Document:

EX-4.2

 Exhibit 4.2 
  

 
  

HCA INC., 
 as Issuer, 

HCA HEALTHCARE, INC., 
 as Parent
Guarantor, 
 DELAWARE TRUST COMPANY, 

as Trustee, 
 and 

DEUTSCHE BANK TRUST COMPANY AMERICAS, 

as Paying Agent, Registrar and Transfer Agent 

5.875% SENIOR NOTES DUE 2029 

SUPPLEMENTAL INDENTURE NO. 22 

Dated as of January 30, 2019 

To BASE INDENTURE 
 Dated as of
August 1, 2011 
  
  

 

 CROSS-REFERENCE TABLE* 

 

			
	 Trust Indenture Act Section
	  	Indenture Section
	 310(a)(1)
	  	7.10
	       (a)(2)
	  	7.10
	       (a)(3)
	  	N.A.
	       (a)(4)
	  	N.A.
	       (a)(5)
	  	7.10
	       (b)
	  	7.03, 7.10
	 311(a)
	  	7.11
	       (b)
	  	7.11
	 312(a)
	  	2.05
	       (b)
	  	12.03
	       (c)
	  	12.03
	 313(a)
	  	7.06
	       (b)(1)
	  	N.A.
	       (b)(2)
	  	7.06; 7.07
	       (c)
	  	7.06; 12.02
	       (d)
	  	7.06
	 314(a)
	  	704
	       (a)(4)
	  	704, 1007, 1008,
12.05
	       (b)
	  	N.A.
	       (c)(1)
	  	12.04
	       (c)(2)
	  	12.04
	       (c)(3)
	  	N.A.
	       (d)
	  	N.A.
	       (e)
	  	12.05
	       (f)
	  	N.A.
	 315(a)
	  	7.01
	       (b)
	  	7.05
	       (c)
	  	7.01
	       (d)
	  	7.01
	       (e)
	  	6.14
	 316(a)(last sentence)
	  	2.09
	       (a)(1)(A)
	  	6.05
	       (a)(1)(B)
	  	6.04
	       (a)(2)
	  	N.A.
	       (b)
	  	6.07
	       (c)
	  	1.05, 9.04
	 317(a)(1)
	  	6.08
	       (a)(2)
	  	6.12
	       (b)
	  	2.04
	 318(a)
	  	12.01
	       (b)
	  	N.A.
	       (c)
	  	1.03, 12.01

 N.A. means not applicable. 

	*	 This Cross-Reference Table is not part of this Twenty-Second Supplemental Indenture. 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
	 ARTICLE 1
  

DEFINITIONS AND INCORPORATION BY REFERENCE
  
	  
 

 
 

	Section 1.01	  	Definitions	  	 	1	 
	Section 1.02	  	Other Definitions	  	 	10	 
	Section 1.03	  	Incorporation by Reference of Trust Indenture Act	  	 	11	 
	Section 1.04	  	Rules of Construction	  	 	11	 
	Section 1.05	  	Acts of Holders	  	 	12	 
	  
 ARTICLE 2

 
 THE NOTES

 
	 
  

  

	Section 2.01	  	Form and Dating; Terms	  	 	13	 
	Section 2.02	  	Execution and Authentication	  	 	14	 
	Section 2.03	  	Registrar and Paying Agent	  	 	15	 
	Section 2.04	  	Paying Agent to Hold Money in Trust	  	 	15	 
	Section 2.05	  	Holder Lists	  	 	15	 
	Section 2.06	  	Transfer and Exchange	  	 	16	 
	Section 2.07	  	Replacement Notes	  	 	19	 
	Section 2.08	  	Outstanding Notes	  	 	19	 
	Section 2.09	  	Treasury Notes	  	 	20	 
	Section 2.10	  	Temporary Notes	  	 	20	 
	Section 2.11	  	Cancellation	  	 	20	 
	Section 2.12	  	Defaulted Interest	  	 	20	 
	Section 2.13	  	CUSIP and ISIN Numbers	  	 	21	 
	  
 ARTICLE 3

 
 REDEMPTION

 
	 
  

  

	Section 3.01	  	Notices to Trustee	  	 	21	 
	Section 3.02	  	Selection of Notes to Be Redeemed or Purchased	  	 	21	 
	Section 3.03	  	Notice of Redemption	  	 	22	 
	Section 3.04	  	Effect of Notice of Redemption	  	 	23	 
	Section 3.05	  	Deposit of Redemption or Purchase Price	  	 	23	 
	Section 3.06	  	Notes Redeemed or Purchased in Part	  	 	23	 
	Section 3.07	  	Optional Redemption	  	 	24	 
	Section 3.08	  	Mandatory Redemption	  	 	24	 

  
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	 	  	 	  	Page	 
	 ARTICLE 4
  

COVENANTS
  
	  
 

 
 

	Section 4.01	  	Payment of Notes	  	 	24	 
	Section 4.02	  	Maintenance of Office or Agency	  	 	25	 
	Section 4.03	  	Compliance Certificate	  	 	25	 
	Section 4.04	  	Taxes	  	 	25	 
	Section 4.05	  	Stay, Extension and Usury Laws	  	 	26	 
	Section 4.06	  	Limitations on Mortgages	  	 	26	 
	Section 4.07	  	Limitations on Sale and Lease-Back	  	 	27	 
	Section 4.08	  	Exempted Transactions	  	 	27	 
	Section 4.09	  	Corporate Existence	  	 	27	 
	Section 4.10	  	Offer to Repurchase upon Change of Control	  	 	27	 
	Section 4.11	  	Discharge and Suspension of Covenants	  	 	29	 
	  
 ARTICLE 5

 
 SUCCESSORS

 
	 
  

  

	Section 5.01	  	Merger, Consolidation or Sale of All or Substantially All Assets	  	 	30	 
	Section 5.02	  	Successor Corporation Substituted	  	 	31	 
	  
 ARTICLE 6

 
 DEFAULTS AND REMEDIES

 
	 
  

  

	Section 6.01	  	Events of Default	  	 	31	 
	Section 6.02	  	Acceleration	  	 	32	 
	Section 6.03	  	Other Remedies	  	 	33	 
	Section 6.04	  	Waiver of Past Defaults	  	 	33	 
	Section 6.05	  	Control by Majority	  	 	33	 
	Section 6.06	  	Limitation on Suits	  	 	33	 
	Section 6.07	  	Rights of Holders of Notes to Receive Payment	  	 	34	 
	Section 6.08	  	Collection Suit by Trustee	  	 	34	 
	Section 6.09	  	Restoration of Rights and Remedies	  	 	34	 
	Section 6.10	  	Rights and Remedies Cumulative	  	 	34	 
	Section 6.11	  	Delay or Omission Not Waiver	  	 	35	 
	Section 6.12	  	Trustee May File Proofs of Claim	  	 	35	 
	Section 6.13	  	Priorities	  	 	35	 
	Section 6.14	  	Undertaking for Costs	  	 	36	 
	  
 ARTICLE 7

 
 TRUSTEE

 
	 
  

  

	Section 7.01	  	Duties of Trustee	  	 	36	 
	Section 7.02	  	Rights of Trustee	  	 	37	 
	Section 7.03	  	Individual Rights of Trustee	  	 	38	 
	Section 7.04	  	Trustee’s Disclaimer	  	 	38	 
	Section 7.05	  	Notice of Defaults	  	 	38	 
	Section 7.06	  	Reports by Trustee to Holders of the Notes	  	 	39	 
	Section 7.07	  	Compensation and Indemnity	  	 	39	 
	Section 7.08	  	Replacement of Trustee	  	 	40	 
	Section 7.09	  	Successor Trustee by Merger, etc	  	 	41	 
	Section 7.10	  	Eligibility; Disqualification	  	 	41	 
	Section 7.11	  	Preferential Collection of Claims Against Issuer	  	 	41	 

  
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	 	  	 	  	Page	 
	 ARTICLE 8
  

LEGAL DEFEASANCE AND COVENANT DEFEASANCE
  
	  
 

 
 

	Section 8.01	  	Option to Effect Legal Defeasance or Covenant Defeasance	  	 	41	 
	Section 8.02	  	Legal Defeasance and Discharge	  	 	41	 
	Section 8.03	  	Covenant Defeasance	  	 	42	 
	Section 8.04	  	Conditions to Legal or Covenant Defeasance	  	 	42	 
	Section 8.05	  	Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions	  	 	44	 
	Section 8.06	  	Repayment to Issuer	  	 	44	 
	Section 8.07	  	Reinstatement	  	 	44	 
	  
 ARTICLE 9

 
 AMENDMENT, SUPPLEMENT AND WAIVER

 
	 
  

  

	Section 9.01	  	Without Consent of Holders of Notes	  	 	45	 
	Section 9.02	  	With Consent of Holders of Notes	  	 	46	 
	Section 9.03	  	Compliance with Trust Indenture Act	  	 	47	 
	Section 9.04	  	Revocation and Effect of Consents	  	 	47	 
	Section 9.05	  	Notation on or Exchange of Notes	  	 	48	 
	Section 9.06	  	Trustee to Sign Amendments, etc	  	 	48	 
	Section 9.07	  	Payment for Consent	  	 	48	 
	  
 ARTICLE 10

 
 GUARANTEE

 
	 
  

  

	Section 10.01	  	Guarantee	  	 	48	 
	  
 ARTICLE 11

 
 SATISFACTION AND DISCHARGE

 
	 
  

  

	Section 11.01	  	Satisfaction and Discharge	  	 	51	 
	Section 11.02	  	Application of Trust Money	  	 	52	 
	  
 ARTICLE 12

 
 MISCELLANEOUS

 
	 
  

  

	Section 12.01	  	Trust Indenture Act Controls	  	 	52	 
	Section 12.02	  	Notices	  	 	52	 
	Section 12.03	  	Communication by Holders of Notes with Other Holders of Notes	  	 	53	 
	Section 12.04	  	Certificate and Opinion as to Conditions Precedent	  	 	54	 
	Section 12.05	  	Statements Required in Certificate or Opinion	  	 	54	 
	Section 12.06	  	Rules by Trustee and Agents	  	 	54	 
	Section 12.07	  	No Personal Liability of Directors, Officers, Employees and Stockholders	  	 	54	 

  
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	 	  	 	  	Page	 
	Section 12.08	  	Governing Law	  	 	55	 
	Section 12.09	  	Waiver of Jury Trial	  	 	55	 
	Section 12.10	  	Force Majeure	  	 	55	 
	Section 12.11	  	No Adverse Interpretation of Other Agreements	  	 	55	 
	Section 12.12	  	Successors	  	 	55	 
	Section 12.13	  	Severability	  	 	55	 
	Section 12.14	  	Counterpart Originals	  	 	55	 
	Section 12.15	  	Table of Contents, Headings, etc	  	 	56	 
	Section 12.16	  	Qualification of Twenty-Second Supplemental Indenture	  	 	56	 
	Section 12.17	  	USA Patriot Act	  	 	56	 
			
	EXHIBITS	  		  			
			
	Exhibit A	  	Form of Note	  			

  
 -iv- 

 SUPPLEMENTAL INDENTURE NO. 22 (the “Twenty-Second Supplemental Indenture”),
dated as of January 30, 2019, among HCA Inc., a Delaware corporation (the “Issuer”), HCA Healthcare, Inc. (the “Parent Guarantor”), Delaware Trust Company (as successor to Law Debenture Trust Company of New
York), as Trustee, and Deutsche Bank Trust Company Americas, as Paying Agent, Registrar and Transfer Agent. 
 W I T
N E S S E T H 
 WHEREAS, the Issuer, the Parent Guarantor and the Trustee have executed
and delivered a base indenture, dated as of August 1, 2011 (as amended, supplemented or otherwise modified from time to time, the “Base Indenture”) to provide for the future issuance of the Issuer’s senior debt securities
to be issued from time to time in one or more series; and 
 WHEREAS, the Issuer has duly authorized the creation of an issue of
$1,000,000,000 aggregate principal amount of 5.875% Senior Notes due 2029 (the “Initial Notes”), which shall be guaranteed by the Parent Guarantor (the “Guarantee”), which has been duly authenticated by the Parent
Guarantor; and in connection therewith, each of the Issuer and the Parent Guarantor has duly authorized the execution and delivery of this Twenty-Second Supplemental Indenture to set forth the terms and provisions of the Notes as contemplated by the
Base Indenture. This Twenty-Second Supplemental Indenture restates in their entirety the terms of the Base Indenture as supplemented by this Twenty-Second Supplemental Indenture and does not incorporate the terms of the Base Indenture. The changes,
modifications and supplements to the Base Indenture affected by this Twenty-Second Supplemental Indenture shall be applicable only with respect to, and shall only govern the terms of, the Notes, except as otherwise provided herein, and shall not
apply to any other securities that may be issued under the Base Indenture unless a supplemental indenture with respect to such other securities specifically incorporates such changes, modifications and supplements. 

NOW, THEREFORE, the Issuer, the Parent Guarantor, the Trustee and the Paying Agent, Registrar and Transfer Agent agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of the Notes. 
 ARTICLE 1 

DEFINITIONS AND INCORPORATION BY REFERENCE 

Section 1.01    Definitions. 

“Additional Notes” means additional Notes (other than the Initial Notes) issued from time to time under this Twenty-Second
Supplemental Indenture in accordance with Section 2.01. 
 “Affiliate” of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction
of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. 

“Affiliated Entity” means any Person which (i) does not transact any substantial portion of its business or regularly
maintain any substantial portion of its operating assets within the continental limits of the United States of America, (ii) is principally engaged in the business of financing (including, without limitation, the purchase, holding, sale or
discounting of or lending upon any notes, contracts, 

 
leases or other forms of obligations) the sale or lease of merchandise, equipment or services (1) by the Issuer, (2) by a Subsidiary (whether such sales or leases have been made before
or after the date which such Person became a Subsidiary), (3) by another Affiliated Entity or (4) by any Person prior to the time which substantially all its assets have heretofore been or shall hereafter have been acquired by the Issuer ,
(iii) is principally engaged in the business of owning, leasing, dealing in or developing real property, (iv) is principally engaged in the holding of stock in, and/or the financing of operations of, an Affiliated Entity, or (v) is
principally engaged in the business of (1) offering health benefit products or (2) insuring against professional and general liability risks of the Issuer. 

“Agent” means any Registrar or Paying Agent. 

“Bankruptcy Code” means Title 11 of the United States Code, as amended. 

“Bankruptcy Law” means the Bankruptcy Code and any similar federal, state or foreign law for the relief of debtors. 

“Business Day” means each day which is not a Legal Holiday. 

“Capital Stock” means: 

(1)    in the case of a corporation, corporate stock; 

(2)    in the case of an association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock; 
 (3)    in the case of a
partnership or limited liability company, partnership or membership interests (whether general or limited); and 

(4)    any other interest or participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person. 
 “Capitalized Lease Obligation” means, at the
time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) in
accordance with GAAP. 
 “Change of Control” means the occurrence of any of the following: 

(1)    the sale, lease or transfer, in one or a series of related transactions, of all or substantially all
of the assets of the Issuer and its Subsidiaries, taken as a whole, to any Person other than a Permitted Holder; or 

(2)    the Issuer becomes aware (by way of a report or any other filing pursuant to Section 13(d) of
the Exchange Act, proxy, vote, written notice or otherwise) of the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting
for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), other than the Permitted Holders, in a single transaction or in a related
series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision)
of 50% or more of the total voting power of the Voting Stock of the Issuer or any of its direct or indirect parent companies holding directly or indirectly 100% of the total voting power of the Voting Stock of the Issuer. 

  
 -2- 

 “Code” means the Internal Revenue Code of 1986, as amended, or any
successor thereto. 
 “Comparable Treasury Issue” means, the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of a Note being redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes. 
 “Comparable Treasury
Price” means, with respect to any Redemption Date for any Note: (1) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of four such Reference Treasury Dealer
Quotations; or (2) if the Independent Investment Banker is given fewer than four Reference Treasury Dealer Quotations, the average of all quotations obtained by the Independent Investment Banker. 

“Consolidated Net Tangible Assets” means, with respect to any Person, the total amount of assets (less applicable reserves
and other properly deductible items) after deducting therefrom (a) all current liabilities as disclosed on the consolidated balance sheet of such Person (excluding any thereof which are by their terms extendible or renewable at the option of
the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed and further excluding any deferred income taxes that are included in current liabilities) and (b) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like intangible assets, all as set forth on the most recent consolidated balance sheet of the Issuer and computed in accordance with generally accepted accounting principles. 

“Contingent Obligations” means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends
or other obligations that do not constitute 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, 
 (1)    to purchase any such primary obligation
or any property constituting direct or indirect security therefor, 
 (2)    to advance or supply funds:

 (a)    for the purchase or payment of any such primary obligation, or 

(b)    to maintain working capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, or 
 (3)    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 against loss in respect thereof. 

“Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in Section 12.02 hereof or such
other address as to which the Trustee may give notice to the Holders and the Issuer. 

  
 -3- 

 “Custodian” means the Paying Agent and Registrar, as custodian with respect
to the Notes in global form, or any successor entity thereto. 
 “Default” means any event that is, or with the passage of
time or the giving of notice or both would be, an Event of Default. 
 “Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto. 
 “Depositary” means, with respect to the Notes issuable
or issued in whole or in part in global form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as Depositary hereunder and having become such pursuant to the
applicable provision of this Twenty-Second Supplemental Indenture. 
 “EMU” means the economic and monetary union as
contemplated in the Treaty on European Union. 
 “Equity Interests” means Capital Stock and all warrants, options or other
rights to acquire Capital Stock, but excluding any debt security that is convertible into, or exchangeable for, Capital Stock. 

“euro” means the single currency of participating member states of the EMU. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder. 
 “Frist Entities” means Dr. Thomas F. Frist, Jr., any Person controlled by Dr. Frist and any
charitable organization selected by Dr. Frist that holds Equity Interests of the Issuer on November 17, 2006. 
 “Funded
Debt” means any Indebtedness for money borrowed, created, issued, incurred, assumed or guaranteed that would, in accordance with generally accepted accounting principles, be classified as long-term debt, but in any event including all
Indebtedness for money borrowed, whether secured or unsecured, maturing more than one year, or extendible at the option of the obligor to a date more than one year, after the date of determination thereof (excluding any amount thereof included in
current liabilities). 
 “GAAP” means generally accepted accounting principles in the United States which were in effect on
November 17, 2006. 
 “Global Note Legend” means the legend set forth in Section 2.06(f) hereof, which is
required to be placed on all Global Notes issued under this Twenty-Second Supplemental Indenture. 
 “Global Notes” means
the Global Notes deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially in the form of Exhibit A hereto and that bears the Global Note Legend and that has the “Schedule of Exchanges of
Interests in the Global Note” attached thereto, issued in accordance with Section 2.01, 2.06(b) or 2.06(d) hereof. 

  
 -4- 

 “Government Securities” means securities that are: 

(1)    direct obligations of the United States of America for the timely payment of which its full faith
and credit is pledged; or 
 (2)    obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, 

which, in either case, are not callable or redeemable at the option of the issuers thereof, and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any such Government Securities or a specific payment of principal of or interest on any such Government Securities held by such custodian for the account of the
holder of such depository receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in
respect of the Government Securities or the specific payment of principal of or interest on the Government Securities evidenced by such depository receipt. 

“guarantee” means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of
business), direct or indirect, in any manner (including letters of credit and reimbursement agreements in respect thereof), of all or any part of any Indebtedness or other obligations. 

“Guarantee” means the guarantee by the Parent Guarantor of the Parent Guaranteed Obligations under this Twenty-Second
Supplemental Indenture. 
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under
any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, commodity swap agreement, commodity cap agreement, commodity collar agreement, foreign exchange contract, currency swap agreement or similar agreement
providing for the transfer or mitigation of interest rate or currency risks either generally or under specific contingencies. 

“Holder” means the Person in whose name a Note is registered on the Registrar’s books. 

“Indebtedness” means, with respect to any Person, without duplication: 

(1)    any indebtedness (including principal and premium) of such Person, whether or not contingent: 

(a)    in respect of borrowed money; 

(b)    evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’
acceptances (or, without duplication, reimbursement agreements in respect thereof); 

(c)    representing the balance deferred and unpaid of the purchase price of any property (including
Capitalized Lease Obligations), except (i) any such balance that constitutes a trade payable or similar obligation to a trade creditor, in each case accrued in the ordinary course of business and (ii) any
earn-out obligations until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP; or 

(d)    representing any Hedging Obligations; 

  
 -5- 

 if and to the extent that any of the foregoing Indebtedness (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with GAAP; 

(2)    to the extent not otherwise included, any obligation by such Person to be liable for, or to pay, as
obligor, guarantor or otherwise on, the obligations of the type referred to in clause (1) of a third Person (whether or not such items would appear upon the balance sheet of the such obligor or guarantor), other than by endorsement of
negotiable instruments for collection in the ordinary course of business; and 
 (3)    to the extent not
otherwise included, the obligations of the type referred to in clause (1) of a third Person secured by a Lien on any asset owned by such first Person, whether or not such Indebtedness is assumed by such first Person; 

provided, however, that notwithstanding the foregoing, Indebtedness shall be deemed not to include (a) Contingent Obligations incurred in
the ordinary course of business or (b) obligations under or in respect of Receivables Facilities. 
 “Independent Investment
Banker” means one of the Reference Treasury Dealers, to be appointed by the Issuer. 
 “Indirect Participant”
means a Person who holds a beneficial interest in a Global Note through a Participant. 
 “Initial Notes” has the meaning
set forth in the recitals hereto. 
 “Interest Payment Date” means February 1 and August 1 of each year to stated
maturity. 
 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or an equivalent rating by any other Rating Agency. 

“Investments” means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in
the form of loans (including guarantees), advances or capital contributions (excluding accounts receivable, trade credit, advances to customers, commissions, travel and similar advances to officers and employees, in each case made in the ordinary
course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any other Person and investments that are required by GAAP to be classified on the balance sheet (excluding the
footnotes) of the Issuer in the same manner as the other investments included in this definition to the extent such transactions involve the transfer of cash or other property. 

“Issue Date” means January 30, 2019. 

“Issuer Order” means a written request or order signed on behalf of the Issuer by an Officer of the Issuer, who must be the
principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Issuer, and delivered to the Trustee. 

“Legal Holiday” means a Saturday, a Sunday or a day on which commercial banking institutions are not required to be open in
the State of New York. 

  
 -6- 

 “Lien” means, with respect to any asset, any mortgage, lien (statutory or
otherwise), pledge, hypothecation, charge, security interest, preference, priority or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent
statutes) of any jurisdiction; provided that in no event shall an operating lease be deemed to constitute a Lien. 

“Maturity Date” means February 1, 2029, the date the Notes will mature. 

“Moody’s” means Moody’s Investors Service, Inc. and any successor to its rating agency business. 

“Mortgages” means mortgages, liens, pledges or other encumbrances. 

“Notes” means the Initial Notes and more particularly means any Note authenticated and delivered under this Twenty-Second
Supplemental Indenture. For all purposes of this Twenty-Second Supplemental Indenture, the term “Notes” shall also include any Additional Notes that may be issued under a supplemental indenture. 

“Obligations” means any principal, interest (including any interest accruing subsequent to the filing of a petition in
bankruptcy, reorganization or similar proceeding at the rate provided for in the documentation with respect thereto, whether or not such interest is an allowed claim under applicable state, federal or foreign law), premium, penalties, fees,
indemnifications, reimbursements (including reimbursement obligations with respect to letters of credit and bankers’ acceptances), damages and other liabilities, and guarantees of payment of such principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities, payable under the documentation governing any Indebtedness. 

“Officer” means the Chairman of the Board, the Chief Executive Officer, the President, any Executive Vice President, Senior
Vice President or Vice President, the Treasurer or the Secretary of the Issuer, the Parent Guarantor or a Subsidiary, as applicable. 

“Officer’s Certificate” means a certificate signed on behalf of the Issuer by an Officer of the Issuer, on behalf of the
Parent Guarantor by an Officer of the Parent Guarantor or on behalf of a Subsidiary by any Officer of such Subsidiary, as applicable, that meets the requirements set forth in this Twenty-Second Supplemental Indenture. 

“Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an
employee of or counsel to the Issuer or the Parent Guarantor, as the case may be. 
 “Parent Guarantor” means the Person
named as the “Parent Guarantor” in the recitals (i) until released pursuant to the provisions of this Twenty-Second Supplemental Indenture or (ii) until a successor Person shall have become such pursuant to the applicable
provisions of this Twenty-Second Supplemental Indenture, and thereafter “Parent Guarantor” shall mean that successor Person until released pursuant to the provisions of this Twenty-Second Supplemental Indenture. 

“Permitted Holders” means the Frist Entities, members of management of the Issuer (or its direct or indirect parent) and each
of their respective Affiliates or successors, that are holders of Equity Interests of the Issuer (or any of its direct or indirect parent companies) and any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange
Act or any successor provision) of which any 

  
 -7- 

 
of the foregoing are members; provided that, in the case of such group and without giving effect to the existence of such group or any other group, such Frist Entities and members of
management, collectively, have beneficial ownership of more than 50% of the total voting power of the Voting Stock of the Issuer or any of its direct or indirect parent companies. 

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

“Preferred Stock” means any Equity Interest with preferential rights of payment of dividends or upon liquidation, dissolution
or winding up. 
 “Principal Property” means each acute care hospital providing general medical and surgical services
(excluding equipment, personal property and hospitals that primarily provide specialty medical services, such as psychiatric and obstetrical and gynecological services) owned solely by the Issuer and/or one or more of its Subsidiaries and located in
the United States of America. 
 “Prospectus” means the prospectus, dated January 17, 2019, relating to the sale of
the Initial Notes. 
 “Rating Agencies” means Moody’s and S&P or if Moody’s or S&P or both shall not make
a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Issuer which shall be substituted for Moody’s or S&P or both, as the case may be. 

“Receivables Facility” means any of one or more receivables financing facilities as amended, supplemented, modified,
extended, renewed, restated or refunded from time to time, the Obligations of which are non-recourse (except for customary representations, warranties, covenants and indemnities made in connection with such
facilities) to the Issuer or any of its Subsidiaries (other than a Receivables Subsidiary) pursuant to which the Issuer or any of its Subsidiaries purports to sell its accounts receivable to either (a) a Person that is not a Subsidiary or
(b) a Receivables Subsidiary that in turn funds such purchase by purporting to sell its accounts receivable to a Person that is not a Subsidiary or by borrowing from such a Person or from another Receivables Subsidiary that in turn funds itself
by borrowing from such a Person. 
 “Receivables Subsidiary” means any Subsidiary formed for the purpose of facilitating or
entering into one or more Receivables Facilities, and in each case engages only in activities reasonably related or incidental thereto. 

“Record Date” for the interest or payable on any applicable Interest Payment Date means January 15 or July 15
(whether or not a Business Day) next preceding such Interest Payment Date. 
 “Reference Treasury Dealer” means UBS
Securities LLC (or its respective affiliates that are Primary Treasury Dealers) and its successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”), the Issuer will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Issuer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for any
Note, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, quoted in writing to the Independent Investment
Banker by such Reference Treasury Dealer at 3:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

  
 -8- 

 “Remaining Life” has the meaning ascribed to such term in the definition of
“Comparable Treasury Issue”. 
 “Responsible Officer” means, when used with respect to the Trustee, any officer
within the corporate trust department of the Trustee, including any managing director, director, vice president, assistant vice president, trust officer or any other officer of the Trustee who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Twenty-Second Supplemental Indenture. 
 “S&P” means Standard &
Poor’s Ratings Services and any successor to its rating agency business. 
 “Sale and Lease-Back Transaction” means any arrangement providing for the leasing by the Issuer or any of its Subsidiaries for a period of more than three years of any Principal Property, which property has been or is to
be sold or transferred by the Issuer or such Subsidiary to a third Person in contemplation of such leasing. 
 “SEC” means
the U.S. Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations of the SEC promulgated thereunder. 
 “Subordinated Indebtedness” means, with respect to the Notes,
(1) any Indebtedness of the Issuer which is by its terms subordinated in right of payment to the Notes, and (2) any Indebtedness of the Parent Guarantor which is by its terms subordinated in right of payment to the Guarantee. 

“Subsidiary” means, with respect to any Person: 

(1)    any corporation, association, or other business entity (other than a partnership, joint venture,
limited liability company or similar entity) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof or is consolidated under GAAP with such Person at such time; and

 (2)    any partnership, joint venture, limited liability company or similar entity of which more than
50% of the equity ownership, whether in the form of a membership, general, special or limited partnership interests or otherwise is owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person
or a combination thereof or is consolidated under GAAP with such Person at such time; provided, however, that for purposes of Sections 4.06, 4.07 and 4.08, any Person that is an Affiliated Entity shall not be considered a
Subsidiary. 

  
 -9- 

 “Transfer Agent” means the Person specified in Section 2.03 hereof as
the Transfer Agent, and any and all successors thereto, to receive on behalf of the Registrar any Notes for transfer or exchange pursuant to this Twenty-Second Supplemental Indenture. 

“Treasury Rate” means, at the time of computation, (1) the semi-annual equivalent yield to maturity of the United States
Treasury Securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) which has become publicly available at least two Business Days prior to the Redemption Date or, if such
Statistical Release is no longer published, any publicly available source of similar market data) for the maturity corresponding to the Comparable Treasury Issue; provided, however, that if no maturity is within three months before or
after the Maturity Date for the Notes being redeemed, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated from those yields
on a straight line basis, rounding to the nearest month; or (2) if that release, or any successor release, is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the
semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date.
The Treasury Rate will be calculated on the third Business Day preceding the Redemption Date. 
 “Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb). 
 “Trustee” means Delaware
Trust Company (as successor to Law Debenture Trust Company of New York), as trustee, until a successor replaces it in accordance with the applicable provisions of this Twenty-Second Supplemental Indenture and thereafter means the successor serving
hereunder. 
 Twenty-Second Supplemental Indenture” means this Twenty-Second Supplemental Indenture, as amended or supplemented
from time to time. 
 “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the
time entitled to vote in the election of the board of directors of such Person. 
 Section 1.02    Other
Definitions. 
  

					
	 Term
	  	Defined in
Section	 
	 “Authentication Order”
	  	 	2.02	 
	 “Change of Control Offer”
	  	 	4.10	 
	 “Change of Control Payment”
	  	 	4.10	 
	 “Change of Control Payment Date”
	  	 	4.10	 
	 “Covenant Defeasance”
	  	 	8.03	 
	 “DTC”
	  	 	2.03	 
	 “Event of Default”
	  	 	6.01	 
	 “Legal Defeasance”
	  	 	8.02	 
	 “Note Register”
	  	 	2.03	 
	 “Parent Guaranteed Obligations”
	  	 	10.01	 
	 “Paying Agent”
	  	 	2.03	 
	 “Redemption Date”
	  	 	3.07	 
	 “Registrar”
	  	 	2.03	 
	 “Reversion Date”
	  	 	4.11	 
	 “Successor Entity”
	  	 	5.01	 
	 “Suspended Covenant”
	  	 	4.11	 

  
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 Section 1.03    Incorporation by Reference of Trust Indenture
Act. 
 Whenever this Twenty-Second Supplemental Indenture refers to a provision of the Trust Indenture Act the provision is by
reference in and made a part of this Twenty-Second Supplemental Indenture. If and to the extent that any provision of this Twenty-Second Supplemental Indenture limits, qualifies or conflicts with another provision included in this Twenty-Second
Supplemental Indenture, by operation of Sections 310 to 317, inclusive, of the Trust Indenture Act, as amended (an “incorporated provision”), such incorporated provision shall control. 

The following Trust Indenture Act terms used in this Twenty-Second Supplemental Indenture have the following meanings: 

“indenture securities” mean the Notes; 

“indenture security Holder” means a Holder of a Note; 

“indenture to be qualified” means this Twenty-Second Supplemental Indenture; 

“indenture trustee” or “institutional trustee” means the Trustee; and 

“obligor” on the Notes and the Guarantee means the Issuer and the Parent Guarantor, respectively, and any successor
obligor upon the Notes and the Guarantee, respectively. 
 All other terms used in this Twenty-Second Supplemental Indenture that are
defined by the Trust Indenture Act, defined by Trust Indenture Act reference to another statute or defined by SEC rule under the Trust Indenture Act have the meanings so assigned to them. 

Section 1.04    Rules of Construction. 

