faith and fair dealing (regardless of whether considered in proceeding in equity or at law).

                     ,
[                                        ]
of Ambac Assurance may rely on the opinions above for the purpose of rendering his opinion letter pursuant to Section 3.01(c)(vii) of the Credit Agreement on the date hereof. In addition, a copy of this opinion letter may be delivered by each
of you to any Eligible Assignee in connection with and at the time of any assignment and delegation by either of you as a Lender to such Eligible Assignee of a portion of your Loans and Commitment in accordance with the provisions of the Credit
Agreement, and such Eligible Assignee may rely on the opinions expressed above with respect to the Credit Agreement as if this opinion letter were addressed and delivered to such Eligible Assignee on the date hereof. 
 This opinion letter speaks only as of the date hereof. We do not assume, and we expressly disclaim, any responsibility to advise any of you or any other person who is
permitted to rely on any opinion expressed herein as specified in the next preceding paragraph of any change of law or fact that may occur after the date of this opinion letter even though such change may affect the legal analysis, a legal
conclusion or any other matter set forth in or relating to this opinion letter. 
 This opinion is given pursuant to the Credit Agreement and in connection
with the Loan Documents and is not to be relied upon for any other purpose. 
  

	
	Very truly yours,
	
	 DEWITT ROSS & STEVENS S.C.

	
	 [                                      
      ]

  

 G-3 

 EXHIBIT H 
 [FORM OF OPINION OF 
 BAKER BOTTS L.L.P.] 
                      , 2007 
 To each of the Lenders listed on 
 Schedule I hereto and 
 Citibank, N.A., 
 as Administrative Agent

 Ambac Financial Group, Inc. and Ambac Assurance Corporation 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to Section 3.01(c)(ix) of the First
Amended and Restated Revolving Credit Agreement dated as of July 30, 2007 (the “Credit Agreement”), among Ambac Financial Group, Inc. and Ambac Assurance Corporation (the “Borrowers”), the Lenders parties
thereto, and Citibank, N.A., as Administrative Agent for said Lenders. Terms defined in the Credit Agreement are used herein as therein defined. 
 We have acted as special New York counsel for the Borrowers in connection with the preparation, execution and delivery of the Credit Agreement. 
 In that connection, we have examined: 
 (1) The Credit Agreement. 
 (2) The documents furnished by each Borrower pursuant to Article III of the Credit Agreement, including the Notes furnished by each
Borrower thereunder on the date hereof (for purposes of this opinion letter, the “Notes”). 
 We have also examined the originals, or copies
certified to our satisfaction, of such certificates of officers of each Borrower and agreements, instruments and other documents, as we have deemed necessary as a basis for the opinions expressed below. As to questions of fact material to such
opinions, we have, when relevant facts were not independently established by us, relied upon certificates of each Borrower. 
 In our
examination of the documents, certificates and instruments referred to above, we have assumed the authenticity of all such documents, certificates and instruments submitted to us as originals, the genuineness of all signatures, the due authority of
the parties executing such documents, certificates and instruments, and the conformity to authentic originals of all such documents, certificates or instruments submitted to us as copies. We have also assumed, without independent investigation, that
(a) each Borrower (i) is a corporation duly organized and validly existing under the laws of the state of its organization and (ii) has full power and authority to enter into and perform its obligations under the Credit Agreement and the Notes, (b)
the execution, delivery and performance by each Borrower of the Credit Agreement and the Notes have been duly authorized by all necessary board, company, member, manager or officer action and do not violate or contravene any law, rule or regulation
applicable to either Borrower or any agreement, instrument or other document binding on or affecting either Borrower or any 

  

 H-1 

 
constituent document of either Borrower, (c) no authorization, approval or other action by, and no notice to or filing with, any governmental authority
or regulatory body or any other Person is required for the due execution, delivery or performance by either Borrower of the Credit Agreement or the Notes, or if any such authorization, approval, action, notice or filing is required therefor, it has
been duly obtained or made and is in full force and effect, (d) the Credit Agreement has been duly executed and delivered, with all necessary power and authority (corporate and otherwise), by each party thereto, other than the Borrowers, and is
the legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms and (e) the Credit Agreement and the Notes have been duly executed and delivered on behalf of each Borrower. 
 Based upon the foregoing and upon such investigation as we have deemed necessary and subject to the qualifications set forth below, we are of the opinion
that the Credit Agreement is, and if an Advance were made, each of the Notes evidencing such Advance would be, the legal, valid and binding obligations of each Borrower, enforceable against each Borrower in accordance with their respective terms.

 Our opinion above is subject to the following qualifications: 
 (a) Our opinion is subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally (including, without limitation, all laws relating to fraudulent transfers). 
 (b) Our
opinion is also subject to the effect of general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing (regardless of whether considered in a proceeding in equity or at law).

 (c) We express no opinion as to the enforceability of the indemnification provisions, or of release or exculpation
provisions, set forth in Section 8.04(b) of the Credit Agreement to the extent enforcement thereof is contrary to public policy regarding the indemnification against or release or exculpation of criminal violations, intentional harm or acts of
gross negligence or recklessness. 
 (d) Although the Credit Agreement provides for obligations of the Borrowers denominated
in currencies other than Dollars, we express no opinion as to whether a court would award a judgment in a currency other than Dollars. 
 (e) We express no opinion with respect to the enforceability of any indemnity against loss in converting into a specified currency the proceeds or amount of a court judgment in another currency. 
 (f) Our opinion is limited to Generally Applicable Law and we do not express any opinion herein concerning any other law. “Generally
Applicable Law” means the federal law of the United States of America, and the law of the State of New York (including the rules and regulations promulgated thereunder or pursuant thereto), that a New York lawyer exercising customary
professional diligence would reasonably be expected to recognize as being applicable to the Credit Agreement and the Notes. Without limiting the generality of the foregoing definition of Generally Applicable Law, the term “Generally Applicable
Law” does not include any law, rule or regulation (including, without limitation, any insurance law, rule or regulation) that is applicable to either of the Borrowers or to the Credit Agreement or the Notes solely because of the specific assets
or business of any party to the Credit Agreement or the Notes or any of its affiliates. 
  

 H-2 

 A copy of this opinion letter may be delivered by each of you to any Eligible Assignee in connection with
and at the time of any assignment and delegation by any of you as a Lender to such Eligible Assignee of a portion of your Advances and Commitment in accordance with the provisions of the Credit Agreement, and such Eligible Assignee may rely on the
opinion expressed above with respect to the Credit Agreement as if this opinion letter were addressed and delivered to such Eligible Assignee on the date hereof. 
 This opinion letter is rendered to you in connection with the transactions contemplated by the Credit Agreement. This opinion letter may not be relied upon by you or any other Person who is permitted to rely on the
opinion expressed herein as specified in the next preceding paragraph for any other purpose without our prior written consent. 
 This
opinion letter speaks only as of the date hereof. We expressly disclaim any responsibility to advise any of you or any other Person who is permitted to rely on the opinion expressed herein as specified in the second preceding paragraph of any
development or circumstance of any kind, including any change of law or fact that may occur after the date of this opinion letter even though such development, circumstance or change may affect the legal analysis, a legal conclusion or any other
matter set forth in or relating to this opinion letter. 
  

	
	Very truly yours,

  

 H-3 

 EXHIBIT I 
 FORM OF OPINION OF 
 MILBANK, TWEED, HADLEY & McCLOY LLP 
                      , 2007 
 Each of the Lenders party to 
 the Credit Agreement

 referred to below 
 Citibank, N.A.,

 as Administrative Agent 
 (the
“Administrative Agent”) 
 2 Penns Way 
 Suite
110 
 New Castle, DE 19720 
 Ladies and Gentlemen: 

We have acted as special New York counsel to Citibank, N.A., as Administrative Agent in connection with the First Amended and Restated Revolving Credit
Agreement dated as of July 30, 2007 (the “Credit Agreement”) among Ambac Financial Group, Inc., and Ambac Assurance Corporation (collectively, the “Borrowers”), the banks, financial institutions and other
institutional lenders party thereto and the Administrative Agent, amended and restating the Revolving Credit Agreement dated as of July 28, 2005 (as amended by Amendment No. 1 thereto dated as of July 28, 2006, the “Existing
Credit Agreement”) among the Borrowers, the banks, financial institutions and other institutional lenders party thereto and the Administrative Agent. Capitalized terms used but not defined herein have the respective meanings given to such
terms in the Credit Agreement. This opinion is being delivered pursuant to Section 3.01(c)(xi) of the Credit Agreement. 
 In rendering
the opinions expressed below, we have examined the following agreements, instruments and other documents: 
 (i) the Credit Agreement; and

 (ii) such other documents as we have deemed necessary as a basis for the opinions expressed below. 
 In our examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity
with authentic original documents of all documents submitted to us as copies, and we have assumed that all authorizations, approvals or consents of, and all filings and registrations with, any governmental or regulatory authority or agency required
for the making and performance by each Borrower of the Credit Agreement have been obtained or made and are in effect. When relevant facts were not independently established, we have relied upon representations made in or pursuant to the Credit
Agreement. 
 In rendering the opinions expressed below, we have assumed, with respect to all of the documents referred to in this opinion
letter, that: 
 (i) such documents have been duly authorized by, have been duly executed and delivered by, and (except to the extent set
forth below as to the Borrowers) constitute legal, valid, binding and enforceable obligations of, all of the parties to such documents; 
  

 I-1 

 (ii) all signatories to such documents have been duly authorized; 
 (iii) all of the parties to such documents are duly organized and validly existing and have the power and authority (corporate or other) to execute,
deliver and perform such documents; and 
 (iv) all Persons that are, immediately before the Effective Date, parties to the Existing Credit
Agreement have executed and delivered the Credit Agreement or have otherwise consented to the amendment and restatement of the Existing Credit Agreement. 
 Based upon and subject to the foregoing and subject also to the comments and qualifications set forth below, and having considered such questions of law as we have deemed necessary as a basis for the opinions
expressed below, we are of the opinion that the Credit Agreement constitutes, and each of the Notes, when duly executed and delivered in accordance with the Credit Agreement will constitute, the legal, valid and binding obligation of each Borrower
party thereto, enforceable against each such Borrower in accordance with its terms, except as may be limited by bankruptcy, fraudulent conveyance or transfer, insolvency, receivership, conservatorship, reorganization, moratorium or other similar
laws relating to or affecting the rights of creditors generally, and except as enforceability is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including, without
limitation, (a) the possible unavailability of specific performance, injunctive relief or any other equitable remedy and (b) concepts of materiality, reasonableness, good faith and fair dealing. 
 The foregoing opinions are subject to the following comments and qualifications: 
 (A) The enforceability of provisions in the Credit Agreement to the effect that terms may not be waived or modified except in writing may be limited under
certain circumstances. 
 (B) The enforceability of Section 8.04(b) of the Credit Agreement may be limited by (i) laws rendering
unenforceable indemnification contrary to Federal or state securities laws and the public policy underlying such laws and (ii) laws limiting the enforceability of provisions exculpating or exempting a party from, or requiring indemnification of
a party for, liability for its own action or inaction, to the extent the action or inaction involves gross negligence, recklessness, willful misconduct or unlawful conduct. 
 (C) We express no opinion as to (i) the effect of the laws of any jurisdiction in which any Lender is located (other than the State of New York)
that limit the interest, fees or other charges such Lender may impose, (ii) the last sentence of Section 2.14, (iii) Section 8.05 of the Credit Agreement or (iv) the first sentence of Section 8.14 of the Credit
Agreement, insofar as such sentence relates to the subject matter jurisdiction of the United States District Court for the Southern District of New York to adjudicate any controversy related to any of the Loan Documents. 
 (D) We point out with reference to obligations stated to be payable in a currency other than Dollars that (i)a New York statute provides that a judgment
rendered by a court of the State of New York in respect of an obligation denominated in any such other currency would be rendered in such 

  

 I-2 

 
other currency and would be converted into Dollars at the rate of exchange prevailing on the date of entry of the judgment and (ii) a judgment rendered
by a Federal court sitting in the State of New York in respect of an obligation denominated in any such other currency may be expressed in Dollars, but we express no opinion as to the rate of exchange that would be applied by such Federal court.

 The foregoing opinions are limited to matters involving the Federal laws of the United States and the law of the State of New York, and we
do not express any opinion as to the laws of any other jurisdiction. We express no opinion as to any insurance laws or regulations that are applicable to either Borrower. 
 This opinion letter is provided to you by us in our capacity as special New York counsel to the Administrative Agent pursuant to Section 3.01(c)(xi) of the Credit Agreement and may not be relied upon by any
Person for any purpose other than in connection with the transactions contemplated by the Credit Agreement without, in each instance, our prior written consent. 
  

	
	Very truly yours,

 WFC/EFR 
  

 I-3Credit Agreement

 Exhibit 4(a) 
 EXECUTION COPY 
 CREDIT AGREEMENT 
 Among 
 CLEVELAND-CLIFFS INC 
 VARIOUS LENDERS 
 FROM TIME TO TIME PARTY HERETO 
 and 
 BANK OF
AMERICA, N.A., 
 as Administrative Agent and L/C Issuer 
 DATED AS OF JULY 26, 2007 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 SECTION 1.
	  	 DEFINITIONS; INTERPRETATION
	  	1
			
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Interpretation
	  	20
	 Section 1.3
	  	 Change in Accounting Principles
	  	21
			
	 SECTION 2.
	  	 THE CREDIT FACILITIES
	  	21
			
	 Section 2.1
	  	 Revolving Credit Commitments
	  	21
	 Section 2.2
	  	 Letters of Credit
	  	21
	 Section 2.3
	  	 Applicable Interest Rates
	  	24
	 Section 2.4
	  	 Manner of Borrowing Loans and Designating Currency and Applicable Interest Rates
	  	25
	 Section 2.5
	  	 Minimum Borrowing Amounts; Maximum Eurocurrency Loans
	  	28
	 Section 2.6
	  	 Maturity of Revolving Loans
	  	28
	 Section 2.7
	  	 Prepayments
	  	28
	 Section 2.8
	  	 Place and Application of Payments
	  	29
	 Section 2.9
	  	 Commitment Terminations
	  	31
	 Section 2.10
	  	 Swing Loans
	  	31
	 Section 2.11
	  	 The Notes
	  	32
	 Section 2.12
	  	 Fees
	  	33
	 Section 2.13
	  	 Hedge Agreements
	  	34
			
	 SECTION 3.
	  	 CONDITIONS PRECEDENT
	  	34
			
	 Section 3.1
	  	 All Credit Events
	  	34
	 Section 3.2
	  	 Initial Credit Event
	  	35
			
	 SECTION 4.
	  	 THE GUARANTIES
	  	36
			
	 Section 4.1
	  	 Guaranties
	  	36
	 Section 4.2
	  	 Further Assurances
	  	36
			
	 SECTION 5.
	  	 REPRESENTATIONS AND WARRANTIES
	  	37
			
	 Section 5.1
	  	 Organization and Qualification
	  	37
	 Section 5.2
	  	 Authority and Enforceability
	  	37
	 Section 5.3
	  	 Financial Reports
	  	37
	 Section 5.4
	  	 No Material Adverse Change
	  	38
	 Section 5.5
	  	 Litigation and other Controversies
	  	38
	 Section 5.6
	  	 True and Complete Disclosure
	  	38
	 Section 5.7
	  	 Use of Proceeds; Margin Stock
	  	38
	 Section 5.8
	  	 Taxes
	  	38
	 Section 5.9
	  	 ERISA
	  	38
	 Section 5.10
	  	 Subsidiaries
	  	39

  

 i 

					
	 Section 5.11
	  	 Compliance with Laws
	  	39
	 Section 5.12
	  	 Environmental Matters
	  	39
	 Section 5.13
	  	 Investment Company
	  	39
	 Section 5.14
	  	 Intellectual Property
	  	39
	 Section 5.15
	  	 Good Title
	  	40
	 Section 5.16
	  	 Labor Relations
	  	40
	 Section 5.17
	  	 Capitalization
	  	40
	 Section 5.18
	  	 Other Agreements
	  	40
	 Section 5.19
	  	 Governmental Authority and Licensing
	  	40
	 Section 5.20
	  	 Approvals
	  	40
	 Section 5.21
	  	 Affiliate Transactions
	  	40
	 Section 5.22
	  	 Solvency
	  	41
	 Section 5.23
	  	 Foreign Assets Control Regulations and Anti-Money Laundering
	  	41
			
	 SECTION 6.
	  	 COVENANTS
	  	41
			
	 Section 6.1
	  	 Information Covenants
	  	41
	 Section 6.2
	  	 Inspections
	  	43
	 Section 6.3
	  	 Maintenance of Property, Insurance, Environmental Matters, etc.
	  	43
	 Section 6.4
	  	 Preservation of Existence
	  	44
	 Section 6.5
	  	 Compliance with Laws
	  	44
	 Section 6.6
	  	 ERISA
	  	44
	 Section 6.7
	  	 Payment of Taxes
	  	45
	 Section 6.8
	  	 Contracts With Affiliates
	  	45
	 Section 6.9
	  	 No Changes in Fiscal Year
	  	45
	 Section 6.10
	  	 Change in the Nature of Business
	  	45
	 Section 6.11
	  	 Indebtedness
	  	45
	 Section 6.12
	  	 Liens
	  	47
	 Section 6.13
	  	 Restrictions on Joint Ventures
	  	48
	 Section 6.14
	  	 Consolidation, Merger, Sale of Assets, etc.
	  	49
	 Section 6.15
	  	 Restricted Investments Prohibited
	  	50
	 Section 6.16
	  	 Dividends and Certain Other Restricted Payments
	  	50
	 Section 6.17
	  	 Limitation on Restrictions
	  	50
	 Section 6.18
	  	 OFAC
	  	51
	 Section 6.19
	  	 Financial Covenants
	  	51
	 Section 6.20
	  	 Limitation on Non-Material Subsidiaries
	  	51
	 Section 6.21
	  	 Limitation on Assets and Operations of Cliffs Sonoma Entities
	  	51
			
	 SECTION 7.
	  	 EVENTS OF DEFAULT AND REMEDIES
	  	52
			
	 Section 7.1
	  	 Events of Default
	  	52
	 Section 7.2
	  	 Non-Bankruptcy Defaults
	  	53
	 Section 7.3
	  	 Bankruptcy Defaults
	  	54
	 Section 7.4
	  	 Collateral for Undrawn Letters of Credit
	  	54
	 Section 7.5
	  	 Notice of Default
	  	55
	 Section 7.6
	  	 Expenses
	  	55

  

 ii 

					
	 SECTION 8.
	  	 CHANGE IN CIRCUMSTANCES AND CONTINGENCIES
	  	55
			
	 Section 8.1
	  	 Funding Indemnity
	  	55
	 Section 8.2
	  	 Illegality
	  	56
	 Section 8.3
	  	 Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR
	  	56
	 Section 8.4
	  	 Yield Protection
	  	56
	 Section 8.5
	  	 Substitution of Lenders
	  	58
	 Section 8.6
	  	 Lending Offices
	  	58
	 Section 8.7
	  	 Discretion of Lender as to Manner of Funding
	  	58
			
	 SECTION 9.
	  	 THE ADMINISTRATIVE AGENT
	  	59
			
	 Section 9.1
	  	 Appointment and Authorization of Administrative Agent
	  	59
	 Section 9.2
	  	 Administrative Agent and its Affiliates
	  	59
	 Section 9.3
	  	 Action by Administrative Agent
	  	59
	 Section 9.4
	  	 Consultation with Experts
	  	60
	 Section 9.5
	  	 Liability of Administrative Agent; Credit Decision
	  	60
	 Section 9.6
	  	 Indemnity
	  	60
	 Section 9.7
	  	 Resignation of Administrative Agent and Successor Administrative Agent
	  	61
	 Section 9.8
	  	 L/C Issuer
	  	61
	 Section 9.9
	  	 Hedging Liability and Funds Transfer and Deposit Account Liability Arrangements
	  	61
			
	 SECTION 10.
	  	 MISCELLANEOUS
	  	62
			
	 Section 10.1
	  	 Withholding Taxes
	  	62
	 Section 10.2
	  	 No Waiver, Cumulative Remedies
	  	63
	 Section 10.3
	  	 Non-Business Days
	  	63
	 Section 10.4
	  	 Documentary Taxes
	  	63
	 Section 10.5
	  	 Survival of Representations
	  	64
	 Section 10.6
	  	 Survival of Indemnities
	  	64
	 Section 10.7
	  	 Sharing of Set-Off
	  	64
	 Section 10.8
	  	 Notices
	  	64
	 Section 10.9
	  	 Counterparts
	  	65
	 Section 10.10
	  	 Successors and Assigns; Assignments and Participations
	  	65
	 Section 10.11
	  	 Amendments
	  	67
	 Section 10.12
	  	 Headings
	  	68
	 Section 10.13
	  	 Costs and Expenses; Indemnification
	  	68
	 Section 10.14
	  	 Set-off
	  	69
	 Section 10.15
	  	 Entire Agreement
	  	69
	 Section 10.16
	  	 Governing Law
	  	69
	 Section 10.17
	  	 Severability of Provisions
	  	69
	 Section 10.18
	  	 Excess Interest
	  	69
	 Section 10.19
	  	 Construction
	  	70
	 Section 10.20
	  	 Lender’s Obligations Several
	  	70
	 Section 10.21
	  	 USA Patriot Act
	  	70

  

 iii 

					
	 Section 10.22
	  	 Currency
	  	70
	 Section 10.23
	  	 Submission to Jurisdiction; Waiver of Jury Trial
	  	71

  

					
	 Exhibit A
	  	—	  	 Notice of Payment Request

	 Exhibit B
	  	—	  	 Notice of Borrowing

	 Exhibit C
	  	—	  	 Notice of Continuation/Conversion

	 Exhibit D-1
	  	—	  	 Revolving Note

	 Exhibit D-2
	  	—	  	 Swing Note

	 Exhibit E
	  	—	  	 Compliance Certificate

	 Exhibit F
	  	—	  	 Assignment and Assumption

	 Schedule 1
	  	—	  	 Commitments

	 Schedule 5.5
	  	—	  	 Litigation

	 Schedule 5.9
	  	—	  	 Welfare Plans

	 Schedule 5.10
	  	—	  	 Subsidiaries

	 Schedule 5.17
	  	—	  	 Capitalization

	 Schedule 6.11
	  	—	  	 Existing Indebtedness

	 Schedule 6.12
	  	—	  	 Existing Liens

	 Schedule 6.13
	  	—	  	 Mesabi Joint Ventures

	 Schedule 6.13(A)
	  	—	  	 Existing Joint Venture Liens

	 Schedule 6.15
	  	—	  	 Permitted Investments

	 Schedule 6.15(A)
	  	—	  	 Existing Investments in Non-Joint Ventures

  

 iv 

 CREDIT AGREEMENT 
 This Credit Agreement is entered into as of July 26, 2007, by and among Cleveland-Cliffs Inc, an Ohio corporation (the
“Borrower”), the various institutions from time to time party to this Agreement as Lenders and Bank of America, N.A., as Administrative Agent and L/C Issuer. 
 The Borrower has requested, and the Lenders have agreed to extend, certain credit facilities on the terms and conditions of this Agreement. In consideration of the mutual agreements set forth in
this Agreement, the parties to this Agreement agree as follows: 
 SECTION 1.    DEFINITIONS;
INTERPRETATION. 
 Section
1.1    Definitions.    The following terms when used herein shall have the following meanings: 
 “Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of
a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or (c) a
merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary), provided that the Borrower or the Subsidiary is the surviving entity. 
 “Adjusted LIBOR” means, for any Borrowing of Eurocurrency Loans, a rate per annum equal to the quotient of
(i) LIBOR, divided by (ii) one minus the Reserve Percentage. 
 “Administrative Agent” means Bank
of America, N.A., as contractual representative for itself and the other Lenders and any successor pursuant to Section 9.7 hereof. 
 “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on the signature page of the Administrative Agent hereof, or such other
address or account as the Administrative Agent may from time to time notify in writing to the Borrower and the Lenders. 
 “Administrative Agent’s Quoted Rate” is defined in Section 2.10(c) hereof. 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
 “Affiliate” means any Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, another Person. A Person shall be deemed to control another Person
for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and policies of the other Person, whether through the ownership of voting securities, common directors,
trustees or officers, by contract or otherwise; provided that, in any event for purposes of this definition, any Person that owns, directly or indirectly, 30% or more of the securities having the ordinary voting power for the election of
directors or governing body of a corporation or 30% or more of the partnership or 

 
other ownership interests of any other Person (other than as a limited partner of such other Person) will be deemed to control such corporation or other
Person. 
 “Agreement” means this Credit Agreement, as the same may be amended, modified, restated or
supplemented from time to time pursuant to the terms hereof. 
 “Alternative Currency” means any of
Australian dollars and Canadian dollars, and any other currency approved by the Administrative Agent, in each case for so long as such currency is readily available to all the Lenders and is freely transferable and freely convertible to U.S. Dollars
and the Dow Jones Telerate Service or Reuters Monitor Money Rates Service (or any successor to either) reports a LIBOR for such currency for interest periods of one, two, three, six and twelve calendar months; provided that if any Lender
provides written notice to the Borrower (with a copy to the Administrative Agent) that any currency control or other exchange regulations are imposed in the country in which any such Alternative Currency is issued and that in the reasonable opinion
of such Lender funding a Loan in such currency is unlawful or subject to unreasonably burdensome legal restrictions, then such currency shall cease to be an Alternative Currency hereunder until such time as all the Lenders reinstate such
country’s currency as an Alternative Currency. 
 “Amapa” means MMX Amapá
Mineração Ltda., a company organized under the laws of Brazil. 
 “Amapa Investment” means,
collectively, all Investments by the Borrower and its Subsidiaries in Amapa. 
 “Applicable Margin” means,
with respect to Loans, Reimbursement Obligations, and the commitment fees and letter of credit fees payable under Section 2.12 hereof, (a) from the closing date until September 30, 2007, the rates per annum shown below: 
  

