Document:

Loan and Trust Agreement

 Exhibit 4.1 
 Execution Version 
  

 
 LOAN AND TRUST AGREEMENT

 among 
 POLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY, 
 TAMPA ELECTRIC COMPANY

 and 
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
 As Trustee

 Dated as of November 15, 2010 
 And Providing for the Issue of 
 Polk County Industrial Development
Authority 
 Solid Waste Disposal Facility Revenue Refunding Bonds 

(Tampa Electric Company Project) 
 Series 2010 
  
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE I
	  	DEFINITIONS	  	 	1	  
			
	 Section 1.01.
	  	 Definitions
	  	 	1	  
	 Section 1.02.
	  	 Interpretation
	  	 	9	  
			
	 ARTICLE II
	  	THE ASSIGNMENT AND PLEDGE	  	 	10	  
			
	 Section 2.01.
	  	 The Assignment and Pledge of Revenues and Funds
	  	 	10	  
	 Section 2.02.
	  	 Pledge of First Mortgage Bonds
	  	 	10	  
	 Section 2.03.
	  	 Release of First Mortgage Bonds
	  	 	11	  
	 Section 2.04.
	  	 Further Assurances
	  	 	11	  
			
	 ARTICLE III
	  	CONDITIONS AND TERMS OF BONDS	  	 	11	  
			
	 Section 3.01.
	  	 Authorization and Issuance of Bonds; Dating
	  	 	11	  
	 Section 3.02.
	  	 Interest on the Bonds
	  	 	11	  
	 Section 3.03.
	  	 Undelivered Bonds
	  	 	17	  
	 Section 3.04.
	  	 Form of Bonds
	  	 	17	  
	 Section 3.05.
	  	 Execution and Authentication of Bonds
	  	 	18	  
	 Section 3.06.
	  	 Transfer and Exchange of Bonds
	  	 	18	  
	 Section 3.07.
	  	 Registration Books
	  	 	18	  
	 Section 3.08.
	  	 Temporary Bonds
	  	 	18	  
	 Section 3.09.
	  	 Bond Mutilated, Destroyed, Lost or Stolen
	  	 	19	  
	 Section 3.10.
	  	 Safekeeping and Cancellation of Bonds
	  	 	19	  
	 Section 3.11.
	  	 Special Agreement with Bondholders
	  	 	20	  
	 Section 3.12.
	  	 CUSIP Numbers
	  	 	20	  
			
	 ARTICLE IV
	  	REDEMPTION, MANDATORY TENDER AND REMARKETING	  	 	20	  
			
	 Section 4.01.
	  	 Redemption
	  	 	20	  
	 Section 4.02.
	  	 Optional Redemption Dates
	  	 	22	  
	 Section 4.03.
	  	 Selection of Bonds to Be Redeemed
	  	 	22	  
	 Section 4.04.
	  	 Redemption Notices
	  	 	22	  
	 Section 4.05.
	  	 Bonds Redeemed in Part
	  	 	23	  
	 Section 4.06.
	  	 Mandatory Tender
	  	 	24	  
	 Section 4.07.
	  	 Source of Funds for Purchase of Bonds
	  	 	25	  
	 Section 4.08.
	  	 Delivery of Bonds
	  	 	26	  
	 Section 4.09.
	  	 No Purchase or Sale after Event of Default
	  	 	26	  
	 Section 4.10.
	  	 Purchase Fund
	  	 	26	  
	 Section 4.11.
	  	 Disposition of Purchased Bonds
	  	 	26	  
	 Section 4.12.
	  	 Purchase of Bonds in Lieu of Redemption
	  	 	28	  
			
	 ARTICLE V
	  	FUNDS AND ACCOUNTS	  	 	29	  
			
	 Section 5.01.
	  	 Application of Proceeds
	  	 	29	  
	 Section 5.02.
	  	 Bond Fund
	  	 	29	  
	 Section 5.03.
	  	 First Mortgage Bond Fund
	  	 	30	  
	 Section 5.04.
	  	 Payment of Bonds
	  	 	30	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 5.05.
	  	 Payments by the Company
	  	 	30	  
	 Section 5.06.
	  	 Moneys Held in Trust; Unclaimed Funds
	  	 	31	  
	 Section 5.07.
	  	 Refunding Fund; Notice to Redeem Refunded Bonds
	  	 	32	  
	 Section 5.08.
	  	 Investments
	  	 	32	  
			
	 ARTICLE VI
	  	BOOK-ENTRY SYSTEM	  	 	33	  
			
	 Section 6.01.
	  	 Book-Entry System
	  	 	33	  
	 Section 6.02.
	  	 Book-Entry Tenders
	  	 	34	  
			
	 ARTICLE VII
	  	THE PROJECT	  	 	36	  
			
	 Section 7.01.
	  	 Maintenance and Modifications of Project by Company
	  	 	36	  
	 Section 7.02.
	  	 Removal of Portions of the Project
	  	 	36	  
	 Section 7.03.
	  	 Assignment, Leasing and Sale by the Company
	  	 	36	  
			
	 ARTICLE VIII
	  	THE COMPANY	  	 	37	  
			
	 Section 8.01.
	  	 Representations by the Company
	  	 	37	  
	 Section 8.02.
	  	 Access to the Project
	  	 	38	  
	 Section 8.03.
	  	 Company May Consolidate, Etc., Only on Certain Terms
	  	 	38	  
	 Section 8.04.
	  	 Indemnification Covenants
	  	 	38	  
	 Section 8.05.
	  	 Consent to Assignment of Contract Rights by the Authority
	  	 	39	  
	 Section 8.06.
	  	 Obligations of Company Hereunder Unconditional
	  	 	39	  
	 Section 8.07.
	  	 Arbitrage Bonds
	  	 	40	  
			
	 ARTICLE IX
	  	THE AUTHORITY	  	 	40	  
			
	 Section 9.01.
	  	 Representations by the Authority
	  	 	40	  
	 Section 9.02.
	  	 No Warranty of Condition or Suitability by the Authority
	  	 	41	  
	 Section 9.03.
	  	 Payment of Principal, Premium and Interest
	  	 	41	  
	 Section 9.04.
	  	 Authority To Use Best Efforts To Require Company To Make Payments
	  	 	41	  
	 Section 9.05.
	  	 Take Further Action
	  	 	41	  
	 Section 9.06.
	  	 No Disposition of Revenues
	  	 	41	  
	 Section 9.07.
	  	 No Extensions
	  	 	42	  
	 Section 9.08.
	  	 Covenant To Perform Further Acts
	  	 	42	  
	 Section 9.09.
	  	 Faithful Performance
	  	 	42	  
			
	 ARTICLE X
	  	DEFAULT AND LIMITATIONS OF LIABILITY	  	 	42	  
			
	 Section 10.01.
	  	 Events of Default
	  	 	42	  
	 Section 10.02.
	  	 Acceleration
	  	 	43	  
	 Section 10.03.
	  	 Other Remedies
	  	 	44	  
	 Section 10.04.
	  	 Waiver of Past Defaults
	  	 	44	  
	 Section 10.05.
	  	 Control by Majority
	  	 	45	  
	 Section 10.06.
	  	 Limitation on Suits
	  	 	45	  
	 Section 10.07.
	  	 Rights of Bondholders to Receive Payment
	  	 	45	  
	 Section 10.08.
	  	 Collection Suit by Trustee
	  	 	45	  

  
 -ii-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 10.09.
	  	 Trustee May File Proofs of Claim
	  	 	45	  
	 Section 10.10.
	  	 Priorities
	  	 	45	  
	 Section 10.11.
	  	 Undertaking for Costs
	  	 	45	  
	 Section 10.12.
	  	 Agreement to Pay Attorneys’ Fees and Expenses
	  	 	46	  
	 Section 10.13.
	  	 Remedies in Article X in Addition to Remedies in the First Mortgage
	  	 	46	  
			
	ARTICLE XI	  	THE TRUSTEE AND THE REMARKETING AGENT	  	 	46	  
			
	 Section 11.01.
	  	 Conditions of Trust
	  	 	46	  
	 Section 11.02.
	  	 Reimbursement of Administrative Expenses
	  	 	48	  
	 Section 11.03.
	  	 Notice of Defaults
	  	 	49	  
	 Section 11.04.
	  	 Trustee’s Right To Intervene; First Mortgage Bonds
	  	 	49	  
	 Section 11.05.
	  	 Successor Trustee Upon Merger, Etc
	  	 	50	  
	 Section 11.06.
	  	 Resignation of Trustee
	  	 	50	  
	 Section 11.07.
	  	 Removal of Trustee
	  	 	50	  
	 Section 11.08.
	  	 Appointments of Successor Trustee
	  	 	51	  
	 Section 11.09.
	  	 Acceptance by Successor Trustee
	  	 	51	  
	 Section 11.10.
	  	 Reliance Upon Instruments
	  	 	51	  
	 Section 11.11.
	  	 Former Trustee No Longer Custodian or Paying Agent
	  	 	51	  
	 Section 11.12.
	  	 Directions From Company; Company May Perform
	  	 	52	  
	 Section 11.13.
	  	 Trading in Bonds by Trustee, Paying Agent, Tender Agent or Registrar
	  	 	52	  
	 Section 11.14.
	  	 Appointment of Separate Paying Agent and/or Tender Agent
	  	 	52	  
	 Section 11.15.
	  	 Entities Serving in More Than One Capacity
	  	 	52	  
	 Section 11.16.
	  	 Duties of Remarketing Agent
	  	 	53	  
	 Section 11.17.
	  	 Eligibility of Remarketing Agent
	  	 	53	  
	 Section 11.18.
	  	 Replacement of Remarketing Agent
	  	 	53	  
	 Section 11.19.
	  	 Compensation of Remarketing Agent
	  	 	53	  
	 Section 11.20.
	  	 Successor Remarketing Agent
	  	 	53	  
			
	ARTICLE XII	  	AMENDMENT OF OR SUPPLEMENT TO THE AGREEMENT	  	 	53	  
			
	 Section 12.01.
	  	 Supplemental Agreements Without Notice to or Consent of Bondholders
	  	 	53	  
	 Section 12.02.
	  	 Supplemental Agreements Requiring Consent of Bondholders
	  	 	55	  
	 Section 12.03.
	  	 Reliance on Opinion of Counsel; Favorable Opinion of Tax Counsel Required
	  	 	55	  
			
	ARTICLE XIII	  	DEFEASANCE	  	 	56	  
			
	 Section 13.01.
	  	 Defeasance
	  	 	56	  
	 Section 13.02.
	  	 Bonds Deemed to Have Been Paid
	  	 	56	  
	 Section 13.03.
	  	 Moneys Held for Particular Bonds
	  	 	57	  
			
	ARTICLE XIV	  	MISCELLANEOUS	  	 	58	  
			
	 Section 14.01.
	  	 Benefits of This Agreement Limited to Parties
	  	 	58	  

  
 -iii-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 14.02.
	 	 No Recourse Against Authority
	  	 	58	  
	 Section 14.03.
	 	 Successor Deemed Included in All References to Predecessor
	  	 	58	  
	 Section 14.04.
	 	 Extent of Covenants; No Personal Liability
	  	 	58	  
	 Section 14.05.
	 	 Notices
	  	 	59	  
	 Section 14.06.
	 	 Notices to Rating Agencies
	  	 	60	  
	 Section 14.07.
	 	 Funds
	  	 	60	  
	 Section 14.08.
	 	 Severability
	  	 	60	  
	 Section 14.09.
	 	 Florida Law to Govern
	  	 	60	  
	 Section 14.10.
	 	 Instruments of Bondholders
	  	 	61	  
	 Section 14.11.
	 	 Priority of this Agreement
	  	 	61	  
	 Section 14.12.
	 	 Binding Effect
	  	 	61	  
	 Section 14.13.
	 	 Payments Due or Other Actions on Nonbusiness Days
	  	 	61	  
	 Section 14.14.
	 	 Counterparts
	  	 	61	  
	 Section 14.15.
	 	 Waiver of Jury Trial
	  	 	62	  
	 Section 14.16.
	 	 Force Majeure
	  	 	62	  
			
	EXHIBIT A	 	DESCRIPTION OF THE PROJECT	  	 	A-1	  
			
	EXHIBIT B	 	FORM OF BOND	  	 	B-1	  

  
 -iv-

 LOAN AND TRUST AGREEMENT 

THIS LOAN AND TRUST AGREEMENT dated as of November 15, 2010, among POLK COUNTRY INDUSTRIAL DEVELOPMENT AUTHORITY, a public body
corporate and politic and a public instrumentality created pursuant to the laws of the State of Florida (the “Authority”), TAMPA ELECTRIC COMPANY, a Florida corporation (the “Company”) and THE BANK OF NEW YORK
MELLON TRUST COMPANY, N.A., as trustee, a national banking association duly organized and existing under the laws of the United States of America and having a designated corporate trust office in the City of Jacksonville, Florida, which is
authorized under such laws to exercise corporate trust powers and is subject to examination by federal authorities (the “Trustee”). 
 RECITALS 
 This Agreement provides for the following transactions:

 (a) the Authority’s issue of Bonds for the purpose of refunding bonds previously issued to refinance bonds issued to
finance the Project; 
 (b) the Company’s repayment of the loan of Bond proceeds from the Authority through payment to the
Trustee of all amounts necessary to pay principal, premium, if any, and interest on the Bonds issued by the Authority; and 

(c) the Authority’s assignment to the Trustee in trust for the benefit and security of the Bondholders of the Revenues to be
received hereunder and the rights to receive the same and the security therefor. 
 In consideration of the mutual agreements
contained in this Agreement and other good and valuable consideration, the receipt of which is hereby acknowledged, the Authority, the Company and the Trustee agree as set forth herein for their own benefit and for the benefit of the Bondholders.

 ARTICLE I 
 DEFINITIONS 
 Section 1.01. Definitions. Unless the
context otherwise requires, the terms defined in this Section shall for all purposes hereof and of any amendment hereof or supplement hereto and of the Bonds and of any certificate, opinion, request or other document mentioned herein or therein
have the meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein: 
 “Act” means the Constitution of the State of Florida, Chapter 69-1510, Laws of Florida, as amended, the Florida Industrial Development Financing Act, Parts II and III of Chapter 159,
Florida Statutes, and other applicable provisions of law. 

 “Additional Redemption Notice” is defined in Section 4.04(b).

 “Additional Tender Notice” is defined in Section 4.06(c). 

“Administrative Expenses” means the direct, out-of-pocket expenses incurred by the Authority pursuant to this Agreement
and reasonable in amount and the compensation of the Trustee, any paying agent or registrar and the direct, out-of-pocket expenses of the Trustee, including fees and disbursements of its counsel, incurred by the Trustee and reasonable in amount.

 “Agreement” means this Loan and Trust Agreement, among the Authority, the Company and the Trustee.

 “Alternate Rate” means a rate per annum equal to (a) the BMA Municipal Swap Index of Municipal Market
Data, formerly the PSA Municipal Swap Index (as such term is defined in the 1992 ISDA U.S. Municipal Counterparty Definitions) (the “BMA Rate”) most recently available as of the date of determination, or (b) if such index is no
longer available, or if the BMA Rate is no longer published, the Kenny Index (as such term is defined in the 1992 ISDA U.S. Municipal Counterparty Definitions), or if neither the BMA Rate nor the Kenny Index is published, the index determined to
equal the prevailing rate determined by the Remarketing Agent for tax exempt state and local government bonds meeting criteria determined in good faith by the Remarketing Agent to be comparable under the circumstances to the criteria used by the
Bond Market Association to determine the BMA Rate just prior to when the Bond Market Association stopped publishing the BMA Rate. 
 “Authority” means the Polk County Industrial Development Authority. 
 “Authority Representative” means the Chairman, Vice Chairman, the Secretary or Assistant Secretary, and when used with reference to an act or document of the Authority for purposes of
this Agreement also means any other person authorized to perform the act or execute the document by a written instrument furnished to the Trustee containing the specimen signature of such person and signed on behalf of the Authority by any of its
officers. 
 “Beneficial Owner” means the purchaser of a beneficial interest in the Bonds when the Bonds are
held by the Securities Depository in the Book-Entry System, and otherwise means a Bondholder. 
 “Bondholder”
or “holder” means the registered owner of any Bond. 
 “Bond Fund” means the Bond Fund created
in Section 5.02. 
 “Bonds” means the $75,000,000 aggregate principal amount of the Bonds issued pursuant
hereto that are authenticated and delivered by the Trustee under and pursuant to ARTICLE III hereof. 
 “Bond Service
Charges” means, for any period or time, the principal of, premium, if any, and interest due on the Bonds for that period or payable at that time whether due at maturity or upon acceleration or redemption or pursuant to any mandatory sinking
fund requirements or otherwise. 

  
 2 

 “Book-Entry System” means the system maintained by the Securities
Depository described in Section 6.01. 
 “Business Day” means any day other than (i) a Saturday or
Sunday, (ii) a day on which commercial banks in New York, New York or the city in which the designated corporate trust office of the Trustee or the Remarketing Agent is located, are required or authorized by law or regulation to close, or
(iii) a day on which the New York Stock Exchange is closed. 
 “Code” means the Internal Revenue Code of
1986, as amended from time to time. References to the Code and Sections of the Code include relevant applicable regulations and proposed regulations thereunder and under the Code, and any successor provisions to those sections, regulations or
proposed regulations and, in addition, all revenue rulings, announcements, notices, procedures and judicial determinations under the foregoing applicable to the Bonds. 
 “Commercial Paper Mode” means each period of time, comprised of Commercial Paper Periods, during which Commercial Paper Rates are in effect. 

“Commercial Paper Period” means, with respect to any Bond, each period set under Section 3.02(a)(3). 

“Commercial Paper Rate” means an interest rate on each Bond set under Section 3.02(a)(3). 

“Company” means Tampa Electric Company, a Florida corporation, and its successors and assigns as permitted under this
Agreement. 
 “Company-Held Bonds” has the meaning set forth in Section 4.08(b). 

“Company Purchase Account” means the account of that name created pursuant to Section 4.10. 

“Company Representative” means a person at the time designated to act on behalf of the Company for purposes of this
Agreement by a written instrument furnished to the Trustee containing the specimen signature of such person and signed on behalf of the Company by any of the President, any Vice President, Treasurer or Assistant Treasurer of the Company and any
other person designated by one of the foregoing officers. 
 “Conversion Notice” is defined in
Section 3.02(b)(1). 
 “Corporation” means and includes corporations, partnerships, including limited
partnerships and limited liability partnerships, joint ventures, associations, companies, limited liability companies, joint-stock companies and business trusts. 
 “Daily Rate” means an interest rate on the Bonds set under Section 3.02(a)(1). 

  
 3 

 “Determination Method” is defined in Section 3.02(a). 

“DTC” means The Depository Trust Company, New York, New York. 

“Event of Default” means any occurrence or event specified in and defined by Section 10.01. 

“Favorable Opinion of Tax Counsel” means an Opinion of Tax Counsel addressed to the Authority and to the Trustee to the
effect that the action proposed to be taken is permitted under the Act and by this Agreement and will not adversely affect any exclusion from gross income for federal income tax purposes of interest on the Bonds. 

“First Mortgage” means the Indenture of Mortgage, dated as of August 1, 1946, as heretofore and hereafter
supplemented and amended, currently by and between the Company and U.S. Bank National Association, as trustee. 
 “First
Mortgage Bond Fund” means the fund established with the Trustee pursuant to Section 5.03. 
 “First
Mortgage Bonds” means the first mortgage bonds to be created by a supplemental indenture to the First Mortgage and, at the option of the Company, delivered to the Trustee pursuant to Section 2.02 as security for the Company’s
obligation to pay the principal of, premium, if any, and interest on the Bonds. 
 “Fitch” means Fitch, Inc.
and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to refer to any other nationally recognized
securities rating agency designated by the Company, with written notice to the Trustee and the Authority. 

“Funds” means, collectively, the Bond Fund, the Refunding Fund and the First Mortgage Bond Fund created pursuant hereto.

 “Government Obligations” means any of the securities described in paragraph (a) of the definition of
the term “Permitted Investments.” 
 “Indemnified Persons” is defined in Section 8.04(a).

 “Initial Period” means the period from the date the Bonds are issued to and including March 1, 2011.

 “Interest Account” means the account created pursuant to Section 5.02. 

“Interest Payment Date” is defined in the form of the Bonds appearing in Exhibit B hereto. 

“Interest Period” is defined in the form of the Bonds appearing in Exhibit B hereto. 

“Maturity Date” means the stated maturity of the Bonds as set forth in Section 3.01 

  
 4 

 “Maximum Rate” means, on any day, the lesser of (i) the maximum
interest rate permitted by law, and (ii) 14% per annum. 
 “Moody’s” means Moody’s
Investors Service, Inc., a corporation organized and existing under the laws of the State of Delaware, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities
rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Company, with written notice to the Trustee and the Authority. 

“Opinion of Counsel” means a written opinion of counsel selected by the Company who is acceptable to the Authority. Such
counsel may be an employee of or counsel to the Authority or the Company. 
 “Opinion of Tax Counsel” means an
Opinion of Counsel by counsel of nationally recognized standing in matters relating to the exclusion of interest from gross income on obligations issued by or on behalf of states and their political subdivisions. 

“Outstanding” or “Bonds Outstanding” when used with reference to Bonds means all Bonds which have been
authenticated and delivered by the Trustee under this Agreement, except the following: 
 (a) Bonds canceled or purchased by or
delivered to the Trustee for cancellation. 
 (b) Bonds that have become due (at maturity or on redemption, acceleration or
otherwise) and for the payment, including interest accrued to the due date, of which sufficient moneys are held by the Trustee. 

(c) Bonds paid or deemed to have been paid within the meaning of Section 13.02. 

(d) Bonds in lieu of which others have been authenticated under Section 3.06, Section 3.08 or Section 3.09. 

Bonds purchased pursuant to tenders and not delivered to the Trustee for payment are not outstanding, but there will be outstanding Bonds
authenticated and delivered in lieu of such undelivered Bonds as provided in Section 3.03. 

“Participant” means one of the entities which deposit securities, directly or indirectly, in the Book-Entry System.

 “Permitted Investments” means the following investments for the following purposes: 

(a) The following obligations may be used as Permitted Investments for all purposes, including defeasance investments in refunding escrow
accounts: 
  

	 	(1)	Cash (insured at all times by the Federal Deposit Insurance Corporation), and 

  
 5 

  

	 	(2)	Direct non-callable obligations of the United States of America and securities fully and unconditionally guaranteed as to the timely payment of principal and interest
by the United States of America, to which direct obligation or guarantee the full faith and credit of the United States of America has been pledged, Refcorp interest strips, CATS, TIGRS, STRPS, or defeased municipal bonds rated AAA by S&P or Aaa
by Moody’s (or any combination of the foregoing) 

 Any security used for defeasance must provide for the
timely payment of principal and interest and cannot be callable or prepayable prior to maturity or earlier redemption of the rated debt (excluding securities that do not have a fixed par value and/or whose terms do not promise a fixed dollar amount
at maturity or call date). 
 (b) The following obligations may be used as Permitted Investments for all purposes other than
defeasance investments in refunding escrow accounts: 
 (1) Obligations of any of the following federal agencies which
obligations represent the full faith and credit of the United States of America, including: Export-Import Bank, Rural Economic Community Development Administration, U.S. Maritime Administration, Small Business Administration, U.S. Department of
Housing & Urban Development (PHAs), Federal Housing Administration, and Federal Financing Bank; 
 (2) Direct
obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America: senior debt obligations issued by the Federal National Mortgage Association (FNMA) or
Federal Home Loan Mortgage Corporation (FHLMC), obligations of the Resolution Funding Corporation (REFCORP), and senior debt obligations of the Federal Home Loan Bank System; 
 (3) U.S. dollar denominated deposit accounts, federal funds and bankers’ acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of
purchase of “P-1” by Moody’s and “A-1” or “A-1+” by S&P and maturing not more than 360 calendar days after the date of purchase (ratings on holding companies are not considered as the rating of the bank);

 (4) Commercial paper which is rated at the time of purchase in the single highest classification, “P-1” by
Moody’s and “A-1+” by S&P and which matures not more than 270 calendar days after the date of purchase; 

(5) Investments in a money market fund rated “AAAm” or “AAAm-G” or better by S&P, including money market funds of
the Trustee which satisfy such requirements; 
 (6) Pre-refunded Municipal Obligations defined as follows: any bonds or other
obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions
have been given by the obligor to call on the date specified in the notice, and 

  
 6 

 (A) which are rated, based on an irrevocable escrow account or fund (the
“escrow”), in the highest rating category of Moody’s or S&P or any successors thereto; or 
 (B) (i) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph (a)(2) above, which escrow may be
applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the Maturity Date or Maturity Dates thereof or the specified redemption date or dates pursuant to such irrevocable
instructions, as appropriate, and (ii) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other
obligations described in this paragraph on the Maturity Date or Maturity Dates specified in the irrevocable instructions referred to above, as appropriate; and 
 (7) Municipal Obligations rated “Aaa/AAA” or general obligations of States with a rating of “A2/A” or higher by both Moody’s and S&P. 

(c) The value of the above investments shall be determined as follows: 

(1) For the purpose of determining the amount in any Fund, all Permitted Investments credited to such fund shall be valued at fair market
value. The Trustee shall determine the fair market value based on accepted industry standards and from accepted industry providers. Accepted industry providers shall include but are not limited to pricing services provided by Financial Times
Interactive Data Corporation, Merrill Lynch. Citigroup or JPMorgan Securities. 
 (2) As to certificates of deposit and
bankers’ acceptances, the value shall equal the face amount thereof, plus accrued interest thereon. 
 (3) As to any
investment not specified above, the value thereof shall be established by agreement between the Company and the Trustee. 

“Person” means any individual, Corporation, trust or government or any agency or political subdivision thereof.

 “Principal Account” means the account created pursuant to Section 5.02. 

“Principal Payment Date” means any date upon which the principal amount of any Bond is due hereunder, including the
Maturity Date, any Redemption Date, or the date to which the maturity of the Bonds is accelerated pursuant to the terms hereof or otherwise. 
 “Project” means, collectively, certain solid waste disposal facilities of the Project Unit including any structures, machinery, fixtures, improvements and equipment, all as described in
Exhibit A attached hereto, as the same may be amended from time to time, together with all additions thereto and substitutions therefor, less any deletions therefrom as they may at any time exist. 

  
 7 

 “Project Unit” means the integrated coal gasification combined cycle power
plant owned by the Company and located in southwest Polk County, and related support facilities, as they may at any time exist. 

“Purchase Fund” means the fund created pursuant to Section 4.10. 

“Purchase Price” means 100% of the principal amount of the Bonds being purchased plus interest accrued, if any, to (but
excluding) the purchase date. 
 “Record Date” is defined in the form of the Bond appearing as Exhibit B
hereto. 
 “Redemption Account” means the account created pursuant to Section 5.02. 

“Redemption Date” means the date fixed for redemption of Bonds subject to redemption in any notice of redemption given
in accordance with the terms hereof. 
 “Redemption Price” means an amount equal to the principal of, and
premium, if any, and accrued interest to the Redemption Date, if any, on the Bonds to be redeemed. 
 “Refunded
Bonds” means $75,000,000 in principal amount of Polk County Industrial Development Authority Solid Waste Disposal Facility Revenue Refunding Bonds (Tampa Electric Company Project), Series 2007. 

“Refunded Bonds Agreement” means the Loan and Trust Agreement dated as of May 1, 2007 among the Authority, the
Company and The Bank of New York Mellon Trust Company, N.A., pursuant to which the Refunded Bonds were issued. 

“Refunded Bonds Trustee” means the Trustee under the Refunded Bonds Agreement. 

“Refunding Fund” means the fund by that name created in Section 5.07. 

“Remarketing Agent” means the Person appointed as Remarketing Agent pursuant to Section 11.17, and its successors
under this Agreement. The initial Remarketing Agent shall be J.P. Morgan Securities LLC. 
 “Remarketing Proceeds
Account” means the account of that name created pursuant to Section 4.10. 
 “Responsible
Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant treasurer, 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 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 Agreement. 

“Revenues” means and includes all payments by or on behalf of the Company to or for the account of the Authority under
this Agreement and all other revenues derived by the 

  
 8 

 
Authority from or in connection with this Agreement, including the income thereon and the investment thereof, if any, and any moneys received on the First Mortgage Bonds but not including
payments with respect to the indemnification or reimbursement of certain expenses of the Authority under Section 5.05(b)(1), Section 8.04 and Section 10.12 of this Agreement or under any other guaranty or indemnification agreement.
The term “Revenues” does not include any moneys or investments in the Purchase Fund. 

“S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies and its successors and assigns,
and, if such division or corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Company, with written notice to the Trustee and the Authority. 
 “Securities Depository”
means DTC or its nominee, and its successors and assigns, or any successor appointed under Section 6.01. 

“State” means the State of Florida. 
 “Term Interest Rate” means an interest rate on the Bonds set under Section 3.02(a)(4). 
 “Term Interest Rate Period” means any period as defined in Section 3.02(a)(4) which ends either on the day before the Maturity Date or a day which next precedes a Business Day and is
at least 30 days long, and which period must be the same for all Bonds. 
 “Trustee” means The Bank of New York
Mellon Trust Company, N.A., a national banking association, or any other bank or trust company duly incorporated and existing under and by virtue of the laws of any state or of the United States of America, which may be substituted in its place as
provided in Section 11.05 or Section 11.08. 
 “Underwriter” means, collectively, J.P. Morgan
Securities LLC and SunTrust Robinson Humphrey, Inc. and their respective successors and assigns. 
 “Weekly
Rate” means an interest rate on the Bonds set under Section 3.02(a). 
 Section 1.02.
Interpretation. 
 (a) In this Agreement, unless the context otherwise requires: 

(1) The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar
terms, as used in this Agreement, refer to this Agreement, and the term “hereafter” shall mean after, and the term “heretofore” shall mean before, the date of this Agreement; 

(2) An accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

 (3) References to Articles and Sections are to the Articles and Sections of this Agreement, except as expressly stated
otherwise; 

  
 9 

 (4) The singular form of any word, including the terms defined in Section 1.01,
includes the plural, and vice versa, and a word of any gender includes all genders; 
 (5) Words importing persons shall include
firms, associations, partnerships (including limited partnerships), trusts, Corporations and other legal entities, including public bodies, as well as natural persons; and 
 (6) Any headings preceding the text of the several Articles and Sections of this Agreement, and any index or table of contents or marginal notes appended to copies hereof, shall be solely for convenience
of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. 

(b) Whenever in this Agreement, the Authority, the Company, the Trustee or the Remarketing Agent is named or referred to, it shall
include, and shall be deemed to include, its respective successors and assigns whether so expressed or not. All of the covenants, stipulations, obligations and agreements by or on behalf of, and other provisions for the benefit of, the Authority,
the Company, the Trustee or the Remarketing Agent contained in this Agreement shall bind and inure to the benefit of such respective successors and assigns and shall bind and inure to the benefit of any officer, board, commission, authority, agency
or instrumentality to whom or to which there shall be transferred by or in accordance with law any right, power or duty of the Authority or of its successors or assigns, the possession of which is necessary or appropriate in order to comply with any
such covenants, stipulations, obligations, agreements or other provisions of this Agreement. 
 ARTICLE II 

THE ASSIGNMENT AND PLEDGE 
 Section 2.01. The Assignment and Pledge of Revenues and Funds. The Authority assigns and pledges to the Trustee in trust upon the terms hereof (a) all Revenues to be
received from the Company or derived from any security provided hereunder, and (b) all rights to receive such Revenues and the proceeds of such rights, and all other rights and interests of the Authority provided hereunder, provided,
however, that this assignment and pledge does not include the rights of the Authority pursuant to Section 5.05(b)(1), Section 8.04 and Section 10.12. 
 Section 2.02. Pledge of First Mortgage Bonds. 
 (a) In
order to provide collateral security for the Company’s obligations to make payments of principal, premium, if any, and interest on the Bonds, as required under this Agreement, the Company may elect to issue and deliver to the Trustee a series
of First Mortgage Bonds (i) registered in the name of the Trustee, (ii) which shall have the same stated rate or rates of interest prior to maturity, payable at the same times, and (iii) which shall become due in the same principal
amount or amounts, either by redemption, through operation of a sinking fund or by maturity, on the same date or dates, as the Bonds. The First Mortgage Bonds shall be held subject to the terms and provisions of this Agreement and the First
Mortgage. 

  
 10 

 (b) To exercise the election described in Section 2.02(a), the Company shall, not less
than 14 days prior to the proposed date of delivery of the First Mortgage Bonds (i) give to the Authority, the Trustee and each nationally recognized securities rating agency which then rates the Bonds written notice that shall designate the
date on which such series of First Mortgage Bonds shall be delivered and (ii) deliver to the Trustee and the Authority an Opinion of Tax Counsel to the effect that such election and the delivery of such series of First Mortgage Bonds will not
cause the interest on the Bonds to become includable in gross income for federal income tax purposes. 

Section 2.03. Release of First Mortgage Bonds. To the extent that (i) Bonds have been paid or become due
and sufficient moneys are held by the Trustee in trust for the payment thereof, (ii) Bonds are deemed to have been paid in accordance with Section 13.01 and (iii) Bonds (other than Bonds which have been redeemed or called for
redemption) have been delivered to, or have been acquired by, the Trustee and canceled and other Bonds of the same series shall not be issuable in lieu thereof, in substitution therefor, in exchange therefor or upon registration of transfer thereof,
the obligation of the Company to make payments with respect to the principal, premium, if any, and interest on the First Mortgage Bonds shall be satisfied and discharged and the Trustee shall release and surrender to the Company First Mortgage Bonds
in an aggregate principal amount equal to the aggregate principal amount of such Bonds, bearing the same rate or rates of interest as such Bonds and becoming due, either by redemption through operation of a sinking fund or by maturity, on the same
date or dates as such Bonds. 
 Section 2.04. Further Assurances. The Company, the Authority and the
Trustee shall from time to time execute, deliver and register, record and file such instruments as necessary or as the Authority or the Trustee may reasonably require to confirm, perfect or maintain the security created or intended to be created
hereby. 
 ARTICLE III 
 CONDITIONS AND TERMS OF BONDS 
 Section 3.01. Authorization and
Issuance of Bonds; Dating. There is hereby authorized the issuance of the Bonds in the aggregate principal amount of Seventy-Five Million Dollars ($75,000,000) to be designated as “Polk County Industrial Development Authority Solid
Waste Disposal Facility Revenue Refunding Bonds (Tampa Electric Company Project), Series 2010”. The Bonds shall mature on December 1, 2030 (the “Maturity Date”). All Bonds will be dated the date of original issuance and
delivery, will bear interest from that date and shall mature, subject to prior redemption or mandatory tender, on the Maturity Date. The Bonds are special obligations of the Authority and shall be payable solely from the Revenues. 

The Trustee is hereby authorized to authenticate and to deliver the Bonds only upon (i) written direction of the Authority, and
(ii) receipt of the proceeds of sale thereof in the amounts set forth in the written direction of the Authority. 

Section 3.02. Interest on the Bonds. Interest on the Bonds will be payable as provided in the Bonds and in this
Section. The Determination Method may be changed by the Company as described in paragraph (b) below. The methods of determining the various interest rates are as 

  
 11 

 
provided in paragraph (a) below, provided that no interest rate set or determined by the Remarketing Agent under (a)(1), (2), (3) or (4), or an Alternate Rate determined under
(a)(5), shall exceed the Maximum Rate. 
 (a) Interest Rate Determination Methods. In accordance with the
notification requirements described herein, the Company shall determine the applicable interest rate determination method (each a “Determination Method”) on the Bonds. The interest rate on the Bonds shall be determined by one of the
following Determination Methods. 
 (1) Daily Rate. When interest on the Bonds is payable at a Daily Rate, the
Remarketing Agent will set a Daily Rate on or before 10:00 a.m., New York City time, on each Business Day for that Business Day. Each Daily Rate will be the minimum rate necessary (as determined by the Remarketing Agent based on the examination of
tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then-prevailing market conditions) for the Remarketing Agent to sell the Bonds on the day the rate is set at their principal amount
(without regard to accrued interest). The Daily Rate for any non-Business Day will be the rate for the last day for which a rate was set. 
 (2) Weekly Rate. When interest on the Bonds is payable at a Weekly Rate, the Remarketing Agent will set a Weekly Rate on or before 5:00 p.m., New York City time, on the last Business Day
before the commencement of a period during which the Bonds bear interest at a Weekly Rate and on each Wednesday thereafter so long as interest on the Bonds is to be payable at a Weekly Rate or, if any Wednesday is not a Business Day, on the next
preceding Business Day. Each Weekly Rate will be the minimum rate necessary (as determined by the Remarketing Agent based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or
traded under then prevailing market conditions) for the Remarketing Agent to sell the Bonds on the date the rate is set at their principal amount (without regard to accrued interest). Thereafter, each Weekly Rate shall apply to (i) the period
beginning on the Thursday after the Weekly Rate is set and ending on the following Wednesday or, if earlier, ending on the day before the effective date of a new method of determining the interest rate on the Bonds or (ii) the period beginning
on the effective date of the change to a Weekly Rate and ending on the next Wednesday. 
 (3) Commercial Paper
Rate. During a Commercial Paper Mode, each Bond will bear interest during the Commercial Paper Period for such Bond at the Commercial Paper Rate for such Bond. Different Commercial Paper Periods may apply to different Bonds at any time and
from time to time. Except as otherwise described in this subparagraph (3), the Commercial Paper Period and Commercial Paper Rate for each Bond will be determined by the Remarketing Agent no later than 1:00 p.m., New York City time, on the first day
of each Commercial Paper Period. 
 (i) Determination of Commercial Paper Periods. Subject to
Section 3.02(b)(2)(vii), each Commercial Paper Period will be a period of at least 1 day and not more than 270 days, determined by the Remarketing Agent to be the period which, together with all other Commercial Paper Periods for all Bonds then
outstanding, will, in the judgment of the Remarketing Agent, result in the lowest overall interest expense on the Bonds over the next 270 days. Each Commercial Paper Period will end on either the day before a Business Day or on the

  
 12 

 
day before the Maturity Date for such Bond. However, any Bond purchased on behalf of the Company and remaining unsold by the Remarketing Agent as of the close of business on the first day of the
Commercial Paper Period for that Bond will have a Commercial Paper Period of 1 day or, if that Commercial Paper Period would not end on a day before a Business Day, a Commercial Paper Period of the shortest possible duration greater than 1 day
ending on a day before a Business Day. 
 In determining the number of days in each Commercial Paper Period, the Remarketing
Agent shall take into account the following factors: (I) existing short-term tax-exempt market rates and indices of such short-term rates, (II) the existing market supply and demand for short-term tax-exempt securities, (III) existing yield
curves for short-term and long-term tax-exempt securities for obligations of credit quality comparable to the Bonds, (IV) general economic conditions, (V) industry economic and financial conditions that may affect or be relevant to the Bonds,
(VI) the number of days in other Commercial Paper Periods applicable to the Bonds and (VII) such other facts, circumstances and conditions as the Remarketing Agent, in its sole discretion, shall determine to be relevant. 

(ii) Determination of Commercial Paper Rates. The Commercial Paper Rate for each Commercial Paper Period for each Bond
shall be the minimum rate necessary (as determined by the Remarketing Agent based on the examination of tax-exempt obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then-prevailing market
conditions) for the Remarketing Agent to sell such Bond on the date and at the time of such determination at its principal amount (without regard to accrued interest). 
 (4) Term Interest Rate. The Remarketing Agent will set a Term Interest Rate on a date not later than the Business Day before the beginning of any period determined by the Company prior to
the effective date of the Term Interest Rate (a “Term Interest Rate Period”) in which interest on any of the Bonds will be payable at a Term Interest Rate. The last day of each such Term Interest Rate Period shall be determined by
the Company in accordance with Section 3.02(b)(1). Each Term Interest Rate will be the minimum rate necessary (as determined by the Remarketing Agent with respect to any Term Interest Rate Period based on the examination of tax-exempt
obligations comparable to the Bonds known by the Remarketing Agent to have been priced or traded under then-prevailing market conditions) for the Remarketing Agent to sell the Bonds for delivery on the effective date of the Term Interest Rate at
their principal amount (without regard to accrued interest). 
 The Remarketing Agent shall use its best efforts to cause the
Bonds in a Term Interest Rate required to be remarketed on the date set for mandatory tender for such Bonds pursuant to “Mandatory Tender at Beginning of a New Term Interest Rate Period” or “Mandatory Tender Upon a Change in
the Determination Method” under paragraph 7 in the form of the Bonds, to be remarketed (in such Determination Method or Methods) on the first date thereafter at which time all such Bonds can be sold at par, at a rate not exceeding the
Maximum Rate; provided, that no failure to remarket for any reason shall excuse the Event of Default arising from failure to purchase all of the Bonds on any date set for mandatory tender. 

  
 13 

 (5) Failure of Remarketing Agent to Announce Interest Rates on the Bonds. If
the appropriate interest rate or Commercial Paper Period is not or cannot be determined for any reason, the method of determining interest on the Bonds shall be as provided in this Section 3.02(a)(5). If the Bonds bear interest at the Daily
Rate or the Weekly Rate, interest will be payable at the Alternate Rate, and Bonds bearing interest at the Commercial Paper Rate or the Term Interest Rate shall be automatically converted to the Weekly Rate (without the necessity of complying with
the requirements of Section 3.02(b)), and if the Weekly Rate cannot be determined, interest thereon will be payable at the Alternate Rate, until such time as the Determination Method can be changed in accordance with Section 3.02(b);
provided, that no failure to determine an interest rate for any reason shall excuse the Event of Default arising from failure to purchase all of the Bonds on any date set for mandatory tender. The Trustee shall promptly notify the Bondholders of any
such automatic change as set forth in Section 4.06(b). 
 While Bonds are in a Commercial Paper Mode, during any
transition period caused by an automatic conversion of such Bonds to a Weekly Rate in accordance with this Subsection (5), Bonds bearing interest at a Weekly Rate and Bonds bearing interest at a Commercial Paper Rate, as applicable, shall be
governed by the provisions of this Agreement applicable to such methods of determining interest on the Bonds. 
 (b)
Initial Interest Rate Determination Method; Change in Interest Rate Determination Method. 
 (1) The Bonds shall
bear interest for the Initial Period at a Term Interest Rate. The Term Interest Rate for the Initial Period shall be determined in accordance with this Agreement on or prior to the date of delivery of the Bonds by the Underwriter as the minimum rate
required to sell the Bonds on the date of issuance at a Purchase Price of par. Interest shall accrue from one Interest Payment Date to, but not including, the next Interest Payment Date. Following the Initial Period, the Bonds shall bear interest at
such rate as determined in accordance with this Agreement. The Company may change the Determination Method, of all but not part of the Bonds, from time to time by notifying, as applicable, the Authority, the Trustee and the Remarketing Agent. Such
notice (a “Conversion Notice”) shall contain the effective date of such change. The Conversion Notice must be accompanied by a Favorable Opinion of Tax Counsel addressed to the Authority and the Trustee. If the Company’s
Conversion Notice complies with this paragraph, and if the Company shall deliver to the Trustee and the Authority a confirming Favorable Opinion of Tax Counsel on the effective date as specified in the Conversion Notice, the interest rate on the
Bonds will be determined on the basis of the new rate on the effective date specified by the Company until there is another change as provided in this Section. 
 If, 30 days before the end of a Term Interest Rate Period, the Company has not provided for the next interest rate period, a new Term Interest Rate Period of the same duration will follow (or if shorter,
a Term Interest Rate Period ending on the day before the Maturity Date for the Bonds). 
 When one Term Interest Rate Period
follows another, all provisions of this Agreement applying to a change in the Determination Method will apply, except: 
 (A) the mandatory tender described under “Mandatory Tender Upon a Change in the Determination Method” in the Bonds will not apply, but the mandatory tender described under
“Mandatory Tender at Beginning of a New Term Interest Rate Period” in the Bonds will apply; 

  
 14 

 (B) the Company will not be required to deliver a Favorable Opinion of Tax
Counsel if a new Term Interest Rate Period begins as a result of the Company failing to provide for the next interest rate period; and 
 (C) the Company will not be required to deliver a Favorable Opinion of Tax Counsel if (i) the Company has previously designated a series of successive Term Interest Rate Periods which, together with
the current Term Interest Rate Period, are substantially equal in length, (ii) a Favorable Opinion of Tax Counsel addressed to the Trustee was delivered before the first such Term Interest Rate Period in that series which applies to each such
successive Term Interest Rate Period and (iii) no other change in the security for the Bonds or in this Agreement or the terms of the Bonds is made which is effective as of, or agreed to in connection with, the effective date of such subsequent
Term Interest Rate Period. 
 (2) Limitations. Any change in the Determination Method pursuant to paragraph
(1) above must comply with the following: 
 (i) the effective date of a change (or each effective date in the case of a
change from a Commercial Paper Mode) shall be a Business Day which is at least 15 days (30 days if a Term Interest Rate longer than six months is then in effect and the effective date is before the day after the last day of a Term Interest Rate
Period) after receipt by the Trustee of the Company’s Conversion Notice; 
 (ii) if a Term Interest Rate is then in
effect, the effective date of any change must be either the day after the last day of the then current Term Interest Rate Period or, except as described in clause (iii) below, a day on which the Bonds would otherwise be subject to redemption
under the paragraph “Optional Redemption During Term Interest Rate Period” in paragraph 9 of the Bonds if the change did not occur; 
 (iii) if the Company has previously designated successive Term Interest Rate Periods, the effective date of each Term Interest Rate Period must be the day after the last day of the previous Term Interest
Rate Period; 
 (iv) if a Commercial Paper Mode is then in effect, the effective date of any change must be either the day
after the last day of the Commercial Paper Mode or, as to any Bond, the day after the last day of the Commercial Paper Period then in effect (or to be in effect) with respect to that Bond; 

(v) if any Bonds have been called for redemption and the redemption has not yet occurred, the effective date of the change cannot be
before such Redemption Date; 

  
 15 

 (vi) if a Term Interest Rate is then in effect, the effective date of any change cannot
occur during the period after a Record Date and to, but not including, the related Interest Payment Date; and 
 (vii) if a
Commercial Paper Mode is then in effect, the Remarketing Agent shall determine Commercial Paper Periods of such duration that will, in the judgment of the Remarketing Agent, best promote an orderly transition on the effective date. After the receipt
by the Trustee of the Company’s Conversion Notice, the day after the last day of each Commercial Paper Period shall be, with respect to such Bond, not later than the effective date of the change. The Remarketing Agent shall promptly give
written notice of each such last date and each such effective date with respect to each Bond to the Authority, the Company and the Trustee. 
 During any transition period in connection with a change in Determination Method from the Commercial Paper Mode to a Daily Rate, Weekly Rate or a Term Interest Rate, as applicable, in which the
Remarketing Agent is setting different Commercial Paper Periods in order to effect an orderly transition of such change, Bonds bearing interest at a Commercial Paper Rate shall be governed by the provisions of this Agreement applicable to a
Commercial Paper Mode and Bonds bearing interest at a Daily Rate, Weekly Rate or Term Interest Rate, as applicable, shall be governed by the provisions of this Agreement applicable to such Determination Methods. 