Unless the context otherwise requires: 

(a)    a term has the meaning assigned to it; 

(b)    an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 (c)    “or” is not exclusive; 

(d)    words in the singular include the plural, and in the plural include the singular; 

(e)    “will” shall be interpreted to express a command; 

(f)    provisions apply to successive events and transactions; 

  
 -11- 

 (g)    references to sections of, or rules under, the
Securities Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC from time to time; 

(h)    unless the context otherwise requires, any reference to an “Article,” “Section”
or “clause” refers to an Article, Section or clause, as the case may be, of this Twenty-Second Supplemental Indenture; and 

(i)    the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Twenty-Second Supplemental Indenture as a whole and not any particular Article, Section, clause or other subdivision. 

In addition, this Twenty-Second Supplemental Indenture restates in their entirety the terms of the Base Indenture as supplemented by this
Twenty-Second Supplemental Indenture and does not incorporate the terms of the Base Indenture. The changes, modifications and supplements to the Base Indenture effected by this Twenty-Second Supplemental Indenture shall be applicable only with
respect to, and shall only govern the terms of, the Notes, except as otherwise provided herein, and shall not apply to any other securities that may be issued under the Base Indenture unless a supplemental indenture with respect to such other
securities specifically incorporates such changes, modifications and supplements. 
 Section 1.05    Acts of
Holders. 
 (a)    Any request, demand, authorization, direction, notice, consent, waiver or other action provided by
this Twenty-Second Supplemental Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing. Except as
herein otherwise expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Issuer or the Parent Guarantor, as
applicable. Proof of execution of any such instrument or of a writing appointing any such agent, or the holding by any Person of a Note, shall be sufficient for any purpose of this Twenty-Second Supplemental Indenture and (subject to
Section 7.01) conclusive in favor of the Trustee and the Issuer and the Parent Guarantor, as applicable, if made in the manner provided in this Section 1.05. 

(b)    The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of
a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof.
Where such execution is by or on behalf of any legal entity other than an individual, such certificate or affidavit shall also constitute proof of the authority of the Person executing the same. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner that the Trustee deems sufficient. 

(c)    The ownership of Notes shall be proved by the Note Register. 

(d)    Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Note
shall bind every future Holder of the same Note and the Holder of every Note issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of any action taken, suffered or omitted by the Trustee or the
Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 

  
 -12- 

 (e)    The Issuer may, in the circumstances permitted by the Trust
Indenture Act, set a record date for purposes of determining the identity of Holders entitled to give any request, demand, authorization, direction, notice, consent, waiver or take any other act, or to vote or consent to any action by vote or
consent authorized or permitted to be given or taken by Holders. Unless otherwise specified, if not set by the Issuer prior to the first solicitation of a Holder made by any Person in respect of any such action, or in the case of any such vote,
prior to such vote, any such record date shall be the later of 30 days prior to the first solicitation of such consent or the date of the most recent list of Holders furnished to the Trustee prior to such solicitation. 

(f)    Without limiting the foregoing, a Holder entitled to take any action hereunder with regard to any particular Note
may do so with regard to all or any part of the principal amount of such Note or by one or more duly appointed agents, each of which may do so pursuant to such appointment with regard to all or any part of such principal amount. Any notice given or
action taken by a Holder or its agents with regard to different parts of such principal amount pursuant to this paragraph shall have the same effect as if given or taken by separate Holders of each such different part. 

(g)    Without limiting the generality of the foregoing, a Holder, including DTC that is the Holder of a Global Note, may
make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided in this Twenty-Second Supplemental Indenture to be made, given or taken by Holders,
and DTC that is the Holder of a Global Note may provide its proxy or proxies to the beneficial owners of interests in any such Global Note through such depositary’s standing instructions and customary practices. 

(h)    The Issuer may fix a record date for the purpose of determining the Persons who are beneficial owners of interests
in any Global Note held by DTC entitled under the procedures of such depositary to make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other action provided
in this Twenty-Second Supplemental Indenture to be made, given or taken by Holders. If such a record date is fixed, the Holders on such record date or their duly appointed proxy or proxies, and only such Persons, shall be entitled to make, give or
take such request, demand, authorization, direction, notice, consent, waiver or other action, whether or not such Holders remain Holders after such record date. No such request, demand, authorization, direction, notice, consent, waiver or other
action shall be valid or effective if made, given or taken more than 90 days after such record date. 
 ARTICLE 2 

THE NOTES 
 In accordance with
Section 301 of the Base Indenture, the Issuer hereby creates the Notes as a series of its Securities issued pursuant to this Twenty-Second Supplemental Indenture. In accordance with Section 301 of the Base Indenture, the Notes shall
be known and designated as the “5.875% Senior Notes due 2029” of the Issuer. 
 Section 2.01    Form
and Dating; Terms. 
 (a)    General. The Notes and the Trustee’s certificate of authentication shall be
substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rules or usage. Each Note shall be dated the date of its authentication. The Notes shall be in minimum
denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

  
 -13- 

 (b)    Global Notes. Notes issued in global form shall be
substantially in the form of Exhibit A hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive form shall be substantially in the
form of Exhibit A attached hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note shall represent such of the outstanding Notes
as shall be specified in the “Schedule of Exchanges of Interests in the Global Note” attached thereto and each shall provide that it shall represent up to the aggregate principal amount of Notes from time to time endorsed thereon and that
the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as applicable, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by
Section 2.06 hereof. 
 (c)    Terms. The aggregate principal amount of Notes that may be authenticated and
delivered under this Twenty-Second Supplemental Indenture is unlimited. 
 The terms and provisions contained in the Notes shall constitute,
and are hereby expressly made, a part of this Twenty-Second Supplemental Indenture and the Issuer, the Parent Guarantor and the Trustee, by their execution and delivery of this Twenty-Second Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Twenty-Second Supplemental Indenture, the provisions of this Twenty-Second Supplemental Indenture shall govern and be
controlling. 
 The Notes shall be subject to repurchase by the Issuer pursuant to a Change of Control Offer as provided in
Section 4.10 hereof. The Notes shall not be redeemable, other than as provided in Article 3. 
 Additional Notes may be created and
issued from time to time by the Issuer without notice to or consent of the Holders and shall be consolidated with and form a single class with the Initial Notes and shall have the same terms as to status, redemption or otherwise as the Initial
Notes. Except as described under Article 9 hereof, the Notes offered by the Issuer and any Additional Notes subsequently issued under this Twenty-Second Supplemental Indenture will be treated as a single class for all purposes under this
Twenty-Second Supplemental Indenture, including waivers, amendments, redemptions and offers to purchase. Unless the context requires otherwise, references to “Notes” for all purposes of this Twenty-Second Supplemental Indenture include any
Additional Notes that are actually issued. Any Additional Notes shall be issued with the benefit of an indenture supplemental to this Twenty-Second Supplemental Indenture. 

Section 2.02    Execution and Authentication. 

At least one Officer shall execute the Notes on behalf of the Issuer by manual or facsimile signature. 

If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be
valid. 
 A Note shall not be entitled to any benefit under this Twenty-Second Supplemental Indenture or be valid or obligatory for any
purpose until authenticated substantially in the form provided for in Exhibit A attached hereto, by the manual signature of the Trustee. The signature shall be conclusive evidence that the Note has been duly authenticated and delivered under
this Twenty-Second Supplemental Indenture. 

  
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 On the Issue Date, the Trustee shall, upon receipt of an Issuer Order (an
“Authentication Order”), authenticate and deliver the Initial Notes. In addition, at any time, from time to time, the Trustee shall upon an Authentication Order authenticate and deliver any Additional Notes. Such Authentication
Order shall specify the amount of the Notes to be authenticated. 
 The Trustee may appoint an authenticating agent acceptable to the Issuer
to authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Twenty-Second Supplemental Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Issuer. 

Section 2.03    Registrar and Paying Agent. 

The Issuer shall maintain an office or agency where Notes may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”). The Registrar shall keep a register of the Notes (“Note Register”) and of their transfer and
exchange. The Issuer may appoint one or more co-registrars and one or more additional paying agents. The term “Registrar” includes any co-registrar and the
term “Paying Agent” includes any additional paying agent. The Issuer may change any Paying Agent or Registrar without prior notice to any Holder. The Issuer shall notify the Trustee in writing of the name and address of any Agent not a
party to this Twenty-Second Supplemental Indenture. If the Issuer fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar.

 The Issuer initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global
Notes. 
 The Issuer initially appoints Deutsche Bank Trust Company Americas to act as the Paying Agent, Registrar and Transfer Agent for
the Notes and the Registrar to act as Custodian with respect to the Global Notes. 
 Section 2.04    Paying
Agent to Hold Money in Trust. 
 The Issuer shall require each Paying Agent other than the Trustee to agree in writing that the Paying
Agent shall hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and will notify the Trustee of any default by the Issuer in making any
such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Issuer or a Subsidiary) shall have no further liability for the money. If the Issuer or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the
Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Issuer, the Trustee shall serve as Paying Agent for the Notes. 

Section 2.05    Holder Lists. 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses
of all Holders and shall otherwise comply with Trust 

  
 -15- 

 
Indenture Act Section 312(a). If the Trustee is not the Registrar, the Issuer shall furnish to the Trustee at least two Business Days before each Interest Payment Date and at such other
times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and the Issuer shall otherwise comply with Trust Indenture Act
Section 312(a). 
 Section 2.06    Transfer and Exchange. 

(a)    Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All
Global Notes will be exchanged by the Issuer for Definitive Notes if: 
 (A)    the Issuer delivers to
the Trustee notice from the Depositary that the Depositary is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Issuer within 120 days after the date of such notice from the Depositary; 
 (B)    the
Issuer in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee; or 

(C)    there has occurred and is continuing a Default or Event of Default with respect to the Notes, and
the Depositary has notified the Issuer and the Trustee of its desire to exchange the Global Notes for Definitive Notes. 
 Upon the occurrence of either of
the preceding events in (A) or (B) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, pursuant to this Section 2.06 or
Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Sections 2.07 or 2.10 hereof, shall be authenticated and delivered in
the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a), however, beneficial interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b) or (c) hereof. 
 (b)    Transfer and Exchange of Beneficial Interests in the Global
Notes. The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions of this Twenty-Second Supplemental Indenture. Beneficial interests in any Global Note may be
transferred to Persons who take delivery thereof in the form of a beneficial interest in a Global Note. No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b) and Section 2.06(d) hereof. 
 (c)    Transfer or Exchange of Beneficial Interests for
Definitive Notes. If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g)
hereof, and the Issuer will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive 

  
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Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c) will be registered in such name or names and in such authorized denomination or denominations as the holder
of such beneficial interest requests through instructions to the Registrar from or through the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are
registered. 
 (d)    Transfer and Exchange of Definitive Notes for Beneficial Interests. A Holder of a Definitive
Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of a request for such an
exchange or transfer, the Trustee shall cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Global Notes. 

(e)    Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder must present or
surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the
requesting Holder must provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e). A Holder of Definitive Notes may transfer such Notes to a Person who
takes delivery thereof in the form of a Definitive Note. 
 (f)    Global Note Legend. Each Global Note shall bear
a legend in substantially the following form: 
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE TWENTY-SECOND
SUPPLEMENTAL INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE TWENTY-SECOND SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE TWENTY-SECOND SUPPLEMENTAL INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE TWENTY-SECOND SUPPLEMENTAL INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUER. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY
AN AUTHORIZED 

  
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REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.” 

(g)    Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular
Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and cancelled by the Trustee in accordance
with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note
or for Definitive Notes, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect
such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an
endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

(h)    General Provisions Relating to Transfers and Exchanges. 

(i)    To permit registrations of transfers and exchanges, the Issuer shall execute and the Trustee shall
authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request. 

(ii)    No service charge shall be made to a holder of a beneficial interest in a Global Note or to a
Holder of a Definitive Note for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.07, 2.10, 3.06, 4.10 and 9.05 hereof). 

(iii)    Neither the Registrar nor the Issuer shall be required to register the transfer of or exchange any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part. 

(iv)    All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of
Global Notes or Definitive Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Twenty-Second Supplemental Indenture, as the Global Notes or Definitive Notes surrendered upon such
registration of transfer or exchange. 
 (v)    The Issuer shall not be required (A) to issue, to
register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of
selection, (B) to register the transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part or (C) to register the transfer of or to exchange a Note
between a Record Date and the next succeeding Interest Payment Date. 

  
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 (vi)    Prior to due presentment for the registration of
a transfer of any Note, the Trustee, any Agent and the Issuer may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of (and premium, if any) and
interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuer shall be affected by notice to the contrary. 

(vii)    Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
designated pursuant to Section 4.02 hereof, the Issuer shall execute, and the Trustee shall authenticate and mail, in the name of the designated transferee or transferees, one or more replacement Notes of any authorized denomination or
denominations of a like aggregate principal amount. 
 (viii)    At the option of the Holder, Notes may
be exchanged for other Notes of any authorized denomination or denominations of a like aggregate principal amount upon surrender of the Notes to be exchanged at such office or agency. Whenever any Global Notes or Definitive Notes are so surrendered
for exchange, the Issuer shall execute, and the Trustee shall authenticate and mail, the replacement Global Notes and Definitive Notes which the Holder making the exchange is entitled to in accordance with the provisions of Section 2.02 hereof.

 (ix)    All certifications, certificates and Opinions of Counsel required to be submitted to the
Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile. 

Section 2.07    Replacement Notes. 

If any mutilated Note is surrendered to the Trustee, the Registrar or the Issuer and the Trustee receives evidence to its satisfaction of the
ownership and destruction, loss or theft of any Note, the Issuer shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or
the Issuer, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuer to protect the Issuer, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a
Note is replaced. The Issuer and/or the Trustee may charge for their expenses in replacing a Note. 
 Every replacement Note is a
contractual obligation of the Issuer and shall be entitled to all of the benefits of this Twenty-Second Supplemental Indenture equally and proportionately with all other Notes duly issued hereunder. 

Section 2.08    Outstanding Notes. 

The Notes outstanding at any time are all the Notes authenticated by the Trustee except for those cancelled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a
Note does not cease to be outstanding because the Issuer or an Affiliate of the Issuer holds the Note. 
 If a Note is replaced pursuant to
Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. 

If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases
to accrue. 

  
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 If the Paying Agent (other than the Issuer, a Subsidiary or an Affiliate of any thereof)
holds, on a Redemption Date or Maturity Date, money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest. 

Section 2.09    Treasury Notes. 

In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Issuer, or by any Affiliate of the Issuer, shall be considered as though not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee knows are so owned shall be so disregarded. Notes so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to
deliver any such direction, waiver or consent with respect to the Notes and that the pledgee is not the Issuer or any obligor upon the Notes or any Affiliate of the Issuer or of such other obligor. 

Section 2.10    Temporary Notes. 

Until certificates representing Notes are ready for delivery, the Issuer may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of certificated Notes but may have variations that the Issuer considers appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee.
Without unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate definitive Notes in exchange for temporary Notes. 

Holders and beneficial holders, as the case may be, of temporary Notes shall be entitled to all of the benefits accorded to Holders, or
beneficial holders, respectively, of Notes under this Twenty-Second Supplemental Indenture. 

Section 2.11    Cancellation. 

The Issuer at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The Trustee or, at the direction of the Trustee, the Registrar or the Paying Agent and no one else shall cancel all Notes surrendered for registration of transfer,
exchange, payment, replacement or cancellation and shall destroy cancelled Notes (subject to the record retention requirement of the Exchange Act). Certification of the destruction of all cancelled Notes shall be delivered to the Issuer. The Issuer
may not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation. 

Section 2.12    Defaulted Interest. 

If the Issuer defaults in a payment of interest on the Notes, it shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest payable on the defaulted interest to the Persons who are Holders on a subsequent special record date, in each case at the rate provided in the Notes and in Section 4.01 hereof. The Issuer shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment, and at the same time the Issuer shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of
such defaulted interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit

  
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of the Persons entitled to such defaulted interest as provided in this Section 2.12. The Trustee shall fix or cause to be fixed each such special record date and payment date;
provided that no such special record date shall be less than 10 days prior to the related payment date for such defaulted interest. The Trustee shall promptly notify the Issuer of such special record date. At least 15 days before the special
record date, the Issuer (or, upon the written request of the Issuer, the Trustee in the name and at the expense of the Issuer) shall mail or cause to be mailed, first-class postage prepaid, to each Holder a notice at his or her address as it appears
in the Note Register that states the special record date, the related payment date and the amount of such interest to be paid. 
 Subject to
the foregoing provisions of this Section 2.12 and for greater certainty, each Note delivered under this Twenty-Second Supplemental Indenture upon registration of transfer of or in exchange for or in lieu of any other Note shall carry the rights
to interest accrued and unpaid, and to accrue, which were carried by such other Note. 
 Section 2.13    CUSIP
and ISIN Numbers. 
 The Issuer in issuing the Notes may use CUSIP and/or ISIN numbers (if then generally in use) and, if so, the
Trustee shall use CUSIP and/or ISIN numbers in notices of redemption as a convenience to Holders; provided, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will as
promptly as practicable notify the Trustee of any change in the CUSIP or ISIN numbers. 
 ARTICLE 3 

REDEMPTION 

Section 3.01    Notices to Trustee. 

If the Issuer elects to redeem Notes pursuant to Section 3.07 hereof, it shall furnish to the Trustee and the Registrar and Paying Agent,
at least 2 Business Days before notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to Section 3.03 hereof but not more than 60 days before a Redemption Date, an Officer’s Certificate setting forth
(i) the clause of this Twenty-Second Supplemental Indenture or the subparagraph of such Note pursuant to which the redemption shall occur, (ii) the Redemption Date; (iii) the principal amount of Notes to be redeemed, (iv) the
redemption price (or the method of calculating it) and (v) each place that payment will be made upon presentation and surrender of the Notes to be redeemed. 

Section 3.02    Selection of Notes to Be Redeemed or Purchased. 

If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any time, the Registrar and Paying Agent shall select
the Notes to be redeemed or purchased (a) if the Notes are listed on any national securities exchange, in compliance with the requirements of the principal national securities exchange on which the Notes are listed, (b) on a pro
rata basis or (c) by lot or by such other method in accordance with the procedures of DTC. In the event of partial redemption or purchase by lot, the particular Notes to be redeemed or purchased shall be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the Redemption Date by the Registrar and Paying Agent from the outstanding Notes not previously called for redemption or purchase. 

  
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 The Registrar and Paying Agent shall promptly notify the Issuer in writing of the Notes
selected for redemption or purchase and, in the case of any Note selected for partial redemption or purchase, the principal amount thereof to be redeemed or purchased. Notes and portions of Notes selected shall be in amounts of $2,000 or whole
multiples of $1,000 in excess thereof; no Notes of $2,000 or less can be redeemed in part, except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder, even if not $2,000 or
a multiple of $1,000 in excess thereof, shall be redeemed or purchased. Except as provided in the preceding sentence, provisions of this Twenty-Second Supplemental Indenture that apply to Notes called for redemption or purchase also apply to
portions of Notes called for redemption or purchase. 
 Section 3.03    Notice of Redemption. 

The Issuer shall mail or cause to be mailed by first-class mail notices of redemption at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Notes to be redeemed at such Holder’s registered address or otherwise in accordance with the procedures of DTC, except that redemption notices may be mailed more than 60 days prior to a Redemption Date if the
notice is issued in connection with Article 8 or Article 11 hereof. Except as set forth in Section 3.07(c) hereof, notices of redemption may not be conditional. 

The notice shall identify the Notes to be redeemed and shall state: 

(a)    the Redemption Date; 

(b)    the redemption price (or method of calculating it); 

(c)    if any Note is to be redeemed in part only, the portion of the principal amount of that Note that is
to be redeemed and that, after the Redemption Date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion of the original Note representing the same indebtedness to the extent not redeemed will be issued
in the name of the Holder of the Notes upon cancellation of the original Note; 
 (d)    the place and
address that payment will be made upon presentation and surrender of the Notes to be redeemed; 

(e)    the name and address of the Paying Agent; 

(f)    that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption
price; 
 (g)    that, unless the Issuer defaults in making such redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption Date; 
 (h)    the paragraph or
subparagraph of the Notes and/or Section of this Twenty-Second Supplemental Indenture pursuant to which the Notes called for redemption are being redeemed; 

(i)    that no representation is made as to the correctness or accuracy of the CUSIP and/or ISIN number, if
any, listed in such notice or printed on the Notes; and 
 (j)    if in connection with a redemption
pursuant to Section 3.07 hereof, any condition to such redemption. 

  
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 At the Issuer’s request, the Trustee shall give the notice of redemption in the
Issuer’s name and at its expense; provided that the Issuer shall have delivered to the Trustee, at least 2 Business Days before notice of redemption is required to be mailed or caused to be mailed to Holders pursuant to this
Section 3.03 (unless a shorter notice shall be agreed to by the Trustee), an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph. 
 Section 3.04    Effect of Notice of Redemption. 

Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called for redemption become irrevocably due and
payable on the Redemption Date at the redemption price (except as provided for in Section 3.07(c) hereof). The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder receives
such notice. In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated for redemption in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.
Subject to Section 3.05 hereof, on and after the Redemption Date, interest ceases to accrue on Notes or portions thereof called for redemption. 

Section 3.05    Deposit of Redemption or Purchase Price. 

Prior to 10:00 a.m. (New York City time) on the redemption or purchase date, the Issuer shall deposit with the Trustee or with the Paying
Agent money sufficient to pay the redemption or purchase price of and accrued and unpaid interest on all Notes to be redeemed or purchased on that date. The Trustee or the Paying Agent shall promptly return to the Issuer any money deposited with the
Trustee or the Paying Agent by the Issuer in excess of the amounts necessary to pay the redemption price of, and accrued and unpaid interest on, all Notes to be redeemed or purchased. 

If the Issuer complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest shall cease to
accrue on the Notes or the portions of Notes called for redemption or purchase. If a Note is redeemed or purchased on or after a Record Date but on or prior to the related Interest Payment Date, then any accrued and unpaid interest to the redemption
or purchase date shall be paid to the Person in whose name such Note was registered at the close of business on such Record Date. If any Note called for redemption or purchase shall not be so paid upon surrender for redemption or purchase because of
the failure of the Issuer to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or purchase date until such principal is paid, and to the extent lawful on any interest accrued to the redemption
or purchase date not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof. 

Section 3.06    Notes Redeemed or Purchased in Part. 

Upon surrender of a Note that is redeemed or purchased in part, the Issuer shall issue and the Trustee shall authenticate for the Holder at
the expense of the Issuer a new Note equal in principal amount to the unredeemed or unpurchased portion of the Note surrendered representing the same indebtedness to the extent not redeemed or purchased; provided that each new Note will be in
a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. It is understood that, notwithstanding anything in this Twenty-Second Supplemental Indenture to the contrary, only an Authentication Order and not an Opinion of
Counsel or Officer’s Certificate is required for the Trustee to authenticate such new Note. 

  
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 Section 3.07    Optional Redemption. 

(a)    Except as set forth below, the Issuer will not be entitled to redeem Notes at its option prior to the Maturity Date.

 (b)    Prior to August 1, 2028, the Notes will be redeemable, at the Issuer’s option, at any time in whole
or from time to time in part, at a redemption, or “make-whole,” price equal to the greater of: (i) 100% of the aggregate principal amount of the Notes to be redeemed, and (ii) an amount equal to the sum of the present value
of (A) the payment on August 1, 2028 of the principal of the Notes to be redeemed and (B) the payment of the remaining scheduled payments through August 1, 2028 of interest on the Notes to be redeemed (excluding accrued and
unpaid interest to the date of redemption (the “Redemption Date”) and subject to the right of Holders on the relevant Record Date to receive interest due on the relevant Interest Payment Date), in each case discounted from their
scheduled date of payment to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using a discount rate equal to the
Treasury Rate plus 50 basis points plus, in each of the above cases, accrued and unpaid interest, if any, to such Redemption Date. 

On and after August 1, 2028, the Notes will be redeemable, at the Issuer’s option, at any time in whole or from time to time in
part, at a redemption price equal to 100% of the principal amount of such Notes plus accrued and unpaid interest, if any, to such Redemption Date. 

(c)    Any notice of any redemption may be given prior to the redemption thereof, and any such redemption or notice may, at
the Issuer’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an Equity Offering or other corporate transaction. 

(d)    If the Issuer redeems less than all of the outstanding Notes, the Registrar and Paying Agent shall select the Notes
to be redeemed in the manner described under Section 3.02 hereof. 
 (e)    Any redemption pursuant to this
Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof. 

Section 3.08    Mandatory Redemption. 

The Issuer shall not be required to make any mandatory redemption or sinking fund payments with respect to the Notes. 

ARTICLE 4 
 COVENANTS 

Section 4.01    Payment of Notes. 

The Issuer shall pay or cause to be paid the principal of, premium, if any, and interest on the Notes on the dates and in the manner provided
in the Notes. Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Issuer or a Subsidiary, holds as of noon Eastern Time on the due date money deposited by the Issuer in immediately
available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due. 
 The Issuer shall pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the Notes to the extent lawful; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful. 

  
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 Section 4.02    Maintenance of Office or Agency. 

The Issuer shall maintain in the Borough of Manhattan in the City of New York, an office or agency (which may be an office of the Trustee or
an Affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Issuer in respect of the Notes
and this Twenty-Second Supplemental Indenture may be served. The Issuer shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Issuer shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. 

The Issuer may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission shall in any manner relieve the Issuer of its obligation to maintain an office or agency in the Borough of Manhattan in
the City of New York, for such purposes. The Issuer shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

The Issuer hereby designates the office of the Registrar at the address specified in Section 12.02 hereof (or such other address as to
which the Registrar may give notice to the Holders and the Issuer) as one such office or agency of the Issuer in accordance with Section 2.03 hereof. 

Section 4.03    Compliance Certificate. 

(a)    The Issuer shall deliver to the Trustee, within 90 days after the end of each fiscal year ending after the Issue
Date, an Officer’s Certificate stating that a review of the activities of the Issuer and its Restricted Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to determining whether
the Issuer has kept, observed, performed and fulfilled its obligations under this Twenty-Second Supplemental Indenture, and further stating, as to such Officer signing such certificate, that to the best of his or her knowledge the Issuer has kept,
observed, performed and fulfilled each and every condition and covenant contained in this Twenty-Second Supplemental Indenture and is not in default in the performance or observance of any of the terms, provisions, covenants and conditions of this
Twenty-Second Supplemental Indenture (or, if a Default shall have occurred, describing all such Defaults of which he or she may have knowledge and what action the Issuer is taking or proposes to take with respect thereto). 

(b)    When any Default has occurred and is continuing under this Twenty-Second Supplemental Indenture, or if the Trustee
or the holder of any other evidence of Indebtedness of the Issuer or any Subsidiary gives any notice or takes any other action with respect to a claimed Default, the Issuer shall promptly (which shall be no more than five (5) Business Days)
deliver to the Trustee by registered or certified mail or by facsimile transmission an Officer’s Certificate specifying such event and what action the Issuer proposes to take with respect thereto. 

Section 4.04    Taxes. 

The Issuer shall pay, and shall cause each of its Restricted Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by appropriate negotiations or proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes. 

  
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 Section 4.05    Stay, Extension and Usury Laws. 

The Issuer and the Parent Guarantor covenant (to the extent that they may lawfully do so) that they shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Twenty-Second Supplemental
Indenture; and the Issuer and the Parent Guarantor (to the extent that they may lawfully do so) hereby expressly waive all benefit or advantage of any such law, and covenant that they shall not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted. 

Section 4.06    Limitations on Mortgages. 

(a)    Nothing in this Twenty-Second Supplemental Indenture or in the Notes shall in any way restrict or prevent the
Issuer, the Parent Guarantor or any Subsidiary from incurring any Indebtedness, provided, however, that neither the Issuer nor any of its Subsidiaries will issue, assume or guarantee any indebtedness or obligation secured by Mortgages
upon any Principal Property, unless the Notes shall be secured equally and ratably with (or prior to) such Indebtedness. 

(b)    The provisions of Section 4.06(a) shall not apply to: 

(1)    Mortgages securing all or any part of the purchase price of property acquired or cost of
construction of property or cost of additions, substantial repairs, alterations or improvements or property, if the Indebtedness and the related Mortgages are incurred within 18 months of the later of the acquisition or completion of construction
and full operation or additions, repairs, alterations or improvements; 
 (2)    Mortgages existing on
property at the time of its acquisition by the Issuer or a Subsidiary or on the property of a Person at the time of the acquisition of such Person by the Issuer or a Subsidiary (including acquisitions through merger or consolidation); 

(3)    Mortgages to secure Indebtedness on which the interest payments to holders of the related
indebtedness are excludable from gross income for federal income tax purposes under Section 103 of the Code; 

(4)    Mortgages in favor of the Issuer or any Subsidiary; 

(5)    Mortgages existing on the date of this Twenty-Second Supplemental Indenture; 

(6)    Mortgages in favor of a government or governmental entity that (i) secure Indebtedness which is
guaranteed by the government or governmental entity, (ii) secure Indebtedness incurred to finance all or some of the purchase price or cost of construction of goods, products or facilities produced under contract or subcontract for the
government or governmental entity, or (iii) secure Indebtedness incurred to finance all or some of the purchase price or cost of construction of the property subject to the Mortgage; 

(7)    Mortgages incurred in connection with the borrowing of funds where such funds are used to repay
within 120 days after entering into such Mortgage, Indebtedness in the same principal amount secured by other Mortgages on Principal Property with at least the same appraised fair market value; and 

  
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 (8)    any extension, renewal or replacement of any
Mortgage referred to in clauses (1) through (7) above, provided the amount secured is not increased and such extension, renewal or replacement Mortgage relates to the same property. 

Section 4.07    Limitations on Sale and Lease-Back. 

Neither the Issuer nor any Subsidiary will enter into any Sale and Lease-Back Transaction with respect to any Principal Property with another
Person (other than with the Issuer or a Subsidiary) unless either: 
 (a)    the Issuer or such
Subsidiary could incur indebtedness secured by a mortgage on the property to be leased without equally and ratably securing the Notes; or 

(b)    within 120 days, the Issuer applies the greater of the net proceeds of the sale of the leased
property or the fair value of the leased property, net of all Notes delivered under this Twenty-Second Supplemental Indenture, to the voluntary retirement of Funded Debt and/or the acquisition or construction of a Principal Property. 

Section 4.08    Exempted Transactions. 

Notwithstanding the provisions of Sections 4.06 and 4.07, if the aggregate outstanding principal amount of all Indebtedness of the Issuer
and its Subsidiaries that is subject to and not otherwise permitted under these restrictions does not exceed 15% of the Consolidated Net Tangible Assets of the Issuer and its Subsidiaries, then: 

(a)    the Issuer or any of its Subsidiaries may issue, assume or guarantee Indebtedness secured by
Mortgages; and 
 (b)    the Issuer or any of its Subsidiaries may enter into any Sale and Lease-Back
Transaction. 
 Section 4.09    Corporate Existence. 

Subject to Article 5 hereof the Issuer, and so long as any Notes in respect of which the Guarantee has been outstanding, the Parent Guarantor,
shall do or cause to be done all things necessary to preserve and keep in full force and effect (i) its corporate existence, rights (charter or statutory), licenses and franchises; provided that neither the Issuer nor the Parent
Guarantor shall be required to preserve any such right, license or franchise, if respective board of directors shall in good faith determine that the preservation thereof is no longer desirable in the conduct of the business. 

Section 4.10    Offer to Repurchase upon Change of Control. 