					
	 APPLICABLE MARGIN FOR BASE RATE

LOANS AND REIMBURSEMENT
 OBLIGATIONS SHALL BE:
	  	APPLICABLE MARGIN FOR EUROCURRENCY LOANS AND LETTER OF
CREDIT FEE SHALL
BE:	  	 APPLICABLE MARGIN FOR COMMITMENT
 FEE SHALL BE:

			
	 0%
	  	0.50%	  	0.10%

 (b) from October 1, 2007 until the first Pricing Date, the rates per annum shown opposite
Level I below, and (c) thereafter, from one Pricing Date to the next, the rates per annum determined in accordance with the following schedule: 
  

									
	LEVEL	  	TOTAL FUNDED DEBT TO
EBITDA RATIO FOR SUCH
PRICING
DATE	  	APPLICABLE MARGIN FOR
BASE RATE LOANS AND
REIMBURSEMENT
OBLIGATIONS SHALL BE:	  	APPLICABLE MARGIN FOR EUROCURRENCY LOANS
AND LETTER
OF CREDIT FEE
SHALL BE:	  	APPLICABLE MARGIN FOR COMMITMENT FEE SHALL
BE:
					
	 I
	  	 Less than or equal to 1.0 to 1.0
	  	0.0%	  	0.75%	  	0.175%

  

 2 

									
	LEVEL	  	TOTAL FUNDED DEBT TO
EBITDA RATIO FOR SUCH
PRICING
DATE	  	APPLICABLE MARGIN FOR
BASE RATE LOANS AND
REIMBURSEMENT
OBLIGATIONS SHALL BE:	  	APPLICABLE MARGIN FOR EUROCURRENCY LOANS
AND LETTER
OF CREDIT FEE SHALL BE:	  	APPLICABLE MARGIN FOR COMMITMENT FEE SHALL
BE:
					
	 II
	  	 Less than or equal to 1.5 to
1.0, but greater than 1.0 to
1.0
	  	0.0%	  	1.00%	  	0.20%
					
	 III
	  	 Less than or equal to 2.0 to
1.0, but greater than 1.5 to
1.0
	  	0.0%	  	1.25%	  	0.225%
					
	 IV
	  	 Greater than 2.0 to 1.0
	  	0.0%	  	1.50%	  	0.25%

 For purposes hereof, the term “Pricing Date” means, for any
fiscal quarter of the Borrower ending on or after September 30, 2007, the date on which the Administrative Agent is in receipt of the Borrower’s most recent financial statements (and, in the case of the year-end financial statements, audit
report) for the fiscal quarter then ended, pursuant to Section 6.1 hereof. The Applicable Margin shall be established based on the Total Funded Debt to EBITDA ratio for the most recently completed fiscal quarter and the Applicable Margin
established on a Pricing Date shall remain in effect until the next Pricing Date. If the Borrower has not delivered its financial statements by the date such financial statements (and, in the case of the year-end financial statements, audit report)
are required to be delivered under Section 6.1 hereof, until such financial statements and audit report are delivered, the Applicable Margin shall be the highest Applicable Margin (i.e., the Total Funded Debt to EBITDA ratio shall be
deemed to be greater than 2.00 to 1.0). If the Borrower subsequently delivers such financial statements before the next Pricing Date, the Applicable Margin established by such late delivered financial statements shall take effect from the date of
delivery until the next Pricing Date. In all other circumstances, the Applicable Margin established by such financial statements shall be in effect from the Pricing Date that occurs immediately after the end of the fiscal quarter covered by such
financial statements until the next Pricing Date. Each determination of the Applicable Margin made by the Administrative Agent in accordance with the foregoing shall be conclusive and binding on the Borrower and the Lenders absent manifest error.

 “Application” is defined in Section 2.2(b) hereof. 
 “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Assignment and
Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.10), and accepted by the Administrative Agent, in substantially the
form of Exhibit F or any other form approved by the Administrative Agent. 
 “Authorized
Representative” means those persons shown on the list of officers provided by the Borrower pursuant to Section 3.2 hereof or on any update of any such list provided by the 

  

 3 

 
Borrower to the Administrative Agent, or any further or different officers of the Borrower so named by any Authorized Representative of the Borrower in a
written notice to the Administrative Agent. 
 “Base Rate” means for any day the greater of: (i) the
rate of interest announced by the Administrative Agent from time to time as its “prime rate” as in effect on such day, with any change in the Base Rate resulting from a change in said prime rate to be effective as of the date of the
relevant change in said prime rate (it being acknowledged that such rate may not be the Administrative Agent’s best or lowest rate) and (ii) the sum of (x) the Federal Funds Rate, plus (y) 1/2 of 1%. 
 “Base Rate Loan” means a Loan bearing interest at a rate specified in Section 2.3(a) hereof. 
 “Borrower” is defined in the introductory paragraph of this Agreement. 
 “Borrowing” means the total of Loans of a single type advanced, continued for an additional Interest Period, or
converted from a different type into such type by the Lenders on a single date and, in the case of Eurocurrency Loans, for a single Interest Period. Borrowings of Loans are made and maintained ratably from each of the Lenders according to their
Percentages. A Borrowing is “advanced” on the day Lenders advance funds comprising such Borrowing to the Borrower, is “continued” on the date a new Interest Period for the same type of Loans commences for such
Borrowing, and is “converted” when such Borrowing is changed from one type of Loans to the other, all as requested by the Borrower pursuant to Section 2.4(a) hereof. 
 “Business Day” means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in
New York, New York and, if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of a Eurocurrency Loan, on which banks are dealing in U.S. Dollar deposits in the interbank Eurocurrency market in
London, England and New York, New York and, if the applicable Business Day relates to the borrowing or payment of a Eurocurrency Loan denominated in an Alternative Currency, on which banks and foreign exchange markets are open for business in the
city where disbursements of or payments on such Loan are to be made and, if such Alternative Currency is the euro or any national currency of a nation that is a member of the European Economic and Monetary Union, which is a TARGET Settlement Day.

 “Capital Expenditures” means, with respect to any Person for any period, the aggregate amount of all
expenditures (whether paid in cash or accrued as a liability) by such Person during that period for the acquisition or leasing (pursuant to a Capital Lease) of fixed or capital assets or additions to property, plant, or equipment (including
replacements and improvements) which should be capitalized on the balance sheet of such Person in accordance with GAAP. 
 “Capital Lease” means any lease of Property which in accordance with GAAP is required to be capitalized on the balance sheet of the lessee. 
  

 4 

 “Capitalized Lease Obligation” means, for any Person, the amount of the
liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP. 
 “Cash Equivalents” shall mean, as to any Person: (a) investments in direct obligations of the United States of America or of any agency or instrumentality thereof whose obligations constitute full faith and credit
obligations of the United States of America and securities that are the direct obligations of any member state of the European Union or any other sovereign nation, which at the time of acquisition thereof, was not targeted for sanctions by the
Office of Foreign Assets Control of the United States Department of the Treasury so long as the full faith of and credit of such nation is pledged in support thereof, provided that in each case any such obligations shall mature within one year of
the date of issuance thereof; (b) investments in commercial paper rated at least P-1 by Moody’s or at least A-1 by S&P or the highest rating available by any other credit agency of national standing or an equivalent rating from a
comparable foreign rating agency, in each case maturing within one year of the date of issuance thereof; (c) investments in certificates of deposit or banker’s acceptances issued by any Lender or by any commercial bank having capital and
surplus of not less than U.S. $100,000,000 which have a maturity of one year or less; (d) investments in repurchase obligations with a term of not more than 7 days for underlying securities of the types described in clause (a) above
entered into with any bank meeting the qualifications specified in clause (c) above, provided all such agreements require physical delivery of the securities securing such repurchase agreement, except those delivered through the Federal Reserve
Book Entry System; (e) investments in auction reset securities, which are variable rate securities with interest rates that reset no less frequently than quarterly in each case rated “AA” or better by S&P, “Aa2” or
better by Moody’s or an equivalent rating by any other credit rating agency of recognized national standing; (f) investments in variable rate demand notes and bonds that are credit enhanced by any commercial bank having capital and surplus
of not less than U.S. $100,000,000; and (g) investments in money market funds that invest solely, and which are restricted by their respective charters to invest solely, in investments of the type described in the immediately preceding
subsections (a), (b), (c), (d), (e) and (f) above. 
 “CERCLA” means the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq., and any future amendments. 
 “Change of Control” shall mean and include any Person or related Persons constituting a “group” for the
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, becoming the beneficial owner or owners, directly or indirectly, of a majority of the Voting Stock (determined by number of votes) of the Borrower (the
“Beneficial Owners”); provided that a Change of Control shall not have occurred if the Beneficial Owners include, and are under the general direction and control of, a member or members of the Current Management Group. As
used herein, the term “Voting Stock” shall mean Securities of any class or classes, the holders of which are ordinarily, in the absence of contingencies, entitled to elect a majority of the corporate directors (or Persons performing
similar functions). As used herein, the term “Current Management Group” shall mean Joseph A. Carrabba, William R. Calfee, John S. Brinzo, David H. Gunning and Donald J. Gallagher and any successors thereto who are
appointed by a majority of the Continuing Directors. As used herein, this term “Continuing Director” shall mean any 

  

 5 

 
director of the Borrower who either (x) is a director of the Borrower on the date hereof or (y) becomes a director of the Borrower subsequent to
the date hereof but prior to the date of the Change of Control and whose election or nomination for election by the shareholders of the Borrower was duly approved by at least two-thirds of the Continuing Directors who were such immediately prior to
that time of election or nomination, either by a specific vote of such Continuing Directors or by approval of the proxy statement issued by the Borrower in which such individual was named as a nominee for director of the Borrower. 
 “Cliffs Sonoma Entities” means, collectively, Cliffs Australia Washplant Operations Pty Ltd CAN 123 748 032 and Cliffs
Australia Coal Pty Ltd CAN 123 583 326. 
 “Closing Date” means the date of this Agreement or such later
Business Day upon which each condition described in Section 3.2 shall be satisfied in a manner acceptable to the Administrative Agent in its discretion. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto. 
 “Collateral Account” is defined in Section 7.4 hereof. 
 “Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Loans and to participate in Swing Loans and Letters of Credit issued for the account of the Borrower hereunder in an aggregate principal
or face amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 1 attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time
pursuant to the terms hereof. 
 “Contingent Obligation” shall mean as to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any
obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any Property constituting direct or indirect security therefor, (ii) to advance or supply funds (x) for the purchase or payment of
any such primary obligation or (y) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against
loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determinable principal amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. 
  

 6 

 “Controlled Group” means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Section 414 of the Code. 
 “Credit Event” means the advancing of any Loan, the continuation of or conversion into a Eurocurrency Loan, or the
issuance of, or extension of the expiration date or increase in the amount of, any Letter of Credit. 
 “Damages” means all damages including, without limitation, punitive damages, liabilities, costs, expenses, losses, judgments, fines, penalties, demands, claims, cost recovery actions, lawsuits, administrative proceedings,
orders, response action, removal and remedial costs, compliance costs, reasonable investigation expenses, reasonable consultant fees, reasonable attorneys’ and paralegals’ fees and reasonable litigation expenses. 
 “Default” means any event or condition the occurrence of which would, with the passage of time or the giving of notice,
or both, constitute an Event of Default. 
 “Domestic Subsidiary” means each Subsidiary that is not a
Foreign Subsidiary. 
 “EBITDA” means, with reference to any period, Net Income for such period plus
all amounts deducted in arriving at such Net Income amount in respect of (a) Interest Expense for such period, plus (b) federal, state and local income taxes paid for such period, plus (c) depreciation of fixed assets
and amortization of intangible assets for such period; provided, however, that EBITDA for any period shall (y) include the EBITDA for any Person or business unit that has been acquired by the Borrower or any of its Subsidiaries for any
portion of such period prior to the date of acquisition, and (z) exclude the EBITDA for any Person or business unit that has been disposed of by the Borrower or any of its Subsidiaries for the portion of such period prior to the date of
disposition. 
 “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an
Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent and the L/C Issuer, and (ii) unless an Event of Default has occurred and is continuing, the Borrower (each such
approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 “Environmental Claim” means any investigation, notice, violation, demand, allegation, action, suit, injunction,
judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (a) pursuant to, or in connection with an actual or alleged violation of, any Environmental Law,
(b) in connection with any Hazardous Material, (c) from any abatement, removal, remedial, corrective or response action in connection with a Hazardous Material, Environmental Law or order of a governmental authority or (d) from any
actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment. 
 “Environmental Law” means any current or future Legal Requirement pertaining to (a) the protection of the indoor or outdoor environment, (b) the conservation, management or use of 

  

 7 

 
natural resources and wildlife, (c) the protection or use of surface water or groundwater, (d) the management, manufacture, possession, presence,
use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal, remediation or handling of, or exposure to, any Hazardous Material or (e) pollution (including any Release to air, land, surface
water or groundwater), and any amendment, rule, regulation, order or directive issued thereunder. 
 “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto. 
 “Eurocurrency Loan” means a Loan bearing interest at the rate specified in Section 2.3(b) hereof. 
 “Event of Default” means any event or condition identified as such in Section 7.1 hereof. 
 “Existing Credit Agreement” is defined in Section 6.11(e). 
 “Federal Funds Rate”
means for any day the rate determined by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the Administrative Agent at approximately 11:00 a.m. (New York
time) (or as soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers selected by the Administrative Agent for sale to the Administrative
Agent at face value of Federal funds in the secondary market in an amount equal or comparable to the principal amount owed to the Administrative Agent for which such rate is being determined. 
 “Fixed Charge Coverage Ratio” means, at any time the same is to be determined, the ratio of (a) EBITDA for the four
fiscal quarters of the Borrower then ended less the sum of Capital Expenditures of the Borrower and its Subsidiaries during such period and Joint Venture Equity Investments during such period less federal, state, and local income taxes paid
by the Borrower and its Subsidiaries during such period less all dividends and other distributions paid or payable on or in respect of any class or series of Borrower’s capital stock during such period to (b) Fixed Charges for the same
four fiscal quarters then ended. 
 “Fixed Charges” means, with reference to any period, the sum of
(a) the aggregate amount of payments required to be made by the Borrower and its Subsidiaries during such period in respect of all Indebtedness (whether at maturity, as a result of sinking fund redemption, mandatory prepayment, acceleration or
otherwise) plus (b) Interest Expense for such period. 
 “Foreign Subsidiary” means each
Subsidiary which is organized under the laws of a jurisdiction other than the United States of America or any state thereof or the District of Columbia. 
 “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business. 
  

 8 

 “Funds Transfer and Deposit Account Liability” means the liability of
the Borrower or any of its Subsidiaries owing to any of the Lenders, or any Affiliates of such Lenders, arising out of (a) the execution or processing of electronic transfers of funds by automatic clearing house transfer, wire transfer or
otherwise to or from the deposit accounts of the Borrower and/or any Subsidiary now or hereafter maintained with any of the Lenders or their Affiliates, (b) the acceptance for deposit or the honoring for payment of any check, draft or other
item with respect to any such deposit accounts, and (c) any other deposit, disbursement, and cash management services afforded to the Borrower or any such Subsidiary by any of such Lenders or their Affiliates. 
 “GAAP” means generally accepted accounting principles as in effect in the United States as set forth from time to time
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. 
 “Guarantor” means each Material Subsidiary (other than Cleveland Cliffs International Holding Company) from time to time party to a Guaranty in accordance with the provisions of Section 4 hereof.
As of the Closing Date, the Guarantors are The Cleveland-Cliffs Iron Company, Cliffs Mining Company, Cliffs Sales Company, Northshore Mining Company, Cliffs Minnesota Mining Company, Silver Bay Power Company, Cliffs Empire, Inc. and Cliffs TIOP,
Inc. 
 “Guaranty” and “Guaranties” each is defined in Section 4.2 hereof. 

“Hazardous Material” means (a) any “hazardous chemical” as defined in CERCLA and (b) any material
classified or regulated as “hazardous” or “toxic” or words of like import pursuant to an Environmental Law. 
 “Hedge Agreement” means any interest rate, currency or commodity swap agreements, cap agreements, collar agreements, floor agreements, exchange agreements, forward contracts, option contracts or similar interest rate or
currency or commodity hedging arrangements. 
 “Hedging Liability” means the liability of the Borrower or
any Subsidiary to any of the Lenders, or any Affiliates of such Lenders, in respect of any Hedge Agreement as the Borrower or such Subsidiary, as the case may be, may from time to time enter into with any one or more of the Lenders party to this
Agreement or their Affiliates. 
 “Indebtedness” means for any Person (without duplication) (a) all
indebtedness of such Person for borrowed money, whether current or funded, or secured or unsecured, (b) all indebtedness for the deferred purchase price of Property or services, (c) all indebtedness created or arising under any conditional
sale or other title retention agreement with respect to Property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of a default are limited to repossession or sale of such
Property), (d) all indebtedness secured by a purchase money mortgage or other Lien to secure all or part of the purchase price of Property subject to such mortgage or Lien, (e) all obligations under leases 

  

 9 

 
which shall have been or must be, in accordance with GAAP, recorded as Capital Leases in respect of which such Person is liable as lessee, (f) any
reimbursement liability in respect of banker’s acceptances or letters of credit, (g) any indebtedness, whether or not assumed, secured by Liens on Property acquired by such Person at the time of acquisition thereof, (h) all
obligations under any so-called “synthetic lease” transaction entered into by such Person, (i) all obligations under any so-called “asset securitization” transaction entered into by such Person, and (j) all Contingent
Obligations; provided, however that the term “Indebtedness” shall not include (i) trade payables arising in the ordinary course of business, (ii) any letter of credit secured by cash or Cash Equivalents, and (iii) up
to U.S. $500,000 in obligations under the Agreement for Loan of Minnesota Investment Fund dated August 24, 2004 between United Taconite LLC and the Township of McDavitt. 
 “Interest Expense” means, with reference to any period, the sum of all interest charges (including imputed interest charges with respect to Capitalized Lease Obligations and all
amortization of debt discount and expense) of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP. 
 “Interest Period” means, with respect to Eurocurrency Loans and Swing Loans, the period commencing on the date a Borrowing of Loans is advanced, continued or created by
conversion and ending: (a) in the case of a Eurocurrency Loan, seven (7) days or 1, 2, 3, 6 or 12 months thereafter and (b) in the case of a Swing Loan, on the date 1 to 5 days thereafter as mutually agreed to by the Borrower and the
Administrative Agent; provided, however, that: 
 (i)    no Interest Period with
respect to any of the Revolving Loans or Swing Loans shall extend beyond the Termination Date; 
 (ii)    whenever the last day of any Interest Period would otherwise be a day that is not a Business Day, the last day of such Interest Period shall be extended to the next succeeding Business Day, provided that, if such
extension would cause the last day of an Interest Period for a Borrowing of Eurocurrency Loans to occur in the following calendar week, in respect of any seven (7) day Interest Period, or into another calendar month, in respect of any other
Interest Period, the last day of such Interest Period shall be the immediately preceding Business Day; and 
 (iii)    for purposes of determining an Interest Period for a Borrowing of Eurocurrency Loans, a month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next
calendar month; provided, however, that if there is no numerically corresponding day in the month in which such an Interest Period is to end or if such an Interest Period begins on the last Business Day of a calendar month, then such Interest
Period shall end on the last Business Day of the calendar month in which such Interest Period is to end. 
 “Investment” means any investment, made in cash or by delivery of property, by the Borrower or any of its Subsidiaries (i) in any Person, whether by acquisition of stock, Indebtedness or other obligation or Security,
or by loan, guaranty, advance, capital contribution or otherwise, or (ii) in Property. 
  

 10 

 “Joint Venture” means any corporation, partnership, limited liability
company or other entity or organization that has Voting Stock directly or indirectly owned by the Borrower; provided however that, notwithstanding this definition, none of the following shall be a Joint Venture hereunder: (i) any Wholly-
Owned Subsidiary, (ii) any trade creditor or customer in which the Borrower or any of its Subsidiaries has made an Investment pursuant to clause (I) of the definition of Restricted Investments, (iii) any entity or organization set
forth on Schedule 6.15(A), (iv) Amapa, and (v) any entity or organization in which the Borrower or any of its Subsidiaries has made an Investment (other than any Investment in an entity or organization that was a Joint Venture immediately
prior to such Investment) pursuant to clause (o) of the definition of Restricted Investments. 
 “Joint Venture
Equity Investments” means all Investments by the Borrower and its Subsidiaries in Joint Ventures that are not Subsidiaries of the Borrower, which Investments are made for the purpose of financing Capital Expenditures of a Joint Venture and
other obligations of a Joint Venture, other than those Investments made for the purpose of funding operating expenses of such Joint Venture. 
 “L/C Issuer” means Bank of America, N.A. 
 “L/C
Obligations” means the aggregate undrawn face amounts of all outstanding Letters of Credit and all unpaid Reimbursement Obligations. 
 “L/C Sublimit” means U.S. $0, as reduced pursuant to the terms hereof. 
 “Legal Requirement” means any treaty, convention, statute, law, regulation, ordinance, governmental approval, injunction, judgment, order, consent decree or other applicable binding requirement of any governmental
authority, whether federal, state, or local. 
 “Lenders” means and includes Bank of America, N.A., and the
other financial institutions from time to time party to this Agreement, including each assignee Lender pursuant to Section 10.10 hereof. 
 “Lending Office” is defined in Section 8.6 hereof. 
 “Letter
of Credit” is defined in Section 2.2(a) hereof. 
 “LIBOR” means, for an Interest Period for a
Borrowing of Eurocurrency Loans, (a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in U.S. Dollars or the relevant Alternative Currency in immediately available funds are offered to the Administrative Agent at 11:00 a.m. (London, England time)
2 Business Days before the beginning of such Interest Period by 3 or more major banks in the interbank eurocurrency market selected by the Administrative Agent for delivery on the first day of and for a period equal to such Interest Period
and in an amount equal or comparable to the principal amount of the Eurocurrency Loan scheduled to be made by the Administrative Agent as part of such Borrowing. 
  