(c) Calculation of Interest. The Remarketing Agent shall provide the Trustee and the Company with notice in writing or by
other written electronic means or by telephone (any such notice by telephone to be delivered to a Responsible Officer of the Trustee) promptly confirmed by facsimile transmission by 1:00 p.m., New York City time, 

(1) on the last Business Day of a month in which interest on the Bonds was payable at a Daily Rate, of the Daily Rate for each day in
such month, 
 (2) on each day on which a Weekly Rate becomes effective, of the Weekly Rate, 

(3) on the first day of each Commercial Paper Period, of the length thereof and the Commercial Paper Rate, and, if there is more than one
Commercial Paper Rate then in effect, of the related applicable principal amounts, 
 (4) on the first Business Day of a Term
Interest Rate Period, of the Term Interest Rate set for that period, and 
 (5) on any Business Day preceding any redemption or
purchase date, any interest rate requested by the Trustee in order to enable it to calculate the accrued interest, if any, due on such redemption or purchase date. 
 Using the rates supplied by this notice, the Trustee will calculate the interest payable on the Bonds. The Remarketing Agent will inform the Trustee and the Company orally at the oral request of either of
them of any interest rate so set. The Trustee will confirm the effective interest rate in writing to any Bondholder who requests it. 

  
 16 

 The setting of the rates by the Remarketing Agent, the determination of Commercial Paper
Periods by the Remarketing Agent and the calculation of interest payable on the Bonds by the Trustee as provided in this Agreement will be conclusive and binding on the Authority, the Company, the Trustee and the owners of the Bonds. 

(d) Change in Rate Determination Method-Opinions of Counsel. Notwithstanding any provision of this Section 3.02, no
change shall be made in the Determination Method at the direction of the Company pursuant to Section 3.02(b)(1), and the Bonds shall continue to bear interest in accordance with the then current Determination Method, if the Trustee shall
receive written notice prior to the effective date of such change that (i) the Favorable Opinion of Tax Counsel and confirmation thereof if required under Section 3.02(b)(1) has not been delivered or (ii) that the Company has revoked
its election. If the Trustee shall have sent any notice to the Bondholders regarding a change in rate pursuant to Section 4.06(b), then in the event of such failure to deliver such opinion or confirmation, or revocation by the Company, the
Trustee shall promptly notify all Bondholders of such failure and the Bonds shall still be subject to mandatory tender on that proposed date and the Remarketing Agent shall remarket the Bonds pursuant to the terms of this Agreement. 

Section 3.03. Undelivered Bonds. If a Bond is tendered for purchase as provided in Article III, or if
the holder of a Bond gives irrevocable instructions to the Remarketing Agent for purchase, and in each case funds are deposited with the Trustee sufficient for the purchase, the Trustee upon request of the Company or the Remarketing Agent will
authenticate a new Bond in the same maturity and in the same denomination registered as the Company or the Remarketing Agent may direct and deliver it to the Company or upon the Company’s order, whether or not the Bond purchased is ever
delivered, and the undelivered Bonds shall be canceled on the books of the Trustee, whether or not said undelivered Bonds have been delivered to the Trustee. From and after the purchase date, interest on such Bond shall cease to be payable to the
prior holder thereof, such holder shall cease to be entitled to the benefits or security of this Agreement and shall have recourse solely to the funds held by the Trustee for the purchase of such Bond, and the Trustee shall not register any further
transfer of such Bond by such prior holder. If Bonds to be purchased are not delivered by the holders by 12:00 noon, New York City time, on any purchase date, the Trustee shall hold any funds received for the purchase of those Bonds in trust in a
separate account and shall pay such funds to the former owners of the Bonds upon presentation of the Bonds. All funds held by the Trustee for the purchase of undelivered Bonds shall be held uninvested. 

Section 3.04. Form of Bonds. The Bonds shall be substantially in the form of Exhibit B,
which is part of this Agreement, in the denominations provided for in the Bonds, with appropriate or necessary insertions, omissions and variations as permitted or required hereby, including the appropriate series designation and Maturity Date. The
Bonds shall express the purpose for which they are issued and any other statements or legends which may be required by law or the provisions hereof, including the provisions of Section 6.01. Bonds will be numbered as determined by the Trustee.
All Bonds, unless a supplemental agreement shall have been executed and delivered pursuant to Section 12.01, shall be in fully registered form, and the holder of a Bond shall be regarded as the absolute owner thereof for all purposes of this
Agreement. 

  
 17 

 Section 3.05. Execution and Authentication of Bonds. Each
Bond shall be signed by the Chairman of the Authority and attested by the Secretary of the Authority in their official capacities (provided that any or all of those signatures may be facsimiles) and shall bear the seal or a facsimile of the
seal, if any, of the Authority. In case any officer whose signature or a facsimile of whose signature appears on any Bond shall cease to be that officer before the issuance of the Bond, his signature or the facsimile thereof nevertheless shall be
valid and sufficient for all purposes, the same as if he had remained in office until that time. Any Bond may be executed on behalf of the Authority by an officer who, on the date of execution is the proper officer, although on the date of the Bond
that person was not the proper officer. 
 No Bond shall be valid or become obligatory for any purpose or shall be entitled to
any security or benefit under this Agreement unless and until a certificate of authentication, substantially in the form set forth in Exhibit B to this Agreement, shall have been signed by the Trustee. The authentication by the Trustee upon
any Bond shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered hereunder and is entitled to the security and benefit of this Agreement. The certificate of the Trustee may be executed by any person
authorized by the Trustee, but it shall not be necessary that the same authorized person sign the certificates of authentication on all of the Bonds. In authenticating the Bonds, the Trustee shall add the date of its authentication of Bonds. No Bond
shall be authenticated except in an authorized denomination. 
 Section 3.06. Transfer and Exchange of
Bonds. Subject to Section 6.01, all Bonds are transferable or exchangeable by the holder thereof, in person or by the Bondholder’s attorney duly authorized in writing, at the office of the Trustee in the books required to be kept
by the Trustee pursuant to the provisions of Section 3.07, upon surrender of such Bonds accompanied by delivery of a duly executed written instrument of transfer or exchange in a form approved by the Trustee. Whenever any Bond or Bonds shall be
surrendered for transfer or exchange, the Trustee shall execute and deliver a new Bond or Bonds of authorized denominations of the same aggregate principal amount, except that the Trustee may require the payment by any Bondholder requesting such
transfer or exchange of any tax or other governmental charge required to be paid with respect to such transfer or exchange. All Bonds surrendered pursuant to the provisions of this Section shall be canceled by the Trustee, shall not be
redelivered and shall be disposed of as provided in Section 3.10. The Trustee shall not be required to transfer or exchange (i) any Bonds of the maturity or maturities being redeemed during the period commencing on the date ten days prior
to the date of mailing of a notice of redemption of Bonds of that maturity for redemption and ending on such date of mailing or (ii) any Bond selected for redemption in whole or in part. 

Section 3.07. Registration Books. The Trustee will keep at its office sufficient books for the
registration of the ownership, transfer or exchange of the Bonds, which books shall be available for inspection by the Authority, the Company and the Trustee at reasonable hours and under reasonable conditions; and upon presentation for such purpose
the Trustee shall, under such reasonable regulations as it may prescribe, register the ownership, transfer or exchange of the Bonds in such books as hereinabove provided. The ownership of any Bonds may be proved by the books required to be kept by
the Trustee pursuant to the provisions of this Section. 
 Section 3.08. Temporary Bonds. The
Bonds may be initially delivered in temporary form exchangeable for definitive Bonds when ready for delivery, which temporary Bonds shall be 

  
 18 

 
printed, lithographed or typewritten, shall be of such denominations as may be determined by the Trustee, shall be in fully registered form and shall contain such reference to any of the
provisions hereof as may be appropriate. Every temporary Bond shall be authenticated and delivered by the Trustee upon the same conditions and terms and in substantially the same manner as definitive Bonds. If the Trustee authenticates and delivers
temporary Bonds, the Authority will prepare and execute and the Trustee will authenticate definitive Bonds without delay, and in that case upon demand of the holder of any temporary Bonds such definitive Bonds shall be exchanged without cost to such
Bondholder for temporary Bonds at the office of the Trustee upon surrender of such temporary Bonds, and until so exchanged such temporary Bonds shall be entitled to the same benefit, protection and security hereunder as the definitive Bonds executed
and delivered hereunder. All temporary Bonds surrendered pursuant to the provisions of this Section shall be canceled by the Trustee, shall not be redelivered and shall be disposed of as provided in Section 3.10. 

Section 3.09. Bond Mutilated, Destroyed, Lost or Stolen. If any Bond shall become mutilated, the Trustee
shall authenticate and deliver a new Bond of like tenor and of the same Maturity Date in lieu of the mutilated Bond, but only upon surrender to the Trustee of the mutilated Bond, and every mutilated Bond surrendered to the Trustee shall be canceled
by it and shall not be redelivered and shall be disposed of as provided in Section 3.10. If any Bond shall be destroyed, lost or stolen, evidence of such destruction, loss or theft may be submitted to the Trustee and if such evidence is
satisfactory to the Trustee, and the Trustee and the Authority receive indemnity satisfactory to them, the Trustee shall authenticate and deliver a new Bond of like tenor and of the same Maturity Date in substitution for the destroyed, lost or
stolen Bond. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond authenticated and delivered by it under this Section and of the expenses which may be incurred by it under this Section. Any
replacement Bond authenticated and delivered under the provisions of this Section in lieu of or in substitution for any mutilated, destroyed, lost or stolen Bond shall be equally and proportionately entitled to the benefit, protection and
security hereof with all other Bonds executed and delivered hereunder, to the same extent as the mutilated, destroyed, lost or stolen Bond replaced; and neither the Trustee nor the Authority shall be required to treat both the original Bond and any
replacement Bond as being outstanding for the purpose of determining the principal amount of Bonds which may be authenticated and delivered hereunder or for the purpose of determining any percentage of Bonds outstanding hereunder, but both the
original and the replacement Bond shall be treated as one and the same. Notwithstanding any other provision of this Section, rather than authenticating and delivering a new Bond for a mutilated, destroyed, lost or stolen Bond which has been called
for redemption, the Trustee may make payment of the principal of such mutilated, destroyed, lost or stolen Bond directly to the holder thereof under such regulations as the Trustee may prescribe. 

Section 3.10. Safekeeping and Cancellation of Bonds. Any Bond surrendered pursuant to this Article for
the purpose of payment or retirement, or for exchange, replacement or transfer, shall be canceled upon presentation and surrender thereof to the Trustee. 
 The Company on behalf of the Authority, may deliver at any time to the Trustee for cancellation any outstanding Bonds previously authenticated and delivered hereunder, which the Authority or the Company
may have acquired in any manner whatsoever. All Bonds so delivered shall be canceled promptly by the Trustee. Certification of the surrender and 

  
 19 

 
cancellation shall be made by the Trustee to the Authority and the Company upon the request of either therefor. Such canceled Bonds shall be disposed of by the Trustee in accordance with its
customary procedures. 
 Section 3.11. Special Agreement with Bondholders. Notwithstanding any
provision of this Agreement or of any Bond to the contrary, with the approval of the Company, the Trustee may enter into an agreement with any holder of at least $1,000,000 aggregate principal amount of Bonds providing for making all payments to
that holder on that Bond or any part thereof (other than any payment of the entire unpaid principal amount thereof) at a place and in a manner other than as provided in this Agreement and in the Bond, without presentation or surrender of the Bond,
upon any conditions which shall be satisfactory to the Trustee and the Company; provided, that payment in any event shall be made to the person in whose name a Bond shall be registered on the books required to be kept by the Trustee pursuant
to the provisions of Section 3.07, with respect to payment of principal and premium, on the date such principal and premium is due, and, with respect to the payment of interest, as of the applicable Record Date. 

Section 3.12. CUSIP Numbers. The Authority in issuing the Bonds may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Bondholders; provided that any such notice may state that no representation is made as to the correctness of such
numbers either as printed on the Bonds or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Bonds, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the “CUSIP” numbers of which the Company has written notice. 
 ARTICLE IV 
 REDEMPTION, MANDATORY TENDER AND REMARKETING 

Section 4.01. Redemption. 
 (a) Special Mandatory Redemption Upon Taxability. If, as a result of the failure of the Company to observe any covenant, agreement or representation in this Agreement or any related
agreement or certificate of the Company relating to federal tax compliance, a court of competent jurisdiction or any administrative agency finally determines (such determination not to be considered final unless the Authority has been given written
notice and, if, in consultation with the Company, the Authority determines to contest, at the Company’s expense, either directly or in the name of any holder of a Bond, any such determination, until the conclusion of any appellate review if
sought by the Authority in consultation with the Company and at the Company’s expense) that the interest payable on any Bond is includable for federal income tax purposes in the gross income, as defined in Section 61 of the Code, of any
Bondholder (other than a “substantial user” of the Project or a “related person,” as defined in the Code), the Bonds shall be subject to special mandatory redemption prior to maturity, as a whole, or in part if such partial
redemption will preserve the exclusion from gross income for federal income tax purposes of interest on the remaining Bonds outstanding (and if in part, to be selected by the Trustee or by the Securities Depository, as applicable, by lot or in any
other customary manner as determined by the Trustee or by the Securities Depository, as applicable) at a Redemption 

  
 20 

 
Price equal to the principal amount thereof, plus interest accrued to the Redemption Date, without premium. The Company will give notice to the Authority and the Trustee in writing of the amount
of Bonds to be redeemed and of the date selected for such redemption not later than 90 days after the date of such final determination, such Redemption Date to be not more than 180 days after the date of such final determination. 

(b) Extraordinary Optional Redemption. The Bonds are subject to redemption prior to maturity at the option of the Company,
by notice to the Trustee and the Authority, in whole, at any time, at a Redemption Price equal to the principal amount of the outstanding Bonds, plus accrued interest thereon to the date of redemption, without premium, on any date selected by the
Company, but not less than 45 days after nor more than 180 days after the Company shall have given notice of its exercise of the right to make such prepayment. The Company may exercise its right to cause the Bonds to be redeemed at its option, if:

 (1) In the opinion of the Company, the continued operation by the Company of the Project Unit is impracticable, uneconomical
or undesirable due to (A) the imposition of taxes or other liabilities or burdens not being imposed as of the date of the Bonds, (B) changes in technology or in the economic availability of raw materials or operating supplies or equipment
or (C) destruction of or damage to all or a substantial portion of the Project Unit; provided, however, that the Company may not exercise its right to redeem the Bonds for reasons described in this clause (1) if any portion of the
Redemption Price is to be paid from the proceeds of tax-exempt bonds; 
 (2) The Project Unit shall have been condemned or taken
by eminent domain; 
 (3) The operation by the Company of the Project Unit shall have been enjoined and the Company shall have
been prevented from carrying on normal operations at the Project Unit for a period of six months or more; or 
 (4) In the event
the First Mortgage Bonds have been issued, all or substantially all the mortgaged and pledged property constituting bondable property (as defined in the First Mortgage) which at the time shall be subject to the lien of the First Mortgage as a first
lien shall be released from the lien of the First Mortgage pursuant to the provisions thereof, and available moneys in the hands of the trustee or trustees at the time serving as such under the First Mortgage, including any moneys deposited by the
Company available for the purpose, are sufficient to redeem all the First Mortgage Bonds of all series issued pursuant to the First Mortgage at the redemption prices (together with accrued interest to the date of redemption) specified therein
applicable to the redemption thereof upon the happening of such event. 
 For purposes of clause (1) of this
Section 4.01(b), the “opinion of the Company” shall be expressed to the Authority and the Trustee by delivery of a certified copy of a resolution of the Board of Directors of the Company or the Executive Committee thereof stating that
it is the opinion of said Board of Directors or Executive Committee that the circumstances, situations or conditions described in subclause (A), (B) or (C) of such clause (1) exist to the extent required for the Company to exercise
the option provided. 

  
 21 

 (c) Optional Redemption. The Bonds shall be subject to redemption at
the option of the Company as provided under “Optional Redemption During Term Interest Rate Period” or “Optional Redemption During Daily or Weekly Rate Period” in paragraph 9 of the form of the Bonds. The
Company will notify the Trustee in writing of such redemption at least 15 days before the date on which the Trustee is required to deliver notice of redemption to the Bondholders. 

Section 4.02. Optional Redemption Dates. The Redemption Date of Bonds to be redeemed pursuant to any
optional redemption provision in this Agreement and the Bonds will be a date permitted by the Bonds and specified by the Company in the notice delivered pursuant to Section 4.04. 

Section 4.03. Selection of Bonds to Be Redeemed. Except as provided in the Bonds, if fewer than all the
Bonds are to be redeemed, the Trustee will select the Bonds to be redeemed by lot, except that the Trustee will first select any Bonds owned by the Company or any of its nominees or held by the Trustee for the account of the Company or any of its
nominees. The Trustee will make the selection from Bonds not previously called for redemption. For this purpose, the Trustee will consider each Bond in a denomination larger than the minimum denomination permitted by the Bonds at the time to be
separate Bonds each in the minimum denomination. Provisions of this Agreement that apply to Bonds called for redemption also apply to portions of Bonds called for redemption. 
 Section 4.04. Redemption Notices. 
 (a)
Official Notice of Redemption. The Trustee will give notice of each redemption as provided in the Bonds and will at the same time give a copy of the notice to the Remarketing Agent. The notice shall identify the Bonds to be redeemed
(including CUSIP numbers) and shall state (1) the Redemption Date (and, if the Bonds provide that accrued interest will not be paid on the Redemption Date, the date it will be paid), (2) the Redemption Price, (3) that the Bonds called
for redemption must be surrendered to collect the Redemption Price, (4) the address at which the Bonds must be surrendered and (5) that interest on the Bonds called for redemption ceases to accrue on the Redemption Date. 

With respect to an optional redemption of any Bonds under “Optional Redemption During Term Interest Rate Period,”
“Extraordinary Optional Redemption” or “Optional Redemption During Daily or Weekly Rate Period” in paragraph 9 of the form of the Bonds, unless moneys sufficient to pay the principal of, premium, if any, and interest
on the Bonds to be redeemed shall have been received by the Trustee prior to the giving of such notice of redemption, such notice may state that said redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the
date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, such Bonds shall not be redeemed, the Redemption Price shall not be due and payable and the Trustee shall give notice, in the same manner in
which the notice of redemption was given, that such moneys were not so received and that such Bonds will not be redeemed. 

Failure to give any required notice of redemption as to any particular Bonds or any defect therein will not affect the validity of the
call for redemption of any Bonds in respect of which no 

  
 22 

 
such failure or defect has occurred. Any notice mailed as provided in the Bonds shall be effective when sent and will be conclusively presumed to have been given whether or not actually received
by any holder. 
 (b) Additional Notice of Redemption. In addition to the redemption notice required above,
further notice (the “Additional Redemption Notice”) shall be given by the Trustee as set out below. No defect in the Additional Redemption Notice nor any failure to give all or any portion of the Additional Redemption Notice shall
in any manner defeat the effectiveness of a call for redemption if notice is given as prescribed in paragraph (a) above. 

(1) Each Additional Redemption Notice shall contain the information required in paragraph (a) above for an official notice of
redemption plus (i) the CUSIP numbers of all Bonds being redeemed; (ii) the date of the Bonds as originally issued; (iii) the Determination Method for, or the rate of interest borne by, each Bond being redeemed; (iv) the Maturity
Date of each Bond being redeemed; and (v) any other descriptive information needed to identify accurately the Bonds being redeemed. 
 (2) Each Additional Redemption Notice shall be sent at least 30 days before the Redemption Date by registered or certified mail or overnight delivery service (or by such other means as the Trustee may
have established with the Securities Depository or any information service) to all registered securities depositories then in the business of holding substantial amounts of obligations similar to the Bonds (such depository now being The Depository
Trust Company of New York, New York) and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. 
 The information required in any redemption notice (including an Additional Redemption Notice) pursuant to this Section and the information required in any notice of tender (including an Additional
Tender Notice, as hereinafter defined) may be combined in a single notice if it is sent to Bondholders in the manner and at the time specified under “Notice of Redemption” in paragraph 9 of the form of the Bonds. 

Any redemption notice may state that no representation is made as to the correctness of “CUSIP” numbers either as printed on
the Bonds or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Bonds, and any such redemption shall not be affected by any defect in or omission of such numbers.

 Upon surrender to the Trustee, Bonds called for redemption shall be paid as provided in this Article at the Redemption Price
(including premium, if any) stated in the notice, plus interest accrued to the Redemption Date, or at a Purchase Price as provided in the form of Bond. Bonds called for redemption and purchased pursuant to a tender before the Redemption Date will
not be redeemed but will be dealt with as provided below in this Article. 
 Section 4.05. Bonds
Redeemed in Part. Subject to ARTICLE VI, upon surrender of a Bond redeemed in part, the Trustee will authenticate for the holder a new Bond or Bonds in authorized denominations equal in principal amount to the unredeemed portion of the Bond
surrendered. 

  
 23 

 Section 4.06. Mandatory Tender. 

(a) Mandatory Tender of Bonds. The Bonds are subject to mandatory tender as provided in paragraph 7 of the form of the
Bonds. 
 (b) Notice to Bondholders of Change in Interest Rate Determination Method. When a change in the
Determination Method is to be made or upon commencement of a new Term Interest Rate Period, the Trustee will, upon notice from the Company pursuant to Section 3.02(b), notify the Bondholders by first class mail at least 15 days before the
effective date of the change or the commencement of a new Term Interest Rate Period, except that (i) such notice shall be given at least 30 days prior to the effective date if a Term Interest Rate Period longer than six months is in effect and
the effective date is before the end of the Term Interest Rate Period, (ii) no notice shall be given with respect to a tender under “Mandatory Tender at Beginning of a New Term Interest Rate Period” in paragraph 7 of the form
of the Bonds involving no change in the Term Interest Rate Period, and (iii) no notice shall be given with respect to a tender under “Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode” in paragraph 7
of the form of the Bonds. The notice shall be effective when sent and shall state: 
 (1) the purchase date; 

(2) the Purchase Price; 
 (3) that the Bonds to be tendered must be surrendered to collect the Purchase Price; 
 (4) the address at which or the manner in which the Bonds must be surrendered; 

(5) that interest on the Bonds to be tendered ceases to accrue to such holder on the purchase date and such holder will be entitled only
to the Purchase Price on the purchase date; 
 (6) that the interest rate Determination Method will be changed; 

(7) the proposed effective date of the new rate; 
 (8) that a mandatory tender will result on the effective date of the change as provided in the Bonds; and 
 (9) any conditions precedent to such change and that, if such conditions are not satisfied, the Bonds will continue to bear interest in accordance with the then current method. 

Failure to give any required notice of tender as to any particular Bonds or any defect therein will not affect the validity of the tender
of any Bonds in respect of which no such failure or defect has occurred. Any notice mailed as provided in the Bonds shall be effective when sent and will be conclusively presumed to have been given whether or not actually received by any holder.

  
 24 

 (c) Additional Notice of Tender. In addition to the tender notice required
above, further notice (the “Additional Tender Notice”) shall be given by the Trustee as set out below. No defect in the Additional Tender Notice nor any failure to give all or any portion of the Additional Tender Notice shall in any
manner defeat the effectiveness of a tender notice if notice is given as prescribed in paragraph (b) above. 
 (1) Each
Additional Tender Notice shall contain the information required in paragraph (c) above for an official notice of tender plus (i) the CUSIP numbers of all Bonds being tendered; (ii) the date of the Bonds as originally issued;
(iii) the Maturity Date of each Bond being purchased; and (iv) any other descriptive information needed to identify accurately the Bonds being purchased. 
 (2) Each Additional Tender Notice shall be sent at least 15 days before the purchase date by registered or certified mail or overnight delivery service (or by such other means as the Trustee may have
established with the Securities Depository or any information service) to all registered securities depositories then in the business of holding substantial amounts of obligations similar to the Bonds (such depository now being The Depository Trust
Company of New York, New York) and to one or more national information services that disseminate notices of purchase of obligations such as the Bonds. 
 The information required in any tender notice (including an Additional Tender Notice) pursuant to this Section and the information required in any redemption notice (including an Additional
Redemption Notice) may be combined in a single notice if it is sent to Bondholders in the manner and at the time specified under “Notice of Tender” in paragraph 7 of the form of the Bonds. 

Section 4.07. Source of Funds for Purchase of Bonds. Funds for the payment of the Purchase Price of
tendered Bonds shall be derived solely from the following sources in the order of priority indicated and neither the Trustee nor the Remarketing Agent shall be obligated to provide funds from any other source: 

(a) proceeds of the remarketing of Bonds to persons other than the Company, the affiliates of the Company and the Authority and furnished
immediately to the Trustee by the Remarketing Agent and deposited directly into and held continuously in, the Remarketing Proceeds Account; and 
 (b) money provided by the Company or otherwise available for the payment of the Purchase Price, and proceeds from the investment thereof. 
 The Company’s failure to provide funds for the purchase of Bonds when required by Section 4.06, this Section or the provisions of the Bonds shall constitute an Event of Default under
Section 10.01(c) 

  
 25 

 Section 4.08. Delivery of Bonds. On each tender date, the
Bonds shall be delivered as follows: 
 (a) Bonds purchased by the Trustee with moneys described in Section 4.07(a) shall
be delivered by the Remarketing Agent to the purchasers of those Bonds by 3:00 p.m., New York City time; and 
 (b) Bonds
purchased by the Trustee with moneys described in Section 4.07(b) (the “Company-Held Bonds”) shall be, at the direction of the Company, either (i) delivered to and registered in the name of the Company on or before 3:00
p.m., New York City time, or (ii) delivered to or held by the Trustee for the account of the Company. 

Section 4.09. No Purchase or Sale after Event of Default. Anything in this Agreement to the contrary
notwithstanding, if there shall have occurred and be continuing an Event of Default under this Agreement, the Remarketing Agent shall not remarket any Bonds. 
 Section 4.10. Purchase Fund. There is hereby established and there shall be maintained with the Trustee a separate fund to be known as the “Purchase Fund”. The
Trustee shall further establish separate accounts within the Purchase Fund to be known as the “Remarketing Proceeds Account” and the “Company Purchase Account.” 

(a) Remarketing Proceeds Account. Upon receipt from the Remarketing Agent of the proceeds of a remarketing of Bonds on a
purchase date, the Trustee shall directly deposit such proceeds, and shall deposit only such proceeds, in the Remarketing Proceeds Account for application to the Purchase Price of the Bonds. Neither the Authority nor the Company shall have any
interest in the Remarketing Proceeds Account. 
 (b) Company Purchase Account. Upon receipt of funds provided to
the Trustee by the Company pursuant to Section 5.05(c), the Trustee shall directly deposit such money, and shall deposit only such money, in the Company Purchase Account for application to the Purchase Price of the Bonds. Neither the Authority
nor the Company shall have any interest in the Company Purchase Account. 
 (c) Investment. Amounts held in the
Remarketing Proceeds Account and the Company Purchase Account by the Trustee shall be held uninvested. 

Section 4.11. Disposition of Purchased Bonds. 

(a) Bonds to Be Remarketed. Bonds purchased pursuant to tenders as provided in the form of Bonds or as provided in
Section 4.06 will be offered for sale by the Remarketing Agent as provided in this Section except as follows: 
 (1)
Bonds required to be tendered or redeemed, which are tendered between the date notice of mandatory tender or redemption is given and the mandatory tender date or Redemption Date, may be remarketed before the mandatory tender date or Redemption Date
only if the buyer receives a copy of the mandatory tender notice or the redemption notice, as the case may be, from the Remarketing Agent; and 

  
 26 

 (2) Bonds will not be offered for sale under this Section during the continuance of an
Event of Default under Section 10.01 of this Agreement. 
 (b) Remarketing Effort. Except to the extent the
Company directs the Remarketing Agent not to do so, the Remarketing Agent will offer for sale and use reasonable efforts to sell all Bonds to be sold as provided in paragraph (a) above and, when directed by the Company, any Company-Held Bonds.
The sale price of each Bond must be equal to the principal amount of each Bond plus accrued interest, if any, to the purchase date. The Company may direct the Remarketing Agent from time to time to cease and to resume sales efforts with respect to
some of or all the Bonds. The Remarketing Agent may buy as principal any Bonds to be offered under this Section 4.11. 

(c) Notices in Respect of Tenders. When the Trustee receives a notice from a Bondholder (or a Beneficial Owner through its
direct Participant) as specified in paragraph 6 of the form of the Bond for the Bondholder (or a Beneficial Owner through its direct Participant) that Bonds are being tendered, the Trustee will promptly notify the Remarketing Agent and the Company
by facsimile transmission or telephone, promptly confirmed in writing, of the receipt of such notice, but in no event later than the following times: 
 (1) when the Bonds bear interest at a Daily Rate, no later than 11:15 a.m. (New York City time) on the same Business Day; and 
 (2) when the Bonds bear interest at a Weekly Rate, no later than 11:15 a.m. (New York City time) on the Business Day next succeeding receipt of such notice. 

(d) Delivery of Remarketed Bonds. 
 (1) Except when the Book-Entry System is in effect, the Trustee shall hold all Bonds delivered pursuant to this Section 4.11 in trust for the benefit of the owners thereof until moneys representing
the Purchase Price of such Bonds shall have been delivered to or for the account of or to the order of such Bondholders, and thereafter, if such Bonds are remarketed, shall deliver replacement Bonds, prepared by the Trustee in accordance with the
directions of the Remarketing Agent and authenticated by the Trustee, for any Bonds purchased in accordance with the written directions of the Remarketing Agent, to the Remarketing Agent for delivery to the purchasers thereof. 

  
 27 

 (2) The Remarketing Agent shall advise the Trustee and the Company in writing or by
facsimile transmission of (A) the principal amount of Bonds which have been remarketed and that the proceeds of such remarketing have been received by the Remarketing Agent, and, (B) the denominations and registration instructions
(including taxpayer identification numbers), in each case, in accordance with the following schedule (all times of which are New York City time): 
  

			
	 CURRENT METHOD OF INTEREST RATE
 DETERMINATION OR, IN CONNECTION WITH
 A CHANGE IN SUCH METHOD, THE
NEW
 METHOD OF INTEREST RATE
 DETERMINATION
	  	 TIME BY WHICH INFORMATION
 TO BE FURNISHED TO TRUSTEE

		
	Commercial Paper Period	  	12:15 p.m. on the purchase date
		
	Daily Rate Period	  	11:45 a.m. on the purchase date
		
	Weekly Rate Period	  	11:45 a.m. on the purchase date
		
	Term Interest Rate Period	  	12:15 p.m. on the purchase date

 (3) The
terms of any sale by the Remarketing Agent shall provide for the authorization of the payment of the Purchase Price by the Remarketing Agent to the Trustee in exchange for Bonds registered in the name of the new Bondholder which shall be delivered
by the Trustee to the Remarketing Agent at or before 2:00 p.m. (12:00 p.m. if the Bonds are not in a Book-Entry System) (New York City time) on the purchase date if the Purchase Price has been received from the Remarketing Agent by the time set
forth in Section 4.11(e) on the purchase date. 
 (e) Delivery of Proceeds of Sale. The Remarketing Agent
shall deliver directly to the Trustee an amount equal to the principal amount thereof plus accrued interest, if any, of the Bonds which the Remarketing Agent has advised the Trustee have been remarketed pursuant to Section 4.11(d)(2) no later
than 1:30 p.m. (New York City time) on the purchase date. 
 Section 4.12. Purchase of Bonds in Lieu of
Redemption. When Bonds are called for redemption pursuant to “Optional Redemption During Term Interest Rate Period” or “Optional Redemption During Daily or Weekly Rate Period” as provided under paragraph 9
in the form of Bond, the Company may purchase some or all of the Bonds called for redemption if it (or the Remarketing Agent) gives written notice to the Trustee and the Remarketing Agent not later than the day before the Redemption Date that it
wishes to purchase the principal amount of Bonds specified in the notice, at a Purchase Price equal to the Redemption Price. On the date specified as the Redemption Date, the Trustee will be furnished sufficient remarketing proceeds (or other funds
provided by the Company as provided in Section 4.07(b) hereof) in sufficient time for the Trustee to make the purchase on the Redemption Date. Any such purchase of Bonds by the Company shall not be deemed to be a payment or redemption of the
Bonds or any portion thereof and such purchase shall not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 

  
 28 

 ARTICLE V 
 FUNDS AND ACCOUNTS 
 Section 5.01. Application of
Proceeds. The proceeds received from the sale of the Bonds shall be applied as follows: 
 (a) any proceeds representing
accrued interest on the Bonds will be deposited into the Bond Fund; and 
 (b) all other proceeds will be deposited into the
Refunding Fund. 
 Section 5.02. Bond Fund. There is hereby established and created a fund to
be designated “Polk County Industrial Development Authority Solid Waste Disposal Facility Revenue Refunding Bonds (Tampa Electric Company Project) Series 2010 Bond Fund.” The Trustee shall further establish separate accounts within the
Bond Fund to be known as the “Interest Account,” the “Principal Account” and the “Redemption Account.” 
 The Bond Fund and the moneys and Permitted Investments therein shall be used solely and exclusively for the payment of Bond Service Charges as they become due at stated maturity, by redemption, or by
acceleration, all as provided herein. 
 Bond Service Charges shall be payable, as they become due, (i) in the first
instance from the payments to be made by the Company to the Trustee pursuant to Section 5.05(a) and to be deposited in the Bond Fund, (ii) if those payments are not made or if moneys then on deposit in the Bond Fund and available for that
purpose are not sufficient to pay the Bond Service Charges, from other Revenues to the extent then available, and (iii) from any other source lawfully available to the Trustee. 

Except where moneys have been deposited with or paid to the Trustee pursuant to an instrument restricting their application to particular
Bonds, all moneys required or permitted to be deposited with or paid to the Trustee under any provision of this Agreement, and any investments thereof, shall be held by the Trustee in trust. Except for (i) moneys deposited with or paid to the
Trustee for the redemption of Bonds, notice of the redemption of which shall have been duly given, and (ii) moneys held by the Trustee pursuant to Section 13.03, all moneys described in the preceding sentence held by the Trustee shall be
subject to the lien hereof while so held. 
 The Trustee shall apply money contained in the accounts described below at the
following respective times in the manner hereinafter provided, which accounts the Trustee hereby agrees to establish and maintain within the Bond Fund so long as this Agreement is not discharged in accordance with ARTICLE XIII and each such account
shall constitute a trust fund for the benefit of the holders of the Bonds, and the money in each such account shall be disbursed only for the purposes and uses hereinafter authorized. 

(a) Interest Account. The Trustee, on each Interest Payment Date, shall withdraw and apply from moneys on deposit in the
Interest Account an amount which shall be sufficient to pay interest payable on the outstanding Bonds on such Interest Payment Date. 

  
 29 

 (b) Principal Account. The Trustee, on each Principal Payment Date, shall
withdraw and apply from moneys on deposit in the Principal Account, an amount equal to the principal becoming due on Bonds on such Principal Payment Date (other than a Redemption Date). Money in the Principal Account shall be used and withdrawn by
the Trustee on each Principal Payment Date solely for the payment of the principal of outstanding Bonds. 
 (c) Redemption
Account. The Trustee, on or before each Redemption Date, shall withdraw and apply from moneys on deposit in the Redemption Account amounts required to pay the principal of and premium, if any, and accrued interest on Bonds to be redeemed
prior to their stated maturity. Money in the Redemption Account shall be used and withdrawn by the Trustee on each Redemption Date solely for the payment of the principal of and premium, if any, and accrued interest on outstanding Bonds upon the
redemption thereof prior to their stated maturity. 
 Section 5.03. First Mortgage Bond Fund.
There is hereby established and created a fund to be designated “Polk County Industrial Development Authority Solid Waste Disposal Facility Revenue Refunding Bonds (Tampa Electric Company Project) Series 2010 First Mortgage Bond Fund.” The
First Mortgage Bond Fund will be opened upon issuance of the First Mortgage Bonds, if any, pursuant to Section 2.02. There shall be deposited to the credit of the First Mortgage Bond Fund all payments, if any, made on the First Mortgage Bonds,
if any. The moneys in the First Mortgage Bond Fund shall be held by the Trustee in trust and applied to the amounts which the Company may be required to pay to the Trustee for deposit in the Bond Fund and, pending such application, shall be subject
to a lien and charge in favor of the Bondholders. 
 Section 5.04. Payment of Bonds. The
Trustee will make payments of Purchase Price of, principal of, premium, if any, and interest on the Bonds from moneys available to the Trustee under Section 4.07, Section 4.10 and Section 5.02. 

All moneys received as proceeds of remarketing the Bonds under Section 4.11 shall be held segregated by the Trustee in the
Remarketing Proceeds Account, a separate and segregated trust account, as provided in Section 4.10. To the extent that the payment of principal or interest on the Bonds is made from moneys as described in this Section, such payment shall also
satisfy and discharge any payment obligation of the Company under this Agreement and the Trustee shall promptly notify the Company in writing if such payment requirement has not been satisfied. If any Bond is redeemed prior to maturity or if the
Company surrenders any Bond to the Trustee for cancellation, the Trustee shall cancel such Bond. 

Section 5.05. Payments by the Company. 

(a) Debt Service. 
 (1) Not later than the opening of business on the Business Day on which a payment of principal or interest is due, the Company shall pay or cause to be paid to the Trustee for deposit in the Bond Fund an
amount available on such payment date equal to such payment less the amount, if any, in the Bond Fund and available therefor. 

(2) The payments to be made under the foregoing subsection shall be appropriately adjusted to reflect the date of issue of Bonds, accrued
interest deposited in the 

  
 30 

 
Bond Fund, if any, and any purchase or redemption of Bonds so that there will be available on each payment date in the Bond Fund the amount necessary to pay the interest and principal due or
coming due on the Bonds and so that accrued interest will be applied to the installments of interest to which it is applicable. 

(3) At any time when any principal of the Bonds is overdue, the Company shall also have a continuing obligation to pay to the Trustee for
deposit in the Bond Fund an amount equal to interest on the overdue principal at the Maximum Rate, but the installment payments required under this Section shall not otherwise bear interest. Premiums, if any, shall not bear interest.

 (4) Payments by the Company to the Trustee for deposit in the Bond Fund under this Agreement shall discharge the obligation
of the Company to the extent of such payments; provided, that if any moneys are invested in accordance with this Agreement and a loss results therefrom so that there are insufficient funds to pay principal and interest on the Bonds when due,
the Company shall supply the deficiency. 
 (b) Additional Payments. 

(1) Within thirty (30) days after notice from the Authority, the Company shall pay to the Authority all its reasonable costs and
expenses (except general administrative expenses or overhead) incurred by the Authority relating to the issuance of the Bonds, and for any continuing duties or obligations of the Authority relating to the Bonds, this Agreement or any other documents
executed in connection therewith, including any audit or any modification, amendment or interpretation of this Agreement or the Bonds. 
 (2) Within thirty (30) days after notice from the Trustee, any paying agent, tender agent or registrar, the Company shall pay to the Trustee, paying agent, tender agent or registrar, as the case may
be, its reasonable fees and expenses as set forth in Section 11.02 of this Agreement. 
 (c) Company’s Purchase
of Bonds. Notwithstanding any provision in this Agreement to the contrary, if the amount received by the Trustee for the purchase of Bonds tendered pursuant to Section 4.06(a) not sufficient to pay the Purchase Price of such Bonds on
the date when due, the Company shall pay the amount of such deficiency to the Trustee for application in accordance with Section 4.07(b). 
 Section 5.06. Moneys Held in Trust; Unclaimed Funds. The Trustee shall deposit into the Bond Fund, which shall be a separate and segregated trust account for the benefit
of the Bondholders, all moneys received by it for any payment on the Bonds. Money received by the Remarketing Agent or the Trustee from the sale of a Bond under Section 4.11 or for the purchase of a Bond will be held segregated from other funds
of the Remarketing Agent or the Trustee in trust for the benefit of the person from whom such Bond was purchased or the person delivering such purchase money, as the case may be, and will not be invested. The Trustee shall promptly, but in no event
later than 30 days of their original deposit, apply moneys received from the Company in accordance with this Agreement and as specifically directed in writing by the Company. 

  
 31 

 Notwithstanding the provisions of the immediately preceding paragraph, any moneys which
shall be set aside by the Trustee or deposited with the Trustee and which shall remain unclaimed by the holders of such Bonds for a period of one year after the date on which such Bonds shall have become due and payable shall upon request in writing
be paid to the Company, and thereafter the holders of such Bonds shall look only to the Company for payment and then only to the extent of the amount so received without any interest thereon, and the Trustee and the Authority shall have no
responsibility with respect to such moneys. In the absence of any such written request, the Trustee shall from time to time deliver such unclaimed funds to or as directed by pertinent escheat authority, as identified by the Trustee in its sole
discretion, pursuant to and in accordance with applicable unclaimed property laws, rules or regulations. Any such delivery shall be in accordance with the customary practices and procedures of the Trustee and the escheat authority. All moneys held
by the Trustee and subject to this Section shall be held uninvested and without liability for interest thereon. Before making any payment under this Section 5.06, the Trustee shall be entitled to receive at the Company’s expense an
Opinion of Counsel to the effect that said payment is permitted under applicable law. 
 Section 5.07.
Refunding Fund; Notice to Redeem Refunded Bonds. (a) There is hereby established and created a fund to be designated “Polk County Industrial Development Authority Solid Waste Disposal Facility Revenue Refunding Bonds (Tampa
Electric Company Project) Series 2010 Refunding Fund”. On the date of original issuance of the Bonds, upon receipt of the Bond proceeds the Trustee shall deposit such proceeds into the Refunding Fund in accordance with Section 5.01(b) of
this Agreement. Promptly following such deposit, all moneys in the Refunding Fund shall be transferred by the Trustee to the Refunded Bonds Trustee for redemption of the Refunded Bonds in accordance with the Refunded Bonds Agreement. 

(b) The Trustee shall cause to be kept and maintained records of receipts and disbursements pertaining to the Refunding Fund. 

Section 5.08. Investments. So long as the Bonds are outstanding and there is no default hereunder of
which the Trustee is deemed to have knowledge pursuant to Section 11.03, moneys on deposit to the credit of the Funds shall, at the written request of the Company Representative, specifying and directing that such investment of such funds be
made, be invested by the Trustee in Permitted Investments having a maturity no later than the date such moneys will be needed. The Trustee is entitled to conclusively rely on said instructions for purposes of this Section. Absent any such
instructions, such moneys may remain uninvested. 
 The Trustee may commingle any of the money held by it hereunder. The Trustee
may present for redemption or sell any such deposit or investment whenever it shall be necessary in order to provide money to meet any payment of the money so deposited or invested. The Trustee shall not be liable or responsible for any losses,
fees, taxes or other charges resulting from any such deposit or investment presented for redemption or sold. 
 Any interest or
profits on deposits and investments in the Bond Fund received by the Trustee shall be retained therein. 

  
 32 

 The Trustee shall have no responsibility for determining whether any investment is a legally
permitted investment of the Authority or the Company, and the Trustee shall be fully protected in relying upon instructions received in accordance with this Section. 
 ARTICLE VI 
 BOOK-ENTRY SYSTEM 

Section 6.01. Book-Entry System. The Bonds shall be initially issued in the name of Cede & Co.,
as nominee for The Depository Trust Company as the initial Securities Depository and registered owner of such Bonds, and held in the custody of the Securities Depository. A single certificate will be issued and delivered to the Securities
Depository, or a custodian thereof, for the Bonds. The Beneficial Owners will not receive physical delivery of Bond certificates except as provided herein. For so long as the Securities Depository shall continue to serve as securities depository for
such Bonds as provided herein, all transfers of beneficial ownership interests will be made by book-entry only on the records of the Securities Depository, and no investor or other party purchasing, selling or otherwise transferring beneficial
ownership of such Bonds is to receive, hold or deliver any Bond certificate. The Authority, the Company and the Trustee will recognize the Securities Depository or its nominee as the Bondholder of such Bonds for all purposes, including payment,
notices and voting. 
 The Authority and the Trustee covenant and agree, so long as The Depository Trust Company shall continue
to serve as Securities Depository for the Bonds, to meet the requirements of The Depository Trust Company with respect to required notices and other provisions of any Letter of Representations executed with respect to, or any Blanket Letter of
Representations applicable to, the Bonds. 
 The Authority, the Trustee, the Company and the Remarketing Agent may conclusively
rely upon (i) a certificate of the Securities Depository as to the identity of the Participants in the Book-Entry-System and (ii) a certificate of any such Participant as to the identity of, and the respective principal amount of Bonds
beneficially owned by, the Beneficial Owners. 
 Whenever, during the term of the Bonds, the beneficial ownership thereof is
determined by a book-entry at the Securities Depository, the requirements in this Agreement of holding, delivering or transferring Bonds shall be deemed modified to require the appropriate person to meet the requirements of the Securities Depository
as to registering or registering the transfer of the book-entry to produce the same effect. Any provision hereof permitting or requiring delivery of Bonds shall, while the Bonds are in a Book-Entry System, be satisfied by the notation on the books
of the Securities Depository in accordance with applicable law. 
 The Trustee and the Authority, at the direction and expense
of the Company and with the consent of the Remarketing Agent, may from time to time appoint a successor Securities Depository and enter into an agreement with such successor Securities Depository to establish procedures with respect to the Bonds
consistent with current industry practice. Any successor Securities Depository shall be a “clearing agency” registered under Section 17A of the Securities Exchange Act of 1934, as amended. 

  
 33 

 None of the Authority, the Company, the Trustee nor the Remarketing Agent will have any
responsibility or obligation to any Securities Depository, any Participants in the Book-Entry System or the Beneficial Owners with respect to (i) the accuracy of any records maintained by the Securities Depository or any Participant;
(ii) the payment by the Securities Depository or by any Participant of any amount due to any Beneficial Owner in respect of the principal amount or redemption or Purchase Price of, or interest on, any Bonds; (iii) the delivery of any
notice by the Securities Depository or any Participant; (iv) the selection of the Beneficial Owners to receive payment in the event of any partial redemption of the Bonds; or (v) any other action taken by the Securities Depository or any
Participant. 
 Bond certificates are required to be delivered to and registered in the name of the Beneficial Owner if the
Securities Depository determines to discontinue providing its service with respect to the Bonds and no successor Securities Depository is appointed as described above. Such a determination may be made at any time by giving 30 days’ notice to
the Authority, the Company, the Remarketing Agent and the Trustee and discharging its responsibilities with respect thereto under applicable law. 
 The Trustee is hereby authorized to make such changes to the form of bond attached hereto as Exhibit B which are necessary or appropriate to reflect that the Book-Entry System is not in effect,
that a successor Securities Depository has been appointed or that an additional or co-paying agent or tender agent has been designated pursuant to Section 11.14. 
 If at any time, the Securities Depository ceases to hold the Bonds, all references herein to the Securities Depository shall be of no further force or effect. 

Section 6.02. Book-Entry Tenders. 
 (a) Notwithstanding any provision of this Agreement to the contrary, all tenders for purchase during any period in which the Bonds are registered in the name of Cede & Co. (or the nominee of any
successor Securities Depository) shall be subject to the terms and conditions set forth in the letter of representation to DTC and to the procedures and requirements of DTC (or any successor Securities Depository) then in effect. For so long as the
Bonds are registered in the name of Cede & Co., as nominee for DTC, the tender option rights of holders of Bonds with respect to optional tenders may be exercised only by DTC by giving notice of its election to tender Bonds or portions
thereof at the times and in the manner described above. Beneficial Owners will not have any rights to tender Bonds directly to the Trustee or any other tender agent appointed pursuant to Section 11.14 (the “Tender Agent”).
Procedures under which a Beneficial Owner may direct a direct Participant of DTC, or an indirect Participant of DTC acting through a direct Participant of DTC, to exercise a tender option right in respect of Bonds or portions thereof in an amount
equal to all or a portion of such Beneficial Owner’s beneficial ownership interest therein shall be governed by standing instructions and customary practices determined by such direct Participant or indirect Participant. For so long as the
Bonds are registered in the name of Cede & Co., as nominee for DTC, delivery of Bonds required to be tendered for purchase shall be effected by the transfer on the applicable purchase date of a book entry credit to the account of the Tender
Agent of a beneficial interest in such Bonds. 