(a)    If a Change of Control occurs, unless the Issuer has previously or concurrently mailed a redemption notice with
respect to all the outstanding Notes as described under Section 3.07 hereof, the Issuer shall make an offer to purchase all of the Notes pursuant to the offer described below (the “Change of Control Offer”) at a price in cash
(the “Change of Control Payment”) equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase, subject to the right of Holders of the Notes of record on the relevant
Record Date to receive interest due 

  
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on the relevant Interest Payment Date. Within 30 days following any Change of Control, the Issuer shall send notice of such Change of Control Offer by first-class mail, with a copy to the Trustee
and the Registrar, to each Holder of Notes to the address of such Holder appearing in the security register with a copy to the Trustee and the Registrar or otherwise in accordance with the procedures of DTC, with the following information: 

(1)    that a Change of Control Offer is being made pursuant to this Section 4.10 and that all Notes
properly tendered pursuant to such Change of Control Offer will be accepted for payment by the Issuer; 

(2)    the purchase price and the purchase date, which will be no earlier than 30 days nor later than 60
days from the date such notice is mailed (the “Change of Control Payment Date”); 

(3)    that any Note not properly tendered will remain outstanding and continue to accrue interest; 

(4)    that unless the Issuer defaults in the payment of the Change of Control Payment, all Notes accepted
for payment pursuant to the Change of Control Offer will cease to accrue interest on the Change of Control Payment Date; 

(5)    that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be
required to surrender such Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of such Notes completed, to the paying agent specified in the notice at the address specified in the notice prior to the close of
business on the third Business Day preceding the Change of Control Payment Date; 
 (6)    that Holders
shall be entitled to withdraw their tendered Notes and their election to require the Issuer to purchase such Notes, provided that the paying agent receives, not later than the close of business on the 30th day following the date of the Change
of Control notice, a telegram, facsimile transmission or letter setting forth the name of the Holder of the Notes, the principal amount of Notes tendered for purchase, and a statement that such Holder is withdrawing its tendered Notes and its
election to have such Notes purchased; 
 (7)    Holders tendering less than all of their Notes will be
issued new Notes and such new Notes will be equal in principal amount to the unpurchased portion of the Notes surrendered. The unpurchased portion of the Notes must be equal to $2,000 or an integral multiple of $1,000 in excess thereof; and 

(8)    the other instructions, as determined by the Issuer, consistent with this Section 4.10, that a
Holder must follow. 
 The notice, if mailed in a manner herein provided, shall be conclusively presumed to have been given, whether or not
the Holder receives such notice. If (a) the notice is mailed in a manner herein provided and (b) any Holder fails to receive such notice or a Holder receives such notice but it is defective, such Holder’s failure to receive such
notice or such defect shall not affect the validity of the proceedings for the purchase of the Notes as to all other Holders that properly received such notice without defect. The Issuer shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws or regulations are applicable in connection with the repurchase of Notes pursuant to a Change of Control
Offer. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.10, the Issuer shall comply with the applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 4.10 by virtue thereof. 

  
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 (b)    On the Change of Control Payment Date, the Issuer shall, to the
extent permitted by law, 
 (1)    accept for payment all Notes issued by it or portions thereof properly
tendered pursuant to the Change of Control Offer; 
 (2)    deposit with the Paying Agent an amount equal
to the aggregate Change of Control Payment in respect of all Notes or portions thereof so tendered; and 

(3)    deliver, or cause to be delivered, to the Trustee for cancellation the Notes so accepted together
with an Officer’s Certificate to the Trustee stating that such Notes or portions thereof have been tendered to and purchased by the Issuer. 

(c)    The Issuer shall not be required to make a Change of Control Offer following a Change of Control if
a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.10 applicable to a Change of Control Offer made by the Issuer and purchases all Notes
validly tendered and not withdrawn under such Change of Control Offer. Notwithstanding anything to the contrary herein, a Change of Control Offer may be made in advance of a Change of Control, conditional upon such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of making of the Change of Control Offer. 

(d)    Other than as specifically provided in this Section 4.10, any purchase pursuant to this
Section 4.10 shall be made pursuant to the provisions of Sections 3.02, 3.05 and 3.06 hereof. 

Section 4.11    Discharge and Suspension of Covenants. 

(a)    If on any date following the Issue Date (i) the Notes have Investment Grade Ratings from both Rating Agencies
and (ii) no Default has occurred and is continuing under this Twenty-Second Supplemental Indenture, the Issuer and the Subsidiaries will not be subject to Section 4.10 hereof (the “Suspended Covenant”). 

(b)    In the event that the Issuer and the Subsidiaries are not subject to the Suspended Covenant under this Twenty-Second
Supplemental Indenture for any period of time as a result of the foregoing, and on any subsequent date (the “Reversion Date”) one or both of the Rating Agencies (1) withdraw their Investment Grade Rating or downgrade the rating
assigned to the Notes below an Investment Grade Rating and/or (2) the Issuer or any of its Affiliates enters into an agreement to effect a transaction that would result in a Change of Control and one or more of the Rating Agencies indicate that
if consummated, such transaction (alone or together with any related recapitalization or refinancing transactions) would cause such Rating Agency to withdraw its Investment Grade Rating or downgrade the ratings assigned to the Notes below an
Investment Grade Rating, then the Issuer and the Subsidiaries shall thereafter again be subject to the Suspended Covenant under this Twenty-Second Supplemental Indenture with respect to future events, including, without limitation, a proposed
transaction described in clause (2) above. 
 (c)    In the event of any such reinstatement, no action taken or
omitted to be taken by the Issuer or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under this Twenty-Second Supplemental Indenture with respect to the Notes. 

  
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 (d)    The Issuer shall deliver promptly to the Trustee an
Officer’s Certificate notifying it of any such occurrence under this Section 4.11. 
 ARTICLE 5 

SUCCESSORS 

Section 5.01    Merger, Consolidation or Sale of All or Substantially All Assets. 

(a)    Neither the Issuer nor the Parent Guarantor, as applicable, shall consolidate or merge with or into or transfer or
lease all or substantially all of its assets to (whether or not the Issuer or the Parent Guarantor, as applicable, is the surviving corporation), any Person unless: 

(1)    either: (x) the Issuer or the Parent Guarantor, as applicable, is the surviving corporation; or
(y) (i) in the case of the Issuer, the Person formed by or surviving any such consolidation or merger (if other than the Issuer) or to which such transfer or lease, will have been made is a corporation organized or existing under the laws of
the jurisdiction of organization of the Issuer or the laws of the United States, any state thereof, the District of Columbia, or any territory thereof (such Person, as the case may be, being herein called the “Successor Entity”)
expressly assumes, pursuant to supplemental indentures or other documents or instruments in form reasonably satisfactory to the Trustee, all obligations of the Issuer under the Notes and this Twenty-Second Supplemental Indenture as if such Successor
Entity were a party to this Twenty-Second Supplemental Indenture; and (ii) in the case of the Parent Guarantor, the Successor Entity assumes the Parent Guarantor’s obligations under this Twenty-Second Supplemental Indenture and the
Guarantee, as if such Successor Entity were an original party to this Twenty-Second Supplemental Indenture and such Guarantee; 

(2)    after giving effect to such transaction, no Event of Default, and no event which, after notice or
lapse of time or both, would become an Event of Default, shall have occurred and be continuing; 

(3)    if, as a result of any such consolidation or merger or such conveyance, transfer or lease,
properties or assets of the Issuer or the Parent Guarantor, as applicable, would become subject to a mortgage, pledge, lien, security interest or other encumbrance that would not be permitted by this Twenty-Second Supplemental Indenture, the Issuer
or the Parent Guarantor, as applicable, or such Successor Entity or Person, as the case may be, shall take such steps as shall be necessary effectively to secure all the Notes or the Guarantee, as applicable, equally and ratably with (or prior to)
all indebtedness secured thereby; and, 
 (4)    the Issuer or the Parent Guarantor, as applicable,
shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture, if any, comply with this Twenty-Second Supplemental Indenture and,
if a supplemental indenture is required in connection with such transaction, such supplement shall comply with the applicable provisions of this Twenty-Second Supplemental Indenture. 

(b)    The Successor Entity shall succeed to, and be substituted for the Issuer or the Parent Guarantor, as applicable, as
the case may be, under this Twenty-Second Supplemental Indenture and the Notes or the Guarantee, each as applicable. Notwithstanding clause (3) of Section 5.01(a) hereof, 

  
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 (1)    any Subsidiary may consolidate with or merge into
or transfer all or part of its properties and assets to the Issuer, and 
 (2)    the Issuer may merge
with an Affiliate of the Issuer, as the case may be, solely for the purpose of reincorporating the Issuer in a State of the United States or any state thereof, the District of Columbia or any territory thereof so long as the amount of Indebtedness
of the Issuer and its Subsidiaries is not increased thereby. 
 Section 5.02    Successor Corporation
Substituted. 
 Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the assets of the Issuer or the Parent Guarantor, as applicable, in accordance with Section 5.01 hereof, the successor corporation formed by such consolidation or into or with which the Issuer is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this
Twenty-Second Supplemental Indenture referring to the Issuer or the Parent Guarantor, as applicable, shall refer instead to the successor corporation and not to the Issuer or the Parent Guarantor, as applicable), and may exercise every right and
power of the Issuer or the Parent Guarantor, as applicable, under this Twenty-Second Supplemental Indenture with the same effect as if such successor Person had been named as the Issuer or the Parent Guarantor, as applicable, herein; provided
that the predecessor Issuer shall not be relieved from the obligation to pay the principal of and interest on the Notes except in the case of a sale, assignment, transfer, conveyance or other disposition of all of the Issuer’s assets that meets
the requirements of Section 5.01 hereof. 
 ARTICLE 6 

DEFAULTS AND REMEDIES 

Section 6.01    Events of Default. 

(a)    An “Event of Default” wherever used herein, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 
 (1)    default in payment when due and payable, upon redemption, acceleration or otherwise, of
principal of, or premium, if any, on the Notes; 
 (2)    default for a period of 30 days or more in the
payment when due of interest on or with respect to the Notes; 
 (3)    default in any deposit of any
sinking fund payment in respect of the Notes when and as due by the terms of the Notes; 
 (4)    default
in the performance, or breach, of any covenant or warranty of the Issuer in this Twenty-Second Supplemental Indenture (other than a covenant or warranty in whose performance or whose breach is elsewhere in this Section specifically dealt with), and
continuance of such default or breach for a period of 60 days after there has been given written notice by the Holders of at least 10% in principal amount of the outstanding Notes specifying such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder; 

  
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 (5)    the Issuer or the Parent Guarantor pursuant to or
within the meaning of any Bankruptcy Law: 
 (i)    commences proceedings to be adjudicated bankrupt or
insolvent; 
 (ii)    consents to the institution of bankruptcy or insolvency proceedings against it, or
the filing by it of a petition or answer or consent seeking reorganization or relief under applicable Bankruptcy Law; 

(iii)    consents to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or other
similar official of it or for all or substantially all of its property; 
 (iv)    makes a general
assignment for the benefit of its creditors; or 
 (v)    generally is not paying its debts as they
become due; 
 (6)    a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: 
 (i)    is for relief against the Issuer or the Parent Guarantor, in a proceeding in which
the Issuer or the Parent Guarantor is to be adjudicated bankrupt or insolvent; 
 (ii)    appoints a
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Issuer or the Parent Guarantor, or for all or substantially all of the property of the Issuer or the Parent Guarantor; or 

(iii)    orders the liquidation of the Issuer or the Parent Guarantor; 

and the order or decree remains unstayed and in effect for 60 consecutive days; or 

(7)    The Guarantee shall for any reason cease to be in full force and effect or be declared null and void
or any responsible officer of the Parent Guarantor denies that it has any further liability under its Guarantee or gives notice to such effect, other than by reason of the termination of this Twenty-Second Supplemental Indenture or the release of
any such Guarantee in accordance with this Twenty-Second Supplemental Indenture. 

Section 6.02    Acceleration. 

(a)    If any Event of Default (other than an Event of Default specified in clause (5) or (6) of
Section 6.01(a) hereof) occurs and is continuing under this Twenty-Second Supplemental Indenture, the Trustee or the Holders of at least 25% in aggregate principal amount of the then total outstanding Notes may declare the principal amount of
all the then outstanding Notes to be due and payable immediately. Upon the effectiveness of such declaration, such principal and interest shall be due and payable immediately. The Trustee shall have no obligation to accelerate the Notes if and so
long as a committee of its Responsible Officers in good faith determines acceleration is not in the best interest of the Holders of the Notes. 

  
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 (b)    Notwithstanding the foregoing, in the case of an Event of Default
arising under clause (5) or (6) of Section 6.01(a) hereof, all outstanding Notes shall be due and payable immediately without further action or notice. 

(c)    The Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the
Issuer and the Trustee may on behalf of all of the Holders rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal, interest
or premium that has become due solely because of the acceleration) have been cured or waived. 

Section 6.03    Other Remedies. 

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal, premium, if
any, and interest on the Notes or to enforce the performance of any provision of the Notes or this Twenty-Second Supplemental Indenture. 

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay
or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law. 
 Section 6.04    Waiver of Past Defaults. 

Holders of not less than a majority in aggregate principal amount of the then outstanding Notes by notice to the Trustee may on behalf of the
Holders of all of the Notes waive any existing Default and its consequences hereunder, except a past Default in the payment (a) in principal of, premium if any, or interest on, any Note, or in the payment of any sinking fund installment with
respect to the Notes, or (b) in respect of a covenant or provision hereof which pursuant to Article 9 hereof cannot be modified or amended, without the consent of Holders of each outstanding Note affected); provided, subject to
Section 6.02 hereof, that the Holders of a majority in aggregate principal amount of the then outstanding Notes may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration. Upon
any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Twenty-Second Supplemental Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon. 
 Section 6.05    Control by Majority. 

The Holders of a majority in principal amount of the then total outstanding Notes may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. The Trustee, however, may refuse to follow any direction that conflicts with law or this Twenty-Second Supplemental Indenture or that
the Trustee determines is unduly prejudicial to the rights of any other Holder of a Note or that would involve the Trustee in personal liability. 

  
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 Section 6.06    Limitation on Suits. 

Subject to Section 6.07 hereof, no Holder of a Note may pursue any remedy with respect to this Twenty-Second Supplemental Indenture or
the Notes unless: 
 (1)    such Holder has previously given the Trustee notice that an Event of Default
is continuing; 
 (2)    Holders of at least 25% in principal amount of the total outstanding Notes have
requested the Trustee to pursue the remedy; 
 (3)    Holders of the Notes have offered the Trustee
security or indemnity reasonably satisfactory to it against any loss, liability or expense; 
 (4)    the
Trustee has not complied with such request within 60 days after the receipt thereof and the offer of security or indemnity; and 

(5)    Holders of a majority in principal amount of the total outstanding Notes have not given the Trustee
a direction inconsistent with such request within such 60-day period. 
 A Holder of a Note may not
use this Twenty-Second Supplemental Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another Holder of a Note. 

Section 6.07    Rights of Holders of Notes to Receive Payment. 

Notwithstanding any other provision of this Twenty-Second Supplemental Indenture, the right of any Holder of a Note to receive payment of
principal and premium, if any, and interest on the Note, on or after the respective due dates expressed in the Note (including in connection with a Change of Control Offer), or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder. 

Section 6.08    Collection Suit by Trustee. 

If an Event of Default specified in Section 6.01(a)(1) or (2) hereof occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Issuer for the whole amount of principal of, premium, if any, and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest
and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

Section 6.09    Restoration of Rights and Remedies. 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Twenty-Second Supplemental Indenture and
such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceedings, the Issuer, the Trustee and the
Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding has been instituted. 

Section 6.10    Rights and Remedies Cumulative. 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.07
hereof, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition
to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of
any other appropriate right or remedy. 

  
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 Section 6.11    Delay or Omission Not Waiver. 

No delay or omission of the Trustee or of any Holder of any Note to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
 Section 6.12    Trustee May
File Proofs of Claim. 
 The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings
relative to the Issuer (or any other obligor upon the Notes including the Parent Guarantor), its creditors or its property and shall be entitled and empowered to participate as a member in any official committee of creditors appointed in such matter
and to collect, receive and distribute any money or other property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in
any such proceeding. 
 Section 6.13    Priorities. 

If the Trustee collects any money pursuant to this Article 6, it shall pay out the money in the following order: 

(i)    to the Trustee, Paying Agent, Registrar, Transfer Agent, their agents and attorneys for amounts due
under Section 7.07 hereof, including payment of all compensation, expenses and liabilities incurred, and all advances made, by the Trustee, Paying Agent, Registrar or Transfer Agent and the costs and expenses of collection; 

(ii)    to Holders of Notes for amounts due and unpaid on the Notes for principal, premium, if any, and
interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal and premium, if any, and interest, respectively; and 

  
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 (iii)    to the Issuer or to such party as a court of
competent jurisdiction shall direct, including the Parent Guarantor, if applicable. 
 The Trustee may fix a record date and payment date
for any payment to Holders of Notes pursuant to this Section 6.13. 
 Section 6.14    Undertaking for
Costs. 
 In any suit for the enforcement of any right or remedy under this Twenty-Second Supplemental Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.14 does not apply to a suit by the
Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes. 

ARTICLE 7 
 TRUSTEE 

Section 7.01    Duties of Trustee. 

(a)    If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers
vested in it by this Twenty-Second Supplemental Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 

(b)    Except during the continuance of an Event of Default: 

(i)    the duties of the Trustee shall be determined solely by the express provisions of this Twenty-Second
Supplemental Indenture and the Trustee need perform only those duties that are specifically set forth in this Twenty-Second Supplemental Indenture and no others, and no implied covenants or obligations shall be read into this Twenty-Second
Supplemental Indenture against the Trustee; and 
 (ii)    in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Twenty-Second Supplemental
Indenture. However, in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they
conform to the requirements of this Twenty-Second Supplemental Indenture. 
 (c)    The Trustee may not be relieved from
liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 

(i)    this paragraph does not limit the effect of paragraph (b) of this Section 7.01; 

  
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 (ii)    the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved in a court of competent jurisdiction that the Trustee was negligent in ascertaining the pertinent facts; and 

(iii)    the Trustee shall not be liable with respect to any action it takes or omits to take in good faith
in accordance with a direction received by it pursuant to Section 6.05 hereof. 
 (d)    Whether or not therein
expressly so provided, every provision of this Twenty-Second Supplemental Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01. 

(e)    The Trustee shall be under no obligation to exercise any of its rights or powers under this Twenty-Second
Supplemental Indenture at the request or direction of any of the Holders of the Notes unless the Holders have offered to the Trustee indemnity or security reasonably satisfactory to it against any loss, liability or expense. 

(f)    The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing
with the Issuer. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

Section 7.02    Rights of Trustee. 

(a)    The Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer, personally or by agent or attorney at the sole cost of the Issuer and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation. 
 (b)    Before the Trustee acts or
refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of
Counsel. The Trustee may consult with counsel of its selection and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon. 
 (c)    The Trustee may act through its attorneys and
agents and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care. 

(d)    The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be
authorized or within the rights or powers conferred upon it by this Twenty-Second Supplemental Indenture. 

(e)    Unless otherwise specifically provided in this Twenty-Second Supplemental Indenture, any demand, request, direction
or notice from the Issuer shall be sufficient if signed by an Officer of the Issuer. 
 (f)    None of the provisions of
this Twenty-Second Supplemental Indenture shall require the Trustee to expend or risk its own funds or otherwise to incur any liability, financial or otherwise, in the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not assured to it. 

  
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 (g)    The Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Twenty-Second Supplemental Indenture. 
 (h)    In no event shall the Trustee be
responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action. 
 (i)    The rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder. 

Section 7.03    Individual Rights of Trustee. 

The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or any
Affiliate of the Issuer with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue
as trustee or resign. Any Agent may do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof. 

Section 7.04    Trustee’s Disclaimer. 

The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Twenty-Second Supplemental
Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes or any money paid to the Issuer or upon the Issuer’s direction under any provision of this Twenty-Second Supplemental Indenture, it
shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Twenty-Second Supplemental Indenture other than its certificate of authentication. 

Section 7.05    Notice of Defaults. 

If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice of the Default
within 90 days after it occurs. Except in the case of a Default relating to the payment of principal, premium, if any, or interest on any Note, the Trustee may withhold from the Holders notice of any continuing Default if and so long as a committee
of its Responsible Officers in good faith determines that withholding the notice is in the interests of the Holders of the Notes. The Trustee shall not be deemed to know of any Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is such a Default is received by the Trustee at the Corporate Trust Office of the Trustee. 

  
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 Section 7.06    Reports by Trustee to Holders of the Notes.

 Within 60 days after each May 15, beginning with the May 15 following the date of this Twenty-Second Supplemental Indenture,
and for so long as Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a brief report dated as of such reporting date that complies with Trust Indenture Act Section 313(a) (but if no event described in Trust Indenture
Act Section 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). The Trustee also shall comply with Trust Indenture Act Section 313(b)(2). The Trustee shall also transmit by mail all
reports as required by Trust Indenture Act Section 313(c). 
 A copy of each report at the time of its mailing to the Holders of Notes
shall be mailed to the Issuer and filed with the SEC and each stock exchange on which the Notes are listed in accordance with Trust Indenture Act Section 313(d). The Issuer shall promptly notify the Trustee when the Notes are listed on any
stock exchange. 
 Section 7.07    Compensation and Indemnity. 

The Issuer and the Parent Guarantor, jointly and severally, shall pay to the Trustee from time to time such compensation for its acceptance of
this Twenty-Second Supplemental Indenture and services hereunder as the parties shall agree in writing from time to time. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuer
and the Parent Guarantor, jointly and severally, shall reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses shall
include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel. 
 The Issuer and the Parent
Guarantor, jointly and severally, shall indemnify the Trustee for, and hold the Trustee harmless against, any and all loss, damage, claims, liability or expense (including attorneys’ fees) incurred by it in connection with the acceptance or
administration of this trust and the performance of its duties hereunder (including the costs and expenses of enforcing this Twenty-Second Supplemental Indenture against the Issuer or the Parent Guarantor (including this Section 7.07) or
defending itself against any claim whether asserted by any Holder or the Issuer or the Parent Guarantor, or liability in connection with the acceptance, exercise or performance of any of its powers or duties hereunder). The Trustee shall notify the
Issuer promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Issuer shall not relieve the Issuer of its obligations hereunder. The Issuer shall defend the claim and the Trustee may have separate counsel and
the Issuer shall pay the fees and expenses of such counsel. The Issuer need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own willful misconduct, negligence or bad
faith. 
 The obligations of the Issuer and the Parent Guarantor under this Section 7.07 shall survive the satisfaction and discharge
of this Twenty-Second Supplemental Indenture or the earlier resignation or removal of the Trustee. 
 To secure the payment obligations of
the Issuer and the Guarantee in this Section 7.07, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Notes. Such
Lien shall survive the satisfaction and discharge of this Twenty-Second Supplemental Indenture. 
 When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(a)(5) or (6) hereof occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law. 

  
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 The Trustee shall comply with the provisions of Trust Indenture Act Section 313(b)(2)
to the extent applicable. As used in this Section 7.07, the term “Trustee” shall also include each of the Paying Agent, Registrar, and Transfer Agent, as applicable. 

Section 7.08    Replacement of Trustee. 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08. The Trustee may resign in writing at any time and the Registrar, Paying Agent and Transfer Agent may resign with 90 days prior written notice and be discharged from the trust hereby
created by so notifying the Issuer. The Holders of a majority in principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuer in writing and may remove the Registrar, Paying Agent or Transfer Agent
by so notifying such Registrar, Paying Agent or Transfer Agent, as applicable, with 90 days prior written notice. The Issuer may remove the Trustee if: 

(a)    the Trustee fails to comply with Section 7.10 hereof; 

(b)    the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee
under any Bankruptcy Law; 
 (c)    a custodian or public officer takes charge of the Trustee or its property; or 

(d)    the Trustee becomes incapable of acting. 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Issuer shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Issuer. 

If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee (at the
Issuer’s expense), the Issuer or the Holders of at least 10% in principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

If the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.10
hereof, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Twenty-Second Supplemental Indenture. The successor Trustee shall mail a notice
of its succession to Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in
Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Issuer’s obligations under Section 7.07 hereof shall continue for the benefit of the retiring Trustee. 

  
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 As used in this Section 7.08, the term “Trustee” shall also include each of
the Paying Agent, Registrar and Transfer Agent, as applicable. 
 Section 7.09    Successor Trustee by Merger,
etc. 
 If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation, the successor corporation without any further act shall be the successor Trustee. 

Section 7.10    Eligibility; Disqualification. 

There shall at all times be a Trustee hereunder that is a corporation or national banking association organized and doing business under the
laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. 
 This Twenty-Second Supplemental
Indenture shall always have a Trustee who satisfies the requirements of Trust Indenture Act Sections 310(a)(1), (2) and (5). The Trustee is subject to Trust Indenture Act Section 310(b). 

Section 7.11    Preferential Collection of Claims Against Issuer. 

The Trustee is subject to Trust Indenture Act Section 311(a), excluding any creditor relationship listed in Trust Indenture Act
Section 311(b). A Trustee who has resigned or been removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated therein. 

ARTICLE 8 
 LEGAL DEFEASANCE AND
COVENANT DEFEASANCE 
 Section 8.01    Option to Effect Legal Defeasance or Covenant Defeasance. 

The Issuer may, at its option and at any time, elect to have either Section 8.02 or 8.03 hereof applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8. 
 Section 8.02    Legal Defeasance and
Discharge. 
 Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the
Issuer and the Parent Guarantor shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with respect to all outstanding Notes and the Guarantee on the date
the conditions set forth below are satisfied (“Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes,
which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Twenty-Second Supplemental Indenture referred to in (a) and (b) below, and to have satisfied all its
other obligations under such Notes and this Twenty-Second Supplemental Indenture including that of the Parent Guarantor (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except
for the following provisions which shall survive until otherwise terminated or discharged hereunder: 

(a)    the rights of Holders of Notes to receive payments in respect of the principal of, premium, if any,
and interest on the Notes when such payments are due solely out of the trust created pursuant to this Twenty-Second Supplemental Indenture referred to in Section 8.04 hereof; 

  
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 (b)    the Issuer’s obligations with respect to
such Notes under Article 2 and Section 4.02 hereof; 
 (c)    the rights, powers, trusts, duties and
immunities of the Trustee, and the Issuer’s obligations in connection therewith; and 
 (d)    this
Section 8.02. 
 Subject to compliance with this Article 8, the Issuer may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof. 
 Section 8.03    Covenant
Defeasance. 
 Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the
Issuer shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants contained in Sections 4.03, 4.04, 4.06, 4.07, 4.08, 4.09 and 4.10 hereof and
Section 5.01(a) hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 hereof are satisfied (“Covenant Defeasance”), and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all
other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Issuer may omit to comply with and
shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Twenty-Second
Supplemental Indenture and such Notes shall be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, Sections 6.01(a)(3), 6.01(a)(5), 6.01(a)(6) and 6.01(a)(7) hereof shall not constitute Events of Default. 

Section 8.04    Conditions to Legal or Covenant Defeasance. 

The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the outstanding Notes: 

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to the Notes: 

(1)    the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of
the Notes, cash in U.S. dollars, Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and
interest due on the Notes on 

  
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the stated Maturity Date or on the Redemption Date, as the case may be, of such principal, premium, if any, or interest on such Notes, and the Issuer must specify whether such Notes are being
defeased to maturity or to a particular Redemption Date; 
 (2)    in the case of Legal Defeasance, the
Issuer shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that, subject to customary assumptions and exclusions, 

(a)    the Issuer has received from, or there has been published by, the United States Internal Revenue
Service a ruling, or 
 (b)    since the issuance of the Notes, there has been a change in the applicable
U.S. federal income tax law, 
 in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, subject to
customary assumptions and exclusions, the Holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes, as applicable, as a result of such Legal Defeasance and will be subject to U.S. federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

(3)    in the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that, subject to customary assumptions and exclusions, the Holders of the Notes will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Covenant
Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 

(4)    no Default (other than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens in connection therewith) shall have occurred and be continuing on the date of such deposit; 

(5)    such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under any material agreement or instrument (other than this Twenty-Second Supplemental Indenture) to which the Issuer or the Parent Guarantor is a party or by which the Issuer or the Parent Guarantor is bound (other than that
resulting from borrowing funds to be applied to make the deposit required to effect such Legal Defeasance or Covenant Defeasance and any similar and simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens in
connection therewith); 
 (6)    the Issuer shall have delivered to the Trustee an Opinion of Counsel to
the effect that, as of the date of such opinion and subject to customary assumptions and exclusions following the deposit, the trust funds will not be subject to the effect of Section 547 of Title 11 of the United States Code; 

(7)    the Issuer shall have delivered to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Issuer with the intent of defeating, hindering, delaying or defrauding any creditors of the Issuer or the Parent Guarantor or others; and 

  
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 (8)    the Issuer shall have delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions and exclusions) each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance, as the case may be, have been complied with. 
 Section 8.05    Deposited Money and Government
Securities to Be Held in Trust; Other Miscellaneous Provisions. 
 Subject to Section 8.06 hereof, all money and Government
Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Twenty-Second Supplemental Indenture, to the payment, either directly or through any Paying Agent (including the Issuer or
the Parent Guarantor acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium and interest, but such money need not be segregated from other funds
except to the extent required by law. 
 The Issuer shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or Government Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Notes. 
 Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuer from
time to time upon the written request of the Issuer any money or Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(2) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance. 
 Section 8.06    Repayment to Issuer. 

Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust for the payment of the principal of, premium or
interest on any Note and remaining unclaimed for two years after such principal, premium or interest has become due and payable shall be paid to the Issuer on its request or (if then held by the Issuer) shall be discharged from such trust; and the
Holder of such Note shall thereafter look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuer as trustee thereof, shall thereupon cease. 

Section 8.07    Reinstatement. 

If the Trustee or Paying Agent is unable to apply any United States dollars or Government Securities in accordance with Section 8.04 or
8.05 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuer’s obligations under this Twenty-Second Supplemental
Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.04 or 8.05 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 8.04 or 8.05 hereof, as the case may be; provided that, if the Issuer makes any payment of principal of, premium or interest on any Note following the reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent. 

  
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 ARTICLE 9 

AMENDMENT, SUPPLEMENT AND WAIVER 

Section 9.01    Without Consent of Holders of Notes. 

Notwithstanding Section 9.02 hereof, the Issuer, the Parent Guarantor (with respect to the Guarantee or this Twenty-Second Supplemental
Indenture) and the Trustee may amend or supplement this Twenty-Second Supplemental Indenture, Notes or the Guarantee without the consent of any Holder: 

(1)    to evidence the succession of another corporation to the Issuer or the Parent Guarantor and the
assumption by such successor of the covenants of the Issuer or the Parent Guarantor in compliance with the requirements set forth in this Twenty-Second Supplemental Indenture; or 

(2)    to add to the covenants for the benefit of the Holders or to surrender any right or power herein
conferred upon the Issuer or the Parent Guarantor; or 
 (3)    to add any additional Events of
Default; or 
 (4)    to change or eliminate any of the provisions of this Twenty-Second Supplemental
Indenture, provided that any such change or elimination shall become effective only when there are no outstanding Notes of any series created prior to the execution of such supplemental indenture that is entitled to the benefit of such
provision and as to which such supplemental indenture would apply; or 
 (5)    to secure the
Notes; or 
 (6)    to supplement any of the provisions of this Twenty-Second Supplemental Indenture
to such extent necessary to permit or facilitate the defeasance and discharge of the Notes, provided that any such action does not adversely affect the interests of the Holders of the Notes in any material respect; or 

(7)    to evidence and provide for the acceptance of appointment hereunder by a successor Trustee and to
add to or change any of the provisions of this Twenty-Second Supplemental Indenture necessary to provide for or facilitate the administration of the trusts by more than one Trustee; or 

(8)    to cure any ambiguity to correct or supplement any provision of this Twenty-Second Supplemental
Indenture which may be defective or inconsistent with any other provision; or 
 (9)    to change
any place or places where the principal of and premium, if any, and interest, if any, on the Notes shall be payable, the Notes may be surrendered for registration or transfer, the Notes may be surrendered for exchange, and notices and demands to or
upon the Issuer may be served; or 
 (10)    to comply with requirements of the SEC in order to effect or
maintain the qualification of this Twenty-Second Supplemental Indenture under the Trust Indenture Act; or 

  
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 (11)    to conform the text of this Twenty-Second
Supplemental Indenture, the Guarantee or the Notes to any provision of the “Description of the Notes” section of the Prospectus to the extent that such provision in such “Description of the Notes” section was intended to be a
verbatim recitation of a provision of this Twenty-Second Supplemental Indenture, the Guarantee or the Notes; or 

(12)    to make any amendment to the provisions of this Twenty-Second Supplemental Indenture relating to
the transfer and legending of Notes as permitted by this Twenty-Second Supplemental Indenture, including, without limitation to facilitate the issuance and administration of the Notes; provided, however, that (i) compliance with
this Twenty-Second Supplemental Indenture as so amended would not result in Notes being transferred in violation of the Securities Act or any applicable securities law and (ii) such amendment does not materially and adversely affect the rights
of Holders to transfer Notes. 
 Upon the request of the Issuer accompanied by a resolution of its board of directors authorizing the
execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee shall join with the Issuer and the Parent Guarantor in the execution of any amended or
supplemental indenture authorized or permitted by the terms of this Twenty-Second Supplemental Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter
into such amended or supplemental indenture that affects its own rights, duties or immunities under this Twenty-Second Supplemental Indenture or otherwise. 