 11 

 “LIBOR Index Rate” means, for any Interest Period, the rate per annum
(rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars or the relevant Alternative Currency for a period equal to such Interest Period, which appears on the appropriate Telerate
Page as of 11:00 a.m. (London, England time) on the day 2 Business Days before the commencement of such Interest Period. 
 “Lien” means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other
title retention arrangement. 
 “Loan” means any Revolving Loan or Swing Loan, whether outstanding as a Base
Rate Loan or Eurocurrency Loan or otherwise as permitted hereunder, each of which is a “type” of Loan hereunder. 
 “Loan Documents” means this Agreement, the Notes, the Applications, the Guaranties and each other instrument or document to be executed or delivered by the Borrower or any Subsidiary hereunder or thereunder or otherwise in
connection therewith, other than Hedge Agreements. 
 “Material Adverse Effect” means (a) a material
adverse change in, or material adverse effect upon, the operations, business, Property, condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Borrower or any
Subsidiary to perform its material obligations under any Loan Document or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower or any Subsidiary of any Loan Document or the rights and
remedies of the Administrative Agent and the Lenders thereunder. 
 “Material Subsidiary” shall mean and
include (i) each Wholly-Owned Subsidiary that is a Domestic Subsidiary, except any Wholly-Owned Subsidiary that is a Domestic Subsidiary and does not have (together with its Subsidiaries) (a) at the time of determination thereof,
consolidated total assets that constitute more than 10% of the consolidated total assets of the Borrower and its Subsidiaries at such time and (b) consolidated gross revenues for any fiscal year of the Borrower ending on or after
December 31, 2006, that constitute more than 10% of the consolidated gross revenues of the Borrower and its Subsidiaries during such fiscal year and (ii) each Domestic Subsidiary that the Borrower has designated to the Administrative
Agent in writing as a Material Subsidiary. As of the Closing Date, the Material Subsidiaries are The Cleveland-Cliffs Iron Company, Cliffs Mining Company, Cliffs Sales Company, Northshore Mining Company, Cliffs Minnesota Mining Company, Silver Bay
Power Company, Cliffs Empire, Inc., Cliffs TIOP, Inc., and Cleveland-Cliffs International Holding Company. 
 “Mesabi
Joint Ventures” is defined in Section 6.13 hereof. 
 “Moody’s” means Moody’s
Investors Service, Inc. 
 “Net Income” means, with reference to any period, the net income (or net loss) of
the Borrower and its Subsidiaries for such period computed on a consolidated basis in accordance with GAAP; provided that there shall be excluded from Net Income (a) the net income (or net 

  

 12 

 
loss) of any Person accrued prior to the date it becomes a Subsidiary of, or has merged into or consolidated with, the Borrower or another Subsidiary, and
(b) the net income (or net loss) of any Person (other than a Subsidiary) in which the Borrower or any of its Subsidiaries has an equity interest in, except to the extent of the amount of dividends or other distributions actually paid to the
Borrower or any of its Subsidiaries during such period. 
 “Net Worth” means, at any time the same is to be
determined, total shareholder’s equity (including capital stock, additional paid-in capital, and retained earnings after deducting treasury stock) which would appear on the balance sheet of the Borrower and its Subsidiaries determined on a
consolidated basis in accordance with GAAP. 
 “Notes” means and includes the Revolving Notes, the Swing
Note, and the Letter of Credit Note. 
 “Obligations” means all obligations of the Borrower to pay principal
and interest on the Loans, all Reimbursement Obligations owing under the Applications, all fees and charges payable hereunder, and all other payment obligations of the Borrower or any of its Subsidiaries arising under or in relation to any Loan
Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired. 
 “Other Hedging Liability” means the liability (other than any Hedging Liability) of the Borrower or any Subsidiary under any Hedge Agreement. 
 “Original Dollar Amount” means the amount of any Obligation denominated in U.S. Dollars and, in relation to any Loan
denominated in an Alternative Currency, the U.S. Dollar Equivalent of such Loan on the day it is advanced or continued for an Interest Period, and, if the applicable Interest Period is longer than three months, on each day occurring every three
months after the commencement of such Interest Period. 
 “Participant” is defined in Section 10.10(d)
hereof. 
 “Participating Interest” is defined in Section 2.2(d) hereof. 
 “Participating Lender” is defined in Section 2.2(d) hereof. 
 “Patriot Act” is defined in Section 5.24(b) hereof. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under
ERISA. 
 “Percentage” means, for each Lender, the percentage of the aggregate Commitments represented by
such Lender’s Commitment or, if the Commitments have been terminated, the percentage held by such Lender (including through participation interests in the Swing Loans and Reimbursement Obligations) of the aggregate principal amount of all
Revolving Loans, Swing Loans and L/C Obligations then outstanding. 
  

 13 

 “Permitted Acquisition” means any Acquisition with respect to which the
following condition is satisfied: after giving effect to the Acquisition, no Default or Event of Default shall exist, including with respect to the covenants contained in Section 6.19 hereof on a pro forma basis. 
 “Permitted JV Lien” is defined in Section 6.13 hereof. 
 “Permitted Investment Amount” means an amount equal to (a) U.S. $150,000,000 plus (b) 20% of positive
Consolidated Net Income for each fiscal year of the Borrower commencing with the Borrower’s fiscal year ending December 31, 2006. 
 “Permitted Lien” is defined in Section 6.12 hereof. 
 “Person” means any natural person, partnership, corporation, limited liability company, association, trust, unincorporated organization or any other entity or organization, including a government or agency or political
subdivision thereof. 
 “PinnOak Acquisition” means the acquisition by the Borrower of all equity interests
of PinnOak Resources LLC in accordance with the Unit Purchase Agreement dated June 14, 2007. 
 “Portman Limited
Facility” means the Facility Agreement dated October 24, 1997, between Portman Limited and Commonwealth Bank of Australia, as the same has been, and may further be, amended, modified, supplemented or restated from time to time, as
well as any subsequent agreements between Portman Limited and any other lender(s) entered into to replace such Facility Agreement (or its replacements). 
 “Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a
member of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a
member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions. 
 “Property” means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance
sheet of such Person and its Subsidiaries under GAAP. 
 “Project Indebtedness” is defined in
Section 6.11(c) hereof. 
 “RCRA” means the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et seq., and any future amendments. 
 “Reimbursement Obligation” is defined in Section 2.2(c) hereof. 
  

 14 

 “Related Parties” means, with respect to any Person, such Person’s
Affiliates and the partners, directors, officers, employees and agents of such Person and of such Person’s Affiliates. 
 “Release” shall mean any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing or migration into the environment. 
 “Required Lenders” means, as of the date of determination thereof, Lenders whose aggregate Commitments constitute more
than 51% of the sum of the Total Commitments, provided that if the Commitments are terminated pursuant to the terms of this Agreement, “Required Lenders” means as of the date of determination thereof, Lenders whose
outstanding Loans and interests in Swing Loans and Letters of Credit constitute more than 51% of the sum of the total outstanding Loans and interests in Letters of Credit. 
 “Reserve Percentage” means, for any Borrowing of Eurocurrency Loans, the daily average for the applicable Interest Period of the maximum rate, expressed as a decimal, at which
reserves (including, without limitation, any supplemental, marginal, and emergency reserves) are imposed during such Interest Period by the Board of Governors of the Federal Reserve System (or any successor) on “eurocurrency
liabilities”, as defined in such Board’s Regulation D (or in respect of any other category of liabilities that includes deposits by reference to which the interest rate on Eurocurrency Loans is determined or any category of
extensions of credit or other assets that include loans by non-United States offices of any Lender to United States residents), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any
transitional adjustments thereto. For purposes of this definition, the Eurocurrency Loans shall be deemed to be “eurocurrency liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or
offsets under Regulation D. 
 “Responsible Officer” shall mean any of the President, Chairman, Chief
Executive Officer, Chief Operating Officer, Vice Chairman, any Executive Vice President, Chief Financial Officer or General Counsel, of the Borrower. 
 “Restricted Investments” means all Investments except the following: 
 (a)    property, plant and equipment to be used in the ordinary course of business of the Borrower and its Subsidiaries; 
 (b)    current assets arising from the sale of goods and services in the ordinary course of business
of the Borrower and its Subsidiaries; 
 (c)    existing Investments in Subsidiaries
disclosed on Schedule 5.10 hereof; 
 (d)    (i) Permitted Acquisitions; provided
that the Borrower shall deliver to the Administrative Agent at least 10 Business Days prior to any such Acquisition a certificate confirming pro forma compliance with Section 6.19 hereof and (ii) the PinnOak Acquisition; 
  

 15 

 (e)    Investments disclosed on Schedule 6.15,
including without limitation, Schedule 6. 15(a), hereof; 
 (f)    Investments in cash
and Cash Equivalents; 
 (g)    Pledging Liability and Other Hedging Liability to any
other Person, in all cases incurred in the ordinary course of business and not for speculative purposes; 
 (h)    Contingent Obligations permitted by Section 6.11 hereof; 
 (i)    mergers and consolidations permitted by Section 6.14 hereof; 
 (j)    loans and advances to directors, employees and officers of the Borrower and its Subsidiaries for bona fide business purposes in the ordinary course of business; 
 (k)    Investments by the Borrower or any Wholly-Owned Subsidiary in or to any other Wholly-Owned
Subsidiary and Investments by any Subsidiary in the Borrower or any Wholly-Owned Subsidiary; 
 (l)    Investments in securities of trade creditors or customers in the ordinary course of business that are received (i) in settlement of bona fide disputes or pursuant to any plan of reorganization or
liquidation or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers or (ii) in the settlement of debts created in the ordinary course of business; 
 (m)    Investments in Joint Ventures (i) for the purpose of financing such entities’
(X) operating expenses incurred in the ordinary course of business and (Y) reasonable Capital Expenditures and other reasonable obligations that are accounted for by the Borrower and its Subsidiaries as increases in equity in such Joint
Ventures; 
 (n)    the Amapa Investment; provided that, in no event shall the
amount of such Investment exceed $170,000,000; 
 (o)    Investments of the Borrower and
its Subsidiaries to make acquisitions of additional mining interests or for other strategic or commercial purposes; provided that, (i) in no event shall the amount of such Investments exceed the Permitted Investment Amount and
(ii) after giving effect to any such Investment, no Default or Event of Default shall exist, including with respect to the covenants contained in Section 6.19 hereof on a pro forma basis; provided further that, in the case of any
such Investment in which the aggregate amount to be invested is greater than $20,000,000, the Borrower shall deliver to the Administrative Agent at least 10 Business Days (or such shorter period of time as is agreed to by the Administrative Agent)
prior to such Investment a certificate confirming such pro forma compliance; and 
 (p)    the Sonoma Investment; provided that, in no event shall the amount of such Investment exceed (i) $130,000,000 plus (ii) Investments permitted pursuant to clause (m) above. 

 

 16 

 “Revolving Credit” means the credit facility for making Revolving Loans
and Swing Loans and issuing Letters of Credit described in Sections 2.1, 2.2 and 2.10 hereof. 
 “Revolving
Loan” is defined in Section 2.1 hereof and, as so defined, includes a Base Rate Loan or a Eurocurrency Loan, each of which is a “type” of Revolving Loan hereunder. 
 “Revolving Note” is defined in Section 2.11 hereof. 
 “SEC” is defined in Section 6.1(f) hereof. 
 “Security” shall have the same meaning as in Section 2(1) of the Securities Act of 1933, as amended. 
 “Sonoma” means the unincorporated joint venture formed by QCoal Sonoma Pty Ltd, Watami (Qld) Pty .Ltd, CSC Sonoma Pty Ltd, JS Sonoma Pty Ltd and Cliffs Australia Coal Pty Ltd, a
wholly owned subsidiary of the Borrower, for the purpose of mining and developing a coal mine in Queensland, Australia, including the construction of a washplant by Cliffs Australia Washplant Operations Pty Ltd, an indirectly held Wholly-Owned
Subsidiary of the Borrower. 
 “Sonoma Investment” means, collectively, all Investments by the Borrower and
its Subsidiaries in Sonoma. 
 “Standard Permitted Liens” means, with respect to any Person, any of the
following: 
 (a)    inchoate Liens for the payment of taxes which are not yet due and
payable or, in the case of the Borrower or any of its Subsidiaries, the payment of which is not required by Section 6.7; 
 (b)    Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits, social security obligations, taxes, assessments, statutory obligations or
other similar charges (other than Liens arising under ERISA); 
 (c)    mechanics’,
workmen’s, materialmen’s, landlords’, carriers’ or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by appropriate proceedings
which prevent enforcement of the matter under contest; 
 (d)    Liens created by or
pursuant to this Agreement; 
 (e)    any interest or title of a lessor under any
operating lease; 
 (f)    easements, rights-of-way, restrictions, and other similar
encumbrances against real property incurred in the ordinary course of business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the
ordinary conduct of the business of such Person; 
  

 17 

 (g)    Liens of or resulting from any judgment or
award, the time for the appeal or petition for rehearing of which shall not have expired, or in respect of which such Person shall at any time in good faith be prosecuting an appeal or proceeding for a review and in respect of which a stay of
execution pending such appeal or proceeding for review shall have been secured, provided that, the aggregate amount of such judgments or awards secured by Liens permitted under this subsection, including interest and penalties thereon, if
any, shall not be in excess of $20,000,000 (except to the extent fully (excluding any deductibles or self-insured retention) covered by insurance pursuant to which the insurer has accepted liability therefor in writing) at any one time outstanding;

 (h)    Liens in the nature of royalties, dedications of reserves or similar rights or
interests granted, taken subject to or otherwise imposed on properties consistent with normal practices in the iron ore mining industry; 
 (i)    Liens incurred in the ordinary course of business to secure the performance of tenders, statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory
bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds and other similar obligations (exclusive of obligations for Indebtedness) or arising by virtue of deposits made in the ordinary course of business to
security liability for premiums to insurance carriers and/or benefit obligations to claimants; 
 (j)    leases or subleases of properties, in each case entered into in the ordinary course of business so long as such leases or subleases do not, individually or in the aggregate, (i) interfere in any material
respect with the ordinary conduct of the business of the Borrower and its Subsidiaries or (ii) materially impair the use (for its intended purposes) or the value of the Property subject thereto; 
 (k)    Liens arising out of conditional sale, title retention, consignment or similar arrangements
for the sale of goods entered into in the ordinary course of business in accordance with the past business practices of such Person, and any products or proceeds thereof to the extent covered by such Liens; 
 (l)    bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more accounts, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank with respect to cash
management and operating account arrangements, including those involving pooled accounts and netting arrangements; provided that, unless such Liens are non-consensual and arise by operation of law, in no case shall any such Liens secure
(either directly or indirectly) the repayment of any Indebtedness; 
 (m)    the filing
of UCC financing statements in connection with operating leases, consignment of goods or bailment agreements; and 
  

 18 

 (n)    Liens securing reimbursement obligations with
respect to trade or commercial letters of credit that encumber only the documents underlying such letters of credit and any products or proceeds thereof to the extent covered by such Liens. 
 “S&P” means Standard & Poor’s Ratings Services Group, a division of The McGraw-Hill Companies, Inc.

 “Subsidiary” means, as to any particular parent corporation or organization, any other corporation or
organization more than 50% of the outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by any one or more other entities which are themselves subsidiaries of such parent
corporation or organization. Unless otherwise expressly noted herein, the term “Subsidiary” means a Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries. 
 “Swing Line” means the credit facility for making one or more Swing Loans described in Section 2.10 hereof.

 “Swing Line Sublimit” means U.S. $0, as reduced pursuant to the terms hereof. 
 “Swing Loan” and “Swing Loans” each is defined in Section 2.10 hereof. 
 “Swing Note” is defined in Section 2.11 hereof. 
 “TARGET Settlement Day” means any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer
(TARGET) System is open. 
 “Telerate Page” means the display designated on the Telerate Service (or such
other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates) for the applicable currency. 
 “Termination Date” means July 24, 2008, or such earlier date on which the Commitments are terminated in whole
pursuant to Section 2.9, 7.2 or 7.3 hereof. 
 “Total Commitments” means the aggregate amount of
Commitments, which shall be One Hundred Fifty Million Dollars ($150,000,000) on the Closing Date and which may be decreased pursuant to Section 2.9 or other applicable provisions hereof. 
 “Total Consideration” means, with respect to an Acquisition, the sum (but without duplication) of (a) cash paid in
connection with any Acquisition, (b) indebtedness payable to the seller in connection with such Acquisition, (c) the fair market value of any equity securities, including any warrants or options therefor, delivered in connection with any
Acquisition, (d) the present value of covenants not to compete entered into in connection with such Acquisition or other future payments which are required to be made over a period of time and are not contingent upon the Borrower or its
Subsidiary meeting financial performance objectives (exclusive of salaries paid in the ordinary course of business) (discounted at the Base Rate), but only to the extent not included in clause (a), (b) or (c) above, and (e) the
amount of Indebtedness assumed in connection with such Acquisition. 
  

 19 

 “Total Funded Debt” means, at any time the same is to be determined, the
aggregate of all Indebtedness of the Borrower and its Subsidiaries at such time. 
 “Unfunded Vested
Liabilities” means, for any Plan at any time, the amount (if any) by which the present value of all vested nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all
determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. 
 “Unused Commitments” means, at any time, the difference between the Commitments then in effect and the aggregate
outstanding principal amount of Revolving Loans and L/C Obligations, provided that Swing Loans outstanding from time to time shall be deemed to reduce the Unused Commitment of the Administrative Agent for purposes of computing the commitment
fee under Section 2.12(a) hereof. 
 “U.S. Dollar Equivalent” means (a) the amount of any
Obligation denominated in U.S. Dollars, and (b) in relation to any Obligation denominated in an Alternative Currency, the amount of U.S. Dollars that would be realized by converting such Alternative Currency into U.S. Dollars at the exchange
rate quoted to the Administrative Agent, at approximately 11:00 a.m. (London time) three Business Days prior to the date on which a computation thereof is required to be made. 
 “U.S. Dollars” and “U.S. $” each means the lawful currency of the United States of America. 

“Voting Stock” of any Person means capital stock or other equity interests of any class or classes (however
designated) having ordinary power for the election of directors or other similar governing body of such Person (including, without limitation, general partners of a partnership), other than stock or other equity interests having such power only by
reason of the happening of a contingency. 
 “Welfare Plan” means a “welfare plan” as defined in
Section 3(1) of ERISA. 
 “Wholly-Owned Subsidiary” means, at any time, any Subsidiary all of the
Voting Stock (except directors’ qualifying shares) of which are owned by any one or more of the Borrower and the Borrower’s other Wholly-Owned Subsidiaries at such time. 
 Section 1.2    Interpretation.    The foregoing definitions are equally
applicable to both the singular and plural forms of the terms defined. The words “hereof”, “herein”, and “hereunder” and words of like import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement. All references to time of day herein are references to New York, New York time unless otherwise specifically provided. Where the character or amount of any asset or
liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP except where such principles
are inconsistent with the specific provisions of this Agreement. All terms that are used in this Agreement which are defined in the Uniform Commercial Code of the State of Ohio as in 

  

 20 

 
effect from time to time (“UCC”) shall have the same meanings herein as such terms are defined in the UCC, unless this Agreement shall
otherwise specifically provide. 
 Section 1.3    Change in Accounting
Principles.    If, after the date of this Agreement, there shall occur any change in GAAP from those used in the preparation of the financial statements referred to in Section 5.3 hereof and such change shall result in a
change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the
Borrower negotiate in good faith to amend such covenants, standards, and term so as equitably to reflect such change in accounting principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and
its Subsidiaries shall be the same as if such change had not been made. No delay by the Borrower or the Required Lenders in requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in
accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section 1.3, financial covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting
principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or
noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof. 
 SECTION 2.    THE CREDIT FACILITIES. 
 Section 2.1    Revolving Credit Commitments.    Prior to the Termination Date, each Lender severally and not jointly agrees, subject to the terms and conditions hereof, to make
revolving loans (each individually a “Revolving Loan” and, collectively, the “Revolving Loans”) in U.S. Dollars and Alternative Currencies to the Borrower from time to time in an aggregate outstanding Original
Dollar Amount up to the amount of such Lender’s Commitment; provided, however, the sum of the (i) aggregate Original Dollar Amount of Revolving Loans, (ii) the aggregate principal amount of Swing Loans and (iii) the
aggregate principal amount of L/C Obligations at any time outstanding shall not exceed the sum of all Commitments in effect at such time. Each Borrowing of Revolving Loans shall be made ratably by the Lenders in proportion to their respective
Percentages. As provided in Section 2.4(a), and subject to the terms hereof, the Borrower may elect that each Borrowing of Revolving Loans denominated in U.S. Dollars be either Base Rate Loans or Eurocurrency Loans. All Loans denominated in an
Alternative Currency shall be Eurocurrency Loans. Revolving Loans may be repaid and reborrowed before the Termination Date, subject to the terms and conditions hereof. Notwithstanding anything to the contrary contained herein, no Revolving Loans or
other extensions of credit hereunder shall be made available to the Borrower in Alternative Currencies. 
 Section
2.2    Letters of Credit.    (a) General Terms.    Subject to the terms and conditions hereof, as part of the Revolving Credit, the L/C Issuer shall issue standby
letters of credit (each a “Letter of Credit”) for the Borrower’s account, and for the benefit of the Borrower and each Material Subsidiary that has complied with Section 4.2 hereof, in an aggregate undrawn face amount up
to the L/C Sublimit; provided, however, the sum of the (i) aggregate Original Dollar Amount of Revolving Loans, (ii) the aggregate principal amount of Swing Loans and (iii) the 

  

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aggregate principal amount of L/C Obligations at any time outstanding shall not exceed the sum of all Commitments in effect at such time. Each Lender shall
be obligated to reimburse the L/C Issuer for such Lender’s Percentage of the amount of each drawing under a Letter of Credit and, accordingly, each Letter of Credit shall constitute usage of the Commitment of each Lender pro rata in an amount
equal to its Percentage of the L/C Obligations then outstanding. 
 (b)    Applications.    At any time before the Termination Date, the L/C Issuer shall, at the request of the Borrower, issue one or more Letters of Credit in U.S. Dollars, in form and substance
acceptable to the L/C Issuer, with expiration dates no later than the earlier of 12 months from the date of issuance (or which are cancelable not later than 12 months from the date of issuance and each renewal) or 30 days prior to the
Termination Date, in an aggregate face amount as set forth above, upon the receipt of a duly executed application for the relevant Letter of Credit in the form then customarily prescribed by the L/C Issuer for the Letter of Credit requested (each an
“Application”). Notwithstanding anything contained in any Application to the contrary: (i) the Borrower shall pay fees in connection with each Letter of Credit as set forth in Section 2.12(b) hereof, and (ii) if the
L/C Issuer is not timely reimbursed for the amount of any drawing under a Letter of Credit on the date such drawing is paid, the Borrower’s obligation to reimburse the L/C Issuer for the amount of such drawing shall bear interest (which the
Borrower hereby promises to pay) from and after the date such drawing is paid at a rate per annum equal to the sum of 2.0% plus the Applicable Margin plus the Base Rate from time to time in effect (computed on the basis of a year of
360 days and the actual number of days elapsed). Without limiting the foregoing, the L/C Issuer’s obligation to issue, amend or extend the expiration date of a Letter of Credit is subject to the terms or conditions of this Agreement (including
the conditions set forth in Section 3.1 and the other terms of this Section 2.2). 
 (c)    The Reimbursement Obligations.    Subject to Section 2.2(b) hereof, the obligation of the Borrower to reimburse the L/C Issuer for all drawings under a Letter of Credit (a
“Reimbursement Obligation”) shall be governed by the Application related to such Letter of Credit and this Agreement, except that reimbursement shall be made by no later than 1:00 p.m. (New York time) on the date when each drawing
is to be paid if the Borrower has been informed of such drawing by the L/C Issuer on or before 12:30 p.m. (New York time) on the date when such drawing is to be paid or, if notice of such drawing is given to the Borrower after 12:30 p.m.
(New York time) on the date when such drawing is to be paid, by 1:00 p.m. on the following Business Day in immediately available funds at the Administrative Agent’s Office, and the Administrative Agent shall thereafter cause to be distributed
to the L/C Issuer such amount(s) in like funds; provided that, with respect to drawings for which notice is given after 12:30 p.m. (New York time), if the Borrower does not reimburse the L/C issuer on the date such drawing is paid, the
Borrower shall pay to the L/C Issuer interest on such Reimbursement Obligation from the date such drawing is paid until the date such Reimbursement Obligation is due at a rate per annum (computed on the basis of 360 days and the actual days elapsed)
equal to the Applicable Margin plus the Base Rate from time to time in effect. If the Borrower does not make any such reimbursement payment on the date due and the Participating Lenders fund their participations in the manner set forth in
Section 2.2(d) below, then all payments thereafter received by the Administrative Agent in discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with Section 2.2(d) below. 
  