  
 34 

 (b) Notwithstanding anything expressed or implied herein to the contrary, so long as the
Book Entry System for the Bonds is maintained by the Authority: 
 (1) there shall be no requirement of physical delivery or
wire to or by the Tender Agent, the Remarketing Agent or the Trustee of: 
 (i) any Bonds subject to mandatory or optional
purchase as a condition to the payment of the Purchase Price therefor; 
 (ii) any Bonds that have become Company-Held bonds;
or 
 (iii) any remarketing proceeds of such Bonds or Company-Held Bonds; and 

(2) except as provided in (3) and (4) below, none of the Trustee, the Remarketing Agent, the Tender Agent or any paying agent
shall have any responsibility for paying the Purchase Price of any tendered Bond or for remitting remarketing proceeds to any person; and 
 (3) the Remarketing Agent’s sole responsibilities in connection with the purchase and remarketing of a tendered Bond shall be to: 

(i) remarket, pursuant to the terms of this Agreement, the Bonds (such Bonds, “Tendered Bonds”) for which it has been
timely notified in accordance with the Indenture that have been tendered to the Tender Agent by the Beneficial Owners thereof; 

(ii) notify the requisite parties required under this Agreement by the times required herein of the portion (any such portion,
“Unremarketed Bonds”) of the Tendered Bonds that have not been remarketed on or before such time in respect of the related purchase date therefor; and 
 (iii) purchase, on a delivery versus payment basis, the portion of the Tendered Bonds which have been tendered by Beneficial Owners to the Tender Agent that have been remarketed on or before the related
purchase date therefore (any such portion, “Remarketed Bonds”) from the Tender Agent on the applicable purchase date in such manner as required or provided by DTC’s (or any successor Securities Depository’s) procedures and
requirements then in effect; and 
 (4) the Tender Agent’s sole responsibilities in connection with the purchase and
remarketing of a tendered Bond shall be to: 
 (i) (1) in the event the Remarketing Agent notifies the Tender Agent that there
are any Unremarketed Bonds, draw upon any available liquidity facility or self-liquidity arrangement which draw or funded amount shall be in an amount equal to the sum of (x) the Purchase Price of such Unremarketed Bonds and (y) if the
remarketing proceeds of any of the Remarketed Bonds have not been timely received as described in (ii) below before the time required to draw under the liquidity facility or self liquidity arrangement, the Purchase Price of any such Remarketed
Bonds, and (2) to remit the amount so drawn or received upon receipt 

  
 35 

 
therefore together with the proceeds from the sale of Remarketed Bonds that were timely received before the relevant drawing time in (ii) below, to or upon the order of the Securities
Depository for the benefit of the tendering Beneficial Owners against delivery of the Tendered Bonds; 
 (ii) sell, on a
delivery versus payment basis, the Remarketed Bonds to the Remarketing Agent on the applicable purchase date in such manner as required or provided by DTC’s (or any successor Securities Depository’s) procedures and requirements then in
effect; 
 (iii) act in accordance with the procedures and requirements of DTC then in effect (or those of any successor
Securities Depository); and 
 (iv) remit any proceeds derived from the remarketing of a Company-Held Bond to the Company.

 ARTICLE VII 
 THE PROJECT 
 Section 7.01. Maintenance and
Modifications of Project by Company. Subject to the provisions of Section 7.02, the Company agrees that so long as any Bonds are outstanding it will at its own expense maintain, repair and operate the Project. The Company may make
modifications to completed components of the Project. The Company will not make any modification that will result in the Project not being a “project” with in the meaning of the Act. 

Section 7.02. Removal of Portions of the Project. 

(a) The Company shall not be under any obligation to renew, repair or replace any inadequate, obsolete, worn-out, unsuitable, undesirable
or unnecessary portion of the Project. In any instance where the Company determines that any portion of the Project has become inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary, the Company may remove such portion from the
Project and sell, trade in, exchange or otherwise dispose of such removed portion of the Project without any responsibility or accountability to the Authority, the Trustee or the holders of the Bonds. 

(b) The removal of any portion of the Project pursuant to the provisions of this Section shall not entitle the Company to any
abatement or diminution of the amounts required to be paid with respect to the Bonds. 
 Section 7.03. Assignment,
Leasing and Sale by the Company. This Agreement may be assigned, and the Project may be leased or sold as a whole or in part, by the Company without the consent of either the Authority or the Trustee, subject, however, except as provided in
Section 8.03, to each of the following conditions: 
 (a) no assignment, lease or sale shall relieve the Company from
liability for any of its obligations hereunder, and, in the event of any such assignment, lease or sale, the Company shall continue to remain primarily liable for the payments required to be made pursuant to this Agreement and for the performance
and observance of the other agreements on its part herein contained; 

  
 36 

 (b) the assignee, lessee or buyer shall assume the obligations of the Company hereunder to
the extent of the interest assigned, leased or sold, and may assume the Company’s obligations under Article V; 
 (c) the
Company shall, not later than 10 days prior to the delivery thereof, furnish or cause to be furnished to the Authority and to the Trustee a true and complete copy of the form of each such proposed assignment, lease or conveyance, as the case may be;
and 
 (d) the Company shall, not later than the effective date of such assignment or lease, furnish or cause to be furnished to
the Authority and the Trustee a Favorable Opinion of Tax Counsel that such assignment or lease will not cause the interest on the Bonds to become includable in gross income for federal income tax purposes. 

ARTICLE VIII 
 THE COMPANY 
 Section 8.01. Representations by the
Company. The Company makes the following representations as of the date of delivery of this Agreement: 
 (a) The
Company is a corporation organized and existing under the laws of the State of Florida and has power to enter into this Agreement; 
 (b) By proper corporate action, the officers of the Company executing and attesting this Agreement have been duly authorized to execute and deliver this Agreement; 

(c) Neither the execution or delivery of this Agreement or the consummation of the transactions contemplated herein (including, without
limitation, execution and delivery of the First Mortgage Bonds, if any, nor the fulfillment of or compliance with the terms hereof) will conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, the
Company’s Restated Articles of Incorporation, its bylaws or any indenture, mortgage, deed of trust or other agreement or instrument to which the Company is now a party or by which it is bound; 

(d) The facilities comprising the Project constitute a “project” within the meaning of Section 159.44(2) of the Act;

 (e) The Company has caused and will cause the acquisition, construction and installation of the Project at the Project Unit,
pursuant to the terms and conditions expressed herein, all for the purpose of promoting effective and efficient solid waste disposal throughout the State; 
 (f) Not less than ninety-five percent (95%) of the “net proceeds” of the Bonds will be used to refinance costs of “solid waste disposal facilities” within the meaning of
Section 142(a)(6) of the Code; and 

  
 37 

 (g) All necessary authorizations, approval, consents and other orders of any governmental
authority or agency for the execution and delivery by the Company of this Agreement have been obtained and are in full force and effect. 
 Section 8.02. Access to the Project. The Authority and its duly authorized agents shall have such rights of access to the Project and the Project Unit as may be reasonably necessary to
inspect the Project, but nothing herein shall be construed to provide that the Authority has any duty or obligation to inspect the Project. 
 Section 8.03. Company May Consolidate, Etc., Only on Certain Terms. 
 (a) The Company shall not consolidate with or merge into any other Corporation or convey or transfer its properties and assets substantially as an entirety to any Person, unless the Corporation formed by
such consolidation into which the Company is merged or the Person which acquires by conveyance or transfer the properties and assets of the Company substantially as an entirety (a) shall be, if a Corporation, a Corporation organized and
existing under the laws of (i) the United States of America or any State or the District of Columbia or (ii) a foreign jurisdiction which consents to the jurisdiction of the courts of the United States of America or of any State, and
(b) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of (and premium, if any) and interest on all the Bonds
and the performance of every covenant of this Agreement on the part of the Company to be performed or observed. 
 (b) Upon any
consolidation or merger, or any sale of the property and assets of the Company as, or substantially as, an entirety in accordance with the provisions of this Section 8.03, the Corporation formed by such consolidation or into which the Company
shall have been merged or the Person to which such sale shall have been made shall succeed to and be substituted for the Company with the same effect as if it had been named herein as a party hereto, and thereafter from time to time such Corporation
may exercise each and every right and power of the Company under this Agreement, in the name of the Company or in its own name; and any act or proceeding by any provision of this Agreement required or permitted to be done by any board of officer of
the Company may be done with like force and effect by the like board or officer of any Corporation that shall at the time be the successor of the Company hereunder. 
 (c) The Trustee shall receive and may conclusively rely on and shall be protected in relying upon an Opinion of Counsel as conclusive evidence that any such consolidation, merger or sale, and any such
assumption of payment and performance complies with the provisions of this Section 8.03. 
 Section 8.04.
Indemnification Covenants. 
 (a) The Company hereby agrees to indemnify the Authority, the Trustee, any
paying agent, tender agent and registrar and each of their respective members, directors, officers, employees, agents and attorneys (collectively, the “Indemnified Persons”) against claims arising out of the construction or
operation of the Project and to pay or bond and discharge and indemnify and hold harmless each Indemnified Person from and against (i) any lien or charge upon payments by the Company to or for the account of the Authority hereunder and
(ii) any 

  
 38 

 
taxes, assessments, impositions and other charges of any federal, state or municipal government or political body in respect of the Project. If any such claim is asserted, or any such lien or
charge upon payments, or charges are sought to be imposed, the applicable Indemnified Person shall give prompt notice to the Company, and the Company shall pay the same or bond and assume the defense thereof, with full power to contest, litigate,
compromise or settle the same in its reasonable discretion. 
 (b) The Company shall at all times protect, indemnify and hold
each Indemnified Person harmless against any claim or liability arising from this Agreement, the Bond Resolution, the issuance of the Bonds and all transactions pertaining thereto, including but not limited to any loss or damage to property or any
injury to or death of any person that may be occasioned by any cause whatsoever pertaining to the Project or to the use thereof, in excess of any insurance proceeds available to the Authority in connection therewith, such indemnification to include
reasonable expenses and attorneys’ fees and expenses incurred by any Indemnified Person in connection therewith. Nothing contained herein shall require the Company to indemnify an Indemnified Person for any claim or liability resulting from the
willfully wrongful acts or gross negligence of any Indemnified Person. The provisions of this Section shall survive the termination of this Agreement and resignation or removal of any Indemnified Person. 

(c) When the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 10.01(f) or
Section 10.01(g), the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services of the Trustee are intended to constitute expenses of administration under any applicable Federal or state
bankruptcy, insolvency or other similar law. 
 Section 8.05. Consent to Assignment of Contract Rights by the
Authority. The Company hereby consents to the pledge and assignment by the Authority to the Trustee of (i) all of its rights under this Agreement (except its rights under Section 5.05(b)(1) and Section 10.12 to payment of
certain costs and expenses and under Section 8.04 to indemnification) to the Trustee for the benefit of the holders from time to time of the Bonds as security for payment of the principal of and premium, if any, and interest on the Bonds, and
(ii) any interest it may have in the First Mortgage Bonds, if any, as additional security for the payment of the principal of and premium, if any, and interest on the Bonds. The Company hereby agrees that by virtue of such pledge and assignment
the Trustee may enjoy and enforce all such rights of the Authority hereunder. 
 Section 8.06. Obligations of Company
Hereunder Unconditional. 
 (a) Until such time as the principal of and premium, if any, and interest on
the Bonds shall have been fully paid or deemed to have been paid as provided pursuant to Section 13.01 of this Agreement, to the extent permitted by law, the Company’s obligations under this Agreement shall be absolute and unconditional,
free of deductions and without any abatement, offset, recoupment, diminution or set-off whatsoever, and the Company (i) will not suspend or discontinue payment of any amounts required to be paid by it hereunder, (ii) will perform and
observe all of its other agreements contained in this Agreement, (iii) will not take or authorize or permit, to the extent such action is within the control of the Company, any action with respect to the Project, the proceeds of the Bonds or
any insurance, condemnation or other proceeds derived 

  
 39 

 
directly or indirectly in connection with the Project, which the Company knows or should know will result in the loss of the exclusion of interest on the Bonds from federal gross income, and
(iv) except as permitted by this Agreement, will not terminate this Agreement for any cause, including, without limiting the generality of the foregoing, the occurrence of any act or circumstance that may constitute failure of consideration,
destruction of or damage to the Project, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State or any political subdivision of either of them, any failure of the Authority or the
Trustee to perform or observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with this Agreement, or arising out of any indebtedness or liability at any time owing to the Company by the
Authority or the Trustee. 
 (b) Nothing contained in this Section will be construed to release the Authority from the
performance of any of the agreements on its part herein contained; and in the event the Authority should fail to perform any such agreement on its part, the Company may institute such action against the Authority as the Company may deem necessary to
compel performance of the Authority hereunder so long as such action shall not violate the agreements on the part of the Company contained in Section 8.04 or diminish the amounts required to be paid by the Company under this Agreement. The
Company may also, at its own cost and expense and in its own name or in the name of the Authority, prosecute or defend any action or proceeding or take any other action involving third persons which the Company deems reasonably necessary in order to
secure or protect its right of possession, occupancy and use hereunder, and in such event the Authority hereby agrees to cooperate fully with the Company and, at the Company’s expense, to take all action necessary to effect the substitution of
the Company for the Authority in any action or proceeding if the Company shall so request. 
 Section 8.07. Arbitrage
Bonds. The Company will comply in all respects with the requirements of Section 148 of the Code as it relates to the Bonds. Without limiting the generality of the foregoing, the Company shall pay to the United States any rebate that may
be due with respect to the Bonds under Section 148(f) of the Code and any regulations promulgated thereunder. 
 ARTICLE
IX 
 THE AUTHORITY 
 Section 9.01. Representations by the Authority. The Authority makes the following representations as of the date of delivery of this Agreement: 

(a) The Authority covenants that it is duly authorized under the laws of the State, including particularly and without limitation the
Act, to issue the Bonds authorized hereby and to execute this Agreement, to assign the payments and amounts hereby assigned in the manner and to the extent herein set forth and to undertake the transactions contemplated by this Agreement and to
carry out its obligations hereunder, and that all action on its part for the issuance of the Bonds and the execution and delivery of this Agreement has been duly and effectively taken; and 

(b) By proper action of the Authority, the officers of the Authority executing and attesting this Agreement have been duly authorized to
execute and deliver this Agreement. 

  
 40 

 Section 9.02. No Warranty of Condition or Suitability by the Authority.
THE AUTHORITY MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE PROJECT OR ITS SUITABILITY FOR THE COMPANY’S PURPOSES OR NEEDS. 
 Section 9.03. Payment of Principal, Premium and Interest. The Authority covenants that it will promptly pay the principal of, premium, if any, and interest on every Bond issued under
this Agreement but only from the Revenues and any accrued interest on the Bonds deposited in the Bond Fund as provided herein at the place, on the dates, from the funds and in the manner provided herein and in said Bonds according to the true intent
and meaning thereof. The Authority makes no representation or warranty as to the financial condition of the Company or any other party or value, validity or enforceability of any security for the Bonds or the Company’s obligations under this
Agreement. 
 Section 9.04. Authority To Use Best Efforts To Require Company To Make Payments. The Authority
shall use its best efforts, acting through the Trustee, to require the Company to pay all of the payments and other costs and charges payable by the Company under this Agreement. 

Section 9.05. Take Further Action. The Authority covenants that it shall from time to time execute and deliver such
further instruments and take such further action as may be reasonable and as may be required to carry out the purposes of this Agreement; provided, however, that no such instruments or actions shall pledge the credit of the Authority, and
provided further, however, that the Authority shall not be required to execute and deliver such instruments or take such further actions unless reasonable indemnity is furnished by the Company for any expense or liability to be incurred
therein in accordance with Section 5.05(b)(1) and Section 8.04. The Authority shall be entitled to the advice of counsel (who may be counsel for any party) and shall not be liable for any action taken in good faith in reliance on such
advice. The Authority may rely conclusively on any notice, certificate or other document furnished to it under this Agreement and reasonably believed by it to be genuine. The Authority shall not be liable for any action taken or omitted to be taken
by it in good faith and reasonably believed by it to be within the discretion or power conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed under this Agreement or omitted to be taken by it by reason of
the lack of direction or instruction required for such action, or be responsible for the consequences of any error of judgment reasonably made by it. When any payment or consent or other action by the Authority is called for by this Agreement, the
Authority may defer such action pending receipt of such evidence, if any, as it may reasonably require in support thereof. A permissive right or power to act shall not be construed as a requirement to act. The Authority shall in no event be liable
for the application or misapplication of funds, or for other acts or defaults by any person, firm or Corporation except by its own members, officers, agents and employees. No recourse shall be had by the Company, the Trustee or any Bondholder for
any claim based on this Agreement or the Bonds or any agreement securing the same against any member, officer, agent or employee of the Authority unless such claim is based upon the bad faith, fraud or deceit of such person. 

Section 9.06. No Disposition of Revenues. The Authority agrees that, except for its pledge and assignment to the
Trustee hereunder, the Authority will not pledge, assign, mortgage, encumber, convey or otherwise transfer any of its interest or rights to the Revenues or otherwise 

  
 41 

 
under this Agreement; provided, however, that if the laws of the State at the time shall so permit, nothing contained in this Section shall prevent the consolidation of the Authority
with, or merger of the Authority into, any public corporation the property and income of which are not subject to taxation; and provided, further, that upon any such consolidation, merger or transfer, the due and punctual payment of the
principal of, premium, if any, and interest on the Bonds according to their tenor, and the due and punctual performance and observance of all the agreements and conditions of this Agreement to be kept and performed by the Authority, shall be
expressly assumed in writing by the entity resulting from such consolidation or surviving such merger. 

Section 9.07. No Extensions. In order to prevent any accumulation of claims for interest after maturity, the Authority
will not directly or indirectly extend or assent to the extension of the time of payment of claims of interest on any of the Bonds and will not directly or indirectly be a party to or approve any such arrangement by purchasing or funding such claims
for interest or in any other manner. In case any such claim for interest shall be extended or funded in violation hereof, such claim for interest shall not be entitled, in case of any default hereunder, to the benefit or security of this Agreement
except subject to the prior payment in full of the principal of and premium, if any, on all Bonds issued and outstanding hereunder, and all claims for interest which shall not have been so extended or funded. 

Section 9.08. Covenant To Perform Further Acts. The Authority covenants that it will do, execute, acknowledge and
deliver, or cause to be done, executed, acknowledged and delivered, such supplements and amendments to this Agreement and such further acts, instruments and transfers as necessary or as the Trustee may reasonably require in order to fully preserve,
protect and perfect the rights and security of the Bondholders and the rights of the Trustee under this Agreement, provided, however, that the Authority shall not be required to execute and deliver such documents or take such further actions
unless reasonable indemnity is furnished by the Company for any expense or liability to be incurred therein in accordance with Section 5.05(b)(1) and Section 8.04 
 Section 9.09. Faithful Performance. The Authority covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions required to be
performed by it and contained in this Agreement, in any and every Bond executed and delivered hereunder and in all of its proceedings pertaining hereto. 
 ARTICLE X 
 DEFAULT AND LIMITATIONS OF LIABILITY 

Section 10.01. Events of Default. If any of the following events occur, it is hereby declared to
constitute an “Event of Default”: 
 (a) Default in the due and punctual payment of interest on any Bond;

 (b) Default in the due and punctual payment of the principal of, or premium, if any, on any Bond, whether at the stated
maturity thereof, redemption thereof pursuant to Section 4.01, or upon the acceleration thereof; 

  
 42 

 (c) Default in the due and punctual payment of the Purchase Price of any Bond required to be
purchased in accordance with its terms, including without limitation the last paragraph of paragraph 6 of the Bonds; 
 (d)
First Mortgage Bonds shall have been delivered in connection with the Bonds and a “default” as defined in Section 12.01 of the First Mortgage shall have occurred and be continuing; 

(e) A trustee, receiver, custodian or similar official or agent shall be appointed for the Company or for any substantial part of its
property and such trustee or receiver shall not be discharged within sixty (60) days; 
 (f) The Company shall commence a
voluntary case under the federal bankruptcy laws, or shall make an assignment for the benefit of creditors, or shall apply for, consent to or acquiesce in the appointment of, or taking possession by, a trustee, receiver, custodian or similar
official or agent for itself or any substantial part of its property; 
 (g) The Company shall have an order or decree for
relief in an involuntary case under the federal bankruptcy laws entered against it, or a petition seeking reorganization, readjustment, arrangement, composition, or other similar relief as to it under the federal bankruptcy laws or any similar law
for the relief of debtors shall be brought against it and shall be consented to by it or shall remain undismissed for sixty (60) days; and 
 (h) The Company or the Authority shall fail to observe or perform in any material way any covenant, condition, agreement or provision contained in the Bonds or in this Agreement on the part of the Company
or the Authority to be performed other than those set forth in clause (a), (b), (c), (d), (e), (f) or (g) of this Section, and such failure shall continue for ninety (90) days after written notice specifying such failure and requiring
the same to be remedied shall have been given to the Company and the Authority by the Trustee, which notice may be given by the Trustee in its discretion and shall be given by the Trustee at the written request of the holders of not less than
twenty-five percent (25%) in aggregate principal amount of all Bonds then outstanding, unless the Trustee and Bondholders of a principal amount of Bonds not less than the principal amount of the Bonds the Bondholders of which requested such
notice, as the case may be, shall agree in writing to an extension of such period prior to its expiration; provided however, that the Trustee and the Bondholders of such principal amount of Bonds, as the case may be, shall be deemed to have
agreed to an extension of such period if corrective action is initiated by the Authority or the Company on behalf of the Authority within such period and is being diligently pursued. 

Section 10.02. Acceleration. Upon the occurrence and continuance of any Event of Default described in clause (a), (b),
(c), (d), (e) or (h) of the preceding paragraph and further upon the condition that if any First Mortgage Bonds shall have been delivered, all first mortgage bonds outstanding under the First Mortgage shall have become immediately due and
payable in accordance with the terms of the First Mortgage, the Trustee may, and at the written request of Bondholders of not less than 25% in principal amount of the Bonds then outstanding shall, by written notice to the Authority and to the
Company declare the Bonds to be immediately due and payable, whereupon, and upon the occurrence of an Event of Default as specified in clause (f) or 

  
 43 

 
(g) of the preceding paragraph without any further notice or action by the Trustee or the Authority, the Bonds shall, without further action, become and be immediately due and payable, any
provisions hereof or the Bonds to the contrary notwithstanding, and the Trustee shall give notice of acceleration to the Authority, and shall give notice thereof by mail to the Bondholders. 

The provisions of the preceding paragraph, however, are subject to the condition that if, after the principal of the Bonds shall have
been so declared to be due and payable, and before any judgment or decree for the payment of moneys due shall have been obtained or entered as hereinafter provided, the Company or the Authority shall cause to be deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Bonds and the principal of any and all Bonds which shall have become due otherwise than by reason of such declaration (with interest upon such principal and, to the extent
permissible by law, on overdue installments of interest, at the rate per annum specified herein) and such amounts as shall be sufficient to cover reasonable compensation and reimbursement of expenses payable to the Trustee and any paying agent,
tender agent and registrar, and all Events of Default hereunder other than nonpayment of the principal of Bonds which shall have become due by said declaration shall have been remedied, then, in every such case, such Event of Default shall be deemed
waived and such declaration and its consequences rescinded and annulled, and the Trustee shall promptly give written notice of such waiver, rescission or annulment to the Authority and the Company, and shall give notice thereof to the Bondholders;
but no such waiver, rescission and annulment shall extend to or affect any subsequent Event of Default or impair any right or remedy consequent thereon; provided, however, that if any First Mortgage Bonds shall have been delivered in
connection with the Bonds, any waiver of “default” under the First Mortgage and a rescission and annulment of its consequences shall constitute a waiver of the corresponding Event of Default under this Agreement and a rescission and
annulment of the consequences thereof, and the Trustee shall promptly give written notice of such waiver, rescission and annulment to the Authority and the Company, and notice to the Bondholders in the same manner as a notice of redemption under
Section 4.04; but no such waiver, rescission and annulment shall extend to or affect any subsequent default or Event of Default or impair any right or remedy consequent thereon. 

Section 10.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy by proceeding at law or in equity to collect the principal of and premium, if any, or interest on the Bonds or to enforce the performance of any provision of the Bonds or this Agreement. 

The Trustee may maintain a proceeding even if it does not possess any of the Bonds or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Bondholder 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. No remedy is exclusive of
any other remedy. All available remedies are cumulative. 
 Section 10.04. Waiver of Past
Defaults. A majority in aggregate principal amount of the outstanding Bonds by notice to the Trustee may waive an existing Event of Default and its consequences. When an Event of Default is waived, it is cured and stops continuing, but no
such waiver shall extend to any subsequent or other Event of Default or impair any right consequent to it. 

  
 44 

 Section 10.05. Control by Majority. The holders of a
majority in aggregate principal amount of Bonds outstanding 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 it. Except for the giving of
notices of default or acceleration of the Bonds as requested pursuant to Section 10.02, the Trustee may refuse to follow any direction that conflicts with law or this Agreement or that the Trustee determines is unduly prejudicial to the rights
of other Bondholders or if the Trustee has not been indemnified pursuant to Section 11.01(k). 

Section 10.06. Limitation on Suits. A Bondholder may not pursue any remedy with respect to this
Agreement or the Bonds unless (a) the Bondholder gives the Trustee notice stating that an Event of Default is continuing, (b) the holders of at least 25% in aggregate principal amount of the outstanding Bonds make a written request to the
Trustee to pursue the remedy, (c) such Bondholder or Bondholders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense, and (d) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer of indemnity. 
 Section 10.07. Rights of Bondholders to Receive
Payment. Notwithstanding any other provision of this Agreement, the right of any Bondholder to receive payment of principal of, premium, if any, and interest on a Bond, on or after the due dates expressed in the Bond, or to bring suit for
the enforcement of any such payment on or after such dates, shall not be impaired or affected without the consent of the Bondholder. 
 Section 10.08. Collection Suit by Trustee. If an Event of Default under paragraph (a), (b), (c) or (h) of Section 10.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust (but only from the sources provided herein, including without limitation, the limitations under Section 9.03 hereof) for the whole amount remaining unpaid.

 Section 10.09. Trustee May File Proofs of Claim. The Trustee may 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 and the Bondholders allowed in any judicial proceedings relative to the Company, its creditors or property and, unless prohibited by law or
applicable regulations, may vote on behalf of the Bondholders in any election of a trustee in bankruptcy or other person performing similar functions. 
 Section 10.10. Priorities. If the Trustee collects any money pursuant to this Article or if any moneys shall be on deposit in the Bond Fund at the time of the acceleration
of the Bonds pursuant to Section 10.02 or shall be deposited into the Bond Fund as a result of such an acceleration, it shall pay out such moneys in the following order: first, to the Trustee for amounts to which it is entitled under
Section 11.02; second, to holders for amounts due and unpaid on the Bonds for principal, premium and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Bonds for principal,
premium and interest, respectively; and third, to the Company. The Trustee may fix a payment date for any payment to the Bondholders. 
 Section 10.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Agreement or in any suit against the Trustee for any action taken
or omitted by 

  
 45 

 
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the cost of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees and expenses, 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 does not apply
to a suit by the Trustee, a suit by a Bondholder pursuant to Section 10.06 or a suit by holders of more than 25% in aggregate principal amount of Bonds outstanding. 
 Section 10.12. Agreement to Pay Attorneys’ Fees and Expenses. In the event the Company should default under any of the provisions of this Agreement or the First
Mortgage if any First Mortgage Bonds shall have been delivered to the Trustee and the Authority should employ attorneys or incur other expenses for the collection of any amounts due from the Company hereunder or the enforcement of performance or
observance of any obligation or agreement of the Company herein contained, the Company agrees that it will on demand therefor pay to the Authority the reasonable fees and expenses of such attorneys and such other reasonable expenses so incurred by
the Authority. 
 Section 10.13. Remedies in Article X in Addition to Remedies in the First
Mortgage. The remedies conferred in this Article shall be in addition to any remedies available to the Trustee as holder of the First Mortgage Bonds, if any, under the First Mortgage. 

ARTICLE XI 

THE TRUSTEE AND THE REMARKETING AGENT 
 Section 11.01. Conditions of Trust. The Trustee (which term shall be deemed to include for purposes of this Section 11.01 the paying agent and registrar, unless the
context otherwise requires) hereby accepts the trusts imposed upon it by this Agreement, and agrees to perform said trusts, but only upon and subject to the following express terms and conditions: 

(a) The Trustee may execute any of the obligations or powers hereof and perform any of its duties either directly or by or through
attorneys, agents, receivers or employees and the Trustee shall not be responsible for any misconduct or negligence on the part of any attorney, agent, receiver or employee appointed with due care by it hereunder. 

(b) The Trustee may consult with counsel of its selection concerning all matters of trust hereof and duties hereunder, and the advice of
such counsel or any opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

(c) The Trustee shall not be responsible for, nor have any liability with respect to, any recital herein or in the Bonds (except in
respect of the certificate of the Trustee endorsed on the Bonds), the validity of this Agreement or of any supplements hereto or instruments of further assurance, the maintenance, validity or sufficiency of the security for the Bonds issued
hereunder or intended to be secured hereby, or any lien or property to be created hereby, but the Trustee may require of the Authority or the Company full information and advice as to the performance of the covenants, conditions and agreements
aforesaid. 

  
 46 

 (d) The Trustee shall not be accountable for, or have any liability with respect to, the use
of any Bonds authenticated or delivered hereunder after such Bonds shall have been delivered in accordance with instructions of the Authority. The Trustee may become the owner of Bonds secured hereby with the same rights that it would have if it
were not the Trustee. 
 (e) The Trustee may conclusively rely and shall be fully protected in acting upon any notice, request,
consent, certificate, order, affidavit, letter, telegram or other paper or document believed in good faith to be genuine and correct and to have been signed or sent by the proper person or persons. Any action taken by the Trustee pursuant to this
Agreement upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the owner of any Bond shall be conclusive and binding upon all future owners of the same Bond or portions
thereof and upon Bonds issued in exchange therefor or for portions thereof or in place thereof. 
 (f) As to the existence or
nonexistence of any fact or as to the sufficiency or validity of any instrument, paper or proceeding, the Trustee shall be entitled to rely upon a certificate of the Authority signed by an Authority Representative or any certificate of the Company
signed by a Company Representative as sufficient evidence of the facts therein contained, and prior to the occurrence of a default of which the Trustee has been notified as provided in subsection (h) of this section, or of which by said
subsection it is deemed to have notice, the Trustee shall also be at liberty to accept a similar certificate to the effect that any particular dealing, transaction or action is necessary or expedient, but may at its discretion secure such further
evidence deemed necessary or advisable, but shall in no case be bound to secure the same. The Trustee may accept a certificate of the Secretary of the Authority under its seal to the effect that a resolution has been duly adopted, and is in full
force and effect. 
 (g) The permissive right of the Trustee to do things enumerated in this Agreement shall not be construed as
a duty, and the Trustee shall not be answerable for other than its gross negligence or willful misconduct. After the occurrence and during the continuance of a default hereunder, in the exercise of such of the rights and powers vested in it by this
Agreement, the Trustee shall use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 

(h) The Trustee shall not be required to take notice or be deemed to have notice of any default hereunder except (i) failure by the
Authority to cause to be made any of the payments to the Trustee required to be made by Article V hereof and (ii) default of which a Responsible Officer of the Trustee has actual knowledge, unless the Trustee shall be specifically notified in
writing of such default by the Authority or by the holders of at least 25% in aggregate principal amount of Bonds then Outstanding; and in the absence of such notice so delivered the Trustee may conclusively assume there is no default except as
aforesaid. For the purposes hereof, the Trustee shall not be deemed to have actual knowledge of any default or Event of Default unless a trust officer, assistant trust officer or other person charged with the administration of the obligations of the
Trustee hereunder shall during the course of his duties have actual knowledge thereof. 
 (i) The Trustee shall not be
personally liable for any debts contracted or for damages to persons or to personal property injured or damaged or for salaries or nonfulfillment of contracts during any period in which it may be in the possession of or managing the real and
tangible personal property as in this Agreement provided. 

  
 47 

 (j) The Trustee shall not be required to give any bond or surety in respect of the execution
of the said trusts and powers or otherwise in respect of the premises. 
 (k) No provision of this Agreement shall require the
Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers. The Trustee may refuse to perform any duty or exercise any right
or power unless it receives indemnity satisfactory to it against any loss, liability or expense, but the Trustee shall not require indemnity as a condition to making payment on the Bonds, provided that moneys are available for such purpose in the
Bond Fund, or declaring the principal of and interest on the Bonds to be due immediately under Section 10.02, or with respect to its duties under Section 5.07. 
 (l) All money received by the Trustee or any paying agent shall, until used or applied or invested as herein provided, be held in trust for the purposes for which it was received but need not be
segregated from other funds except to the extent required by this Agreement or by law. 
 (m) The Trustee shall not be bound to
make an investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties, 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 during normal business hours and upon reasonable notice the books, records and premises of the Authority, personally or by agent or by attorney at the expense of the Company and shall incur
no liability of any kind by reason of such inquiry or investigation. 
 (n) 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. 
 (o) The Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good
faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement. 
 (p) 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 11.02. Reimbursement of Administrative Expenses. 

(a) The Trustee, any paying agent, tender agent and registrar shall be entitled to payment and/or reimbursement for Administrative
Expenses, including such fees as shall be 

  
 48 

 
agreed in writing between the Company and the Trustee for their services rendered hereunder and all advances, counsel fees and other expenses reasonably and necessarily made or incurred by them
in connection with such services under this Agreement. The Trustee and any paying agent shall be entitled to payment and reimbursement for their reasonable fees and charges as paying agents for the Bonds as hereinabove provided. Upon the occurrence
of an Event of Default, but only upon an Event of Default, the Trustee and any paying agent shall have a first lien with right of payment prior to payment on account of interest or principal of any Bond for the foregoing advances, fees, costs and
expenses incurred by them, respectively, or any indemnification due, on moneys held by the Trustee hereunder, other than moneys held for the payment of Bonds which are deemed to have been purchased or paid (including payment upon acceleration of
maturity) under the terms of this Agreement. 
 (b) All fees, charges and other compensation to which the Trustee, any paying
agent, tender agent or registrar may be entitled under the provisions of this Agreement are required to be paid by the Company, and, accordingly, the Authority shall not be liable in any respect to indemnify such entities for fees, charges and other
compensation to which they may be entitled and, by acceptance of the trusts hereunder, each entity shall be deemed to have agreed to the foregoing. 
 (c) The provisions of this Section shall survive the termination of this Agreement. 
 Section 11.03. Notice of Defaults. If an Event of Default occurs and is continuing, the Trustee will mail, first class, postage prepaid, notice of the Event of Default to
the Bondholders as promptly as practicable after the Trustee has knowledge of the Event of Default. The Trustee shall not be deemed to have knowledge of any event which, with the giving of notice or lapse of time or both, would be an Event of
Default or of any Event of Default, except an Event of Default pursuant to Section 10.01(a), Section 10.01(b), or Section 10.01(c), unless a responsible representative of the Trustee receives written notice of such event or Event of
Default. 
 Section 11.04. Trustee’s Right To Intervene; First Mortgage Bonds.

 (a) In any judicial proceedings to which the Authority is a party and which in the opinion of the Trustee and its
counsel has a substantial bearing on the interests of the Bondholders, the Trustee may intervene on behalf of Bondholders and shall do so if requested in writing by the holders of at least 25% of the aggregate principal amount of Bonds then
outstanding. The rights and obligations of the Trustee under this Section are subject to the approval of a court of competent jurisdiction. 
 (b) Except as required to effect an assignment to a successor Trustee, the Trustee shall not sell, assign or transfer any First Mortgage Bond, if any, and the Trustee is authorized to enter into an
agreement with the Company to such effect, including a consent to the issuance of stop transfer instructions to the First Mortgage Trustee. 
 (c) If First Mortgage Bonds shall have been delivered in connection with the Bonds, the Trustee, as a holder of such First Mortgage Bonds, shall attend any meeting of first mortgage bondholders under the
First Mortgage as to which it receives due notice. Either at such meeting, or otherwise where consent of holders of first mortgage bonds of the Company is sought without 

  
 49 

 
a meeting, the Trustee shall vote as such holder, or shall consent with respect thereto, proportionately with what the Trustee reasonably believes will be the vote or consent of all other holders
of first mortgage bonds of the Company then outstanding and eligible to vote or consent. 
 Notwithstanding the foregoing, the
Trustee shall not vote as such holder in favor of, or give its consent to, any action which would materially adversely affect the interests of the Bondholders, except upon notification by the Trustee to the Bondholders of such proposal and consent
thereto of the holders of at least two-thirds (2/3) in aggregate principal amount of the Bonds then outstanding or, if such proposal would so affect the rights of some but less than all the outstanding Bonds, the consent thereto of the holders
of at least two-thirds (2/3) in aggregate principal amount of all Bonds so affected voting as a class. 

Section 11.05. Successor Trustee Upon Merger, Etc. Any Corporation or association into which the Trustee
may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any Corporation or association resulting from any such
conversion, sale, merger, consolidation or transfer to which it is a party, ipso facto, shall be and become successor Trustee hereunder and vested with all the trusts, powers, discretions, immunities, privileges and all other matters as was its
predecessor, without the execution or filing of any instrument or any further acts, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding. The successor Trustee shall give the Authority, the
Company, the Remarketing Agent and each Bondholder written notice of its succession as successor Trustee promptly after such succession. 
 Section 11.06. Resignation of Trustee. A Trustee and any successor Trustee may resign by giving 60 days’ written notice by first class mail to the Authority, the
Company, the Remarketing Agent and each Bondholder as shown on the records of the Trustee, prior to the date specified in such notice when such resignation shall take effect. Such notice to the Authority, the Company, the Remarketing Agent and each
Bondholder may be served personally or sent by registered mail or telegram. Such resignation shall take effect only upon the appointment of a successor or temporary Trustee by the Bondholders or by the Authority as hereinafter provided. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee. 
 Section 11.07. Removal of Trustee.
The Trustee may be removed at any time by an instrument or concurrent instruments in writing delivered to the Trustee, the Authority, the Company and the Remarketing Agent and signed by the owners of a majority in aggregate principal amount of Bonds
then outstanding. In addition, provided that no Event of Default, or event or circumstance which with the passage of time or the giving of notice could become an Event of Default, has occurred and is continuing, the Trustee may be removed at any
time by an instrument or concurrent instruments in writing delivered to the Authority, the Trustee, the Remarketing Agent and the Bondholders and signed by the Company, such removal to be effective only upon the acceptance of such appointment by a
qualified successor Trustee in accordance with Section 11.09. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee being
removed may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee. 

  
 50 

 Section 11.08. Appointments of Successor Trustee. In case
the Trustee hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in the case it shall be taken under control of any public officer or
officers, or of a receiver appointed by a court, a successor may be appointed by the owners of a majority in aggregate principal amount of Bonds then outstanding, by an instrument or concurrent instruments in writing signed by such owners, or by
their attorneys in fact, duly authorized; provided, however, that in case of such vacancy the Company shall forthwith appoint a temporary successor Trustee to fill such vacancy until a successor Trustee shall be appointed by the Bondholders
in the manner above provided, and any such temporary successor Trustee as appointed by the Company shall immediately and without further act be superseded by the successor Trustee so appointed by such Bondholders. Every such successor Trustee and
temporary successor Trustee appointed pursuant to the provisions of this Section shall be a Corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise
corporate trust powers having a reported capital and surplus of not less than $100,000,000, subject to supervision or examination by federal or state authority, if there be such an institution willing, qualified and able to accept the trust upon
reasonable or customary terms. 
 Section 11.09. Acceptance by Successor Trustee. Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the Authority, the Company and the Remarketing Agent an instrument in writing accepting such appointment hereunder, and thereupon such
successor, without any further act, deed or conveyance, shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of its predecessors; but such predecessor Trustee shall nevertheless, upon payment of
its charges hereunder, on the written request of the Company, or of its successor, execute and deliver an instrument transferring to such successor Trustee all the estate, properties, rights, powers and trusts, duties and obligations of such
predecessor hereunder, and every predecessor Trustee shall deliver all securities and money held by it as Trustee hereunder to its successor. Should any instrument in writing from the Company be required by a successor Trustee for more fully and
certainly vesting in such successor the estate, rights, powers and duties hereby vested or intended to be vested in the predecessor, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Company.

 Section 11.10. Reliance Upon Instruments. The resolutions, opinions, certificates and other
instruments provided for in this Agreement may be accepted by the Trustee as conclusive evidence of the facts and conclusions stated therein and shall be full protection and authority to the Trustee for the withdrawal of cash hereunder, and the
taking or omitting to take of any other action under this Agreement. 
 Section 11.11. Former Trustee
No Longer Custodian or Paying Agent. Any Trustee which has resigned or been removed shall cease to be custodian of the funds and, if it has been so appointed, paying agent, and the successor Trustee shall become such custodian, and a
successor paying agent shall be appointed under Section 11.14. 

  
 51 

 Section 11.12. Directions From Company; Company May
Perform. 
 (a) Whenever after a reasonable written request by the Company the Authority shall fail, refuse or neglect
to give any direction to the Trustee or to require the Trustee to take any other action which the Authority is required to have the Trustee take pursuant to the provisions of this Agreement, the Company instead of the Authority may give any such
direction to the Trustee or require the Trustee to take any such action, and the Trustee, upon receipt of proof of delivery of the request to the Authority and unless otherwise instructed by the Authority, is hereby irrevocably empowered and
directed to accept such direction from the Company as sufficient for all purposes of this Agreement. The Company shall have the right to cause the Trustee to comply with any of the Trustee’s obligations under this Agreement to the same extent
that the Authority is empowered so to do. 
 (b) The Authority and the Trustee acknowledge that certain actions or failures to
act by the Authority under this Agreement may create or result in a default hereunder. The Authority hereby agrees that the Company may perform any and all acts or take such action as may be necessary for and on behalf of the Authority to prevent or
correct said default, and the Trustee agrees that it shall take or accept such performance by the Company as performance by the Authority in such event. 
 Section 11.13. Trading in Bonds by Trustee, Paying Agent, Tender Agent or Registrar. The Trustee, any paying agent, tender agent or registrar, in its individual capacity,
may in good faith buy, sell, own, hold and deal in any of the Bonds issued hereunder, and may join in any action which any Bondholders may be entitled to take with like effect as if it did not act in any capacity hereunder. The Trustee, any paying
agent, tender agent or registrar, in its individual capacity, either as principal or agent, may also engage in or be interested in any financial or other transaction with the Authority or the Company, and may act as depositary, trustee, or agent for
any committee or body of Bondholders secured hereby or other obligation of the Authority as freely as if it did not act in any capacity hereunder. 
 Section 11.14. Appointment of Separate Paying Agent and/or Tender Agent. If, at any time, the Securities Depository ceases to hold the Bonds, with the effect that the
Bonds are no longer subject to the Book Entry System, then the Authority and the Trustee, acting at the request of the Company, may appoint one or more banks or trust companies to act as paying agent and/or tender agent for the Bonds hereunder. Any
such paying agent or tender agent shall be a bank or trust company organized under the laws of the United States of America or any state thereof, shall have a reported capital and surplus of at least $100,000,000 and a corporate trust office located
in New York, New York at which Bonds may be presented for payment or purchase and shall perform such duties and responsibilities as may be delegated to it hereunder. If such a paying agent or tender agent is appointed, then all references herein to
the “Trustee” shall include such paying agent or tender agent to the extent of the duties performed by such entity. 

Section 11.15. Entities Serving in More Than One Capacity. Anything in this Agreement to the contrary
notwithstanding, the same entity may serve hereunder as the Trustee, the paying agent, tender agent and the registrar and in any other combination of such capacities, to the extent permitted by law. 

  
 52 

 Section 11.16. Duties of Remarketing Agent. Except as
otherwise described herein, the Remarketing Agent will set the interest rates on the Bonds and perform the other duties provided for in Section 3.02 and will remarket the Bonds as provided in Section 4.11, subject to any provisions of a
remarketing agreement between the Company and the Remarketing Agent. The Remarketing Agent may for its own account or as broker or agent for others deal in Bonds and may do anything any other Bondholder may do to the same extent as if the
Remarketing Agent were not serving as such. 
 Section 11.17. Eligibility of Remarketing Agent.
The Remarketing Agent shall be a bank, trust company or member of the Financial Industry Regulatory Authority organized and doing business under the laws of the United States or any state or the District of Columbia, will have a combined capital
stock, surplus and undivided profits of at least $15,000,000 as shown in its most recently published annual report, will be a Participant in the Securities Depository and will be authorized by law to perform all the duties imposed upon it by this
Agreement. Any Remarketing Agent or its corporate parent shall be rated at least Baa3/P-3 or otherwise qualified by Moody’s or have an equivalent rating of another rating agency. 

Section 11.18. Replacement of Remarketing Agent. The Remarketing Agent may resign by notifying the
Authority, the Trustee and the Company. The Company may remove the Remarketing Agent at any time by an instrument signed by the Company and filed with the Remarketing Agent, the Authority and the Trustee at least 30 days prior to the effective date
of such removal (which will not in any event occur prior to the appointment of a successor Remarketing Agent). A new Remarketing Agent may be appointed by the Company upon the resignation or removal of the Remarketing Agent. The Trustee shall
promptly notify the Bondholders of any change in the Remarketing Agent. 
 Section 11.19. Compensation
of Remarketing Agent. The Remarketing Agent will not be entitled to any compensation from the Authority or the Trustee or to any property held under this Agreement but must make separate arrangements with the Company for compensation.

 Section 11.20. Successor Remarketing Agent. If the Remarketing Agent consolidates with,
merges or converts into, or transfers all or substantially all its assets (or, in the case of a bank or trust company, its corporate trust assets) to another Corporation, the resulting, surviving or transferee Corporation without any further act
shall be the successor Remarketing Agent, provided that such successor shall be eligible under the applicable provisions in this Article. 
 ARTICLE XII 
 AMENDMENT OF OR SUPPLEMENT TO THE AGREEMENT 

Section 12.01. Supplemental Agreements Without Notice to or Consent of Bondholders. The Authority, the
Company and the Trustee may without the consent of, or notice to, any of the Bondholders, enter into an agreement or agreements supplemental to this Agreement for any one or more of the following purposes: 

(a) to cure any ambiguity, defect or omission in this Agreement, or otherwise amend this Agreement, in such manner as shall not impair
the security of the Bonds; 

  
 53 

 (b) to grant to or confer upon the Trustee for the benefit of the Bondholders any additional
rights, remedies, powers or authorities that may lawfully be granted to or conferred upon the Bondholders or the Trustee; 
 (c)
(i) to evidence any succession to the Authority and the assumption by its successor of the covenants, agreements and obligations of the Authority under this Agreement and the Bonds, (ii) to add additional covenants of the Authority, or
(iii) to surrender any right or power herein conferred upon the Authority; 
 (d) to subject to this Agreement additional
revenues, properties or collateral, which may be accomplished by, among other things, entering into instruments with the Company and/or other persons providing for further security, covenants, limitations or restrictions for the benefit of the
Bonds; 
 (e) to modify, amend or supplement this Agreement or any Agreement supplemental hereto in such manner as may be
required to permit the qualification hereof and thereof under the Trust Indenture Act of 1939 or any similar federal statute hereafter in effect, and to add to this Agreement or any Agreement supplemental hereto such other terms, conditions and
provisions as may be required by said Trust Indenture Act of 1939 or similar federal statute; 
 (f) to amend any provision
pertaining to matters under federal income tax laws, including Section 148(f) of the Code required to maintain the tax exempt status of the Bonds; 
 (g) to authorize different authorized denominations of the Bonds and to make correlative amendments and modifications to this Agreement regarding exchangeability of Bonds of different authorized
denominations, redemptions of portions of Bonds of particular authorized denominations and similar amendments and modifications of a technical nature; 
 (h) to increase or decrease the number of days specified for the giving of notices in Section 4.06 and to make corresponding changes to the period for notice of mandatory tender of the Bonds;
provided that no decreases in any such number of days shall become effective except while the Bonds bear interest at a Daily Rate or a Weekly Rate and until 30 days after the Trustee has given notice to the owners of the Bonds; 

(i) to provide for an uncertificated system of registering the Bonds or to provide for the change to or from a Book Entry System for the
Bonds; 
 (j) to evidence the succession of a new Trustee or the appointment by the Trustee or the Authority of a co-trustee;

 (k) to make any change related to the Bonds that does not materially adversely affect the rights of any Bondholder; and

 (l) to make any other changes to this Agreement that take effect as to any or all remarketed Bonds following a mandatory
tender. 