Section 9.02    With Consent of Holders of Notes. 

Except as provided below in this Section 9.02, the Issuer, the Parent Guarantor and the Trustee may amend or supplement this
Twenty-Second Supplemental Indenture, the Guarantee and the Notes with the consent of the Holders of at least a majority in principal amount of the Notes (including Additional Notes, if any) then outstanding voting as a single class (including,
without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal of, premium or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Twenty-Second Supplemental Indenture, the
Guarantee or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including Additional Notes, if any) voting as a single class (including consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes). Section 2.08 hereof and Section 2.09 hereof shall determine which Notes are considered to be “outstanding” for the purposes of this Section 9.02. 

Upon the request of the Issuer accompanied by a resolution of its board of directors authorizing the execution of any such amended or
supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the
Trustee shall join with the Issuer in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under this Twenty-Second Supplemental
Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental indenture. 

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed
amendment or waiver, but it shall be sufficient if such consent approves the substance thereof. 

  
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 After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Issuer shall mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the
validity of any such amended or supplemental indenture or waiver. 
 Without the consent of each affected Holder of Notes, an amendment or
waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder): 

(1)    change the stated maturity of the principal of, or installment of interest, if any, on, the Notes,
or reduce the principal amount thereof or the interest thereon or any premium payable upon redemption thereof; 

(2)    change the currency in which the principal of (and premium, if any) or interest on such Notes are
denominated or payable, or reduce the amount of the principal of a discount security that would be due and payable upon redemption thereof; 

(3)    adversely affect the right of repayment or repurchase, if any, at the option of the Holder after
such obligation arises, or reduce the amount of, or postpone the date fixed for, any payment under any sinking fund or impair the right to institute suit for the enforcement of any payment on or after the stated maturity thereof (or, in the case of
redemption, on or after the Redemption Date); 
 (4)    reduce the percentage of Holders whose
consent is required for modification or amendment of this Twenty-Second Supplemental Indenture or for waiver of compliance with certain provisions of this Twenty-Second Supplemental Indenture or certain defaults;

(5)    modify the provisions that require Holder consent to modify or amend this Twenty-Second Supplemental
Indenture or that permit Holders to waive compliance with certain provisions of this Twenty-Second Supplemental Indenture or certain defaults; or 

(6)    except as expressly permitted by this Twenty-Second Supplemental Indenture, modify the Guarantee in
any manner adverse to the Holders of the Notes. 
 Section 9.03    Compliance with Trust Indenture Act. 

Every amendment or supplement to this Twenty-Second Supplemental Indenture or the Notes shall be set forth in an amended or supplemental
indenture that complies with the Trust Indenture Act as then in effect. 
 Section 9.04    Revocation and Effect
of Consents. 
 Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing
consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note
or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective. An amendment, supplement or waiver becomes effective in
accordance with its terms and thereafter binds every Holder; provided that any amendment or waiver that requires the consent of each affected Holder shall not become effective with respect to any
non-consenting Holder. 

  
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 The Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement, or waiver. If a record date is fixed, then, notwithstanding the preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and
only such Persons, shall be entitled to consent to such amendment, supplement, or waiver or to revoke any consent previously given, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date unless the consent of the requisite number of Holders has been obtained. 

Section 9.05    Notation on or Exchange of Notes. 

The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Issuer in
exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement or waiver. 

Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

 Section 9.06    Trustee to Sign Amendments, etc. 

The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee. The Issuer may not sign an amendment, supplement or waiver until the board of directors approves it. In executing any amendment, supplement or waiver, the Trustee shall
be entitled to receive and (subject to Section 7.01 hereof) shall be fully protected in relying upon, in addition to the documents required by Section 12.04 hereof, an Officer’s Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted by this Twenty-Second Supplemental Indenture and that such amendment, supplement or waiver is the legal, valid and binding obligation of the Issuer and the Parent
Guarantor, enforceable against them in accordance with its terms, subject to customary exceptions, and complies with the provisions hereof (including Section 9.03). 

Section 9.07    Payment for Consent. 

Neither the Issuer nor any Affiliate of the Issuer shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Twenty-Second Supplemental Indenture or the Notes unless such consideration is offered to all Holders and
is paid to all Holders that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement. 

ARTICLE 10 
 GUARANTEE 

Section 10.01    Guarantee. 

(a)    The Parent Guarantor hereby unconditionally guarantees the punctual payment when due, whether at stated maturity,
by acceleration or otherwise, of all of the monetary obligations of the Issuer under this Twenty-Second Supplemental Indenture and the Notes, whether for principal or interest on the Notes, expenses, indemnification or otherwise (all such
obligations of the Parent Guarantor being herein referred to as the “Parent Guaranteed Obligations”). 

  
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 (b)    It is the intention of the Parent Guarantor that the Guarantee
not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Guarantee. To
effectuate the foregoing intention, the amount guaranteed by the Parent Guarantor under the Guarantee shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other contingent and fixed liabilities of the
Parent Guarantor that are relevant under such laws, result in the obligations of the Parent Guarantor under the Guarantee not constituting a fraudulent transfer or conveyance. 

(c)    The Parent Guarantor guarantees that the Parent Guaranteed Obligations will be paid strictly in accordance with the
terms of this Twenty-Second Supplemental Indenture, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Holders of the Notes with respect thereto. The liability of
the Parent Guarantor under the Guarantee shall be absolute and unconditional irrespective of: 

(i)    any lack of validity, enforceability or genuineness of any provision of this Twenty-Second
Supplemental Indenture, the Notes or any other agreement or instrument relating thereto; 
 (ii)    any
change in the time, manner or place of payment of, or in any other term of, all or any of the Parent Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from this Twenty-Second Supplemental Indenture; 

(iii)    any exchange, release or non-perfection of any collateral,
or any release or amendment or waiver of or consent to departure from any other guarantee, for all or any of the Parent Guaranteed Obligations; or 

(iv)    any other circumstance that might otherwise constitute a defense available to, or a discharge of,
the Issuer or a guarantor. 
 (d)    The Parent Guarantor covenants and agrees that its obligation to make payments of
the Parent Guaranteed Obligations hereunder constitutes an unsecured obligation of the Parent Guarantor ranking pari passu with all existing and future senior unsecured indebtedness of the Parent Guarantor that is not subordinated in right of
payment to the Guarantee. 
 (e)    The Parent Guarantor hereby waives promptness, diligence, notice of acceptance and
any other notice with respect to the Guarantee and any requirement that the Trustee, or the Holders of any Notes protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action
against the Issuer or any other Person or any collateral. 
 (f)    The Parent Guarantor hereby irrevocably waives any
claims or other rights that it may now or hereafter acquire against the Issuer that arise from the existence, payment, performance or enforcement of the Parent Guarantor’s obligations under the Guarantee or this Twenty-Second Supplemental
Indenture, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Trustee, or the Holders of any Notes against the Issuer or any
collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Issuer, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right. If any amount shall be paid to the Parent Guarantor in violation of the preceding sentence at any time prior to the cash
payment in full 

  
 -49- 

 
of the Parent Guaranteed Obligations and all other amounts payable under the Guarantee, such amount shall be held in trust for the benefit of the Trustee and the Holders of any Notes and shall
forthwith be paid to the Trustee, to be credited and applied to the Parent Guaranteed Obligations and all other amounts payable under the Guarantee, whether matured or unmatured, in accordance with the terms of this Twenty-Second Supplemental
Indenture and the Guarantee, or be held as collateral for any Parent Guarantor Obligations or other amounts payable under the Guarantee thereafter arising. The Parent Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Twenty-Second Supplemental Indenture and the Guarantee and that the waiver set forth in this Section 10.01 is knowingly made in contemplation of such benefits. 

(g)    No failure on the part of the Trustee or any Holder of the Notes to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder 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. 
 (h)    The Guarantee is a continuing guarantee and shall (a) subject
to paragraph 10.01(i), remain in full force and effect until payment in full of the principal amount of all outstanding Notes (whether by payment at maturity, purchase, redemption, defeasance, retirement or other acquisition) and all other
applicable Parent Guaranteed Obligations of the Parent Guarantor then due and owing, (b) be binding upon the Parent Guarantor, its successors and assigns, and (c) inure to the benefit of and be enforceable by the Trustee, any Holder of
Notes, and by their respective successors, transferees, and assigns. 
 (i)    The Parent Guarantor will automatically
and unconditionally be released from all Parent Guaranteed Obligations, and the Guarantee shall thereupon terminate and be discharged and of no further force of effect, (i) upon any merger or consolidation of such Parent Guarantor with the
Issuer, (ii) upon exercise by the Issuer of its Legal Defeasance option or Covenant Defeasance option in accordance with Article 8 hereof or the discharge of the Issuer’s obligations under this Twenty-Second Supplemental Indenture, in
accordance with the terms of this Twenty-Second Supplemental Indenture, or (iii) upon payment in full of the aggregate principal amount of all Notes then outstanding and all other applicable Parent Guaranteed Obligations of the Parent Guarantor
then due and owing. 
 Upon any such occurrence specified in this paragraph 10.01(i), the Trustee shall execute upon request by the Issuer,
any documents reasonably required in order to evidence such release, discharge and termination in respect of the Guarantee. Neither the Issuer nor the Parent Guarantor shall be required to make a notation on the Notes to reflect the Guarantee or any
such release, termination or discharge. 
 (j)    The Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against the Issuer for liquidation, reorganization, should the Issuer become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Notes are, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on the Notes or Guarantee, whether as a “voidable preference,” “fraudulent transfer” or otherwise, all as though such payment or performance
had not been made. In the event that any payment or any part thereof, is rescinded, reduced, restored or returned, the Notes shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned. 

  
 -50- 

 (k)    The Parent Guarantor may amend the Guarantee at any time for any
purpose without the consent of the Trustee or any Holder of the Notes; provided, however, that if such amendment adversely affects (a) the rights of the Trustee or (b) any Holder of the Notes, the prior written consent of the
Trustee (in the case of (b), acting at the written direction of the Holders of more than 50% in aggregate principal amount of Notes) shall be required. 

ARTICLE 11 
 SATISFACTION AND
DISCHARGE 
 Section 11.01    Satisfaction and Discharge. 

This Twenty-Second Supplemental Indenture shall be discharged and shall cease to be of further effect as to all Notes, when either: 

(1)    all Notes theretofore authenticated and delivered, except lost, stolen or destroyed Notes which have
been replaced or paid and Notes for whose payment money has theretofore been deposited in trust, have been delivered to the Trustee for cancellation; or 

(2)    (A) all Notes not theretofore delivered to the Trustee for cancellation have become due and payable
by reason of the making of a notice of redemption or otherwise, shall become due and payable within one year or may be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuer, and the Issuer or the Parent Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders of the Notes, cash in
U.S. dollars, Government Securities, or a combination thereof, in such amounts as will be sufficient without consideration of any reinvestment of interest to pay and discharge the entire indebtedness on the Notes not theretofore delivered to the
Trustee for cancellation for principal, premium, if any, and accrued interest to the date of maturity or redemption; 

(B)    no Default (other than that resulting from borrowing funds to be applied to make such deposit and
any similar and simultaneous deposit relating to other Indebtedness and, in each case, the granting of Liens in connection therewith) with respect to this Twenty-Second Supplemental Indenture or the Notes shall have occurred and be continuing on the
date of such deposit or shall occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Twenty-Second Supplemental Indenture)
to which the Issuer or the Parent Guarantor is a party or by which the Issuer is bound (other than that resulting from borrowing funds to be applied to make such deposit and any similar and simultaneous deposit relating to other Indebtedness and in
each case, the granting of Liens in connection therewith); 
 (C)    the Issuer has paid or caused to be
paid all sums payable by it under this Twenty-Second Supplemental Indenture; and 
 (D)    the Issuer has
delivered irrevocable instructions to the Trustee to apply the deposited money toward the payment of the Notes at maturity or the Redemption Date, as the case may be. 

In addition, the Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the Trustee stating that all conditions
precedent to satisfaction and discharge have been satisfied. 

  
 -51- 

 Notwithstanding the satisfaction and discharge of this Twenty-Second Supplemental Indenture,
if money shall have been deposited with the Trustee pursuant to subclause (A) of clause (2) of this Section 11.01, the provisions of Section 11.02 and Section 8.06 hereof shall survive. 

Section 11.02    Application of Trust Money. 

Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee pursuant to Section 11.01 hereof shall be
held in trust and applied by it, in accordance with the provisions of the Notes and this Twenty-Second Supplemental Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent
required by law. 
 If the Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with
Section 11.01 hereof by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s and the Parent
Guarantor’s obligations under this Twenty-Second Supplemental Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 hereof; provided that if the Issuer has made any
payment of principal of, premium or interest on any Notes because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent. 
 ARTICLE 12 

MISCELLANEOUS 

Section 12.01    Trust Indenture Act Controls. 

If any provision of this Twenty-Second Supplemental Indenture limits, qualifies or conflicts with the duties imposed by Trust Indenture Act
Section 318(c), the imposed duties shall control. 
 Section 12.02    Notices. 

Any notice or communication by the Issuer, the Parent Guarantor or the Trustee to the others is duly given if in writing and delivered in
person or mailed by first-class mail (registered or certified, return receipt requested), fax or overnight air courier guaranteeing next day delivery, to the others’ address: 

If to the Issuer: 
 HCA Inc. 

One Park Plaza 
 Nashville,
Tennessee 37203 
 Fax No.: (615) 344-1600; Attention: General Counsel 

  
 -52- 

 If to the Parent Guarantor: 

HCA Healthcare, Inc. 
 c/o HCA
Inc. 
 One Park Plaza 

Nashville, Tennessee 37203 
 Fax
No.: (615) 344-1600; Attention: General Counsel 
 If to the Trustee: 

Delaware Trust Company 
 251
Little Falls Drive 
 Wilmington Delaware 19808 

Attention: Corporate Trust Administration 

If to the Registrar, Paying Agent or Transfer Agent: 

Deutsche Bank Trust Company Americas 

c/o Deutsche Bank National Trust Company 

Trust & Securities Services 

100 Plaza One, Mailstop JCY03-0699 

Jersey City, New Jersey 07311 

Fax No.: (732) 578-4635 

Attn: Corporates Team Deal Manager – HCA Inc. 

The Issuer, the Parent Guarantor or the Trustee, by notice to the others, may designate additional or different addresses for subsequent
notices or communications. 
 All notices and communications (other than those sent to Holders) shall be deemed to have been duly given: at
the time delivered by hand, if personally delivered; five calendar days after being deposited in the mail, postage prepaid, if mailed by first-class mail; when receipt acknowledged, if faxed; and the next Business Day after timely delivery to the
courier, if sent by overnight air courier guaranteeing next day delivery; provided that any notice or communication delivered to the Trustee shall be deemed effective upon actual receipt thereof. 

Any notice or communication to a Holder shall be mailed by first-class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication shall also be so mailed to any Person described in Trust Indenture Act Section 313(c), to the extent
required by the Trust Indenture Act. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee
receives it. 
 If the Issuer mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same
time. 
 Section 12.03    Communication by Holders of Notes with Other Holders of Notes. 

Holders may communicate pursuant to Trust Indenture Act Section 312(b) with other Holders with respect to their rights under this
Twenty-Second Supplemental Indenture or the Notes. The Issuer, the Trustee, the Registrar and anyone else shall have the protection of Trust Indenture Act Section 312(c). 

  
 -53- 

 Section 12.04    Certificate and Opinion as to Conditions
Precedent. 
 Upon any request or application by the Issuer or the Parent Guarantor to the Trustee to take any action under this
Twenty-Second Supplemental Indenture, the Issuer or the Parent Guarantor, as the case may be, shall furnish to the Trustee: 

(a)    An Officer’s Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the
statements set forth in Section 12.05 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Twenty-Second Supplemental Indenture relating to the proposed action have been
satisfied; and 
 (b)    An Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall
include the statements set forth in Section 12.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

Section 12.05    Statements Required in Certificate or Opinion. 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Twenty-Second Supplemental Indenture
(other than a certificate provided pursuant to Section 4.03 hereof or Trust Indenture Act Section 314(a)(4)) shall comply with the provisions of Trust Indenture Act Section 314(e) and shall include: 

(a)    a statement that the Person making such certificate or opinion has read such covenant or condition;

 (b)    a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; 
 (c)    a statement that, in
the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with (and, in the case of an Opinion of
Counsel, may be limited to reliance on an Officer’s Certificate as to matters of fact); and 

(d)    a statement as to whether or not, in the opinion of such Person, such condition or covenant has been
complied with. 
 Section 12.06    Rules by Trustee and Agents. 

The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions. 
 Section 12.07    No Personal Liability of Directors, Officers,
Employees and Stockholders. 
 No director, officer, employee, incorporator or stockholder of the Issuer or the Parent Guarantor shall
have any liability for any obligations of the Issuer or the Parent Guarantor under the Notes, the Guarantee or this Twenty-Second Supplemental Indenture or for any claim based on, in respect of, or by reason of such obligations or their creation.
Each Holder by accepting the Notes waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

  
 -54- 

 Section 12.08    Governing Law. 

THIS TWENTY-SECOND SUPPLEMENTAL INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. 
 Section 12.09    Waiver of Jury Trial. 

EACH OF THE ISSUER, THE PARENT GUARANTOR AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS TWENTY-SECOND SUPPLEMENTAL INDENTURE, THE GUARANTEE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

Section 12.10    Force Majeure. 

In no event shall the Trustee, Paying Agent, Registrar or Transfer Agent be responsible or liable for any failure or delay in the performance
of its obligations under this Twenty-Second Supplemental Indenture arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including without limitation strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services. 

Section 12.11    No Adverse Interpretation of Other Agreements. 

This Twenty-Second Supplemental Indenture may not be used to interpret any other indenture, loan or debt agreement of the Issuer or its
Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used to interpret this Twenty-Second Supplemental Indenture. 

Section 12.12    Successors. 

All agreements of the Issuer in this Twenty-Second Supplemental Indenture and the Notes shall bind its successors. All agreements of the
Trustee and the Paying Agent, Registrar and Transfer Agent in this Twenty-Second Supplemental Indenture shall bind their respective successors. 

Section 12.13    Severability. 

In case any provision in this Twenty-Second Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 12.14    Counterpart Originals. 

The parties may sign any number of copies of this Twenty-Second Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. 

  
 -55- 

 Section 12.15    Table of Contents, Headings, etc. 

The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this Twenty-Second Supplemental Indenture have been
inserted for convenience of reference only, are not to be considered a part of this Twenty-Second Supplemental Indenture and shall in no way modify or restrict any of the terms or provisions hereof. 

Section 12.16    Qualification of Twenty-Second Supplemental Indenture. 

The Issuer and the Parent Guarantor shall qualify this Twenty-Second Supplemental Indenture under the Trust Indenture Act in accordance with
and to the extent required by the terms and conditions of the Registration Rights Agreement and shall pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Issuer, the Parent Guarantor and the Trustee) incurred
in connection therewith, including, but not limited to, costs and expenses of qualification of this Twenty-Second Supplemental Indenture and the Notes and printing this Twenty-Second Supplemental Indenture and the Notes. The Trustee shall be
entitled to receive from the Issuer and the Parent Guarantor any such Officer’s Certificates, Opinions of Counsel or other documentation as it may reasonably request in connection with any such qualification of this Twenty-Second Supplemental
Indenture under the Trust Indenture Act. 
 Section 12.17    USA Patriot Act. 

The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act, the Trustee and Agents, like all financial
institutions and in order to help fight the funding of terrorism and money laundering, are required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account. The
parties to this agreement agree that they will provide the Trustee and the Agents with such information as they may request in order to satisfy the requirements of the USA Patriot Act. 

[Signatures on following pages] 

  
 -56- 

 
					
	HCA INC.
			
	By:	 	 	 	/s/ J. William B. Morrow
		 	Name:	 	J. William B. Morrow
		 	Title:	 	Senior Vice President – Finance and Treasurer

  

					
	HCA HEALTHCARE, INC., as Parent Guarantor
			
	By:	 	 	 	/s/ J. William B. Morrow
		 	Name:	 	J. William B. Morrow
		 	Title:	 	Senior Vice President – Finance and Treasurer

  
 Supplemental Indenture
No. 22 

 
					
	DELAWARE TRUST COMPANY, as Trustee
			
	By:	 	 	 	/s/ Alan R. Halpern
		 	Name:	 	Alan R. Halpern
		 	Title:	 	Vice President

  
 Supplemental Indenture
No. 22 

 
					
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Paying Agent, Registrar and Transfer Agent
	
	By: Deutsche Bank National Trust Company
			
	By:	 	 	 	/s/ Debra A. Schwalb
		 	Name:	 	Debra A. Schwalb
		 	Title:	 	Vice President

  

					
	By:	 	 	 	/s/ Chris Niesz
		 	Name:	 	Chris Niesz
		 	Title:	 	Vice President

  
 Supplemental Indenture
No. 22 

 EXHIBIT A 

[Face of Note] 
 [Insert the
Global Note Legend, if applicable, pursuant to the provisions of the Twenty-Second Supplemental Indenture] 

 CUSIP
[                        ]

ISIN
[                        ]1 

GLOBAL NOTE 
 5.875% Senior Notes
due 2029 
  

			
	No.         	  	[$                            ]

 HCA INC. 

promises to pay to CEDE & CO. or registered assigns, the principal sum [set forth on the Schedule of Exchanges of Interests in the Global Note
attached hereto] [of
                                         
            United States Dollars] on February 1, 2029. 
 Interest Payment Dates:
February 1 and August 1 
 Record Dates: January 15 and July 15 

 
  

 
 1 

									
	CUSIP Numbers:	  	404119 BW8	  		  		  	
	ISIN Numbers:	  	US404119BW86	  		  		  	

  
 A-2 

 IN WITNESS HEREOF, the Issuer has caused this instrument to be duly executed. 

Dated: January 30, 2019 
  

			
	HCA INC.
		
	By:	 	 
		 	Name:
		 	Title:

  
 A-3 

 This is one of the Notes referred to in the within-mentioned Twenty-Second Supplemental Indenture: 

 

			
	DELAWARE TRUST COMPANY, as Trustee
		
	By:	 	 
		 	Authorized Signatory

  
 A-4 

 [Back of Note] 

5.875% Senior Notes due 2029 

Capitalized terms used herein shall have the meanings assigned to them in the Twenty-Second Supplemental Indenture referred to below unless
otherwise indicated. 
 1.    INTEREST. HCA Inc., a Delaware corporation, promises to pay interest on the principal
amount of this Note at 5.875% per annum from January 30, 2019 until maturity. The Issuer will pay interest semi-annually in arrears on February 1 and August 1 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided
that the first Interest Payment Date shall be August 1, 2019. The Issuer will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at
the interest rate on the Notes; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at
the interest rate on the Notes. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

2.    METHOD OF PAYMENT. The Issuer will pay interest on the Notes to the Persons who are registered Holders of Notes at
the close of business on the January 15 and July 15 (whether or not a Business Day), as the case may be, next preceding the Interest Payment Date, even if such Notes are cancelled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.12 of the Twenty-Second Supplemental Indenture with respect to defaulted interest. Payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of
Holders, provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest, premium on, all Global Notes and all other Notes the Holders of which shall have provided wire transfer
instructions to the Issuer or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3.    PAYING AGENT AND REGISTRAR. Initially, Deutsche Bank Trust Company Americas will act as Paying Agent and Registrar.
The Issuer may change any Paying Agent or Registrar without notice to the Holders. The Issuer or any of its Subsidiaries may act in any such capacity. 

4.    TWENTY-SECOND SUPPLEMENTAL INDENTURE. The Issuer issued the Notes under the Base Indenture dated as of
August 1, 2011 (the “Base Indenture”) among HCA Inc., the Parent Guarantor, the Trustee and the Paying Agent, Registrar and Transfer Agent, as supplemented by Supplemental Indenture No. 22, dated as of January 30,
2019 (the “Twenty-Second Supplemental Indenture”), among HCA Inc., the Parent Guarantor, the Trustee and the Paying Agent, Registrar and Transfer Agent. This Note is one of a duly authorized issue of notes of the Issuer designated
as its 5.875% Senior Notes due 2029. The Issuer shall be entitled to issue Additional Notes pursuant to Section 2.01 of the Twenty-Second Supplemental Indenture. The terms of the Notes include those stated in the Twenty-Second Supplemental
Indenture and those made part of the Twenty-Second Supplemental Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and Holders are referred to
the Twenty-Second Supplemental Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Twenty-Second Supplemental Indenture or the Base Indenture, the provisions of
the Twenty-Second Supplemental Indenture shall govern and be controlling. 

  
 A-5 

 5.    OPTIONAL REDEMPTION. 

(a)    Except as set forth below, the Issuer will not be entitled to redeem Notes at its option prior to the Maturity
Date. 
 (b)    Prior to August 1, 2028, the Notes will be redeemable, at the Issuer’s option, at any time in
whole or from time to time in part, at a redemption, or “make-whole,” price equal to the greater of: (i) 100% of the aggregate principal amount of the Notes to be redeemed, and (ii) an amount equal to the sum of the present
value of (A) the payment on August 1, 2028 of the principal of the Notes to be redeemed and (B) the payment of the remaining scheduled payments through August 1, 2028 of interest on the Notes to be redeemed (excluding accrued and
unpaid interest to the date of redemption (the “Redemption Date”) and subject to the right of Holders on the relevant Record Date to receive interest due on the relevant Interest Payment Date), in each case discounted from their
scheduled date of payment to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using a discount rate equal to the
Treasury Rate plus 50 basis points plus, in each of the above cases, accrued and unpaid interest, if any, to such Redemption Date. 

On and after August 1, 2028, the Notes will be redeemable, at the Issuer’s option, at any time in whole or from time to time in
part, at a redemption price equal to 100% of the principal amount of such Notes plus accrued and unpaid interest, if any, to such Redemption Date. 

(c)    Any notice of any redemption may be given prior to the redemption thereof, and any such redemption or notice may,
at the Issuer’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion of an Equity Offering or other corporate transaction. 

(d)    If the Issuer redeems less than all of the outstanding Notes, the Registrar and Paying Agent shall select the Notes
to be redeemed in the manner described under Section 3.02 of the Twenty-Second Supplemental Indenture. 

(e)    Any redemption pursuant to this paragraph 5 shall be made pursuant to the provisions of Sections 3.01
through 3.06 of the Twenty-Second Supplemental Indenture. 
 6.    MANDATORY REDEMPTION. The Issuer shall not be
required to make mandatory redemption or sinking fund payments with respect to the Notes. 
 7.    NOTICE OF REDEMPTION.
Subject to Section 3.03 of the Twenty-Second Supplemental Indenture, notice of redemption will be mailed by first-class mail at least 30 days but not more than 60 days before the Redemption Date (except that redemption notices may be mailed
more than 60 days prior to a Redemption Date if the notice is issued in connection with Article 8 of the Twenty-Second Supplemental Indenture) to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger
than $2,000 may be redeemed in part but only in whole multiples of $1,000 in excess thereof, unless all of the Notes held by a Holder are to be redeemed. On and after the Redemption Date interest ceases to accrue on Notes or portions thereof called
for redemption. 
 8.    OFFERS TO REPURCHASE. Upon the occurrence of a Change of Control, the Issuer shall make an
offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (the “Change of Control Payment”). The Change of Control Offer shall be made in accordance with Section 4.10 of the Twenty-Second
Supplemental Indenture. 

  
 A-6 

 9.    DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered
form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and Notes may be exchanged as provided in the Twenty-Second Supplemental Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Twenty-Second Supplemental Indenture. The
Issuer need not exchange or register the transfer of any Notes or portion of Notes selected for redemption, except for the unredeemed portion of any Notes being redeemed in part. Also, the Issuer need not exchange or register the transfer of any
Notes for a period of 15 days before a selection of Notes to be redeemed. 
 10.    PERSONS DEEMED OWNERS. The
registered Holder of a Note may be treated as its owner for all purposes. 
 11.    AMENDMENT, SUPPLEMENT AND WAIVER.
The Twenty-Second Supplemental Indenture, the Guarantee or the Notes may be amended or supplemented as provided in the Twenty-Second Supplemental Indenture. 

12.    DEFAULTS AND REMEDIES. The Events of Default relating to the Notes are defined in Section 6.01 of the
Twenty-Second Supplemental Indenture. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes may declare the principal, premium, if any, interest and
any other monetary obligations on all the then outstanding Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will
become due and payable immediately without further action or notice. Holders may not enforce the Twenty-Second Supplemental Indenture, the Notes or the Guarantee except as provided in the Twenty-Second Supplemental Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default (except
a Default relating to the payment of principal, premium, if any, or interest) if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing Default or and its consequences under the Twenty-Second Supplemental Indenture except a continuing Default in payment of the principal of, premium, if any, or interest on,
any of the Notes held by a non-consenting Holder. The Issuer is required to deliver to the Trustee annually a statement regarding compliance with the Twenty-Second Supplemental Indenture, and the Issuer is
required within five (5) Business Days after becoming aware of any Default, to deliver to the Trustee a statement specifying such Default and what action the Issuer proposes to take with respect thereto. 

13.    AUTHENTICATION. This Note shall not be entitled to any benefit under the Twenty-Second Supplemental Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature of the Trustee. 
 14.    [RESERVED].

 15.    GOVERNING LAW. THE TWENTY-SECOND SUPPLEMENTAL INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 16.    CUSIP/ISIN NUMBERS. Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP/ISIN numbers to be printed on the Notes and the Trustee may use CUSIP/ISIN numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

  
 A-7 

 The Issuer will furnish to any Holder upon written request and without charge a copy of the
Twenty-Second Supplemental Indenture. Requests may be made to the Issuer at the following address: 
 HCA Inc. 

One Park Plaza 
 Nashville,
Tennessee 37203 
 Fax No.: (615) 344-1600; Attention: General Counsel 

Fax No.: (615) 344-1600; Attention: Treasurer 

  
 A-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 
  

			
	(I) or (we) assign and transfer this Note to:	  	 
		  	(Insert assignee’s legal name)
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

			
	and irrevocably appoint	  	 
	to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

  

			
	Date:	 	 

  

			
	Your Signature:	 	 
		 	(Sign exactly as your name appears on the face of this Note)

  

			
	Signature Guarantee*:	 	 
		 	

 * Participant in a recognized Signature Guarantee Medallion Program (or other 

signature guarantor acceptable to the Trustee). 

  
 A-9 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 of the Twenty-Second Supplemental Indenture,
check the appropriate box below: 
 [    ] Section 4.10 

If you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.10 of the Twenty-Second Supplemental
Indenture, state the amount you elect to have purchased: 

$                       
              
  

			
	Date:	 	 

  

			
	Your Signature:	 	 
		 	(Sign exactly as your name appears on the face of this Note)

  

			
	Tax Identification No.:	 	 

  

			
	Signature Guarantee*:	 	 

 * Participant in a recognized Signature Guarantee Medallion Program (or other 

signature guarantor acceptable to the Trustee). 

  
 A-10 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE* 

The initial outstanding principal amount of this Global Note is
$                            . The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	 Date of
Exchange
	 	 Amount of
decrease
in
Principal
Amount of this
Global Note
	 	
Amount of increase
in Principal
Amount of 
this
Global Note
	 	
Principal Amount
of
this Global Note
following 
such
decrease or
increase
	 	
Signature of
authorized officer
of Trustee 
or
Registrar

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

	*	 This schedule should be included only if the Note is issued in global form. 

  
 A-11Exhibit 10.1

 

	

    	

    

 

REVOLVING NOTE AND CASH SUBORDINATION AGREEMENT

 

THIS AGREEMENT is entered into this 29th day of January, 2019, between MB Financial Bank, N.A. (the “Lender”) and J.V.B. Financial Group, LLC (the “Broker/Dealer”). This Agreement shall not be effective or deemed to constitute a satisfactory subordination agreement under Appendix D to Rule 15c3-1 under the Securities Exchange Act of 1934, as amended (the “Act” or “SEA”), unless and until the Financial Industry Regulatory Authority (“FINRA”) has found the Agreement acceptable as to form and content.

 

1.                                      GENERAL

 

(a) Subject to the terms and conditions hereinafter set forth, the Lender agrees that from time to time between the date first written above and the 10th day of April, 2020 (the “Credit Period”) it will lend to the Broker/Dealer sums of money on a revolving basis (each an “Advance”, collectively “Advances”) which, in the aggregate principal amount outstanding at any one time, shall not exceed Seventeen Million Five Hundred Thousand Dollars ($17,500,000) (the “Credit Line” or “Commitment Amount”).