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 The obligations of the Borrower under this Section 2.2 shall be absolute, irrevocable and
unconditional under any and all circumstances and shall not be subject to any set-off, counterclaim or defense to payment that the Borrower may have or has had against the L/C Issuer, the Administrative Agent, any Lender or any other Person. Without
limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default, and each payment by a Borrower under this Section 2.2 shall be made without any offset, abatement, withholding or reduction
whatsoever. 
 (d)    The Participating Interests.    Each Lender (other than
the Lender acting as L/C Issuer) severally and not jointly agrees to purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell to each such Lender (a “Participating Lender”), an undivided participating interest (a
“Participating Interest”) to the extent of its Percentage in each Letter of Credit issued by, and each Reimbursement Obligation owed to, the L/C Issuer. Upon Borrower’s failure to pay any Reimbursement Obligation on the date
and at the time required, or if the L/C Issuer is required at any time to return to the Borrower or to a trustee, receiver, liquidator, custodian or other Person any portion of any payment of any Reimbursement Obligation, each Participating Lender
shall, not later than the Business Day it receives a certificate in the form of Exhibit A hereto from the L/C Issuer (with a copy to the Administrative Agent) to such effect, if such certificate is received before 2:00 p.m. (New York
time), or not later than 2:00 p.m. (New York time) the following Business Day, if such certificate is received after such time, pay to the Administrative Agent for the account of the L/C Issuer an amount equal to such Participating
Lender’s Percentage of such unpaid Reimbursement Obligation together with interest on such amount accrued from the date the L/C Issuer made the related payment to the date of such payment by such Participating Lender at a rate per annum equal
to: (i) from the date the L/C Issuer made the related payment to the date 2 Business Days after payment by such Participating Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date 2 Business
Days after the date such payment is due from such Participating Lender to the date such payment is made by such Participating Lender, the Base Rate in effect for each such day. Each such Participating Lender shall, after making its appropriate
payment, be entitled to receive its Percentage of each payment received in respect of the relevant Reimbursement Obligation and of interest paid thereon, with the L/C Issuer retaining its Percentage thereof as a Lender hereunder. 
 The several obligations of the Participating Lenders to the L/C Issuer under this Section 2.2 shall be absolute, irrevocable and
unconditional under any and all circumstances and shall not be subject to any set-off, counterclaim or defense to payment which any Participating Lender may have or has had against the Borrower, the L/C Issuer, the Administrative Agent, any Lender
or any other Person. Without limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default or by any reduction or termination of the Commitment of any Lender, and each payment by a Participating
Lender under this Section 2.2 shall be made without any offset, abatement, withholding or reduction whatsoever. 
 (e)    Indemnification.    The Participating Lenders shall, to the extent of their respective Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the Borrower) against any
cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from the L/C Issuer’s gross negligence or willful misconduct) that the L/C Issuer may suffer or incur in
connection with any Letter of Credit 

  

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issued by it. The obligations of the Participating Lenders under this Section 2.2(e) and all other parts of this Section 2.2 shall survive
termination of this Agreement and of all Applications, Letters of Credit, and all drafts and other documents presented in connection with drawings thereunder. 
 (f)    Manner of Requesting a Letter of Credit.    The Borrower shall provide at least five (5) Business Days’ advance written notice (or
such shorter period of time as agreed to by the L/C Issuer) to the Administrative Agent of each request for the issuance of a Letter of Credit, each such notice to be accompanied by a properly completed and executed Application for the requested
Letter of Credit and, in the case of an extension or an increase in the amount of a Letter of Credit, a written request therefor, in a form acceptable to the Administrative Agent and the L/C Issuer, in each case, together with the fees called for by
this Agreement. The Administrative Agent shall promptly notify the L/C Issuer of the Administrative Agent’s receipt of each such notice and the L/C Issuer shall promptly notify the Administrative Agent and the Lenders of the issuance of a
Letter of Credit. 
 Section 2.3    Applicable Interest
Rates.    (a) Base Rate Loans.    Each Base Rate Loan made or maintained by a Lender shall bear interest (computed on the basis of a year of 365 or 366 days, as applicable, and the actual
days elapsed) under the Notes on the unpaid principal amount of such Loan from the date such Loan is advanced or created by conversion from a Eurocurrency Loan until maturity (whether by acceleration or otherwise) at a rate per annum equal to the
sum of the Applicable Margin plus the Base Rate from time to time in effect, payable in arrears on the last Business Day of each month and at maturity (whether by acceleration or otherwise). 
 (b)    Eurocurrency Loans.    Each Eurocurrency Loan made or maintained by a Lender shall
bear interest under the Notes during each Interest Period it is outstanding (computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced, continued or created
by conversion from a Base Rate Loan until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Adjusted LIBOR applicable for such Interest Period, payable in arrears on the
last day of the Interest Period and at maturity (whether by acceleration or otherwise), and, if the applicable Interest Period is longer than three months, on each day occurring every three months after the commencement of such Interest Period.

 (c)    Default Rate.    While any Event of Default exists or after
acceleration, the Borrower shall pay interest under the Notes (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans owing by it at a rate per annum equal to: 
 (i)    for any Base Rate Loan or any Swing Loan bearing interest at the Base Rate, the sum of
2.0% per annum plus the Applicable Margin plus the Base Rate from time to time in effect; 
 (ii)    for any Eurocurrency Loan denominated in U.S. Dollars, the sum of 2.0% plus the rate of interest in effect thereon at the time of such Event of Default until the end of the Interest Period applicable
thereto and, thereafter, at a rate per annum equal to the 

  

 24 

 
sum of 2.0% plus the Applicable Margin for Base Rate Loans plus the Base Rate from time to time in effect; and 
 (iii)    for any Eurocurrency Loan denominated in an Alternative Currency, the sum of 2.0%
plus the rate of interest in effect thereon at the time of such Event of Default until the end of the Interest Period applicable thereto and, thereafter, at a rate per annum equal to the sum of (A) the Applicable Margin for Eurocurrency
Loans plus (B) two percent (2%) plus (C) the rate of interest per annum as determined in good faith by the Administrative Agent (rounded upwards, if necessary, to the next higher 1/100,000 of 1%) at which overnight or
weekend deposits (or, if such amount due remains unpaid more than three Business Days, then for such other period of time not longer than one month as the Administrative Agent may elect in good faith) of the relevant Alternative Currency for
delivery in immediately available and freely transferable funds would be offered by the Administrative Agent to major banks in the interbank market upon request of such major banks for the applicable period as determined above and in an amount
comparable to the unpaid principal amount of any such Eurocurrency Loan (or, if the Administrative Agent is not placing deposits in such currency in the interbank market, then the Administrative Agent’s cost of funds in such currency for such
period); and 
 provided, however, prior to acceleration, any increase in interest rates pursuant to this Section shall be made at the
election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with written notice to the Borrower. While any Event of Default exists or after acceleration, interest shall be paid on demand of the
Administrative Agent at the request or with the consent of the Required Lenders and shall be payable under the Notes. 
 (d)    Rate Determinations.    The Administrative Agent shall determine each interest rate applicable to the Loans and the Reimbursement Obligations hereunder, and its determination thereof
shall be conclusive and binding except in the case of manifest error. The Original Dollar Amount of each Eurocurrency Loan denominated in an Alternative Currency shall be determined or redetermined, as applicable, effective as of the first day of
each Interest Period applicable to such Loan. 
 Section 2.4    Manner of Borrowing
Loans and Designating Currency and Applicable Interest Rates.    (a) Notice to the Administrative Agent.    The Borrower shall give notice to the Administrative Agent by no later than 1:00 p.m.
(New York time): (i) at least four (4) Business Days before the date on which the Borrower requests the Lenders to advance a Borrowing of Eurocurrency Loans denominated in an Alternative Currency, (ii) at least 3 Business Days before
the date on which the Borrower requests the Lenders to advance a Borrowing of Eurocurrency Loans denominated in U.S. Dollars and (iii) on the date the Borrower requests the Lenders to advance a Borrowing of Base Rate Loans. The Loans included
in each Borrowing shall bear interest initially at the type of rate specified in such notice. Thereafter, the Borrower may from time to time elect to change or continue the type of interest rate borne by each Borrowing or, subject to
Section 2.5 hereof, a portion thereof, as follows: (i) if such Borrowing is of Eurocurrency Loans, on the last day of the Interest Period applicable thereto, the Borrower may continue part or all of such Borrowing as Eurocurrency Loans or,
if such Eurocurrency Loan is denominated in U.S. Dollars convert part or all of such Borrowing into Base Rate Loans or (ii) if such Borrowing is of Base Rate Loans, on any Business Day, the Borrower may convert all or 

  

 25 

 
part of such Borrowing into Eurocurrency Loans denominated in U.S. Dollars for an Interest Period or Interest Periods specified by the Borrower. The Borrower
shall give all such notices requesting the advance, continuation or conversion of a Borrowing to the Administrative Agent by telephone or telecopy (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in
writing), substantially in the form attached hereto as Exhibit B (Notice of Borrowing) or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable to the Administrative Agent. Notice of the
continuation of a Borrowing of Eurocurrency Loans denominated in U.S. Dollars for an additional Interest Period or of the conversion of part or all of a Borrowing of Base Rate Loans into Eurocurrency Loans denominated in U.S. Dollars must be given
by no later than 11:00 a.m. (New York time) at least 3 Business Days before the date of the requested continuation or conversion. Notices of the continuation of a Borrowing of Eurocurrency Loans denominated in an Alternative Currency must
be given no later than 1:00 p.m. (New York time) at least four (4) Business Days before the requested continuation. All notices concerning the advance, continuation or conversion of a Borrowing shall specify the date of the requested
advance, continuation or conversion of a Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced, continued or converted, the type of Loans to comprise such new, continued or converted Borrowing and, if such
Borrowing is to be comprised of Eurocurrency Loans, the currency and Interest Period applicable thereto. The Borrower agrees that the Administrative Agent may rely on any such telephonic or telecopy notice given by any person the Administrative
Agent in good faith believes is an Authorized Representative without the necessity of independent investigation (the Borrower hereby indemnifying the Agent from any liability or loss ensuing from such reliance) and, in the event any such notice by
telephone conflicts with any written confirmation, such telephonic notice shall govern if the Administrative Agent has acted in reliance thereon. 
 (b)    Notice to the Lenders.    The Administrative Agent shall give prompt telephonic or telecopy notice to each Lender of any notice from the Borrower received pursuant
to Section 2.4(a) above and, if such notice requests the Lenders to make Eurocurrency Loans, the Administrative Agent shall give notice to the Borrower and each Lender of the interest rate applicable thereto promptly after the Administrative
Agent has made such determination and, if such Borrowing is denominated in an Alternative Currency, shall give notice by such means to the Borrower and each Lender of the Original Dollar Amount thereof. 
 (c)    Borrower’s Failure to Notify; Automatic Continuations and Conversions.    If
the Borrower fails to give proper notice of the continuation or conversion of any outstanding Borrowing of Eurocurrency Loans denominated in U.S. Dollars before the last day of its then current Interest Period within the period required by
Section 2.4(a) or, whether or not such notice has been given, one or more of the conditions set forth in Section 3.1 for the continuation or conversion of a Borrowing of Eurocurrency Loans would not be satisfied, and such Borrowing is not
prepaid in accordance with Section 2.7(a), such Borrowing shall automatically be converted into a Borrowing of Base Rate Loans. If the Borrower fails to give proper notice of the continuation of any outstanding Borrowing of Eurocurrency Loans
denominated in an Alternative Currency before the last day of its then current Interest Period within the period required by Section 2.4(a) and has not notified the Administrative Agent within the period required by Section 2.7(a) that it
intends to prepay such Borrowing, such Borrowing shall automatically be continued as a Borrowing of Eurocurrency Loans in the same Alternative 

  

 26 

 
Currency with an Interest Period of one month. In the event the Borrower fails to give notice pursuant to Section 2.4(a) of a Borrowing equal to the
amount of a Reimbursement Obligation and has not notified the Administrative Agent by 2:00 p.m. (New York time) on the day such Reimbursement Obligation becomes due that it intends to repay such Reimbursement Obligation through funds not
borrowed under this Agreement, the Borrower shall be deemed to have requested a Borrowing of Base Rate Loans under the Revolving Credit (or, at the option of the Administrative Agent, under the Swing Line) on such day in the amount of the
Reimbursement Obligation then due, which Borrowing shall be applied to pay the Reimbursement Obligation then due. 
 (d)    Disbursement of Loans.    Not later than 2:00 p.m. (New York time) on the date of any requested advance of a new Borrowing, subject to Section 3 hereof, each Lender shall make
available its Loan comprising part of such Borrowing in funds immediately available at the Administrative Agent Office. The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative
Agent’s Office, except that if such Borrowing is denominated in an Alternative Currency each Lender shall, subject to Section 3 hereof, make available its Loan comprising part of such Borrowing at such account with such financial
institution as the Administrative Agent has previously specified in a notice to each Lender, in such funds as are then customary for the settlement of international transactions in such currency and no later than such local time as is necessary for
such funds to be received and transferred to the Borrower for same day value on the date of the Borrowing. The Administrative Agent shall make the proceeds of each new Borrowing denominated in U.S. Dollars available to the Borrower at such account
with such financial institution as the Administrative Agent has previously agreed to with the Borrower, and the Administrative Agent shall make the proceeds of each new Borrowing denominated in an Alternative Currency available at such account with
such financial institution as the Administrative Agent has previously agreed to with the Borrower, in each case in the type of funds received by the Administrative Agent from the Lenders. 
 (e)    Administrative Agent Reliance on Lender Funding.    Unless the Administrative Agent
shall have been notified by a Lender prior to (or, in the case of a Borrowing of Base Rate Loans, by 2:00 p.m. (New York time) on) the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Loan
(which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent may assume that such Lender has made such payment when due and the Administrative Agent, in reliance upon such assumption
may (but shall not be required to) make available to the Borrower the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative Agent, such Lender shall, on demand, pay to the
Administrative Agent the amount made available to the Borrower attributable to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made available to the Borrower and ending on
(but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date 2 Business Days after payment by such
Lender is due hereunder, the Federal Funds Rate for each such day, or, in the case of a Loan denominated in an Alternative Currency, the cost to the Administrative Agent of funding the amount it advanced to fund such Lender’s Loan, as
determined by the Administrative Agent and (ii) from the date 2 Business Days after the date such payment is due 

  

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from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day or in the case of a Loan denominated in an
Alternative Currency, the rate established by Section 2.3(c)(iii) for Eurocurrency Loans denominated in such currency. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the requesting Borrower
will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest rate applicable to the relevant Loan, but without such payment being considered a
payment or prepayment of a Loan under Section 8.1 hereof so that such Borrower will have no liability under such Section with respect to such payment. 
 Section 2.5    Minimum Borrowing Amounts; Maximum Eurocurrency Loans.    Each Borrowing of Base Rate Loans shall be in an amount not
less than U.S. $250,000. Each Borrowing of Eurocurrency Loans advanced, continued or converted under the Revolving Credit shall be in an amount not less than an Original Dollar Amount of U.S. $1,000,000 or such greater amount in units of the
relevant currency as would have the Original Dollar Amount most closely approximating $100,000 or an integral multiple thereof. Without the Administrative Agent’s consent, there shall not be more than five (5) Borrowings of Eurocurrency
Loans outstanding hereunder at any one time. 
 Section 2.6    Maturity of Revolving
Loans.    Each Revolving Loan and, without limiting the effect of Section 2.10 hereof, Swing Loan, both for principal and interest, shall mature and become due and payable by the Borrower on the Termination Date.

 Section
2.7    Prepayments.    (a) Voluntary.    The Borrower may prepay without premium or penalty (except as set forth in Section 8.1 below) and in whole or in part
any Borrowing of (x) Eurocurrency Loans denominated in U.S. Dollars at any time upon 3 Business Days prior notice by the Borrower to the Administrative Agent, (y) Eurocurrency Loans denominated in an Alternative Currency at any time
upon 4 Business Days prior notice by the Borrower to the Administrative Agent, or (z) Base Rate Loans, notice delivered by the Borrower to the Administrative Agent no later than 11:00 a.m. (New York time) on the date of prepayment (or, in
any case, such shorter period of time then agreed to by the Administrative Agent), such prepayment to be made by the payment of the principal amount to be prepaid and, in the case of any Eurocurrency Loans or Swing Loans, accrued interest thereon to
the date fixed for prepayment plus any amounts due the Lenders under Section 8.1 hereof; provided, however, the Borrower may not partially repay a Borrowing (i) if such Borrowing is of Base Rate Loans, in a principal amount
less than U.S. $250,000, (ii) if such Borrowing is of Eurocurrency Loans denominated in U.S. Dollars, in a principal amount less than U.S. $1,000,000, (iii) if such Borrowing is denominated in an Alternative Currency, an amount for which
the U.S. Dollar Equivalent is less than $1,000,000 and (iv) in each case, unless it is in an amount such that the minimum amount required for a Borrowing pursuant to Section 2.5 remains outstanding. 
 (b)    Mandatory.    (i) The Borrower shall, on each date the Commitments are reduced
pursuant to Section 2.9, prepay the Revolving Loans and Swing Loans and, if necessary, prefund the L/C Obligations by the amount, if any, necessary to reduce the sum of the aggregate principal amount of Revolving Loans, Swing Loans and
L/C Obligations then outstanding to the amount to which the Commitments have been so reduced. 
  

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 (ii)    If at any time the sum of the aggregate
Original Dollar Amount of the Revolving Loans, Swing Loans and the L/C Obligations then outstanding shall be in excess of the Commitments then in effect, the Borrower shall, within five days of such date and without notice or demand, pay over
the amount of the excess to the Administrative Agent for the account of the Lenders as and for a mandatory prepayment on such Obligations, with each such prepayment first to be applied to the Swing Loans then outstanding until payment in full
thereof, with any remaining balance to be applied to the Revolving Loans then outstanding until payment in full thereof, with any remaining balance to be held by the Administrative Agent in the Collateral Account as security for the Obligations
owing with respect to the Letters of Credit. 
 (iii)    Unless the Borrower otherwise
directs, prepayments of Loans under this Section 2.7(b) in U.S. Dollars shall be applied first to Borrowings of Base Rate Loans until payment in full thereof with any balance applied to Borrowings of Eurocurrency Loans denominated in U.S.
Dollars in the order in which their Interest Periods expire and prepayments made in Alternative Currencies under this Section 2.7(b) shall be applied to Borrowings in such Alternative Currency in the order in which their Interest Periods
expire. Each prepayment of Loans under this Section 2.7(b) shall be made by the payment of the principal amount to be prepaid and, in the case of any Swing Loans or Eurocurrency Loans, accrued interest thereon to the date of prepayment together
with any amounts due the Lenders under Section 8.1 hereof. Each prefunding of L/C Obligations shall be made in accordance with Section 7.4 hereof. The Administrative Agent will promptly advise each Lender of any notice of prepayment it
receives from the Borrower. 
 Section 2.8    Place and Application of
Payments.    All payments of principal of and interest on the Loans and the Reimbursement Obligations, and of all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by
the Borrower to the Administrative Agent by no later than 1:00 p.m. (New York time) on the due date thereof at the Administrative Agent office (or such other location as the Administrative Agent may designate to the Borrower) or, if such
payment is to be made in an Alternative Currency, no later than 12:00 noon local time at the place of payment at such account with such financial institution as the Administrative Agent has previously specified in a notice to the Borrower for the
benefit of the Lender or Lenders entitled thereto. Any payments received after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made (i) in U.S. Dollars, in
immediately available funds at the place of payment, or (ii) in the case of amounts payable hereunder in an Alternative Currency, in such Alternative Currency in such funds then customary for the settlement of international transactions in such
currency, in each case without deduction, set-off or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans and on Reimbursement Obligations in
which the Lenders have purchased Participating Interests ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this
Agreement. If the Administrative Agent causes amounts to be distributed to the Lenders in reliance upon the assumption that the Borrower will make a scheduled payment and such scheduled payment is not so made, each Lender shall, on demand, repay to
the Administrative Agent the amount distributed to such Lender together with interest thereon in respect of each day during the period 

  

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commencing on the date such amount was distributed to such Lender and ending on (but excluding) the date such Lender repays such amount to the Administrative
Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date 2 Business Days after payment by such Lender is due hereunder, (x) if such scheduled payment was to be made in U.S. Dollars, the Federal Funds
Rate for each such day and (y) if such scheduled payment was to be made in an Alternative Currency, the rate established by Section 2.3(c)(iii)(C) hereof for Eurocurrency Loans denominated in such currency and (ii) from the date 2
Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, (x) if such scheduled payment was to be made in U.S. Dollars, the Base Rate in effect for each such day and (y) if such
scheduled payment was to be made in an Alternative Currency, the rate per annum established by Section 2.3(c)(iii) hereof for Eurocurrency Loans denominated in such currency. 
 Anything contained herein to the contrary notwithstanding, (x) pursuant to the exercise of remedies under Sections 7.2 and 7.3 hereof or (y) after written instruction by the
Required Lenders after the occurrence and during the continuation of an Event of Default, all payments and collections received in respect of the Obligations by the Administrative Agent or any of the Lenders shall be remitted to the Administrative
Agent and distributed as follows: 
 (a)    first, to the payment of any outstanding costs and
expenses incurred by the Administrative Agent, and any security trustee therefore in protecting, preserving or enforcing rights under the Loan Documents, and in any event all costs and expenses of a character which the Borrower has agreed to pay the
Administrative Agent under Section 10.13 hereof (such funds to be retained by the Administrative Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be
remitted to the Lenders to reimburse them for payments theretofore made to the Administrative Agent); 
 (b)    second, to the payment of principal and interest on the Swing Notes until paid in full; 
 (c)    third, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; 
 (d)    fourth, to the payment of principal on the Notes, unpaid Reimbursement Obligations, together with
amounts to be held by the Administrative Agent as collateral security for any outstanding L/C Obligations pursuant to Section 7.4 hereof (until the Administrative Agent is holding an amount of cash equal to the then outstanding amount of
all such L/C Obligations), and Hedging Liability, the aggregate amount paid to, or held as collateral security for, the Lenders and, in the case of Hedging Liability, their Affiliates to be allocated pro rata in accordance with the aggregate
unpaid amounts owing to each holder thereof; 
 (e)    fifth, to the payment of all other unpaid
Obligations to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and 
 (f)    sixth, to the Borrower or whoever else may be lawfully entitled thereto. 
  