  
 54 

 Section 12.02. Supplemental Agreements Requiring Consent of
Bondholders. 
 (a) Exclusive of supplemental agreements covered by Section 12.01 and subject to the terms and
provisions contained in this Section, and not otherwise, the holders of not less than a majority in aggregate principal amount of the Bonds outstanding shall have the right, from time to time, to consent to and approve the execution by the Company,
the Authority and the Trustee of such other agreement or agreements supplemental hereto as shall be deemed necessary and desirable by the Trustee for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of
terms or provisions contained in this Agreement or in any agreement supplemental hereto; provided, however, that nothing in this Section contained shall permit, or be construed as permitting (i) without the consent of the
holder of the affected Bond, an extension of the maturity of the principal of or the interest on any Bond issued hereunder, or a reduction in the principal amount of, or redemption premium on, any Bond or the rate or rates of interest thereon,
(ii) without the consent of the holders of all Bonds outstanding, a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental agreement, (iii) without the consent of the holders of the affected
Bonds, the creation of any priority or preference of one Bond over another; (iv) without the consent of the holder of the affected Bond, the making of any Bond redeemable other than in accordance with its terms, or (v) without the consent
of the holders of all Bonds outstanding, a reduction in the percentage of the Bonds required to be represented by the holders of Bonds giving their consent to any amendment. 
 (b) If at any time the Company or the Authority shall request the Trustee to enter into any such supplemental agreement for any of the purposes of this Section, the Trustee shall, upon being
satisfactorily indemnified with respect to expenses, cause notice of the proposed execution of such supplemental agreement to be mailed to the holder of each Bond at his address as it appears on the registration books hereinabove provided for. Such
notice shall be prepared by the Company and shall briefly set forth the nature of the proposed supplemental agreement and shall state that copies thereof are on file at the designated office of the Trustee for inspection by all Bondholders. If,
within sixty (60) days or such longer period as shall be prescribed by the Company following the mailing of such notice, the holders of the requisite aggregate principal amount of the Bonds outstanding at the time of the execution of any such
supplemental agreement shall have consented to and approved the execution thereof as herein provided, no holder of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any
manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee, the Company or the authority from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such
supplemental agreement as in this Section permitted and provided, this Agreement shall be and be deemed to be modified and amended in accordance therewith and without the necessity for notation on the outstanding Bonds. 

Section 12.03. Reliance on Opinion of Counsel; Favorable Opinion of Tax Counsel Required. The Trustee
and the Authority are authorized to join in the execution and delivery of any supplemental agreement pursuant to Section 12.01 and Section 12.02 and in so doing they shall be provided with and fully protected by an Opinion of Counsel that
such supplemental agreement is so permitted and has been duly authorized by the Company, that all things necessary to make it a valid and binding supplemental agreement have been done and that upon execution it will be valid and binding upon the
Company and the Authority in accordance with its terms; provided, however, that neither the Trustee nor the Authority shall be required to enter into any 

  
 55 

 
supplemental agreement that it reasonably deems to be prejudicial to its interests. Before the Authority and the Trustee shall enter into any supplemental agreement pursuant to Section 12.01
or Section 12.02 there shall have been delivered to the Authority and the Trustee a Favorable Opinion of Tax Counsel. 

ARTICLE XIII 
 DEFEASANCE 
 Section 13.01. Defeasance. If
and when the Bonds secured hereby shall become due and payable in accordance with their terms or through redemption proceedings as provided in this Agreement, or otherwise, and the whole amount of the principal, or Redemption Price and the interest
so due and payable upon all of the Bonds shall be paid, or provision shall have been made for the payment of the same, together with all other sums payable under this Agreement by the Company on behalf of the Authority, including all fees and
expenses of the Trustee and the Authority, then and in that case, this Agreement and the lien created hereby shall be discharged and satisfied and the Authority shall be released from the covenants, agreements and obligations contained in this
Agreement, and the Trustee shall assign and transfer to or upon the order of the Company all property (in excess of the amounts required for the foregoing) then held by the Trustee free and clear of any encumbrances and shall execute such documents
as may be reasonably required by the Authority and the Company in this regard. 
 Subject to the provisions of the above
paragraph, when any of the Bonds shall have been paid and if, at the time of such payment, all the covenants and promises in such Bonds and in this Agreement required or contemplated to be kept, performed and observed by the Authority (or by the
Company on behalf of the Authority) or on its part on or prior to that time, then this Agreement shall be considered to have been discharged in respect of such Bonds and such Bonds shall cease to be entitled to the lien of this Agreement and such
lien and all covenants, agreements and other obligations hereunder shall cease, terminate, become void and be completely discharged as to such Bonds. 
 Notwithstanding the satisfaction and discharge of this Agreement or the discharge of this Agreement in respect of any Bonds, those provisions of this Agreement relating to the maturity of the Bonds,
interest payments and dates thereof, tender and exchange provisions, exchange and transfer of Bonds, replacement of mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation of Bonds, nonpresentment of Bonds and the duties of the
Trustee in connection with all of the foregoing, and compliance with the covenants contained in Section 8.07, shall remain in effect and shall be binding upon the Authority, the Trustee and the holders of the Bonds and the Trustee shall
continue to be obligated to hold in trust any moneys or investments then held by the Trustee for the payment of the principal of, Redemption Price of and interest on the Bonds, to pay to the Bondholders the funds so held by the Trustee as and when
such payment becomes due. 
 Section 13.02. Bonds Deemed to Have Been Paid. Any outstanding
Bond shall, prior to the Maturity Date or Redemption Date thereof, be deemed to have been paid within the meaning and with the effect expressed in Section 13.01 if (a) in case said Bonds are to be redeemed on any date prior to their
maturity, the Company shall have given to the Trustee in form satisfactory to the Trustee irrevocable instructions to mail, in accordance with the provisions of ARTICLE IV of 

  
 56 

 
this Agreement, notice of redemption of such Bonds on said Redemption Date, (b) there shall have been deposited with the Trustee either moneys (insured at all times by the Federal Deposit
Insurance Corporation or otherwise collateralized with Government Obligations), in an amount which shall be sufficient, or Government Obligations, the principal of and the interest on which when due, and without any reinvestment thereof, will
provide moneys which, together with the moneys, if any, deposited with or held by the Trustee at the same time, shall be sufficient (as verified by a report of an independent certified public accountant), to pay when due the principal or Redemption
Price (as applicable) of, and interest due and to become due on, said Bonds on and prior to the Redemption Date or Maturity Date thereof, as the case may be, and (c) in the event any of said Bonds are not to be redeemed within the next
succeeding sixty (60) days, the Company shall have given the Trustee in form satisfactory to the Trustee irrevocable instructions to mail, as soon as practicable in the same manner as a notice of redemption is mailed pursuant to ARTICLE IV of
this Agreement, a notice to the holders of such Bonds and to the Securities Depository and an Information Service that the deposit required by (b) above has been made with the Trustee and that said Bonds are deemed to have been paid in
accordance with this Section and stating such Maturity Date or Redemption Dates upon which moneys are to be available for the payment of the principal or Redemption Price (as applicable) of said Bonds. Neither the securities nor moneys
deposited with the Trustee pursuant to this Section nor principal or interest payments on any such securities shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment of the principal or Redemption
Price (as applicable) of, and interest on said Bonds; provided that any cash received from such principal or interest payments on such obligations deposited with the Trustee, if not then needed for such purpose, shall, to the extent
practicable and consistent with the terms of this Agreement and any escrow agreement pertaining thereto, and at the written direction of the Company, be reinvested in Government Obligations maturing at times and in amounts, together with the other
moneys and payments with respect to Government Obligations then held by the Trustee pursuant to this Section, sufficient to pay when due the principal or Redemption Price (as applicable) of, and interest to become due on said Bonds on and prior to
such Redemption Date or Maturity Date, as the case may be, and interest earned from such reinvestments shall, upon receipt by the Trustee of a written direction of a Company Representative, be paid over to the Company, as received by the Trustee,
free and clear of any trust, lien or pledge. 
 Any release under this Section shall be without prejudice to the right of
the Trustee to be paid the agreed upon compensation for all services rendered by it under this Agreement and all its reasonable expenses, charges and other disbursements and those of its attorneys, agents and employees, incurred on and about the
administration of trusts by this Agreement created and the performance of its powers and duties under this Agreement; provided, however, that the Trustee shall have no right, title or interest in, or lien on, any moneys or securities
deposited pursuant to this ARTICLE XIII. 
 Section 13.03. Moneys Held for Particular Bonds.
Except as otherwise provided in Section 13.02, the amounts held by the Trustee for the payment of the interest, principal, or Redemption Price due on any date with respect to particular Bonds shall, on and after such date and pending such
payment, be set aside on its books and held in trust by it uninvested for the holders of the Bonds entitled thereto. 

  
 57 

 ARTICLE XIV 
 MISCELLANEOUS 
 Section 14.01. Benefits of This
Agreement Limited to Parties. Nothing in this Agreement expressed or implied is intended or shall be construed to confer upon, or to give to, any person other than the Company, the Authority, the Trustee, the Remarketing Agent, the
Indemnified Persons and the holders of the Bonds, including their respective agents, any right, remedy or claim under or by reason of this Agreement or any covenant, condition or stipulation hereof. All the covenants, stipulations, promises and
agreements in this Agreement contained by or on behalf of the Authority shall be for the sole benefit of the Trustee, the Remarketing Agent, the Company and the holders of the Bonds, including their respective agents. 

Section 14.02. No Recourse Against Authority. THE BONDS AND THE PREMIUM, IF ANY, AND THE INTEREST HEREON
SHALL NOT BE DEEMED TO CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF ANY AUTHORITY OR COUNTY OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, INCLUDING, WITHOUT LIMITATION, THE AUTHORITY AND POLK COUNTY,
FLORIDA. NEITHER ANY AUTHORITY OR COUNTY NOR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE OBLIGATED TO PAY THE BONDS OR THE PREMIUM, IF ANY, OR INTEREST HEREON EXCEPT FROM THE PAYMENTS FROM THE
COMPANY, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF ANY AUTHORITY OR COUNTY, INCLUDING WITHOUT LIMITATION, THE AUTHORITY AND POLK COUNTY, OR OF THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF IS
PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE AUTHORITY HAS NO TAXING POWER. No recourse under or upon any obligations, covenants or agreement of this Agreement, or of any Bond, or in any way based
thereon or otherwise in respect thereof, shall be had against any past, present or future member or officer, as such, of the Authority or any successor body politic, either directly or through the Authority, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being hereby expressly waived and released as a conclusion of and as consideration for, the execution of this Agreement and the issue of the
Bonds. 
 Section 14.03. Successor Deemed Included in All References to Predecessor. Whenever
the Authority, the Company, the Remarketing Agent or the Trustee or any officer thereof is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the
Authority, the Company, the Remarketing Agent or the Trustee or such officer, and all agreements, conditions, covenants and terms contained herein required to be observed or performed by or on behalf of the Authority, the Company, the Remarketing
Agent or the Trustee or any officer thereof shall bind and inure to the benefit of the respective successors thereof whether so expressed or not. 
 Section 14.04. Extent of Covenants; No Personal Liability. All covenants, stipulations, obligations and agreements of the Authority contained in this Agreement are and
shall be deemed 

  
 58 

 
to be subject to the limitations set forth in Section 14.02 hereof. No covenant, stipulation, obligation or agreement of the Authority contained in this Agreement shall be deemed to be a
covenant, stipulation, obligation or agreement of any present or future member, officer, agent or employee of the Authority in other than that person’s official capacity. Neither the members of the Authority nor any official executing the
Bonds, this Agreement, or any amendment or supplement hereto or thereto shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance or execution hereof or thereof. 

Section 14.05. Notices. 
 (a) All notices, certificates, requests, complaints, demands, consents and other communications hereunder shall be deemed sufficiently given or filed for all purposes of this Agreement if and when sent by
registered mail, return receipt requested, or by telecopy, promptly confirmed in writing: 
 to the Authority, if addressed to
the: 
 Polk County Industrial Development Authority 
 Post Office Box 9005, Drawer AT01 (338310-9005) 
 330 West Church Street, 4th Floor

 Bartow, Florida 33830 
 Attention: County Attorney 
 Telecopy No. 863-534-6482 

with a copy to: 

Peterson & Myers, P.A. 
 141 5th Street N.W. 
 Winter Haven, Florida 33883-7608 

Attention: Kerry M. Wilson 
 Telecopy No. 863-299-5498 
 to the Company, if addressed to: 

Tampa Electric Company 
 Post Office Box 111 
 Tampa, Florida 33601 

Attention: Corporate Secretary 
 Telecopy No. 813-228-1328 
 to the Trustee, if addressed to: 

The Bank of New York Mellon Trust Company, N.A. 
 10161 Centurion Parkway 
 Jacksonville, Florida 32256 

Attention: Corporate Trust Department 
 Telecopy No. 904-645-1997 

  
 59 

 or, as to all of the foregoing, to such other address as the addressee shall have indicated by prior written
notice to the one giving notice. All notices to a Bondholder shall be in writing and shall be deemed sufficiently given if sent by mail, postage prepaid, to the Bondholder at the address shown on the registration books for the Bonds maintained by
the Trustee. A Bondholder may direct the Trustee to change its address as shown on the registration books by written notice to the Trustee. 
 (b) Notice hereunder may be waived prospectively or retrospectively by the Person entitled to the notice, but no waiver shall affect any notice requirement as to other Persons. 

(c) All documents received by the Trustee under the provisions of this Agreement, or photographic copies thereof, shall be retained in
its possession until this Agreement shall be released under the provision of this Agreement, subject at all reasonable times to the inspection of the Authority, the Company, any Bondholder and any agent or representative thereof. 

Section 14.06. Notices to Rating Agencies. Written notice shall be provided by the Trustee to
Moody’s, S&P and Fitch of (i) the appointment of any successor Trustee or Remarketing Agent, (ii) any amendment or supplement to this Agreement, (iii) the payment of all principal, interest and premium, if any, on all of the
Bonds, (iv) any change in the Determination Method of the Bonds, and (v) any mandatory tender or acceleration of the Bonds. 
 Section 14.07. Funds. Any Fund required to be established and maintained herein by the Trustee may be established and maintained in the account records of the Trustee either as an
account or a fund, and may, for the purpose of such accounting records, any audits thereof and any reports or statements with respect thereto, be treated either as an account or a fund; but all such records with respect to all such Funds shall at
all times be maintained in accordance with sound industry practice and with due regard for the protection of the security of the Bonds and the rights of the Bondholders. 
 Section 14.08. Severability. In case any Section or provision of this Agreement, or any covenant, agreement, stipulation, obligation, act or action, or part thereof,
made, assumed, entered into or taken under this Agreement, or any application thereof, is held to be illegal or invalid for any reason, or is inoperable at any time, that illegality, invalidity or inoperability shall not affect the remainder thereof
or any other Section or provision of this Agreement or any other covenant, agreement, stipulation, obligation, act or action, or part thereof, made, assumed, entered into or taken under this Agreement, all of which shall be construed and
enforced at the time as if the illegal, invalid or inoperable portion were not contained therein. 
 Any illegality, invalidity
or inoperability shall not affect any legal, valid and operable section, provision, covenant, agreement, stipulation, obligation, act, action, part or application, all of which shall be deemed to be effective, operative, made, assumed, entered into
or taken in the manner and to the full extent permitted by law from time to time. 
 Section 14.09.
Florida Law to Govern. This Agreement and each Bond shall be deemed to be a contract made under the laws of the State and for all purposes shall be construed in accordance with the laws of the State. 

  
 60 

 Section 14.10. Instruments of Bondholders. Any writing
including, without limitation, any consent, request, direction, approval, objection or other instrument or document, required under this Agreement to be executed by any Bondholder may be in any number of concurrent writings of similar tenor and may
be executed by that Bondholder in person or by an agent or attorney appointed in writing. Proof of (i) the execution of any writing including, without limitation, any consent, request, direction, approval, objection or other instrument or
document, (ii) the execution of any writing appointing any agent or attorney, and (iii) the ownership of Bonds, shall be sufficient for any of the purposes of this Agreement, if made in the following manner, and if so made, shall be
conclusive in favor of the Trustee with regard to any action taken thereunder, namely: 
 (a) The fact and date of the execution
by any individual of any writing may be proved by the certificate of any officer in any jurisdiction, who has power by law to take acknowledgments within that jurisdiction, that the individual signing the writing acknowledged that execution before
that officer, or by affidavit of any witness to that execution; and 
 (b) The fact of ownership of Bonds shall be proved by the
register maintained by the Trustee. 
 Nothing contained herein shall be construed to limit the Trustee to the foregoing proof,
and the Trustee may accept any other evidence of the matters stated therein which it deems to be sufficient. Any writing including, without limitation, any consent, request, direction, approval, objection or other instrument or document, of the
holder of any Bond shall bind every future holder of the same Bond, with respect to anything done or suffered to be done by the Authority or the Trustee pursuant to that writing. 

Section 14.11. Priority of this Agreement. This Agreement shall be superior to any liens which may be
placed upon the Revenues or any other funds or accounts created pursuant to this Agreement. 
 Section 14.12.
Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the Authority, the Company and the Trustee and their respective successors and assigns, subject to the limitations contained herein. 

Section 14.13. Payments Due or Other Actions on Nonbusiness Days. 

(a) If the date for any payment on the Bonds at a place of payment shall be other than a Business Day, then payment shall be made on the
next succeeding Business Day, and no interest shall accrue for the intervening period other than as specifically provided for herein. 
 (b) Unless otherwise noted in this Agreement, in the event that any day on which any act or function is to be performed or done, other than payment on the Bonds, is not a Business Day, such act or
function shall be done or performed on the next succeeding Business Day. 
 Section 14.14.
Counterparts. This Agreement may be executed and delivered in any number of counterparts, each of which shall be deemed to be an original, but such counterparts together shall constitute one and the same instrument. 

  
 61 

 Section 14.15. Waiver of Jury Trial. EACH OF THE AUTHORITY,
THE COMPANY 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 AGREEMENT, THE BONDS OR THE TRANSACTION
CONTEMPLATED HEREBY. 
 Section 14.16. Force Majeure. In no event shall the Trustee be
responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its 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 and hardware) services; it being understood that the Trustee
shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

  
 62 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the
date first above written. 
  

													
	(Official Seal)	 	POLK COUNTY INDUSTRIAL
		 		 		 		 	DEVELOPMENT AUTHORITY
	Attest:	 		 		 		 		 	
					
	By:	 	         /s/ David L. Curry
	 		 	By:	 	         /s/ Richard M. Munday,
Jr.

		 	Name:	 	David L. Curry	 		 		 	Name:	 	Richard M. Munday, Jr.
		 	Title:	 	Secretary	 		 		 	Title:	 	Chairman
					
		 		 		 		 	TAMPA ELECTRIC COMPANY
						
		 		 		 		 	 By:
	 	         /s/ Kim M. Caruso

		 		 		 		 		 	 Name:
	 	Kim M. Caruso
		 		 		 		 		 	 Title:
	 	Treasurer
					
		 		 		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
		 		 		 		 	As Trustee
						
		 		 		 		 	 By:
	 	         /s/ Cynthia M. Moore

		 		 		 		 		 	 Name:
	 	Cynthia M. Moore
		 		 		 		 		 	 Title:
	 	Vice President

 Signature Page of Loan
and Trust Agreement S-1 

 Exhibit A 
 Description of the Project 
 PROJECT DESCRIPTION 

The Project collects, processes, stores and disposes of waste slag and coal handling solid wastes associated with the Company’s
integrated coal gasification combined cycle power plant located in southwest Polk County. The facilities include the following: 
 Coal
Gasifier Slag Disposal Facility 
 The Coal Gasifier Slag Disposal Facility collects, processes, stores and disposes of waste
slag. The facility includes the slag pond, slag crusher, lockhopper, drag conveyor, pumps, dewatering area, slag storage area, filtration pumps, evaporation system, grey and black water systems, cooling systems and related mechanical, electrical and
associated structures. 
 Coal Handling Solid Wastes Disposal Facility 

The Coal Handling Solid Waste Disposal Facility collects, stores and disposes of coal handling solid wastes. The primary components of the
Coal Handling Solid Waste Disposal Facility include a magnetic separator, metal detector, coal slurry waste collectors and related mechanical, electrical and associated structures. 
 Industrial Wastewater Treatment Solid Waste Facility 
 The Industrial
Wastewater Treatment Solid Waste Facility processes, stores and disposes of solid wastes removed from the industrial waste water treatment facility. The Industrial Wastewater Treatment System treats all potentially contaminated wastewater systems.
The primary components of the Industrial Wastewater Treatment Solid Waste Facility include the clarifier basin and rake mechanism, sludge recycle pumps, sludge transfer pumps, sludge thickening tank, filter press feed pumps, filter press, filter
cake bins, filtrate tank, filtrate pump and related mechanical, electrical and associated structures. 

  
 A-1

 Exhibit B 
 Form of Bond 
 Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation (“DTC”), to the Authority or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is 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. 
  

			
	REGISTERED	 	REGISTERED
	 No. R-            
	 	

 UNITED STATES OF AMERICA 

POLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 
 SOLID WASTE DISPOSAL FACILITY REVENUE REFUNDING BOND 
 (TAMPA ELECTRIC
COMPANY PROJECT), 
 SERIES 2010 
  

							
	 MATURITY DATE
	  	 DATED DATE
	  	CUSIP	  	 
				
	 December 1, 2030
	  	                    , 2010	  	             
	  	

 Registered Owner: CEDE & CO. 
 Principal Amount: $                     

The Polk County Industrial Development Authority, a public body corporate and politic and a public instrumentality created pursuant to
the laws of the State of Florida (the “Authority”), for value received, hereby promises to pay, solely from the sources described in this Bond, to the Registered Owner identified above, or registered assigns, on the Maturity Date
stated above (or if this Bond is called for earlier redemption as described herein, on the redemption date) the principal amount identified above and to pay interest as provided in this Bond. 

THIS BOND AND THE PREMIUM, IF ANY, AND THE INTEREST HEREON SHALL NOT BE DEEMED TO CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF ANY
AUTHORITY OR COUNTY OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, INCLUDING, WITHOUT LIMITATION, THE AUTHORITY AND POLK COUNTY, FLORIDA. NEITHER ANY AUTHORITY OR COUNTY NOR THE STATE OF FLORIDA OR ANY
POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE OBLIGATED TO PAY THIS BOND OR THE PREMIUM, IF ANY, OR INTEREST HEREON EXCEPT FROM THE PAYMENTS FROM THE COMPANY, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF ANY
AUTHORITY OR COUNTY, INCLUDING WITHOUT LIMITATION, THE AUTHORITY AND POLK COUNTY, OR OF THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR PREMIUM, IF ANY, OR
INTEREST ON THIS BOND. THE AUTHORITY HAS NO TAXING POWER. 

  
 B-1

 1. Agreement. This Bond is one of the Polk County Industrial Development Authority
Solid Waste Disposal Facility Revenue Refunding Bonds (Tampa Electric Company Project), Series 2010 (the “Bonds”), limited to $75,000,000 in principal amount, issued under and pursuant to the Constitution of the State of Florida,
Chapter 69-1510, Laws of Florida, as amended, the Florida Industrial Development Financing Act, Parts II and III of Chapter 159, Florida Statutes, and other applicable provisions of law (the “Act”), the Loan and Trust Agreement
dated as of November 15, 2010 (the “Agreement”), among the Authority, Tampa Electric Company, a Florida corporation (the “Company”), and The Bank of New York Mellon Trust Company, N.A., trustee (the
“Trustee”), and a resolution duly enacted by the Authority. The terms of the Bonds include those in the Agreement and those contained herein. Bondholders are referred to the Agreement for a statement of certain of those terms. When
used with reference to the Bonds, the term “principal” includes any premium payable on those Bonds. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement. 

The proceeds of the Bonds will be used to refinance a portion of the cost of acquiring, constructing and installing certain solid waste
disposal facilities, structures, machinery, fixtures, improvements and equipment, of the integrated Coal Gasification Combined Cycle Power Plant of the Company, located in Polk County, Florida, together with all additions thereto, substitutions
therefor and deletions therefrom, as they may at any time exist (collectively, as more fully defined in the Agreement, the “Project”). The principal of and any premium and interest (the “Bond Service Charges”) on
the Bonds are payable solely from the Revenues, as defined and as provided for in the Agreement (being, generally, any amounts payable with respect to Bond Service Charges, and any investments and moneys in the Bond Fund created in the Agreement,
and all income and profit from the investment of the foregoing moneys), and are an obligation of the Authority only to the extent of the Revenues. 
 Under the Agreement, the Company is required to make payments to the Trustee in the amounts and at the times necessary to pay the Bond Service Charges on the Bonds when due, whether at maturity, upon
redemption or acceleration or otherwise until paid in full. Pursuant to the Agreement, the Authority has assigned or granted a security interest to the Trustee in all right, title and interest of the Authority in and to (i) the Revenues,
(ii) all rights to receive such Revenues and the proceeds of such rights, and all other rights and interests of the Authority provided under the Agreement, except for certain rights to reimbursement and indemnity as defined in the Agreement.

 The Agreement may be amended or supplemented as provided by its terms, and references to it include any amendments or
supplements. 
 The Authority has established a book-entry only system of registration for the Bonds (the “Book-Entry
System”). Except as specifically provided otherwise in the Agreement, a Securities Depository (or its nominee) will be the registered owner of this Bond. By acceptance of a confirmation of purchase, delivery or transfer, the Beneficial
Owner (if any) of this Bond shall be deemed to have agreed to this arrangement. If the Securities Depository (or its nominee) is the registered owner of this Bond, it shall be treated as the owner of it for all purposes. 

  
 B-2

 2. Source of Payments. THIS BOND IS PAYABLE BOTH AS TO PRINCIPAL AND INTEREST SOLELY
OUT OF THE ASSETS OF THE AUTHORITY PLEDGED THERETO AS DESCRIBED HEREIN. Payments under the Agreement sufficient for the prompt payment when due of the principal of and premium, if any, and interest on, and any other amounts due with respect to, the
Bonds are to be paid to the Trustee by the Company for the account of the Authority and deposited in a special trust account created by the Authority and have been duly pledged and assigned for that purpose. 

3. Interest Rate. Interest on this Bond will be paid at the lesser of (a) a Daily Rate, a Weekly Rate, a Commercial Paper
Rate or a Term Interest Rate as selected by the Company and as determined in accordance with the Agreement and (b) 14% per annum. Interest will initially be payable at a Term Interest Rate determined in accordance with the Agreement. The
Company may change the Determination Method from time to time. A change in the Determination Method will result in mandatory tender of the Bonds (see “Mandatory Tender for Purchase” in paragraph 7 below). 

When interest is payable at a Daily Rate, Weekly Rate or Commercial Paper Rate, or when interest is payable at a Term Interest Rate for a
Term Interest Rate Period of six months or less, it will be computed on the basis of the actual number of days elapsed over a year of 365 days (366 days in leap years), and when payable at a Term Interest Rate for a Term Interest Rate Period of more
than six months, on the basis of a 360-day year of twelve 30-day months. Interest on overdue principal and, to the extent lawful, on overdue premium and interest will be payable as provided in the Agreement. 

4. Interest Payment and Record Dates. Interest will accrue on the unpaid portion of the principal of this Bond from the Dated Date
stated above and thereafter from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication hereof to which interest has been paid or duly provided for, unless the date of authentication hereof is an Interest
Payment Date to which interest has been paid or duly provided for, in which case from the date of authentication hereof, or unless no interest has been paid or duly provided for on the Bonds of this series, in which case from the Dated Date;
provided, however, that if the date of authentication is between the Record Date (as hereinafter defined) for any Interest Payment Date and such Interest Payment Date, then interest will accrue from such Interest Payment Date or, if
the Company shall default in payment of the interest due on such Interest Payment Date, then from the next preceding Interest Payment Date to which interest has been paid or duly provided for, or if no interest has been paid or duly provided for,
then from the Dated Date. 

  
 B-3

 When interest is payable at the rate in the first column below, interest accrued during the
period (an “Interest Period”) shown in the second column will be paid on the date (an “Interest Payment Date”) in the third column to holders of record on the date (a “Record Date”) in the fourth
column: 
  

							
	 RATE
	  	 INTEREST PERIOD
	  	 INTEREST

PAYMENT DATE
	  	 RECORD DATE

				
	Daily*	  	Interest Payment Date to Interest Payment Date	  	First Business Day of the next month	  	Last Business Day before Interest Payment Date
				
	Weekly*	  	Interest Payment Date to Interest Payment Date	  	First Business Day of the next month	  	Last Business Day before Interest Payment Date
				
	Commercial Paper	  	From 1 to 270 days as determined for each Bond pursuant to the Agreement (“Commercial Paper Period”)	  	Day after the last day of Commercial Paper Period	  	Last Business Day before Interest Payment Date
				
	Term**	  	30 days or longer	  	Each first day of each sixth calendar month after effective date of Term Interest Rate and on the first Business Day after the end of each Term Interest Period	  	Fifteenth of the month before the Interest Payment Date if the Term Interest Rate Period is more than six months, and the last Business Day before Interest Payment Date if the Term
Interest Period is six months or less ***

 “Business Day” is defined in the Agreement. Payment
of defaulted interest will be made to holders of record as of the fifth-to-last Business Day before payment. 
 5. Method of
Payment. Holders must surrender Bonds to the Trustee to collect principal at maturity or upon redemption. (See “Optional Tenders” and “Mandatory Tender for Purchase” below for the payment of purchase price of
tendered Bonds.) Interest on Bonds bearing interest at a Commercial Paper Rate (other than Bonds in the Book Entry System) is payable only upon presentation of such Bonds to the Trustee. Interest on Bonds bearing interest at a Daily, Weekly or Term
Interest Rate (other than Bonds in the Book-Entry System) will be paid to the registered holder as of the Record Date by check mailed by first class mail on the Interest Payment Date to such holder’s registered address. A holder of $1,000,000
or more in principal amount of Bonds may be paid interest at a Daily, Weekly or Commercial Paper Rate by 
  

	*	If there shall be a change from a Daily Rate or a Weekly Rate on a day other than the first Business Day of a calendar month, the then current Interest Period relating
to such Daily Rate or Weekly Rate shall end on the day immediately preceding the date on which the new interest rate on the Bonds shall become effective, which date in the case of a change from a Daily Rate or a Weekly Rate, shall be the Interest
Payment Date for such Interest Period, for which the Record Date shall be the immediately preceding Business Day. If such new interest rate shall be a Daily Rate or a Weekly Rate, the first Interest Period relating thereto shall begin on the
effective date of such new interest rate and end on the day immediately preceding the first Business Day of the next month, for which the Interest Payment Date and the Record Date shall be as prescribed in this Table. 

	**	If there shall be an early termination of such Term Interest Rate Period and a new Term Interest Rate shall be set, such Term Interest Rate Period shall end on the day
immediately preceding the date on which the new interest rate shall become effective, which date shall be the Interest Payment Date for such Term Interest Rate Period, for which the Record Date shall be the last day of such Term Interest Rate Period
or, if sooner, the first day of such Term Interest Rate Period. If such new interest rate shall be a Daily Rate or a Weekly Rate, the first Interest Period relating thereto shall begin on the effective date of such new interest rate and end on the
day immediately preceding the first Business Day of the next month, for which the Interest Payment Date and the Record Date shall be as prescribed in this Table. 

	***	If an Interest Payment Date occurs less than 15 days after the first day of a Term Interest Rate Period, the first day of such Term Interest Rate Period is the Record
Date for such Interest Payment Date. 

  
 B-4

 wire transfer in immediately available funds to an account in the continental United States if the holder
makes a written request of the Trustee (in form satisfactory to the Trustee) at least two Business Days before the Record Date specifying the account address. The notice may provide that it will remain in effect for later interest payments until
changed or revoked by another written notice. Principal and interest will be paid in money of the United States that at the time of payment is legal tender for payment of public and private debts or by checks or wire transfers payable in such money.
If any payment on the Bonds is due on a non-Business Day, it will be made on the next Business Day, and no interest will accrue as a result. 
 6. Optional Tenders. “Tender” means to require, or the act of requiring, the Trustee to purchase a Bond at the holder’s option under the provisions of this paragraph 6 at 100%
of the principal amount plus interest accrued to (but excluding) the date of purchase. While the Bonds bear interest at a Term Interest Rate or a Commercial Paper Rate, the owner of a Bond does not have the option to require the Trustee to purchase
its Bond. 
 Daily Rate Tender. When interest on the Bonds is payable at a Daily Rate and a Book-Entry System is in
effect, a Beneficial Owner (through its direct Participant in the Securities Depository) may tender its interest in a Bond (or portion of Bond) by delivering an irrevocable written notice by telecopy, facsimile transmission or e-mail transmission to
the Trustee (any such notice to be delivered to a Responsible Officer of the Trustee) and an irrevocable notice by telephone, telegraph or facsimile transmission to the Remarketing Agent, in each case prior to 11:00 a.m., New York City time, on a
Business Day, stating the principal amount of the Bond (or portion of Bond) being tendered, payment instructions for the purchase price and the Business Day (which may be the date the notice is delivered) the Bond (or portion of Bond) is to be
purchased. The Beneficial Owner shall effect delivery of such Bond by causing such direct Participant to transfer its interest in the Bond equal to such Beneficial Owner’s interest on the records of the Securities Depository to the participant
account of the Trustee with the Securities Depository. Any notice received by the Trustee after 11:00 a.m., New York City time, shall be deemed to have been given on the next Business Day. 

When interest on the Bonds is payable at a Daily Rate and a Book Entry System is not in effect, a holder of a Bond may tender the Bond
(or portion of Bond) by delivering the notices as described above (which shall include the certificate number of the Bond), and shall also deliver the Bond to the Trustee by 1:00 p.m., New York City time, on the date of purchase (see additional
requirements below). 
 Weekly Rate Tender. When interest on the Bonds is payable at a Weekly Rate and a Book-Entry
System is in effect, a Beneficial Owner (through its direct Participant in the Securities Depository) may tender his interest in a Bond (or portion of Bond) by delivering an irrevocable written notice by telecopy, facsimile transmission or e-mail
transmission to the Trustee (any such notice to be delivered to a Responsible Officer of the Trustee) and an irrevocable notice by telephone, telegraph or facsimile transmission to the Remarketing Agent, in each case prior to 5:00 p.m., New York
City time, on a Business Day stating the principal amount of the Bond (or portion of Bond) being tendered, payment instructions for the purchase price and the date, which must be a Business Day at least seven days after the notice is delivered, on
which the Bond (or portion of Bond) is to be purchased. The Beneficial Owner shall effect delivery of such Bond by causing such direct Participant to transfer its interest in the Bond equal to such Beneficial Owner’s interest on the records of
the Securities Depository to the participant account of the Trustee or its agent with the Securities Depository. 

  
 B-5

 When interest on the Bonds is payable at a Weekly Rate and a Book-Entry System is not in
effect, a holder of a Bond may tender the Bond (or portion of Bond) by delivering the notices as described above (which shall include the certificate number of the Bond), and shall also deliver the Bond to the Trustee by 1:00 p.m., New York City
time, on the date of purchase (see additional requirements below). 
 Payment of Purchase Price. The purchase price for a
Bond tendered under this paragraph 6 or under paragraph 7 “Mandatory Tender for Purchase” will be paid in immediately available funds to the registered owner of the Bond by 4:00 p.m., New York City time, on the date of purchase. No
purchase of Bonds by the Trustee shall be deemed to be a payment or redemption of the Bonds or of any portion thereof and such purchase will not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 

7. Mandatory Tender for Purchase. As provided below, the Bonds are subject to mandatory tender for purchase under certain
circumstances. BY ACCEPTANCE OF THIS BOND, THE OWNER AGREES TO SELL AND SURRENDER THIS BOND, PROPERLY ENDORSED, UNDER THE CONDITIONS DESCRIBED BELOW. All purchases will be made in funds immediately available on the purchase date and will be at the
Purchase Price. Bonds tendered for purchase on a date after a call for redemption but before the redemption date will be purchased pursuant to the tender. No purchase of Bonds shall be deemed to be a payment or redemption of the Bonds or of any
portion thereof and such purchase will not operate to extinguish or discharge the indebtedness evidenced by such Bonds. 

Mandatory Tender at Beginning of a New Term Interest Rate Period. When the Bonds bear interest at a Term Interest Rate and a new
Term Interest Rate is to be determined, the Bonds will be subject to mandatory tender for purchase on the effective date of the new Term Interest Rate. In the case of a change prior to the day originally established as the day after the last day of
a Term Interest Rate Period, the Bonds will be purchased at the percentage of their principal amount which would be payable upon the applicable redemption described under “Optional Redemption During Term Interest Rate Period” below.

 Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode. When Bonds bear interest at a Commercial
Paper Rate, each Bond must be tendered for purchase on the Interest Payment Date for such Bond. 
 Mandatory Tender Upon a
Change in the Determination Method. Subject to the provisions of Section 3.02(b) of the Agreement, on the effective date of the change in the Determination Method (the methods being Daily, Weekly, Commercial Paper or Term Interest Rates)
(the “Conversion Date”), the Bonds will be subject to mandatory tender for purchase on the Conversion Date at the Purchase Price, except that in the case of a change prior to the day originally established as the day after the last
day of a Term Interest Rate Period, the Bonds will be purchased at the percentage of their principal amount which would be payable upon the applicable redemption described under “Optional Redemption During Term Interest Rate Period”
below. 

  
 B-6

 Notice of Tender. At least 15 days before each mandatory tender (except that no
notice shall be given for (x) the tender described under “Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode” described above or (y) the tender described under “Mandatory Tender at
Beginning of a New Term Interest Rate Period” involving no change in the Term Interest Rate Period, and except that such notice shall be given at least 30 days prior to the effective date if a Term Interest Rate Period longer than six
months is in effect and the effective date is before the end of the Term Interest Rate Period), the Trustee will mail a notice of tender by first-class mail to each Bondholder at the holder’s registered address. Failure to give any required
notice of tender as to any particular Bonds, or any defect therein, will not affect the validity of the tender of any Bonds in respect of which no failure or defect occurs. Any notice mailed as provided in this paragraph shall be effective when sent
and will be conclusively presumed to have been given whether or not actually received by the addressee. 
 Effect of
Notice. When notice of tender is required and given, and when Bonds are to be tendered without notice, Bonds tendered become due and payable on the purchase date; in such case when funds are deposited with the Trustee sufficient for purchase,
interest on the Bonds to be purchased ceases to accrue with respect to the holder thereof as of the date of purchase. 
 8.
Delivery Address; Additional Delivery Requirements. Notices in respect of tenders and Bonds tendered must be delivered to the Trustee, and notices in respect of tenders must be delivered to the Remarketing Agent, as provided in the Agreement.

 All tendered Bonds must be accompanied by an instrument of transfer satisfactory to the Trustee, executed in blank by the
registered owner or his duly authorized attorney, with the signature guaranteed by an eligible guarantor institution. 

Limitation on Tenders. Except as provided under “Mandatory Tender Upon a Change in the Determination Method,”
“Mandatory Tender at Beginning of a New Term Interest Rate Period” and “Mandatory Tender on Each Interest Payment Date During Commercial Paper Mode,” no Bonds may be tendered while they bear interest at a Commercial
Paper Rate or a Term Interest Rate. 
 Irrevocable Notice Deemed to Be Tender of Bond; Undelivered Bonds. The giving of
notice by the registered owner of a Bond as provided in paragraph 6 or the occurrence of a mandatory tender for purchase as described in paragraph 7 constitutes the irrevocable tender for purchase of each Bond (or portion of Bond) with respect to
which such notice was given, irrespective of whether such Bond was delivered as provided in paragraph 6 or 7. The determination of the Trustee as to whether a notice of tender has been properly sent shall be conclusive and binding upon the
Bondholders. 
 The Trustee may refuse to accept delivery of any Bond for which a proper instrument of transfer has not been
provided. If any owner of a Bond who gave notice of optional tender or which is subject to mandatory tender fails to deliver his Bond to the Trustee at the place and on the applicable date and time specified, or fails to deliver his Bond properly
endorsed, and moneys for the payment of such Bond are on deposit with the Trustee, his Bond shall constitute an undelivered Bond as described in the Agreement and interest shall cease to accrue on his Bonds as of the tender date and such owner shall
have no right under the Agreement other than 

  
 B-7

 
the right to receive payment of the tender price thereof. BY ACCEPTANCE OF THIS BOND, THE OWNER AGREES TO SELL AND SURRENDER THIS BOND, PROPERLY ENDORSED, TO THE TRUSTEE AFTER THE GIVING OF
IRREVOCABLE NOTICE OF TENDER FOR PURCHASE AS DESCRIBED ABOVE. 
 9. Redemptions. All redemptions (and purchases in lieu
of redemption) will be made in funds immediately available on the redemption date (or purchase date) and will be at a redemption price of 100% of the principal amount of the Bonds being redeemed (unless a premium is required as provided below) plus
interest accrued to the redemption date. 
 Optional Redemption During Term Interest Rate Period. During any Term
Interest Rate Period, if the Term Interest Rate Period is less than or equal to five years, the Bonds will not be redeemable pursuant to this provision during the Term Interest Rate Period. 

If the Term Interest Rate Period is greater than five years, the Bonds will not be redeemable for five years after the date on which the
Bonds begin to bear interest at the Term Interest Rate. 
 As an alternative to and in lieu of the foregoing redemption
provisions, if, with respect to any Term Interest Rate Period, a Favorable Opinion of Tax Counsel is delivered to the Trustee not later than the date of the establishment of such Term Interest Rate Period, the Bonds may be redeemed during such Term
Interest Rate Period at the option of the Company in whole or in part at any time after a no-call period, if any, established by the Remarketing Agent, at the percentages of their principal amount, plus accrued interest, as follows: the Remarketing
Agent shall, given the duration of the Term Interest Rate Period, determine and inform the Trustee and the Company, on a date which is no later than the establishment of the Term Interest Rate, the periods during which the Bonds shall not be subject
to redemption (the “Call Protection Period”), the premium or premiums payable upon redemption (the “Call Premiums”), if any, applicable to the redemption of Bonds after the Call Protection Period, and the period or
periods during which the Call Premiums shall be effective (the “Call Premium Periods”) necessary to establish the Term Interest Rate. Such Call Protection Period, Call Premiums and Call Premium Periods shall be established in
accordance with optional call redemption provisions which, in the judgment of the Remarketing Agent, are generally accepted at the time of determination as the standard features for obligations such as the Bonds, given the length of the Term
Interest Rate Period. 
 After the applicable Call Protection Period, the Bonds may be redeemed at any time in whole or in part
at 100% of their principal amount plus accrued interest, if any. 
 Optional Redemption During Daily or Weekly Rate
Period. When interest on the Bonds is payable at a Daily or Weekly Rate, the Bonds may be redeemed in whole or in part at the option of the Company, on any Business Day. 
 Extraordinary Optional Redemption. Subject to the conditions set forth in the Agreement, any Bond is subject to extraordinary optional redemption by the Authority upon the direction of the Company,
on any date, upon the occurrence of the events described in Section 4.01(b) (redemption in whole or in part) of the Agreement, at a redemption price equal to the principal amount thereof plus accrued and unpaid interest, if any, to the date of
such redemption. 

  
 B-8

 Mandatory Redemption Upon Determination of Taxability. Subject to the conditions set
forth in the Agreement, the Bonds are subject to mandatory redemption in whole or in part following a final determination by the Internal Revenue Service or a court of competent jurisdiction that the interest paid or payable on any Bond is or will
be includible in gross income for federal income tax purposes, at a redemption price equal to the principal amount to be redeemed plus accrued and unpaid interest, if any, to the date of such redemption. 

Notice of Redemption. At least 30 days before each redemption, the Trustee will mail a notice of redemption by first-class mail to
each Bondholder with Bonds to be redeemed at such holder’s registered address. Failure to give any required notice of redemption as to any particular Bonds, or any defect therein, will not affect the validity of the call for redemption of any
Bonds in respect of which no failure or defect occurs. Any notice mailed as provided in this paragraph shall be effective when sent and will be conclusively presumed to have been given whether or not actually received by the addressee. 

Effect of Notice. When notice is required and given, Bonds called for redemption become due and payable on the redemption date; in
such case when funds are deposited with the Trustee sufficient for redemption, interest on the Bonds to be redeemed ceases to accrue as of the date of redemption. 
 Purchase in Lieu of Redemption. As provided in the Agreement, the Company has the right to purchase Bonds in lieu of the optional redemption described in this paragraph under “Optional
Redemption During Term Interest Rate Period” and “Optional Redemption During Daily or Weekly Rate Period”. 
 10. Denominations; Transfer; Exchange. The Bonds may be issued in registered form without coupons in denominations as follows: (1) when interest is payable at a Daily, Weekly or Commercial
Paper Rate or at a Term Interest Rate for a Term Interest Rate Period shorter than one year, $100,000 and any larger denominations constituting an integral multiple of $5,000; and (2) when interest is payable at a Term Interest Rate for a Term
Interest Rate Period of one year or longer, $5,000 and integral multiples thereof. A holder may register the transfer of or exchange Bonds in accordance with the Agreement. The Trustee may require a holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Agreement. Except in connection with the purchase of Bonds tendered for purchase, the Trustee will not be required to register the transfer of or
exchange any Bond which has been called for redemption or during the period beginning 15 days before the mailing of notice calling the Bonds or any portion of the Bonds for redemption and ending on the redemption date. 

11. Persons Deemed Owners. The registered holder of this Bond shall be treated as the owner of it for all purposes. 

12. Funds in Trust; Unclaimed Funds. All moneys which the Trustee shall have withdrawn from the account of the Company or shall
have received from any other source and 

  
 B-9

 
set aside, or deposited with the paying agents, for the purpose of paying any of the Bonds hereby secured, either at the maturity thereof or upon call for redemption or tender, shall be held in
trust for the respective holders of such Bonds. But any moneys which shall be so set aside or deposited by the Trustee and which shall remain unclaimed by the holders of such Bonds for a period of one year after the date on which such Bonds shall
have become due and payable shall upon request in writing be paid to the Company, and thereafter the holders of such Bonds shall look only to the Company for payment and then only to the extent of the amount so received without any interest thereon,
and the Trustee, the Authority and the paying agents shall have no responsibility with respect to such moneys. In the absence of any such written request, the Trustee shall from time to time deliver such unclaimed funds to or as directed by
pertinent escheat authority, as identified by the Trustee in its sole discretion, pursuant to and in accordance with applicable unclaimed property laws, rules or regulations. Any such delivery shall be in accordance with the customary practices and
procedures of the Trustee and the escheat authority. All moneys held by the Trustee and subject to this paragraph 12 shall be held uninvested and without liability for interest thereon. Before making any payment under this paragraph 12, the Trustee
shall be entitled to receive at the Company’s expense an opinion of counsel to the effect that said payment is permitted under applicable law. 
 13. Discharge Before Redemption, Tender or Maturity. If the Company at any time deposits with the Trustee money or Government Obligations as described in the Agreement sufficient to pay at
redemption, tender or maturity principal of and interest on the outstanding Bonds, and if the Company also pays or provides for the payment of all other sums then payable by the Company under the Agreement, the lien of the Agreement will be
discharged. After discharge, Bondholders must look only to the deposited money and securities for payment except as otherwise specifically provided in the Agreement. 
 14. Amendment, Supplement, Waiver. The Agreement or the Bonds may be amended or supplemented, and any past default or compliance with any provision may be waived, with the consent of the holders of
at least a majority in principal amount of the Bonds then outstanding. Any such consent shall be irrevocable and shall bind any subsequent owner of this Bond or any Bond delivered in substitution for this Bond. Without the consent of any Bondholder,
the Authority may amend or supplement the Agreement or the Bonds as described in the Agreement, among other things, to cure any ambiguity, omission, defect or inconsistency, to provide for uncertificated Bonds in addition to or in place of
certificated Bonds, to provide for a Book Entry System for the Bonds or to make any change that does not materially adversely affect the rights of any Bondholder. 
 15. Defaults and Remedies. The Agreement provides that the occurrences of certain events constitute Events of Default. If an Event of Default occurs and is continuing, the Bonds may become or may
be declared immediately due and payable, as provided in the Agreement. An Event of Default and its consequences may be waived as provided in the Agreement. Bondholders may not enforce the Agreement or the Bonds except as provided in the Agreement.
Except as specifically provided in the Agreement, the Trustee may refuse to enforce the Agreement or the Bonds unless it receives indemnity satisfactory to it. Subject to certain limitations, holders of a majority in principal amount of the Bonds
then outstanding may direct the Trustee in its exercise of any trust or power. 