 

(b) During the Credit Period, the Broker/Dealer may utilize the Credit Line  (as then in effect) by borrowing and/or prepaying outstanding Advances, in whole or in part, and reborrowing, all in accordance with the terms and provisions hereof. Each Advance shall be in the aggregate amount of One Million Dollars ($1,000,000) or higher integral multiple of Five Hundred Thousand Dollars ($500,000), or such lesser amount as would bring the total principal amount advanced by Lender to Broker/Dealer to the Commitment Amount.

 

(c) The Broker/Dealer is obligated to repay the aggregate unpaid principal amount of all Advances on or before the 10th day of April, 2021 (the “Scheduled Maturity Date”).  No Advance shall be considered equity (for purposes of Appendix D of Rule 15c3-1 under the Act) despite the length of the initial term of any Advance.

 

(d) The obligation of the Broker/Dealer to repay the aggregate unpaid principal amount of the Advances shall be evidenced by a promissory note of the Broker/Dealer (the “Revolving Note”) in substantially the form attached hereto as Exhibit A (with the blank spaces appropriately completed), payable to the order of the Lender, for an amount not exceeding in the aggregate the Credit Line and bearing interest at rates to be agreed upon by the Broker/Dealer and the Lender at the time of any Advance.  The Revolving Note shall be dated, and shall be delivered to the Lender, on the date of the execution and delivery of this Agreement by the Broker/Dealer.  The Lender shall, and is hereby authorized by the Broker/Dealer to, endorse on the schedule attached to the Revolving Note, or on a continuation of such schedule attached thereto and made a part thereof, appropriate notations regarding each Advance evidenced by the Revolving Note as specifically provided therein;  provided, however, that the failure to make, or error in making, any such notation shall not limit or otherwise affect the obligations of the Broker/Dealer hereunder or under the Revolving Note.

 

(e) Whenever the Broker/Dealer desires to utilize the Credit Line, it shall so notify the Lender by telephone or any agreed upon electronic method specifying the amount of the Advance and the date on which each such Advance is to be made.  Such notice will also be given and confirmed in writing, to FINRA.  Notice shall, at a minimum, identify (i) the date and amount of the proposed Advance, (ii) the aggregate amount of outstanding Advances and (iii) if the Advance is to be used to repay, in whole or in part, outstanding Advances, the amount and maturity of such Advance(s).

 

(f)  The proceeds hereof shall be dealt with in all respects as capital of the Broker/Dealer, shall be 

 

 

subject to the risks of its business, and the Broker/Dealer shall have the right to deposit the proceeds hereof in an account or accounts in the Broker/Dealer’s name in any bank or trust company.

 

(g) This document contains several provisions which are optional and may be included in this Agreement if the parties mutually agree to incorporate such provisions.  Each such provision is flagged by [OPTIONAL] appearing at the conclusion of its heading. The space to the left of each such provision enables the parties to indicate, by entering the word “Included”, to incorporate the particular provision(s).  Any provision noted as [OPTIONAL] that has the word “Excluded” in the space to the left of such provision or lacks any appropriate indication for inclusion, by default, will not be included in this Agreement.  In addition, paragraph 23 of this Agreement (“Optional Rider”), if incorporated by the parties, presents a vehicle for the parties to add their own provisions to this Agreement, subject to the terms and conditions there stated.

 

2.                                      SUBORDINATION OF OBLIGATIONS

 

The Lender irrevocably agrees that the obligations of the Broker/Dealer under this Agreement with respect to the payment of principal and interest are and shall be fully and irrevocably subordinate in right of payment and subject to the prior payment or provision for payment in full of all claims of all other present and future creditors of the Broker/Dealer whose claims are not similarly subordinated (claims hereunder shall rank pari passu with claims similarly subordinated) and to claims which are now or hereafter expressly stated in the instruments creating such claims to be senior in right of payment to the claims of the class of this claim arising out of any matter occurring prior to the date on which the Broker/Dealer’s obligation to make such payment matures consistent with the provisions hereof.  In the event of the appointment of a receiver or trustee of the Broker/Dealer or in the event of its insolvency, liquidation pursuant to the Securities Investor Protection Act of 1970 (“SIPA”) or otherwise, its bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the Broker/Dealer, the holder hereof shall not be entitled to participate or share, ratably or otherwise, in the distribution of the assets of the Broker/Dealer until all claims of all other present and future creditors of the Broker/Dealer, whose claims are senior hereto, have been fully satisfied, or adequate provision has been made therefor.

 

3.                                      SUSPENDED REPAYMENT

 

(a) The Broker/Dealer’s obligation to pay the principal amount hereof on the Scheduled Maturity Date or any accelerated maturity date shall be suspended and the obligation shall not mature for any period of time during which, after giving effect to such payment  obligation (together with the payment of any other obligation of the Broker/Dealer under any other subordination agreement payable at or prior to the payment hereof as well as the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer and returnable at or prior to the payment hereof), any of the following circumstances apply at the time payment is to be made:

 

(i)                                     in the event that the Broker/Dealer is not operating pursuant to the alternative net capital requirement provided for in paragraph (a)(1)(ii) of Rule 15c3-1 (the “Rule”) under the Act, the aggregate indebtedness of the Broker/Dealer would exceed 1200 percent of its net capital as those terms are defined in the Rule or any successor rule in effect, or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the Securities and Exchange Commission (the “SEC”), or

 

(ii)                                  in the event that the Broker/Dealer is operating pursuant to paragraph (a)(1)(ii) of the Rule (the “Alternative Net Capital Requirement”), the net capital of the Broker/Dealer would be less than 5 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule in effect, or

 

2

 

(iii)                               the Broker/Dealer’s net capital, as defined in the Rule or any successor rule in effect, would be less than 120 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

 

(iv)                              in the event that the Broker/Dealer is subject to the provisions of Paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test (or such other percent test as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules,  or by the SEC) stated in such applicable paragraph, or

 

(v)                                 in the event that the Broker/Dealer is registered under the Commodity Exchange Act (the “CEA”), the net capital of the Broker/Dealer (as defined in and calculated in accordance with the CEA or the regulations thereunder) would be less than the percent or amount specified in Section 1.17(h)(2)(viii) of the regulations of the Commodity Futures Trading Commission (“CFTC”) or any successor regulation in effect.

 

(the above criteria being hereinafter referred to as the “Applicable Minimum Capital”).

 

(b) During any such period of suspension the Broker/Dealer shall, as consistent  with the protection of its customers, promptly reduce its business to a condition whereby the principal amount hereof with accrued interest thereon could be paid (together with the payment of any other obligation of the Broker/Dealer under any other subordination agreement payable at or prior to the payment hereof as well as the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer and returnable at or prior to the payment hereof) without the Broker/Dealer’s net capital being below the Applicable Minimum Capital, at which time the Broker/Dealer shall repay the principal amount hereof plus accrued interest thereon on not less than five days’ prior written notice to FINRA.

 

(c) The aggregate principal amount outstanding pursuant to this Agreement shall mature on the first day at which under this paragraph 3 the Broker/Dealer has an obligation to pay the principal amount hereof.

 

(d) If payment is made of all or any part of the principal hereof on the Scheduled Maturity Date or any accelerated maturity date and if immediately after any such payment the Broker/Dealer’s net capital is less than the Applicable Minimum Capital, the Lender agrees irrevocably (whether or not such Lender had any knowledge or notice of such fact at the time of any such payment) to repay to the Broker/Dealer, its successors or assigns, the sum so paid, to be held by the Broker/Dealer pursuant to the provisions hereof as if such payment had never been made; provided, however, that any demand by the Broker/Dealer to recover such payment must be made in writing to the Lender, a copy of which must be provided to FINRA, within 120 calendar days from the date of such payment.

 

(e) The Broker/Dealer shall immediately notify FINRA of any suspension of its obligations to pay the principal amount hereof.

 

Included

 

4.                                      LIQUIDATION OF BROKER/DEALER IF SUSPENDED FOR 6 MONTHS OR MORE [OPTIONAL]

 

If pursuant to the terms of paragraph 3 hereof, the Broker/Dealer’s obligation to pay the principal amount hereof is suspended and does not mature, the Broker/Dealer agrees (and the Lender recognizes) that if its obligation to pay the principal amount hereof is ever suspended for a period of six months or more, it will promptly take whatever steps are necessary to effect a rapid and orderly complete liquidation of its business but 

 

3

 

the right of the Lender to receive payment hereunder shall remain subordinate as herein above set forth.

 

5.                                      PERMISSIVE PREPAYMENT WITHIN AND AFTER ONE YEAR

 

(a) With the prior written approval of FINRA, any time prior to one year following the date of any Advance, the Broker/Dealer may, at its option, but not at the option of the Lender, pay all or any portion of the principal amount hereof to the Lender prior to the Scheduled Maturity Date (such payment being hereinafter referred to as “Prepayment”).  However, no Prepayment prior to one year following the date of any Advance shall be made if:

 

(i)                                     after giving effect thereto (and to all other payments of principal of outstanding subordination agreements of the Broker/Dealer, including the return of any Secured Demand Note and the Collateral therefor held  by  the  Broker/Dealer,  the  maturity  or  accelerated maturity of which are scheduled to occur within six months after the date such Prepayment is to occur pursuant to the provisions of this paragraph, or on or prior to the Scheduled Maturity Date for payment of the principal amount hereof disregarding this Paragraph, whichever date is earlier) without reference to any projected profit or loss of the Broker/Dealer, either aggregate indebtedness of the Broker/Dealer would exceed 900 percent of its net capital or its net capital would be less than 200 percent of the minimum dollar amount required by the Rule or, in the case of a Broker/Dealer operating pursuant to the Alternative Net Capital Requirement, its net capital would be less than 6 percent of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act, or, in the event that the Broker/Dealer is subject to the provisions of Paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test stated in such applicable paragraph, or, if an applicant for registration or registered under the CEA, the Broker/Dealer’s net capital would be less than the percent or amount specified in Section 1.17(h)(2)(vii)(B) of the regulations of the CFTC, or the Broker/Dealer’s net capital would be less than any such other percent or amount test as may be made applicable to the Broker/Dealer by FINRA, the SEC or the CFTC at the time Prepayment is to be made; or

 

(ii)                                  pre-tax losses of the Broker/Dealer during the latest three-month period equaled more than 15 percent of current excess net capital.

 

(b) With the prior written approval of FINRA, at any time subsequent to one year following the date of any Advance, the Broker/Dealer may, at its option, but not at the option of the Lender, make Prepayment(s).  However, no Prepayment subsequent to one year following the date of any Advance shall be made if, after giving effect thereto (and to all other payments of principal of outstanding subordination agreements of the Broker/Dealer, including the return of any Secured Demand Note and the Collateral therefor held by the Broker/Dealer, the maturity or accelerated maturity of which are scheduled to occur within six months after the date such Prepayment is to occur pursuant to the provisions of this paragraph, or on or prior to the Scheduled Maturity Date for payment of the principal amount hereof disregarding this paragraph, whichever date is earlier) without reference to any projected profit or loss of the Broker/Dealer, any of the following circumstances apply at the time such Prepayment is to be made:

 

(i)                                     in the event that the Broker/Dealer is not operating pursuant to the Alternative Net Capital Requirement, the aggregate indebtedness of the Broker/Dealer would exceed 1000 percent of its net capital as those terms are defined in the Rule or any successor rule in effect (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

 

(ii)                                  in the event that the Broker/Dealer is operating pursuant to the Alternative Net Capital Requirement, the net capital of the Broker/Dealer would be less than 5 percent (or such other percent 

 

4

 

as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule in effect, or

 

(iii)                               the Broker/Dealer’s net capital, as defined in the Rule or any successor rule in effect, would be less than 120 percent (or such other percent as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC), or

 

(iv)                              in the event that the Broker/Dealer is subject to the provisions of paragraph (a)(6)(v) or (c)(2)(x)(C) of the Rule, the net capital of the Broker/Dealer would be less than the amount required to satisfy the 1000 percent test (or such other percent test as may be made applicable to the Broker/Dealer by FINRA, pursuant to its rules, or by the SEC) stated in such applicable paragraph, or

 

(v)                                 in the event that the Broker/Dealer is registered under the Commodity Exchange Act (the “CEA”), the net capital of the Broker/Dealer (as defined in and calculated in accordance with the CEA or the regulations thereunder) would be less than the percent or amount specified in Section 1.17(h)(2)(vii)(A) of the regulations of the CFTC or any successor regulation in effect.

 

(c) If Prepayment is made of all or any part of the principal hereof prior to the Scheduled Maturity Date and if immediately after such Prepayment the Broker/Dealer’s net capital is less than the amount required to permit such Prepayment pursuant to the foregoing provisions of this paragraph, the Lender agrees irrevocably (whether or not such Lender had any knowledge or notice of such fact at the time of such Prepayment) to repay the Broker/Dealer, its successors or assigns, the sum so paid to be held by the Broker/Dealer pursuant to the provisions hereof as if such Prepayment had never been made; provided, however, that any demand by the Broker/Dealer to recover such Prepayment must be made in writing to the Lender, a copy of which must be provided to FINRA, within 120 calendar days from the date of such Prepayment.

 

6.                                      LENDER’S RIGHT TO ACCELERATE MATURITY [OPTIONAL]

 

Subject to the provisions of paragraph 3 hereof, by written notice delivered to the Broker/Dealer at its principal office and to FINRA given no sooner than six months from the date hereof, the Lender may accelerate payment to the last business day of a calendar month not less than six months after the receipt of such notice by both the Broker/Dealer and FINRA, but the right of the Lender to receive payment of the principal amount hereof and interest shall remain subordinate as hereinafter provided.

 

Included

 

7.                                      ACCELERATED MATURITY UPON THE OCCURRENCE OF AN EVENT OF ACCELERATION [OPTIONAL]

 

(a) By prior written notice to the Broker/Dealer at its principal office and to FINRA upon the occurrence of any Event of Acceleration (as herein after defined), given no sooner than six months from the effective date of this Agreement, the Lender may  accelerate the maturity of the payment obligation of the Broker/Dealer under this Agreement, together with accrued interest or compensation thereon, to the last business day of a calendar month which is not less than six months after notice of acceleration is received by the Broker/Dealer and FINRA.  The right of the Lender to receive payment, together with accrued interest or compensation thereon, shall remain subordinate as herein above set forth.

 

(b) If, upon the acceleration of maturity resulting from the occurrence of an Event of Acceleration, the payment obligation of the Broker/Dealer is suspended pursuant to paragraph 3 hereof, and liquidation of the 

 

5

 

Broker/Dealer has not commenced on or prior to such accelerated maturity date, then notwithstanding paragraph 3 hereof, the payment obligation of the Broker/Dealer with respect to this Agreement shall mature on the day immediately following such accelerated maturity date and in any such event the payment obligations of the Broker/Dealer with respect to all other subordination agreements then outstanding shall also mature at the same time.  The right of the Lender to receive payment, together with accrued interest or compensation thereon, shall remain subordinate as herein above set forth.

 

(c) Events of Acceleration which may be included in a subordination agreement are limited by paragraph (b)(10)(i) of Appendix D to the Rule and are limited to:

 

(i)                                     Failure to pay interest or any installment of principal on a subordination agreement as scheduled;

 

(ii)                                  Failure to pay when due other money obligations of a specified material amount;

 

(iii)                               Discovery that any material, specified representation or warranty of the broker or dealer which is included in the subordination agreement and on which the subordination agreement was based or continued was inaccurate in a material respect at the time made;

 

(iv)                              Any specified and clearly measurable event which is included in the subordination agreement and which the lender and the broker or dealer agree (1) is a significant indication that the financial position of the broker or dealer has changed materially and adversely from agreed upon specified norms; or (2) could materially and adversely affect the ability of the broker or dealer to conduct its business as conducted on the date the subordination agreement was made; or (3) is a significant change in the senior management of the broker or dealer or in the general business conducted by the broker or dealer from that which obtained on the date the subordination agreement became effective;

 

(v)                                 Any continued failure to perform agreed covenants included in the subordination agreement relating to the conduct of the business of the broker or dealer or relating to the maintenance and reporting of its financial position.

 

(d) The Events of Acceleration included in this Agreement are as follows:  All events described in paragraphs 7(c)(i) through (v) above.

 

Included

 

8.                                      ACCELERATED MATURITY UPON THE OCCURRENCE OF AN EVENT OF DEFAULT [OPTIONAL]

 

(a) Notwithstanding the provisions of paragraph 3 hereof, if liquidation of the business of the Broker/Dealer has not already commenced, the payment obligation of the Broker/Dealer under this Agreement shall mature, together with accrued interest or compensation thereon, upon the occurrence of an Event of Default (as herein after defined).  The date on which such Event of Default occurs shall, if liquidation of the broker or dealer has not already commenced, be the date on which the payment obligations of the Broker/Dealer with respect to all other subordination agreements then outstanding shall mature but the right of the Lender to receive payment, together with accrued interest or compensation, shall remain subordinate as herein above set forth.

 

(b) Events of Default which may be included in a subordination agreement are limited by paragraph (b)(10)(ii) of Appendix D to the Rule and are limited to:

 

6

 

(i)                                     The making of an application by the Securities Investor Protection Corporation for a decree adjudicating that customers of the broker or dealer are in need of protection under the SIPA and the failure of the broker or dealer to obtain the dismissal of such application within 30 days;

 

(ii)                                  The aggregate indebtedness of the broker or dealer exceeding 1500 percent of its net capital or, in the case of a broker or dealer that has elected to operate under paragraph (a)(1)(ii) of the Rule, its net capital computed in accordance therewith is less than 2 percent of its aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or, if registered as a futures commission merchant, 4 percent of the funds required to be segregated pursuant to the CEA and the regulations thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, each such deduction not to exceed the amount of funds in the option customer’s account), if greater, throughout a period of 15 consecutive business days, commencing on the day the broker or dealer first determines and notifies the Examining Authority for the broker or dealer, or the Examining Authority or the Commission first determines and notifies the broker or dealer of such fact;

 

(iii)                               The Commission shall revoke the registration of the broker or dealer;

 

(iv)                              The Examining Authority shall suspend (and not reinstate within 10 days) or revoke the broker’s or dealer’s status as a member thereof;

 

(v)                                 Any receivership, insolvency, liquidation pursuant to the SIPA or otherwise, bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the broker or dealer.

 

(c) The Events of Default included in this Agreement are as follows:  All events described in paragraphs 8(c)(i) through (v) above.

 

Included

 

9.                                      LIQUIDATION OF BROKER/DEALER UPON THE OCCURRENCE OF AN EVENT OF DEFAULT [OPTIONAL]

 

If liquidation of the business of the Broker/Dealer has not already commenced, the rapid and orderly liquidation of the business of the Broker/Dealer shall then commence upon the happening of an Event of Default (defined in paragraph 8 of this Agreement.)

 

10.                               ACCELERATION IN EVENT OF INSOLVENCY

 

Notwithstanding the provisions of paragraph 3 hereof, the Broker/Dealer’s obligation to pay the unpaid principal amount hereof shall forthwith mature, together with interest accrued thereon, in the event of any receivership, insolvency, liquidation pursuant to SIPA or otherwise, bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshalling of the assets and liabilities of the Broker/Dealer; but payment of the same shall remain subordinate as herein above set forth.

 

11.                               EFFECT OF DEFAULT

 

Default in any payment hereunder, including the payment of interest, shall not accelerate the maturity hereof except as herein specifically provided, and the obligation to make payment shall remain subordinate as herein above set forth.

 

7

 

12.                               NOTICE OF MATURITY OR ACCELERATED MATURITY

 

The Broker/Dealer shall, in addition to any other notice required pursuant to this Agreement, immediately notify FINRA if:

 

(a) any acceleration of maturity occurs pursuant to the this Agreement; or

 

(b) after giving effect to all Payments of Payment Obligations (as such terms are defined in (a)(2)(iv) of Appendix D of the Rule) under subordination agreements then outstanding that are then due or mature within the following six months without reference to any projected profit or loss of the broker or dealer, the net capital of the Broker/Dealer would be less than the Applicable Minimum Capital (as that term and criteria is defined in paragraph 3 of this Agreement).

 

13.                               NON-LIABILITY OF FINRA

 

The Lender irrevocably agrees that the loan evidenced hereby is not being made in reliance upon the standing of the Broker/Dealer as a member of FINRA or upon FINRA’s surveillance of the Broker/Dealer’s financial position or its compliance with the By-Laws, rules and practices of FINRA.  The Lender has made such investigation of the Broker/Dealer and its partners, officers, directors, stockholders and other principals, from sources other than FINRA, as the Lender deems necessary and appropriate under the circumstances.  The Lender is not relying upon FINRA to provide, or cause to be provided, any information concerning or relating to the Broker/Dealer and agrees that FINRA has no responsibility to disclose, or cause to be disclosed, to the Lender any information concerning or relating to the Broker/Dealer which it may have now, or at any future time have.  The Lender agrees that neither FINRA, nor any director, officer or employee of FINRA, shall be liable to the Lender with respect to this agreement or the repayment of the loan evidenced hereby or of any interest or other compensation thereon.

 

14.                               CEA APPLICANT OR REGISTRANT NOTIFICATION REQUIREMENTS

 

If the Broker/Dealer is an applicant for registration or registered under the CEA, the Broker/Dealer agrees, consistent with the requirements of Section 1.17(h) of the regulations of the CFTC (17 CFR 1.17(h)) or any successor regulation, that:

 

(a) whenever prior written notice by the Broker/Dealer to FINRA is required pursuant to the provisions of this Agreement, the same prior written notice shall be given by the Broker/Dealer to (i) the CFTC and/or (ii) the self-regulatory organization of which the Broker/Dealer is a member and which is then designated by the CFTC as the Broker/Dealer’s designated self-regulatory organization (the “DSRO”);

 

(b) whenever prior written consent, permission or approval of FINRA is required pursuant to the provisions of this Agreement, the Broker/Dealer shall also obtain the prior written consent, permission or approval of the CFTC and/or of the DSRO; and

 

(c) whenever the Broker/Dealer provides or receives written notice of acceleration of maturity pursuant to the provisions of this Agreement, the Broker/Dealer shall promptly give written notice thereof to the CFTC and/or to the DSRO.

 

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15.                               BROKER/DEALER AND LENDER

 

(a) The term “Broker/Dealer” as used in this Agreement shall include the Broker/Dealer, its heirs, executors, administrators, successors and assigns.  The provisions of this Agreement shall be binding upon such persons.

 

(b) The term “Lender” as used in this Agreement shall include the Lender, its heirs, executors, administrators, successors and assigns. The provisions of this Agreement shall be binding upon such persons.

 

16.                               EFFECT OF FINRA MEMBERSHIP TERMINATION

 

Upon termination of the Broker/Dealer as a member of FINRA, the references herein to FINRA shall be deemed to refer to the then designated Examining Authority.  The term “Examining Authority” shall refer to the regulatory body having responsibility for inspecting or examining the Broker/Dealer for compliance with financial responsibility requirements under Section 78iii(c) of SIPA and Section 17(d) of the Act.

 

17.                               EFFECTIVE DATE

 

This Agreement shall be effective from the date on which it is approved by FINRA and executed by the parties and shall not be modified or amended without the prior written approval of FINRA.

 

18.                               ENTIRE AGREEMENT

 

This instrument, together with any rider incorporated pursuant to paragraph 23 of this Agreement, embodies the entire agreement between the Broker/Dealer and the Lender.  No other evidence of such agreement has been or will be executed or effective without the prior written consent of FINRA.

 

19.                               CANCELLATION, TRANSFER, SALE AND ENCUMBERANCE

 

(a) This agreement shall not be subject to cancellation by either party.

 

(b) This agreement may not be terminated, rescinded or modified if the effect thereof would be inconsistent with the requirements of the Rule or Appendix D to the Rule. Any and all amendments or modifications to this agreement require the prior written approval of FINRA.

 

(c) The rights and obligations under this agreement may not be transferred, sold, assigned, pledged, or otherwise encumbered or disposed of, and no lien, charge or other encumbrance may be created or permitted to be created thereon without the prior written consent of FINRA.

 

20.                               NO RIGHT OF SET-OFF

 

The Lender agrees that it is not taking and will not take or assert as security for the payment of the loan any security interest in or lien upon, whether created by contract, statute or otherwise, any property of the Broker/Dealer or any property in which the Broker/Dealer may have an interest, which is or at any time may be in the possession or subject to the control of the Lender.  The Lender hereby waives, and further agrees that it will not seek to obtain payment of the loan in whole or in any part by exercising any right of set-off it may assert or possess whether created by contract, statute or otherwise. Any agreement between the Broker/Dealer and the Lender (whether in the nature of a general loan and collateral agreement, a security or pledge agreement or otherwise) shall be deemed amended hereby to the extent necessary so as not to be inconsistent with the provisions of this paragraph.

 

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21.                               ARBITRATION

 

Any controversy arising out of or relating to this agreement shall be submitted to and settled by arbitration pursuant to the By-Laws and rules of FINRA.  The Broker/Dealer and the Lender shall be conclusively bound by such arbitration.

 

22.                               GOVERNING LAW

 

This Agreement shall be deemed to have been made under, and shall be governed by, the laws of the State of Illinois in all respects.

 

Included

 

23.                               OPTIONAL RIDER [OPTIONAL]

 

By incorporating this provision, the Broker/Dealer and Lender agree to include as part of this Agreement the terms and provisions contained in “Rider A” attached to this Agreement. The parties hereto may, via the annexed rider, add any mutually agreed upon term that is acceptable to FINRA and is not inconsistent with the Rule or Appendix D to the Rule.  The parties, by incorporating this provision and the terms included in the incorporated Rider A, represent to FINRA, for its reliance, that no provision of Rider A, singly or in combination with any or all of the provisions of this Agreement, is inconsistent with any provision of Appendix D to the Rule or of any other applicable provision of the SEA, the rules and regulations thereunder, or the rules of FINRA, nor do any such provisions impede the ability of the Broker/Dealer to comply therewith.

 

24.                               REPRESENTATIONS

 

The parties to this Agreement, by affixing their signatures to this Agreement represent to FINRA, for its reliance, that:

 

(a) this Agreement is a legally valid and binding obligation on the parties; and

 

(b) this Agreement, as executed below, conforms in every respect to and with any draft hereof which may have been heretofore submitted to and approved by FINRA for actual execution.

 

[SIGNATURE PAGE FOLLOWS]

 

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25.                               EXECUTION

 

IN WITNESS HEREOF the parties hereto have set their hands and seals as of the date first set forth above.

 

 

	
 
    	
BROKER/DEALER:
    
	
 
    	
J.V.B.   FINANCIAL GROUP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas Listman
    
	
 
    	
Name:
    	
Douglas Listman
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LENDER:
    
	
 
    	
MB FINANCIAL BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Mier
    
	
 
    	
Name:
    	
Scott Mier
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Revolving Note and Cash Subordination Agreement]

 

 

	

    	
 

FINRA Form REV -   33R

EXHIBIT A
    

 

REVOLVING NOTE

 

	
$17,500,000
    	
 
    	
January 22, 2019
    
	
 
    	
 
    	
Chicago, Illinois
    

 

For value received, J.V.B. Financial Group, LLC (“Broker/Dealer”) hereby promises to pay to the order of MB Financial Bank, N.A. (“Lender”) on the 10th day of April, 2021 (“Scheduled Maturity Date”), the principal sum of the aggregate unpaid principal amount of all Advances made by the Lender to the Broker/Dealer under the terms of a Revolving Note and Cash Subordination Agreement between the Broker/Dealer and the Lender, dated the 22nd day of January, 2019 (the “Agreement”), as shown on the attached schedule.  Such sum shall not exceed Seventeen Million Five Hundred Thousand Dollars ($17,500,000).

 

The Broker/Dealer also promises to pay interest on the unpaid principal amount of each Advance hereunder from the date of each such Advance until maturity (whether by acceleration or otherwise) and, after maturity, until paid, at the rate per annum agreed upon by the Broker/Dealer and the Lender at the time of any Advance, said interest to be payable upon the maturity of the Advance.

 

This Revolving Note is subject in all respects to the provisions of the Agreement, which are deemed to be incorporated herein and a copy of which may be examined at the principal office of the Broker/Dealer.

 

All principal and interest payable hereunder shall be due and payable in accordance with the terms of the Agreement.  Principal and interest payments shall be in money of the United States of America, lawful at such times for the satisfaction of public and private debts.

 

The Broker/Dealer promises to pay costs of collection, including reasonable attorney’s fees, if default is made in the payment of this Revolving Note.

 

The terms and provisions of this Revolving Note shall be governed by the applicable laws of the State of Illinois.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS HEREOF the parties hereto have set their hands and seals as of the date first set forth above.

 

	
 
    	
BROKER/DEALER
    
	
 
    	
J.V.B.   FINANCIAL GROUP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Douglas Listman
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

 

	

    	
 

FINRA Form REV -   33R

SCHEDULE to EXHIBIT A
    

 

SCHEDULE

 

Advances/Payments and Interest of Account Referred to in the Revolving Note

 

Commitment Amount $17,500,000

 

	
Date of
   Advance
    	
 
    	
Amount
   Advanced
    	
 
    	
Interest
   Rate
    	
 
    	
Date of Re-
   Payment
    	
 
    	
Principal
   Amount Re-
   Paid
    	
 
    	
Date of Interest
   Paid
    	
 
    	
Amount of
   Interest Paid
    	
 
    	
Outstanding
   Amount after
   Transaction
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

RIDER A TO
 FINRA FORM REV-33R
 REVOLVING NOTE AND CASH SUBORDINATION AGREEMENT

 

This Rider (“Rider”) to the Revolving Note and Cash Subordination Agreement (“Form 33R”, and including this Rider, as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), dated as of January 29, 2019, is by J.V.B. Financial Group, LLC, a Delaware limited liability company (the “Broker/Dealer”), and MB Financial Bank, N.A. (the “Lender”).  Capitalized terms used herein that are defined in Form 33R, but not otherwise defined herein, shall have the meanings therein defined.

 

1.                                      Defined Terms.

 

For the purposes of this Loan Agreement, the following capitalized words and phrases shall have the meanings set forth below:

 

“Additional Loan and Investment Cap” has the meaning in Section 7(p)(vii).

 

“Affiliate” of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such Person, and (b) with respect to Lender, any entity administered or managed by Lender, or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding or otherwise investing in commercial loans.  A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by contract, ownership of voting securities, membership interests or otherwise.

 

“Bank Product Agreements” means those certain agreements entered into from time to time by the Broker/Dealer with the Lender or any Affiliate of the Lender concerning Bank Products.

 

“Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Broker/Dealer to the Lender or any Affiliate of the Lender pursuant to or evidenced by Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

 

“Bank Products” means any service or facility extended to the Broker/Dealer by the Lender or any Affiliate of the Lender, including:  (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) letters of credit, (f) ACH transactions, (g) cash management, including controlled disbursement, accounts or services, or (h) Hedging Agreements.

 

“Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as amended, reformed or modified from time to time and any rules or regulations issued from time to time thereunder.

 

 

“BD Loan Agreement” means that certain Loan Agreement dated April 25, 2018, among Lender, Broker/Dealer and each other Obligor who is party thereto, as amended from time to time.

 

“Broker/Dealer” has the meaning set forth in the preamble of this Rider.

 

“BONY Credit Agreement” means the Revolving Credit Facility, dated as of November 2, 2017, between Broker/Dealer and The Bank of New York Mellon, as amended from time to time.

 

“Business Day” means any day other than a Saturday, Sunday or any other day on which banks in London, England or Chicago, Illinois are required or permitted to close.

 

“C&CO” means C&CO/PrinceRidge Partners LLC, a Delaware limited liability company, and its successors and assigns.

 

“Capital Lease” means, as to any Person, a lease of any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, by such Person, as lessee, that is, or should be, in accordance with Financial Accounting Standards Board Statement No. 13, as amended from time to time, or, if such statement is not then in effect, such statement of GAAP as may be applicable, recorded as a “capital lease” on the financial statements of such Person prepared in accordance with GAAP.

 

“Capital Requirements” means all rules and regulations relating to “net capital” as defined in 17 CFR 240.15c3-1 or any successor rule or as otherwise defined in the Loan Agreement.

 

“Capital Securities” means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the date hereof, including common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership or any other equivalent of such ownership interest.

 

“Capitalized Lease Obligations” means, as to any Person, all rental obligations of such Person, as lessee under a Capital Lease which are or will be required to be capitalized on the books of such Person.