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 Section 2.9    Commitment
Terminations.    The Borrower shall have the right at any time and from time to time, upon 3 Business Days prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative
Agent), to terminate the Commitments in whole or in part, any partial termination to be (i) in an amount equal to U.S. $1,000,000 or such greater amount that is an integral multiple of U.S. $100,000 and (ii) allocated ratably among the
Lenders in proportion to their respective Percentages, provided that the Commitments may not be reduced to an amount less than the sum of the aggregate principal amount of Swing Loans and L/C Obligations and the Original Dollar Amount of
Revolving Loans then outstanding. Any termination of the Commitments below the L/C Sublimit then in effect shall reduce the L/C Sublimit by a like amount. Any termination of the Commitments below the Swing Line Sublimit then in effect
shall reduce the Swing Line Sublimit by a like amount. The Administrative Agent shall give prompt notice to each Lender of any such termination of the Commitments. Any termination of the Commitments pursuant to this Section 2.9 may not be
reinstated. 
 Section 2.10    Swing
Loans.    (a) Generally.    Subject to the terms and conditions hereof, as part of the Revolving Credit, the Administrative Agent agrees to make loans in U.S. Dollars to the Borrower under the
Swing Line (individually a “Swing Loan” and collectively the “Swing Loans”) which shall not in the aggregate at any time outstanding exceed the Swing Line Sublimit; provided, however, the sum of the
(i) aggregate Original Dollar Amount of Revolving Loans, (ii) the aggregate principal amount of Swing Loans and (iii) the aggregate principal amount of L/C Obligations at any time outstanding shall not exceed the sum of all
Commitments in effect at such time. The Swing Loans may be availed of the Borrower from time to time and borrowings thereunder may be repaid and used again during the period ending on the Termination Date; provided that each Swing Loan must
be repaid on the last day of the Interest Period applicable thereto. Each Swing Loan shall be in a minimum amount of U.S. $250,000 or such greater amount that is an integral multiple of U.S. $100,000. 
 (b)    Interest on Swing Loans.    Each Swing Loan shall bear interest until maturity
(whether by acceleration or otherwise) at a rate per annum, as selected by the Borrower in accordance with subpart (c) below, equal to (i) the sum of the Base Rate plus the Applicable Margin for Base Rate Loans from time to time in
effect (computed on the basis of a year of 360 days and the actual number of days elapsed) or (ii) the Administrative Agent’s Quoted Rate (computed on the basis of a year of 360 days for the actual number of days elapsed). Interest on
each Swing Loan shall be due and payable under the Swing Note prior to such maturity on the last day of each Interest Period applicable thereto. 
 (c)    Requests for Swing Loans.    The Borrower shall give the Administrative Agent prior notice (which may be written or oral) no later than 1:00 p.m. (New York
time) on the date upon which the Borrower requests that any Swing Loan be made, of the amount and date of such Swing Loan, and the Interest Period requested therefor. Within 30 minutes after receiving such notice, the Administrative Agent shall
in its discretion quote an interest rate to the Borrower at which the Administrative Agent would be willing to make such Swing Loan available to the Borrower for the Interest Period so requested (the rate so quoted for a given Interest Period being
herein referred to as “Administrative Agent’s Quoted Rate”). The Borrower acknowledges and agrees that the interest rate quote is given for immediate and irrevocable acceptance. If the Borrower does not so immediately accept
the Administrative Agent’s Quoted Rate for the full 

  

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amount requested by the Borrower for such Swing Loan, the Administrative Agent’s Quoted Rate shall be deemed immediately withdrawn and such Swing Loan
shall bear interest at the rate per annum determined by adding the Applicable Margin for Base Rate Loans to the Base Rate as from time to time in effect. Subject to the terms and conditions hereof, the proceeds of such Swing Loan shall be made
available to the Borrower on the date so requested at such account with such financial institution as the Administrative Agent has previously agreed to with the Borrower. Anything contained in the foregoing to the contrary notwithstanding
(i) the obligation of the Administrative Agent to make Swing Loans shall be subject to all of the terms and conditions of this Agreement and (ii) the Administrative Agent shall not be obligated to make more than one Swing Loan during any
one day. 
 (d)    Refunding of Swing Loans.    In its sole and absolute
discretion, the Administrative Agent may at any time, on behalf of the Borrower (which hereby irrevocably authorizes the Administrative Agent to act on its behalf for such purpose) and with notice to the Borrower, request each Lender to make a
Revolving Loan in the form of a Base Rate Loan in an amount equal to such Lender’s Percentage of the amount of the Swing Loans outstanding on the date such notice is given. Unless an Event of Default described in Section 7.1(j) or 7.1(k)
exists with respect to the Borrower, regardless of the existence of any other Event of Default, each Lender shall make the proceeds of its requested Revolving Loan available to the Administrative Agent, in immediately available funds, at the
Administrative Agent’s Office, before 1:00 p.m. (New York time) on the Business Day following the day such notice is given. The proceeds of such Borrowing of Revolving Loans shall be immediately applied to repay the outstanding Swing
Loans. 
 (e)    Participations.    If any Lender refuses or otherwise fails
to make a Revolving Loan when requested by the Administrative Agent pursuant to Section 2.10(d) above (because an Event of Default described in Section 7.1(j) or 7.1(k) exists with respect to the Borrower or otherwise), such Lender will,
by the time and in the manner such Revolving Loan was to have been funded to the Administrative Agent, purchase from the Administrative Agent an undivided participating interest in the outstanding Swing Loans in an amount equal to its Percentage of
the aggregate principal amount of Swing Loans that were to have been repaid with such Revolving Loans; provided that the foregoing purchases shall be deemed made hereunder without any further action by such Lender or the Administrative Agent.
Each Lender that so purchases a participation in a Swing Loan shall thereafter be entitled to receive its Percentage of each payment of principal received on the Swing Loan and of interest received thereon accruing from the date such Lender funded
to the Administrative Agent its participation in such Loan. The several obligations of the Lenders under this Section shall be absolute, irrevocable and unconditional under any and all circumstances whatsoever and shall not be subject to any
set-off, counterclaim or defense to payment that any Lender may have or have had against the Borrower, any other Lender or any other Person whatsoever. Without limiting the generality of the foregoing, such obligations shall not be affected by any
Default or Event of Default or by any reduction or termination of the Commitments of any Lender, and each payment made by a Lender under this Section shall be made without any offset, abatement, withholding or reduction whatsoever. 
 Section 2.11    The Notes.    (a) The Revolving Loans made to the
Borrower by a Lender shall be evidenced by a single promissory note of that Borrower issued to such Lender in the 

  

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form of Exhibit D-1 hereto. Each such promissory note is hereinafter referred to as a “Revolving Note” and collectively such promissory
notes are referred to as the “Revolving Notes.” 
 (b)    The Swing Loans made to
the Borrower by the Administrative Agent shall be evidenced by a single promissory note of the Borrower issued to the Administrative Agent in the form of Exhibit D-2 hereto. Such promissory note is hereinafter referred to as a “Swing
Note”. 
 (c)    In respect of the Revolving Credit and Swing Line, each Lender shall record on
its books and records or on a schedule to its appropriate Note the amount and currency and type of each Loan advanced, continued or converted by it, all payments of principal and interest and the principal balance from time to time outstanding
thereon, and, for any Eurocurrency Loan, the Interest Period and the interest rate applicable thereto. The Lender’s record thereof, whether shown on its books and records or on a schedule to the relevant Note, shall be prima facie
evidence as to all such matters; provided, however, that the failure of any Lender to record any of the foregoing or any error in any such record shall not limit or otherwise affect the obligation of the Borrower to repay all Loans made to it
together with accrued interest thereon. At the request of any Lender and upon such Lender tendering to the Borrower the appropriate Note to be replaced, the Borrower shall furnish a new Note to such Lender to replace any outstanding Note, and at
such time the first notation appearing on a schedule on the reverse side of, or attached to, such new Note shall set forth the aggregate unpaid principal amount of all Loans, if any, then outstanding thereon. 
 (d)    In respect of unpaid Reimbursement Obligations owing from the Borrower to the L/C Issuer, the L/C Issuer shall
record on its books and records or on a schedule to its Letter of Credit Note the amount of each unpaid Reimbursement Obligation and all outstanding interest and fees applicable thereon. The L/C Issuer’s record thereof, whether shown on its
books and records or on a schedule to the Letter of Credit Note, shall be prima facie evidence as to all such matters; provided, however, that the failure of the L/C Issuer to record any of the foregoing or any error in any such record
shall not limit or otherwise affect the obligation of the Borrower to pay all unpaid Reimbursement Obligations together with accrued interest and fees thereon. At the request of the L/C Issuer and upon the L/C Issuer tendering to the Borrower the
appropriate Note to be replaced, the Borrower shall furnish a new Letter of Credit Note to the L/C Issuer to replace the outstanding Letter of Credit Note, and at such time the first notation appearing on a schedule on the reverse side of, or
attached to, such new Note shall set forth the aggregate unpaid Reimbursement Obligations and interest and fees, if any, then outstanding thereon. 
 (e)    The Borrower acknowledges that the Notes are intended to evidence its Indebtedness under this Agreement. 
 Section 2.12    Fees.    (a) Commitment Fee.    The Borrower shall pay to the Administrative Agent for
the ratable account of the Lenders according to their Percentages a commitment fee at the rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days and the actual number of days elapsed) on the average daily
Unused Commitments. Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring after the date hereof) and on the Termination Date,
unless the Commitments are terminated in whole on 

  

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an earlier date, in which event the commitment fee for the period to the date of such termination in whole shall be paid on the date of such termination.

 (b)    Letter of Credit Fees.    On the date of issuance or extension, or
increase in the amount, of any Letter of Credit pursuant to Section 2.2 hereof, the Borrower shall pay to the L/C Issuer for its own account a fronting fee equal to 0.125% of the face amount of (or of the increase in the face amount of)
such Letter of Credit. Quarterly in arrears, on the last day of each March, June, September, and December, commencing on the first such date occurring after the date hereof, the Borrower shall pay to the Administrative Agent, for the ratable benefit
of the Lenders according to their Percentages, a letter of credit fee at a rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days and the actual number of days elapsed) in effect during each day of such
quarter applied to the daily average face amount of Letters of Credit outstanding during such quarter; provided that, while any Event of Default exists or after acceleration, such rate shall increase by 2% over the rate otherwise payable and
such fee shall be paid on demand of the Administrative Agent at the request or with the consent of the Required Lenders; provided however, that prior to acceleration, any rate increase pursuant to the foregoing proviso shall be made at the
direction of the Administrative Agent, acting at the request or with the consent of the Required Lenders. In addition, the Borrower shall pay to the L/C Issuer for its own account the L/C Issuer’s standard drawing, negotiation, amendment,
transfer and other administrative fees for each Letter of Credit. Such standard fees referred to in the preceding sentence may be established by the L/C Issuer from time to time. 
 Section 2.13    Hedge Agreements.    All Hedge Agreements, if any, between
the Borrower and the Subsidiaries and the Lenders and their Affiliates are independent agreements governed by the written provisions of such Hedge Agreements, which will remain in full force and effect, unaffected by any repayment, prepayment,
acceleration, reduction, increase or change in the terms of this Agreement, except as otherwise provided in such Hedge Agreements, and any payoff statement from Administrative Agent relating to this Agreement shall not apply to such Hedge
Agreements, except as otherwise expressly provided in such payoff statement. 
 SECTION 3.    CONDITIONS
PRECEDENT. 
 The obligation of each Lender to advance, continue or convert any Loan (other than the
conversion into a Base Rate Loan) or of the L/C Issuer to issue, extend the expiration date (including by not giving notice of non-renewal) of or increase the amount of any Letter of Credit under this Agreement, shall be subject to the following
conditions precedent: 
 Section 3.1    All Credit Events.    At
the time of each Credit Event hereunder: 
 (a)    each of the representations and warranties set forth
herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time, except to the extent the same expressly relate to an earlier date with respect to which such representations and warranties shall
be true and correct as of such earlier date; 
 (b)    no Default or Event of Default shall have occurred
and be continuing or would occur as a result of such Credit Event; 
  

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 (c)    in the case of any request for an extension of credit under
the Revolving Credit, after giving effect to such extension of credit, the aggregate principal amount of all Revolving Loans, Swing Loans and L/C Obligations under this Agreement shall not exceed the aggregate Commitments; 
 (d)    in the case of a Borrowing the Administrative Agent shall have received the notice required by
Section 2.4 hereof, in the case of the issuance of any Letter of Credit the L/C Issuer shall have received a duly completed Application together with any fees called for by Section 2.12 hereof, and, in the case of an extension or
increase in the amount of a Letter of Credit, a written request therefor in a form acceptable to the L/C Issuer together with fees called for by Section 2.12 hereof; and 
 (e)    such Credit Event shall not violate any order, judgment or decree of any court or other authority or any
provision of law or regulation applicable to the Administrative Agent or any Lender (including, without limitation, Regulation U of the Board of Governors of the Federal Reserve System) as then in effect. 
 Each request for a Borrowing hereunder and each request for the issuance of, increase in the amount of, or extension of the expiration
date of, a Letter of Credit shall be deemed to be a representation and warranty by the Borrower on the date of such Credit Event as to the facts specified in subsections (a) through (d), both inclusive, of this Section. 
 Section 3.2    Initial Credit Event.    Before or concurrently with the
initial Credit Event: 
 (a)    the Administrative Agent shall have received for each Lender such
Lender’s duly executed Notes of the Borrower dated the date hereof and otherwise in compliance with the provisions of Section 2.11 hereof; 
 (b)    the Administrative Agent shall have received the Guaranties duly executed by each Guarantor; 
 (c)    the Administrative Agent shall have received for each Lender copies of the Borrower’s and each Guarantor’s articles of incorporation and bylaws (or comparable organizational
documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary; 
 (d)    the Administrative Agent shall have received for each Lender copies of resolutions of the Borrower’s and each Guarantor’s Board of Directors (or similar governing body) authorizing the execution,
delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby, together with incumbency certificates and specimen signatures of the persons
authorized to execute such documents on the Borrower’s and each Guarantor’s behalf, all certified in each instance by its Secretary or Assistant Secretary; 
 (e)    the Administrative Agent shall have received for each Lender copies of the certificates of good standing, or the nearest equivalent in the relevant jurisdiction, for
the Borrower and each Guarantor (dated no earlier than 30 days prior to the date hereof) from the office of the secretary of state or other appropriate governmental department or agency of the 

  

 35 

 
state of its incorporation or organization and of each state in which it is qualified to do business as a foreign corporation or organization; 
 (f)    the Administrative Agent shall have received for each Lender a list of the Authorized Representatives;

 (g)    the Administrative Agent shall have received for itself and for the Lenders the initial fees
called for by Section 2.12 hereof; 
 (h)    the Administrative Agent shall have received for itself
the fees otherwise agreed to in writing among them and the Borrower; 
 (i)    the Administrative Agent
shall have received financing statement, tax, and judgment lien search results against the Property of the Borrower and each Guarantor evidencing the absence of Liens on its Property except for Permitted Liens; 
 (j)    the Administrative Agent shall have received for each Lender the favorable written opinion of counsel to the
Borrower and each Guarantor, in form and substance satisfactory to the Administrative Agent; and 
 (k)    the Administrative Agent shall have received for the account of the Lenders such other agreements, instruments, documents, certificates, and opinions as the Administrative Agent may reasonably request. 

SECTION 4.    THE GUARANTIES. 
 Section 4.1    Guaranties.    The payment and performance of the
Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability shall at all times be guaranteed by each Material Subsidiary (other than Cleveland-Cliffs International Holding Company) pursuant to one or more guaranty agreements in
form and substance reasonably acceptable to the Administrative Agent (as the same may be amended, modified or supplemented from time to time, individually a “Guaranty” and collectively the “Guaranties”);
provided, however, notwithstanding the foregoing, no such guaranty will be required by a Material Subsidiary if doing so could have a material adverse effect on the Borrower’s or the Material Subsidiary’s income tax liability.

 Section 4.2    Further Assurances.    In the event the
Borrower or any Subsidiary forms or acquires any other Subsidiary after the date hereof, the Borrower shall, in accordance with Section 4.2, promptly upon such formation or acquisition cause such newly formed or acquired Subsidiary to execute a
Guaranty, as the Administrative Agent may then require, and the Borrower shall also deliver to the Administrative Agent, or cause such Subsidiary to deliver to the Administrative Agent, at the Borrower’s cost and expense, such other
instruments, documents, certificates, and opinions reasonably required by the Administrative Agent in connection therewith; provided, however, notwithstanding the foregoing, no such guaranty will be required by a Material Subsidiary if doing
so could have a material adverse effect on the Borrower’s or the Material Subsidiary’s income tax liability. 
  

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 SECTION 5.    REPRESENTATIONS AND
WARRANTIES. 
 The Borrower represents and warrants to each Lender and the Administrative Agent, and agrees,
that: 
 Section 5.1    Organization and Qualification.    The
Borrower and each of its Subsidiaries (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has the power and authority to own its property and to transact the business in
which it is engaged and proposes to engage and (iii) is duly qualified and in good standing in each jurisdiction where the ownership, leasing or operation of property or the conduct of its business requires such qualification, except where the
failure to be so qualified and in good standing could not reasonably be expected to have a Material Adverse Effect. 
 Section 5.2    Authority and Enforceability.    The Borrower has full right and authority to enter into this Agreement and the other Loan Documents executed by it, to make the
borrowings herein provided for, to issue its Notes in evidence thereof, and to perform all of its obligations hereunder and under the other Loan Documents executed by it. Each Guarantor has full right and authority to enter into the Loan Documents
executed by it, to guarantee the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability and to perform all of its obligations under the Loan Documents executed by it. The Loan Documents delivered by the Borrower and by each
Guarantor have been duly authorized, executed, and delivered by such Person and constitute valid and binding obligations of such Person enforceable against it in accordance with their terms, except as enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this
Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower or any Subsidiary of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision
of law or any judgment, injunction, order or decree binding upon the Borrower or any Subsidiary or any provision of the organizational documents (e.g., charter, articles of incorporation or by-laws, articles of association or operating
agreement, partnership agreement or other similar document) of the Borrower or any Subsidiary, (b) contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower or any Subsidiary or any of its
Property, in each case where such contravention or default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (c) result in the creation or imposition of any Lien on any Property of the Borrower
or any Subsidiary. 
 Section 5.3    Financial Reports.    The
audited consolidated financial statements of the Borrower and its Subsidiaries as at December 31, 2006, and the unaudited interim consolidated financial statements of the Borrower and its Subsidiaries as at March 31, 2007, for the
3 months then ended, heretofore furnished to the Administrative Agent, fairly and adequately present, in all material respects, the consolidated financial condition of the Borrower and its Subsidiaries as at said dates and the consolidated
results of their operations and cash flows for the periods then ended in conformity with GAAP applied on a consistent basis. Neither the Borrower nor any Subsidiary has contingent liabilities or judgments, orders or injunctions against it that are
material to it other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished pursuant to Section 6.1 hereof. 
  

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 Section 5.4    No Material Adverse
Change.    Since December 31, 2006, there has been no change in the condition (financial or otherwise) the Borrower and its Subsidiaries except those occurring in the ordinary course of business, none of
which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 
 Section
5.5    Litigation and other Controversies.    Except as set forth on Schedule 5.5, there is no litigation, arbitration or governmental proceeding pending or, to the knowledge of the Borrower
and its Subsidiaries, threatened against the Borrower or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 Section 5.6    True and Complete Disclosure.    All information furnished by or on behalf of the Borrower or any of its Subsidiaries in writing to the
Administrative Agent or any Lender for purposes of or in connection with this Agreement, or any transaction contemplated herein, is true and accurate in all material respects and not incomplete by omitting to state any fact necessary to make such
information (taken as a whole) not misleading in light of the circumstances under which such information was provided; provided that to the extent any such information was based upon or constitutes a forecast or projection, the Borrower
represents only that it acted in good faith and utilized assumptions reasonable at the time made and due care in the preparation of such information, report, financial statement, exhibit or schedule. 
 Section 5.7    Use of Proceeds; Margin Stock.    (a) All proceeds of
Loans shall be used by the Borrower for working capital purposes and other general corporate purposes (including the funding of Permitted Acquisitions) of the Borrower and its Subsidiaries. No part of the proceeds of any Loan or other extension of
credit hereunder will be used by the Borrower or any Subsidiary thereof to purchase or carry any margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System) or to extend credit to others for the
purpose of purchasing or carrying any margin stock. Neither the making of any Loan or other extension of credit hereunder nor the use of the proceeds thereof will violate or be inconsistent with the provisions of Regulations T, U or X of the Board
of Governors of the Federal Reserve System and any successor to all or any portion of such regulations. Margin Stock (as defined above) constitutes less than 25% of the value of those assets of the Borrower and its Subsidiaries that are subject to
any limitation on sale, pledge or other restriction hereunder. 
 Section
5.8    Taxes.    All material tax returns required to be filed by the Borrower or any Subsidiary in any jurisdiction have, in fact, been filed, and all material taxes, assessments, fees, and
other governmental charges upon the Borrower or any Subsidiary or upon any of their Property, income or franchises, which are shown to be due and payable in such returns, have been paid except to the extent that the Borrower or any Subsidiary is
contesting the same in good faith. The Borrower does not know of any proposed additional material tax assessment against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their accounts. Adequate
provisions in accordance with GAAP for taxes on the books of the Borrower and its Subsidiaries have been made for all open years, and for the current fiscal period. 
 Section 5.9    ERISA.    The Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum
funding standards of, and is in compliance in all material respects with, ERISA and the Code to the extent applicable to it and, other than a 

  

 38 

 
liability for premiums under Section 4007 of ERISA, does not owe any liability to the PBGC or a Plan under Title IV of ERISA. Except with respect
to the Welfare Plans identified on Schedule 5.9, as of the date hereof, neither the Borrower nor any Subsidiary has any contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than liability for
continuation coverage described in article 6 of Title I of ERISA. 
 Section
5.10    Subsidiaries.    Schedule 5.10 correctly sets forth, as of the Closing Date, each Subsidiary of the Borrower, its respective jurisdiction of organization and the percentage ownership
(direct and indirect) of the Borrower in each class of capital stock or other equity interests of each of its Subsidiaries and also identifies the direct owner thereof. 
 Section 5.11    Compliance with Laws.    The Borrower and each of its Subsidiaries is in compliance with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, all governmental authority, or any subdivision thereof, in respect of the conduct of their businesses and the ownership of their property, except such noncompliances as could not
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
 Section
5.12    Environmental Matters.    The Borrower and each of its Subsidiaries is in compliance with all applicable Environmental Laws and the requirements of any permits issued under such
Environmental Laws, except to the extent that the aggregate effect of all noncompliances could not reasonably be expected to have a Material Adverse Effect. Except as disclosed in the Borrower’s most recent Form 10-K or Form 10-Q filed with the
SEC, there are no pending or, to the best knowledge of the Borrower and its Subsidiaries after due inquiry, threatened Environmental Claims, including any such claims (regardless of materiality) for liabilities under CERCLA relating to the disposal
of Hazardous Materials, against the Borrower or any of its Subsidiaries or any real property, including leaseholds, owned or operated by the Borrower or any of its Subsidiaries. There are no facts, circumstances, conditions or occurrences on any
real property, including leaseholds, owned or operated by the Borrower or any of its Subsidiaries that, to the best knowledge of the Borrower and its Subsidiaries after due inquiry, could reasonably be expected (i) to form the basis of an
Environmental Claim against the Borrower or any of its Subsidiaries or any such real property, or (ii) to cause any such real property to be subject to any restrictions on the ownership, occupancy, use or transferability of such real property
by the Borrower or any of its Subsidiaries under any applicable Environmental Law. Hazardous Materials have not been Released on or from any real property, including leaseholds, owned or operated by the Borrower or any of its Subsidiaries where the
costs of remediating such Release may reasonably be expected to have a Material Adverse Effect. 
 Section
5.13    Investment Company.    Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled” by an “investment company” within the
meaning of the Investment Company Act of 1940, as amended. 
 Section
5.14    Intellectual Property.    The Borrower and each of its Subsidiaries owns all the patents, trademarks, permits, service marks, trade names, copyrights, franchises and formulas, or rights
with respect to the foregoing, or each has obtained licenses of all other rights of whatever nature necessary for the present conduct of its businesses, in each case without any 

  

 39 

 
known conflict with the rights of others which, or the failure to obtain which, as the case may be, could reasonably be expected to result in a Material
Adverse Effect. 
 Section 5.15    Good Title.    The Borrower
and its Subsidiaries have good and marketable title, or valid leasehold interests, to their assets as reflected on the Borrower’s most recent consolidated balance sheet provided to the Administrative Agent, except for sales of assets in the
ordinary course of business, subject to no Liens, other than Permitted Liens. 
 Section
5.16    Labor Relations.    Neither the Borrower nor any of its Subsidiaries is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect. There is
no strike, labor dispute, slowdown or stoppage pending against the Borrower or any of its Subsidiaries or, to the best knowledge of the Borrower and its Subsidiaries, threatened against the Borrower or any of its Subsidiaries, except such as could
not reasonably be expected to have a Material Adverse Effect. 
 Section
5.17    Capitalization.    Except as disclosed on Schedule 5.17, as of the Closing Date, all outstanding equity interests of the Borrower and each Subsidiary have been duly authorized and validly
issued, and are fully paid and nonassessable, and there are no outstanding commitments or other obligations of the Borrower or any Subsidiary to issue, and no rights of any Person to acquire, any equity interests in the Borrower or any Subsidiary.