  
 B-10

 16. No Recourse Against Others. A member, director, officer or employee, as such, of
the Authority shall not have any liability for any obligations of the Authority or the Company under the Bonds or the Agreement or for any claim based on such obligations or their creation. Each Bondholder by accepting a Bond waives and releases all
such liability. The waiver and release are part of the consideration for the issue of the Bond. 
 17. Authentication.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Agreement until the certificate of authentication hereon shall have been duly executed by the Trustee. 

18. Abbreviations. Customary abbreviations may be used in the name of a Bondholder or an assignee, such as TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act). 

It Is Hereby Certified, Recited And Declared that all acts, conditions and things required to exist, happen and be performed precedent to
and in the execution and delivery of the Agreement and the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by law. 

This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Agreement until it
shall have been authenticated by the execution by the Trustee of the certificate of authentication endorsed hereon. 
 IN
WITNESS WHEREOF, POLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY has caused this Bond to bear the signatures of its Chairman and Secretary and has caused its seal to be impressed hereon, all as of the Dated Date specified above. 

 

			
	POLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY
		
	By:	 	  

		 	Chairman

  

	
	[SEAL]
	
	 Attest:

	
	  

	Secretary

  
 B-11

 CERTIFICATE OF AUTHENTICATION 

This Bond is one of the Bonds of the series designated therein and referred to in the within-mentioned Agreement. 

 

									
		 		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
		 		 		 	as Trustee
					
	Date:	 	  
	 		 	By:	 	  

		 		 		 		 	Authorized Signatory

  
 B-12

 The following abbreviations, when used in the inscription on the face of the within Bond, shall be construed
as though they were written out in full according to applicable laws or regulations: 
  

															
	TEN COM	  	—	  	as tenants in common	  		  	UNIF GIFT MIN ACT	  	
	TEN ENT	  	—	  	as tenants by the entireties	  		  	
                    
 
	 	Custodian	  	
                    
 
	  	
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common	  		  	(Cust)	 		  	(Minor)	  	
		  		  	  		  	under Uniform Gifts to Minors Act	  	
		  		  	  		  	  
	  	
		  		  	  		  	(State)	  	

 Additional abbreviations may also be used though not in list above. 

ASSIGNMENT 
 For Value Received, the undersigned sells, assigns and transfers unto 
  

					
	Please insert social security or	 		 	 
	other identifying number of assignee	 		 	 

  

 
  
  

 
  
 (Name and Address of Assignee) 
 the within Bond and does hereby irrevocably
constitute and appoint 
  
  

attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. 

 

			
	Dated:	 	  

			
	Signature guaranteed:	 	  

 

			
	 Medallion
Number:                    
 *Signature(s) must be guaranteed by an eligible guarantor institution
which is a member of a recognized signature guarantee program, i.e., Securities Transfer Agents Medallion Program (STAMP), or New York Stock Exchange Medallion Signature Program (MSP).
	  	Notice: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration
or enlargement or any change whatever.

  
 B-13Loan and Security Agreement

 Exhibit 10.1 
 LOAN AND SECURITY AGREEMENT 
 by and among 

LIGHTING SCIENCE GROUP CORPORATION 
 as Borrower 
 BIOLOGICAL ILLUMINATION, LLC 

and 

LSGC, LLC 

as Guarantors 
 THE LENDERS AND ISSUING BANK FROM TIME TO TIME PARTY HERETO 
 WELLS FARGO
BANK, NATIONAL ASSOCIATION 
 as Agent 
 WELLS FARGO CAPITAL FINANCE, LLC 
 as Sole Lead Arranger, Manager and
Bookrunner 
 Dated: November 22, 2010 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
			
	SECTION 1.	 	 DEFINITIONS
	  	 	1	  
			
	SECTION 2.	 	 CREDIT FACILITIES
	  	 	30	  
				
		 	2.1	 	Loans	  	 	30	  
		 	2.2	 	Letters of Credit	  	 	30	  
		 	2.3	 	[Intentionally Omitted]	  	 	33	  
		 	2.4	 	Commitments	  	 	33	  
		 	2.5	 	Joint and Several Liability	  	 	33	  
			
	SECTION 3.	 	 INTEREST AND FEES
	  	 	34	  
				
		 	3.1	 	Interest	  	 	34	  
		 	3.2	 	Fees	  	 	34	  
		 	3.3	 	Changes in Laws and Increased Costs of Loans	  	 	35	  
			
	SECTION 4.	 	 CONDITIONS PRECEDENT
	  	 	36	  
				
		 	4.1	 	Conditions Precedent to Initial Loans and Letters of Credit	  	 	36	  
		 	4.2	 	Conditions Precedent to All Loans and Letters of Credit	  	 	38	  
			
	SECTION 5.	 	 GRANT AND PERFECTION OF SECURITY INTEREST
	  	 	39	  
				
		 	5.1	 	Grant of Security Interest	  	 	39	  
		 	5.2	 	Perfection of Security Interests	  	 	40	  
			
	SECTION 6.	 	 COLLECTION AND ADMINISTRATION
	  	 	44	  
				
		 	6.1	 	Borrowers’ Loan Accounts	  	 	44	  
		 	6.2	 	Statements	  	 	44	  
		 	6.3	 	Collection of Accounts	  	 	45	  
		 	6.4	 	Payments	  	 	46	  
		 	6.5	 	Taxes	  	 	47	  
		 	6.6	 	Authorization to Make Loans	  	 	49	  
		 	6.7	 	Use of Proceeds	  	 	49	  
		 	6.8	 	Appointment of Administrative Borrower as Agent for Requesting Loans and Receipts of Loans and Statements	  	 	49	  
		 	6.9	 	Pro Rata Treatment	  	 	50	  
		 	6.10	 	Sharing of Payments, Etc.	  	 	50	  
		 	6.11	 	Settlement Procedures	  	 	51	  
		 	6.12	 	Obligations Several; Independent Nature of Lenders’ Rights	  	 	55	  
		 	6.13	 	Bank Products	  	 	55	  

  
 (i)

									
	SECTION 7.	 	 COLLATERAL REPORTING AND COVENANTS
	  	 	56	  
				
		 	7.1	 	Collateral Reporting	  	 	56	  
		 	7.2	 	Accounts Covenants	  	 	57	  
		 	7.3	 	Inventory Covenants	  	 	58	  
		 	7.4	 	Equipment and Real Property Covenants	  	 	59	  
		 	7.5	 	Power of Attorney	  	 	59	  
		 	7.6	 	Right to Cure	  	 	60	  
		 	7.7	 	Access to Premises	  	 	60	  
			
	SECTION 8.	 	 REPRESENTATIONS AND WARRANTIES
	  	 	61	  
				
		 	8.1	 	Corporate/Limited Liability Company Existence, Power and Authority	  	 	61	  
		 	8.2	 	Name; State of Organization; Chief Executive Office; Collateral Locations	  	 	61	  
		 	8.3	 	Financial Statements; No Material Adverse Change	  	 	62	  
		 	8.4	 	Priority of Liens; Title to Properties	  	 	62	  
		 	8.5	 	Tax Returns	  	 	62	  
		 	8.6	 	Litigation	  	 	63	  
		 	8.7	 	Compliance with Other Agreements and Applicable Laws	  	 	63	  
		 	8.8	 	Environmental Compliance	  	 	63	  
		 	8.9	 	Employee Benefits	  	 	64	  
		 	8.10	 	Bank Accounts	  	 	65	  
		 	8.11	 	Intellectual Property	  	 	65	  
		 	8.12	 	Subsidiaries; Affiliates; Capitalization; Solvency	  	 	65	  
		 	8.13	 	Labor Disputes	  	 	66	  
		 	8.14	 	Restrictions on Subsidiaries	  	 	66	  
		 	8.15	 	Material Contracts	  	 	66	  
		 	8.16	 	Payable Practices	  	 	67	  
		 	8.17	 	OFAC	  	 	67	  
		 	8.18	 	Accuracy and Completeness of Information	  	 	67	  
		 	8.19	 	Survival of Warranties; Cumulative	  	 	67	  
		 	8.20	 	Common Enterprise	  	 	67	  
		 	8.21	 	The Customer 2 Factoring Agent Discount Documents	  	 	68	  
			
	SECTION 9.	 	 AFFIRMATIVE AND NEGATIVE COVENANTS
	  	 	68	  
				
		 	9.1	 	Maintenance of Existence	  	 	68	  
		 	9.2	 	New Collateral Locations	  	 	69	  
		 	9.3	 	Compliance with Laws, Regulations, Etc.	  	 	69	  
		 	9.4	 	Payment of Taxes and Claims	  	 	70	  
		 	9.5	 	Insurance	  	 	70	  
		 	9.6	 	Financial Statements and Other Information	  	 	71	  
		 	9.7	 	Sale of Assets, Consolidation, Merger, Dissolution, Etc.	  	 	73	  
		 	9.8	 	Encumbrances	  	 	75	  
		 	9.9	 	Indebtedness	  	 	77	  
		 	9.10	 	Loans, Investments, Etc.	  	 	78	  

  
 (ii)

									
		 	9.11	 	Dividends and Redemptions	  	 	80	  
		 	9.12	 	Transactions with Affiliates	  	 	81	  
		 	9.13	 	Compliance with ERISA	  	 	82	  
		 	9.14	 	End of Fiscal Years; Fiscal Quarters	  	 	82	  
		 	9.15	 	Change in Business	  	 	82	  
		 	9.16	 	Limitation of Restrictions Affecting Subsidiaries	  	 	82	  
		 	9.17	 	Financial Covenants	  	 	83	  
		 	9.18	 	License Agreements	  	 	84	  
		 	9.19	 	Foreign Assets Control Regulations, Etc.	  	 	85	  
		 	9.20	 	Costs and Expenses	  	 	86	  
		 	9.21	 	Further Assurances	  	 	86	  
			
	 SECTION 10.
	 	 EVENTS OF DEFAULT AND REMEDIES
	  	 	87	  
				
		 	10.1	 	Events of Default	  	 	87	  
		 	10.2	 	Remedies	  	 	89	  
			
	 SECTION 11.
	 	 JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW
	  	 	92	  
				
		 	11.1	 	Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver	  	 	92	  
		 	11.2	 	Waiver of Notices	  	 	93	  
		 	11.3	 	Amendments and Waivers	  	 	94	  
		 	11.4	 	Waiver of Counterclaims	  	 	96	  
		 	11.5	 	Indemnification	  	 	96	  
			
	 SECTION 12.
	 	 THE AGENT
	  	 	97	  
				
		 	12.1	 	Appointment, Powers and Immunities	  	 	97	  
		 	12.2	 	Reliance by Agent	  	 	97	  
		 	12.3	 	Events of Default	  	 	97	  
		 	12.4	 	Wells Fargo in its Individual Capacity	  	 	98	  
		 	12.5	 	Indemnification	  	 	98	  
		 	12.6	 	Non-Reliance on Agent and Other Lenders	  	 	98	  
		 	12.7	 	Failure to Act	  	 	99	  
		 	12.8	 	Additional Loans	  	 	99	  
		 	12.9	 	Concerning the Collateral and the Related Financing Agreements	  	 	99	  
		 	12.10	 	Field Audit, Examination Reports and other Information; Disclaimer by Lenders	  	 	100	  
		 	12.11	 	Collateral Matters	  	 	100	  
		 	12.12	 	Agency for Perfection	  	 	102	  
		 	12.13	 	Successor Agent	  	 	102	  
		 	12.14	 	Other Agent Designations	  	 	103	  
			
	 SECTION 13.
	 	 TERM OF AGREEMENT; MISCELLANEOUS
	  	 	103	  
				
		 	13.1	 	Term	  	 	103	  
		 	13.2	 	Interpretative Provisions	  	 	105	  

  
 (iii)

									
		 	13.3	 	Notices	  	 	106	  
		 	13.4	 	Partial Invalidity	  	 	107	  
		 	13.5	 	Confidentiality	  	 	107	  
		 	13.6	 	Successors	  	 	109	  
		 	13.7	 	Assignments; Participations	  	 	109	  
		 	13.8	 	Entire Agreement	  	 	111	  
		 	13.9	 	USA Patriot Act	  	 	111	  
		 	 13.10
	 	 Counterparts, Etc.
	  	 	111	  

  
 (iv)

 INDEX 
 TO 
 EXHIBITS AND SCHEDULES 

 

			
	Exhibit A	  	Form of Assignment and Acceptance
		
	Exhibit B	  	Information Certificate
		
	Exhibit C	  	Form of Compliance Certificate
		
	Exhibit D	  	Form of Borrowing Base Certificate
		
	Exhibit 9.5	  	Lender’s Loss Payable Endorsement
		
	Schedule 9.17(a)	  	Minimum EBITDA

  
 (v)

 LOAN AND SECURITY AGREEMENT 

This Loan and Security Agreement dated November 22, 2010 (this “Agreement” as hereinafter further defined) is entered into
by and among LIGHTING SCIENCE GROUP CORPORATION, a Delaware corporation (“Lighting Science”, and together with any other Person that at any time after the date hereof becomes a Borrower, each individually a “Borrower” and
collectively, “Borrowers” as hereinafter further defined), BIOLOGICAL ILLUMINATION, LLC, a Delaware limited liability company (“Biological”), LSGC, LLC, a Delaware limited liability company (“LSGC”, and together with
Biological and any other Person that at any time after the date hereof becomes a Guarantor, each individually a “Guarantor” and collectively, “Guarantors” as hereinafter further defined), the parties hereto from time to time as
lenders, whether by execution of this Agreement or an Assignment and Acceptance (each individually, a “Lender” and collectively, “Lenders” as hereinafter further defined) WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, in its capacity as Issuing Bank, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, in its capacity as agent for Issuing Bank and Lenders (in such capacity, “Agent” as hereinafter further defined).

 W I T N E S S E T H: 
 WHEREAS, Borrowers have requested that Agent, Issuing Bank and Lenders enter into financing arrangements with Borrowers pursuant to which Lenders may make loans and provide other financial accommodations
to Borrowers; and 
 WHEREAS, Issuing Bank and each Lender are willing to agree (severally and not jointly) to make such loans
and provide such financial accommodations to Borrowers on a pro rata basis according to its Commitment (as defined below) on the terms and conditions set forth herein and Agent is willing to act as agent for Lenders on the terms and conditions set
forth herein and the other Financing Agreements; 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1. DEFINITIONS 
 For purposes of this Agreement, the following
terms shall have the respective meanings given to them below: 
 1.1 “Accounts” shall mean, as to each Borrower and
Guarantor, all present and future rights of such Borrower and Guarantor to payment of a monetary obligation, whether or not earned by performance, which is not evidenced by chattel paper or an instrument, (a) for property that has been or is to
be sold, leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, (c) for a secondary obligation incurred or to be incurred, or (d) arising out of the use of a credit or charge card or
information contained on or for use with the card. For the avoidance of doubt, this definition of Accounts shall include any Customer 2 Accounts. 

 1.2 “Accrual Credit” shall have the meaning ascribed to such term in the SPEARA as
in effect on the date hereof. 
 1.3 “Administrative Borrower” shall mean Lighting Science Group Corporation, a
Delaware corporation, in its capacity as administrative borrower on behalf of itself and the other Borrowers pursuant to Section 6.8 hereof and its successors and assigns in such capacity. 

1.4 “Affected Testing Period” shall have the meaning set forth in Section 9.17(c). 

1.5 “Affiliate” shall mean, with respect to a specified Person, any other Person which directly or indirectly, through one or
more intermediaries, controls or is controlled by or is under common control with such Person, and without limiting the generality of the foregoing, includes (a) any Person which beneficially owns or holds ten (10%) percent or more of any
class of Voting Stock of such Person or other equity interests in such Person, (b) any Person of which such Person beneficially owns or holds ten (10%) percent or more of any class of Voting Stock or in which such Person beneficially owns
or holds ten (10%) percent or more of the equity interests and (c) any director or executive officer of such Person. For the purposes of this definition, the term “control” (including with correlative meanings, the terms
“controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person,
whether through the ownership of Voting Stock, by agreement or otherwise. 
 1.6 “Agent” shall mean Wells Fargo Bank,
National Association, in its capacity as agent on behalf of Lenders pursuant to the terms hereof, and any replacement or successor agent hereunder. 
 1.7 “Agent Payment Account” shall mean account no. 63531300303500061 of Agent at Wells Fargo, or such other account of Agent as Agent may from time to time designate to Administrative Borrower
as the Agent Payment Account for purposes of this Agreement and the other Financing Agreements. 
 1.8 “Agreement”
shall mean this Loan and Security Agreement, as amended, renewed, extended, supplemented or otherwise modified from time to time in accordance with the terms hereof. 
 1.9 “Applicable Margin” shall mean: 
 (a) Subject to clause
(b) below, at any time, as to the Interest Rate for Base Rate Loans and the Interest Rate for LIBOR Rate Loans, the applicable percentage (on a per annum basis) set forth below if the Quarterly Average Excess Availability for the immediately
preceding calendar quarter is at or within the amounts indicated for such percentage: 
  

											
	 Tier
	  	 Quarterly Average

Excess Availability
	  	Applicable Margin for
LIBOR Rate Loans	 	 	Applicable Margin 
for
Base Rate Loans	 
	1	  	Greater than $12,000,000	  	 	3.00	% 	 	 	0.75	% 
	2	  	Less than or equal to $12,000,000 and greater than or equal to $7,500,000	  	 	3.50	% 	 	 	1.25	% 
	3	  	Less than $7,500,000	  	 	4.00	% 	 	 	1.75	% 

  
 2 

 (b) Notwithstanding anything to the contrary set forth above, (i) the Applicable Margin
shall be calculated and established once each calendar quarter and shall remain in effect until adjusted thereafter after the end of such calendar quarter, (ii) each adjustment of the Applicable Margin shall be effective as of the first day of
a calendar quarter based on the Quarterly Average Excess Availability for the immediately preceding calendar quarter, and (iii) until the end of the fiscal quarter ending on December 31, 2010, the Applicable Margin shall be the amount for
Tier 2 set forth above. In the event that at any time after the end of a calendar quarter the Quarterly Average Excess Availability for such calendar quarter used for the determination of the Applicable Margin was less than the actual amount of the
Quarterly Average Excess Availability for such calendar quarter, the Applicable Margin for such prior calendar quarter shall be adjusted to the applicable percentage based on such actual Quarterly Average Excess Availability and any additional
interest for the applicable period as a result of such recalculation shall be promptly paid to Agent. In the event that the Quarterly Average Excess Availability for such calendar quarter used for the determination of the Applicable Margin was
greater than the actual amount of the Quarterly Average Excess Availability, the Applicable Margin for such prior calendar quarter shall be adjusted to the applicable percentage based on such actual Quarterly Average Excess Availability and any
reduction in interest for the applicable period as a result of such recalculation shall be promptly credited to the loan account of Borrowers; provided, that, the basis for the Quarterly Average Excess Availability for purposes of the
determination of the Borrowing Base having been less than the actual Quarterly Average Excess Availability is not as a result of information provided by Borrowers to Agent. The foregoing shall not be construed to limit the rights of Agent or Lenders
with respect to the amount of interest payable after a Default or Event of Default whether based on such recalculated percentage or otherwise. 
 1.10 “Applicable ULF Rate” shall mean, at any time, the applicable percentage (on a per annum basis) set forth below if the daily average of the total Loans outstanding for the immediately
preceding calendar month is at or within the amounts indicated for such percentage: 
  

							
	 Tier
	  	
Daily Average Loans Outstanding
	  	Unused Line Fee	 
	1	  	Greater than $7,500,000	  	 	0.375	% 
	2	  	Less than or equal to $7,500,000 but greater than or equal to $5,000,000	  	 	0.50	% 
	3	  	Less than $5,000,000 but greater than or equal to $3,000,000	  	 	0.75	% 
	4	  	Less than $3,000,000	  	 	1.00	% 

 1.11 “Assignment and
Acceptance” shall mean an Assignment and Acceptance substantially in the form of Exhibit A attached hereto (with blanks appropriately completed) delivered to Agent in connection with an assignment of a Lender’s interest hereunder in
accordance with the provisions of Section 13.7 hereof. 

  
 3 

 1.12 “Bank Product Provider” shall mean any Lender, Affiliate of Lender or other
financial institution (in each case as to any such Lender, Affiliate of Lender or other financial institution to the extent approved by Agent) that provides any Bank Products to Borrowers or Guarantors. 

1.13 “Bank Products” shall mean any one or more of the following types or services or facilities provided to any Borrower or
Guarantor by a Bank Product Provider: (a) credit cards or stored value cards, (b) cash management or related services, including (i) the automated clearinghouse transfer of funds for the account of any Borrower or Guarantor pursuant
to agreement or overdraft for any accounts of Borrowers and Guarantors maintained at Agent or any Bank Product Provider that are subject to the control of Agent pursuant to any Deposit Account Control Agreement to which Agent or such Bank Product
Provider is a party, as applicable, and (ii) controlled disbursement services and (c) Hedge Agreements if and to the extent permitted hereunder. Any of the foregoing shall only be included in the definition of the term “Bank
Products” to the extent that the Bank Product Provider has been approved by Agent. 
 1.14 “Base Rate” shall mean
the greatest of (a) the Federal Funds Rate plus one-half of one (0.50%) percent, (b) the Daily Three Month LIBOR Rate plus one (1) percentage point, and (c) the rate of interest announced, from time to time, within Wells Fargo at
its principal office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which
effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate. 

1.15 “Base Rate Loans” shall mean any Loans or portion thereof on which interest is payable based on the Base Rate in
accordance with the terms thereof. 
 1.16 “Blocked Accounts” shall have the meaning set forth in Section 6.3
hereof. 
 1.17 “Borrowers” shall mean, collectively, the following (together with their respective successors and
assigns): (a) Lighting Science Group Corporation, a Delaware corporation; and (b) any other Person that at any time after the date hereof becomes a Borrower; each sometimes being referred to herein individually as a “Borrower”.

 1.18 “Borrowing Base” shall mean, at any time, the amount equal to: 

(a) the sum of: 

(i) eighty-five (85%) percent of the Eligible Accounts, plus 

(ii) the lesser of (A) the sum of (1) fifteen (15%) percent multiplied by the Value of the Eligible Inventory consisting
of raw materials plus (2) sixty (60%) percent multiplied by the Value of the Eligible Inventory consisting of finished goods or (B) eighty-five (85%) percent of the Net Recovery Percentage multiplied by the Value of such
Eligible Inventory or (C) the Inventory Loan Limit, plus 
 (iii) Qualified Cash, minus 

  
 4 

 (b) Reserves. 
 For purposes only of applying the Inventory Loan Limit, Agent may treat the then undrawn amounts of outstanding Letters of Credit for the purpose of purchasing Eligible Inventory as Revolving Loans to the
extent Agent is in effect basing the issuance of the Letter of Credit on the Value of the Eligible Inventory being purchased with such Letter of Credit. In determining the actual amounts of such Letter of Credit to be so treated for purposes of the
sublimit, the outstanding Revolving Loans and Reserves shall be attributed first to any components of the lending formulas set forth above that are not subject to such sublimit, before being attributed to the components of the lending formulas
subject to such sublimit. The amounts of Eligible Inventory of any Borrower shall, at Agent’s option, be determined based on the lesser of the amount of Inventory set forth in the general ledger of such Borrower or the perpetual inventory
record maintained by such Borrower. 
 1.19 “Borrowing Base Certificate” shall mean a “daily collateral
report” substantially in the form of Exhibit D hereto, as such form may from time to time be modified by Agent in a manner consistent with the terms of this Agreement, which is duly completed (including all schedules thereto) and executed by
the chief executive officer, chief financial officer or other financial or senior officer of Administrative Borrower and delivered to Agent. 
 1.20 “Business Day” shall mean any day other than a Saturday, Sunday, or other day on which commercial banks are authorized or required to close under the laws of the State of New York;
except, that, if a determination of a Business Day shall relate to any LIBOR Rate Loans, the term Business Day shall also exclude any day on which banks are closed for dealings in dollar deposits in the London interbank market or other
applicable LIBOR rate market. 
 1.21 “Capital Expenditures” shall mean all payments or accruals (including Capital
Lease Obligations) for any fixed assets or improvements or for replacements, substitutions or additions thereto, that have a useful life of more than one year and that are required to be capitalized under GAAP. 

1.22 “Capital Leases” shall mean, as applied to any Person, any lease of (or any agreement conveying the right to use) any
property (whether real, personal or mixed) by such Person as lessee which in accordance with GAAP, is required to be reflected as a liability on the balance sheet of such Person. 

1.23 “Cash Equivalents” shall mean, at any time, (a) any evidence of Indebtedness with a maturity date of ninety
(90) days or less issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof; provided, that, the full faith and credit of the United States of America is pledged in
support thereof; (b) certificates of deposit or bankers’ acceptances with a maturity of ninety (90) days or less of any financial institution that is a member of the Federal Reserve System having combined capital and surplus and
undivided profits of not less than $1,000,000,000; (c) commercial paper (including variable rate demand notes) with a maturity of ninety (90) days or less issued by a Person (except an Affiliate of any Borrower or Guarantor) organized
under the laws of any State of the United States of America or the District of Columbia and rated at least A-1 by Standard & Poor’s Ratings Service, a division of The McGraw-Hill Companies, Inc. or at least P-1 by Moody’s
Investors Service, Inc.; (d) repurchase obligations with a term of not more than thirty (30) days for underlying securities of the types described in 

  
 5 

 
clause (a) above entered into with any financial institution having combined capital and surplus and undivided profits of not less than $1,000,000,000; (e) repurchase agreements and
reverse repurchase agreements relating to marketable direct obligations issued or unconditionally guaranteed by the United States of America or issued by any governmental agency thereof and backed by the full faith and credit of the United States of
America, in each case maturing within ninety (90) days or less from the date of acquisition; provided, that, the terms of such agreements comply with the guidelines set forth in the Federal Financial Agreements of Depository
Institutions with Securities Dealers and Others, as adopted by the Comptroller of the Currency on October 31, 1985; and (f) investments in money market funds and mutual funds which invest substantially all of their assets in securities of
the types described in clauses (a) through (e) above. 
 1.24 “Change of Control” shall mean (a) the
transfer (in one transaction or a series of transactions) of all or substantially all of the assets of any Borrower or Guarantor to any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act), other than as permitted in
Section 9.7 hereof; (b) the liquidation or dissolution of any Borrower or Guarantor or the adoption of a plan by the stockholders of any Borrower or Guarantor relating to the dissolution or liquidation of such Borrower or Guarantor, other
than as permitted in Section 9.7 hereof; (c) the acquisition by any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act), except for Sponsor, of beneficial ownership, directly or indirectly, of a majority of
the voting power of the total outstanding Voting Stock of any Borrower or Guarantor or the Board of Directors of Lighting Science; (d) during any period of two (2) consecutive years, individuals who at the beginning of such period
constituted the Board of Directors of Lighting Science (together with any new directors who have been appointed by Sponsor, or whose nomination for election by the stockholders of Lighting Science was approved by a vote of at least sixty-six and
two-thirds (66 2/3%) percent of the directors (or a committee of such directors) then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board of Directors of Lighting Science then still in office; or (e) the failure of the Lighting Science to own directly or indirectly one hundred (100%) percent of the voting power of the total
outstanding Voting Stock of any other Borrower or Guarantor, except as expressly permitted under Section 9.7 hereof. 

1.25 “Closing Excess Availability” shall mean the amount, as determined by Agent, calculated as of the date hereof, equal to:
(a) the lesser of: (i) the Borrowing Base and (ii) the Maximum Credit (in each case under (i) or (ii), without duplication, after giving effect to any Reserves other than any Reserves in respect of Letter of Credit Obligations),
minus (b) the sum of: (i) the amount of all then outstanding and unpaid Obligations (but not including for this purpose Obligations arising pursuant to any guarantees in favor of Agent and Lenders of the Obligations of the other
Borrowers or the then outstanding aggregate principal amount of any outstanding Letter of Credit Obligations), plus (ii) the amount of all Reserves then established in respect of Letter of Credit Obligations, plus (iii) the
aggregate amount of all then outstanding and unpaid trade payables and other obligations of Borrowers which are outstanding more than sixty (60) days past due as of the end of the immediately preceding month or at Agent’s option, as of a
more recent date based on such reports as Agent may from time to time specify (other than trade payables or other obligations being contested or disputed by Borrowers in good faith), plus (iv) without duplication, the amount of checks
issued by Borrowers to pay trade payables and other obligations which are more than sixty (60) days past due as of the end of the immediately preceding month or at Agent’s option, as of a more recent date based on such reports as Agent may
from time to time specify (other than trade payables or other obligations being contested or disputed by Borrowers in good faith), but not yet sent. 

  
 6 

 1.26 “Closing Officer’s Certificate” shall have the meaning set forth in
Section 4.1(r) hereof. 
 1.27 “Code” shall mean the Internal Revenue Code of 1986, as the same now exists or may
from time to time hereafter be amended, modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto. 
 1.28 “Collateral” shall have the meaning set forth in Section 5 hereof. 
 1.29 “Collateral Access Agreement” shall mean an agreement in writing, in form and substance reasonably satisfactory to Agent, from any lessor of premises to any Borrower or Guarantor, or any
other person to whom any Collateral is consigned or who has custody, control or possession of any such Collateral or is otherwise the owner or operator of any premises on which any of such Collateral is located, in favor of Agent with respect to the
Collateral at such premises or otherwise in the custody, control or possession of such lessor, consignee or other person. 

1.30 “Collateral Reporting Trigger Event” shall mean if the outstanding principal amount of the Loans exceeds the amount of
Qualified Cash for more than three (3) consecutive days; provided, that, any such Collateral Reporting Trigger Event shall cease to exist to the extent that Qualified Cash exceeds the outstanding principal amount of the Loans for
sixty (60) consecutive days. 
 1.31 “Commitment” shall mean, at any time, as to each Lender, the principal
amount set forth below such Lender’s signature on the signatures pages hereto designated as the Commitment or on Schedule 1 to the Assignment and Acceptance Agreement pursuant to which such Lender became a Lender hereunder in accordance with
the provisions of Section 13.7 hereof, as the same may be adjusted from time to time in accordance with the terms hereof; sometimes being collectively referred to herein as “Commitments”. 

1.32 “Consolidated Net Income” shall mean, with respect to any Person, for any period, the aggregate of the net income (loss)
of such Person and its Subsidiaries, on a consolidated basis, for such period, excluding to the extent included therein any extraordinary, one-time or non-recurring gains, after deducting all charges which should be deducted before arriving at the
net income (loss) for such period, without duplication, and after deducting the Provision for Taxes for such period, all as determined in accordance with GAAP; provided, that, (a) the net income of any Person that is not a
Subsidiary or that is accounted for by the equity method of accounting shall be included only to the extent of the amount of dividends or distributions paid or payable to such Person or a Subsidiary of such Person; (b) the effect of any change
in accounting principles adopted by (or applicable to) such Person or its Subsidiaries after the date hereof (including any cumulative effects resulting from changes in purchase accounting principles) shall be excluded; and (c) the net income
(if positive) of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary to such Person or to any other Subsidiary of such Person is not at the time permitted by operation of the terms of
its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary shall be 

  
 7 

 
excluded. For the purpose of this definition, net income excludes any gain together with any related Provision for Taxes for such gain realized upon the sale or other disposition of any assets or
of any Equity Interests of such Person or a Subsidiary of such Person. 
 1.33 “Credit Facility” shall mean the Loans
and Letters of Credit provided to or for the benefit of any Borrower pursuant to Sections 2.1 and 2.2 hereof. 
 1.34 “Cure
Amount” shall have the meaning set forth in Section 9.17(c). 
 1.35 “Cure Right” shall have the meaning set
forth in Section 9.17(c). 
 1.36 “Cure Standstill Period” shall have the meaning set forth in
Section 9.17(c). 
 1.37 “Customer 1” shall have the meaning set forth in the Customer Designation Letter.

 1.38 “Customer 1 Contract” shall have the meaning set forth in the Customer Designation Letter. 

1.39 “Customer 2” shall have the meaning set forth in the Customer Designation Letter. 

1.40 “Customer 2 Accounts” shall mean any and all Accounts of Borrowers with respect to which Customer 2 is the account debtor
arising from the sale by Borrowers of Inventory, together with the Customer 2 Factoring Agent Related Security, and with respect to each of the foregoing, all proceeds thereof. 

1.41 “Customer 2 Contract” shall have the meaning set forth in the Customer Designation Letter. 

1.42 “Customer 2 Factoring Agent” shall have the meaning set forth in the Customer Designation Letter. 

1.43 “Customer 2 Factoring Agent Discount Agreement” shall have the meaning set forth in the Customer Designation Letter.

 1.44 “Customer 2 Factoring Agent Discount Documents” shall mean, collectively, the Customer 2 Factoring Agent
Discount Agreement and any agreements, documents or instruments executed or delivered by Borrowers or any other Obligor in favor of Customer 2 Factoring Agent in connection therewith, and any UCC financing statements filed by Customer 2 Factoring
Agent against Borrowers or any other Obligor to reflect the interest of Customer 2 Factoring Agent in the Customer 2 Accounts, as the same may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

1.45 “Customer 2 Factoring Agent Intercreditor Agreement” shall mean the intercreditor agreement, dated as of the date hereof,
by and among Customer 2 Factoring Agent, Agent and Customer 2, as the same may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

  
 8 

 1.46 “Customer 2 Factoring Agent Related Security” shall mean with respect to any
Customer 2 Account, all security interests or liens related to any such Customer 2 Account purporting to secure payment of such Customer 2 Account. 
 1.47 “Customer 2 Factoring Agent Termination Date” shall mean the earlier to occur of (i) the termination of the Customer 2 Factoring Agent Discount Documents and (ii) the date that
Borrowers no longer sell, or Customer 2 Factoring Agent no longer purchases, any Customer 2 Accounts pursuant to such Customer 2 Factoring Agent Discount Documents. 
 1.48 “Customer Designation Letter” shall mean the letter agreement, dated of even date herewith, by and among Borrowers and Agent, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced. 
 1.49 “Daily Three Month LIBOR Rate” shall mean, for any day,
the rate of interest equal to LIBOR then in effect for a three (3) month period. When interest is determined in relation to Daily Three Month LIBOR Rate, each change in the interest rate shall become effective each Business Day that Agent
determines that Daily Three Month LIBOR Rate has changed. 
 1.50 “Default” shall mean an act, condition or event
which with notice or passage of time or both would constitute an Event of Default. 
 1.51 “Defaulting Lender” shall
have the meaning set forth in Section 6.11 hereof. 
 1.52 “Deposit Account Control Agreement” shall mean an
agreement in writing, in form and substance reasonably satisfactory to Agent, by and among Agent, any Borrower or Guarantor with a deposit account at any bank and the bank at which such deposit account is at any time maintained which provides that
such bank will comply with instructions originated by Agent directing disposition of the funds in the deposit account and has such other terms and conditions as Agent may require. 

1.53 “EBITDA” shall mean, as to any Person, with respect to any period, an amount equal to: (a) the Consolidated Net
Income of such Person and its Subsidiaries for such period, plus (b) depreciation and amortization, imputed interest, deferred compensation for such period (to the extent deducted in the computation of Consolidated Net Income of such
Person), all in accordance with GAAP, plus (c) Interest Expense for such period (to the extent deducted in the computation of Consolidated Net Income of such Person), plus (d) the Provision for Taxes for such period (to the
extent deducted in the computation of Consolidated Net Income of such Person), plus (e) non-recurring transaction fees, charges and expenses (to the extent included in the computation of Consolidated Net Income of such Person),
plus or minus (f) other non-cash and/or extraordinary income or charges (in accordance with GAAP and to the extent included in the computation of Consolidated Net Income of such Person). 

1.54 “Eligible Accounts” shall mean Accounts created by a Borrower that in each case satisfy the criteria set forth below as
determined by Agent. In general, Accounts shall be Eligible Accounts if: 
 (a) such Accounts arise from the actual and bona
fide sale and delivery of goods by such Borrower or rendition of services by such Borrower in the ordinary course of its business which transactions are completed in accordance with the terms and provisions contained in any documents related
thereto; 

  
 9 

 (b) such Accounts are not unpaid more than sixty (60) days after the original due date
for them or ninety (90) days after the date of the original invoice for them (other than with respect to (i) Customer 1, (A) ninety (90) days after the date of the original invoice for them, assuming, thirty (30) day terms
and (B) one hundred twenty (120) days after the date of the original invoice for them, assuming, sixty (60) day terms, (ii) after the Customer 2 Factoring Agent Termination Date, Customer 2, one hundred twenty (120) days
after the date of the original invoice for them, assuming, seventy-five (75) day terms, and (iii) any other account debtor agreed to by Agent in its discretion, such terms agreed to by Agent in its discretion); 

(c) such Accounts comply with the terms and conditions contained in Section 7.2(b) of this Agreement; 

(d) such Accounts do not arise from sales on consignment, guaranteed sale, sale and return, sale on approval, or other terms under which
payment by the account debtor may be conditional or contingent; 
 (e) the chief executive office of the account debtor with
respect to such Accounts is located in the United States of America or Canada (provided, that, at any time promptly upon Agent’s request, such Borrower shall execute and deliver, or cause to be executed and delivered, such other
agreements, documents and instruments as may be required by Agent to perfect the security interests of Agent in those Accounts of an account debtor with its chief executive office or principal place of business in Canada in accordance with the
applicable laws of the Province of Canada in which such chief executive office or principal place of business is located and take or cause to be taken such other and further actions as Agent may request to enable Agent as secured party with respect
thereto to collect such Accounts under the applicable Federal or Provincial laws of Canada) or, at Agent’s option, if the chief executive office and principal place of business of the account debtor with respect to such Accounts is located in a
jurisdiction other than in the United States of America or Canada, then if either: (i) the account debtor has delivered to such Borrower an irrevocable letter of credit issued or confirmed by a bank satisfactory to Agent and payable only in the
United States of America and in U.S. dollars, sufficient to cover such Account, in form and substance reasonably satisfactory to Agent and if required by Agent, the original of such letter of credit has been delivered to Agent or Agent’s agent
and the issuer thereof, and such Borrower has complied with the terms of Section 5.2(f) hereof with respect to the assignment of the proceeds of such letter of credit to Agent or naming Agent as transferee beneficiary thereunder, as Agent may
specify, or (ii) such Account is subject to credit insurance payable to Agent issued by an insurer and on terms and in an amount acceptable to Agent, or (iii) such Account is otherwise acceptable in all respects to Agent (subject to such
lending formula with respect thereto as Agent may determine); 
 (f) such Accounts do not consist of (i) progress billings
(such that the obligation of the account debtors with respect to such Accounts is conditioned upon such Borrower’s satisfactory completion of any further performance under the agreement giving rise thereto), (ii) bill and hold invoices or
retainage invoices, except as to bill and hold invoices, if Agent shall have received an agreement in writing from the account debtor, in form and substance reasonably satisfactory to Agent, confirming the unconditional obligation of the account
debtor to take the goods related 

  
 10 

 
thereto and pay such invoice, (iii) Accounts that are billed more than thirty (30) days following the final sale and delivery of goods by such Borrower or rendition of services by such
Borrower in the ordinary course of its business, or (iv) COD or credit card sales; 
 (g) the account debtor with respect
to such Accounts has not asserted a counterclaim, defense or dispute and is not owed or does not claim to be owed any amounts that may give rise to any right of setoff or recoupment against such Accounts (but the portion of the Accounts of such
account debtor in excess of the amount at any time and from time to time owed by such Borrower to such account debtor or claimed owed by such account debtor may be deemed Eligible Accounts); 

(h) there are no facts, events or occurrences which would impair the validity, enforceability or collectibility of such Accounts or
reduce the amount payable or delay payment thereunder; 
 (i) such Accounts are subject to the first priority, valid and
perfected security interest of Agent and any goods giving rise thereto are not, and were not at the time of the sale thereof, subject to any liens except those permitted in this Agreement or that are subject to an intercreditor agreement in form and
substance reasonably satisfactory to Agent between the holder of such security interest or lien and Agent; 
 (j) neither the
account debtor nor any officer or employee of the account debtor with respect to such Accounts is an officer, employee, agent or other Affiliate of any Borrower or Guarantor; 
 (k) the account debtors with respect to such Accounts are not any foreign government, the United States of America, any State, political subdivision, department, agency or instrumentality thereof, unless,
if the account debtor is the United States of America, any State, political subdivision, department, agency or instrumentality thereof, upon Agent’s request, the Federal Assignment of Claims Act of 1940, as amended or any similar State or local
law, if applicable, has been complied with in a manner satisfactory to Agent; 
 (l) there are no proceedings or actions known
to such Borrower which are threatened or pending against the account debtors with respect to such Accounts which might result in any material adverse change in any such account debtor’s financial condition (including, without limitation, any
bankruptcy, dissolution, liquidation, reorganization or similar proceeding); 
 (m) the aggregate amount of such Accounts owing
by a single account debtor (other than Customer 1, Customer 2 and any other account debtor identified by Agent from time to time in its discretion) do not constitute more than fifteen (15%) percent of the aggregate amount of all otherwise
Eligible Accounts, and such Accounts owing by each of Customer 1 and Customer 2 do not constitute more than (i) from the date hereof through and including the Customer 2 Factoring Agent Termination Date, in the case of Customer 1, sixty
(60%) percent of the aggregate amount of all otherwise Eligible Accounts, and in the case of Customer 2, fifty (50%) percent of the aggregate amount of all otherwise Eligible Accounts (but the portion of the Accounts not in excess of the
applicable percentages set forth in this paragraph (m)(i) may be deemed Eligible Accounts), and (ii) at all times thereafter, in each case, fifty (50%) percent of the aggregate amount of all otherwise Eligible Accounts (but the portion of
the Accounts not in excess of the applicable percentages set forth in this subparagraph (m)(ii) may be deemed Eligible Accounts); 

  
 11 

 (n) such Accounts are not owed by an account debtor who has Accounts unpaid more than sixty
(60) days after the original due date for them or ninety (90) days after the date of the original invoice for them (other than with respect to (i) Customer 1, (A) ninety (90) days after the date of the original invoice for
them, assuming, thirty (30) day terms and (B) one hundred twenty (120) days after the date of the original invoice for them, assuming, sixty (60) day terms, (ii) after the Customer 2 Factoring Agent Termination Date,
Customer 2, one hundred twenty (120) days after the date of the original invoice for them, assuming, seventy-five (75) day terms, and (iii) any other account debtor agreed to by Agent in its discretion, such terms agreed to by Agent
in its discretion) which constitute more than twenty-five (25%) percent of the total Accounts of such account debtor; 

(o) the account debtor is not located in a state requiring the filing of a Notice of Business Activities Report or similar report in
order to permit such Borrower to seek judicial enforcement in such State of payment of such Account, unless such Borrower has qualified to do business in such state or has filed a Notice of Business Activities Report or equivalent report for the
then current year or such failure to file and inability to seek judicial enforcement is capable of being remedied without any material delay or material cost; 
 (p) such Accounts are owed by account debtors whose total indebtedness to such Borrower does not exceed the credit limit with respect to such account debtors as determined by such Borrower from time to
time, to the extent such credit limit as to any account debtor is established consistent with the current practices of such Borrower as of the date hereof and such credit limit is acceptable to Agent (but the portion of the Accounts not in excess of
such credit limit may be deemed Eligible Accounts); and 
 (q) such Accounts are owed by account debtors deemed creditworthy at
all times by Agent in good faith. 
 The criteria for Eligible Accounts set forth above may only be changed and any new criteria for Eligible
Accounts may only be established by Agent in good faith based on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an event, condition or other circumstance existing on the date hereof to the
extent Agent has no written notice thereof from a Borrower prior to the date hereof, in either case under clause (i) or (ii) which adversely affects or could reasonably be expected to adversely affect the Accounts in the good faith
determination of Agent. Any Accounts that are not Eligible Accounts shall nevertheless be part of the Collateral. 
 1.55
“Eligible Customer 2 Accounts” shall mean, from the date hereof through and including the Customer 2 Factoring Agent Termination Date, Customer 2 Accounts that satisfy the criteria set forth in the definition of Eligible Accounts (other
than with respect to paragraphs (b) and (n) of such definition); provided, that, in no event shall a Customer 2 Account be an Eligible Customer 2 Account if (a) it is unpaid after thirty (30) days after the original
invoice date; (b) it is owed by Customer 2 who has Accounts unpaid more than thirty (30) days after the original invoice date, which unpaid Accounts constitute more than twenty-five (25%) percent of the total Accounts of Customer 2;
(c) Borrowers fail to comply with the reporting obligations set forth in Section 7.1(a)(ii)(A) and Section 7.1(a)(iii)(G) hereof; or (d) Agent fails to have access at all times (other

  
 12 

 
than during network outages that may occur in the ordinary course) to the Customer 2 Factoring Agent System (as defined in the Customer 2 Factoring Agent Discount Documents) for the purposes of,
among other things, reviewing the details of any Customer 2 Accounts that have been purchased by Customer 2 Factoring Agent. The parties hereto acknowledge, confirm and agree that any Customer 2 Account sold to, and purchased by, Customer 2
Factoring Agent pursuant to the Customer 2 Factoring Agent Discount Documents shall not be an Eligible Customer 2 Account. At all times after the Customer 2 Factoring Agent Termination Date, Customer 2 Accounts shall satisfy all of the criteria set
forth in the definition of Eligible Accounts in order to be deemed Eligible Accounts. 
 1.56 “Eligible Inventory”
shall mean, as to each Borrower, Inventory of such Borrower consisting of finished goods held for resale in the ordinary course of the business of such Borrower and raw materials for such finished goods, that in each case satisfy the criteria set
forth below as determined by Agent. In general, Eligible Inventory shall not include: 
 (a) work-in-process, including any
manufactured fabricated parts Inventory; 
 (b) spare parts for equipment; 

(c) packaging and shipping materials; 
 (d) supplies used or consumed in such Borrower’s business; 
 (e) Inventory at
premises that constitute less than ten (10%) percent of the total aggregate amount of Inventory of all Borrowers; 
 (f)
Inventory at premises other than those owned or leased and controlled by such Borrower; except, that, any Inventory which would otherwise be deemed Eligible Inventory that is not located at premises owned and operated by such Borrower
may nevertheless be considered Eligible Inventory: (i) as to locations which are leased by such Borrower, if Agent shall have received a Collateral Access Agreement from the owner and lessor of such location, duly authorized, executed and
delivered by such owner and lessor, or if Agent shall not have received such Collateral Access Agreement (or Agent shall determine to accept a Collateral Access Agreement that does not include all required provisions or provisions in the form
otherwise required by Agent), Agent may, at its option, nevertheless consider Inventory at such location to be Eligible Inventory to the extent Agent shall have established such Reserves in respect of amounts at any time payable by such Borrower to
the owner and lessor thereof in an amount not to exceed at any time the aggregate of amounts payable for the next three (3) months plus any accrued and unpaid past due charges and other fees, costs and expenses due by such Borrower from any
such time to the owner and lessor thereof, and (ii) as to locations owned and operated by a third person, if Agent shall have received a Collateral Access Agreement from such owner and operator with respect to such location, duly authorized,
executed and delivered by such owner and operator or if Agent shall not have received such Collateral Access Agreement (or Agent shall determine to accept a Collateral Access Agreement that does not include all required provisions or provisions in
the form otherwise required by Agent), Agent may, at its option, nevertheless consider Inventory at such location to be Eligible Inventory to the extent Agent shall have established such Reserves in respect of amounts at any time payable by such
Borrower to the owner and operator thereof in an amount not to exceed at any time the aggregate of amounts payable for the next three (3) months from any such time to such owner and operator; 

  
 13 

 (g) Inventory subject to a security interest or lien in favor of any Person other than Agent
except those permitted in this Agreement or that are subject to an intercreditor agreement in form and substance reasonably satisfactory to Agent between the holder of such security interest or lien and Agent; 

(h) bill and hold goods; 
 (i) unserviceable, obsolete or slow moving Inventory; 
 (j) Inventory that is not
subject to the first priority, valid and perfected security interest of Agent; 
 (k) returned, damaged and/or defective
Inventory; 
 (l) Inventory purchased or sold on consignment; 

(m) Inventory located outside the United States of America; and 
 (n) Inventory subject to third party trademark, licensing or other proprietary rights, unless Agent is satisfied that such Inventory can be freely sold by Agent on and after the occurrence of an Event of
a Default despite such third party rights. 
 The criteria for Eligible Inventory set forth above may only be changed and any
new criteria for Eligible Inventory may only be established by Agent in good faith based on either: (A) an event, condition or other circumstance arising after the date hereof, or (B) an event, condition or other circumstance existing on
the date hereof to the extent Agent has no written notice thereof from any Borrower (or Administrative Borrower on behalf of any Borrower) prior to the date hereof, in either case under clause (A) or (B) which adversely affects or could
reasonably be expected to adversely affect the Inventory in the good faith determination of Agent. Any Inventory that is not Eligible Inventory shall nevertheless be part of the Collateral. 