 

“Cash Equivalent Investment” means, at any time, (a) securities issued or fully guaranteed or insured by the United States Government or any agency or instrumentality thereof having maturities of not more than twelve  (12) months from the date of acquisition (“Government Obligations”); (b) dollar or foreign currency denominated certificates of deposit, time deposits, repurchase agreements, reverse repurchase agreements, or bankers’ acceptances, having in each case a tenor of not more than twelve (12) months, issued by (i) any U.S. commercial bank or any branch or agency of a non-U.S. bank licensed to conduct business in the U.S. having combined capital and surplus of not less than $250,000,000; or (ii) any bank whose short-term commercial paper rating at the time of the acquisition thereof is at least A-1 or the equivalent thereof from S&P or from Moody’s is at least P-1 or the equivalent thereof from

 

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Moody’s (any such bank being an “Approved Bank”); (c) commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by any issuer rated at least A 1 by S&P or P 1 by Moody’s and in either case having a tenor of not more than six (6) months; (d) obligations of any state of the United States or any political subdivision thereof for the payment of the principal and redemption price of and interest on which there shall have been irrevocably deposited Government Obligations maturing as to principal and interest at times and in amounts sufficient to provide such payment; (e) repurchase agreements with a term of not more than thirty (30) days with a bank or trust company (including Lender) or a recognized securities dealer having capital and surplus in excess of $250,000,000 for direct obligations issued by or fully guaranteed by the United States of America; (f) money market accounts subject to Rule 2a-7 of the Company Act (“Rule 2a-7”) which consist primarily of cash and cash equivalents set forth in clauses (a) through (e) above and of which 95% shall at all times be comprised of First Tier Securities (as defined in Rule 2a-7) and any remaining amount shall at all times be comprised of Second Tier Securities (as defined in Rule 2a-7), and (g) shares of any so-called “money market fund”; provided that such fund is registered under the Company Act, has net assets of at least $250,000,000 and has an investment portfolio with an average maturity of 365 days or less.

 

“Change in Control” means the occurrence or existence of any one or more of the following:  (a) Holdings LP shall cease to own, directly or indirectly, free and clear of all Liens (other than Permitted Liens), all of the issued and outstanding Capital Securities of Broker/Dealer, (b) Holdings LP shall cease to be the sole managing member or manager of Broker/Dealer; (c) Operating LLC and C&CO shall cease to own, directly or indirectly, free and clear of all Liens (other than Permitted Liens), all of the issued and outstanding Capital Securities of Holdings LP; (d) C&CO shall cease to be the sole general partner of Holdings LP; (e) Operating LLC shall cease to own, directly or indirectly, free and clear of all Liens (other than Permitted Liens), all of the issued and outstanding Capital Securities of C&CO; (f) Operating LLC shall cease to be the sole managing member or manager of C&CO; (g) any Person, other than Parent, Lester R. Brafman or Cohen and Cohen’s Affiliates and Cohen’s immediate family members, shall have become the beneficial owner (as defined in Rule 13d-3 of the Securities Exchange Act) of, or shall have obtained voting control over, more than twenty percent (20%) of the Capital Securities of Operating LLC; (h) the members of the Board of Directors of Parent at the beginning of any consecutive 24-calendar-month period (the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a majority of the members of the Board of Directors of Parent; provided that any director whose election, or nomination for election by the Parent’s stockholders, was approved by a vote of at least a majority of the members of the Board of Directors of Parent then still in office who were members of the Board of Directors of Parent at the beginning of such 24-calendar-month period, shall be deemed to be an Incumbent Director; (i) Cohen shall cease to be a member of the Board of Managers of Operating LLC and member of the Board of Directors of Parent; and (j) any merger, consolidation or other similar transaction involving the Obligors, where the Obligors are acquired by non-Affiliate Persons, shall occur.

 

“Closing Date” has the meaning set forth in Section 6.

 

“Cohen” means Daniel G. Cohen.

 

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“Company Act” means the Investment Company Act of 1940, as amended.

 

“Contingent Liability” and “Contingent Liabilities” means, as to any Person, any direct or indirect liability, contingent or otherwise, of such Person:  (a) whereby such 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, dividend, obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including without limitation, any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (b) whereby such Person guarantees the payment of dividends or other distributions upon the shares or ownership interest of any other Person; (c) whereby such Person undertakes or agrees (whether contingently or otherwise):  (i) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor, or (ii) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition of any other Person; (d) whereby such Person agrees to lease property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability of such other person to make payment of the indebtedness or obligation; (e) with respect to any letter of credit issued for the account of such Person or as to which such Person is otherwise liable for reimbursement of drawings; (f) under any Rate Contracts; (g) to make take-or-pay or similar payments if required regardless of nonperformance by any other party or parties to an agreement; (h) for the obligations of another Person through any agreement to purchase, repurchase or otherwise acquire such obligation or any Property constituting security therefor, to provide funds for the payment or discharge of such obligation or to maintain the solvency, financial condition or any balance sheet item or level of income of another Person; or (i) whereby such Person undertakes or agrees otherwise to assure a creditor of another Person against loss.  The amount of any Contingent Liability shall be equal to the amount of the obligation so guaranteed or otherwise supported or, if not a fixed and determined amount, the maximum amount so guaranteed or supported.

 

“Corporate Guarantor” means each of Parent, Holdings LP and Operating LLC.

 

“Debt” means, as to any Person, without duplication, (a) all borrowed money of such Person (including principal, interest, fees and charges), whether or not evidenced by bonds, debentures, notes or similar instruments; (b) all obligations to pay the deferred purchase price of property or services; (c) all obligations, contingent or otherwise, with respect to the maximum face amount of all letters of credit (whether or not drawn), bankers’ acceptances and similar obligations issued for the account of such Person, and all unpaid drawings in respect of such letters of credit, bankers’ acceptances and similar obligations; (d) all indebtedness secured by any Lien on any property owned by such Person, whether or not such indebtedness has been assumed by such Person (provided, however, if such Person has not assumed or otherwise become liable in respect of such indebtedness, such indebtedness shall be deemed to be in an amount equal to the fair market value of the property subject to such Lien at the time of

 

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determination); (e) the aggregate amount of all Capitalized Lease Obligations of such Person; (f) all Contingent Liabilities of such Person, whether or not reflected on its balance sheet; (g) all Hedging Obligations of such Person, if any; (h) all Debt of any partnership of which such Person is a general partner; and (i) all monetary obligations of such Person under (i) a so-called synthetic, off-balance sheet or tax retention lease, or (ii) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).  Notwithstanding the foregoing, Debt shall not include trade payables and accrued expenses incurred by such Person in accordance with customary practices and in the Ordinary Course of Business.

 

“Default” means an Event of Default or Unmatured Event of Default.

 

“Default Interest Rate” has the meaning set forth in Section 2(b).

 

“Employee Plan” includes any pension, stock bonus, employee stock ownership plan, retirement, profit sharing, deferred compensation, stock option, bonus or other incentive plan, whether qualified or nonqualified, or any disability, medical, dental or other health plan, life insurance or other death benefit plan, vacation benefit plan, severance plan or other employee benefit plan or arrangement, including, without limitation, those pension, profit sharing and retirement plans of the Broker/Dealer described from time to time in the financial statements of the Broker/Dealer and any pension plan, welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any multi-employer plan, maintained or administered by the Broker/Dealer or to which the Broker/Dealer is a party or may have any liability or by which the Broker/Dealer is bound.

 

“Environmental Laws” mean all present or future federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative or judicial orders, consent agreements, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case relating to any matter arising out of or relating to public health and safety, or pollution or protection of the environment or workplace, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous Substance.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“Event of Default” has the meaning set forth in Section 8.

 

“Examining Authority” means the self-regulatory body designated to be responsible for inspecting or examining the Broker/Dealer for compliance with financial responsibility requirements under Section 9(c) of the Securities Investor Protection Act of 1970 and Section 17(d) of the Exchange Act.  For purposes of this Loan Agreement, “Examining Authority” includes FINRA in accordance with its responsibilities under any applicable regulatory services agreement with any Governmental Authority.

 

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“Excess Net Capital” means the amount shown on the relevant date of determination, under the heading “Computation of Alternative Net Capital Requirement” as shown on Broker/Dealer’s Financial and Operational Combined Uniform Single (FOCUS) reports, or under such other line on Broker/Dealer’s FOCUS reports pursuant to which Broker/Dealer reports its excess net capital.

 

“Exchange Act” means the Securities and Exchange Act of 1934, as amended.

 

“FINRA” means the Financial Industry Regulatory Authority.

 

“FOCUS Reports” means Financial and Operation Combined Uniform Single Reports filed by Broker/Dealer in accordance with Exchange Act rules and regulations.

 

“Form 33R” has the meaning set forth in the preamble of this Rider.

 

“GAAP” means generally accepted accounting principles 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, provided, however, that interim financial statements or reports shall be deemed in compliance with GAAP despite the absence of footnotes and fiscal year-end adjustments as required by GAAP.

 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, any self-regulatory organization with jurisdiction over an applicable Person, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

 

“Government Obligations” has the meaning set forth in “Cash Equivalents” above.

 

“Guarantor” means, collectively, any party to a Guaranty (other than Lender) and any other guarantor of all or any portion of the Obligations.

 

“Guaranty” means each Guaranty Agreement made by a Corporate Guarantor in favor of Lender, and any other guaranty of any of the Obligations now or hereafter executed and delivered by any Person to Lender.

 

“Hazardous Substances” means (a) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, dielectric fluid containing levels of polychlorinated biphenyls, radon gas and mold; (b) any chemicals, materials, pollutant or substances defined as or included in the definition of “hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous substances”, “restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import, under any applicable Environmental

 

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Law; and (c) any other chemical, material or substance, the exposure to, or release of which is prohibited, limited or regulated by, or for which any duty or standard of care is imposed pursuant to, any Environmental Law.

 

“Hedging Agreement” means any interest rate, currency or commodity swap agreement, cap agreement or collar agreement, and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices.

 

“Hedging Obligation” means, with respect to any Person, any liability of such Person under any Hedging Agreement.

 

“Holdings LP” means J.V.B. Financial Group Holdings, LP, a Delaware limited partnership, and its successors and assigns.

 

“ICE LIBOR” is defined in “LIBOR” below.

 

“Incumbent Directors” is defined in “Change of Control” above.

 

“Indemnified Party” has the meaning set forth in Section 12(b).

 

“Intangible Assets” means for any Person (a) goodwill, prepaid expenses relating to obligations or liabilities that are due more than twelve (12) months from the date of calculation, deposits (other than deposits held on behalf, or for the benefit, of customers of such Person with dealers in securities), (b) any amounts due from equity holders, Affiliates, officers or employees of such Person and (c) intellectual property, calculated in accordance with GAAP.

 

“Investments” has the meaning set forth in Section 7(p).

 

“JKD Investment Agreement” has the meaning set forth in the definition of “Third Party Debt.”

 

“Lender” has the meaning set forth in the preamble of this Rider.

 

“LIBOR” means, with respect to any applicable interest period, the rate per annum equal to the London Interbank Offered Rate administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) (“ICE LIBOR”), as published by Bloomberg Financial Markets system (or another commercially available source providing quotations of ICE LIBOR as reasonably designated by Lender from time to time) at approximately 11:00 a.m. (London time) two (2) business days prior to the commencement of such interest period, for United States Dollars (for delivery on the first day of such interest period).  Lender may adjust the LIBOR Rate by substituting an alternative rate in the event LIBOR becomes unavailable or is no longer capable of being determined, to a rate selected by and uniformly adopted by the Lender as the alternative rate to LIBOR or to a rate which is broadly accepted by the syndicated loan market as an alternative rate to LIBOR and acceptable to the Lender.  Lender’s determination of LIBOR shall be conclusive, absent manifest error.  As used in this definition, “Banking Day” means any day other than a Saturday, Sunday or any other day on which banks in London, England or Chicago, Illinois are required or permitted to close.

 

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“LIBOR Rate” means a per annum rate of interest equal to LIBOR plus Six Percent (6.0%) as determined on the 10th day of each calendar month, provided that in no event shall the LIBOR Rate be less than Six Percent (6.0%).

 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge or deposit arrangement, encumbrance, lien (statutory or other) or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including, but not limited to, those created by, arising under or evidenced by any conditional sale or other title retention agreement, the interest of a lessor under a Capital Lease, any financing lease having substantially the same economic effect as any of the foregoing, or the filing of any financing statement naming the owner of the asset to which such lien relates as debtor, under the UCC or any comparable law), and any contingent or other agreement to provide any of the foregoing, but not including the interest of a lessor under an operating lease which is not a Capital Lease.

 

“Loans” means, collectively, all Revolving Loans made by the Lender to the Broker/Dealer under and pursuant to the Loan Agreement.

 

“Loan Agreement” has the meaning set forth in the preamble of this Rider.

 

“Loan Commitment” means Seventeen Million Five Hundred Thousand Dollars ($17,500,000).

 

“Loan Documents” means this Loan Agreement, the Note, each Guaranty, and all other agreements, entered into by any Obligor with Lender or any Affiliate of Lender, and all other documents, instruments and agreements delivered to Lender in connection therewith, in each case as amended, restated, supplemented or otherwise modified from time to time, including, but not limited to, the BD Loan Agreement and each other Financing Agreement (as defined in the BD Loan Agreement) delivered in connection therewith.

 

“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or condition (financial or otherwise) of Obligors on a combined basis; (b) a material impairment of the ability of any Obligor to perform in any material respect any of its obligations under any Financing Agreement; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability of any Loan Documents.

 

“Mead Park Notes” is defined in the definition of “Third Party Debt.”

 

“Net Capital” means “net capital,” as defined by the Rule and calculated in the manner set forth on the applicable FOCUS Report.

 

“Obligations” means, collectively, all of Broker/Dealer’s liabilities, obligations, and indebtedness to Lender or any of its Affiliates of any and every kind and nature, whether heretofore, now or hereafter owing, arising, due or payable and howsoever evidenced, created, incurred, acquired, or owing, whether individually or collectively, direct or indirect, joint or several, absolute or contingent, primary or secondary, fixed or otherwise (including obligations of performance), and whether arising or existing under any Loan Document or other written agreement, oral agreement or operation of law, including all of Broker/Dealer’s other

 

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indebtedness and obligations to Lender or any of its Affiliates under or in respect of any of this Loan Agreement, the other Loan Documents, Bank Product Obligations and any Rate Contract among Broker/Dealer, Lender or an Affiliate of Lender, and including any reimbursement obligations, service charges, fees, expenses of any kind, set-offs, charge-backs, adjustments, corrections, coding errors and any similar expense or liability of any kind relating to or arising under the Collateral Account (as defined in the BD Loan Agreement) and/or any deposit account control agreement entered into in connection with this Loan Agreement or the Loans contemplated hereby for the benefit of Lender.

 

“Obligor” means the Broker/Dealer, accommodation endorser, guarantor, third party pledgor, or any other party liable with respect to the Obligations.

 

“Ordinary Course of Business” means, in respect of any transaction or course of dealing involving any Obligor, the ordinary course of such Person’s business, as conducted by any such Person in accordance with past practice and undertaken by such Person in good faith and not for purposes of evading any covenant or restriction in any Loan Document.

 

“Operating LLC” means Cohen & Company, LLC, a Delaware limited liability company, and its successors and assigns.

 

“Other Taxes” means any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from the execution, delivery, enforcement or registration of, or otherwise with respect to, the Loan Agreement or any of the other Loan Documents.

 

“Permitted Liens” shall have the meaning as set forth in Section 6.1 of the BD Loan Agreement.

 

“Parent” means Cohen & Company Inc., a Maryland corporation, and its successors and assigns.

 

“Permitted Third Party Debt Payments” has the meaning set forth in Section 7(b)(ii).

 

“Person” means any natural person, partnership, limited liability company, corporation, trust, joint venture, joint stock company, association, unincorporated organization, government or agency or political subdivision thereof, or other entity, whether acting in an individual, fiduciary or other capacity.

 

“Rate Contracts” means swap agreements (as such term is defined in Section 101 of the Bankruptcy Code) and any other agreements or arrangements designed to provide protection against fluctuations in interest or currency exchange rates, including any agreement or arrangement which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of

 

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these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

 

“Regulatory Change” means the introduction of, or any change in any applicable law, treaty, rule, regulation or guideline or in the interpretation or administration thereof by any Governmental Authority or any central bank or other fiscal, monetary or other authority having jurisdiction over the Lender or its lending office.

 

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

 

“Restricted Payment” means (a) any dividend or other distribution by the Broker/Dealer (whether in cash, securities or other property) with respect to any of its Capital Securities, (b) any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such equity interest, or (c) any payment of principal or interest or any purchase, redemption, retirement, acquisition or defeasance with respect to any Debt of the Broker/Dealer which is expressly subordinated to the payment of the obligations of the Broker/Dealer under the Loan Documents.

 

“Responsible Officer” means, as to the applicable Person, its chief executive officer, chief financial officer, controller, chief investment officer or its president, or any other officer having substantially the same authority and responsibility, or with respect to compliance with financial covenants or delivery of financial information, the chief financial officer, controller or chief investment officer or its president, or any other officer having substantially the same authority and responsibility, and each other Person designated by any of the foregoing or authorized to request the advance of the Loans including any Person Lender reasonably believes is so authorized.

 

“Revolving Loan Borrowing Termination Date” means April 10, 2020.

 

“Revolving Loan Interest Rate” means a floating rate of interest equal to the LIBOR Rate.

 

“Revolving Loan Maturity Date” means April 10, 2021.

 

“Revolving Loan” and “Revolving Loans” means, respectively, each direct advance and the aggregate of all such direct advances made by the Lender to the Broker/Dealer under and pursuant to the Loan Agreement, as described in Form 33R and in Section 2.

 

“Revolving Note” or “Note” means a revolving note in the form prepared by and acceptable to the Lender in the amount of the Loan Commitment and maturing on the Revolving Loan Maturity Date, executed by the Broker/Dealer and payable to the order of the Lender, together with any and all renewal, extension, modification or replacement notes executed by the Broker/Dealer and delivered to the Lender and given in substitution therefor.

 

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“Rider” has the meaning set forth in the preamble of this Rider.

 

“Rule” has the meaning set forth in paragraph 3 of Form 33R.

 

“Rule 2a-7” is defined in the definition of “Cash Equivalent Investment” above.

 

“SEC” means the Securities and Exchange Commission and any successor organization discharging the regulatory functions of the Securities and Exchange Commission.

 

“Securities Laws” means the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Sarbanes Oxley Act of 2002, as amended, any foreign equivalent of the Securities Act of 1933, as amended, and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in effect on any applicable date hereunder.

 

“Senior Debt” means as to any Person, all Debt of such Person that is not Subordinated Debt and that ranks pari passu in right of payment to the Obligations, and that matures more than one year from the date of its creation (or is renewable or extendible, at the option of such Person, to a date more than one year from such date), including without limitation the Loans.

 

“Sharing Agreement” means a management agreement, service agreement or similar agreement or written arrangement arising from or relating to shared office space, technology, trade services and other sharing of expenses by or among Broker/Dealer, Parent and any of its or their Affiliates, together with all amendments thereto.

 

“Subordinated Debt” means that portion of the Debt of the Broker/Dealer which is subordinated to the Obligations in a manner reasonably satisfactory to the Lender (including, but not limited to, right and time of payment of principal and interest).

 

“Subsidiary” or “Subsidiaries” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (b) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control (or have the power to be or control) a managing director, manager or general partner of such limited liability company, partnership, association or other business entity.  In the absence of designation to the contrary, reference to a Subsidiary or Subsidiaries shall be deemed to be a reference to Subsidiaries of Broker/Dealer.

 

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“Tangible Net Worth” means, at any time, the total of shareholder or member equity plus Subordinated Debt minus Intangible Assets.

 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including, without limitation, backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including interest, additions to tax or penalties applicable thereto.

 

“Third Party Debt” means that certain Debt evidenced by the following (as amended from time to time):  (i) Convertible Senior Secured Promissory Note, dated March 10, 2017, issued by Operating LLC (formerly known as IFMI, LLC) to the DGC Family Fintech Trust in the aggregate principal amount of $15,000,000, together with that certain Securities Purchase Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), the DGC Family Fintech Trust, a trust established by Daniel G. Cohen, and solely with respect to certain provisions thereof, Parent (formerly known as Institutional Financial Markets, Inc.), and the related Pledge Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), in favor of the DGC Family Fintech Trust; (ii) Convertible Senior Secured Promissory Note, dated August 28, 2015, issued by Parent to the Edward E. Cohen IRA in the aggregate principal amount of $4,385,628 (formerly that certain Convertible Senior Secured Promissory Note, dated September 25, 2013, issued by Parent to Mead Park Capital Partners LLC in the aggregate principal amount of $2,923,755, and that certain Convertible Senior Secured Promissory Note, dated September 25, 2013, issued by Parent to Mead Park Capital Partners LLC in the aggregate principal amount of $1,461,873 (collectively, the “Mead Park Notes”); (iii) Convertible Senior Secured Promissory Note, dated September 25, 2013, issued by Parent to EBC 2013 Family Trust in the aggregate principal amount of $2,400,000; (iv) Junior Subordinated Note due 2037, dated June 25, 2007, issued by Parent (formerly known as Alesco Financial Inc.) in the aggregate principal amount of $28,995,000; (v) Junior Subordinated Note due 2035, dated March 15, 2005, issued by Parent (formerly known as Sunset Financial Resources, Inc.) to JPMorgan Chase Bank, N.A., as Property Trustee of Sunset Financial Statutory Trust I, in the aggregate principal amount of $20,619,000; (vi) Investment Agreement, dated October 3, 2016, by and between Operating LLC (formerly known as IFMI, LLC) and JKD Capital Partners I LTD (pursuant to which, among other things, JKD Capital Partners I LTD agreed to invest up to $12,000,000 into Operating LLC) (the “JKD Investment Agreement”); (vii) Investment Agreement, dated September 29, 2016, by and between Operating LLC and Cohen Bros. Financial LLC Trust (pursuant to which, among other things, Cohen Bros. Financial LLC invested $8,000,000 into Operating LLC); and (viii) Investment Agreement dated September 29, 2016, by and between Operating LLC and The DGC Family Fintech Trust (pursuant to which, among other things, The DGC Family Fintech Trust invested $2,000,000 into Operating LLC).

 

“Unmatured Event of Default” means any event which, if continued uncured, would, with the giving of notice, the passage of time or both, constitute an Event of Default.

 

“Voidable Transfer” has the meaning set forth in Section 15.

 

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2.                                      Loan Commitment; Interest.

 

(a)                                 Notwithstanding anything to the contrary in paragraph 1 of Form 33R, the Lender shall make revolving credit loans to the Broker/Dealer from time to time between the effective date hereof and the Revolving Loan Borrowing Termination Date, and in such amounts as the Broker/Dealer may from time to time request, provided, however, that the aggregate principal balance of all such advances outstanding at any time shall not exceed the Loan Commitment.  Revolving Loans made by the Lender may be repaid and, subject to the terms and conditions of the Loan Agreement, borrowed again up to, but not including the Revolving Loan Borrowing Termination Date, subject to the applicable provisions of this Loan Agreement.  Each advance of a Revolving Loan hereunder shall have a maturity date of at least twelve months from the date of each such advance, unless prepaid pursuant to the permissive prepayment provisions of this Loan Agreement, provided that no maturity date of any advance of a Revolving Loan hereunder shall be later than the Revolving Loan Maturity Date.

 

(b)                                 Notwithstanding anything to the contrary in paragraph 1 of Form 33R, the principal amount of the Revolving Loans outstanding from time to time shall bear interest at a floating rate equal to the Revolving Loan Interest Rate.  Subject to the subordination provisions of this Loan Agreement, accrued and unpaid interest on the unpaid principal balance of all Revolving Loans outstanding from time to time, shall be due and payable monthly, in arrears, commencing on February 10, 2019, and continuing on the tenth (10th) day of each calendar month thereafter, and on the maturity date of the applicable advance of a Revolving Loan or Revolving Loan Maturity Date, as applicable.  In the event of any repayment or prepayment of the Loan, accrued and unpaid interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.  Subject to the subordination provisions of this Loan Agreement, in the event that the Broker/Dealer fails to pay any amount of principal, interest, fees or other amounts payable under the Loan Documents when due, such overdue amount shall bear interest at the “Default Interest Rate,” which shall mean the rate of interest equal to the Revolving Loan Interest Rate plus five percent (5.0%), such interest to be payable on demand; provided, that in the absence of acceleration, any increase in interest rates pursuant to this Section 2(b) shall be made at the election of the Lender, with written notice to the Broker/Dealer.  All interest hereunder shall be computed on the basis of a year of 360 days for the actual number of days elapsed (including the day a Loan is made but excluding the date of repayment).

 

(c)                                  Notwithstanding anything to the contrary in paragraph 1 of Form 33R, each Revolving Loan shall be made available to the Broker/Dealer upon any written, verbal, electronic, telephonic or telecopy loan request which the Lender in good faith believes to emanate from a properly authorized representative of the Broker/Dealer, whether or not that is in fact the case.  Each such notice shall be effective upon receipt by the Lender, shall be irrevocable, and shall specify the date, amount and type of borrowing.  The amount of borrowing shall be in an amount equal to One Million Dollars ($1,000,000) or a higher integral multiple of Five Hundred Thousand Dollars ($500,000), or such lesser amount as would bring the total principal amount of Revolving Loans advanced hereunder to the Loan Commitment.  A request for a direct advance must be received by the Lender no later than 2:00 p.m. Chicago, Illinois time, on the day it is to be funded.  The proceeds of each direct advance shall be made available

 

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at the office of the Lender by credit to the account of the Broker/Dealer or by other means requested by the Broker/Dealer and acceptable to the Lender.  The Broker/Dealer does hereby irrevocably confirm, ratify and approve all such advances by the Lender and does hereby indemnify the Lender against losses and expenses (including court costs, reasonable outside attorneys’ and paralegals’ fees) and shall hold the Lender harmless with respect thereto, provided however, that Broker/Dealer shall not have any obligations to indemnify the Lender for losses and expenses arising from Lender’s willful misconduct or gross negligence.

 

(d)                                 Broker/Dealer may reduce the amount of the Loan Commitment in a minimum amount of equal to One Million Dollars ($1,000,000) or a higher integral multiple of Five Hundred Thousand Dollars ($500,000), or such lesser amount as would bring the Loan Commitment to the total principal amount of Revolving Loans advanced hereunder, provided that any such reduction must be approved by the Examining Authority.

 

3.                                      Taxes and Fees.

 

(a)                                 The Broker/Dealer shall pay all Other Taxes to the relevant Governmental Authority in accordance with applicable law or reimburse the Lender therefor to the extent paid by the Lender.

 

(b)                                 The Broker/Dealer agrees to pay to the Lender a nonrefundable quarterly non-usage fee equal to the daily unborrowed portion of the Loan Commitment (the “Non-Use Fee”).  For purposes of the foregoing, the unborrowed portion of the Loan Commitment for any given day will be an amount equal to the result of:  (i) the amount of the Loan Commitment; minus (ii) the sum of the aggregate principal amount of all Loans outstanding; in each case determined as of the end of such day.  The Non-Use Fee shall be computed for the actual number of days elapsed on the basis of a year of 360 days at a rate per annum equal to 0.50%.  The accrued unpaid non-usage fee shall be payable quarterly beginning on December 31, 2018, and on the last day of each September, December, March and June thereafter prior to the Revolving Loan Maturity Date, with any outstanding unpaid amount due upon the Revolving Loan Maturity Date.

 

4.                                      Payments.

 

(a)                                 All payments hereunder shall be made at the office of the Lender or at such other place as the Lender may specify from time to time, in lawful money of the United States in immediately available funds without setoff or counterclaim, failing which, unless the payment obligation is suspended as provided in this Loan Agreement, the Lender shall be entitled to all of the rights and remedies of an unpaid creditor with a matured indebtedness provided by applicable law, subject to Event of Default grace periods and subject to the provisions for subordination set forth in this Loan Agreement.  Fees and other amounts paid shall not be refundable under any circumstances.

 

(b)                                 If any payment of interest or principal due hereunder, other than amounts unpaid after maturity, is not made within ten (10) days after such payment is due in accordance with the terms hereof, then, in addition to the payment of the amount so due, Broker/Dealer shall pay to Lender a “late charge” of five cents for each whole dollar so overdue to defray part of the

 

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cost of collection and handling such late payment.  Broker/Dealer agrees that the damages to be sustained by Lender for the detriment caused by any late payment are extremely difficult and impractical to ascertain, and that the amount of five cents for each one dollar due is a reasonable estimate of such damages, does not constitute interest, is not a penalty, and does not constitute a waiver of Lender’s rights with respect to the default.  Notwithstanding the foregoing, this late charge shall not apply and no late charges shall be applicable to any amounts which are subject to such late charge in the event the Obligations are accelerated in accordance with the Form 33R.

 

5.                                      Representations and Warranties.  In order to induce the Lender to enter this Loan Agreement, the Broker/Dealer represents and warrants to the Lender as follows.  The representations and warranties contained in this Loan Agreement shall be true and correct in all material respects on and as of the date of the advance on the Loans, and after giving effect thereto, as though made on and as of such date (except to the extent such representations and warranties expressly refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date).

 

(a)                                 Organization; Powers.  The Broker/Dealer:  (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware; (ii) has all requisite corporate power, and has all material governmental licenses, permits, authorizations, consents and approvals, necessary to own its assets and carry on its business as now being and as proposed to be conducted; and (iii) is qualified to do business and is in good standing in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary; except, in each case referred to in clauses (ii) and (iii), to the extent that the failure to do so would not reasonably be expected to have a Material Adverse Effect

 

(b)                                 Authorization; Enforceability.  The Broker/Dealer has all necessary limited liability company power, authority and legal right to execute, deliver and perform its obligations under this Loan Agreement; the execution, delivery and performance by the Broker/Dealer of this Loan Agreement have been duly authorized by all necessary limited liability company action (including, without limitation, any required approvals); each has been duly and validly executed and delivered by the Broker/Dealer and this Loan Agreement constitutes its legal, valid and binding obligation, enforceable against the Broker/Dealer in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(c)                                  Approvals.  No authorizations, approvals or consents of, and no filings or registrations with any Governmental Authority or any securities exchange (other than, with respect to Parent, public disclosure of the transactions contemplated under this Loan Agreement as required by Securities Laws or the NYSE American) are necessary for the execution, delivery or performance by the Broker/Dealer of this Loan Agreement, or for the legality, validity or enforceability hereof or thereof, except for (a) the approval of the Examining Authority to classify this Loan Agreement as a satisfactory subordinated loan agreement under Appendix D of the Rule (which is the only approval or consent of a Governmental Authority necessary to permit such classification, which approval will have been obtained prior to the effectiveness of this

 

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Loan Agreement and the making of the Loan hereunder), (b) authorizations, approvals or consents of any Governmental Authority which have been obtained or made prior to the making of the Loan hereunder and which are in full force and effect on the date of such Loan, and (c) routine filings with the SEC or the Examining Authority that may be required to be made from time to time after the date hereof.

 

(d)                                 No Breach.  None of the execution and delivery of this Loan Agreement, the consummation of the transactions herein contemplated or compliance with the terms and provisions hereof will conflict with or result in a breach of, or require any consent under, the certificate of formation or other organizational documents of the Broker/Dealer, or any applicable law or regulation, or any order, writ, injunction or decree of any court or Governmental Authority, or any agreement or instrument to which the Broker/Dealer is a party or by which the Broker/Dealer or any of its respective properties is bound or to which the Broker/Dealer is subject, or constitute a default under any such agreement or instrument, or result in the creation or imposition of any mortgage, lien, pledge, charge, security interest or encumbrance of any kind upon any property of the Broker/Dealer pursuant to the terms of any such agreement or instrument.

 

(e)                                  Equity Ownership.  All issued and outstanding Capital Securities of the Broker/Dealer are duly authorized and validly issued, fully paid, non-assessable and free and clear of all Liens (other than Permitted Liens), and such securities were issued in compliance with all applicable state and federal laws concerning the issuance of securities.  The ownership of the Capital Securities of Broker/Dealer, Holdings LP, Operating LLC and Parent and types of Capital Securities are set forth on Schedule 5(e).  As of the date hereof, other than as set forth on Schedule 5(e), there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar agreements or understandings for the purchase or acquisition of any Capital Securities of the Broker/Dealer or other Obligor.