 Section 5.18    Other Agreements.    Neither the Borrower nor
any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting the Borrower, any Subsidiary or any of their Property, which default if uncured could reasonably be expected to have a Material Adverse Effect.

 Section 5.19    Governmental Authority and Licensing.    The
Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, local, and foreign governmental authorities, if any, necessary to conduct their businesses, in each case where the failure to obtain or maintain
the same could reasonably be expected to have a Material Adverse Effect. No investigation or proceeding with respect to any such licenses, permits and approvals that, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect is pending or, to the knowledge of the Borrower and its Subsidiaries, threatened. 
 Section
5.20    Approvals.    No authorization, consent, license or exemption from, or filing or registration with, any court or governmental department, agency or instrumentality, nor any approval or
consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower or any Subsidiary of any Loan Document, except for such approvals which have been obtained prior to the date of this Agreement and
remain in full force and effect. 
 Section 5.21    Affiliate
Transactions.    Neither the Borrower nor any Subsidiary is a party to any contract or agreement with any of its Affiliates (other than any contract or agreement between the Borrower and any Domestic Subsidiary or between any
Domestic Subsidiary and any other Domestic Subsidiary) on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between Persons not affiliated with each
other. 
  

 40 

 Section
5.22    Solvency.    The Borrower and its Subsidiaries are solvent, able to pay their debts as they become due, and have sufficient capital to carry on their business and all businesses in which
they are about to engage. 
 Section 5.23    Foreign Assets Control Regulations and
Anti-Money Laundering.    (a) OFAC.    Neither the Borrower nor any of its Subsidiaries is (i) a person whose property or interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Party and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) a person who engages in any
dealings or transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such person in any manner violative of Section 2, or (iii) a person on the list of Specially Designated Nationals and
Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order. 
 (b)    Patriot Act.    The Borrower and its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”). No part of the proceeds of the Loans will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as Amended. 
 SECTION 6.    COVENANTS. 
 The Borrower covenants and agrees that, so long as any Loans or Letters of Credit are available to the Borrower hereunder and until all
Obligations are paid in full: 
 Section 6.1    Information
Covenants.    The Borrower will furnish to the Administrative Agent, with sufficient copies for each Lender: 
 (a)    Quarterly Statements.    Within 60 days after the close of each quarterly accounting period in each fiscal year of the Borrower, the Borrower’s consolidated
balance sheet as at the end of such quarterly accounting period and the related consolidated statements of income and retained earnings and of cash flows for such quarterly accounting period and for the elapsed portion of the fiscal year ended with
the last day of such quarterly accounting period, in each case setting forth comparative figures for the related periods in the prior fiscal year, all of which shall be in reasonable detail, prepared by the Borrower in accordance with GAAP, and
certified by the chief financial officer or other officer of the Borrower acceptable to the Administrative Agent that they fairly present in all material respects in accordance with GAAP the financial condition of the Borrower and its Subsidiaries
as of the dates indicated and the results of their operations and changes in their cash flows for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes. 
 (b)    Annual Statements.    Within 90 days after the close of each fiscal year of the
Borrower, a copy of the Borrower’s consolidated balance sheet as of the last day of the fiscal year then ended and the Borrower’s consolidated statements of income, retained earnings, and 

  

 41 

 
cash flows for the fiscal year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous
fiscal year, accompanied by an unqualified opinion (as to scope and going concern) of a firm of independent public accountants of recognized national standing, selected by the Borrower and acceptable to the Administrative Agent, to the effect that
the consolidated financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results
of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with such financial statements has been made in accordance with generally accepted auditing standards. 
 (c)    Officer’s Certificates.    At the time of the delivery of the financial
statements provided for in Section 6.1(a) and (b), except for financial statements delivered pursuant to Section 6.1(a) with respect to a fiscal quarter that ends on the same date as the end of the Borrower’s fiscal year, a
certificate of the chief financial officer or other officer of the Borrower acceptable to Administrative Agent in the form of Exhibit E (x) stating no Default or Event of Default has occurred during the period covered by such statements
of, if a Default or Event of Default exists, a detailed description of the Default or Event of Default and all actions the Borrower is taking with respect to such Default or Event of Default, (y) confirming that the representations and
warranties stated in Section 5 remain true and correct in all material respects (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct of such date) and (z) showing the
Borrower’s compliance with the covenants set forth in Section 6.19 hereof. 
 (d)    Notice
of Default or Litigation.    Promptly, and in any event within five Business Days after any Responsible Officer obtains knowledge thereof, notice of (i) the occurrence of any event which constitutes a Default or an Event
of Default or any other event which could reasonably be expected to have a Material Adverse Effect, which notice shall specify the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto,
(ii) the commencement of, or threat of, or any significant development in, any litigation, labor controversy, arbitration or governmental proceeding pending against the Borrower or any of its Subsidiaries which could reasonably be expected to
have a Material Adverse Effect. 
 (e)    Other Reports and
Filings.    Promptly, copies of all financial information, proxy materials and other material information, certificates, reports, statements and completed forms, if any, which the Borrower or any of its Subsidiaries
(x) has filed with the Securities and Exchange Commission or any governmental agencies substituted therefor (the “SEC”) or any comparable agency outside of the United States or (y) has furnished to the shareholders of the
Borrower. 
 (f)    Environmental Matters.    Promptly upon, and in any event
within five Business Days after any Responsible Officer obtains knowledge thereof, notice of one or more of the following environmental matters which individually, or in the aggregate, may reasonably be expected to have a Material Adverse Effect:
(i) any notice of Environmental Claim against the Borrower or any of its Subsidiaries or any real property owned or operated by the Borrower or any of its Subsidiaries; (ii) any condition or occurrence on or arising from any real property
owned or operated by the Borrower or any of its Subsidiaries that (a) results in noncompliance 

  

 42 

 
by the Borrower or any of its Subsidiaries with any applicable Environmental Law or (b) could reasonably be expected to form the basis of an
Environmental Claim against the Borrower or any of its Subsidiaries or any such real property; (iii) any condition or occurrence on any real property owned or operated by the Borrower or any of its Subsidiaries that could reasonably be expected
to cause such real property to be subject to any restrictions on the ownership, occupancy, use or transferability by the Borrower or any of its Subsidiaries of such real property under any Environmental Law; and (iv) any removal or remedial
actions to be taken in response to the actual or alleged presence of any Hazardous Material on any real property owned or operated by the Borrower or any of its Subsidiaries as required by any Environmental Law or any governmental or other
administrative agency. All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the Borrower’s or such Subsidiary’s response thereto. In addition,
the Borrower agrees to provide the Lenders with copies of all material written communications by the Borrower or any of its Subsidiaries with any Person, government or governmental agency relating to any of the matters set forth in
clauses (i)-(iv) above, and such detailed reports relating to any of the matters set forth in clauses (i)-(iv) above as may reasonably be requested by the Administrative Agent or the Required Lenders. 
 (g)    Other Information.    From time to time, such other information or documents
(financial or otherwise) relating to the Borrower or its Subsidiaries as the Administrative Agent or any Lender may reasonably request. 
 Any items required to be delivered under Section 6.1(a), (b) or (e) need not to be separately delivered to the Administrative Agent if such items are publicly available through the SEC; provided that such items are
filed with the SEC within the time allotted in such Sections and, with respect to each such item other than a Form 10-K or a Form 10-Q, the Borrower furnishes to the Administrative Agent within the time allotted in such Sections a written or
electronic notice of such filing. 
 Section
6.2    Inspections.    The Borrower will, and will cause each of its Subsidiaries to, permit officers, representatives and agents of the Administrative Agent or any Lender, to visit and inspect
any Property of the Borrower or such Subsidiary, and to examine the books of account of the Borrower or such Subsidiary and discuss the affairs, finances and accounts of the Borrower or such Subsidiary with its and their officers and independent
accountants, all at such reasonable times upon reasonable advance notice as the Administrative Agent or any Lender may request; provided, however, that prior to the occurrence and continuance of an Event of Default, such visitations and
inspections shall be no more frequent than once per fiscal year and shall be at the sole cost and expense of the Administrative Agent or such Lender. 
 Section 6.3    Maintenance of Property, Insurance, Environmental Matters, etc.    (a) The Borrower will, and will cause each of its Subsidiaries to,
(i) keep its operating property, plant and equipment in good repair, working order and condition, normal wear and tear excepted, and shall from time to time make to all needful and proper repairs, renewals, replacements, extensions, additions,
betterments and improvements thereto so that at all times such property, plant and equipment are reasonably preserved and maintained and (ii) maintain in full force and effect with financially sound and reputable insurance companies insurance
which provides substantially the same (or greater) coverage and against at least such risks as is in accordance 

  

 43 

 
with industry practice for operating plant and equipment, and shall furnish to the Administrative Agent upon request full information as to the insurance so
carried. 
 (b)    Without limiting the generality of Section 6.3(a), the Borrower and its
Subsidiaries: (i) shall comply with, and maintain all real property in compliance with, any applicable Environmental Laws, except to the extent that the aggregate affect of all noncompliance could not reasonably be expected to have a Material
Adverse Effect; (ii) shall obtain and maintain in full force and effect all governmental approvals required for its operations at or on its properties by any applicable Environmental Laws; (iii) shall cure as soon as reasonably practicable
any violation of applicable Environmental Laws with respect to any of its properties which individually or in the aggregate may reasonably be expected to have a Material Adverse Effect; (iv) shall not, and shall not permit any other Person to,
own or operate on any of its properties any unauthorized landfill or dump or hazardous waste treatment, storage or disposal facility as defined pursuant to the RCRA, or any comparable state law, or any comparable law of any other jurisdiction; and
(v) shall not use, generate, treat, store, release or dispose of Hazardous Materials at or on any of the real property except in the ordinary course of its business and in compliance with all Environmental Laws. With respect to any Release of
Hazardous Materials, the Borrower and its Subsidiaries shall conduct any necessary or required investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other response action necessary to remove, cleanup or abate
any material quantity of Hazardous Materials released at or on any of its properties as required by any applicable Environmental Law. 
 Section 6.4    Preservation of Existence.    The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done, all things necessary to
preserve and keep in full force and effect its existence and, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect, its franchises, authority to do business, licenses, patents, trademarks, copyrights
and other proprietary rights; provided, however, that nothing in this Section 6.4 shall prevent, to the extent permitted by Section 6.15, sales of assets by the Borrower or any of its Subsidiaries, the dissolution or liquidation of
any Subsidiary of the Borrower, or the merger or consolidation between or among the Subsidiaries of the Borrower or any other transaction not expressly prohibited hereunder. 
 Section 6.5    Compliance with Laws.    The Borrower shall, and shall cause each Subsidiary to, comply in all respects with the
requirements of all federal, state, local, and foreign laws, rules, regulations, ordinances and orders applicable to its property or business operations, where any such non-compliance, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect or result in a Lien upon any of its Property other than a Permitted Lien. 
 Section
6.6    ERISA.    The Borrower shall, and shall cause each of its Subsidiaries to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or
unperformed could reasonably be expected to have a Material Adverse Effect or result in a Lien upon any of its Property. The Borrower shall, and shall cause each of its Subsidiaries to, promptly notify the Administrative Agent and each Lender of:
(a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a 

  

 44 

 
trustee therefor, (c) its intention to terminate or withdraw from any Plan for which the reporting requirements are not waived, and (d) the
occurrence of any event with respect to any Plan which would result in the incurrence by the Borrower or any of its Subsidiaries of any material liability, fine or penalty, or any material increase in the contingent liability of the Borrower or any
of its Subsidiaries with respect to any post-retirement Welfare Plan benefit. 
 Section
6.7    Payment of Taxes.    The Borrower will, and will cause each of its Subsidiaries to, pay and discharge, all taxes, assessments, fees and other governmental charges imposed upon it or any of
its Property, before becoming delinquent and before any penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by proper proceedings and as to which appropriate reserves are provided therefor, unless
and until any Lien resulting therefrom attaches to any of its Property. 
 Section
6.8    Contracts With Affiliates.    The Borrower shall not, nor shall it permit any of its Subsidiaries to, enter into any contract, agreement or business arrangement with any of its Affiliates
(other than any arrangement between the Borrower and any Domestic Subsidiary or between any Domestic Subsidiary and any other Domestic Subsidiary) on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be
usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other. 
 Section 6.9    No Changes in Fiscal Year.    The Borrower shall not change its fiscal year from its present basis. 
 Section 6.10    Change in the Nature of Business.    The Borrower
shall not, nor shall it permit any of its Subsidiaries to, engage in any business or activity if as a result the general nature of the business of the Borrower or any Subsidiary would be changed in any material respect from the general nature of the
business engaged in by it as of the Closing Date; provided, however, that the foregoing shall not prevent the acquisition by the Borrower or any of its Subsidiaries of, or the entry into, any line of business that is related or complementary
to the business in which they are engaged on the Closing Date. Notwithstanding anything to the contrary herein, the Borrower shall not permit Cleveland-Cliffs International Holding Company to (a) own any assets other than equity interests in
Foreign Subsidiaries, (b) construct, create, incur, assume or suffer to exist any Indebtedness (other than as permitted pursuant to Section 6.11(b)), and (c) create, incur or suffer to exist any Lien created for the purpose of
securing Indebtedness. 
 Section 6.11    Indebtedness.    The
Borrower will not, nor will it permit any of its Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, except; 
 (a)    the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability of the Borrower and its Subsidiaries owing to the Administrative Agent and the Lenders (and their
Affiliates); 
 (b)    intercompany Indebtedness among the Borrower and its Subsidiaries to the extent
permitted by Section 6.15; 
  

 45 

 (c)    (i) purchase money Indebtedness of the Borrower and its
Subsidiaries, including any such Indebtedness assumed in connection with a Permitted Acquisition, (ii) Capitalized Lease Obligations of the Borrower and its Subsidiaries, including any such obligations assumed in connection with a Permitted
Acquisition, and (iii) Indebtedness incurred to finance the acquisition, construction or improvement of any fixed or capital assets (“Project Indebtedness”), including any Indebtedness assumed in connection with the acquisition
of any such assets or secured by a Lien on such assets before the acquisition thereof, and any refinancings of any such Project Indebtedness; provided that, with respect to Project Indebtedness permitted by clause (iii) of this Section,
(w) such Project Indebtedness is initially incurred before or within 180 days after such acquisition or the completion of such construction or improvement, (x) such Project Indebtedness shall be secured only by the Property acquired,
constructed or improved in connection with the incurrence of such Project Indebtedness, (y) with respect to such Project Indebtedness assumed in connection with a Permitted Acquisition, the amount of such Project Indebtedness shall not exceed
60% of the Total Consideration paid in connection with such Permitted Acquisition and (z) with respect to Project Indebtedness incurred to finance the acquisition of any fixed or capital assets, such Project Indebtedness shall constitute not
less than 80% of the aggregate consideration paid with respect to such Property; 
 (d)    customer
advances for prepayment of ore sales; 
 (e)    (i) Indebtedness outstanding on the Closing Date and
listed on Schedule 6.11 and Indebtedness under the Multi-Currency Credit Agreement among the Borrower, the lenders party thereto and Fifth-Third Bank, as administrative agent, dated June 23, 2006 (as amended and as may be further amended,
restated or otherwise modified from time to time (the “Existing Credit Agreement”) and (ii) refinancings or renewal thereof; provided that any such refinancing or renewed Indebtedness is in an aggregate principal amount
not greater than the aggregate principal amount of the Indebtedness being renewed or refinanced, plus the amount of any premiums required to be paid thereon and reasonable fees and expenses associated therewith; 
 (f)    Other Hedging Liability to any Person, in all cases incurred in the ordinary course of business and not for
speculative purposes; 
 (g)    Indebtedness in respect of bid, performance, surety, reclamation or other
similar bonds or guaranties in the ordinary course of business, or any similar financial assurance obligations under Environmental Laws or worker’s compensation laws or with respect to self-insurance obligations, including guarantees or
obligations with respect to letters of credit supporting such obligations (in each case other than for an obligation for money borrowed); 
 (h)    Contingent Obligations in respect of (i) Indebtedness otherwise permitted under this Section 6.11 and under Section 6.13 and (ii) Indebtedness owed by Amapa in an amount
not to exceed U.S. $275,000,000 incurred for the purpose of financing the development and construction of an iron ore mine and related facilities (the “Amapa Project”) located in the municipality of Pedra Branca do Amapari, in the
State of Amapa, in the northern region of Brazil, a dedicated railroad for the Amapa Project and a port terminal for the Amapa Project located in Santana, State of Amapa in Brazil, and for financing working capital related thereto; provided
that such Contingent Obligations of Amapa Indebtedness shall be limited to U.S. $90,000,000; 
  

 46 

 (i)    secured Indebtedness assumed in connection with a Permitted
Acquisition; provided that, (i) such Indebtedness was not incurred in contemplation of such Permitted Acquisition, and (ii) after giving effect to the incurrence of such Indebtedness, the Borrower and its Subsidiaries would be in
pro forma compliance with the covenants set forth in Section 6.19; provided, further, that the aggregate outstanding principal amount of all such secured Indebtedness shall not exceed U.S. $30,000,000 at any time outstanding;

 (j)    Indebtedness incurred in connection with any sale/leaseback transaction permitted pursuant to
Section 6.14(e) hereof; and 
 (k)    unsecured Indebtedness of the Borrower and its Subsidiaries
not otherwise permitted by this Section, so long as, after giving effect to such Indebtedness, no Default or Event of Default shall exist, including with respect to the covenants contained in Section 6.19 hereof on a pro forma basis.

 Section 6.12    Liens.    The Borrower will not, nor will it
permit any of its Subsidiaries to, create, incur or suffer to exist any Lien on any of its Property; provided that the foregoing shall not prevent the following (the Liens described below, the “Permitted Liens”): 

(a)    Standard Permitted Liens; 
 (b)    Liens on Property of the Borrower or any Subsidiary created solely for the purpose of securing Indebtedness permitted by Section 6.11(c) hereof, representing or
incurred to finance such Property, provided that, with respect to Indebtedness described in clauses (i) and (ii) of such Section, no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the
respective Property so acquired, and the principal amount of Indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon; 
 (c)    any Lien in existence on the Closing Date and set forth on Schedule 6.12, any continuation or extension
thereof or any Lien granted as a replacement or substitute therefor; provided that any such continued, extended, replacement or substitute Lien (i) except as permitted by Section 6.11, does not secure an aggregate amount of
Indebtedness, if any, greater than that secured on the Closing Date, and (ii) does not encumber any Property other than the Property subject thereto on the Closing Date and any products or proceeds thereof to the extent covered by such Lien;

 (d)    Liens on Property of the Borrower or any Subsidiary created solely for the purpose of securing
Indebtedness permitted by Section 6.11(i); provided that any such Liens attach only to the Property acquired pursuant to such Permitted Acquisition and do not encumber any other Property (other than any products or proceeds thereof to
the extent covered by such Liens); 
 (e)    Liens on Property of the Borrower any Subsidiary created
solely for the purpose of securing Indebtedness permitted by Section 6.11(j); provided that any such Liens attach only to the Property being leased or acquired pursuant to such Indebtedness and do not encumber any other Property (other
than any products or proceeds thereof to the extent covered by such Liens); 
  

 47 

 (f)    Liens solely on any cash earnest money deposits in connection
with any letter of intent or purchase agreement entered into in connection with a Permitted Acquisition; 
 (g)    Liens on cash or Cash Equivalents securing reimbursement obligations with respect to any standby letter of credit entered into in the ordinary course of business; provided that the aggregate stated amount
of such letters of credit at any time outstanding shall not exceed U.S. $25,000,000; 
 (h)    Liens
solely on the assets of the Cliffs Sonoma Entities in favor of the Cliffs Sonoma Entities’ joint venture partners in Sonoma; provided, that such Liens shall secure only amounts owed by Sonoma and the Cliffs Sonoma Entities to such joint
venture partners; 
 (i)    other Liens with respect to obligations that do not in the aggregate exceed
U.S. $5,000,000 at any time outstanding, and 
 (j)    the Liens granted pursuant to the Existing Credit
Agreement and the documents executed in connection therewith. 
 Section
6.13    Restrictions on Joint Ventures.    The Borrower will not (a) permit any Joint Venture that is not a Subsidiary to contract, create, incur, assume or suffer to exist any Contingent
Obligations, (b) agree to the waiver of any provision existing as of the Closing Date that prohibits Liens on any of the capital stock or other equity interests of any Joint Venture, or (c) permit any Joint Venture that is not a Subsidiary
to create, incur or suffer to exist any Lien on any of its Property; provided that the foregoing shall not prevent the following (the Liens described in clauses (i) through (v) below, the “Permitted JV Liens”):

 (i)    Standard Permitted Liens; 
 (ii)    Liens on Property of such Joint Venture, which Liens are created solely for the purpose of
securing purchase money Indebtedness and Capitalized Lease Obligations of such Joint Venture and which Liens represent or were incurred to finance the purchase price of such Property; provided that no such Lien shall extend to or cover other
Property of such Joint Venture other than the respective Property so acquired, and the principal amount of Indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal
thereon; 
 (iii)    any Lien on any Property of those Joint Ventures described on
Schedule 6.13 hereof (the “Mesabi Joint Ventures”); 
 (iv)    any
Lien in existence on the Closing Date and set forth on Schedule 6.13, any continuation or extension thereof or any Lien granted as a replacement or substitute therefore; provided that any such continued, extended, replacement or
substitute Lien (i) does not secure an aggregate amount of Indebtedness, if any, greater than that secured on the Closing Date, and (ii) does not encumber any Property other than the Property subject thereto on the Closing Date and any
products or proceeds thereof to the extent covered by such Lien; 
  

 48 

 (v)    Liens on cash or Cash Equivalents securing
reimbursement obligations with respect to any standby letter of credit entered into in the ordinary course of business; 
 (vi)    Contingent Obligations of Mesabi Joint Ventures; and 
 (vii)    Indebtedness in respect of bid, performance, surety, reclamation or other similar bonds or guaranties in the ordinary course of business, or any similar financial assurance obligations under Environmental Laws
or worker’s compensation laws or with respect to self-insurance obligations, including guarantees or obligations with respect to letters of credit supporting such obligations (in each case other than for an obligation for money borrowed).