1.57 “Eligible Transferee” shall mean (a) any Lender; (b) the parent company of any Lender and/or any Affiliate of
such Lender which is at least fifty (50%) percent owned by such Lender or its parent company; (c) any person (whether a corporation, partnership, trust or otherwise) that is engaged in the business of making, purchasing, holding or
otherwise investing in bank loans and similar extensions of credit in the ordinary course of its business and is administered or managed by a Lender or with respect to any Lender that is a fund which invests in bank loans and similar extensions of
credit, any other fund that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor, and in each case is approved by Agent; and (d) any
other commercial bank, financial institution or “accredited investor” (as defined in Regulation D under the Securities Act of 1933) approved by Agent; provided, that, (i) neither any Borrower nor any Guarantor or any
Affiliate of any Borrower or Guarantor shall qualify as an Eligible Transferee and (ii) no Person to whom any Indebtedness which is in any way subordinated in right of payment to any other Indebtedness of any Borrower or Guarantor shall qualify
as an Eligible Transferee, except, in each case, as Agent may otherwise specifically agree. 

  
 14 

 1.58 “Environmental Laws” shall mean all foreign, Federal, State and local laws
(including common law), legislation, rules, codes, licenses, permits (including any conditions imposed therein), authorizations, judicial or administrative decisions, injunctions or agreements between any Borrower or Guarantor and any Governmental
Authority, (a) relating to pollution and the protection, preservation or restoration of the environment (including air, water vapor, surface water, ground water, drinking water, drinking water supply, surface land, subsurface land, plant and
animal life or any other natural resource), or to human health or safety, (b) relating to the exposure to, or the use, storage, recycling, treatment, generation, manufacture, processing, distribution, transportation, handling, labeling,
production, release or disposal, or threatened release, of Hazardous Materials, or (c) relating to all laws with regard to recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Materials. The term
“Environmental Laws” includes (i) the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal Superfund Amendments and Reauthorization Act, the Federal Water Pollution Control Act of 1972, the
Federal Clean Water Act, the Federal Clean Air Act, the Federal Resource Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments thereto), the Federal Solid Waste Disposal and the Federal Toxic Substances Control
Act, the Federal Insecticide, Fungicide and Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii) applicable state counterparts to such laws and (iii) any common law or equitable doctrine that may impose liability or
obligations for injuries or damages due to, or threatened as a result of, the presence of or exposure to any Hazardous Materials. 
 1.59 “Equipment” shall mean, as to each Borrower and Guarantor, all of such Borrower’s and Guarantor’s now owned and hereafter acquired equipment, wherever located, including
machinery, data processing and computer equipment (whether owned or licensed and including embedded software), vehicles, tools, furniture, fixtures, all attachments, accessions and property now or hereafter affixed thereto or used in connection
therewith, and substitutions and replacements thereof, wherever located. 
 1.60 “Equity Cure” shall have the meaning
set forth in Section 9.17(c). 
 1.61 “Equity Interests” shall mean, with respect to any Person, all of the
shares, interests, participations or other equivalents (however designated) of such Person’s capital stock or partnership, limited liability company or other equity or ownership interests at any time outstanding, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or other equity interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other equity interests
in) such Person and all warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other equity interests), but excluding (a) any debt security that is convertible into or exchangeable for any such
shares (or such other equity interests and (b) any stock appreciation rights, interests in phantom equity plans or similar rights or interests. 
 1.62 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, together with all rules, regulations and interpretations thereunder or related thereto. 

  
 15 

 1.63 “ERISA Affiliate” shall mean any person required to be aggregated with any
Borrower, any Guarantor or any of its or their respective Subsidiaries under Sections 414(b), 414(c), 414(m) or 414(o) of the Code. 
 1.64 “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder, with respect to a Pension Plan, other
than events as to which the requirement of notice has been waived in regulations by the Pension Benefit Guaranty Corporation; (b) the adoption of any amendment to a Pension Plan that would require the provision of security pursuant to
Section 401(a)(29) of the Code or Section 307 of ERISA; (c) a complete or partial withdrawal by any Borrower, Guarantor or any ERISA Affiliate from a Multiemployer Plan or a cessation of operations which is treated as such a
withdrawal or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the
commencement of proceedings by the Pension Benefit Guaranty Corporation to terminate a Pension Plan; (e) an event or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Plan; (f) the imposition of any liability under Title IV of ERISA, other than the Pension Benefit Guaranty Corporation premiums due but not delinquent under Section 4007 of ERISA, upon any
Borrower, Guarantor or any ERISA Affiliate in excess of $100,000; and (g) any other event or condition with respect to a Plan including any Pension Plan subject to Title IV of ERISA maintained, or contributed to, by any ERISA Affiliate that
could reasonably be expected to result in liability of any Borrower in excess of $100,000. 
 1.65 “Event of Default”
shall mean the occurrence or existence of any event or condition described in Section 10.1 hereof. 
 1.66 “Excess
Availability” shall mean the amount, as determined by Agent, calculated at any date, equal to: (a) the lesser of: (i) the Borrowing Base and (ii) the Maximum Credit (in each case under (i) or (ii), without duplication, after
giving effect to any Reserves other than any Reserves in respect of Letter of Credit Obligations), minus (b) the sum of: (i) the amount of all then outstanding and unpaid Obligations (but not including for this purpose Obligations
arising pursuant to any guarantees in favor of Agent and Lenders of the Obligations of the other Borrowers or the then outstanding aggregate principal amount of any outstanding Letter of Credit Obligations), plus (ii) the amount of all
Reserves then established in respect of Letter of Credit Obligations. 
 1.67 “Exchange Act” shall mean the Securities
Exchange Act of 1934, together with all rules, regulations and interpretations thereunder or related thereto. 
 1.68
“Excluded Accounts” shall mean deposit accounts that are specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Borrower’s or any Guarantor’s
salaried employees or, to the extent the balances thereof do not exceed at any one time $10,000 in the aggregate, petty cash accounts. 
 1.69 “Excluded Property” shall mean: 
 (a) any rights or interests in
any contract, lease, sublease, permit, license, charter or license agreement covering personal property, as such, if under the terms of such contract, lease, 

  
 16 

 
sublease, permit, license, charter or license agreement, or applicable law with respect thereto, the valid grant of a security interest or lien therein to Agent is prohibited and such prohibition
has not been or is not waived or the consent of the other party to such contract, lease, permit, license, charter or license agreement has not been or is not otherwise obtained or under applicable law such prohibition cannot be waived;
provided, that, the foregoing exclusion shall in no way be construed (i) to apply if any such prohibition is unenforceable under Sections 9-406, 9-407 or 9-408 of the UCC or other applicable law or (ii) so as to limit, impair
or otherwise affect Agent’s unconditional continuing security interests in and liens upon any rights or interests of any Borrower in or to monies due or to become due under any such contract, lease, permit, license, charter or license agreement
(including any Receivables); 
 (b) equity interests of any Subsidiary organized under the laws of a jurisdiction outside the
United States of America, its territories or its possessions that is a “controlled foreign corporation” (as such term is defined in Section 957(a) of the Code or a successor provision thereof) in excess of sixty-five
(65%) percent of all of the issued and outstanding shares of Equity Interests of such Subsidiary entitled to vote (within the meaning of Treasury Regulation Section 1.956-2); and 

(c) applications for any trademarks that have been filed with the U.S. Patent and Trademark Office on the basis of an
“intent-to-use” with respect to such marks, unless and until a statement of use or amendment to allege use is filed and accepted by the U.S. Patent and Trademark Office or any other filing is made or circumstances otherwise change so that
the interests of a Borrower in such marks is no longer on an “intent-to-use” basis, at which time such marks shall automatically and without further action by the parties be subject to the security interests and liens granted by a Borrower
to Agent hereunder. 
 1.70 “Existing Tax Lien” shall mean the Notice of Federal Tax Lien in the amount of $192,772.09
filed by the Internal Revenue Service against Lighting Science with the Secretary of State of the State of Texas, as more fully described on Schedule 8.4 to the Information Certificate. 

1.71 “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate per annum equal to, for each day during such
period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three (3) Federal funds brokers of recognized standing selected by it. 

1.72 “Fee Letter” shall mean the letter agreement, dated of even date herewith, by and among Borrowers and Agent, setting forth
certain fees payable by Borrowers to Agent for the benefit of itself and Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

1.73 “Fill Rate Contract” shall mean any written contract that requires a Borrower to deliver a certain quantity of goods or
other products on time to a customer, including, without limitation, (a) the Customer 1 Contract, and (b) the Customer 2 Contract. 

  
 17 

 1.74 “Financial Covenant Trigger Event” shall mean, if: (a) if the Borrowing
Base is less than the Maximum Credit, Excess Availability is less than $6,000,000 for any period of three (3) consecutive Business Days, and (b) if the Borrowing Base is greater than the Maximum Credit (such excess being the
“Financial Covenant Trigger Event Excess”), Excess Availability is less than an amount equal to $6,000,000 minus the amount of Qualified Cash (up to the lesser of (i) the Financial Covenant Trigger Event Excess and
(ii) $6,000,000) included in the Borrowing Base for which no loans are outstanding, for any period of three (3) consecutive Business Days; provided, that, any such Financial Covenant Trigger Event under clauses (a) or
(b) above shall cease to exist to the extent that Excess Availability is greater than $6,000,000 for sixty (60) consecutive days. For the purposes of calculating minimum Excess Availability under this definition of Financial Covenant
Trigger Event only, and not for any other purpose under this Agreement whatsoever, all Loans outstanding at any given time hereunder shall first be deemed to be Loans made against Eligible Accounts and Eligible Inventory and second against Qualified
Cash. 
 1.75 “Financing Agreements” shall mean, collectively, this Agreement, the Fee Letter and all notes,
guarantees, security agreements, mortgages, deposit account control agreements, investment property control agreements, intercreditor agreements and all other agreements, documents and instruments now or at any time hereafter executed and/or
delivered by any Borrower or Obligor in connection with this Agreement; provided, that, in no event shall the term Financing Agreements be deemed to include any Hedge Agreement. 

1.76 “Foreign Lender” shall mean any Lender that is organized under the laws of a jurisdiction other than that in which a
Borrower is resident for tax purposes. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 

1.77 “Funding Bank” shall have the meaning given to such term in Section 3.3 hereof. 

1.78 “GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time
as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board which are applicable to
the circumstances as of the date of determination consistently applied; except, that, for purposes of Section 9.17 hereof, (a) GAAP shall be determined on the basis of such principles in effect on the date hereof and
consistent with those used in the preparation of the most recent audited financial statements delivered to Agent prior to the date hereof and (b) all financial covenants shall be calculated without giving effect to any election under Statement
of Financial Account Standards 159 or any similar accounting principle. 
 1.79 “Governmental Authorities” shall mean
any nation or government, any state, province, or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government; each sometimes being referred to herein individually as a “Governmental Authority”. 
 1.80 “Guarantors” shall mean, collectively (together with their respective successors and assigns): (a) BioLogical Illumination, LLC, a Delaware limited liability company; (b) LSGC,
LLC, a 

  
 18 

 
Delaware limited liability company; and (c) any Person that at any time after the date hereof becomes party to a guarantee in favor of Agent or any Lender or otherwise liable on or with
respect to the Obligations or who is the owner of any property which is security for the Obligations (other than Borrowers); each sometimes being referred to herein individually as a “Guarantor”. 

1.81 “Hazardous Materials” shall mean any hazardous, toxic or dangerous substances, materials and wastes, including
hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials, biological substances, polychlorinated biphenyls, pesticides, herbicides and
any other kind and/or type of pollutants or contaminants (including materials which include such hazardous constituents), sewage, sludge, industrial slag, solvents and/or any other similar substances, materials, or wastes and including any other
substances, materials or wastes that are or become regulated under any Environmental Law (including any that are or become classified as hazardous or toxic under any Environmental Law). 

1.82 “Hedge Agreement” shall mean an agreement between any Borrower or Guarantor and Agent or any Bank Product Provider that is
a swap agreement as such term is defined in 11 U.S.C. Section 101, and including any rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, spot foreign exchange
agreement, rate cap agreement rate, floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other similar agreement (including any option to enter into any of the foregoing or a
master agreement for any the foregoing together with all supplements thereto) for the purpose of protecting against or managing exposure to fluctuations in interest or exchange rates, currency valuations or commodity prices; sometimes being
collectively referred to herein as “Hedge Agreements”. 
 1.83 “Indebtedness” shall mean, with respect to
any Person, any liability of such Person, whether or not contingent, (a) in respect of borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof) or evidenced by bonds,
notes, debentures or similar instruments; (b) representing the balance deferred and unpaid of the purchase price of any property or services (other than an account payable to a trade creditor (whether or not an Affiliate) incurred in the
ordinary course of business of such Person and payable in accordance with customary trade practices); (c) all obligations as lessee under leases which have been, or should be, in accordance with GAAP recorded as Capital Leases; (d) any
contractual obligation, contingent or otherwise, of such Person to pay or be liable for the payment of any indebtedness described in this definition of another Person, including, without limitation, any such indebtedness, directly or indirectly
guaranteed, or any agreement to purchase, repurchase, or otherwise acquire such indebtedness, obligation or liability or any security therefor, or to provide funds for the payment or discharge thereof, or to maintain solvency, assets, level of
income, or other financial condition; (e) all obligations with respect to redeemable stock and redemption or repurchase obligations under any Equity Interests or other equity securities issued by such Person; (f) all reimbursement
obligations and other liabilities of such Person with respect to surety bonds (whether bid, performance or otherwise), letters of credit, banker’s acceptances, drafts or similar documents or instruments issued for such Person’s account;
(g) all indebtedness of such Person in respect of indebtedness of another Person for borrowed money or indebtedness of another Person otherwise described in this definition which is secured by any consensual lien, security interest, collateral
assignment, conditional sale, mortgage, deed of trust, or other encumbrance on any asset of 

  
 19 

 
such Person, whether or not such obligations, liabilities or indebtedness are assumed by or are a personal liability of such Person, all as of such time; (h) all obligations, liabilities and
indebtedness of such Person (marked to market) arising under swap agreements, cap agreements and collar agreements and other agreements or arrangements designed to protect such person against fluctuations in interest rates or currency or commodity
values; (i) all obligations owed by such Person under License Agreements with respect to non-refundable, advance or minimum guarantee royalty payments; (j) indebtedness of any partnership or joint venture in which such Person is a general
partner or a joint venturer to the extent such Person is liable therefor as a result of such Person’s ownership interest in such entity, except to the extent that the terms of such indebtedness expressly provide that such Person is not liable
therefor or such Person has no liability therefor as a matter of law and (k) the principal and interest portions of all rental obligations of such Person under any synthetic lease or similar off-balance sheet financing where such transaction is
considered to be borrowed money for tax purposes but is classified as an operating lease in accordance with GAAP. 
 1.84
“Indemnitee” shall have the meaning set forth in Section 11.5 hereof. 
 1.85 “Information Certificate”
shall mean the Information Certificate of Borrowers and Guarantors constituting Exhibit B hereto containing material information with respect to Borrowers, Guarantors and their respective businesses and assets provided by or on behalf of Borrowers
and Guarantors to Agent in connection with the preparation of this Agreement and the other Financing Agreements and the financing arrangements provided for herein. 
 1.86 “Intellectual Property” shall mean, as to each Borrower and Guarantor, such Borrower’s and Guarantor’s now owned and hereafter arising or acquired: patents, patent rights, patent
applications, copyrights, works which are the subject matter of copyrights, copyright applications, copyright registrations, trademarks, servicemarks, tradenames, trade styles, trademark and service mark applications, and licenses and rights to use
any of the foregoing and all applications, registrations and recordings relating to any of the foregoing as may be filed in the United States Copyright Office, the United States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof, any political subdivision thereof or in any other country or jurisdiction, together with all rights and privileges arising under applicable law with respect to any Borrower’s or Guarantor’s use of any of
the foregoing; all extensions, renewals, reissues, divisions, continuations, and continuations-in-part of any of the foregoing; all rights to sue for past, present and future infringement of any of the foregoing; inventions, trade secrets, formulae,
processes, compounds, drawings, designs, blueprints, surveys, reports, manuals, and operating standards; goodwill (including any goodwill associated with any trademark or servicemark, or the license of any trademark or servicemark); customer and
other lists in whatever form maintained; trade secret rights, copyright rights, rights in works of authorship, domain names and domain name registration; software and contract rights relating to computer software programs, in whatever form created
or maintained. 
 1.87 “Interest Expense” shall mean, for any period, as to any Person, as determined in accordance
with GAAP, the total interest expense of such Person and its Subsidiaries, on a consolidated basis for such period, whether paid or accrued during such period but without duplication (including the interest component of Capital Leases for such
period), including, without limitation, discounts in connection with the sale of any Accounts that are sold for purposes other than collection, but excluding interest paid in property other than cash and any other interest expense not paid in cash
during such period. 

  
 20 

 1.88 “Interest Rate” shall mean: 

(a) Subject to clause (b) of this definition below: 
 (i) as to Base Rate Loans, a rate equal to Base Rate plus the Applicable Margin for Base Rate Loans, and 
 (ii) as to LIBOR Rate Loans, a rate equal to the Daily Three Month LIBOR Rate plus the Applicable Margin for LIBOR Rate Loans. 
 (b) Notwithstanding anything to the contrary contained in clause (a) of this definition, the Interest Rate shall mean the rate of three (3%) percent per annum in excess of the Base Rate as to
Base Rate Loans and the rate of three (3%) percent per annum in excess of the Daily Three Month LIBOR Rate as to LIBOR Rate Loans, at Agent’s option, without notice, (i) either (A) for the period on and after the date of
termination or non-renewal hereof until such time as all Obligations are indefeasibly paid and satisfied in full in immediately available funds, or (B) for the period from and after the date of the occurrence of any Event of Default, and for so
long as such Event of Default is continuing as determined by Agent and (ii) on the Revolving Loans to Borrowers at any time outstanding in excess of the Borrowing Base (whether or not such excess(es) arise or are made with or without
Agent’s or any Lender’s knowledge or consent and whether made before or after an Event of Default). 
 1.89
“Inventory” shall mean, as to each Borrower and Guarantor, all of such Borrower’s and Guarantor’s now owned and hereafter existing or acquired goods, wherever located, which (a) are leased by such Borrower or Guarantor as
lessor; (b) are held by such Borrower or Guarantor for sale or lease or to be furnished under a contract of service; (c) are furnished by such Borrower or Guarantor under a contract of service; or (d) consist of raw materials, work in
process, finished goods or materials used or consumed in its business. 
 1.90 “Inventory Loan Limit” shall mean, at
any time, the amount equal to the lesser of (a) $7,500,000 and (b) one hundred (100%) percent of the outstanding principal amount of Loans made against Eligible Accounts. 

1.91 “Investment Property Control Agreement” shall mean an agreement in writing, in form and substance reasonably satisfactory
to Agent, by and among Agent, any Borrower or Guarantor (as the case may be) and any securities intermediary, commodity intermediary or other person who has custody, control or possession of any investment property of such Borrower or Guarantor
acknowledging that such securities intermediary, commodity intermediary or other person has custody, control or possession of such investment property on behalf of Agent, that it will comply with entitlement orders originated by Agent with respect
to such investment property, or other instructions of Agent, and has such other terms and conditions as Agent may require. 

1.92 “Issuing Bank” shall mean Wells Fargo or any Lender that is approved by Agent that shall issue a Letter of Credit for the
account of a Borrower and have agreed in a manner satisfactory to Agent to be subject to the terms hereof as an Issuing Bank. 

  
 21 

 1.93 “Lenders” shall mean the financial institutions who are signatories hereto as
Lenders and other persons made a party to this Agreement as a Lender in accordance with Section 13.7 hereof, and their respective successors and assigns; each sometimes being referred to herein individually as a “Lender”. 

1.94 “Letter of Credit Documents” shall mean, with respect to any Letter of Credit, such Letter of Credit, any amendments
thereto, any documents delivered in connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing
for (a) the rights and obligations of the parties concerned or at risk or (b) any collateral security for such obligations. 
 1.95 “Letter of Credit Limit” shall mean, at any time, the amount equal to $2,000,000. 
 1.96 “Letter of Credit Obligations” shall mean, at any time, the sum of (a) the aggregate undrawn amount of all Letters of Credit outstanding at such time, plus (b) the aggregate
amount of all drawings under Letters of Credit for which Issuing Bank has not at such time been reimbursed, plus (c) without duplication, the aggregate amount of all payments made by each Lender to Issuing Bank with respect to such
Lender’s participation in Letters of Credit as provided in Section 2.2 for which Borrowers have not at such time reimbursed the Lenders, whether by way of a Revolving Loan or otherwise. 

1.97 “Letters of Credit” shall mean all letters of credit (whether documentary or stand-by and whether for the purchase of
Inventory, Equipment or otherwise) issued by an Issuing Bank for the account of any Borrower pursuant to this Agreement, and all amendments, renewals, extensions or replacements thereof and including, but not limited to, the Existing Letters of
Credit. 
 1.98 “LIBOR” shall mean the Wells Fargo LIBOR rate (which is a rate chosen by Agent that tracks, but does
not mirror, the rate set forth in The Wall Street Journal under the heading Money Rates and described as the “London Interbank Offered Rates”) for the applicable interest period (rounded up to the nearest one-eighth of one percent
(1%)) as adjusted to satisfy Federal Reserve System requirements. 
 1.99 “LIBOR Rate Loans” shall mean any Loans
or portion thereof on which interest is payable based on the Daily Three Month LIBOR Rate in accordance with the terms hereof. 

1.100 “License Agreements” shall have the meaning set forth in Section 8.11 hereof. 

1.101 “Lighting Science” shall have the meaning set forth in introductory paragraph hereto. 

1.102 “Lighting Science Mexico” shall mean Lighting Science Group Mexico SRL, a maquiladora organized under the laws of Mexico.

 1.103 “Loans” shall mean, collectively, the Revolving Loans. 

1.104 “Material Adverse Effect” shall mean a material adverse effect on (a) the financial condition, business, performance
or operations of Borrowers; (b) the legality, validity or enforceability of this Agreement or any of the other Financing Agreements; (c) the legality, validity, 

  
 22 

 
enforceability, perfection or priority of the security interests and liens of Agent upon the Collateral; (d) the Collateral or its value; (e) the ability of any Borrower to repay the
Obligations or of any Borrower to perform its obligations under this Agreement or any of the other Financing Agreements as and when to be performed; or (f) the ability of Agent or any Lender to enforce the Obligations or realize upon the
Collateral or otherwise with respect to the rights and remedies of Agent and Lenders under this Agreement or any of the other Financing Agreements. 
 1.105 “Material Contract” shall mean (a) any contract or other agreement (other than the Financing Agreements), written or oral, of any Borrower or Guarantor involving monetary liability of
or to any Person in an amount in excess of $250,000 in any fiscal year and (b) any other contract or other agreement (other than the Financing Agreements), whether written or oral, to which any Borrower or Guarantor is a party as to which the
breach, nonperformance, cancellation or failure to renew by any party thereto would have a Material Adverse Effect. 
 1.106
“Maturity Date” shall have the meaning set forth in Section 13.1 hereof. 
 1.107 “Maximum Credit”
shall mean the amount of $15,000,000. 
 1.108 “Multiemployer Plan” shall mean a “multi-employer plan” as
defined in Section 4001(a)(3) of ERISA which is or was at any time during the current year or the immediately preceding six (6) years contributed to by any Borrower, Guarantor or any ERISA Affiliate or with respect to which any Borrower,
Guarantor or any ERISA Affiliate may incur any liability. 
 1.109 “Net Recovery Percentage” shall mean the fraction,
expressed as a percentage, (a) the numerator of which is the amount equal to the amount of the recovery in respect of the Inventory at such time on a “net orderly liquidation value” basis as set forth in the most recent acceptable
appraisal of Inventory received by Agent in accordance with Section 7.3, net of operating expenses, liquidation expenses and commissions, and (b) the denominator of which is the applicable original cost of the aggregate amount of the
Inventory subject to such appraisal. 
 1.110 “Non-compliant Testing Period” shall have the meaning set forth in
Section 9.17(c). 
 1.111 “Obligations” shall mean (a) any and all Loans, Letter of Credit Obligations and
all other obligations, liabilities and indebtedness of every kind, nature and description owing by any or all of Borrowers to Agent or any Lender or any Issuing Bank, including principal, interest, charges, fees, costs and expenses, however
evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under this Agreement or any of the other Financing Agreements or on account of any Letter of Credit and all other Letter of Credit Obligations, whether now existing
or hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any case with respect to such Borrower under the United States Bankruptcy Code or any similar statute
(including the payment of interest and other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such case), whether direct or indirect,
absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, or secured or unsecured and (b) for purposes only of Section 5.1 hereof and subject to the priority in right of payment set forth
in Section 6.4 hereof, all obligations, liabilities and indebtedness of every kind, nature and description owing by any or all of Borrowers or Guarantors to Agent or any Bank 

  
 23 

 
Product Provider arising under or pursuant to any Bank Products, whether now existing or hereafter arising; provided, that, (i) as to any such obligations, liabilities and
indebtedness arising under or pursuant to a Hedge Agreement, the same shall only be included within the Obligations if upon Agent’s request, Agent shall have entered into an agreement, in form and substance reasonably satisfactory to Agent,
with the Bank Product Provider that is a counterparty to such Hedge Agreement, as acknowledged and agreed to by Borrowers and Guarantors, providing for the delivery to Agent by such counterparty of information with respect to the amount of such
obligations and providing for the other rights of Agent and such Bank Product Provider in connection with such arrangements, (ii) any Bank Product Provider, other than Wells Fargo and its Affiliates, shall have delivered written notice to Agent
that (A) such Bank Product Provider has entered into a transaction to provide Bank Products to a Borrower and Guarantor and (B) the obligations arising pursuant to such Bank Products provided to Borrowers and Guarantors constitute
Obligations entitled to the benefits of the security interest of Agent granted hereunder, and Agent shall have accepted such notice in writing and (iii) in no event shall any Bank Product Provider acting in such capacity to whom such
obligations, liabilities or indebtedness are owing be deemed a Lender for purposes hereof to the extent of and as to such obligations, liabilities or indebtedness; except, that, each reference to the term “Lender” in Sections
12.1, 12.2, 12.3(b), 12.6, 12.7, 12.9, 12.12 and 13.6 hereof shall be deemed to include such Bank Product Provider and in no event shall the approval of any such person in its capacity as Bank Product Provider be required in connection with the
release or termination of any security interest or lien of Agent. 
 1.112 “Obligor” shall mean any guarantor,
endorser, acceptor, surety or other person liable on or with respect to the Obligations or who is the owner of any property which is security for the Obligations (including, without limitation, Guarantors), other than Borrowers. 

1.113 “OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets Control. 

1.114 “Other Taxes” shall have the meaning given to such term in Section 6.5 hereof. 

1.115 “Participant” shall mean any financial institution that acquires and holds a participation in the interest of any Lender
in any of the Loans and Letters of Credit in conformity with the provisions of Section 13.7 of this Agreement governing participations. 
 1.116 “Pension Plan” shall mean a pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA which any Borrower or any Guarantor sponsors, maintains, or to which any
Borrower, any Guarantor or any ERISA Affiliate makes, is making, or is obligated to make contributions, other than a Multiemployer Plan. 
 1.117 “Permits” shall having the meaning given to such term in Section 8.7 hereof. 
 1.118 “Person” or “person” shall mean any individual, sole proprietorship, partnership, corporation (including any corporation which elects subchapter S status under the Code),
limited liability company, limited liability partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government or any agency or instrumentality or political subdivision thereof.

  
 24 

 1.119 Plan” shall mean an employee pension benefit plan (as defined in
Section 3(2) of ERISA), other than a Pension Plan or a Multiemployer Plan, which any Borrower or any Obligor sponsors, maintains or to which it makes, is making or is obligated to make contributions. 

1.120 “Pro Rata Share” shall mean as to any Lender, the fraction (expressed as a percentage) the numerator of which is such
Lender’s Commitment and the denominator of which is the aggregate amount of all of the Commitments of Lenders, as adjusted from time to time in accordance with the provisions of Section 13.7 hereof; provided, that, if the
Commitments have been terminated, the numerator shall be the unpaid amount of such Lender’s Loans and its interest in the Letters of Credit and the denominator shall be the aggregate amount of all unpaid Loans and Letters of Credit. 

1.121 “Provision for Taxes” shall mean an amount equal to all taxes imposed on or measured by net income, whether Federal,
State, Provincial, county or local, and whether foreign or domestic, that are paid or payable by any Person in respect of any period in accordance with GAAP. 
 1.122 “Qualified Cash” shall mean unrestricted cash and Cash Equivalents of Borrowers maintained in the Qualified Cash Account that (a) are subject to the valid, enforceable and first
priority perfected security interest of Agent, (b) are in the Qualified Cash Account and, if requested by Agent in its discretion, subject to a Deposit Account Control Agreement or an Investment Account Control Agreement, as the case may be, in
form and substance reasonably satisfactory to Agent, (c) are available for use by a Borrower, without condition or restriction (other than in favor of Agent), (d) are free and clear of any pledge, security interest, lien, claim or other
encumbrance (other than in favor of Agent and other than in favor of the depository bank or securities intermediary where the deposit account or investment account is maintained for its customary fees and charges) and (e) for which Agent shall
have received evidence, in form and substance reasonably satisfactory to Agent, of the amount of such cash or Cash Equivalents held in such deposit account or investment account as of the applicable date of the calculation of the Borrowing Base and
the satisfaction of the other conditions herein. 
 1.123 “Qualified Cash Account” shall mean account no. 4122091978
maintained at Wells Fargo for the account of Lighting Science (or such other account designated in writing by Agent and Lighting Science) with which cash equity capital contributions made by Sponsor (or such other Person(s) designated in writing by
Sponsor and satisfactory to Agent as determined in good faith and in exercise of reasonable (from the perspective of an asset based secured lender) business judgment) to or for the benefit of Borrowers and Guarantors are deposited and maintained,
which cash equity capital contributions shall be used by Borrowers only to repay the Obligations and shall be applied in accordance with the terms of this Agreement. 
 1.124 “Quarterly Average Excess Availability” shall mean, for any calendar quarter, the daily average of the aggregate amount of Excess Availability for such calendar quarter. 

1.125 “Real Property” shall mean all now owned and hereafter acquired real property of each Borrower and Guarantor, including
leasehold interests, together with all buildings, structures, and other improvements located thereon and all licenses, easements and appurtenances relating thereto, wherever located. 

  
 25 

 1.126 “Receivables” shall mean all of the following now owned or hereafter arising
or acquired property of each Borrower and Guarantor: (a) all Accounts; (b) all interest, fees, late charges, penalties, collection fees and other amounts due or to become due or otherwise payable in connection with any Account;
(c) all payment intangibles of such Borrower or Guarantor; (d) letters of credit, indemnities, guarantees, security or other deposits and proceeds thereof issued payable to any Borrower or Guarantor or otherwise in favor of or delivered to
any Borrower or Guarantor in connection with any Account; or (e) all other accounts, contract rights, chattel paper, instruments, notes, general intangibles and other forms of obligations owing to any Borrower or Guarantor, whether from the
sale and lease of goods or other property, licensing of any property (including Intellectual Property or other general intangibles), rendition of services or from loans or advances by any Borrower or Guarantor or to or for the benefit of any third
person (including loans or advances to any Affiliates or Subsidiaries of any Borrower or Guarantor) or otherwise associated with any Accounts, Inventory or general intangibles of any Borrower or Guarantor (including, without limitation, choses in
action, causes of action, tax refunds, tax refund claims, any funds which may become payable to any Borrower or Guarantor in connection with the termination of any Plan or other employee benefit plan and any other amounts payable to any Borrower or
Guarantor from any Plan or other employee benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds thereof, casualty or any similar types of insurance and any proceeds
thereof and proceeds of insurance covering the lives of employees on which any Borrower or Guarantor is a beneficiary and all right, title and interest in and to joint ventures, partnerships and other Persons). 

1.127 “Records” shall mean, as to each Borrower and Guarantor, all of such Borrower’s and Guarantor’s present and
future books of account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence, statements, correspondence, memoranda, credit files and other data relating to the Collateral or any
account debtor, together with the tapes, disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the foregoing are stored (including any rights of any Borrower or Guarantor with respect to
the foregoing maintained with or by any other person). 
 1.128 “Register” shall have the meaning set forth in
Section 13.7 hereof. 
 1.129 “Required Lenders” shall mean, at any time, those Lenders whose
Pro Rata Shares aggregate sixty-six and two-thirds (66 2/3%) percent or more of the aggregate of the Commitments of all Lenders, or if the Commitments shall have been terminated, Lenders to whom at least sixty-six and two-thirds (66 2/3%) percent of the then outstanding Obligations are owing.

 1.130 “Reserves” shall mean, as of any date of determination, such amounts as Agent may from time to
time establish and revise in good faith reducing the amount of Loans and Letters of Credit that would otherwise be available to Borrowers under the lending formula(s) provided for herein: (a) to reflect events, conditions, contingencies or
risks which, as determined by Agent in good faith, adversely affect, or would have a reasonable likelihood of adversely affecting, either (i) the Collateral or any other property which is security for the Obligations, its value or the amount
that might be received by Agent from the sale or other disposition or realization upon such Collateral, or (ii) the security interests and other rights of Agent or any Lender in the Collateral (including the enforceability, perfection and
priority thereof) or (b) to reflect Agent’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrowers or Obligors to 

  
 26 

 
Agent is or may have been incomplete, inaccurate or misleading in any material respect or (c) to reflect outstanding Letter of Credit Obligations as provided in Section 2.2 hereof or
(d) in respect of any state of facts which Agent determines in good faith constitutes a Default or an Event of Default. Without limiting the generality of the foregoing, Reserves may, at Agent’s option, be established to reflect:
(i) dilution with respect to the Accounts (based on the ratio of the aggregate amount of non-cash reductions in Accounts for any period to the aggregate dollar amount of the sales of Borrowers for such period) as calculated by Agent for any
period is or is reasonably anticipated to be greater than five (5%) percent; (ii) returns, discounts, claims, credits and allowances of any nature that are not paid pursuant to the reduction of Accounts; (iii) sales, excise or similar
taxes included in the amount of any Accounts reported to Agent; (iv) a change in the turnover, age or mix of the categories of Inventory that adversely affects the aggregate value of all Inventory; (v) amounts due or to become due to
owners and lessors of premises where any Collateral is located, other than for those locations where Agent has received a Collateral Access Agreement that Agent has accepted in writing; (vi) amounts due or to become due to owners and licensors
of trademarks and other Intellectual Property used by any Borrower and (vii) obligations, liabilities or indebtedness (contingent or otherwise) of Borrowers or Guarantors to Agent or any Bank Product Provider arising under or in connection with
any Bank Products (including, without limitation, under any purchasing card arrangements in an amount equal to the credit limit under such purchasing card arrangements) or as such Affiliate or Person may otherwise require in connection therewith to
the extent that such obligations, liabilities or indebtedness constitute Obligations as such term is defined herein or otherwise receive the benefit of the security interest of Agent in any Collateral. The amount of any Reserve established by Agent
shall have a reasonable relationship to the event, condition or other matter which is the basis for such reserve as determined by Agent in good faith and to the extent that such Reserve is in respect of amounts that may be payable to third parties
Agent may, at its option, deduct such Reserve from the Maximum Credit, at any time that such limit is less than the amount of the Borrowing Base. 
 1.131 “Revolving Loans” shall mean the loans now or hereafter made by or on behalf of any Lender or by Agent for the account of any Lender on a revolving basis pursuant to the Credit Facility
(involving advances, repayments and readvances) as set forth in Section 2.1 hereof. 
 1.132 “Sanctioned Entity”
shall mean (a) an agency of the government of, (b) an organization directly or indirectly controlled by, or (c) a person resident in, a country that is subject to a sanctions program identified on the list maintained and published by
OFAC and available at http://www.treas.gov/offices/enforcement/ofac/programs, or as otherwise published from time to time as such program may be applicable to such agency, organization or person. 

1.133 “Sanctioned Person” shall mean a person named on the list of Specially Designated Nationals or Blocked Persons maintained
by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise published from time to time. 

1.134 “Secured Parties” shall mean, collectively, (a) Agent, (b) Issuing Bank, (c) Lenders, and (d) Bank
Product Providers (to the extent approved by Agent). 
 1.135 “Series D Preferred Stock Conversion” shall mean:
(a) the automatic conversion of all of Lighting Science’s shares of Series D Non-Convertible Preferred Stock, par value $0.001 per 

  
 27 

 
share, into shares of Lighting Science’s common stock, par value $0.001 per share, and (b) the corresponding amendments to the terms of Series D Warrants issued in conjunction with the
shares of Series D Non-Convertible Preferred Stock in accordance with (i) the Certificate of Amendment to the Certificate of Incorporation of Lighting Science to be filed with the Secretary of State of the State of Delaware and (ii) an
amendment to the Series D Warrants issued in conjunction with the shares of Series D Non-Convertible Preferred Stock, and as contemplated by the SPEARA as in effect on the date hereof. 

1.136 “Series D Warrants” shall have the meaning set forth in the SPEARA as in effect on the date hereof. 

1.137 “Solvent” shall mean, at any time with respect to any Person, that at such time such Person (a) is able to pay its
debts as they mature and has (and has a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its business consistent with its practices as of the date hereof, and (b) the
assets and properties of such Person at a fair valuation (and including as assets for this purpose at a fair valuation all rights of subrogation, contribution or indemnification arising pursuant to any guarantees given by such Person) are greater
than the Indebtedness of such Person, and including subordinated and contingent liabilities computed at the amount which, such person has a reasonable basis to believe, represents an amount which can reasonably be expected to become an actual or
matured liability (and including as to contingent liabilities arising pursuant to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability). 

1.138 “SPEARA” shall mean that certain Stock Purchase, Exchange and Recapitalization Agreement, dated as of September 30,
2010, among Lighting Science, Pegasus Partners IV, L.P., LSGC Holdings LLC and LED Holdings, LLC. 
 1.139 “Special Agent
Advances” shall have the meaning set forth in Section 12.11 hereof. 
 1.140 “Specified Issuances” shall
mean the issuance or sale by any Borrower or Guarantor of any Equity Interests of such Borrower or Guarantor in connection with the following: 
 (a) upon conversion or exercise of any currently outstanding Equity Interests in accordance with the terms thereof as in effect on the date hereof; 

(b) in connection with a strategic commercial agreement or commercial relationship as determined by any Borrower or Guarantor in the
ordinary course of business; provided, that, if the issuance or sale is of material Equity Interests of any Borrower or Guarantor, such issuance or sale shall be subject to the terms of Section 9.7(b)(iii) hereof; 

(c) the Series D Preferred Stock Conversion; 
 (d) upon conversion or exercise of any Equity Interests issued or sold pursuant to a Specified Issuance set forth in paragraphs (a) through (c) above; and 

(e) upon conversion or exercise of any Equity Interests issued or sold pursuant to an issuance or sale of Equity Interests otherwise
permitted pursuant to the terms of this Agreement. 

  
 28 

 1.141 “Sponsor” shall mean Pegasus Capital Advisors, L.P., a limited partnership
organized under the laws of the State of Delaware, and its Affiliates (other than Borrowers and Guarantors). 
 1.142
“Sponsor Management Agreement” shall mean the Support Services Agreement, dated as of June 23, 2010, by and between Lighting Science and Sponsor, as amended, renewed, extended, supplemented or otherwise modified from time to time in
accordance with the terms thereof. 
 1.143 “Subsidiary” or “subsidiary” shall mean, with respect to any
Person, any corporation, limited liability company, limited liability partnership or other limited or general partnership, trust, association or other business entity of which an aggregate of at least a majority of the outstanding Equity Interests
or other interests entitled to vote in the election of the board of directors of such corporation (irrespective of whether, at the time, Equity Interests of any other class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency), managers, trustees or other controlling persons, or an equivalent controlling interest therein, of such Person is, at the time, directly or indirectly, owned by such Person and/or one or more subsidiaries
of such Person. 
 1.144 “Testing Period” shall have the meaning set forth in Section 9.17(c). 

1.145 “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York, and any successor statute, as in
effect from time to time (except, that, terms used herein which are defined in the Uniform Commercial Code as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement
or amendment of such statute except as Agent may otherwise determine). 
 1.146 “ULF Amount” shall mean (a) from
the date hereof through and including the date that the Borrowing Base (exclusive of Qualified Cash) exceeds $7,500,000, $10,000,000, and (b) at all times thereafter, the Maximum Credit. 

1.147 “Value” shall mean, as determined by Agent in good faith, with respect to Inventory, the lower of (a) cost computed
on a first-in first-out basis in accordance with GAAP or (b) market value; provided, that, for purposes of the calculation of the Borrowing Base, (i) the Value of the Inventory shall not include: (A) the portion of the
value of Inventory equal to the profit earned by any Affiliate on the sale thereof to any Borrower or (B) write-ups or write-downs in value with respect to currency exchange rates and (ii) notwithstanding anything to the contrary contained
herein, the cost of the Inventory shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and accepted by Agent prior to the date hereof, if any. 

1.148 “Voting Stock” shall mean with respect to any Person, (a) one (1) or more classes of Equity Interests of such
Person having general voting powers to elect at least a majority of the board of directors, managers or trustees of such Person, irrespective of whether at the time Equity Interests of any other class or classes have or might have voting power by
reason of the happening of any contingency, and (b) any Equity Interests of such Person convertible or exchangeable without restriction at the option of the holder thereof into Equity Interests of such Person described in clause (a) of
this definition. 

  
 29 

 1.149 “Wells Fargo” shall mean Wells Fargo Bank, National Association, in its
individual capacity, and its successors and assigns. 
 SECTION 2. CREDIT FACILITIES 

2.1 Loans. 
 (a) Subject to and upon the terms and conditions contained herein, each Lender severally (and not jointly) agrees to make its Pro Rata Share of Revolving Loans to each Borrower from time to time in
amounts requested by such Borrower (or Administrative Borrower on behalf of such Borrower) up to the aggregate amount outstanding for all Lenders at any time equal to the lesser of: (i) the Borrowing Base at such time or (ii) the Maximum
Credit at such time. 
 (b) Except in Agent’s discretion, with the consent of all Lenders, or as otherwise provided herein,
(i) the aggregate principal amount of the Loans and the Letter of Credit Obligations outstanding at any time to Borrowers shall not exceed the Maximum Credit, (ii) the aggregate principal amount of the Revolving Loans and Letter of Credit
Obligations outstanding at any time to Borrowers shall not exceed the Borrowing Base, and (iii) the aggregate principal amount of the Revolving Loans outstanding at any time to Borrowers based on Eligible Inventory shall not exceed the
Inventory Loan Limit. 
 (c) In the event that (i) the aggregate principal amount of the Loans and the Letter of Credit
Obligations outstanding at any time to Borrowers exceed the Maximum Credit, or (ii) except as otherwise provided herein, the aggregate principal amount of the Revolving Loans and Letter of Credit Obligations outstanding at any time to Borrowers
exceed the Borrowing Base, or (iii) the aggregate principal amount of Revolving Loans and Letter of Credit Obligations outstanding at any time to Borrowers based on Eligible Inventory exceed the Inventory Loan Limit, such event shall not limit,
waive or otherwise affect any rights of Agent or Lenders in such circumstances or on any future occasions and Borrowers shall, upon demand by Agent, which may be made at any time or from time to time, immediately repay to Agent the entire amount of
any such excess(es) for which payment is demanded. 
 2.2 Letters of Credit. 