 

(f)                                    Financial Statements/Exchange Act Filings.  All financial statements, including FOCUS Reports, submitted to the Lender have been prepared in accordance with sound accounting practices and GAAP on a basis, except as otherwise noted therein, consistent with the previous fiscal year and present fairly the financial condition of the Broker/Dealer and the results of the operations for the Broker/Dealer as of such date and for the periods indicated.  Since the date of the last financial statement submitted by the Broker/Dealer to the Lender, there has been no adverse change in the financial condition or in the assets or liabilities of the Broker/Dealer having a Material Adverse Effect on the Broker/Dealer.  The Broker/Dealer has no Contingent Liabilities which 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 7(g).  The Broker/Dealer has timely filed complete and correct Exchange Act filings, including but not limited to FOCUS Reports, in accordance with applicable Exchange Act rules and regulations.

 

(g)                                 No Material Adverse Change.  There has been no material adverse change in the business, assets, prospects, operations or condition, financial or otherwise, of the Broker/Dealer.

 

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(h)                                 Title to Property.  The Broker/Dealer has good title to, or valid leasehold interests in, all its real and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes.  The Broker/Dealer owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Broker/Dealer does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

(i)                                    Other Subordinated Debt.  As of the Closing Date, there is no Subordinated Debt of the Broker/Dealer.

 

(j)                                    Net Capital.  The Broker/Dealer operates under paragraph (a)(1)(ii) of the Rule for the computation of its Net Capital.

 

(k)                                 Liquidity.  Set forth on Schedule 5(k) is the Broker/Dealer’s most recent daily treasury report which specifies by institution the amount of cash, securities or other financial assets held by Broker/Dealer at such institution.

 

(l)                                    Taxes.  The Broker/Dealer has filed or caused to be filed all Federal income tax returns, or applicable extensions thereof, and all other material tax returns and information statements that are required to be filed by the Broker/Dealer and has paid all taxes, or estimated taxes (in connection with any extensions filed) due pursuant to such returns or pursuant to any assessment received by the Broker/Dealer, except for any such tax or assessment the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained.  The charges, accruals and reserves on the books of the Broker/Dealer in respect of taxes and other governmental charges are, in the opinion of the Broker/Dealer, adequate.  The Broker/Dealer has not given or been requested to give a waiver of the statute of limitations relating to the payment of any Federal, state, local and foreign taxes or other impositions.

 

(m)                              Litigation and Contingent Liabilities.  Except as specifically disclosed in Schedule 5(m), there is no litigation, arbitration proceeding, demand, charge, claim, petition or governmental investigation or proceeding pending, or to the best knowledge of the Broker/Dealer, threatened, against the Broker/Dealer, which, if adversely determined, could reasonably be expected to have a Material Adverse Effect.  Other than any liability incident to such litigation or proceedings or performance guaranties with respect to Broker/Dealer’s Subsidiaries in the Ordinary Course of Business, the Broker/Dealer has no material guarantee obligations, Contingent Liabilities, liabilities for taxes, or any long-term leases or unusual forward or long-term commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not fully reflected or fully reserved for in the most recent audited financial statements delivered pursuant to Section 7(g).

 

(n)                                 Event of Default.  No Event of Default or Unmatured Event of Default exists or would result from the incurrence by the Broker/Dealer of any of the Obligations hereunder or under any of the other Loan Documents, and to its knowledge the Broker/Dealer is

 

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not in default (without regard to grace or cure periods) under any other contract or agreement to which it is a party.

 

(o)                                 ERISA Obligations.  All Employee Plans of the Broker/Dealer meet the minimum funding standards of Section 302 of ERISA and 412 of the Internal Revenue Code where applicable, and each such Employee Plan that is intended to be qualified within the meaning of Section 401 of the Internal Revenue Code of 1986 is qualified.  No withdrawal liability has been incurred under any such Employee Plans and no “Reportable Event” or “Prohibited Transaction” (as such terms are defined in ERISA), has occurred with respect to any such Employee Plans, unless approved by the appropriate governmental agencies.  The Broker/Dealer has promptly paid and discharged all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed might result in the imposition of a Lien against any of its properties or assets.

 

(p)                                 Labor Relations.  (i) There are no strikes, lockouts or other labor disputes against the Broker/Dealer or, to Broker/Dealer’s knowledge, threatened, (ii) hours worked by and payment made to employees of the Broker/Dealer have not been in violation of the Fair Labor Standards Act or any other applicable law, and (iii) no unfair labor practice complaint is pending against the Broker/Dealer or, to Broker/Dealer’s knowledge, threatened before any Governmental Authority.

 

(q)                                 True and Complete Disclosure.  The information reports, financial statements, exhibits and schedules furnished in writing by or on behalf of the Broker/Dealer to the Lender in connection with the negotiation, preparation or delivery of the Loan Documents or included therein or delivered pursuant thereto when taken as a whole do not contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein, in light of the circumstances under which they were made not misleading.  All written information furnished by the Broker/Dealer to the Lender in connection with the Loan Documents and the transactions contemplated therein will be true, complete and accurate in every material respect, or (in the case of projections) based on reasonable estimates, on the date as of which such information is stated or certified.  There is no fact known to the Broker/Dealer that could result in a Material Adverse Effect that has not been disclosed herein or in a report financial statement, exhibit, schedule, disclosure letter or other writing furnished to the Lender.

 

(r)                                   BD Loan Agreement.  To the extent not provided above, the representations and warranties of Broker/Dealer under the BD Loan Agreement are incorporated with and into this Loan Agreement as if fully set forth herein, provided that in the event of a conflict, the above representations and warranties shall govern.

 

6.                                      Conditions Precedent to Loans.  The obligation of the Lender to make the Loan shall not become effective until the date (the “Closing Date”) on which each of the following conditions is satisfied or waived by the Lender:

 

(a)                                 Loan Documents.  The Lender (or its counsel) shall have received from the Broker/Dealer (i) Form 33R and this Rider signed on behalf of the Broker/Dealer, (ii) the Revolving Note duly executed by Broker/Dealer in the form attached to the Form 33R as Exhibit

 

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A, and (iii) such other Loan Documents as required by the Lender, including, but not limited to, any amendments to the BD Loan Agreement and Loan Documents related thereto.

 

(b)                                 Organizational and Authorization Documents.  The Lender (or its counsel) shall have received from the Broker/Dealer copies of (i) the Articles of Organization and Operating Agreement (or equivalent formation and governing documents) of Broker/Dealer and each Guarantor; (ii) resolutions of each of the Broker/Dealer and each Guarantor approving and authorizing such Person’s execution, delivery and performance of the Loan Documents to which it is party and the transactions contemplated thereby; (iii) signature and incumbency certificates of the officers of each of the Broker/Dealer and each Guarantor, executing any of the Loan Documents, each of which the Broker/Dealer hereby certifies to be true and complete, and in full force and effect without modification, it being understood that the Lender may conclusively rely on each such document and certificate until formally advised by the Broker/Dealer of any changes therein and (iv) good standing certificates in the state of formation of the Broker/Dealer and each Guarantor and in any other state where each such Person is authorized to do business.

 

(c)                                  Solvency Certificate.  The Lender (or its counsel) shall have received from the Broker/Dealer a Solvency Certificate executed by Broker/Dealer.

 

(d)                                 Closing Certificate.  The Lender (or its counsel) shall have received from the Broker/Dealer a Closing Certificate executed by Broker/Dealer.

 

(e)                                  Examining Authority Approval.  The Lender (or its counsel) shall have received evidence that the Examining Authority has found the Loan Agreement acceptable as to form and content and deemed it to constitute a satisfactory subordination agreement under Appendix D of the Rule.

 

(f)                                    Sharing Agreements.  The Lender (or its counsel) shall have received from the Broker/Dealer copies of all Sharing Agreements currently in effect certified by an authorized officer of the Broker/Dealer, Parent or its or their Affiliates.

 

(g)                                 Additional Documents.  The Lender (or its counsel) shall have received from the Broker/Dealer such other certificates, financial statements, schedules, resolutions, notes and other documents which are provided for hereunder or which Lender shall require.

 

(h)                                 Fees.  The Lender (or its counsel) shall have received from the Broker/Dealer the fees payable under Section 3.

 

(i)                                    Accuracy of Representations; No Default.  (a) The representations and warranties of the Broker/Dealer made herein shall be true and complete on and as of the date of the making of the Loan with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of an earlier date, as of such earlier date), and (b) no Default shall have occurred and be continuing.

 

(j)                                    Compliance with Laws.  The Broker/Dealer shall be in compliance in all material respects with all laws and regulations applicable to it, including Capital Requirements,

 

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and all regulatory approvals necessary for any advance under this Agreement shall have been obtained and be in full force and effect.

 

7.                                      Covenants.

 

(a)                                 Financial Covenants.

 

(i)                                    Tangible Net Worth.  Broker/Dealer shall maintain at all times a Tangible Net Worth of (A) at least Seventy Five Million Dollars ($75,000,000) from the Closing Date through and including December 30, 2018, and (ii) Eighty Million Dollars ($80,000,000) from December 31, 2018 and thereafter, provided that Broker/Dealer further shall comply with the requirements under Section 7(b), as and when applicable.

 

(ii)                                Maximum Leverage Ratio.  At all times the outstanding Loan amount shall not exceed 0.22 times the Broker/Dealer’s Tangible Net Worth.

 

(iii)                            Excess Net Capital.  At all times Broker/Dealer shall maintain Excess Net Capital of at least Forty Million Dollars ($40,000,000).

 

(b)                                 Repayment of Third Party Debt.

 

(i)                                     Other than as provided in Section 7(b)(ii) and Section 7(b)(iii), Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder or under the BD Loan Agreement, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, Broker/Dealer shall not, directly or indirectly, make or contribute to any principal payments, in full or in part, under or with respect to the Third Party Debt.

 

(ii)                                  Subject to Section 7(b)(iii), Parent and Operating LLC, collectively, may make or contribute the following (the “Permitted Third Party Debt Payments”):  (A) up to Three Million Dollars ($3,000,000) in the aggregate in principal payments under or with respect to the Third Party Debt during any twelve (12) month period; (B) payments of any or all amounts outstanding under the Mead Park Notes upon maturity thereof; and (C) payments of any or all amounts which become payable by Operating LLC pursuant to the JKD Investment Agreement upon an “Investor Redemption” thereunder in accordance with Section 6(a) thereof, in each case so long as no Event of Default exists or would occur as a result thereof; provided, however, if any payments are made pursuant to clause (B) and/or clause (C) of this Section 7(b)(ii), then no payment shall be permitted pursuant to clause (A) of this Section 7(b)(ii).

 

(iii)                               Permitted Third Party Debt Payments made pursuant to clause (B) or clause (C) of Section 7(b)(ii) which individually or in the aggregate exceeds $3,000,000 in any twelve (12) month period shall be subject to the following additional restrictions:  (i) Broker/Dealer or the applicable Obligor permitted to make such payment shall provide at least five (5) Business Days prior written notice to Lender its intent to make such payment with all material details relating to the anticipated payment as reasonably requested by Lender; (ii) if the

 

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anticipated payment relates to the payment of any dividend by Broker/Dealer, on the date such payment is made, and immediately after making such payment, there shall be no Loans outstanding under this Agreement; (iii) the applicable minimum Tangible Net Worth threshold that Broker/Dealer is required to maintain pursuant to Section 7(a)(i) shall automatically increase by a dollar amount equal to fifty percent (50%) of the amount by which the payment to be made exceeds $3,000,000, rounded up to the nearest $500,000, for the remainder of the applicable period (by way of example, if Broker/Dealer makes a payment permitted by Section 7(b)(ii) equal to $6,000,000 prior to December 31, 2018, then Broker/Dealer’s minimum Tangible Net Worth requirement shall be increased by $1,500,000 for the applicable period, causing such covenant to increase from $75,000,000 to $76,500,000 through December 31, 2018); and (iv) prior to making any such payment, Broker/Dealer shall provide to Lender a fully and properly completed compliance certificate in the form of Exhibit B to the BD Loan Agreement, certified on behalf of Broker/Dealer by a Responsible Officer (as such term is defined under the BD Loan Agreement), reflecting Broker/Dealer’s compliance with the minimum Tangible Net Worth covenant both before making such payment and after giving effect to such payment (including any required increase).

 

(iv)                              Notwithstanding anything to the contrary contained in this Section 7(b), upon the occurrence and during the continuance of an Event of Default, neither Parent nor Operating LLC shall make or contribute any principal payments under or with respect to the Third Party Debt without Lender’s prior written consent.

 

(c)                                  Maintenance of Existence.  The Broker/Dealer will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence under the laws of its jurisdiction of organization.

 

(d)                                 Maintenance of Licenses, Permits, Rights and Properties.  The Broker/Dealer will do or cause to be done all things necessary to preserve, renew and keep in full force and effect its licenses, permits, rights and properties necessary to conduct its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

(e)                                  Maintenance of Property, Insurance.  Broker/Dealer shall maintain and preserve all of its Property which is used or useful in its business in good working order and condition (ordinary wear and tear excepted) and make all necessary repairs thereto and renewals and replacements thereof except where failure to do so would not reasonably be expected to result, in the aggregate, in a Material Adverse Effect.  Broker/Dealer further shall maintain insurance with responsible and reputable insurance companies or associations with respect to its properties and business, in such amounts and covering such risks as is required by any Governmental Authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and in any event in amount, adequacy and scope reasonably satisfactory to Lender.  All property policies are to be made payable to Lender in case of loss, under a standard noncontributory “lender” or “secured party” clause and are to contain such other provisions as Lender may require to fully protect its interest and to any payments to be made under such policies.  Broker/Dealer shall make or cause to be made all necessary repairs or replacements of its

 

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property and equipment and any proceeds of insurance shall, to the extent that such proceeds are paid to Lender, be paid by Lender to Broker/Dealer as reimbursement for the costs of such repairs or replacements.  All certificates of insurance are to be delivered to Lender and the policies are to be premium prepaid, with the loss payable and additional insured endorsement in favor of Lender and such other Persons as Lender may designate from time to time, and shall provide ten (10) days’ prior written notice before the effective date of cancellation if insurer cancels for non-payment of premium or for not less than thirty (30) days’ prior written notice to Lender of the exercise of any right of cancellation for any other reason.  If Broker/Dealer fails to maintain such insurance, Lender may arrange for such insurance, but at Broker/Dealer’s expense and without any responsibility on Lender’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.  Upon the occurrence and during the continuance of an Event of Default, Lender shall have the sole right, in its name or in the name of Broker/Dealer, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies; provided that, unless otherwise applied toward the repayment of the Obligations, any amounts collected by Lender in connection with such insurance policies shall, at any time that Lender shall not have elected to terminate the Loan Commitment and declare the Loans due and payable hereunder, be remitted to the applicable Obligor.

 

(f)                                    Compliance with Laws.  The Broker/Dealer will (i) comply with all Requirements of Law applicable to it or its property; and (ii) pay and discharge all taxes, assessments and charges or levies imposed by any Governmental Authority on it or its activities or on its income or profits or on any of its property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained.

 

(g)                                 Financial Statements and Other Information.  Except as otherwise expressly provided for herein, Obligors and their respective Subsidiaries shall keep proper books of record and account in which full and true entries will be made of all dealings or transactions of or in relation to the business and affairs of Obligors and their respective Subsidiaries, in accordance with GAAP consistently applied and Broker/Dealer shall cause to be furnished to Lender:

 

(i)                                    Monthly.  As soon as practicable after the end of each month and in any event not more than 30 days thereafter, with respect to Broker/Dealer, a copy of the Financial and Operational Combined Uniform Single (FOCUS) report of Broker/Dealer.

 

(ii)                                Quarterly.  As soon as practicable after the end of each Fiscal Quarter, and in any event by the earlier of the date filed with the SEC and FINRA or any other Governmental Authority or forty five (45) days after the end of each such Fiscal Quarter (or within seventy five (75) days after the close of a Fiscal Year for the last Fiscal Quarter of such year):

 

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(A)                               unaudited consolidated financial statements of Broker/Dealer and Parent for such quarter, including, without limitation, statements of income and changes in equity for such period and year to date balance sheets as of the end of such period, setting forth in each case, in comparative form, figures for the corresponding periods in the preceding Fiscal Year and as of a date one year earlier, all in reasonable detail and certified as accurate by a Responsible Officer, subject to changes resulting from normal year-end adjustments; and

 

(B)                               in the event that any of the foregoing statements indicate that any Obligor or its Subsidiaries have varied in any material respect from any financial projections provided by such Obligor to Lender, if any, a statement of explanation of such variations from the applicable Responsible Officer.

 

(iii)                            Annual.  As soon as practicable after the end of each Fiscal Year of Broker/Dealer, and in any event within the sooner of (i) when filed with the SEC, FINRA or any other Governmental Authority and (ii) sixty (60) days after the end of each such Fiscal Year, annual audited financial statements of Broker/Dealer, and seventy five (75) days after the end of each such Fiscal Year, annual consolidated audited financial statements of Parent, in each case, including, without limitation, statements of income, changes in equity and cash flow for such year, and balance sheets as of the end of such year, setting forth in each case, in comparative form, corresponding figures for the period covered by the preceding annual review and as of the end of the preceding Fiscal Year, all in reasonable detail and satisfactory in scope to Lender and examined by Grant Thornton LLP, or any other independent certified public accountants of recognized standing and reputation selected by Broker/Dealer and reasonably satisfactory to Lender whose opinion shall be unqualified.

 

(iv)                             Other Information.  With reasonable promptness, such other business or financial data as Lender may reasonably request.

 

No change with respect to such accounting principles (other than to comply with changes in GAAP) shall be made by the Broker/Dealer without giving prior notification to the Lender.  The Broker/Dealer represents and warrants to the Lender that the financial statements delivered to the Lender at or prior to the execution and delivery of this Loan Agreement and to be delivered at all times thereafter accurately reflect and will accurately reflect the financial condition of the Broker/Dealer.  The Lender shall have the right during business hours, upon five (5) Business Days prior written notice thereof to the Broker/Dealer, to inspect the books and records of the Broker/Dealer and make extracts therefrom.

 

(h)                                 Audit Reports.  The Broker/Dealer shall (a) make available to the Lender copies of any audit reports performed or required to be performed by the Examining Authority and (b) furnish to the Lender copies of any audit reports performed or required to be performed by the Examining Authority which contains material adverse findings or otherwise results in liability.

 

(i)                                    Field Audits.  The Broker/Dealer shall permit the Lender to inspect the tangible assets and/or other business operations of the Broker/Dealer, to perform appraisals of the equipment of the Broker/Dealer, and to inspect, audit, check and make copies of, and extracts

 

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from, the books, records, computer data, journals, orders, receipts, correspondence and other data relating to accounts.  Such inspections or audits will be limited to no more than once per calendar year provided that no Event of Default has occurred and is continuing.  Unless an Event of Default shall have occurred and is continuing, all such inspections or audits that the Lender conducts during any calendar year shall be at the Lender’s sole expense.

 

(j)                                    Depository Relationship.  Broker/Dealer shall cause the primary banking depository relationship of Broker/Dealer to continue to be maintained with the Lender.  For the avoidance of doubt, this provision is not intended to, and shall not, require the Broker/Dealer to retain proceeds of the Loans for any period of time in its depository accounts.  All deposit accounts and operating bank accounts of Broker/Dealer are located at Lender, and Broker/Dealer has no other Deposit Accounts except those listed on Schedule 7(j).

 

(k)                                 Notices of Default and other Material Events.  The Broker/Dealer will furnish notice to the Lender in writing promptly after the Broker/Dealer knows or has reason to believe that (i) any Default has occurred, (ii) any proceeding by or before any Governmental Authority, and of any material development in respect of such legal or other proceedings, affecting the Broker/Dealer, except proceedings that if adversely determined, would not (either individually or in the aggregate) result in Material Adverse Effect or (iii) any other development that results in, or could reasonably be expected to result in a Material Adverse Effect.  Each notice delivered hereunder shall be accompanied by a statement of an executive officer of the Broker/Dealer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

(l)                                    Prohibition of Fundamental Changes.  Broker/Dealer and Holdings LP shall not (a) enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution); (b) acquire any business or property from, or Capital Securities of, or be a party to any acquisition of, any Person, except for Investments permitted under this Loan Agreement, or (c) convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of transactions, any material part of its business or property, whether now owned or hereafter acquired, except for (i) sales of obsolete or worn-out property or equipment no longer used or useful in its business so long as the amount thereof sold in any single fiscal year by the Broker/Dealer shall not have a fair market value in excess of $250,000 and (ii) sales of securities and other property in the Ordinary Course of Business.

 

(m)                              Subsidiaries.  Except with respect to any non-recourse special purpose entity Subsidiary that is created by Broker/Dealer for the purpose of accumulating financial assets for subsequent securitization and that is consolidated into the Broker/Dealer in accordance with GAAP, including those entities set forth on Schedule 7(m) (“Consolidated Subsidiaries”), Broker/Dealer and Holdings LP shall not, so long as Lender shall have any Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, directly or indirectly, form, acquire or permit to exist any Subsidiaries without Lender’s prior written consent which consent shall not be unreasonably withheld or delayed; provided that any investments in Consolidated Subsidiaries shall be included in and governed by the Additional

 

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Loan and Investment Cap under Section 7(p)(vii), and Broker/Dealer or Holdings LP shall give the Lender written notice of the creation of any Consolidated Subsidiary no later than ten (10) days after formation together with copies of its governing documents and such other documentation as Lender may reasonably request.

 

(n)                                 Debt.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, Broker/Dealer shall not directly or indirectly incur, create, assume, become or be liable in any manner with respect to, or permit to exist, any Debt, other than any of the following:

 

(i)                                     the Obligations;

 

(ii)                                  so long as no Event of Default exists or would occur as a result thereof, Debt to Pershing LLC or other securities lenders under customary short-term repurchase agreements entered into in the Ordinary Course of Business; provided, that Broker/Dealer provides an updated schedule setting forth all accounts relating to any short-term repurchase arrangements in existence as of the date of such compliance certificate;

 

(iii)                               Debt (including any undrawn amounts available under any document representing such Debt) existing as of the Closing Date as referred to in the financial statements referenced in Section 7(g) or set forth specifically in Schedule 7(n), and any renewals, refinancings or extensions thereof in a principal amount not in excess of that outstanding as of the date of such renewal, refinancing or extension and the terms of any such renewal, refinancing or extension are not materially less favorable to the obligor thereunder;

 

(iv)                              Debt of Broker/Dealer and its Subsidiaries incurred after the Closing Date consisting of Debt or any lease of property, real or personal, the obligations with respect to which are required to be capitalized on a balance sheet of the lessee in accordance with GAAP incurred to provide all or a portion of the purchase price or cost of construction of an asset; provided that (i) such Debt when incurred shall not exceed the purchase price or cost of construction of such asset; (ii) no such Debt shall be renewed, refinanced or extended for a principal amount in excess of the principal balance outstanding thereon at the time of such renewal, refinancing or extension; and (iii) the total amount of all such Debt shall not exceed $1,000,000 at any time outstanding;

 

(v)                                 unsecured intercompany Debt of Broker/Dealer payable to any other Obligors; provided, that, the total amount of all such Debt shall not exceed the Additional Loan and Investment Cap (inclusive of amounts advanced as contemplated by Sections 7(p)(vii));

 

(vi)                              unsecured Debt of a Person existing at the time such Person becomes a Subsidiary of Broker/Dealer in a transaction permitted hereunder in an aggregate principal amount not to exceed $1,000,000 for all such Persons; provided, that any such Debt was not created in anticipation of or in connection with the transaction or series of transactions pursuant to which such Person became a Subsidiary of Broker/Dealer;

 

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(vii)                           Contingent Liabilities in respect of Debt of Broker/Dealer to the extent such Debt is permitted to exist or be incurred pursuant to this Section 7(n);

 

(viii)                        Bank Product Obligations;

 

(ix)                              All Rate Contracts and Hedging Obligations entered into in the Ordinary Course of Business; and

 

(x)                                 margin payable to clearing agents and brokers, the BONY Credit Agreement, nonrecourse warehouse indebtedness, unsettled trade payables to clearing agents and brokers, trading securities sold and not yet purchased, and securities sold under agreement to repurchase.

 

Notwithstanding anything to the contrary contained herein, except as otherwise permitted by this Loan Agreement, Broker/Dealer shall not pay any obligations or indebtedness before the same is due.  For the avoidance of doubt, Schedule 7(n) may not be updated without Lender’s prior written consent.

 

(o)                                 Liens.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, it shall not create, incur, assume or suffer to exist any Lien other than Permitted Liens.

 

(p)                                 Investments.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, it shall not directly or indirectly, do any of the following:  (A) other than in the Ordinary Course of Business, purchase or acquire, or make any commitment therefor, any capital stock, equity interest, or any obligations or other securities of, or any interest in, any Person, including the establishment or creation of a Subsidiary (other than Consolidated Subsidiaries subject to the limitations herein) or enter into any joint ventures, or (B) make or commit to make any acquisitions, or any other acquisition of all or substantially all of the assets of another Person, or of any business or division of any Person, including by way of merger, consolidation or other combination, or (C) make or commit to make any advance, loan, extension of credit or capital contribution to, or any other investment in, any Person including any Affiliate of Broker/Dealer (the items described in clauses (A), (B) and (C) are referred to as “Investments”), except for:

 

(i)                                     Investments in cash and Cash Equivalent Investments;

 

(ii)                                  Rate Contracts permitted by Section 7(n);

 

(iii)                               existing Debt set forth on Schedule 7(n) and any renewals, refinancings or extensions thereof in a principal amount not in excess of that outstanding as of

 

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the date of such renewal, refinancing or extension and the terms of any such renewal, refinancing or extension are not materially less favorable to the obligor thereunder;

 

(iv)                              receivables owing to Obligors or any of their Subsidiaries or any receivables, advances and payments to suppliers, in each case if created, acquired or made in the Ordinary Course of Business and payable or dischargeable in accordance with customary trade terms;

 

(v)                                 loans and advances (excluding customary reimbursement expenses in the Ordinary Course of Business) to officers, directors and employees in an aggregate amount not to exceed $600,000 at any time outstanding; provided that such loans and advances shall comply with all applicable requirements of any applicable laws (including the Sarbanes-Oxley Act of 2002, as amended);

 

(vi)                              loans or investments (including debt obligations) in an aggregate amount outstanding at any time not to exceed $1,000,000 received in connection with the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the Ordinary Course of Business;

 

(vii)                           additional loan advances and/or investments of a nature not contemplated by the foregoing clauses hereof; provided, that the sum of such loans, advances and/or investments contemplated by this Section 7(p) (including Investments in Consolidated Subsidiaries), Section 7(n)(v) and Section 7(n)(vi), in the aggregate, shall not at any time exceed $7,500,000 (the “Additional Loan and Investment Cap”); provided, that so long as no Default has occurred and is continuing, the Additional Loan and Investment Cap shall increase to $10,000,000 beginning on December 31, 2018, and thereafter;

 

(viii)                        without duplication, investments constituting Debt permitted under Section 7(n).

 

(q)                                 Transactions with Affiliates.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, it shall not directly or indirectly, enter into any transaction with, or pay any compensation or other amounts to, any Affiliate of Broker/Dealer or any Affiliate of any Subsidiary of Broker/Dealer, other than (i) payments expressly permitted pursuant to Section 7(u), (ii) transactions on terms and conditions substantially as favorable as would be obtainable in a comparable arm’s-length transaction with a Person other than such Affiliate, (iii) as specifically described on Schedule 7(q) and (iv) transactions permitted under this Section 7.

 

(r)                                   Restricted Payments.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, it shall not directly or indirectly, except as set forth in Schedule 7(r), do any of the following:  (i) declare or make any dividend payment or other

 

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distribution of assets, properties, cash, rights, obligations or securities on account of any shares of any class of its Capital Securities, partnership interests, membership interests or other Capital Securities (including warrants), or (ii) purchase, redeem or otherwise acquire for value any of its partnership interests, membership interests or other Capital Securities or any warrants, rights or options to acquire such Capital Securities or securities now or hereafter outstanding; provided that with respect to payments made under either clauses (i) or (ii) of this Section 7(r), Broker/Dealer may make any such payment so long as no Event of Default exist before such payment or would occur after giving effect thereto.

 

(s)                                   Change in Structure.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, no Obligor shall directly or indirectly, except as set forth on Schedule 7(s), amend any of its governing documents or make any changes in its equity capital structure (including in the terms of its outstanding Capital Securities), in each case as to (i) Broker/Dealer and/or Holdings LP without Lender’s prior written consent which consent shall not be unreasonably withheld or delayed, and (ii) each other Obligor to the extent such amendment or change results in a material adverse effect on Lender’s rights or remedies under any Loan Document or the credit worthiness of such Obligor as determined by Lender in its reasonable lending judgment.

 

(t)                                    Modifications of Certain Documents.  The Broker/Dealer will not amend, modify or waive any of its rights under its organizational documents, other than (i) immaterial amendments, modifications or waivers that could not reasonably be expected to adversely affect the Lender and (ii) amendments or modifications that have been approved by the Lender prior to being made.  Broker/Dealer shall deliver or cause to be delivered to the Lender a copy of each amendment, modification or waiver of its organizational documents promptly after the execution and delivery thereof.

 

(u)                                 Management and Consulting Arrangements.  Broker/Dealer covenants and agrees that, so long as Lender shall have any Loan Commitment hereunder, or the Loans or other Obligations (other than contingent obligations with respect to which no express indemnification claim has been made) shall remain unpaid or unsatisfied, it shall not directly or indirectly, except as set forth on Schedule 7(u), enter into any management or consulting arrangement with any Affiliate of Broker/Dealer, Holdings LP or any Subsidiary Broker/Dealer or Holdings LP or any holder of Debt of Broker/Dealer and/or Holdings LP, or pay or accrue any management, consulting or similar fees to any Affiliate of Broker/Dealer or Holdings LP, or any Affiliate of any Subsidiary of Broker/Dealer or Holdings LLP; provided that upon the occurrence or during the continuance of an Event of Default, neither Broker/Dealer nor Holdings LP shall make payments under any of the agreements set forth on Schedule 7(u).

 

(v)                                  ERISA Liabilities; Employee Plans.  The Broker/Dealer shall (i) keep in full force and effect any and all Employee Plans which are governed by ERISA, and not withdraw from any such Employee Plans, unless such withdrawal can be effected or such Employee Plans can be terminated without liability that would reasonably be expected to have a Material Adverse Effect upon the Broker/Dealer; (ii) make contributions to all of such Employee

 

28

 

Plans in a timely manner and in a sufficient amount to comply with the standards of ERISA; including the minimum funding standards of ERISA; (iii) comply with all material requirements of ERISA which relate to such Employee Plans; (iv) notify the Lender immediately upon receipt by the Broker/Dealer of any notice concerning the imposition of any withdrawal liability or of the institution of any proceeding or other action which may result in the termination of any such Employee Plans or the appointment of a trustee to administer such Employee Plans; (v) promptly advise the Lender upon its becoming aware of the occurrence of any “Reportable Event” or “Prohibited Transaction” (as such terms are defined in ERISA), with respect to any such Employee Plans; and (vi) amend any Employee Plan that is intended to be qualified within the meaning of Section 401 of the Internal Revenue Code of 1986 to the extent necessary to keep the Employee Plan qualified, and to cause the Employee Plan to be administered and operated in a manner that does not cause the Employee Plan to lose its qualified status.

 

(w)                               Compliance with Lender Regulatory Requirements; Increased Costs.  If the Lender shall reasonably determine that any Regulatory Change, or compliance by the Lender or any Person controlling the Lender with any request or directive (whether or not having the force of law) of any governmental authority, central bank or comparable agency has or would have the effect of reducing the rate of return on the Lender’s or such controlling Person’s capital as a consequence of the Lender’s obligations hereunder to a level below that which the Lender or such controlling Person could have achieved but for such Regulatory Change or compliance (taking into consideration the Lender’s or such controlling Person’s policies with respect to capital adequacy) by an amount deemed by the Lender or such controlling Person to be material or would otherwise reduce the amount of any sum received or receivable by the Lender hereunder or under the Revolving Note with respect thereto, then from time to time, upon demand by the Lender (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail), the Broker/Dealer shall pay directly to the Lender or such controlling Person such additional amount as will compensate the Lender for such increased cost or such reduction, so long as such amounts have accrued on or after the day which is one hundred eighty days (180) days prior to the date on which the Lender first made demand therefor; provided that such demand is consistent with demands made generally in respect of the applicable facts and circumstances by Lender under other credit agreements containing a provision similar to this Section 7(w).