 Section 6.14    Consolidation, Merger, Sale of Assets,
etc.    The Borrower will not, nor will it permit any of its Subsidiaries to, wind up, liquidate or dissolve its affairs or agree to any merger or consolidation, or convey, sell, lease or otherwise dispose of all or any part
of its operating properties, including any disposition as part of any sale-leaseback transactions except that this Section shall not prevent: 
 (a)    the sale and lease of inventory in the ordinary course of business; 
 (b)    the sale, transfer or other disposition of any tangible personal property that, in the reasonable judgment of the Borrower or its Subsidiaries, has become uneconomic, obsolete or worn out; 
 (c)    the sale, transfer, lease, or other disposition of Property of the Borrower and its Wholly-owned Subsidiaries
to one another; 
 (d)    the merger of any Wholly-owned Subsidiary with and into the Borrower or any
other Wholly-owned Subsidiary, provided that, (i) in the case of any merger involving the Borrower, the Borrower is the legal entity surviving the merger and (ii) in the case of any merger involving a Domestic Subsidiary and a
Foreign Subsidiary, the Domestic Subsidiary is the legal entity surviving the merger; 
 (e)    the sale,
transfer, lease, or other disposition of Property of the Borrower or any Subsidiary (including any disposition of Property as part of a sale and leaseback transaction) aggregating for the Borrower and its Subsidiaries not more than U.S. $10,000,000
during any fiscal year of the Borrower; 
 (f)    the sale of Polymet Mining Corp. common stock by the
Borrower; 
 (g)    the sale of all of the stock of or all or substantially all of the assets of
(i) Cliffs Synfuel Corp. and (ii) Lasco Development Corporation; 
 (h)    any Subsidiary may
dissolve, liquidate or wind up its affairs at any time; provided that such dissolution, liquidation or winding up, as applicable, would not reasonably be expected to result in a Material Adverse Effect; 
  

 49 

 (i)    licenses or leases of real or personal property in the
ordinary course of business so long as such licenses or leases do not individually or in the aggregate interfere in any material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries; 
 (j)    licenses, sublicenses or similar transactions of intellectual property in the ordinary course of business so
long as such licenses or sublicenses or similar transactions do not individually or in the aggregate interfere in any material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries; 
 (k)    the sale or other disposition of those Investments permitted by clauses (f), (l) and (p) of the
definition of Restricted Investments; and 
 (l)    any merger or consolidation of the Borrower or any
Subsidiary in connection with a Permitted Acquisition, provided that (i) subject to the following clause (ii), in the case of any merger involving any Wholly-owned Subsidiary, the Wholly-owned Subsidiary is the legal entity
surviving the merger, (ii) in the case of any merger involving the Borrower, the Borrower is the legal entity surviving the merger, and (iii) in the case of any merger involving a Foreign Subsidiary and a Domestic Subsidiary, the Domestic
Subsidiary is the legal entity surviving the merger. 
 Section 6.15    Restricted
Investments Prohibited.    The Borrower will not, nor will it permit any of its Subsidiaries to, have, make or authorize any Restricted Investments. 
 Section 6.16    Dividends and Certain Other Restricted Payments.    After the occurrence and during the continuation of a Default or
an Event of Default, the Borrower shall not, nor shall it permit any of its Subsidiaries to, (a) declare or pay any dividends on or make any other distributions in respect of any class or series of its capital stock or other equity interests
(other than a dividend payable solely in stock or other equity interests) or (b) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its capital stock or other equity interests or any warrants, options, or similar
instruments to acquire the same; provided, however, that the foregoing shall not operate to prevent the making of dividends or distributions by any Subsidiary of the Borrower to its parent corporation. 
 Section 6.17    Limitation on Restrictions.    Except as provided on
Schedule 6.17 hereto, the Borrower will not, and it will not permit any of its Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any restriction on the ability of any such Subsidiary to
(a) pay dividends or make any other distributions on its capital stock or other equity interests owned by the Borrower or any other Subsidiary, (b) pay or repay any Indebtedness owed to the Borrower or any other Subsidiary, (c) make
loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other Subsidiary, (e) encumber or pledge any of its assets to or for the benefit of the Administrative Agent or
(f) guaranty the Obligations, Hedging Liability and Funds Transfer and Deposit Account Liability except for such restrictions existing under or by reason of (i) applicable law; (ii) this Agreement and the other Loan Documents;
(iii) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Borrower or any Subsidiary; (iv) customary provisions restricting assignment of any agreement entered into by the Borrower
or any Subsidiary in the ordinary course of business; (v) any holder of a Permitted 

  

 50 

 
Lien restricting the transfer of the Property subject thereto; (vi) customary restrictions and conditions contained in any agreement relating to the
sale of any Property permitted under Section 6.14 hereof pending the consummation of such sale; (vii) any agreement in effect at the time any Subsidiary becomes a Subsidiary, so long as such agreement was not entered into in connection
with or in contemplation of such person becoming a Subsidiary; (viii) in the case of any Joint Venture, restrictions in such person’s organizational documents or pursuant to any joint venture agreement or stockholders agreements solely to
the extent of the equity interests of or Property held in the subject Joint Venture; (ix) any agreements evidencing Indebtedness incurred pursuant to Section 6.11(c), (e), (i), (j), or (k); or (x) any encumbrances or restrictions
imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the agreements referred to in clause (vii) above; provided that such amendments or refinancings are no more materially restrictive with
respect to such encumbrances and restrictions than those prior to such amendment or refinancing. 
 Section
6.18    OFAC.    The Borrower will not, nor will it permit any of its Subsidiaries to, (i) become a person whose property or interests in property are blocked or subject to blocking pursuant
to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Party and Prohibiting Transactions With Persons Who Commit, Threaten to Commit or Support Terrorism (66 Fed. Reg. 49079(2001), (ii) engage in any
dealings or transactions prohibited by Section 2 of such executive order, or be otherwise associated with any such person in any manner violative of Section 2, or (iii) otherwise become a person on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order. 
 Section 6.19    Financial Covenants.    (a) Minimum
EBITDA.    The Borrower shall not, as of the last day of each fiscal quarter of the Borrower during the periods specified below, permit EBITDA for four fiscal quarters of the Borrower then ended to be less than $200,000,000.

 (b)    Maximum Ratio of Total Funded Debt to EBITDA.    The Borrower shall
not, as of the last day of each fiscal quarter of the Borrower, permit the ratio of Total Funded Debt at such time to EBITDA for the four fiscal quarters of the Borrower then ended to be more than 2.50 to 1.00. 
 (c)    Minimum Fixed Charge Coverage Ratio.    The Borrower shall not, as of the last day
of each fiscal quarter of the Borrower, permit the Fixed Charge Coverage Ratio at such time to be less than 3.00 to 1.00. 
 Section 6.20    Limitation on Non-Material Subsidiaries.    The Borrower shall not permit (i), at any time, the aggregate book value of the assets of all Domestic Subsidiaries
that are not Material Subsidiaries to exceed 30% of the value of the consolidated assets of the Borrower and its Subsidiaries or (ii), as of the last day of each fiscal quarter of the Borrower, the aggregate revenues of all Domestic Subsidiaries
that are not Material Subsidiaries for the four fiscal quarters of the Borrower then-ended to exceed 30% of the consolidated revenues of the Borrower and its Subsidiaries for such four fiscal quarters. 
 Section 6.21    Limitation on Assets and Operations of Cliffs Sonoma
Entities.    The Borrower shall not permit the Cliffs Sonoma Entities to own any assets other than in connection 

  

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with Sonoma and any other assets necessary or incidental thereto, and the Borrower shall not permit the Cliffs Sonoma Entities to engage in any business or
activity other than in connection with Sonoma and any other activities necessary or incidental thereto. 
 SECTION
7.    EVENTS OF DEFAULT AND REMEDIES. 
 Section 7.1    Events of Default.    Any one or more of the following shall constitute an “Event of Default” hereunder: 
 (a)    default in the payment when due (whether at the stated maturity thereof or at any other time provided for in
this Agreement) of (i) all or any part of the principal of or (ii) interest on any Note or any other Obligation payable hereunder or under any other Loan Document which in the case of this clause (ii) is not paid within
5 Business Days; 
 (b)    default in the observance or performance of any covenant set forth in
Sections 6.4, 6.11, 6.12, 6.13, 6.14, 6.15, 6.17, 6.18 or 6.19 hereof; 
 (c)    default in the
observance or performance of any other provision hereof or of any other Loan Document which is not remedied within 30 days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer or
(ii) written notice thereof is given to the Borrower by the Administrative Agent; 
 (d)    any
representation or warranty made by the Borrower or any of its Subsidiaries herein or in any other Loan Document, or in any statement or certificate furnished by it pursuant hereto or thereto, or in connection with any Loan or Letter of Credit made
or issued hereunder, proves untrue in any material respect as of the date of the issuance or making thereof; 
 (e)    any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void, or the Borrower or any of its Subsidiaries takes any action for the purpose
of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder that is not permitted hereunder; 
 (f)    default shall occur under (i) any Indebtedness of the Borrower or any of its Subsidiaries aggregating in excess of U.S. $20,000,000, or under any indenture, agreement or other
instrument under which the same may be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness (whether or not such maturity is in fact accelerated), or any such
Indebtedness shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise) or (ii) any Hedge Agreement of the Borrower or any Subsidiary with any Lender or any Affiliate of a Lender; 
 (g)    any judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or
processes, shall be entered or filed against the Borrower or any of its Subsidiaries, or against any of its Property, in an aggregate amount in excess of U.S. $20,000,000 (except to the extent fully (excluding any deductibles or self-insured
retention) covered by insurance pursuant to which the insurer has accepted liability therefor in writing), and which remains undischarged, unvacated, unbonded or unstayed for a period of 30 days; 
  

 52 

 (h)    the Borrower or any of its Subsidiaries, or any member of its
Controlled Group, shall fail to pay when due an amount or amounts aggregating in excess of U.S. $3,000,000 which it shall have become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent to terminate a Plan or
Plans having aggregate Unfunded Vested Liabilities in excess of U.S. $3,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the Borrower or any of its Subsidiaries, or any other member of its
Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding
shall be instituted by a fiduciary of any Material Plan against the Borrower or any of its Subsidiaries, or any member of its Controlled Group, to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed
within 30 days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; 
 (i)    any Change of Control shall occur; 
 (j)    the Borrower or any of its Subsidiaries shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, or any comparable law of any foreign
jurisdiction, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of
a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy
Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any corporate action in furtherance of any matter described in parts (i) through (v) above, or
(vii) fail to contest in good faith any appointment or proceeding described in Section 7.1(k) hereof; or 
 (k)    a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for the Borrower or any of its Subsidiaries, or any substantial part of any of its Property, or a proceeding described in
Section 7.1(j)(v) shall be instituted against the Borrower or any of its Subsidiaries, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days. 
 Section 7.2    Non-Bankruptcy Defaults.    When any Event of Default other
than those described in subsection (j) or (k) of Section 7.1 hereof has occurred and is continuing, the Administrative Agent shall, by written notice to the Borrower: (a) if so directed by the Required Lenders, terminate the
remaining Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof); (b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all
outstanding Notes to be forthwith due and payable and thereupon all outstanding Notes, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents
without further demand, presentment, protest or notice of any kind; and (c) if so directed by the Required Lenders, demand that the Borrower 

  

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immediately pay to the Administrative Agent the full amount then available for drawing under each or any Letter of Credit, and the Borrower agrees to
immediately make such payment and acknowledges and agrees that the Lenders would not have an adequate remedy at law for failure by the Borrower to honor any such demand and that the Administrative Agent, for the benefit of the Lenders, shall have
the right to require the Borrower to specifically perform such undertaking whether or not any drawings or other demands for payment have been made under any Letter of Credit. The Administrative Agent, after giving notice to the Borrower pursuant to
Section 7.1(c) or this Section 7.2, shall also promptly send a copy of such notice to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice. 
 Section 7.3    Bankruptcy Defaults.    When any Event of Default described
in subsections (j) or (k) of Section 7.1 hereof has occurred and is continuing, then all outstanding Notes shall immediately and automatically become due and payable together with all other amounts payable under the Loan Documents
without presentment, demand, protest or notice of any kind which are hereby waived by the Borrower, the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately and automatically terminate, the
Commitments shall immediately and automatically terminate, and the Borrower shall immediately pay to the Administrative Agent the full amount then available for drawing under all outstanding Letters of Credit, the Borrower acknowledging and agreeing
that the Lenders would not have an adequate remedy at law for failure by the Borrower to honor any such demand and that the Lenders, and the Administrative Agent on their behalf, shall have the right to require the Borrower to specifically perform
such undertaking whether or not any draws or other demands for payment have been made under any of the Letters of Credit. 
 Section 7.4    Collateral for Undrawn Letters of Credit.    (a) If the prepayment of the amount available for drawing under any or all outstanding Letters of Credit is
required under Section 2.7(b) or under Section 7.2 or 7.3 above, the Borrower shall forthwith pay the amount required to be so prepaid, to be held by the Administrative Agent as provided in subsection (b) below. 
 (b)    All amounts prepaid pursuant to subsection (a) above shall be held by the Administrative Agent in one or
more separate collateral accounts (each such account, and the credit balances, properties, and any investments from time to time held therein, and any substitutions for such account, any certificate of deposit or other instrument evidencing any of
the foregoing and all proceeds of and earnings on any of the foregoing being collectively called the “Collateral Account”) as security for, and for application by the Administrative Agent (to the extent available) to, the
reimbursement of any payment under any Letter of Credit then or thereafter made by the L/C Issuer, and to the payment of the unpaid balance of any other Obligations. The Collateral Account shall be held in the name of and subject to the exclusive
dominion and control of the Administrative Agent for the benefit of the Administrative Agent, the Lenders, and the L/C Issuer. If and when requested by the Borrower, the Administrative Agent shall invest funds held in the Collateral Account from
time to time in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America with a remaining maturity of one year or less, provided that the Administrative Agent
is irrevocably authorized to sell investments held in the Collateral Account when and as required to make payments out of the Collateral Account for application to amounts due and owing from the Borrower to the L/C Issuer, the Administrative Agent
or the Lenders; 

  

 54 

 
provided, however, that if (i) the Borrower shall have made payment of all such obligations referred to in subsection (a) above,
(ii) all relevant preference or other disgorgement periods relating to the receipt of such payments have passed, and (iii) no Letters of Credit, Commitments, Loans or other Obligations remain outstanding hereunder, then the Administrative
Agent shall release to the Borrower any remaining amounts held in the Collateral Account. 
 Section
7.5    Notice of Default.    The Administrative Agent shall give notice to the Borrower under Section 7.1(c) hereof promptly upon being requested to do so by any Lender and shall thereupon
notify all the Lenders thereof. 
 Section
7.6    Expenses.    The Borrower agrees to pay to the Administrative Agent and each Lender, and any other holder of any Note outstanding hereunder, all costs and expenses reasonably incurred or
paid by the Administrative Agent and such Lender or any such holder, including reasonable attorneys’ fees and court costs, in connection with any Default or Event of Default by the Borrower hereunder or in connection with the enforcement of any
of the Loan Documents (including all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower or any of its Subsidiaries as a debtor thereunder). 
 SECTION 8.    CHANGE IN CIRCUMSTANCES AND CONTINGENCIES.

 Section 8.1    Funding Indemnity.    If any Lender shall
incur any loss, cost or expense (including, without limitation, any loss of profit, and any loss, cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or maintain any
Eurocurrency Loan or Swing Loan or the relending or reinvesting of such deposits or amounts paid or prepaid to such Lender or by reason of breakage of interest rate swap agreements or the liquidation of other hedging contracts or agreements) as a
result of: 
 (a)    any payment, prepayment or conversion of a Eurocurrency Loan or Swing Loan on a date
other than the last day of its Interest Period, 
 (b)    any failure (because of a failure to meet the
conditions of Section 3 or otherwise) by the Borrower to borrow or continue a Eurocurrency Loan or Swing Loan, or to convert a Base Rate Loan into a Eurocurrency Loan or Swing Loan, on the date specified in a notice given pursuant to
Section 2.4(a) hereof, 
 (c)    any failure by the Borrower to make any payment of principal on any
Eurocurrency Loan or Swing Loan when due (whether by acceleration or otherwise), or 
 (d)    any
acceleration of the maturity of a Eurocurrency Loan or Swing Loan as a result of the occurrence of any Event of Default hereunder, 
 then,
upon the demand of such Lender, the Borrower shall pay to such Lender such amount as will reimburse such Lender for such loss, cost or expense. If any Lender makes such a claim for compensation, it shall provide to the Borrower, with a copy to the
Administrative Agent, a certificate setting forth the amount of such loss, cost or expense in reasonable detail (including 

  

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an explanation of the basis for and the computation of such loss, cost or expense) and the amounts shown on such certificate shall be conclusive absent
manifest error. 
 Section 8.2    Illegality.    Notwithstanding
any other provisions of this Agreement or any Note, if at any time any change in applicable law, rule or regulation or in the interpretation thereof made after the Closing Date makes it unlawful for any Lender to make or continue to maintain any
Eurocurrency Loans or to perform its obligations as contemplated hereby, such Lender shall promptly give notice thereof to the Borrower and the Administrative Agent and such Lender’s obligations to make or maintain Eurocurrency Loans under this
Agreement shall be suspended until it is no longer unlawful for such Lender to make or maintain Eurocurrency Loans. The Borrower shall prepay on demand the outstanding principal amount of any such affected Eurocurrency Loans, together with all
interest accrued thereon and all other amounts then due and payable to such Lender under this Agreement; provided, however, subject to all of the terms and conditions of this Agreement, the Borrower may then elect to borrow the principal
amount of the affected Eurocurrency Loans from such Lender by means of Base Rate Loans from such Lender, which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender. 
 Section 8.3    Unavailability of Deposits or Inability to Ascertain, or Inadequacy of,
LIBOR.    If on or prior to the first day of any Interest Period for any Borrowing of Eurocurrency Loans: 
 (a)    the Administrative Agent determines that deposits in U.S. Dollars or the applicable Alternative Currency (in the applicable amounts) are not being offered to it in the interbank eurocurrency market for such
Interest Period, or that by reason of circumstances affecting the interbank eurocurrency market adequate and reasonable means do not exist for ascertaining the applicable LIBOR, or 
 (b)    the Required Lenders advise the Administrative Agent that (i) LIBOR as determined by the Administrative
Agent will not adequately and fairly reflect the cost to such Lenders of funding their Eurocurrency Loans for such Interest Period or (ii) that the making or funding of Eurocurrency Loans become impracticable, 
 then the Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the Administrative Agent notifies the
Borrower that the circumstances giving rise to such suspension no longer exist, the obligations of the Lenders to make Eurocurrency Loans shall be suspended. 
 Section 8.4    Yield Protection.    (a) If, on or after the date hereof, the adoption of any applicable law, rule or regulation,
or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its
Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency: 
 (i)    shall subject any Lender (or its Lending Office) to any tax, duty or other charge with respect to its Eurocurrency Loans, its Notes, its Letter(s) of Credit, or its

  

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participation in any thereof, any Reimbursement Obligations owed to it or its obligation to make Eurocurrency Loans, issue a Letter of Credit, or to
participate therein, or shall change the basis of taxation of payments to any Lender (or its Lending Office) of the principal of or interest on its Eurocurrency Loans, Letter(s) of Credit, or participations therein or any other amounts due under
this Agreement or any other Loan Document in respect of its Eurocurrency Loans, Letter(s) of Credit, any participation therein, any Reimbursement Obligations owed to it, or its obligation to make Eurocurrency Loans, or issue a Letter of Credit, or
acquire participations therein (except for changes in the rate of tax on the overall net income of such Lender or its Lending Office imposed by the jurisdiction in which such Lender’s principal executive office or Lending Office is located); or

 (ii)    shall impose, modify or deem applicable any reserve, special deposit or
similar requirement (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to any Eurocurrency Loans any such requirement included in an applicable Reserve
Percentage) against assets of, deposits with or for the account of, or credit extended by, any Lender (or its Lending Office) or shall impose on any Lender (or its Lending Office) or on the interbank market any other condition affecting its
Eurocurrency Loans, its Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement Obligation owed to it, or its obligation to make Eurocurrency Loans, or to issue a Letter of Credit, or to participate therein;

 and the result of any of the foregoing is to increase the cost to such Lender (or its Lending Office) of making or maintaining any
Eurocurrency Loan, issuing or maintaining a Letter of Credit, or participating therein, or to reduce the amount of any sum received or receivable by such Lender (or its Lending Office) under this Agreement or under any other Loan Document with
respect thereto, by an amount deemed by such Lender to be material, then, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall be obligated to pay to such Lender such additional amount or
amounts as will compensate such Lender for such increased cost or reduction. 
 (b)    If, after the date
hereof, any Lender or the Administrative Agent shall have determined that the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its Lending Office) or any corporation controlling such Lender with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has had the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence
of its obligations hereunder to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect
to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount
or amounts as will compensate such Lender for such reduction. 
  

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 (c)    A certificate of a Lender claiming compensation under this
Section 8.4 and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error. In determining such amount, such Lender may use any reasonable averaging and attribution methods. 

Section 8.5    Substitution of Lenders.    Upon the receipt by the
Borrower of (a) a claim from any Lender for compensation under Section 8.4 or 10.1 hereof, (b) notice by any Lender to the Borrower of any illegality pursuant to Section 8.2 hereof or (c) in the event any Lender is in
default in any material respect with respect to its obligations under the Loan Documents (any such Lender referred to in clause (a), (b) or (c) above being hereinafter referred to as an “Affected Lender”), the
Borrower may, in addition to any other rights the Borrower may have hereunder or under applicable law, require, at its expense, any such Affected Lender to assign, at par plus accrued interest and fees, without recourse, all of its interest, rights,
and obligations hereunder (including all of its Commitments and the Loans and participation interests in Letters of Credit and other amounts at any time owing to it hereunder and the other Loan Documents) to a bank or other institutional lender
specified by the Borrower, provided that (i) such assignment shall not conflict with or violate any law, rule or regulation or order of any court or other governmental authority, (ii) if the assignment is to a Person other than a
Lender, the Borrower shall have received the written consent of the Administrative Agent and the L/C Issuer, which consents shall not be unreasonably withheld or delayed, to such assignment, (iii) the Borrower shall have paid to the Affected
Lender all monies (together with amounts due such Affected Lender under Section 8.1 hereof as if the Loans owing to it were prepaid rather than assigned) other than principal owing to it hereunder, and (iv) the assignment is entered into
in accordance with the other requirements of Section 10.10 hereof. 
 Section
8.6    Lending Offices.    Each Lender may, at its option, elect to make its Loans hereunder at the branch, office or affiliate specified on the appropriate signature page hereof (each a
“Lending Office”) for each type of Loan available hereunder or at such other of its branches, offices or affiliates as it may from time to time elect and designate in a written notice to the Borrower and the Administrative Agent. To
the extent reasonably possible, a Lender shall designate an alternative branch or funding office with respect to its Eurocurrency Loans to reduce any liability of the Borrower to such Lender under Section 8.4 hereof or to avoid the
unavailability of Eurocurrency Loans under Section 8.3 hereof, so long as such designation is not disadvantageous to the Lender. 
 Section 8.7    Discretion of Lender as to Manner of Funding.    Notwithstanding any other provision of this Agreement, each Lender shall be entitled to fund
and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder with respect to Eurocurrency Loans shall be made as if each Lender
had actually funded and maintained each Eurocurrency Loan through the purchase of deposits in the interbank eurocurrency market having a maturity corresponding to such Loan’s Interest Period, and bearing an interest rate equal to LIBOR for such
Interest Period. 
  

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 SECTION 9.    THE ADMINISTRATIVE AGENT.

 Section 9.1    Appointment and Authorization of Administrative
Agent.    Each Lender hereby appoints Bank of America, N.A., as the Administrative Agent under the Loan Documents and hereby authorizes the Administrative Agent to take such action as Administrative Agent on its behalf and to
exercise such powers under the Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto. Notwithstanding the use of the word “Administrative Agent” as
a defined term, the Lenders expressly agree that the Administrative Agent is not acting as a fiduciary of any Lender in respect of the Loan Documents, the Borrower or otherwise, and nothing herein or in any of the other Loan Documents shall result
in any duties or obligations on the Administrative Agent or any of the Lenders except as expressly set forth herein. 
 Section 9.2    Administrative Agent and its Affiliates.    The Administrative Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any
other Lender and may exercise or refrain from exercising such rights and power as though it were not the Administrative Agent, and the Administrative Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind
of business with the Borrower or any Affiliate of the Borrower as if it were not the Administrative Agent under the Loan Documents. The term “Lender” as used herein and in all other Loan Documents, unless the context otherwise
clearly requires, includes the Administrative Agent in its individual capacity as a Lender. References in Section 2 hereof to the Administrative Agent’s Loans, or to the amount owing to the Administrative Agent for which an interest rate
is being determined, refer to the Administrative Agent in its individual capacity as a Lender. 
 Section
9.3    Action by Administrative Agent.    If the Administrative Agent receives from the Borrower a written notice of an Event of Default pursuant to Section 6.1 hereof, the Administrative
Agent shall promptly give each of the Lenders written notice thereof. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action hereunder with respect to any Default or Event of Default,
except as expressly provided in the Loan Documents. The Administrative Agent may (but shall not be obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders. In no event, however,
shall the Administrative Agent be required to take any action in violation of applicable law or of any provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified in failing or refusing to act hereunder or
under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and all costs,
expense, and liability which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall be entitled to assume that no Default or Event of Default exists unless notified in writing to the contrary
by a Lender or the Borrower. In all cases in which the Loan Documents do not require the Administrative Agent to take specific action, the Administrative Agent shall be fully justified in using its discretion in failing to take or in taking any
action thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of the Obligations. 
  