(a) Subject to and upon the terms and conditions contained herein and in the Letter of Credit Documents, at the request of a Borrower (or
Administrative Borrower on behalf of such Borrower), Agent agrees to cause Issuing Bank to issue, and Issuing Bank agrees to issue, for the account of such Borrower one or more Letters of Credit, for the ratable risk of each Lender according to its
Pro Rata Share, containing terms and conditions acceptable to Agent and Issuing Bank. 
 (b) The Borrower requesting such Letter
of Credit (or Administrative Borrower on behalf of such Borrower) shall give Agent and Issuing Bank three (3) Business Days’ prior written notice of such Borrower’s request for the issuance of a Letter of Credit. Such notice shall be
irrevocable and shall specify the original face amount of the Letter of Credit requested, the effective date (which date shall be a Business Day and in no event shall be a date less than ten (10) days prior to the end of the then current term
of this Agreement) of issuance of such requested Letter 

  
 30 

 
of Credit, whether such Letter of Credit may be drawn in a single or in partial draws, the date on which such requested Letter of Credit is to expire (which date shall be a Business Day and shall
not be more than one (1) year from the date of issuance; provided, that, such Letters of Credit may provide for their automatic renewal in one (1) year intervals), the purpose for which such Letter of Credit is to be issued,
and the beneficiary of the requested Letter of Credit. The Borrower requesting the Letter of Credit (or Administrative Borrower on behalf of such Borrower) shall attach to such notice the proposed terms of the Letter of Credit. The renewal or
extension of any Letter of Credit shall, for purposes hereof be treated in all respects the same as the issuance of a new Letter of Credit hereunder. 
 (c) In addition to being subject to the satisfaction of the applicable conditions precedent contained in Section 4 hereof and the other terms and conditions contained herein, no Letter of Credit
shall be available unless each of the following conditions precedent have been satisfied in a manner satisfactory to Agent: (i) the Borrower requesting such Letter of Credit (or Administrative Borrower on behalf of such Borrower) shall have
delivered to Issuing Bank at such times and in such manner as Issuing Bank may require, an application, in form and substance reasonably satisfactory to Issuing Bank and Agent, for the issuance of the Letter of Credit and such other Letter of Credit
Documents as may be required pursuant to the terms thereof, and the form and terms of the proposed Letter of Credit shall be satisfactory to Agent and Issuing Bank, (ii) as of the date of issuance, no order of any court, arbitrator or other
Governmental Authority shall purport by its terms to enjoin or restrain money center banks generally from issuing letters of credit of the type and in the amount of the proposed Letter of Credit, and no law, rule or regulation applicable to money
center banks generally and no request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over money center banks generally shall prohibit, or request that Issuing Bank refrain from, the issuance
of letters of credit generally or the issuance of such Letter of Credit, (iii) after giving effect to the issuance of such Letter of Credit, the Letter of Credit Obligations shall not exceed the Letter of Credit Limit, and (iv) Excess
Availability, prior to giving effect to any Reserves with respect to such Letter of Credit, on the date of the proposed issuance of any Letter of Credit shall be equal to or greater than: (A) if the proposed Letter of Credit is for the purpose
of purchasing Eligible Inventory and the documents of title with respect thereto are consigned to Issuing Bank, the sum of (1) the percentage equal to one hundred (100%) percent minus the then applicable percentage with respect to Eligible
Inventory set forth in the definition of the term Borrowing Base multiplied by the Value of such Eligible Inventory, plus (2) freight, taxes, duty and other amounts which Agent estimates must be paid in connection with such Inventory upon
arrival and for delivery to one of Borrowers’ locations for Eligible Inventory within the United States of America and (B) if the proposed Letter of Credit is for any other purpose or the documents of title are not consigned to Issuing
Bank in connection with a Letter of Credit for the purpose of purchasing Inventory, an amount equal to one hundred (100%) percent of the Letter of Credit Obligations with respect thereto. Effective on the issuance of each Letter of Credit, a
Reserve shall be established in the applicable amount set forth in Section 2.2(c)(iv)(A) or Section 2.2(c)(iv)(B). Notwithstanding anything to the contrary contained herein, Issuing Bank shall not be obligated to issue a Letter of Credit
in respect of the obligations of a Borrower or Guarantor arising in connection with a lease of Real Property or an employment contract. 
 (d) Except in Agent’s discretion, with the consent of all Lenders, the amount of all outstanding Letter of Credit Obligations shall not at any time exceed the Letter of Credit Limit. 

(e) Each Borrower shall reimburse immediately Issuing Bank for any draw under any Letter of Credit issued for the account of such
Borrower and pay Issuing Bank the amount of all 

  
 31 

 
other charges and fees payable to Issuing Bank in connection with any Letter of Credit issued for the account of such Borrower immediately when due, irrespective of any claim, setoff, defense or
other right which such Borrower may have at any time against Issuing Bank or any other Person. Each drawing under any Letter of Credit or other amount payable in connection therewith when due shall constitute a request by the Borrower for whose
account such Letter of Credit was issued to Agent for a Base Rate Loan in the amount of such drawing or other amount then due, and shall be made by Agent on behalf of Lenders as a Revolving Loan (or Special Agent Advance, as the case may be). The
date of such Loan shall be the date of the drawing or as to other amounts, the due date therefor. Any payments made by or on behalf of Agent or any Lender to Issuing Bank and/or related parties in connection with any Letter of Credit shall
constitute additional Revolving Loans to such Borrower pursuant to this Section 2 (or Special Agent Advances as the case may be). 
 (f) Borrowers and Guarantors shall indemnify and hold Agent and Lenders harmless from and against any and all losses, claims, damages, liabilities, costs and expenses which Agent or any Lender may suffer
or incur in connection with any Letter of Credit and any documents, drafts or acceptances relating thereto, including any losses, claims, damages, liabilities, costs and expenses due to any action taken by Issuing Bank or correspondent with respect
to any Letter of Credit, except for such losses, claims, damages, liabilities, costs or expenses that are a direct result of the gross negligence or willful misconduct of Agent or any Lender as determined pursuant to a final non-appealable order of
a court of competent jurisdiction. Each Borrower and Guarantor assumes all risks with respect to the acts or omissions of the drawer under or beneficiary of any Letter of Credit and for such purposes the drawer or beneficiary shall be deemed such
Borrower’s agent. Each Borrower and Guarantor assumes all risks for, and agrees to pay, all foreign, Federal, State and local taxes, duties and levies relating to any goods subject to any Letter of Credit or any documents, drafts or acceptances
thereunder. Each Borrower and Guarantor hereby releases and holds Agent and Lenders harmless from and against any acts, waivers, errors, delays or omissions with respect to or relating to any Letter of Credit, except for the gross negligence or
willful misconduct of Agent or any Lender as determined pursuant to a final, non-appealable order of a court of competent jurisdiction. The provisions of this Section 2.2(f) shall survive the payment of Obligations and the termination of this
Agreement. 
 (g) In connection with Inventory purchased pursuant to any Letter of Credit, Borrowers and Guarantors shall, at
Agent’s request, instruct all suppliers, carriers, forwarders, customs brokers, warehouses or others receiving or holding cash, checks, Inventory, documents or instruments in which Agent holds a security interest that upon Agent’s request,
such items are to be delivered to Agent and/or subject to Agent’s order, and if they shall come into such Borrower’s or Guarantor’s possession, to deliver them, upon Agent’s request, to Agent in their original form. Except as
otherwise provided herein, Agent shall not exercise such right to request such items so long as no Default or Event of Default shall exist or have occurred and be continuing. Except as Agent may otherwise specify, Borrowers and Guarantors shall
designate Issuing Bank as the consignee on all bills of lading and other negotiable and non-negotiable documents. 
 (h) Each
Borrower and Guarantor hereby irrevocably authorizes and directs Issuing Bank to name such Borrower or Guarantor as the account party therein and to deliver to Agent all instruments, documents and other writings and property received by Issuing Bank
pursuant to the Letter of Credit and to accept and rely upon Agent’s instructions and agreements with respect to all matters arising in connection with the Letter of Credit or the Letter of Credit Documents with respect

  
 32 

 
thereto. Nothing contained herein shall be deemed or construed to grant any Borrower or Guarantor any right or authority to pledge the credit of Agent or any Lender in any manner. Borrowers and
Guarantors shall be bound by any reasonable interpretation made in good faith by Agent, or Issuing Bank under or in connection with any Letter of Credit Obligation or any documents, drafts or acceptances thereunder, notwithstanding that such
interpretation may be inconsistent with any instructions of any Borrower or Guarantor. 
 (i) Immediately upon the issuance or
amendment of any Letter of Credit, each Lender shall be deemed to have irrevocably and unconditionally purchased and received, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Pro Rata Share
of the liability with respect to such Letter of Credit and the obligations of Borrowers with respect thereto (including all Letter of Credit Obligations with respect thereto). Each Lender shall absolutely, unconditionally and irrevocably assume, as
primary obligor and not as surety, and be obligated to pay to Issuing Bank therefor and discharge when due, its Pro Rata Share of all of such obligations arising under such Letter of Credit. Without limiting the scope and nature of each
Lender’s participation in any Letter of Credit, to the extent that Issuing Bank has not been reimbursed or otherwise paid as required hereunder or under any such Letter of Credit, each such Lender shall pay to Issuing Bank its Pro Rata Share of
such unreimbursed drawing or other amounts then due to Issuing Bank in connection therewith. 
 (j) The obligations of Borrowers
to pay each Letter of Credit Obligations and the obligations of Lenders to make payments to Agent for the account of Issuing Bank with respect to Letters of Credit shall be absolute, unconditional and irrevocable and shall be performed strictly in
accordance with the terms of this Agreement under any and all circumstances, whatsoever, notwithstanding the occurrence or continuance of any Default, Event of Default, the failure to satisfy any other condition set forth in Section 4 or any
other event or circumstance. If such amount is not made available by a Lender when due, Agent shall be entitled to recover such amount on demand from such Lender with interest thereon, for each day from the date such amount was due until the date
such amount is paid to Agent at the interest rate then payable by any Borrower in respect of Loans that are Base Rate Loans. Any such reimbursement shall not relieve or otherwise impair the obligation of Borrowers to reimburse Issuing Bank under any
Letter of Credit or make any other payment in connection therewith. 
 2.3 [Intentionally Omitted] 

2.4 Commitments. The aggregate amount of each Lender’s Pro Rata Share of the Loans and Letter of Credit Obligations shall not
exceed the amount of such Lender’s Commitment, as the same may from time to time be amended in accordance with the provisions hereof. 
 2.5 Joint and Several Liability. Each Borrower shall be jointly and severally liable for all Loans, Letter of Credit Obligations and other Obligations of Borrowers. Each Borrower shall have a right
of contribution against the other Borrowers to the extent payments made by such Borrower exceed the amount of Loans, Letter of Credit Obligations and related Obligations directly obtained by such Borrower. 

  
 33 

 SECTION 3. INTEREST AND FEES 

3.1 Interest. 
 (a) Borrowers shall pay to Agent, for the benefit of Lenders, interest on the outstanding principal amount of the Loans at the Interest Rate. All interest accruing hereunder on and after the date of any
Event of Default or termination hereof shall be payable on demand. 
 (b) Each Borrower (or Administrative Borrower on behalf of
such Borrower) may from time to time request LIBOR Rate Loans or Base Rate Loans, or may request that Base Rate Loans be converted to LIBOR Rate Loans or that LIBOR Rate Loans be converted to Base Rate Loans. Any request from a Borrower (or
Administrative Borrower on behalf of such Borrower) shall specify the amount of the LIBOR Rate Loans or Base Rate Loans or the amount of the Base Rate Loans to be converted to LIBOR Rate Loans or the amount of the LIBOR Rate Loans to be converted to
Base Rate Loans and, with respect to any request from a Borrower (or Administrative Borrower on behalf of such Borrower) to convert a Base Rate Loan or a LIBOR Rate Loan, as the case may be, such request shall be effective three (3) Business
Day after receipt by Agent of such a request. Any LIBOR Rate Loans shall, at Agent’s option, upon notice by Agent to Administrative Borrower, be subsequently converted to Base Rate Loans upon the occurrence of an Event of Default or in the
event that this Agreement shall terminate or not be renewed. 
 (c) Interest shall be payable by Borrowers to Agent, for the
account of Agent and Lenders as applicable, monthly in arrears not later than the first day of each calendar month and shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed. The interest rate on
non-contingent Obligations (other than LIBOR Rate Loans) shall increase or decrease by an amount equal to each increase or decrease in the Base Rate effective on the date of any change in such Base Rate. In no event shall charges constituting
interest payable by Borrowers to Agent and Lenders exceed the maximum amount or the rate permitted under any applicable law or regulation, and if any such part or provision of this Agreement is in contravention of any such law or regulation, such
part or provision shall be deemed amended to conform thereto. 
 3.2 Fees. 

(a) Borrowers shall pay to Agent, for the account of Lenders, monthly an unused line fee at a rate equal to the Applicable ULF Rate (on a
per annum basis) calculated upon the amount by which the ULF Amount exceeds the average daily principal balance of the outstanding Revolving Loans and Letters of Credit during the immediately preceding month (or part thereof) while this Agreement is
in effect and for so long thereafter as any of the Obligations are outstanding, which fee shall be payable on the first day of each month in arrears. 
 (b) Subject to Section 3.2(c) below, Borrowers shall pay to Agent, for the account of Lenders, a fee at a rate equal to three and one-half (3.50%) percent per annum on the average daily maximum
amount available to be drawn under all of Letters of Credit issued for the account or benefit of either of them for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding month, computed for each
day from the date of issuance to the date of expiration. 

  
 34 

 (c) Notwithstanding anything to the contrary in Section 3.2(b) above, Borrowers shall
pay, at Agent’s option, without notice, such fee at a rate three (3%) percent greater than the otherwise applicable rate on such average daily maximum amount for: (i) the period from and after the date of termination or non-renewal
hereof until Lenders have received full and final payment of all Obligations (notwithstanding entry of a judgment against any Borrower or Guarantor) and (ii) the period from and after the date of the occurrence of an Event of Default for so
long as such Event of Default is continuing as determined by Agent. Such letter of credit fees shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed and the obligation of Borrowers to pay such fee
shall survive the termination or non-renewal of this Agreement. In addition to the letter of credit fees provided above, Borrowers shall pay to Issuing Bank for its own account (without sharing with Lenders), (A) the letter of credit fronting
and negotiation fees agreed to by Borrowers and Issuing Bank from time to time and (B) the customary charges from time to time of Issuing Bank with respect to the issuance, amendment, transfer, administration, cancellation and conversion of,
and drawings under, such Letters of Credit. 
 (d) Borrowers shall pay to Agent the other fees and amounts set forth in the Fee
Letter in the amounts and at the times specified therein. To the extent payment in full of the applicable fee is received by Agent from Borrowers on or about the date hereof, Agent shall pay to each Lender its share of such fees in accordance with
the terms of the arrangements of Agent with such Lender. 
 3.3 Changes in Laws and Increased Costs of Loans. 

(a) If after the date hereof, either (i) any change in, or in the interpretation of, any law or regulation is introduced, including,
without limitation, with respect to reserve requirements, applicable to any Lender or any banking or financial institution from whom any Lender borrows funds or obtains credit (a “Funding Bank”), or (ii) a Funding Bank or any Lender
complies with any future guideline or request from any central bank or other Governmental Authority or (iii) a Funding Bank, any Lender or Issuing Bank determines that the adoption of any applicable law, rule or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof has or would have the effect
described below, or a Funding Bank, any Lender or Issuing Bank complies with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, and in the case of
any event set forth in this clause (iii), such adoption, change or compliance has or would have the direct or indirect effect of reducing the rate of return on any Lender’s or Issuing Bank’s capital as a consequence of its obligations
hereunder to a level below that which such Lender or Issuing Bank could have achieved but for such adoption, change or compliance (taking into consideration the Funding Bank’s or Lender’s or Issuing Bank’s policies with respect to
capital adequacy) by an amount deemed by such Lender or Issuing Bank to be material, and the result of any of the foregoing events described in clauses (i), (ii) or (iii) is or results in an increase in the cost to any Lender or Issuing
Bank of funding or maintaining the Loans, the Letters of Credit or its Commitment, then Borrowers and Guarantors shall from time to time upon demand by Agent pay to Agent additional amounts sufficient to indemnify such Lender or Issuing Bank, as the
case may be, against such increased cost on an after-tax basis (after taking into account applicable deductions and credits in respect of the amount indemnified). A certificate as to the amount of such increased cost shall be submitted to
Administrative Borrower by Agent or the applicable Lender and shall be conclusive, absent manifest error. 

  
 35 

 (b) Notwithstanding any other provision herein, if the adoption of or any change in any law,
treaty, rule or regulation or final, non-appealable determination of an arbitrator or a court or other Governmental Authority or in the interpretation or application thereof occurring after the date hereof shall make it unlawful for Agent or any
Lender to make or maintain LIBOR Rate Loans as contemplated by this Agreement, (i) Agent or such Lender shall promptly give written notice of such circumstances to Administrative Borrower (which notice shall be withdrawn whenever such
circumstances no longer exist), and (ii) the commitment of such Lender hereunder to make LIBOR Rate Loans, continue LIBOR Rate Loans as such and convert Base Rate Loans to LIBOR Rate Loans shall forthwith be canceled and, until such time as it
shall no longer be unlawful for such Lender to make or maintain LIBOR Rate Loans, such Lender shall then have a commitment only to make a Base Rate Loan when a LIBOR Rate Loan is requested. 
 SECTION 4. CONDITIONS PRECEDENT 
 4.1 Conditions Precedent to
Initial Loans and Letters of Credit. The obligation of Lenders to make the initial Loans or of Issuing Bank to issue the initial Letters of Credit hereunder is subject to the satisfaction of, or waiver of, immediately prior to or concurrently
with the making of such Loan or the issuance of such Letter of Credit of each of the following conditions precedent: 
 (a)
Agent shall have received, in form and substance reasonably satisfactory to Agent, all releases, terminations and such other documents as Agent may request to evidence and effectuate the termination of any existing financing arrangements with
Borrowers and Guarantors and the termination and release by it or them, as the case may be, of any interest in and to any assets and properties of each Borrower and Guarantor, duly authorized, executed and delivered by it or each of them, including,
but not limited to, (i) UCC termination statements for all UCC financing statements previously filed by it or any of them or their predecessors, as secured party and any Borrower or Guarantor, as debtor; and (ii) satisfactions and
discharges of any mortgages, deeds of trust or deeds to secure debt by any Borrower or Guarantor in favor of it or any of them, in form acceptable for recording with the appropriate Governmental Authority; 

(b) all requisite corporate or limited liability company action and proceedings (as applicable) in connection with this Agreement and the
other Financing Agreements shall be satisfactory in form and substance to Agent, and Agent shall have received all information and copies of all documents, including records of requisite corporate or limited liability company action and proceedings
(as applicable) which Agent may have requested in connection therewith, such documents where requested by Agent or its counsel to be certified by appropriate corporate or limited liability company officers (as applicable )or Governmental Authority
(and including a copy of the certificate of incorporation, articles of association, certificate of formation, limited liability agreement, limited partnership agreement or other organizational documents of each Borrower and Guarantor certified by
the Secretary of State (or equivalent Governmental Authority) which shall set forth the same complete corporate, limited liability company or partnership name of such Borrower or Guarantor as is set forth herein and such document as shall set forth
the organizational identification number of each Borrower or Guarantor, if one is issued in its jurisdiction of incorporation or formation, as applicable); 
 (c) except as shall have been disclosed to Agent in writing prior to the date of this Agreement, no Material Adverse Effect shall have occurred in the assets, business or prospects of

  
 36 

 
Borrowers since the date of Agent’s latest field examination (not including for this purpose the field review referred to in clause (d) below) and no change or event shall have occurred
which would impair the ability of any Borrower or Guarantor to perform its obligations hereunder or under any of the other Financing Agreements to which it is a party or of Agent or any Lender to enforce the Obligations or realize upon the
Collateral; 
 (d) Agent shall have completed a field review of the Records and such other information with respect to the
Collateral as Agent may require to determine the amount of Loans available to Borrowers (including, without limitation, current perpetual inventory records and/or roll-forwards of Accounts through October 31, 2010 and test counts of the
Inventory in a manner satisfactory to Agent, together with such supporting documentation as may be necessary or appropriate, and other documents and information that will enable Agent to accurately identify and verify the Collateral), the results of
which in each case shall be satisfactory to Agent, not more than three (3) Business Days prior to the date hereof or such earlier date as Agent may agree; 
 (e) Agent shall have received, in form and substance satisfactory to Agent, the balance sheet of Borrowers as of the period ended September 30, 2010; 

(f) Agent shall have received, in form and substance reasonably satisfactory to Agent, all consents, waivers, acknowledgments and other
agreements from third persons which Agent may deem necessary or desirable in order to permit, protect and perfect its security interests in and liens upon the Collateral or to effectuate the provisions or purposes of this Agreement and the other
Financing Agreements, including, without limitation, Collateral Access Agreements; 
 (g) Closing Excess Availability as
determined by Agent, as of the date hereof, shall be not less than $10,000,000 after giving effect to the initial Loans made or to be made and Letters of Credit issued or to be issued in connection with the initial transactions hereunder;

 (h) Agent shall have received a Borrowing Base Certificate setting forth the Borrowing Base as at the date set forth therein,
which shall be completed in a manner reasonably satisfactory to Agent and duly authorized, executed and delivered by Borrowers, Guarantors and their respective Subsidiaries; 
 (i) Borrowers and Guarantors shall have (i) established deposit accounts and cash management arrangements with Wells Fargo in form and substance satisfactory to Agent as required by Section 6
hereof and Agent shall have received, in form and substance reasonably satisfactory to Agent, Deposit Account Control Agreements by and among Agent, each Borrower and Guarantor, as the case may be, and Wells Fargo, with respect to each Blocked
Account, and (ii) made arrangements for the termination of their existing cash management arrangements at Bank of Texas within sixty (60) days from the date hereof; except, that, such existing cash management arrangements may
remain in effect from the date hereof up to the date that is sixty (60) days from the date hereof with respect to any deposit accounts maintained at Bank of Texas so long as Agent shall have received, in form and substance reasonably
satisfactory to Agent, a Deposit Account Control Agreement by and among Agent, each Borrower and Guarantor, as the case may be, and Bank of Texas, duly authorized, executed and delivered by Agent, such Borrower or Guarantor, as the case may be, and
Bank of Texas; 

  
 37 

 (j) Agent shall have received evidence, in form and substance reasonably satisfactory to
Agent, that Agent has a valid perfected first priority security interest in all of the Collateral; 
 (k) Agent shall have
received and reviewed lien and judgment search results for the jurisdiction of organization of each Borrower and Guarantor, the jurisdiction of the chief executive office of each Borrower and Guarantor and all jurisdictions in which assets of
Borrowers and Guarantors are located, which search results shall be in form and substance reasonably satisfactory to Agent; 

(l) Agent shall have received originals of the shares of the stock certificates representing all of the issued and outstanding Equity
Interests of each Borrower and Guarantor, and owned by any Borrower or Guarantor, in each case together with stock or limited liability company powers (as applicable) duly executed in blank with respect thereto; 

(m) Agent shall have received evidence of insurance and loss payee endorsements required hereunder and under the other Financing
Agreements, in form and substance reasonably satisfactory to Agent, and certificates of insurance policies and/or endorsements naming Agent as loss payee; except, that, on or before December 1, 2010, Agent shall have received, in
the form mutually agreed to as of the date hereof between Agent and Administrative Borrower, a copy of the issued and effective lenders’ loss payable endorsement naming Agent as lenders loss payee; 

(n) Agent shall have received, in form and substance reasonably satisfactory to Agent, such opinion letters of counsel to Borrowers and
Guarantors with respect to the Financing Agreements and such other matters as Agent may request; 
 (o) Agent shall have
received evidence, in form and substance reasonably satisfactory to Agent, that Borrowers and Guarantors have received $15,000,000 in the aggregate from one or more cash equity capital contributions made on or prior to the date hereof by Sponsor;

 (p) Agent shall have received, in form and substance reasonably satisfactory to Agent, an executed copy of an original or
executed original counterparts of the Customer 2 Factoring Agent Intercreditor Agreement, duly authorized, executed and delivered by the parties thereto; 
 (q) Agent shall have received, in form and substance reasonably satisfactory to Agent, copies of the Customer 2 Factoring Agent Discount Documents, duly authorized, executed and delivered by the parties
thereto, including, without limitation, any UCC-1 financing statement between Customer 2 Factoring Agent, as secured party, and Lighting Science, as debtor; 
 (r) Agent shall have received, in form and substance satisfactory to Agent, a closing certificate, dated as of the date hereof, from the chief financial offer of Administrative Borrower confirming those
matters set forth therein (the “Closing Officer’s Certificate”); and 
 (s) the other Financing Agreements and
all instruments and documents hereunder and thereunder shall have been duly executed and delivered to Agent, in form and substance reasonably satisfactory to Agent. 
 4.2 Conditions Precedent to All Loans and Letters of Credit. The obligation of Lenders to make the Loans, including the initial Loans, or of Issuing Bank to issue any Letter of Credit,

  
 38 

 
including the initial Letters of Credit, is subject to the further satisfaction of, or waiver of, immediately prior to or concurrently with the making of each such Loan or the issuance of such
Letter of Credit of each of the following conditions precedent: 
 (a) all representations and warranties contained herein and
in the other Financing Agreements shall be true and correct with the same effect as though such representations and warranties had been made on and as of the date of the making of each such Loan or providing each such Letter of Credit and after
giving effect thereto, except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date);

 (b) no law, regulation, order, judgment or decree of any Governmental Authority shall exist, and no action, suit,
investigation, litigation or proceeding shall be pending or threatened in any court or before any arbitrator or Governmental Authority, which (i) purports to enjoin, prohibit, restrain or otherwise affect (A) the making of the Loans or
providing the Letters of Credit, or (B) the consummation of the transactions contemplated pursuant to the terms hereof or the other Financing Agreements or (ii) has or could reasonably be expected to have a Material Adverse Effect; and

 (c) no Default or Event of Default shall exist or have occurred and be continuing on and as of the date of the making of such
Loan or providing each such Letter of Credit and after giving effect thereto. 
 SECTION 5. GRANT AND PERFECTION OF SECURITY INTEREST

 5.1 Grant of Security Interest. To secure payment and performance of all Obligations, each Borrower and Guarantor
hereby grants to Agent, for itself and the benefit of Secured Parties, a continuing security interest in, a lien upon, and a right of set off against, and hereby assigns to Agent, for itself and the benefit of Secured Parties, as security, all
personal and real property and fixtures, and interests in property and fixtures, of each Borrower and Guarantor, whether now owned or hereafter acquired or existing, and wherever located (together with all other collateral security for the
Obligations at any time granted to or held or acquired by Agent or any Lender, collectively, the “Collateral”), including all of each Borrower’s and Guarantor’s right, title and interest in and to the following: 

(a) all Accounts; 
 (b) all general intangibles, including, without limitation, all Intellectual Property; 
 (c) all Inventory; 
 (d) all chattel paper, including, without limitation, all
tangible and electronic chattel paper; 
 (e) all instruments (other than any Borrower’s and Guarantor’s instruments
arising from the sale, lease or other disposition of Equipment, Real Property or any interest therein), including, without limitation, all promissory notes; 
 (f) all documents; 

  
 39 

 (g) all deposit accounts; 

(h) all letters of credit, banker’s acceptances and similar instruments and including all letter-of-credit rights; 

(i) all supporting obligations and all present and future liens, security interests, rights, remedies, title and interest in, to and in
respect of Receivables and other Collateral, including (i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit and credit and other insurance related to the Collateral, (ii) rights of stoppage in
transit, replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lienor or secured party, (iii) goods described in invoices, documents, contracts or instruments with respect to, or otherwise representing or
evidencing, Receivables or other Collateral, including returned, repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other persons securing the obligations of account debtors; 

(j) all (i) investment property (including securities, whether certificated or uncertificated, securities accounts, security
entitlements, commodity contracts or commodity accounts) and (ii) monies, credit balances, deposits and other property of any Borrower or Guarantor now or hereafter held or received by or in transit to Agent, any Lender or its Affiliates or at
any other depository or other institution from or for the account of any Borrower or Guarantor, whether for safekeeping, pledge, custody, transmission, collection or otherwise; 

(k) all commercial tort claims (other than any Borrower’s and Guarantor’s commercial tort claims arising with respect to
Equipment, Real Property or any interest therein), including, without limitation, those identified in the Information Certificate; 
 (l) to the extent not otherwise described above, all Receivables; 
 (m) all
Records; and 
 (n) all products and proceeds of the foregoing, in any form, including insurance proceeds and all claims against
third parties for loss or damage to or destruction of or other involuntary conversion of any kind or nature of any or all of the other Collateral. 
 Notwithstanding anything to the contrary contained in Section 5.1 above, the types or items of Collateral described in such Section shall not include the Excluded Property. 

5.2 Perfection of Security Interests. 
 (a) Each Borrower and Guarantor irrevocably and unconditionally authorizes Agent (or its agent) to file at any time and from time to time such financing statements with respect to the Collateral naming
Agent or its designee as the secured party and such Borrower or Guarantor as debtor, as Agent may require, and including any other information with respect to such Borrower or Guarantor or otherwise required by part 5 of Article 9 of the Uniform
Commercial Code of such jurisdiction as Agent may determine, together with any amendment and continuations with respect thereto, which authorization shall apply to all financing statements filed on, prior to or after the date hereof. Each Borrower
and Guarantor hereby ratifies and approves all financing statements naming Agent or its designee as secured party and such Borrower or Guarantor, as the case may be, as debtor 

  
 40 

 
with respect to the Collateral (and any amendments with respect to such financing statements) filed by or on behalf of Agent prior to the date hereof and ratifies and confirms the authorization
of Agent to file such financing statements (and amendments, if any). Each Borrower and Guarantor hereby authorizes Agent to adopt on behalf of such Borrower and Guarantor any symbol required for authenticating any electronic filing. In the event
that the description of the collateral in any financing statement naming Agent or its designee as the secured party and any Borrower or Guarantor as debtor includes assets and properties of such Borrower or Guarantor that do not at any time
constitute Collateral, whether hereunder, under any of the other Financing Agreements or otherwise, the filing of such financing statement shall nonetheless be deemed authorized by such Borrower or Guarantor to the extent of the Collateral included
in such description and it shall not render the financing statement ineffective as to any of the Collateral or otherwise affect the financing statement as it applies to any of the Collateral. In the event of the foregoing, upon the request of
Administrative Borrower, Agent shall amend the financing statement to delete any assets and properties that do not constitute Collateral. In no event shall any Borrower or Guarantor at any time file, or permit or cause to be filed, any correction
statement or termination statement with respect to any financing statement (or amendment or continuation with respect thereto) naming Agent or its designee as secured party and such Borrower or Guarantor as debtor. 

(b) No Borrower or Guarantor has any chattel paper (whether tangible or electronic) or instruments as of the date hereof, except as set
forth in the Information Certificate. In the event that any Borrower or Guarantor shall be entitled to or shall receive any chattel paper or instrument after the date hereof, Borrowers and Guarantors shall promptly notify Agent thereof in writing.
Promptly upon the receipt thereof by or on behalf of any Borrower or Guarantor (including by any agent or representative), such Borrower or Guarantor shall deliver, or cause to be delivered to Agent, all tangible chattel paper and instruments that
such Borrower or Guarantor has or may at any time acquire, accompanied by such instruments of transfer or assignment duly executed in blank as Agent may from time to time specify, in each case except as Agent may otherwise agree. At Agent’s
option, each Borrower and Guarantor shall, or Agent may at any time on behalf of any Borrower or Guarantor, cause the original of any such instrument or chattel paper to be conspicuously marked in a form and manner acceptable to Agent with the
following legend referring to chattel paper or instruments as applicable: “This [chattel paper][instrument] is subject to the security interest of Wells Fargo Bank, National Association and any sale, transfer, assignment or encumbrance of this
[chattel paper][instrument] violates the rights of such secured party.” 
 (c) In the event that any Borrower or Guarantor
shall at any time hold or acquire an interest in any electronic chattel paper or any “transferable record” (as such term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in
Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), such Borrower or Guarantor shall promptly notify Agent thereof in writing. Promptly upon Agent’s request if an Event of Default has occurred
and is continuing, such Borrower or Guarantor shall take, or cause to be taken, such actions as Agent may request to give Agent control of such electronic chattel paper under Section 9-105 of the UCC and control of such transferable record
under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as in effect in such jurisdiction. 

(d) No Borrower or Guarantor has any deposit accounts as of the date hereof, except as set forth in the Information Certificate.
Borrowers and Guarantors shall not, directly or indirectly, 

  
 41 

 
after the date hereof open, establish or maintain any deposit account unless each of the following conditions is satisfied: (i) Agent shall have received not less than five (5) Business
Days prior written notice of the intention of any Borrower or Guarantor to open or establish such account which notice shall specify in reasonable detail and specificity acceptable to Agent the name of the account, the owner of the account, the name
and address of the bank at which such account is to be opened or established, the individual at such bank with whom such Borrower or Guarantor is dealing and the purpose of the account, (ii) the bank where such account is opened or maintained
shall be acceptable to Agent, and (iii) on or before the opening of such deposit account, such Borrower or Guarantor shall as Agent may specify either (A) deliver to Agent a Deposit Account Control Agreement with respect to such deposit
account duly authorized, executed and delivered by such Borrower or Guarantor and the bank at which such deposit account is opened and maintained or (B) arrange for Agent to become the customer of the bank with respect to the deposit account on
terms and conditions acceptable to Agent. The terms of this subsection (d) shall not apply to any Excluded Accounts. 
 (e)
No Borrower or Guarantor owns or holds, directly or indirectly, beneficially or as record owner or both, any investment property, as of the date hereof, or has any investment account, securities account, commodity account or other similar account
with any bank or other financial institution or other securities intermediary or commodity intermediary as of the date hereof, in each case except as set forth in the Information Certificate. 

(i) In the event that any Borrower or Guarantor shall be entitled to or shall at any time after the date hereof hold or acquire any
certificated securities, such Borrower or Guarantor shall promptly endorse, assign and deliver the same to Agent, accompanied by such instruments of transfer or assignment duly executed in blank as Agent may from time to time specify. If any
securities, now or hereafter acquired by any Borrower or Guarantor are uncertificated and are issued to such Borrower or Guarantor or its nominee directly by the issuer thereof, such Borrower or Guarantor shall immediately notify Agent thereof and
shall cause the issuer to agree to comply with instructions from Agent as to such securities, without further consent of any Borrower or Guarantor or such nominee. 
 (ii) Borrowers and Guarantors shall not, directly or indirectly, after the date hereof open, establish or maintain any investment account, securities account, commodity account or any other similar
account (other than a deposit account) with any securities intermediary or commodity intermediary unless each of the following conditions is satisfied: (A) Agent shall have received not less than five (5) Business Days prior written notice
of the intention of such Borrower or Guarantor to open or establish such account which notice shall specify in reasonable detail and specificity acceptable to Agent the name of the account, the owner of the account, the name and address of the
securities intermediary or commodity intermediary at which such account is to be opened or established, the individual at such intermediary with whom such Borrower or Guarantor is dealing and the purpose of the account, (B) the securities
intermediary or commodity intermediary (as the case may be) where such account is opened or maintained shall be acceptable to Agent, and (C) on or before the opening of such investment account, securities account or other similar account with a
securities intermediary or commodity intermediary, such Borrower or Guarantor shall (1) execute and deliver, and cause to be executed and delivered to Agent, an Investment Property Control Agreement with respect thereto duly authorized,
executed and delivered by such Borrower or Guarantor and such securities intermediary or commodity intermediary or (2) at Agent’s election if 

  
 42 

 
an Event of Default has occurred and is continuing, arrange for Agent to become the entitlement holder with respect to such investment property on terms and conditions reasonably acceptable to
Agent. 
 (f) Borrowers and Guarantors are not the beneficiary or otherwise entitled to any right to payment under any letter of
credit, banker’s acceptance or similar instrument as of the date hereof, except as set forth in the Information Certificate. In the event that any Borrower or Guarantor shall be entitled to or shall receive any right to payment under any letter
of credit, banker’s acceptance or any similar instrument, whether as beneficiary thereof or otherwise after the date hereof, such Borrower or Guarantor shall promptly notify Agent thereof in writing. Such Borrower or Guarantor shall promptly
(i) deliver, or cause to be delivered to Agent, with respect to any such letter of credit, banker’s acceptance or similar instrument, the written agreement of the issuer and any other nominated person obligated to make any payment in
respect thereof (including any confirming or negotiating bank), in form and substance reasonably satisfactory to Agent, consenting to the assignment of the proceeds of the letter of credit to Agent by such Borrower or Guarantor and agreeing to make
all payments thereon directly to Agent or as Agent may otherwise direct or (ii) at Agent’s election if an Event of Default has occurred and is continuing, cause Agent to become, at Borrowers’ expense, the transferee beneficiary of the
letter of credit, banker’s acceptance or similar instrument (as the case may be). 
 (g) Borrowers and Guarantors do not
have any commercial tort claims as of the date hereof, except as set forth in the Information Certificate. In the event that any Borrower or Guarantor shall at any time after the date hereof have any commercial tort claims that would constitute
Collateral in excess of $100,000, such Borrower or Guarantor shall promptly notify Agent thereof in writing, which notice shall (i) set forth in reasonable detail the basis for and nature of such commercial tort claim and (ii) include the
express grant by such Borrower or Guarantor to Agent of a security interest in such commercial tort claim (and the proceeds thereof). In the event that such notice does not include such grant of a security interest, the sending thereof by such
Borrower or Guarantor to Agent shall be deemed to constitute such grant to Agent. Upon the sending of such notice, any commercial tort claim described therein shall constitute part of the Collateral and shall be deemed included therein. Without
limiting the authorization of Agent provided in Section 5.2(a) hereof or otherwise arising by the execution by such Borrower or Guarantor of this Agreement or any of the other Financing Agreements, Agent is hereby irrevocably authorized from
time to time and at any time to file such financing statements naming Agent or its designee as secured party and such Borrower or Guarantor as debtor, or any amendments to any financing statements, covering any such commercial tort claim as
Collateral. In addition, each Borrower and Guarantor shall promptly upon Agent’s request, execute and deliver, or cause to be executed and delivered, to Agent such other agreements, documents and instruments as Agent may require in connection
with such commercial tort claim. 
 (h) Borrowers and Guarantors do not have any goods, documents of title or other Collateral
in the custody, control or possession of a third party as of the date hereof, except as set forth in the Information Certificate and except for goods located in the United States in transit to a location of a Borrower or Guarantor permitted herein
in the ordinary course of business of such Borrower or Guarantor in the possession of the carrier transporting such goods. In the event that any goods, documents of title or other Collateral are at any time after the date hereof in the custody,
control or possession of any other person not referred to in the Information Certificate or such 

  
 43 

 
carriers, Borrowers and Guarantors shall promptly notify Agent thereof in writing. Promptly upon Agent’s request, Borrowers and Guarantors shall deliver to Agent a Collateral Access
Agreement duly authorized, executed and delivered by such person and the Borrower or Guarantor that is the owner of such Collateral. 
 (i) Borrowers and Guarantors shall take any other actions reasonably requested by Agent from time to time to cause the attachment, perfection and first priority of, and the ability of Agent to enforce,
the security interest of Agent in any and all of the Collateral, including, without limitation, (i) executing, delivering and, where appropriate, filing financing statements and amendments relating thereto under the UCC or other applicable law,
to the extent, if any, that any Borrower’s or Guarantor’s signature thereon is required therefor, (ii) causing Agent’s name to be noted as secured party on any certificate of title for a titled good if such notation is a
condition to attachment, perfection or priority of, or ability of Agent to enforce, the security interest of Agent in such Collateral, (iii) complying with any provision of any statute, regulation or treaty of the United States as to any
Collateral if compliance with such provision is a condition to attachment, perfection or priority of, or ability of Agent to enforce, the security interest of Agent in such Collateral, (iv) obtaining the consents and approvals of any
Governmental Authority or third party, including, without limitation, any consent of any licensor, lessor or other person obligated on Collateral, and taking all actions required by any earlier versions of the UCC or by other law, as applicable in
any relevant jurisdiction. 
 SECTION 6. COLLECTION AND ADMINISTRATION 

6.1 Borrowers’ Loan Accounts. Agent shall maintain one or more loan account(s) on its books in which shall be recorded
(a) all Loans, Letters of Credit and other Obligations and the Collateral, (b) all payments made by or on behalf of any Borrower or Guarantor and (c) all other appropriate debits and credits as provided in this Agreement, including
fees, charges, costs, expenses and interest. All entries in the loan account(s) shall be made in accordance with Agent’s customary practices as in effect from time to time. Borrowers hereby acknowledges that all applicable Florida documentary
stamp taxes payable in connection with the transactions hereunder shall be at Borrowers’ expense and Borrowers hereby authorize Agent to charge any Borrower’s loan account with Agent for all such applicable Florida documentary stamp taxes.

 6.2 Statements. Agent shall render to Administrative Borrower each month a statement setting forth the balance in the
Borrowers’ loan account(s) maintained by Agent for Borrowers pursuant to the provisions of this Agreement, including principal, interest, fees, costs and expenses. Each such statement shall be subject to subsequent adjustment by Agent but
shall, absent manifest errors or omissions, be considered correct and deemed accepted by Borrowers and Guarantors and conclusively binding upon Borrowers and Guarantors as an account stated except to the extent that Agent receives a written notice
from Administrative Borrower of any specific exceptions of Administrative Borrower thereto within thirty (30) days after the date such statement has been received by Administrative Borrower. Until such time as Agent shall have rendered to
Administrative Borrower a written statement as provided above, the balance in any Borrower’s loan account(s) shall be presumptive evidence of the amounts due and owing to Agent and Lenders by Borrowers and Guarantors. 

  
 44 

 6.3 Collection of Accounts. 

(a) Borrowers shall establish and maintain, at their expense, blocked accounts or lockboxes and related blocked accounts (in either case,
and together with the Qualified Cash Blocked Account, collectively, the “Blocked Accounts”), as Agent may specify, with such banks as are acceptable to Agent into which Borrowers shall promptly deposit and direct their respective account
debtors to directly remit all payments on Receivables and all payments constituting proceeds of Inventory or other Collateral in the identical form in which such payments are made, whether by cash, check or other manner. Borrowers shall deliver, or
cause to be delivered to Agent a Deposit Account Control Agreement duly authorized, executed and delivered by each bank where a Blocked Account is maintained as provided in Section 5.2 hereof or at any time and from time to time Agent may
become the bank’s customer with respect to any of the Blocked Accounts and promptly upon Agent’s request, Borrowers shall execute and deliver such agreements and documents as Agent may require in connection therewith. Each Borrower and
Guarantor agrees that all payments made to such Blocked Accounts or other funds received and collected by Agent or any Lender, whether in respect of the Receivables, as proceeds of Inventory or other Collateral or otherwise shall be treated as
payments to Agent and Lenders in respect of the Obligations and therefore shall constitute the property of Agent and Lenders to the extent of the then outstanding Obligations. The Deposit Account Control Agreements covering the Blocked Accounts
(other than the Qualified Cash Account) shall provide, among other things, that all amounts in such Blocked Accounts shall be transferred on a daily basis by such bank or other institution to the Agent Payment Account or such other account as may be
designated by Agent. The Deposit Account Control Agreement covering the Qualified Cash Account shall provide, among other things, that, after delivery of a control notice to the applicable bank or other institution (which may be delivered by Agent
upon the occurrence and during the continuance of an Event of Default), (i) such bank or other institution shall comply with the instructions given by Agent with respect to the Qualified Cash Account and funds therein without further consent by
Borrowers and (ii) all amounts in the Qualified Cash Account be transferred on a daily basis by such bank or other institution to the Agent Payment Account or such other account as may be designated by Agent. The terms of this subsection
(a) shall not apply to any Excluded Accounts. 
 (b) For purposes of calculating the amount of the Loans available to
Borrowers, such payments will be applied (conditional upon final collection) to the Obligations on the Business Day of receipt by Agent of immediately available funds in the Agent Payment Account provided such payments and notice thereof are
received in accordance with Agent’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrowers’ loan account on such day, and if not, then on the next Business Day. For the purposes of
calculating interest on the Obligations, such payments or other funds received will be applied (conditional upon final collection) to the Obligations one (1) Business Day(s) following the date of receipt of immediately available funds by Agent
in the Agent Payment Account provided such payments or other funds and notice thereof are received in accordance with Agent’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrowers’ loan
account on such day, and if not, then on the next Business Day. 
 (c) Borrowers, Guarantors and their respective employees,
agents and Subsidiaries shall, acting as trustee for Agent, receive, as the property of Agent, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other Collateral which come into their

  
 45 

 
possession or under their control and immediately upon receipt thereof, shall deposit or cause the same to be deposited in the Blocked Accounts, or remit the same or cause the same to be
remitted, in kind, to Agent. In no event shall the same be commingled with any Borrower’s or Guarantor’s own funds. Borrowers and Guarantors agree to reimburse Agent on demand for any amounts owed or paid to any bank or other financial
institution at which a Blocked Account or any other deposit account or investment account is established or any other bank, financial institution or other person involved in the transfer of funds to or from the Blocked Accounts arising out of
Agent’s payments to or indemnification of such bank, financial institution or other person. The obligations of Borrowers to reimburse Agent for such amounts pursuant to this Section 6.3 shall survive the termination of this Agreement.

 6.4 Payments. 
 (a) All Obligations shall be payable to the Agent Payment Account as provided in Section 6.3 or such other place as Agent may designate from time to time. Subject to the other terms and conditions
contained herein, Agent shall apply payments received or collected from any Borrower or Guarantor or for the account of any Borrower or Guarantor (including the monetary proceeds of collections or of realization upon any Collateral) as follows:
first, to pay any fees, indemnities or expense reimbursements then due to Agent, Lenders and Issuing Bank from any Borrower or Guarantor; second, to pay interest due in respect of any Loans (and including any Special Agent Advances) or
Letter of Credit Obligations; third, to pay or prepay principal in respect of Special Agent Advances; fourth, to pay all obligations under any purchasing card arrangements provided by a Bank Product Provider (up to the amount of any
then effective Reserve established in respect of such Obligations); fifth, to pay principal due in respect of the Loans and to pay Obligations then due arising under or pursuant to any Hedge Agreements of a Borrower or Guarantor with Agent or
a Bank Product Provider (up to the amount of any then effective Reserve established in respect of such Obligations), on a pro rata basis; sixth, to pay or prepay any other Obligations whether or not then due, in such order and
manner as Agent determines and at any time an Event of Default exists or has occurred and is continuing, to provide cash collateral for any Letter of Credit Obligations or other contingent Obligations (but not including for this purpose any
Obligations arising under or pursuant to any Bank Products); and seventh, to pay or prepay any Obligations arising under or pursuant to any Bank Products (other than to the extent provided for above) on a pro rata basis.
Notwithstanding anything to the contrary contained in this Agreement, to the extent any Borrower uses any proceeds of the Loans or Letters of Credit to acquire rights in or the use of any Collateral or to repay any Indebtedness used to acquire
rights in or the use of any Collateral, payments in respect of the Obligations shall be deemed applied first to the Obligations arising from Loans and Letters of Credit that were not used for such purposes and second to the Obligations arising from
Loans and Letters of Credit the proceeds of which were used to acquire rights in or the use of any Collateral in the chronological order in which such Borrower acquired such rights in or the use of such Collateral. 

(b) At Agent’s option, all principal, interest, fees, costs, expenses and other charges provided for in this Agreement or the other
Financing Agreements may be charged directly to the loan account(s) of any Borrower maintained by Agent. If after receipt of any payment of, or proceeds of Collateral applied to the payment of, any of the Obligations, Agent, any Lender or Issuing
Bank is required to surrender or return such payment or proceeds to any Person for any reason, then the Obligations intended to be satisfied by such payment or proceeds shall be reinstated 

  
 46 

 
and continue and this Agreement shall continue in full force and effect as if such payment or proceeds had not been received by Agent or such Lender. Borrowers and Guarantors shall be liable to
pay to Agent, and do hereby indemnify and hold Agent and Lenders harmless for the amount of any payments or proceeds surrendered or returned. This Section 6.4(b) shall remain effective notwithstanding any contrary action which may be taken by
Agent or any Lender in reliance upon such payment or proceeds. This Section 6.4(b) shall survive the payment of the Obligations and the termination of this Agreement. 
 6.5 Taxes. 
 (a) Any and all payments by or on account of any of the
Obligations shall be made free and clear of and without deduction or withholding for or on account of, any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees, deductions, charges, withholdings, liabilities, restrictions or
conditions of any kind, excluding (i) in the case of each Lender, Issuing Bank and Agent (A) taxes measured by its net income, and franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the laws of
which such Lender, Issuing Bank or Agent (as the case may be) is organized and (B) any United States withholding taxes payable with respect to payments under the Financing Agreements under laws (including any statute, treaty or regulation) in
effect on the date hereof (or, in the case of an Eligible Transferee, the date of the Assignment and Acceptance) applicable to such Lender, Issuing Bank or Agent, as the case may be, but not excluding any United States withholding taxes payable as a
result of any change in such laws occurring after the date hereof (or the date of such Assignment and Acceptance) and (ii) in the case of each Lender, taxes measured by its net income, and franchise taxes imposed on it as a result of a present
or former connection between such Lender and the jurisdiction of the Governmental Authority imposing such tax or any taxing authority thereof or therein (all such non-excluded taxes, levies, imposts, fees, deductions, charges, withholdings and
liabilities being hereinafter referred to as “Taxes”). 
 (b) If any Taxes shall be required by law to be deducted
from or in respect of any sum payable in respect of the Obligations to any Lender, Issuing Bank or Agent (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 6.5), such Lender, Issuing Bank or Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the relevant Borrower or Guarantor
shall make such deductions, (iii) the relevant Borrower or Guarantor shall pay the full amount deducted to the relevant taxing authority or other authority in accordance with applicable law and (iv) the relevant Borrower or Guarantor shall
deliver to Agent evidence of such payment. 
 (c) In addition, each Borrower and Guarantor agrees to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or similar levies of the United States or any political subdivision thereof or any applicable foreign jurisdiction, and all liabilities with respect thereto, in each case
arising from any payment made hereunder or under any of the other Financing Agreements or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any of the other Financing Agreements (collectively,
“Other Taxes”). 
 (d) Each Borrower and Guarantor shall indemnify each Lender, Issuing Bank and Agent for the full
amount of Taxes and Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 6.5) paid by such Lender, Issuing Bank or Agent 

  
 47 

 
(as the case may be) and any liability (including for penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or
legally asserted. This indemnification shall be made within thirty (30) days from the date such Lender, Issuing Bank or Agent (as the case may be) makes written demand therefor. A certificate as to the amount of such payment or liability
delivered to Administrative Borrower by a Lender, Issuing Bank (with a copy to Agent) or by Agent on its own behalf or on behalf of a Lender or Issuing Bank, shall be conclusive absent manifest error. 