 

(x)                                 Inconsistent Agreements.  The Broker/Dealer shall not enter into any agreement containing any provision which would be violated or breached by any borrowing by the Broker/Dealer hereunder or by the performance by the Broker/Dealer of any of its Obligations hereunder or under any other Loan Document.

 

8.                                      Events of Default.  The Broker/Dealer, without notice or demand of any kind, shall be in default under this Rider upon the occurrence of any of the following events (each an “Event of Default”).

 

(a)                                 Nonpayment of Obligations.  Any amount due and owing under this Loan Agreement or any of the Obligations, whether by its terms or as otherwise provided herein, is not paid when due.

 

29

 

(b)                                 Misrepresentation.  Any oral or written warranty, representation, certificate or statement of any Obligor in this Loan Agreement, the other Loan Documents or any other agreement with the Lender shall be false in any material respect when made or at any time thereafter, or if any financial data or any other information now or hereafter furnished to the Lender by or on behalf of any Obligor shall prove to be false, inaccurate or misleading in any material respect.

 

(c)                                  Nonperformance.  Any failure to perform or default in the performance of any covenant, condition or agreement contained in this Loan Agreement or in the other Loan Documents or any other agreement with the Lender, provided that with respect to Sections 7(d), 7(e), 7(f), and 7(v), Broker/Dealer shall have a period of ten (10) days in order to cure such default or failure to perform.

 

(d)                                 Default under Loan Documents.  A default under the Loan Agreement or any of the other Loan Documents, all of which covenants, conditions and agreements contained therein are hereby incorporated in this Loan Agreement by express reference, shall be and constitute an Event of Default under this Loan Agreement and any other of the Obligations; provided that other than (i) an Event of Default under the remainder of this Section 8 or (ii) a payment default or default under Section 8(b) of the Form 33(R), such default shall remain unremedied for fifteen (15) days.

 

(e)                                  Default under Other Debt.  As to more than $500,000 in Debt of Broker/Dealer in the aggregate at any time (i) Broker/Dealer shall fail to make any payment due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) on any such Debt and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; (ii) any other default under any agreement or instrument relating to any such Debt, or any other event, shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument if the effect of such default or event 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 (other than by a regularly scheduled required payment) prior to the stated maturity thereof.

 

(f)                                    Other Material Obligations.  Any default in the payment when due, or in the performance or observance of, any material obligation of, or condition agreed to by, any Obligor with respect to any material purchase or lease of goods or services (after any applicable cure periods have elapsed) where such default, singly or in the aggregate with all other such defaults, might reasonably be expected to have a Material Adverse Effect.

 

(g)                                 Bankruptcy, Insolvency.  A proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute is filed (i) against any Obligor and an adjudication or appointment is made or order for relief is entered, or such proceeding remains undismissed for a period in excess of thirty (30) days after commencement of the action, or (ii) by any Obligor; any Obligor makes an assignment for the benefit of creditors; any Obligor voluntarily or involuntarily dissolves or is dissolved, or terminates or is terminated; any Obligor takes any corporate, limited liability company or

 

30

 

partnership, as applicable, action to authorize any of the foregoing; or any Obligor becomes insolvent or fails generally to pay its debts as they become due.

 

(h)                                 Judgments.  A judgment or order (except for judgments which are not a Lien on personal Property and which are being contested by such Person in good faith) shall be rendered against any Obligor and such judgment or order shall remain unsatisfied or undischarged and in effect, or is not bonded pending appeal, for thirty (30) consecutive days without a stay of enforcement or execution, provided that this Section 8(h) shall not apply (i) to any judgment for which such Obligor is fully insured (except for normal deductibles in connection therewith) and with respect to which the insurer has assumed the defense and is not defending under reservation of right and with respect to which Lender reasonably believes the insurer will pay the full amount thereof (except for normal deductibles in connection therewith) or (ii) to the extent that the aggregate amount of all such judgments and orders does not exceed $500,000.

 

(i)                                    Liens by Government Agencies.  A notice of Lien, levy or assessment is filed or recorded with respect to all or a substantial part of the assets of any Obligor by the United States, or any department, agency or instrumentality thereof, or by any state, county, municipality or other governmental agency, or any taxes or debts owing at any time or times hereafter to any one or more of them become a Lien upon all or a substantial part of the Obligor’s Property, and (i) such Lien, levy or assessment is not discharged or released or the enforcement thereof is not stayed within 30 days of the notice or attachment thereof, or (ii) if the enforcement thereof is stayed, such stay shall cease to be in effect, provided that this Section 8(i) shall not apply to any Permitted Liens.

 

(j)                                    Attachment, Seizures, Levies.  All or any part of the Broker/Dealer’s Property is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors and on or before the thirtieth (30th) day thereafter such assets are not returned to and/or such writ, distress warrant or levy is not dismissed, stayed or lifted and if the amount of such Property, together with any other such Property that is so attached, seized, subjected to writ or distress warrant or levied upon, exceeds $750,000 at any time.

 

(k)                                 Change in Control.  The occurrence of any Change in Control.

 

(l)                                    Membership Status; Compliance.  The membership of the Broker/Dealer on any commodity or securities exchange or the status of the Broker/Dealer as a clearing member thereof, shall be terminated, revoked or suspended for any reason, or the registration of the Broker/Dealer as a broker dealer with the SEC shall be suspended, revoked or terminated for any reason, or the Broker/Dealer shall fail to comply with any Capital Requirements, or Broker/Dealer is enjoined, restrained, or in any way prevented by the order of any court or any administrative or regulatory agency from conducting all or any material part of its business affairs.

 

(m)                              Material Adverse Effect.  A material adverse change shall occur (i) in the operations, business, properties or condition (financial or otherwise) of Broker/Dealer or Holdings LP, or (ii) which materially impairs the ability of Broker/Dealer or Holdings LP to

 

31

 

perform its respective obligations under this Agreement and the other Loan Documents, in each case as determined by Lender in its reasonable discretion.

 

(n)                                 Guaranty.  Any Guarantor terminates, discontinues or revokes its Guaranty or attempts to do any of the foregoing or any Guarantor shall contest the validity of its Guaranty.

 

(o)                                 Subordinated Debt.  The subordination provisions of any Subordinated Debt shall for any reason be revoked or invalid or otherwise cease to be in full force and effect.  The Broker/Dealer shall contest in any manner, or any other holder thereof shall contest in any judicial proceeding, the validity or enforceability of the Subordinated Debt or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason not have the priority contemplated by the subordination provisions of the Subordinated Debt.

 

(p)                                 Related Debt.  The occurrence of any material breach, default or event of default under or with respect to the (i) BONY Credit Agreement or BD Loan Agreement, (ii) any Debt set forth on Schedule 7(n) or (iii) any Third Party Debt, provided that a breach shall be deemed material in the event the creditor takes material action against debor under such agreement(s) or in connection with such Debt.

 

(q)                                 Suspension of Payment Obligations.  Any condition or event shall have occurred which would have the effect of suspending the repayment obligation of the Broker/Dealer for any advance of Revolving Loans made under the Loan Agreement, whether or not any such advance has then been made to or is then due from the Broker/Dealer or there has been an actual default in the payment of any principal or interest of any such advance at the scheduled maturity or due date thereof.

 

9.                                      Remedies.  Upon the occurrence and during the continuance of an Event of Default, the Lender shall have all rights, powers and remedies set forth in the Loan Documents, in any written agreement or instrument (other than this Agreement or the Loan Documents) relating to any of the Obligations or as otherwise provided at law or in equity.  Without limiting the generality of the foregoing, the Lender may, at its option upon the occurrence and during the continuance of an Event of Default, upon written notice to the Broker/Dealer and the Exchange, terminate its remaining commitment and exercise its rights under the Loan Agreement to accelerate the Revolving Loan Maturity Date, subject in all events to the requirements for such acceleration specified in the Loan Agreement.  The parties, by incorporating the terms of this Rider, agree that to the extent any provision of this Rider is inconsistent with any provision of Appendix D to the Rule or of any other applicable provision of the SEC, the rules and regulations thereunder, or the rules of FINRA, then the Form 33R and such provisions, rules and regulations shall control, and no provision of this Rider shall impede the ability of the Broker/Dealer to comply with such provisions, rules and regulations.

 

10.                               Obligations Absolute.  None of the following shall affect the Obligations of the Broker/Deal to the Lender under this Loan Agreement.

 

(a)                                 release by the Lender of any Guarantor or of any other party liable with respect to the Obligations; or

 

32

 

(b)           release, extension, renewal, modification or substitution by the Lender of any Guaranty, or the compromise of the liability of any Guarantor of the Obligations.

 

11.          Notices.  Except as otherwise provided herein, Broker/Dealer waives all notices and demands in connection with the enforcement of Lender’s rights hereunder.  All notices and other communications provided for hereunder shall be in writing and shall be mailed, faxed or delivered at the following address:

 

	
If to the   Broker/Dealer:
    	
 
    	
J.V.B. Financial Group, LLC
   Cira Center
   2929 Arch Street, Suite 1703
   Philadelphia, Pennsylvania 19104
   Attn: Joseph W. Pooler, Jr.
   Email: JPooler@cohenandcompany.com
   Fax: (215) 701-8279
    
	
 
    	
 
    	
 
    
	
With a copy to:
    	
 
    	
Duane Morris LLP
   30 South 17th Street
   Philadelphia, Pennsylvania 19103
   Attn: Darrick M. Mix
   Email: DMix@duanemorris.com
   Fax: (215) 405-2906
    
	
 
    	
 
    	
 
    
	
If to Lender:
    	
 
    	
MB Financial Bank, N.A.
   800 West Madison Street
   Chicago, Illinois 60607
   Attn: Scott A. Mier
   Fax: (312) 633-0322
   Email: smier@mbfinancial.com
    
	
 
    	
 
    	
 
    
	
With a copy to:
    	
 
    	
Saul Ewing Arnstein & Lehr LLP
   161 N. Clark Street, Suite 4200
   Chicago, Illinois 60601
   Attn: Erik L. Kantz, Esq.
   Fax: (312) 876-6211
   Email: erik.kantz@saul.com
    

 

or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with the terms of this Section 11.  All such notices and other communications shall be effective, (i) if mailed, when received or three (3) days after deposited in the mails, whichever occurs first, (ii) if faxed, when transmitted and confirmation received, or if emailed, upon transmission provided that notice also is provided by another means hereunder (iii) if hand delivered, upon delivery, and if delivered by overnight courier, upon the next Business Day after deposit.

 

33

 

12.          Expenses; Indemnification.

 

(a)           The Broker/Dealer agrees to pay or reimburse the Lender, within 30 days of demand, for all reasonable and documented out-of-pocket expenses (including the reasonable fees and expenses of outside legal counsel for the Lender) incurred by the Lender in connection with the enforcement or protection of the Lender’s rights pursuant to this Loan Agreement and the other Loan Documents and the Loan, including those incurred with respect to a Default and any enforcement or collection proceedings resulting therefrom, including without limitation, in (A) bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation proceedings, (B) judicial or regulatory proceedings and (C) workout, restructuring or other negotiations or proceedings, whether or not the workout, restructuring or transaction contemplated thereby is consummated.

 

(b)           The Broker/Dealer hereby agrees to indemnify the Lender, its Subsidiaries and Affiliates and its and their respective partners, members, directors, officers, employees, agents and advisors (each an “Indemnified Party”) from, and hold each of them harmless against, any and all losses, liabilities, claims, damages or expenses incurred by any of them arising out of, in connection with, or as a result of, this Loan Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof, including, without limitation, the reasonable fees and disbursements of outside counsel incurred in connection with any such investigation or litigation or other proceedings; provided that such indemnity shall not, as to any Indemnified Party, be available to the extent that such losses, liabilities, claims, damages, or expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnified Party or a material breach of this Loan Agreement by such Indemnified Party.  The Lender agrees to give the Broker/Dealer notice of any such investigations, litigation or other proceedings, within a reasonable time after Lender’s actual discovery of the same; provided that the Lender’s failure to provide such notice shall not affect the Broker/Dealer’s obligations hereunder.

 

(c)           To the fullest extent permitted by applicable law, the Broker/Dealer shall not assert, and Broker/Dealer hereby waives, any claim against each Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Loan Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof.

 

13.          Assignments.  Paragraph 19(c) of Form 33R is hereby replaced with the following as paragraphs 19(c) and 19(d):

 

“(c)         The Broker/Dealer may not transfer, sell, assign, pledge, or otherwise encumber or dispose of any of its rights or obligations under the Loan Documents without the prior written consent of the Lender and the prior written consent of FINRA, and any attempted transfer, sale, assignment, pledge, encumbrance or disposal shall be null and void.  The Lender may transfer, sell,

 

34

 

assign, pledge, or otherwise encumber or dispose of the Loans or any portion thereof only with the prior written consent of the Broker/Dealer (not to be unreasonably withheld or delayed and not to be required during the continuance of an Event of Default or an Event of Acceleration) and only with the prior written consent of FINRA.

 

(d)           Notwithstanding anything herein to the contrary, subject to the approval of the board of directors of the Lender (if deemed necessary or appropriate by the Lender) and only with the prior written consent of FINRA, the Lender may, in its sole discretion and without the Broker/Dealer’s consent, assign its rights and obligations under the Loan Documents and the Loan (before or after the closing) to Affiliates of the Lender (but subject to customary documentation in form and substance reasonably acceptable to the Broker/Dealer).  Upon the effectiveness of any such assignment, the Broker/Dealer shall look solely to the assignee in respect of this Loan Agreement and Lender shall have no further obligations in respect of this Loan Agreement.”

 

14.          Reliance and Survival.  All covenants, agreements, representations and warranties made by the Broker/Dealer herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Loan Agreement or any other Loan Document incorporated herein by reference shall be considered to have been relied upon by the Lender and shall survive the execution and delivery of any Loan Document and the making of the Loan, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on the Loan or any fee or any other amount payable under the Loan Documents is outstanding and unpaid and so long as this Loan Agreement has not been terminated (whether by maturity or otherwise).  The provisions of Section 3 and Sections 9 through 21 shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loan, the permitted assignment of this Loan Agreement, and the termination of this Loan Agreement or any provision hereof.  The benefits of this Section 14 shall extend to any Person who is or has been a Lender under this Loan Agreement.

 

15.          Revival and Reinstatement of Obligations.  If the incurrence or payment of the Obligations by any Obligor or the transfer to the Lender of any property should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (collectively, a “Voidable Transfer”), and if the Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys’ fees of the Lender, the Obligations shall automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made.

 

35

 

16.          No Fiduciary Duty.  The Broker/Dealer agrees that in connection with all aspects of the transactions contemplated by this Loan Agreement and the other Loan Documents and any communications in connection therewith, the Broker/Dealer and its Affiliates, on the one hand, and the Lender and its Affiliates, on the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on the part of the Lender or its Affiliates and no such duty will be deemed to have arisen in connection with any such transactions or communications.

 

17.          Counterparts; Integration.  This Loan Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Loan Agreement by signing any such counterpart.  This Loan Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.

 

18.          Amendments.  Except as provided herein, no provision of this Loan Agreement may be amended, supplemented or otherwise modified (each a “modification”) except by an instrument in writing signed by the Broker/Dealer and the Lender and approved in writing by the Examining Authority.  This Loan Agreement shall not be subject to cancellation by either the Lender or the Broker/Dealer, and no payment shall be made, nor this Loan Agreement terminated, rescinded or modified by mutual consent or otherwise if the effect thereof would be inconsistent with the requirements of 17 CFR 240.15c3-1 and 240.15c3-1d.

 

19.          Headings.  The captions in this Loan Agreement are for convenience of reference only and in no way define, limit or describe the scope of this Loan Agreement and shall not be considered in the interpretation of this Loan Agreement or any provision thereof.

 

20.          Release of Claims Against Lender.  In consideration of the Lender making the Loans, the Broker/Dealer and all other Obligors do each hereby release and discharge the Lender of and from any and all claims, harm, injury, and damage of any and every kind, known or unknown, legal or equitable, which any Obligor may have against the Lender from the date of their respective first contact with the Lender until the date of this Agreement including, but not limited to, any claim arising from any reports (environmental reports, surveys, appraisals, etc.) prepared by any parties hired or recommended by the Lender. The Broker/Dealer and all other Obligors confirm to Lender that they have reviewed the effect of this release with competent legal counsel of their choice, or have been afforded the opportunity to do so, prior to execution of this Agreement and the Loan Documents and do each acknowledge and agree that the Lender is relying upon this release in extending the Loans to the Broker/Dealer.

 

21.          Customer Identification - USA Patriot Act Notice.  The Lender hereby notifies the Broker/Dealer 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”), and the Lender’s policies and practices, the Lender is required to obtain, verify and record certain information and documentation that identifies the Broker/Dealer, which information includes the name and address of the Broker/Dealer and such other information that will allow the Lender to identify the Broker/Dealer in accordance with the Act.

 

36

 

The Broker/Dealer and the Lender agree that this Rider shall be deemed to be a part of this Loan Agreement.

 

 

	
 
    	
J.V.B. FINANCIAL GROUP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas Listman
    
	
 
    	
Name:
    	
Douglas Listman
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MB FINANCIAL BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Mier
    
	
 
    	
Name:
    	
Scott Mier
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Rider A to
 Revolving Note and Cash Subordination Agreement

 

 

DISCLOSURE SCHEDULES

 

to

 

RIDER A TO REVOLVING NOTE AND CASH SUBORDINATION AGREEMENT

 

by and between

 

MB FINANCIAL BANK, N.A.

 

and

 

J.V.B. FINANCIAL GROUP, LLC

 

dated as of

 

January 29, 2019

 

These disclosure schedules (these “Disclosure Schedules”) are being delivered pursuant to Rider A (“Rider A”) to the Revolving Note and Cash Subordination Agreement (the “Loan Agreement”), dated as of January 29, 2019, by and between MB Financial Bank, N.A. (the “Lender”) and J.V.B. Financial Group, LLC (the “Broker/Dealer”).  Capitalized terms used but not defined herein shall have the same meanings given them in the Loan Agreement.

 

These Disclosure Schedules are arranged in sections corresponding to the numbered and lettered sections and subsections contained in Rider A, and the disclosures in any section or subsection of these Disclosure Schedules shall qualify other sections and subsections of Rider A. Disclosure of any information or document in these Disclosure Schedules is not a statement or admission that it is material or required to be disclosed herein.  The descriptive headings in these Disclosure Schedules are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning, construction or interpretation of, these Disclosure Schedules, Rider A or the Loan Agreement.

 

No disclosure in these Disclosure Schedules relating to any possible breach or violation of any agreement, law or regulation shall be construed as an admission or indication that any such breach or violation exists or has actually occurred, and no disclosure in these Disclosure Schedules constitutes an admission of any liability or obligation of Broker/Dealer or Lender to any third party nor an admission against interests of Broker/Dealer or Lender to any third party.

 

 

Schedule 5(e)

Equity Ownership of Broker/Dealer, Holdings LP, Operating LLC, and Parent

 

Ownership Structure of Obligors:

 

	
Obligor
    	
 
    	
Type of Outstanding Equity Interests
    	
 
    	
Holders of such Equity Interests
    
	
Broker/Dealer
    	
 
    	
Limited Partnership Interests
    	
 
    	
Holdings LP (100%)
    
	
Holdings LP
    	
 
    	
Limited Partnership Interests
    	
 
    	
Operating LLC (99%)
    C&CO (1%)
    
	
C&CO
    	
 
    	
Membership Interests
    	
 
    	
Cohen & Company, LLC (100%)
    
	
Operating LLC
    	
 
    	
Units of Membership Interests: 16,536,914 issued and outstanding   as of the date of these Disclosure Schedules.
    	
 
    	
Parent (67.80%)
    Daniel G. Cohen (30.14%)
 Christopher   Ricciardi (1.62%)
 Linda   Koster (0.44%)
    
	
Parent
    	
 
    	
Common Stock: 1,214,762 shares issued and outstanding as of the   date of these Disclosure Schedules

Series E Voting Non-Convertible: Preferred Stock 4,983,557   shares issued and outstanding as of the date of these Disclosure Schedules
    	
 
    	
Common Stock:

·                  Daniel   G. Cohen and Other Members of His Immediate Family — directly or indirectly   own 48% of Parent’s outstanding shares of common stock.

Public shareholders own the remaining 52% of the Company’s   common stock.

 

Series E Voting Non-Convertible Preferred Stock:

·                  Daniel   G. Cohen is the indirect owner of 4,983,557 shares of Series E Voting   Non-Convertible Preferred Stock, representing 100% of the issued and   outstanding Series E Voting Non-Convertible Preferred Stock.
    

 

Other Equity Interests of Obligors:

 

1.              Convertible Senior Secured Promissory Note issued by Operating LLC to DGC Family Fintech Trust on March 10, 2017 in the aggregate principal amount of $15,000,000, together with the related Securities Purchase Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), the DGC Family Fintech Trust, a trust established by Daniel G. Cohen, and solely with respect to certain provisions thereof, Parent (formerly Institutional Financial Markets, Inc.), and the related Pledge Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), in favor of the DGC Family Fintech Trust

 

·                  Maturity date 3/10/2022.

·                  Convertible at any time prior to maturity into units of membership interests in Operating LLC at a conversion price of $1.45 per unit (or an aggregate of 10,344,827 units).  Upon redemption, the 10,344,827 units are convertible into, at Parent’s option, Parent common stock at a 10:1 ratio (or an aggregate of 1,034,483 shares of Parent common stock) or cash.

 

2.              Convertible Senior Secured Promissory Note issued by Parent to EBC 2013 Family Trust on September 25, 2013 in the aggregate principal amount of $2,400,000.

 

·                  Maturity Date 9/25/2019.

·                  Convertible at any time prior to maturity into shares of Parent common stock at a conversion price of $12.00 per share (or an aggregate of convertible into 200,000 shares of Parent common stock).

 

2

 

Schedule 5(e)

Equity Ownership

Continued

 

·                  Convertible into an additional 16,207 shares of Parent common stock as of October 31, 2018 assuming none of the interest under the note is paid to the holder thereof in cash.

 

3.              Convertible Senior Secured Promissory Note issued by Parent to Edward E. Cohen IRA on August 28, 2015 in the aggregate principal amount of $4,385,628.

 

·                  Maturity Date 9/25/2019.

·                  Convertible at any time prior to maturity into shares of Parent common stock at a conversion price of $12.00 per share (or an aggregate of convertible into 365,469 shares of Parent common stock).

·                  Convertible into an additional 29,616 shares of Parent common stock as of October 31, 2018 assuming none of the interest under the note is paid to the holder thereof in cash.

 

4.              As of the date of these Disclosure Schedules, there are unexercised out-of-the money options which were issued under Parent’s 2006 Long-Term Incentive Plan and Parent’s Second Amended and Restated 2010 Long-Term Incentive Plan and which are exercisable into an aggregate of 319,286 shares of Parent common stock and expire November 30, 2018.

 

5.              One award for 50,000 Restricted Stock Units is outstanding as of the date of these Disclosure Schedules.

 

·                  Award was issued under Parent’s Second Amended and Restated 2010 Long-Term Incentive Plan.

·                  Restricted Stock Units vest pursuant to performance criteria set forth in the applicable award agreement.

 

	
 
    	
 
    	
As of 10/31/18
    	
 
    
	
Parent Shares of Common Stock Summary:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Parent Common Stock   Issued & Outstanding
    	
 
    	
1,214,762
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Operating LLC Units of Membership   interests not held by Parent (upon redemption, the units are convertible   into, at Parent’s option, Parent common stock at a 10:1 ratio or cash)
    	
 
    	
532,409
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Parent Common Stock   Underlying Outstanding Restricted Stock Units
    	
 
    	
50,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
September 25, 2013   Convertible Senior Secured Promissory Notes (convertible into Parent common   stock)
    	
 
    	
565,469
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
March 10, 2017   Convertible Senior Secured Promissory Note (convertible into Operating LLC   units of membership interests, which upon redemption are convertible into, at   Parent’s option, Parent common stock at a 10:1 ratio or cash)
    	
 
    	
1,034,483
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Parent Common Stock   Underlying Outstanding Options
    	
 
    	
319,286
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total Shares of Parent   Common Stock (fully diluted)
    	
 
    	
3,716,409
    	
 
    

 

3

 

Schedule 5(k)

Liquidity

 

Date                       11/16/2018

 

In ‘000s

 

	
 
    	
 
    	
MB   Financial
    	
 
    	
Pershing
    	
 
    	
BoNY
    	
 
    	
Zions Bank
    	
 
    	
Gestational
   Repo
    	
 
    	
RCG
    	
 
    	
Other
    	
 
    	
Total
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Assets
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cash
    	
 
    	
244.8
    	
 
    	
 
    	
 
    	
4,549.3
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4,794.10
    	
 
    
	
Reverse Repo   Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3,626,469.7
    	
 
    	
 
    	
 
    	
353,703.4
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3,980,173.10
    	
 
    
	
Long
    	
 
    	
 
    	
 
    	
242,458.1
    	
 
    	
 
    	
 
    	
42,329.3
    	
 
    	
 
    	
 
    	
9.5
    	
 
    	
1,570.0
    	
 
    	
286,366.90
    	
 
    
	
Due from Broker
    	
 
    	
 
    	
 
    	
116,602.5
    	
 
    	
5,762.1
    	
 
    	
2,726.7
    	
 
    	
 
    	
 
    	
910.1
    	
 
    	
 
    	
 
    	
126,001.40
    	
 
    
	
Other
    	
 
    	
 
    	
 
    	
 
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Total   Assets
    	
 
    	
244.80
    	
 
    	
359,060.60
    	
 
    	
3,636,781.10
    	
 
    	
45,056.00
    	
 
    	
353,703.40
    	
 
    	
919.60
    	
 
    	
1,570.00
    	
 
    	
4,397,335.50
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Liabilities
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Repo
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(3,659,011.5
    	
)
    	
(42,473.5
    	
)
    	
(354,668.4
    	
)
    	
 
    	
 
    	
 
    	
 
    	
(4,056,153.4
    	
)
    
	
Short
    	
 
    	
 
    	
 
    	
(136,876.8
    	
)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
—
    	
 
    	
 
    	
 
    	
(136,876.8
    	
)
    
	
Due to Broker
    	
 
    	
 
    	
 
    	
(95,709.1
    	
)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
—
    	
 
    	
 
    	
 
    	
(95,709.1
    	
)
    
	
Other
    	
 
    	
 
    	
 
    	
—
    	
 
    	
(4,549.3
    	
)
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
(7,067.8
    	
)
    	
—
    	
 
    
	
Total   Liabilities
    	
 
    	
—
    	
 
    	
(232,585.9
    	
)
    	
(3,663,560.8
    	
)
    	
(42,473.5
    	
)
    	
(354,668.4
    	
)
    	
—
    	
 
    	
(7,067.8
    	
)
    	
(4,288,739.3
    	
)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Equity
    	
 
    	
244.8
    	
 
    	
126,474.7
    	
 
    	
(26,779.7
    	
)
    	
2,582.5
    	
 
    	
(965.0
    	
)
    	
919.6
    	
 
    	
(5,497.8
    	
)
    	
96,979.1
    	
 
    

 

4

 

Schedule 5(m)

Litigation & Contingent Liabilities of Broker/Dealer

 

None.

 

5

 

Schedule 7(j)

Deposit Accounts of the Broker/Dealer

 

	
Account Name
    	
 
    	
Account Number
    	
 
    	
Bank
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
J.V.B. Financial Group LLC
    	
 
    	
1980004219
    	
 
    	
MB Financial Bank, N.A.
    
	
J.V.B. Financial Group LLC
    	
 
    	
1980004340
    	
 
    	
MB Financial Bank, N.A.
    
	
J.V.B. Financial Group LLC
    	
 
    	
1980004847
    	
 
    	
MB Financial Bank, N.A.
    

 

6

 

Schedule 7(m)

Consolidated Subsidiaries of Broker/Dealer and Holdings LP

 

	
Broker/Dealer:
    	
None.
    
	
 
    	
 
    
	
Holdings LP:
    	
Broker/Dealer and COOF Asset Acquisition, LLC
    

 

7

 

Schedule 7(n)

Debt of Obligors

 

Loan Agreement among J.V.B. Financial Group, LLC, as Borrower, J.V.B. Financial Group Holdings, LP, as Corporate Guarantor, C&CO/Princeridge Partners LLC, as general partner of J.V.B. Financial Group Holdings, LP, Cohen & Company, LLC, as Corporate Guarantor, Cohen & Company Inc., as Corporate Guarantor, and MB Financial Bank, N.A., as lender, dated as of April 25, 2018 (the “MB Financial Bank Credit Facility”) and as amended by the First Amendment to Loan Agreement, dated January 29, 2019.

 

The Loan Agreement and Rider A.

 

8

 

Schedule 7(q)

Transactions with Affiliates

 

1.              Paymaster Agreement, dated 10/17/14, between Operating LLC and Broker/Dealer.

2.              Fourth Amended and Restated Expense Sharing Agreement, with Addendums, dated 10/15/14, 1/1/17, 1/1/18, respectively, among Broker/Dealer, Holdings LP and Operating LLC.

3.              Line of Credit Agreement, dated 5/1/15, between Broker/Dealer and Operating LLC.

4.              Permitted distributions under Section 6.9 of the Loan Agreement.

 

9

 

Schedule 7(r)

Restricted Payments

 

None.

 

10

 

Schedule 7(s)

Change in Structure

 

Parent:

 

1.                          On August 3, 2007, Parent’s Board of Directors authorized Parent to repurchase up to $50,000,000 of its common stock from time to time in open market purchases or privately negotiated transactions. The repurchase plan was publicly announced on August 7, 2007.

2.                          2006 AFN Equity Incentive Plan — 938 shares available to be issued.

3.                          Parent’s Second Amended and Restated 2010 Long-Term Incentive Plan (as amended April 18, 2011, March 8, 2012 November 30, 2013 and December 22, 2016): 79,334 shares available to be issued under this plan.

4.                          Conversion of units of membership interests in Operating LLC not held by Parent:

 

·                  Upon redemption, the 5,324,090 units are convertible into, at Parent’s option, Parent common stock at a 10:1 ratio (or an aggregate of 532,409 shares of Parent common stock) or cash.

 

5.                          Convertible Senior Secured Promissory Note issued by Parent to the Edward E. Cohen IRA on August 28, 2015 in the aggregate principal amount of $4,385,628.

 

·                  Maturity Date 9/25/2019.

·                  Convertible at any time prior to maturity into shares of Parent common stock at a conversion price of $12.00 per share (or an aggregate of convertible into 365,469 shares of Parent common stock).

·                  Convertible into an additional 29,616 shares of Parent common stock as of October 31, 2018 assuming none of the interest under the note is paid to the holder thereof in cash.

 

6.                          Convertible Senior Secured Promissory Note issued by Parent to EBC 2013 Family Trust on September 25, 2013 in the aggregate principal amount of $2,400,000.

 

·                  Maturity Date 9/25/2019.

·                  Convertible at any time prior to maturity into shares of Parent common stock at a conversion price of $12.00 per share (or an aggregate of convertible into 200,000 shares of Parent common stock).

·                  Convertible into an additional 16,207 shares of Parent common stock as of October 31, 2018 assuming none of the interest under the note is paid to the holder thereof in cash.

 

Operating LLC:

 

Convertible Senior Secured Promissory Note issued by Operating LLC to DGC Family Fintech Trust on March 10, 2017 in the aggregate principal amount of $15,000,000, together with the related Securities Purchase Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), the DGC Family Fintech Trust, a trust established by Daniel G. Cohen, and solely with respect to certain provisions thereof, Parent (formerly Institutional Financial Markets, Inc.), and the related Pledge Agreement, dated as of March 10, 2017, by and among Operating LLC (formerly known as IFMI, LLC), in favor of the DGC Family Fintech Trust

 

·                  Maturity date 3/10/2022.

·                  Convertible at any time prior to maturity into units of membership interests in Operating LLC at a conversion price of $1.45 per unit (or an aggregate of 10,344,827 units).  Upon redemption, the 10,344,827 units are convertible into, at Parent’s option, Parent common stock at a 10:1 ratio (or an aggregate of 1,034,483 shares of Parent common stock) or cash.

 

11

 

Schedule 7(u)

Management and Consulting Arrangements

 

1.              Paymaster Agreement, dated 10/17/14, between Operating LLC and Broker/Dealer.

2.              Fourth Amended and Restated Expense Sharing Agreement, with Addendums, dated 10/15/14, 1/1/17, 1/1/18, respectively, among Broker/Dealer, Holdings LP and Operating LLC.

 

12

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