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 Section 9.4    Consultation with
Experts.    The Administrative Agent may consult with legal counsel, independent public accountants, and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in
accordance with the advice of such counsel, accountants or experts. 
 Section
9.5    Liability of Administrative Agent; Credit Decision.    Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or not
taken by it in connection with the Loan Documents: (i) with the consent or at the request of the Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the Administrative Agent nor any of its
directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify: (i) any statement, warranty or representation made in connection with this Agreement, any other Loan Document or any Credit
Event; (ii) the performance or observance of any of the covenants or agreements of the Borrower or any Subsidiary contained herein or in any other Loan Document; (iii) the satisfaction of any condition specified in Section 3 hereof,
except receipt of items required to be delivered to the Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value, worth or collectibility hereof or of any other Loan Document or of any other
documents or writing furnished in connection with any Loan Document; and the Administrative Agent makes no representation of any kind or character with respect to any such matter mentioned in this sentence. The Administrative Agent may execute any
of its duties under any of the Loan Documents by or through employees, agents, and attorneys-in-fact and shall not be answerable to the Lenders, the Borrower, or any other Person for the default or misconduct of any such agents or attorneys-in-fact
selected with reasonable care. The Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent, certificate, other document or statement (whether written or oral) believed by it to be genuine or to be sent by
the proper party or parties. In particular and without limiting any of the foregoing, the Administrative Agent shall have no responsibility for confirming the accuracy of any compliance certificate or other document or instrument received by it
under the Loan Documents. The Administrative Agent may treat the payee of any Note as the holder thereof until written notice of transfer shall have been filed with the Administrative Agent signed by such payee in form satisfactory to the
Administrative Agent. Each Lender acknowledges that it has independently and without reliance on the Administrative Agent or any other Lender, and based upon such information, investigations and inquiries as it deems appropriate, made its own credit
analysis and decision to extend credit to the Borrower in the manner set forth in the Loan Documents. It shall be the responsibility of each Lender to keep itself informed as to the creditworthiness of the Borrower and its Subsidiaries, and the
Administrative Agent shall have no liability to any Lender with respect thereto. 
 Section
9.6    Indemnity.    The Lenders shall ratably, in accordance with their respective Percentages, indemnify and hold the Administrative Agent, and its directors, officers, employees, agents, and
representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions contemplated thereby, regardless of when asserted or arising, except to
the extent they are promptly reimbursed for the same by the Borrower and except to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct of the party seeking to be indemnified. The obligations of
the Lenders under this Section shall survive termination of this Agreement. The Administrative Agent shall be entitled to offset amounts received for the 

  

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account of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrative Agent hereunder (whether as fundings of
participations, indemnities or otherwise), but shall not be entitled to offset against amounts owed to the Administrative Agent by any Lender arising outside of this Agreement and the other Loan Documents. 
 Section 9.7    Resignation of Administrative Agent and Successor Administrative
Agent.    The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation of the Administrative Agent, the Required Lenders, with the consent of the
Borrower (provided that during the existence of a Default or Event of Default, such consent shall not be required), shall have the right to appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation then the retiring Administrative Agent may, on behalf of the Lenders,
appoint a successor Administrative Agent, which may be any Lender hereunder or any commercial bank organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least U.S.
$200,000,000. Upon the acceptance of its appointment as the Administrative Agent hereunder, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Administrative Agent under
the Loan Documents, and the retiring Administrative Agent shall be discharged from its duties and obligations thereunder. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this
Section 9 and all protective provisions of the other Loan Documents shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent, but no successor Administrative Agent shall in any event be
liable or responsible for any actions of its predecessor. 
 Section 9.8    L/C
Issuer.    The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith. The L/C Issuer shall have all of the benefits and immunities
(i) provided to the Administrative Agent in this Section 9 with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the Applications
pertaining to such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Section 9, included the L/C Issuer with respect to such acts or omissions and (ii) as additionally provided in this
Agreement with respect to such L/C Issuer. 
 Section 9.9    Hedging Liability and
Funds Transfer and Deposit Account Liability Arrangements.    By virtue of a Lender’s execution of this Agreement or an assignment agreement pursuant to Section 10.10 hereof, as the case may be, any Affiliate of
such Lender with whom the Borrower or any Subsidiary has entered into an agreement creating Hedging Liability or Funds Transfer and Deposit Account Liability shall be deemed a Lender party hereto for purposes of any reference in a Loan Document to
the parties for whom the Administrative Agent is acting, it being understood and agreed that the rights and benefits of such Affiliate under the Loan Documents consist exclusively of such Affiliate’s right to share in payments and collections
out of the Guaranties as more fully set forth in Section 4 hereof. In connection with any such distribution of payments and collections, the Administrative Agent shall be entitled to assume no amounts are due to any Lender or its Affiliate with
respect to Hedging Liability or Funds Transfer and Deposit Account Liability unless such Lender has notified the 

  

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Administrative Agent in writing of the amount of any such liability owed to it or its Affiliate prior to such distribution; provided, however, that
the consent of any such Affiliate shall not be required for any amendment or other modification to this Agreement or any other Loan Document or for the release of any party to any of the Guaranties. 
 SECTION 10.    MISCELLANEOUS. 
 Section 10.1    Withholding Taxes.    (a) Payments Free of Withholding.    Except as otherwise
required by law and subject to Section 10.1(b) hereof, each payment by the Borrower under this Agreement or the other Loan Documents shall be made without withholding or deduction for or on account of any present or future taxes, levies,
imposts, deductions, charges or withholdings and all liabilities with respect thereto (other than overall net income taxes on the recipient imposed by the jurisdiction in which its principal executive office or Lending Office is located) imposed by
or within the jurisdiction in which the Borrower is domiciled, any jurisdiction from which the Borrower or any other Person on behalf of the Borrower makes any payment, or (in each case) any political subdivision or taxing authority thereof or
therein. If any such withholding or deduction is so required by law, the Borrower shall make the withholding or deduction, pay the amount withheld to the appropriate governmental authority before penalties attach thereto or interest accrues thereon
and forthwith pay such additional amount as may be necessary to ensure that the net amount actually received by each Lender and the Administrative Agent free and clear of such taxes (including such taxes on such additional amount) is equal to the
amount which that Lender or the Administrative Agent (as the case may be) would have received had such withholding not been made. If the Administrative Agent or any Lender pays any amount in respect of any such taxes, penalties or interest, the
Borrower with respect to whom such payments were made shall reimburse the Administrative Agent or such Lender for that payment on demand in the currency in which such payment was made. If the Borrower pays any such taxes, penalties or interest, it
shall deliver official tax receipts evidencing that payment or certified copies thereof to the Lender or Administrative Agent on whose account such withholding was made (with a copy to the Administrative Agent if not the recipient of the original)
on or before the thirtieth day after payment. 
 (b)    U.S. Withholding Tax
Exemptions.    Each Lender that is not a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Borrower and the Administrative Agent on or before the date the initial
Credit Event is made hereunder or, if later, the date such financial institution becomes a Lender hereunder, two duly completed and signed copies of (i) either Form W-8 BEN (relating to such Lender and entitling it to a complete exemption
from withholding under the Code on all amounts to be received by such Lender, including fees, pursuant to the Loan Documents and the Obligations) or Form W-8 ECI (relating to all amounts to be received by such Lender, including fees, pursuant
to the Loan Documents and the Obligations) of the United States Internal Revenue Service or (ii) solely if such Lender is claiming exemption from United States withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a Form W-8 BEN, or any successor form prescribed by the Internal Revenue Service, and a certificate representing that such Lender is not a bank for purposes of Section 881(c) of the Code, is not
a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and is not a controlled foreign corporation related to the Borrower (within the meaning of Section 864(d)(4) of the Code). Thereafter and
from time to time, each such Lender shall submit to the Borrower and the 

  

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Administrative Agent such additional duly completed and signed copies of one or the other of such Forms (or such successor forms as shall be adopted from
time to time by the relevant United States taxing authorities) and such other certificates as may be (i) requested by the Borrower in a written notice, directly or through the Administrative Agent, to such Lender and (ii) required
under then-current United States law or regulations to avoid or reduce United States withholding taxes on payments in respect of all amounts to be received by such Lender, including fees, pursuant to the Loan Documents or the Obligations. Upon the
request of the Borrower or the Administrative Agent, each Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Borrower and the Administrative Agent a certificate to the effect
that it is such a United States person. 
 (c)    Inability of Lender to Submit
Forms.    If any Lender determines, as a result of any change in applicable law, regulation or treaty, or in any official application or interpretation thereof that occurs after the date it became a Lender hereunder, that it
is unable to submit to the Borrower or the Administrative Agent any form or certificate that such Lender is obligated to submit pursuant to subsection (b) of this Section 10.1 or that such Lender is required to withdraw or cancel any such
form or certificate previously submitted or any such form or certificate otherwise becomes ineffective or inaccurate, such Lender shall promptly notify the Borrower and Administrative Agent of such fact and the Lender shall to that extent not be
obligated to provide any such form or certificate and will be entitled to withdraw or cancel any affected form or certificate, as applicable. 
 Section 10.2    No Waiver, Cumulative Remedies.    No delay or failure on the part of the Administrative Agent or any Lender or on the part of the holder or
holders of any of the Obligations in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other
or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Administrative Agent, the Lenders and of the holder or holders of any of the Obligations are cumulative to, and not exclusive of, any
rights or remedies which any of them would otherwise have. 
 Section
10.3    Non-Business Days.    If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business
Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum
then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest. 
 Section 10.4    Documentary Taxes.    The Borrower agrees to pay on demand any documentary, stamp or similar taxes and levies that arise from any payment made under or from the
execution, delivery or registration of, performing under or otherwise with respect to this Agreement or any other Loan Document, including interest and penalties, in the event any such taxes are assessed, irrespective of when such assessment is made
and whether or not any credit is then in use or available hereunder. 
  

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 Section 10.5    Survival of
Representations.    All representations and warranties made herein or in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other
Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use or available hereunder. 
 Section 10.6    Survival of Indemnities.    All indemnities and other provisions relative to reimbursement to the Lenders of amounts
sufficient to protect the yield of the Lenders with respect to the Loans and Letters of Credit, including, but not limited to, Sections 8.1, 8.4, 10.4 and 10.13 hereof, shall survive the termination of this Agreement and the other Loan Documents and
the payment of the Obligations. 
 Section 10.7    Sharing of
Set-Off.    Each Lender agrees with each other Lender a party hereto that if such Lender shall receive and retain any payment, whether by set-off or application of deposit balances or otherwise, on any of the Loans or
Reimbursement Obligations in excess of its ratable share of payments on all such Obligations then outstanding to the Lenders, then such Lender shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders such
amount of the Loans or Reimbursement Obligations, or participations therein, held by each such other Lenders (or interest therein) as shall be necessary to cause such Lender to share such excess payment ratably with all the other Lenders;
provided, however, that if any such purchase is made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related purchases from the other Lenders shall be rescinded ratably and
the purchase price restored as to the portion of such excess payment so recovered, but without interest. For purposes of this Section, amounts owed to or recovered by the L/C Issuer in connection with Reimbursement Obligations in which Lenders have
been required to fund their participation shall be treated as amounts owed to or recovered by the L/C Issuer as a Lender hereunder. 
 Section 10.8    Notices.    (a) Except as otherwise specified herein, all notices hereunder and under the other Loan Documents shall be in writing (including, without
limitation, notice by telecopy) and shall be given to the relevant party at its address or telecopier number set forth below, or such other address or telecopier number as such party may hereafter specify by notice to the Administrative Agent and
the Borrower given by courier, by United States certified or registered mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan Documents to the Lenders and
the Administrative Agent shall be addressed to their respective addresses or telecopier numbers set forth on the signature pages hereof, and to the Borrower to: 
  

					
		 	 Cleveland-Cliffs Inc

		 	 1100 Superior Avenue

		 	 Cleveland, Ohio 44114-2589

		 	 Attention:
	  	 Secretary

		 	 Telephone:
	  	 (216) 694-5446

		 	 Telecopy:
	  	 (216) 694-6741

 Each such notice, request or other communication shall be effective (i) if given by
telecopier, when such telecopy is transmitted to the telecopier number specified in this Section or on the 

  

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signature pages hereof and a confirmation of such telecopy has been received by the sender, (ii) if given by mail, 5 days after such communication
is deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid or (iii) if given by any other means, when delivered at the addresses specified in this Section or on the signature pages hereof; provided
that any notice given pursuant to Section 2 hereof shall be effective only upon receipt. 
 (b)    Electronic mail and internet and intranet websites may be used only to distribute routine communications, such as financial statements, and to distribute Loan Documents for execution by the parties thereto, and
may not be used for any other purpose. 
 Section
10.9    Counterparts.    This Agreement may be executed in any number of counterparts, and by the different parties hereto on separate counterpart signature pages, and all such counterparts taken
together shall be deemed to constitute one and the same instrument. 
 Section
10.10    Successors and Assigns; Assignments and Participations.    (a) Successors and Assigns Generally.    The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations under any Loan Document without the prior
written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of
this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this
Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement. 
 (b)    Assignments by
Lenders.    Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, its Notes and the Loans at the
time owing to it); provided that 
 (i)    except in the case of an assignment of
the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than
U.S. $5,000,000, in the case of any assignment in respect of the Revolving Credit unless each of the Administrative Agent and, so long as no Event of Default has occurred and is 

  

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continuing, the Borrower otherwise consent (each such consent not to be unreasonably withheld or delayed); 
 (ii)    each partial assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned; 
 (iii)    any assignment of a Commitment must be approved by the Administrative Agent and the L/C Issuer unless the Person that is the proposed assignee is itself a Lender with a Commitment or
any Affiliate of any such Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and 
 (iv)    the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of U.S. $3,500, and the
Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to
acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be
a party hereto) but shall continue to be entitled to the benefits of Sections 8.4 and 10.11 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this
Section. 
 (c)    Register.    The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amounts of the Loans
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable
time and from time to time upon reasonable prior notice. 
 (d)    Participations.    Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this 

  

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Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders and
L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment or waiver described in
Sections 10.11(i) and (ii) that affects such Participant. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 8.1 and 8.4(b) to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.14 as though it were a Lender,
provided such Participant agrees to be subject to Section 10.7 as though it were a Lender. 
 (e)    Limitations upon Participant Rights.    A Participant shall not be entitled to receive any greater payment under Section 8.4(a) than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) if it were a Lender shall not be entitled to the benefits of Section 10.1(a) unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 10.1(b) as though it were a Lender. 
 (f)    Certain Pledges.    Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto. 
 (g)    Electronic Execution of
Assignments.    The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records
in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 

Section 10.11    Amendments.    Any provision of this Agreement or the
other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders, and (c) if the rights or duties of the 

  

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Administrative Agent or the L/C Issuer are affected thereby, the Administrative Agent and the L/C Issuer, as the case may be; provided that:

 (i)    no amendment or waiver pursuant to this Section 10.11 shall
(A) increase or extend any Commitment of any Lender without the consent of such Lender, (B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan or of any Reimbursement Obligation
or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan or Letter of Credit (or participate therein) hereunder or (C) change the application of payments set forth
in Section 2.8 hereof without the consent of any Lender adversely affected thereby; and 
 (ii)    no amendment or waiver pursuant to this Section 10.11 shall, unless signed by each Lender, increase the aggregate Commitments of the Lenders, change the definitions of Termination Date or Required Lenders,
change the provisions of this Section 10.11, release any material guarantor (except as otherwise provided for in the Loan Documents), affect the number of Lenders required to take any action hereunder or under any other Loan Document, or change
or waive any provision of any Loan Document that provides for the pro rata nature of disbursements by or payments to Lenders. 
 Section 10.12    Headings.    Section headings used in this Agreement are for reference only and shall not affect the construction of this Agreement.

 Section 10.13    Costs and Expenses; Indemnification.    The
Borrower agrees to pay all costs and expenses of the Administrative Agent in connection with the preparation, negotiation, syndication, and administration of the Loan Documents, including, without limitation, the reasonable fees and disbursements of
counsel to the Administrative Agent, in connection with the preparation and execution of the Loan Documents, and any amendment, waiver or consent related thereto, whether or not the transactions contemplated herein are consummated, together with any
fees and charges suffered or incurred by the Administrative Agent in connection with periodic environmental audits, fixed asset appraisals, title insurance policies, collateral filing fees and lien searches. The Borrower further agrees to indemnify
the Administrative Agent, each Lender, and their respective directors, officers, employees, agents, financial advisors, and consultants against all Damages (including, without limitation, all expenses of litigation or preparation therefor, whether
or not the indemnified Person is a party thereto, or any settlement arrangement arising from or relating to any such litigation) which any of them may pay or incur arising out of or relating to any Loan Document or any of the transactions
contemplated thereby or the direct or indirect application or proposed application of the proceeds of any Loan or Letter of Credit, other than those which arise from the gross negligence or willful misconduct of the party claiming indemnification.
The Borrower, upon demand by the Administrative Agent or a Lender at any time, shall reimburse the Administrative Agent or such Lender for any legal or other expenses incurred in connection with investigating or defending against any of the
foregoing (including any settlement costs relating to the foregoing) except if the same is directly due to the gross negligence or willful misconduct of the party to be indemnified. The obligations of the Borrower under this Section shall survive
the termination of this Agreement. 
  

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 Section
10.14    Set-off.    In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence of any Event of Default, each
Lender and each subsequent holder of any Obligation is hereby authorized by the Borrower at any time or from time to time, without notice to the Borrower or to any other Person, any such notice being hereby expressly waived, to set-off and to
appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts, and in whatever currency
denominated) and any other indebtedness at any time held or owing by that Lender or that subsequent holder to or for the credit or the account of the Borrower, whether or not matured, against and on account of the Obligations of the Borrower to that
Lender or that subsequent holder under the Loan Documents, including, but not limited to, all claims of any nature or description arising out of or connected with the Loan Documents, irrespective of whether or not (a) that Lender or that
subsequent holder shall have made any demand hereunder or (b) the principal of or the interest on the Loans or Notes and other amounts due hereunder shall have become due and payable pursuant to Section 7 and although said obligations and
liabilities, or any of them, may be contingent or unmatured. 
 Section 10.15    Entire
Agreement.    The Loan Documents constitute the entire understanding of the parties thereto with respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded
hereby. 
 Section 10.16    Governing Law.    This Agreement and
the other Loan Documents, and the rights and duties of the parties hereto, shall be construed and determined in accordance with the internal laws of the State of New York. 
 Section 10.17    Severability of Provisions.    Any provision of any Loan Document which is unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and
powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan
Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

 Section 10.18    Excess Interest.    Notwithstanding any
provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be
charged for the use or detention, or the forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess Interest”). If any Excess Interest
is provided for, or is adjudicated to be provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrower nor any guarantor or endorser shall be
obligated to pay any Excess Interest, (c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding
principal amount of Obligations 

  

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hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrower, or
(iii) any combination of the foregoing, (d) the interest rate payable hereunder or under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the
“Maximum Rate”), and this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrower nor any
guarantor or endorser shall have any action against the Administrative Agent or any Lender for any Damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest
on any of the Borrower’s Obligations is calculated at the Maximum Rate rather than the applicable rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the
Borrower’s Obligations shall remain at the Maximum Rate until the Lenders have received the amount of interest which such Lenders would have received during such period on the Borrower’s Obligations had the rate of interest not been
limited to the Maximum Rate during such period. 
 Section
10.19    Construction.    The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it
being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. 
 Section 10.20    Lender’s Obligations Several.    The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken
by the Lenders pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture or other entity. 
 Section 10.21    USA Patriot Act.    Each Lender hereby notifies the Borrower that pursuant to the requirements of the Patriot Act it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act. 
 Section 10.22    Currency.    Each reference in this Agreement to U.S.
Dollars or to an Alternative Currency (the “relevant currency”) is of the essence. To the fullest extent permitted by law, the obligation of the Borrower in respect of any amount due in the relevant currency under this Agreement
shall, notwithstanding any payment in any other currency (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the relevant currency that the Person entitled to receive such payment may, in accordance with
normal banking procedures, purchase with the sum paid in such other currency (after any premium and costs of exchange) on the Business Day immediately following the day on which such Person receives such payment. If the amount of the relevant
currency so purchased is less than the sum originally due to such Person in the relevant currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Person against such loss, and if the amount of
the specified currency so purchased exceeds the sum of (a) the amount originally due to the relevant Person in the specified currency plus (b) any amounts shared with other Lenders as a result of allocations of such excess as a
disproportionate payment 

  

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to such Person under Section 10.7 hereof, such Person agrees to remit such excess to the Borrower. 
 Section 10.23    Submission to
Jurisdiction;    Waiver of Jury Trial.    The Borrower hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any
New York State court sitting in New York County for purposes of all legal proceedings arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby. The Borrower irrevocably waives, to the
fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum. THE BORROWER, THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
  

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 [SIGNATURE PAGES TO FOLLOW] 
  

 72 

 This Agreement is entered into between us for the uses and purposes hereinabove set forth
as of the date first above written. 
  

					
	 “BORROWER”

	
	 CLEVELAND-CLIFFS INC

		
	 By:
	 	 /s/Laurie Brlas

		 	 Name:
	 	   Laurie Brlas

		 	 Title:
	 	   Senior Vice President, Chief Financial
   Officer and Treasurer

  

 73 

					
	 “ADMINISTRATIVE AGENT”

	
	 BANK OF AMERICA, N.A., as Administrative Agent

		
	 By:
	 	 /s/William Faidell

		 	 Name:
	 	   William Faidell

		 	 Title:
	 	   Agency Management Officer, AVP

	
	 Address:

	
	 100 Federal Street

	 Boston, MA 02110

	 Telecopy: 617.434-2456

	 Telephone: 617.434-0474

  

 74 

					
	 BANK OF AMERICA, N.A., as a Lender and as
L/C Issuer

		
	 By:
	 	 /s/Kenneth Wood

		 	 Name:
	 	   Kenneth Wood

		 	 Title:
	 	   Senior Vice President

	
	 Address:

	
	 Four Penn Center STE 1100

	 1600 JFK BLVD

	 Philadelphia, PA 19103

	 Telecopy: 267.675.0209

	 Telephone: 267.675.0219

  

 75 

					
	 JPMORGAN CHASE BANK, NA as a Lender

		
	 By:
	 	 /s/W. Gregory Schmid

		 	 Name:
	 	   W. Gregory Schmid

		 	 Title:
	 	   Sr. Vice President

	
	 Address:

	
	 1301 E. 9th St. Suite 1300

	 OH2-9428

	 Cleveland, OH 44114

	 Telecopy: 216-781-2271

	 Telephone: 216-781-2519

  

 76 

					
	 KEYBANK NATIONAL ASSOCIATION, as a Lender

		
	 By:
	 	 /s/Thomas J. Purcell

		 	 Name:
	 	   Thomas J. Purcell

		 	 Title:
	 	   Senior Vice President

	
	 Address:

	
	 127 Public Square

	 Cleveland, Ohio

	 44114

	 Telecopy: 216-689-4649

	 Telephone: 216-689-3589

  

 77 

					
	 FIFTH THIRD BANK, as a Lender

		
	 By:
	 	 /s/RC Lanctot

		 	 Name:
	 	   Roy C. Lanctot

		 	 Title:
	 	   Vice President

	
	 Address:

	
	 600 Superior Avenue East

	 Cleveland, Ohio 44114

	 Telecopy: 216.274.5621

	 Telephone: 216.273.5473

  

 78

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