(e) As soon as practicable after any payment of Taxes or Other Taxes by any Borrower or Guarantor, such Borrower or Guarantor shall
furnish to Agent, at its address referred to herein, the original or a certified copy of a receipt evidencing payment thereof. 

(f) Without prejudice to the survival of any other agreements of any Borrower or Guarantor hereunder or under any of the other Financing
Agreements, the agreements and obligations of such Borrower or Guarantor contained in this Section 6.5 shall survive the termination of this Agreement and the payment in full of the Obligations. 

(g) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which
the applicable Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any of the other Financing Agreements shall deliver to Administrative Borrower (with a copy to
Agent), at the time or times prescribed by applicable law or reasonably requested by Administrative Borrower or Agent (in such number of copies as is reasonably requested by the recipient), whichever of the following is applicable (but only if such
Foreign Lender is legally entitled to do so): (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming exemption from, or a reduction to, withholding tax under an income tax treaty, or any successor form, (ii) duly
completed copies of Internal Revenue Service Form 8-8ECI claiming exemption from withholding because the income is effectively connection with a U.S. trade or business or any successor form, (iii) in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under Sections 871(h) or 881(c) of the Code, (A) a certificate of the Lender to the effect that such Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code,
a “10 percent shareholder” of a Borrower within the meaning of Section 881(c)(3)(B) of the Code or a “controlled foreign corporation” described and Section 881(c)(3)(C) of the Code and (B) duly completed copies of
Internal Revenue Service Form W-8BEN claiming exemption from withholding under the portfolio interest exemption or any successor form or (iv) any other applicable form, certificate or document prescribed by applicable law as a basis for
claiming exemption from or a reduction in United States withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit a Borrower to determine the withholding or deduction required to
be made. Unless Administrative Borrower and Agent have received forms or other documents satisfactory to them indicating that payments hereunder or under any of the other Financing Agreements to or for a Foreign Lender are not subject to United
States withholding tax or are subject to such tax at a rate reduced by an applicable tax treaty, Borrowers or Agent shall withhold amounts required to be withheld by applicable requirements of law from such payments at the applicable statutory rate.

 (h) Any Lender claiming any additional amounts payable pursuant to this Section 6.5 shall use its reasonable efforts
(consistent with its internal policy and legal and regulatory 

  
 48 

 
restrictions) to change the jurisdiction of its applicable lending office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts that would
be payable or may thereafter accrue and would not, in the sole determination of such Lender, be otherwise disadvantageous to such Lender. 
 6.6 Authorization to Make Loans. Agent and Lenders are authorized to make the Loans based upon telephonic or other instructions received from anyone purporting to be an officer of Administrative
Borrower or any Borrower or other authorized person or, at the discretion of Agent, if such Loans are necessary to satisfy any Obligations. All requests for Loans or Letters of Credit hereunder shall specify the date on which the requested advance
is to be made (which day shall be a Business Day) and the amount of the requested Loan. Requests received after 11:00 a.m. (New York City, New York time) on any day shall be deemed to have been made as of the opening of business on the immediately
following Business Day. All Loans and Letters of Credit under this Agreement shall be conclusively presumed to have been made to, and at the request of and for the benefit of, any Borrower when deposited to the credit of any Borrower or otherwise
disbursed or established in accordance with the instructions of any Borrower or Guarantor or in accordance with the terms and conditions of this Agreement. 
 6.7 Use of Proceeds. Borrowers shall use the initial proceeds of the Loans and Letters of Credit hereunder only for: (a) payments to each of the persons listed in the disbursement direction
letter furnished by Borrowers to Agent on or about the date hereof and (b) costs, expenses and fees in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Financing Agreements. All other Loans
made or Letters of Credit provided to or for the benefit of any Borrower pursuant to the provisions hereof shall be used by such Borrower only for general operating, working capital and other proper corporate and limited liability company purposes
of such Borrower not otherwise prohibited by the terms hereof. None of the proceeds will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security or for the purposes of reducing or retiring any indebtedness
which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the Loans to be considered a “purpose credit” within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System, as amended. All amounts maintained in the Qualified Cash Account shall be used by Borrowers only to repay the Obligations, which payments shall be applied in accordance with the terms of this Agreement. 

6.8 Appointment of Administrative Borrower as Agent for Requesting Loans and Receipts of Loans and Statements. 

(a) Each Borrower hereby irrevocably appoints and constitutes Administrative Borrower as its agent and attorney-in-fact to request and
receive Loans and Letters of Credit pursuant to this Agreement and the other Financing Agreements from Agent or any Lender in the name or on behalf of such Borrower. Agent and Lenders may disburse the Loans to such bank account of Administrative
Borrower or a Borrower or otherwise make such Loans to a Borrower and provide such Letters of Credit to a Borrower as Administrative Borrower may designate or direct, without notice to any other Borrower or Guarantor. Notwithstanding anything to the
contrary contained herein, Agent may at any time and from time to time require that Loans to or for the account of any Borrower be disbursed directly to an operating account of such Borrower. 

  
 49 

 (b) Administrative Borrower hereby accepts the appointment by Borrowers to act as the agent
and attorney-in-fact of Borrowers pursuant to this Section 6.8. Administrative Borrower shall ensure that the disbursement of any Loans to each Borrower requested by or paid to or for the account of a Borrower, or the issuance of any Letter of
Credit for a Borrower hereunder, shall be paid to or for the account of such Borrower. 
 (c) Each Borrower and other Guarantor
hereby irrevocably appoints and constitutes Administrative Borrower as its agent to receive statements on account and all other notices from Agent and Lenders with respect to the Obligations or otherwise under or in connection with this Agreement
and the other Financing Agreements. 
 (d) Any notice, election, representation, warranty, agreement or undertaking by or on
behalf of any other Borrower or any Guarantor by Administrative Borrower shall be deemed for all purposes to have been made by such Borrower or Guarantor, as the case may be, and shall be binding upon and enforceable against such Borrower or
Guarantor to the same extent as if made directly by such Borrower or Guarantor. 
 (e) No purported termination of the
appointment of Administrative Borrower as agent as aforesaid shall be effective, except after ten (10) days’ prior written notice to Agent. 
 6.9 Pro Rata Treatment. Except to the extent otherwise provided in this Agreement or as otherwise agreed by Lenders: (a) the making and conversion of Loans shall be made among the Lenders
based on their respective Pro Rata Shares as to the Loans and (b) each payment on account of any Obligations to or for the account of one or more of Lenders in respect of any Obligations due on a particular day shall be allocated among the
Lenders entitled to such payments based on their respective Pro Rata Shares and shall be distributed accordingly. 
 6.10
Sharing of Payments, Etc. 
 (a) Each Borrower and Guarantor agrees that, in addition to (and without limitation of) any
right of setoff, banker’s lien or counterclaim Agent or any Lender may otherwise have, each Lender shall be entitled, at its option (but subject, as among Agent and Lenders, to the provisions of Section 12.3(b) hereof), to offset balances
held by it for the account of such Borrower or Guarantor at any of its offices, in dollars or in any other currency, against any principal of or interest on any Loans owed to such Lender or any other amount payable to such Lender hereunder, that is
not paid when due (regardless of whether such balances are then due to such Borrower or Guarantor), in which case it shall promptly notify Administrative Borrower and Agent thereof; provided, that, such Lender’s failure to give
such notice shall not affect the validity thereof. 
 (b) If any Lender (including Agent) shall obtain from any Borrower or
Guarantor payment of any principal of or interest on any Loan owing to it or payment of any other amount under this Agreement or any of the other Financing Agreements through the exercise of any right of setoff, banker’s lien or counterclaim or
similar right or otherwise (other than from Agent as provided herein), and, as a result of such payment, such Lender shall have received more than its Pro Rata Share of the principal of the Loans or more than its share of such other amounts then due
hereunder or thereunder by any Borrower or Guarantor to such Lender than the percentage thereof received by any other Lender, it shall promptly pay to Agent, for the benefit of Lenders, the amount of such

  
 50 

 
excess and simultaneously purchase from such other Lenders a participation in the Loans or such other amounts, respectively, owing to such other Lenders (or such interest due thereon, as the case
may be) in such amounts, and make such other adjustments from time to time as shall be equitable, to the end that all Lenders shall share the benefit of such excess payment (net of any expenses that may be incurred by such Lender in obtaining or
preserving such excess payment) in accordance with their respective Pro Rata Shares or as otherwise agreed by Lenders. To such end all Lenders shall make appropriate adjustments among themselves (by the resale of participation sold or otherwise) if
such payment is rescinded or must otherwise be restored. 
 (c) Each Borrower and Guarantor agrees that any Lender purchasing a
participation (or direct interest) as provided in this Section may exercise, in a manner consistent with this Section, all rights of setoff, banker’s lien, counterclaim or similar rights with respect to such participation as fully as if such
Lender were a direct holder of Loans or other amounts (as the case may be) owing to such Lender in the amount of such participation. 
 (d) Nothing contained herein shall require any Lender to exercise any right of setoff, banker’s lien, counterclaims or similar rights or shall affect the right of any Lender to exercise, and retain
the benefits of exercising, any such right with respect to any other Indebtedness or obligation of any Borrower or Guarantor. If, under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a
setoff to which this Section applies, such Lender shall, to the extent practicable, assign such rights to Agent for the benefit of Lenders and, in any event, exercise its rights in respect of such secured claim in a manner consistent with the rights
of Lenders entitled under this Section to share in the benefits of any recovery on such secured claim. 
 6.11 Settlement
Procedures. 
 (a) In order to administer the Credit Facility in an efficient manner and to minimize the transfer of funds
between Agent and Lenders, Agent may, at its option, subject to the terms of this Section, make available, on behalf of Lenders, the full amount of the Revolving Loans requested or charged to any Borrower’s loan account(s) or otherwise to be
advanced by Lenders pursuant to the terms hereof, without requirement of prior notice to Lenders of the proposed Revolving Loans. 
 (b) With respect to all Revolving Loans made by Agent on behalf of Lenders, the amount of each Lender’s Pro Rata Share of the outstanding Revolving Loans shall be computed weekly, and shall be
adjusted upward or downward on the basis of the amount of the outstanding Revolving Loans as of 5:00 p.m. (New York City, New York time) on the Business Day immediately preceding the date of each settlement computation; provided, that,
Agent retains the absolute right at any time or from time to time to make the above described adjustments at intervals more frequent than weekly, but in no event more than twice in any week. Agent shall deliver to each of the Lenders after the end
of each week, or at such period or periods as Agent shall determine, a summary statement of the amount of outstanding Revolving Loans for such period (such week or other period or periods being hereinafter referred to as a “Settlement
Period”). If the summary statement is sent by Agent and received by a Lender prior to 12:00 p.m. (New York City, New York time), then such Lender shall make the settlement transfer described in this Section by no later than 3:00 p.m. (New York
City, New York time) on the same Business Day and if received by a Lender after 12:00 p.m. (New York City, New York time), then such Lender shall make the settlement transfer by not later than 3:00 p.m. (New York City, New York time) on the next
Business Day following the date of 

  
 51 

 
receipt. If, as of the end of any Settlement Period, the amount of a Lender’s Pro Rata Share of the outstanding Revolving Loans is more than such Lender’s Pro Rata Share of the
outstanding Revolving Loans as of the end of the previous Settlement Period, then such Lender shall forthwith (but in no event later than the time set forth in the preceding sentence) transfer to Agent by wire transfer in immediately available funds
the amount of the increase. Alternatively, if the amount of a Lender’s Pro Rata Share of the outstanding Revolving Loans in any Settlement Period is less than the amount of such Lender’s Pro Rata Share of the outstanding Revolving Loans
for the previous Settlement Period, Agent shall forthwith transfer to such Lender by wire transfer in immediately available funds the amount of the decrease. The obligation of each of the Lenders to transfer such funds and effect such settlement
shall be irrevocable and unconditional and without recourse to or warranty by Agent and may occur at any time a Default or Event of Default exists or has occurred and whether or not the conditions set forth in Section 4.2 are satisfied (except
if there is an Event of Default under Section 10.1(g) and 10.1(h), in which case the funds shall be in respect of each Lender’s participation). Agent and each Lender agrees to mark its books and records at the end of each Settlement Period
to show at all times the dollar amount of its Pro Rata Share of the outstanding Revolving Loans and Letters of Credit. Each Lender shall only be entitled to receive interest on its Pro Rata Share of the Revolving Loans to the extent such Revolving
Loans have been funded by such Lender. Because the Agent on behalf of Lenders may be advancing and/or may be repaid Revolving Loans prior to the time when Lenders will actually advance and/or be repaid such Revolving Loans, interest with respect to
Revolving Loans shall be allocated by Agent in accordance with the amount of Revolving Loans actually advanced by and repaid to each Lender and the Agent and shall accrue from and including the date such Revolving Loans are so advanced to but
excluding the date such Revolving Loans are either repaid by Borrowers or actually settled with the applicable Lender as described in this Section. 
 (c) To the extent that Agent has made any such amounts available and the settlement described above shall not yet have occurred, upon repayment of any Revolving Loans by a Borrower, Agent may apply such
amounts repaid directly to any amounts made available by Agent pursuant to this Section. In lieu of weekly or more frequent settlements, Agent may, at its option, at any time require each Lender to provide Agent with immediately available funds
representing its Pro Rata Share of each Revolving Loan, prior to Agent’s disbursement of such Revolving Loan to a Borrower. In such event, Agent shall notify each Lender promptly after Agent’s receipt of the request for the Revolving Loans
from a Borrower (or Administrative Borrower on behalf of such Borrower) or any deemed request hereunder and each Lender shall provide its Pro Rata Share of such requested Loan to the account specified by Agent in immediately available funds not
later than 2:00 p.m. (New York City, New York time) on the requested funding date, so that all such Revolving Loans shall be made by the Lenders simultaneously and proportionately to their Pro Rata Shares. No Lender shall be responsible for any
default by any other Lender in the other Lender’s obligation to make a Loan requested hereunder nor shall the Commitment of any Lender be increased or decreased as a result of the default by any other Lender in the other Lender’s
obligation to make a Loan hereunder. 
 (d) Upon the making of any Revolving Loan by Agent as provided herein, without further
action by any party hereto, each Lender shall be deemed to have irrevocably and unconditionally purchased and received from Agent, without recourse or warranty, an undivided interest and participation to the extent of such Lender’s Pro Rata
Share in such Loan. To the extent that there is no settlement in accordance with the terms hereof, Agent may at any time require the 

  
 52 

 
Lenders to fund their participations. From and after the date, if any, on which any Lender has funded its participation in any such Revolving Loan, Agent shall promptly distribute to such Lender,
such Lender’s Pro Rata Share of all payments of principal and interest received by Agent in respect of such Revolving Loan. 
 (e) As to any Revolving Loan funded by Agent on behalf of a Lender whether pursuant to Sections 6.11(a), 6.11(b) or 6.11(c) above, Agent may assume that each Lender will make available to Agent such
Lender’s Pro Rata Share of the Revolving Loan requested or otherwise made on such day in the case of Revolving Loans funded pursuant to Section 6.11(c) above or otherwise on the applicable settlement date. If Agent makes amounts available
to a Borrower and such corresponding amounts are not in fact made available to Agent by such Lender, Agent shall be entitled to recover such corresponding amount on demand from such Lender together with interest thereon for each day from the date
such payment was due until the date such amount is paid to Agent at the Federal Funds Rate for each day during such period (as published by the Federal Reserve Bank of New York or at Agent’s option based on the arithmetic mean determined by
Agent of the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City, New York time) on that day by each of the three leading brokers of Federal funds transactions in New York selected by Agent) and if
such amounts are not paid within three (3) days of Agent’s demand, at the highest Interest Rate provided for in Section 3.1 hereof applicable to Base Rate Revolving Loans. During the period in which such Lender has not paid such
corresponding amount to Agent, notwithstanding anything to the contrary contained in this Agreement or any of the other Financing Agreements, the amount so advanced by Agent to or for the benefit of any Borrower shall, for all purposes hereof, be a
Loan made by Agent for its own account. 
 (f) Upon any failure by a Lender to pay Agent pursuant to the settlement described in
Section 6.11(b) above or to pay Agent pursuant to Section 6.11(c), 6.11(d) or Section 6.11(e), Agent shall promptly thereafter notify Administrative Borrower of such failure and Borrowers shall pay such corresponding amount to Agent
for its own account within five (5) Business Days of Administrative Borrower’s receipt of such notice. The term “Defaulting Lender” shall mean (i) any Lender that has failed to fund any portion of the Revolving Loans or
participations in Letter of Credit Obligations required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, or has otherwise failed to pay over to Agent or any other Lender any other
amount required to be paid by it hereunder within one (1) Business Day of the date when due, (ii) any Lender that has notified Agent, any Lender, Issuing Bank, or any Borrower or Guarantor in writing that it will not or does not intend to
comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it will not or does not intend to comply with its funding obligations under this Agreement or under other agreements in which it has
agreed to make Revolving Loans or provide other financial accommodations, or (iii) any Lender that becomes or is insolvent or has a parent company that has become or is insolvent or becomes the subject of a bankruptcy or insolvency proceeding,
or has a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment and has not obtained all required
orders, approvals or consents of any court or other Governmental Authority to continue to fulfill its obligations hereunder, in form and substance reasonably satisfactory to Agent. 

(g) Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for the Defaulting Lender’s
benefit, nor shall a Defaulting Lender be entitled to the sharing 

  
 53 

 
of any payments hereunder (including any principal, interest or fees, whether in respect of Revolving Loans, participation interests or otherwise). For purposes of voting or consenting to matters
with respect to this Agreement and the other Financing Agreements and determining Pro Rata Shares, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero (0). For purposes
of the calculation of Excess Availability, the portion of the Commitment of the Defaulting Lender (immediately prior to being a Defaulting Lender) shall not be included. So long as there is a Defaulting Lender, the maximum amount of the Revolving
Loans and Letters of Credit shall not exceed the aggregate amount of the Commitments for Revolving Loans of the Lenders that are not Defaulting Lenders plus the Pro Rata Share of the Defaulting Lender (determined immediately prior to its being a
Defaulting Lender) of the Revolving Loans and Letters of Credit outstanding as of the date that the Defaulting Lender has become a Defaulting Lender. At any time that there is a Defaulting Lender, payments received for application to the Obligations
payable to Lenders in accordance with the terms of this Agreement shall be distributed to Lenders based on their Pro Rata Shares calculated after giving effect to the reduction of the Defaulting Lender’s Commitment to zero as provided herein or
at Agent’s option, Agent may instead receive and retain such amounts that would be otherwise attributable to the Pro Rata Share of a Defaulting Lender (which for such purpose shall be such Pro Rata Share as in effect immediately prior to its
being a Defaulting Lender). To the extent that Agent elects to receive and retain such amounts, Agent may hold such amounts (which shall not accrue interest) and, in its reasonable discretion, relend such amounts to a Borrower. To the extent that
Agent exercises its option to relend such amounts, such amounts shall be treated as Revolving Loans for the account of Agent in addition to the Revolving Loans that are made by the Lenders other than a Defaulting Lender based on their respective Pro
Rata Shares as calculated after giving effect to the reduction of such Defaulting Lender’s Commitment to zero (0) as provided herein but shall be repaid in the same order of priority as the principal amount of the Revolving Loans on a pro
rata basis for purposes of Section 6.4 hereof. Agent shall determine whether any Revolving Loans requested shall be made from relending such amounts or from Revolving Loans from the Lenders (other than a Defaulting Lender) and any allocation of
requested Revolving Loans between them. The rights of a Defaulting Lender shall be limited as provided herein until such time as the Defaulting Lender has made all payments to Agent of the amounts that it had failed to pay causing it to become a
Defaulting Lender and such Lender is otherwise in compliance with the terms of this Agreement (including making any payments as it would have been required to make as a Lender during the period that it was a Defaulting Lender other than in respect
of the principal amount of Revolving Loans, which payments as to the principal amount of Revolving Loans shall be made based on the outstanding balance thereof on the date of the cure by Defaulting Lender or at such other time thereafter as Agent
may specify) or has otherwise provided evidence in form and substance reasonably satisfactory to Agent that such Defaulting Lender will be able to fund its Pro Rata Share (as in effect immediately prior to its being a Defaulting Lender) in
accordance with the terms hereof. Upon the cure by Defaulting Lender of the event that is the basis for it to be a Defaulting Lender by making such payment or payments and such Lender otherwise being in compliance with the terms hereof, such Lender
shall cease to be a Defaulting Lender and shall only be entitled to payment of interest accrued during the period that such Lender was a Defaulting Lender to the extent previously received and retained by Agent from or for the account of Borrowers
on the funds constituting Loans funded by such Lender prior to the date of it being a Defaulting Lender (and not previously paid to such Lender) and shall otherwise, on and after such cure, make Revolving Loans and settle in respect of the Revolving
Loans and other Obligations in accordance with the terms hereof. The existence of a Defaulting Lender and the 

  
 54 

 
operation of this Section shall not be construed to increase or otherwise affect the Commitment of any Lender, or relieve or excuse the performance by any Borrower or Guarantor of its duties and
obligations hereunder (including, but not limited to, the obligation of such Borrower or Guarantor to make any payments hereunder, whether in respect of Revolving Loans by a Defaulting Lender or otherwise). 

(h) Notwithstanding anything to the contrary contained in this Agreement, in the event that there is a Defaulting Lender, if there are
any Letters of Credit outstanding, within one (1) Business Day after the written request of Issuing Bank, Borrowers shall pay to Agent an amount equal to the Pro Rata Share of the Defaulting Lender (calculated as in effect immediately prior to
such Lender becoming a Defaulting Lender) of the Letter of Credit Obligations then outstanding to be held by Agent on terms and conditions satisfactory to Agent and Issuing Bank as cash collateral for the Obligations and for so long as there is a
Defaulting Lender, Issuing Bank shall not be required to issue any Letter of Credit, or increase or extend or otherwise amend any Letter of Credit, unless upon the request of Issuing Bank, Agent has cash collateral from Borrowers in an amount equal
to the Pro Rata Share of the Defaulting Lender (calculated as in effect immediately prior to such Lender becoming a Defaulting Lender) of the Letter of Credit Obligations outstanding after giving effect to any such requested Letter of Credit (or
increase, extension or other amendment) to be held by Agent on its behalf on terms and conditions satisfactory to Agent and Issuing Bank or there are other arrangements reasonably satisfactory to Issuing Bank with respect to the participation in
Letters of Credit by such Defaulting Lender. Such cash collateral shall be applied first to the Letter of Credit Obligations before application to any other Obligations, notwithstanding anything to the contrary contained in Section 6.4 hereof.

 (i) Nothing in this Section or elsewhere in this Agreement or the other Financing Agreements shall be deemed to require Agent
to advance funds on behalf of any Lender or to relieve any Lender from its obligation to fulfill its Commitment hereunder or to prejudice any rights that any Borrower may have to commence any legal action against a Lender as a result of any default
by such Lender hereunder in fulfilling its Commitment. 
 6.12 Obligations Several; Independent Nature of Lenders’
Rights. The obligation of each Lender hereunder is several, and no Lender shall be responsible for the obligation or commitment of any other Lender hereunder. Nothing contained in this Agreement or any of the other Financing Agreements and no
action taken by the Lenders pursuant hereto or thereto shall be deemed to constitute the Lenders to be a partnership, an association, a joint venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a
separate and independent debt, and subject to Section 12.3 hereof, each Lender shall be entitled to protect and enforce its rights arising out of this Agreement and it shall not be necessary for any other Lender to be joined as an additional
party in any proceeding for such purpose. 
 6.13 Bank Products. Borrowers and Guarantors, or any of their Subsidiaries,
may (but no such Person is required to) request that the Bank Product Providers provide or arrange for such Person to obtain Bank Products from Bank Product Providers, and each Bank Product Provider may, in its sole discretion, provide or arrange
for such Person to obtain the requested Bank Products. Borrowers and Guarantors or any of their Subsidiaries that obtains Bank Products shall indemnify and hold Agent, each Lender and their respective Affiliates harmless from any and all obligations
now or hereafter owing to any other Person by any Bank Product Provider in connection with any 

  
 55 

 
Bank Products other than for gross negligence or willful misconduct on the part of any such indemnified Person. This Section 6.13 shall survive the payment of the Obligations and the
termination of this Agreement. Borrower and its Subsidiaries acknowledge and agree that the obtaining of Bank Products from Bank Product Providers (a) is in the sole discretion of such Bank Product Provider, and (b) is subject to all rules
and regulations of such Bank Product Provider. 
 SECTION 7. COLLATERAL REPORTING AND COVENANTS 

7.1 Collateral Reporting. 
 (a) Borrowers shall provide Agent with the following documents in a form satisfactory to Agent: 
 (i) on a regular basis as required by Agent, schedules of sales made, credits issued and cash received; 
 (ii) as soon as possible after the end of each week (but in any event within three (3) Business Days after the end thereof), on a weekly basis or more frequently as Agent may request, (A) a
detailed schedule (it being understood and agreed that, as of the date hereof, Agent has received a draft of such schedule and that, on or before December 10, 2010, such schedule shall be in final form as determined by Agent in good faith and
in exercise of reasonable (from the perspective of an asset based secured lender) business judgment) setting forth the percentage of orders filled by Borrowers during the immediately preceding week and month-to-date with respect to orders placed by
customers under each Fill Rate Contract, together with a certification by the chief financial officer of Administrative Borrower that no Borrower or Guarantor: (1) has received notification of any default or breach under any Fill Rate Contract,
including, without limitation, in respect of any “fill” obligations under any Fill Rate Contract, or notification terminating or purporting to terminate any Fill Rate Contract, or (2) has become aware of, obtained knowledge of, or
received notification of any offset or taking of any credit, discount or reduction of any order or invoice price as a result of any default or breach of any “fill” obligations under any Fill Rate Contract, and (B) a report of accounts
payable and accrued accounts payable with respect to Future Electronics Corp.; 
 (iii) as soon as possible after the end of
each month (but in any event within fifteen (15) days after the end thereof), on a monthly basis (or (1) on a weekly basis (but in any event within three (3) Business Days after the end thereof) after the occurrence and during the
continuance of a Collateral Reporting Trigger Event or (2) more frequently as Agent may request after the occurrence and during the continuance of an Event of Default): 
 (A) a Borrowing Base Certificate setting forth the calculation of the Borrowing Base as of the last Business Day of the immediately preceding period, duly completed and executed by the chief executive
officer, chief financial officer or other financial or senior officer of Administrative Borrower, together with all schedules (including schedules of sales made, credits issues and cash received) required pursuant to the terms of the Borrowing Base
Certificate duly completed, 
 (B) perpetual inventory reports, 

  
 56 

 (C) inventory reports by location and category (and including the amounts of Inventory and
the value thereof at any leased locations and at premises of warehouses, processors or other third parties), 
 (D) detailed
and summary agings of accounts receivable (together with a reconciliation to the previous month’s aging and general ledger), 
 (E) agings of accounts payable (and including information indicating the amounts owing to owners and lessors of leased premises, warehouses, processors and other third parties from time to time in
possession of any Collateral), 
 (F) report of accrued accounts payable, 

(G) copies of detailed reports prepared by Customer 2 Factoring Agent setting forth the Customer 2 Accounts that have been sold to
Customer 2 Factoring Agent pursuant to the Customer 2 Factoring Agent Discount Documents as of the last day of the immediately preceding period, and 
 (H) a detailed report of all payments made, or funds transferred, to Lighting Science Mexico; 
 (iv) after the occurrence and during the continuance of a Collateral Reporting Trigger Event, on each day that one or more Customer 2 Accounts is/are sold to Customer 2 Factoring Agent pursuant to the
Customer 2 Factoring Agent Discount Documents, a copy of the detailed report prepared by Customer 2 Factoring Agent setting forth each such Customer 2 Account sold; 
 (v) upon Agent’s request, (A) copies of customer statements, purchase orders, sales invoices, credit memos, remittance advices and reports, and copies of deposit slips and bank statements,
(B) copies of shipping and delivery documents, and (C) copies of purchase orders, invoices and delivery documents for Inventory and Equipment acquired by any Borrower or Guarantor; and 

(vi) such other reports as to the Collateral as Agent shall request from time to time. 

(b) In addition, Borrowers and Guarantors agree to use commercially reasonable efforts in cooperation with Agent to facilitate and
implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth in Section 7.1(a) above. If Borrowers’ or Guarantors’ records or reports of the Collateral are prepared or
maintained by an accounting service, contractor, shipper or other agent, Borrowers and Guarantors hereby irrevocably authorize such service, contractor, shipper or agent to deliver such records, reports, and related documents to Agent and to follow
Agent’s instructions with respect to further services at any time that an Event of Default exists or has occurred and is continuing. 
 7.2 Accounts Covenants. 
 (a) Borrowers shall notify Agent promptly of:
(i) any material delay in any Borrower’s performance of any of its material obligations to any account debtor or the assertion of any material 

  
 57 

 
claims, offsets, defenses or counterclaims by any account debtor, or any material disputes with account debtors, or any settlement, adjustment or compromise thereof, (ii) all material
adverse information known to any Borrower or Guarantor relating to the financial condition of any account debtor and (iii) any event or circumstance which, to the best of any Borrower’s or Guarantor’s knowledge, would cause Agent to
consider any then existing Accounts as no longer constituting Eligible Accounts. No credit, discount, allowance or extension or agreement for any of the foregoing shall be granted to any account debtor without Agent’s consent, except in the
ordinary course of a Borrower’s business in accordance with practices and policies previously disclosed in writing to Agent and except as set forth in the schedules delivered to Agent pursuant to Section 7.1(a) above. So long as no Event
of Default exists or has occurred and is continuing, Borrowers shall settle, adjust or compromise any claim, offset, counterclaim or dispute with any account debtor. At any time that an Event of Default exists or has occurred and is continuing,
Agent shall, at its option, have the exclusive right to settle, adjust or compromise any claim, offset, counterclaim or dispute with account debtors or grant any credits, discounts or allowances. 

(b) With respect to each Account: (i) the amounts shown on any invoice delivered to Agent or schedule thereof delivered to Agent
shall be true and complete, (ii) no payments shall be made thereon except payments immediately delivered to Agent pursuant to the terms of this Agreement, (iii) no credit, discount, allowance or extension or agreement for any of the
foregoing shall be granted to any account debtor except as reported to Agent in accordance with this Agreement and except for credits, discounts, allowances or extensions made or given in the ordinary course of Borrowers’ business in accordance
with practices and policies previously disclosed to Agent, (iv) there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or asserted with respect thereto except as reported to Agent in accordance with the
terms of this Agreement, (v) none of the transactions giving rise thereto will violate any applicable foreign, Federal, State or local laws or regulations, all documentation relating thereto will be legally sufficient under such laws and
regulations and all such documentation will be legally enforceable in accordance with its terms. 
 (c) Agent shall have the
right at any time or times, in Agent’s name or in the name of a nominee of Agent, to verify the validity, amount or any other matter relating to any Receivables or other Collateral, by mail, telephone, facsimile transmission or otherwise.

 7.3 Inventory Covenants. With respect to the Inventory: (a) Borrowers shall at all times maintain inventory
records reasonably satisfactory to Agent, keeping correct and accurate records itemizing and describing the kind, type, quality and quantity of Inventory, such Borrower’s or Guarantor’s cost therefor and daily withdrawals therefrom and
additions thereto; (b) Borrowers and Guarantors shall conduct a physical count of the Inventory at least once each year but at any time or times as Agent may request on or after an Event of Default, and promptly following such physical
inventory shall supply Agent with a report in the form and with such specificity as may be satisfactory to Agent concerning such physical count; (c) Borrowers and Guarantors shall not remove any Inventory from the locations set forth or
permitted herein, without the prior written consent of Agent, except for sales of Inventory in the ordinary course of its business and except to move Inventory directly from one location set forth or permitted herein to another such location and
except for Inventory shipped from the manufacturer thereof to such Borrower or Guarantor which is in transit to the locations set forth or permitted herein; (d) upon Agent’s request, Borrowers shall, at their expense, no more than two
(2) times in any twelve (12) month period, but at any time or times 

  
 58 

 
as Agent may request on or after an Event of Default, deliver or cause to be delivered to Agent written appraisals as to the Inventory in form, scope and methodology acceptable to Agent and by an
appraiser acceptable to Agent, addressed to Agent and Lenders and upon which Agent and Lenders are expressly permitted to rely; (e) Borrowers and Guarantors shall produce, use, store and maintain the Inventory with all reasonable care and
caution and in accordance with applicable standards of any insurance and in conformity with applicable laws (including the requirements of the Federal Fair Labor Standards Act of 1938, as amended and all rules, regulations and orders related
thereto); (f) none of the Inventory or other Collateral constitutes farm products or the proceeds thereof; (g) each Borrower and Guarantor assumes all responsibility and liability arising from or relating to the production, use, sale or
other disposition of the Inventory; (h) Borrowers and Guarantors shall not sell Inventory to any customer on approval, or any other basis which entitles the customer to return or may obligate any Borrower or Guarantor to repurchase such
Inventory; (i) Borrowers and Guarantors shall keep the Inventory in good and marketable condition; and (j) Borrowers and Guarantors shall not, without prior written notice to Agent or the specific identification of such Inventory in a
report with respect thereto provided by Borrowers to Agent pursuant to Section 7.1(a) hereof, acquire or accept any Inventory on consignment or approval. 
 7.4 Equipment and Real Property Covenants. With respect to the Equipment and Real Property: (a) Borrowers and Guarantors shall keep the Equipment in good order, repair, running and marketable
condition (ordinary wear and tear excepted); (b) Borrowers and Guarantors shall use the Equipment and Real Property with all reasonable care and caution and in accordance with applicable standards of any insurance and in conformity with all
applicable laws; and (c) each Borrower and Guarantor assumes all responsibility and liability arising from the use of the Equipment and Real Property. 
 7.5 Power of Attorney. Each Borrower and Guarantor hereby irrevocably designates and appoints Agent (and all persons designated by Agent) as such Borrower’s and Guarantor’s true and
lawful attorney-in-fact, and authorizes Agent, in such Borrower’s, Guarantor’s or Agent’s name, to: (a) at any time an Event of Default exists or has occurred and is continuing (i) demand payment on Receivables or other
Collateral, (ii) enforce payment of Receivables by legal proceedings or otherwise, (iii) exercise all of such Borrower’s or Guarantor’s rights and remedies to collect any Receivable or other Collateral, (iv) sell or assign
any Receivable upon such terms, for such amount and at such time or times as the Agent deems advisable, (v) settle, adjust, compromise, extend or renew an Account, (vi) discharge and release any Receivable, (vii) prepare, file and
sign such Borrower’s or Guarantor’s name on any proof of claim in bankruptcy or other similar document against an account debtor or other obligor in respect of any Receivables or other Collateral, (viii) notify the post office
authorities to change the address for delivery of remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral to an address designated by Agent, and open and dispose of all mail addressed to such
Borrower or Guarantor and handle and store all mail relating to the Collateral; and (ix) do all acts and things which are necessary, in Agent’s determination, to fulfill such Borrower’s or Guarantor’s obligations under this
Agreement and the other Financing Agreements and (b) at any time to (i) take control in any manner of any item of payment in respect of Receivables or constituting Collateral or otherwise received in or for deposit in the Blocked Accounts
or otherwise received by Agent or any Lender, (ii) have access to any lockbox or postal box into which remittances from account debtors or other obligors in respect of Receivables or other proceeds of Collateral are sent or received,
(iii) endorse such Borrower’s or Guarantor’s name upon any items of payment in respect of Receivables or 

  
 59 

 
constituting Collateral or otherwise received by Agent and any Lender and deposit the same in Agent’s account for application to the Obligations, (iv) endorse such Borrower’s or
Guarantor’s name upon any chattel paper, document, instrument, invoice, or similar document or agreement relating to any Receivable or any goods pertaining thereto or any other Collateral, including any warehouse or other receipts, or bills of
lading and other negotiable or non-negotiable documents, (v) clear Inventory the purchase of which was financed with a Letter of Credit through U.S. Customs or foreign export control authorities in such Borrower’s or Guarantor’s name,
Agent’s name or the name of Agent’s designee, and to sign and deliver to customs officials powers of attorney in such Borrower’s or Guarantor’s name for such purpose, and to complete in such Borrower’s or Guarantor’s or
Agent’s name, any order, sale or transaction, obtain the necessary documents in connection therewith and collect the proceeds thereof, and (vi) sign such Borrower’s or Guarantor’s name on any verification of Receivables and
notices thereof to account debtors or any secondary obligors or other obligors in respect thereof. Each Borrower and Guarantor hereby releases Agent and Lenders and their respective officers, employees and designees from any liabilities arising from
any act or acts under this power of attorney and in furtherance thereof, whether of omission or commission, except as a result of Agent’s or any Lender’s own gross negligence or willful misconduct as determined pursuant to a final
non-appealable order of a court of competent jurisdiction. 
 7.6 Right to Cure. Agent may, at its option, upon notice to
Administrative Borrower, (a) cure any default by any Borrower or Guarantor under any material agreement with a third party that affects the Collateral, its value or the ability of Agent to collect, sell or otherwise dispose of the Collateral or
the rights and remedies of Agent or any Lender therein or the ability of any Borrower or Guarantor to perform its obligations hereunder or under any of the other Financing Agreements, (b) pay or bond on appeal any judgment entered against any
Borrower or Guarantor, (c) discharge taxes, liens, security interests or other encumbrances at any time levied on or existing with respect to the Collateral and (d) pay any amount, incur any expense or perform any act which, in
Agent’s judgment, is necessary or appropriate to preserve, protect, insure or maintain the Collateral and the rights of Agent and Lenders with respect thereto. Agent may add any amounts so expended to the Obligations and charge any
Borrower’s account therefor, such amounts to be repayable by Borrowers on demand. Agent and Lenders shall be under no obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to have assumed any obligation or
liability of any Borrower or Guarantor. Any payment made or other action taken by Agent or any Lender under this Section shall be without prejudice to any right to assert an Event of Default hereunder and to proceed accordingly. 

7.7 Access to Premises. From time to time as requested by Agent, at the cost and expense of Borrowers, (a) Agent or its
designee shall have complete access to all of each Borrower’s and Guarantor’s premises during normal business hours and after notice to Administrative Borrower, or at any time and without notice to Administrative Borrower if an Event of
Default exists or has occurred and is continuing, for the purposes of inspecting, verifying and auditing the Collateral and all of each Borrower’s and Guarantor’s books and records, including the Records, and (b) each Borrower and
Guarantor shall promptly furnish to Agent such copies of such books and records or extracts therefrom as Agent may request, and Agent or any Lender or Agent’s designee may use during normal business hours such of any Borrower’s and
Guarantor’s personnel, equipment, supplies and premises as may be reasonably necessary for the foregoing and if an Event of Default exists or has occurred and is continuing for the collection of Receivables and realization of other Collateral.

  
 60 

 SECTION 8. REPRESENTATIONS AND WARRANTIES 

Each Borrower and Guarantor hereby represents and warrants to Agent, Lenders and Issuing Bank the following (which shall survive the
execution and delivery of this Agreement), the truth and accuracy of which are a continuing condition of the making of Loans and providing Letter of Credit Obligations to Borrowers: 

8.1 Corporate/Limited Liability Company Existence, Power and Authority. Each Borrower and Guarantor is a corporation or limited
liability company duly organized and in good standing under the laws of its jurisdiction of incorporation or formation (as applicable) and is duly qualified as a foreign corporation or limited liability company, as applicable, and in good standing
in all states or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such qualification necessary, except for those jurisdictions in which the failure to so qualify would not have a
Material Adverse Effect. The execution, delivery and performance of this Agreement, the other Financing Agreements and the transactions contemplated hereunder and thereunder (a) are all within each Borrower’s and Guarantor’s corporate
or limited liability company powers (as applicable), (b) have been duly authorized, (c) are not in contravention of law or the terms of any Borrower’s or Guarantor’s certificate of incorporation, certificate of formation, by
laws, limited liability company agreement, limited partnership agreement or other organizational documentation, or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its
property are bound and (d) will not result in the creation or imposition of, or require or give rise to any obligation to grant, any lien, security interest, charge or other encumbrance upon any property of any Borrower or Guarantor, except
under the Agreement and the other Financing Agreements. This Agreement and the other Financing Agreements to which any Borrower or Guarantor is a party constitute legal, valid and binding obligations of such Borrower and Guarantor enforceable in
accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and general equitable principles. 

8.2 Name; State of Organization; Chief Executive Office; Collateral Locations. 

(a) The exact legal name of each Borrower and Guarantor is as set forth on the signature page of this Agreement and in the Information
Certificate. No Borrower or Guarantor has, during the five years prior to the date of this Agreement, been known by or used any other corporate or fictitious name or been a party to any merger or consolidation, or acquired all or substantially all
of the assets of any Person, or acquired any of its property or assets out of the ordinary course of business, except as set forth in the Information Certificate. 
 (b) Each Borrower and Guarantor is an organization of the type and organized in the jurisdiction set forth in the Information Certificate. The Information Certificate accurately sets forth the
organizational identification number of each Borrower and Guarantor or accurately states that such Borrower or Guarantor has none and accurately sets forth the federal employer identification number of each Borrower and Guarantor. 

  
 61 

 (c) The chief executive office and mailing address of each Borrower and Guarantor and each
Borrower’s and Guarantor’s Records concerning Accounts are located only at the address identified as such in Schedule 8.2 to the Information Certificate and its only other places of business and the only other locations of Collateral, if
any, are the addresses set forth in Schedule 8.2 to the Information Certificate, subject to the rights of any Borrower or Guarantor to establish new locations in accordance with Section 9.2 below. The Information Certificate correctly
identifies any of such locations which are not owned by a Borrower or Guarantor and sets forth the owners and/or operators thereof. 
 8.3 Financial Statements; No Material Adverse Change. All financial statements relating to any Borrower or Guarantor which have been or may hereafter be delivered by any Borrower or Guarantor to
Agent and Lenders have been prepared in accordance with GAAP (except as to any interim financial statements, to the extent such statements are subject to normal year-end adjustments and do not include any notes) and fairly present in all material
respects the financial condition and the results of operation of such Borrower and Guarantor as at the dates and for the periods set forth therein. Except as disclosed in any interim financial statements furnished by Borrowers and Guarantors to
Agent prior to the date of this Agreement, there has been no act, condition or event which has had or is reasonably likely to have a Material Adverse Effect since the date of the most recent audited financial statements of any Borrower or Guarantor
furnished by any Borrower or Guarantor to Agent prior to the date of this Agreement. The projections dated June 6, 2010 for the fiscal years ending 2010 through 2011 that have been delivered to Agent or any projections hereafter delivered to
Agent have been prepared in light of the past operations of the businesses of Borrowers and Guarantors and are based upon estimates and assumptions stated therein, all of which Borrowers and Guarantors have determined to be reasonable and fair in
light of the then current conditions and current facts and reflect the good faith and reasonable estimates of Borrowers and Guarantors of the future financial performance of Borrowers, Guarantors and their respective Subsidiaries and of the other
information projected therein for the periods set forth therein. 
 8.4 Priority of Liens; Title to Properties. The
security interests and liens granted to Agent under this Agreement and the other Financing Agreements constitute valid and perfected first priority liens and security interests in and upon the Collateral subject only to the liens indicated on
Schedule 8.4 to the Information Certificate and the other liens permitted under Section 9.8 hereof. Each Borrower and Guarantor has good, valid and merchantable title to all of its properties and assets subject to no liens, mortgages, pledges,
security interests, encumbrances or charges of any kind, except those granted to Agent and such others as are specifically listed on Schedule 8.4 to the Information Certificate or permitted under Section 9.8 hereof. 

8.5 Tax Returns. Each Borrower and Guarantor has filed, or caused to be filed, in a timely manner all tax returns, reports and
declarations which are required to be filed by it. All information in such tax returns, reports and declarations is complete and accurate in all material respects. Each Borrower and Guarantor has paid or caused to be paid all taxes due and payable
or claimed due and payable in any assessment received by it, except (a) taxes the validity of which are being contested in good faith by appropriate proceedings diligently pursued and available to such Borrower or Guarantor and with respect to
which adequate reserves have been set aside on its books and (b) the Existing Tax Lien; provided, that, with respect to the Existing Tax Lien, on or before January 19 , 2011, Agent shall have received evidence, in form and
substance satisfactory to Agent, 

  
 62 

 
that such Existing Tax Lien has been paid and released of record. Adequate provision has been made for the payment of all accrued and unpaid Federal, State, county, local, foreign and other taxes
whether or not yet due and payable and whether or not disputed. 
 8.6 Litigation. Except as set forth on Schedule 8.6 to
the Information Certificate, (a) there is no investigation by any Governmental Authority pending, or to the best of any Borrower’s or Guarantor’s knowledge threatened, against or affecting any Borrower or Guarantor, its or their
assets or business and (b) there is no action, suit, proceeding or claim by any Person pending, or to the best of any Borrower’s or Guarantor’s knowledge threatened, against any Borrower or Guarantor or its or their assets or
goodwill, or against or affecting any transactions contemplated by this Agreement, in each case, which if adversely determined against such Borrower or Guarantor has or could reasonably be expected to have a Material Adverse Effect. 

8.7 Compliance with Other Agreements and Applicable Laws. 

(a) Borrowers and Guarantors are not in default in any material respect under, or in violation in any respect of the terms of, any
Material Contract (other than any specific default as may be expressly set forth in the Closing Officer’s Certificate delivered on the date hereof by the chief financial offer of Administrative Borrower to Agent). Borrowers and Guarantors are
in compliance with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority relating to their respective businesses, including, without limitation, those set forth in or promulgated pursuant to the
Occupational Safety and Health Act of 1970, as amended, the Fair Labor Standards Act of 1938, as amended, ERISA, the Code, as amended, and the rules and regulations thereunder, and all Environmental Laws, in each case where the failure to comply has
or could reasonably be expected to have a Material Adverse Effect. 
 (b) Borrowers and Guarantors have obtained all material
permits, licenses, approvals, consents, certificates, orders or authorizations of any Governmental Authority required for the lawful conduct of its business (the “Permits”). All of the Permits are valid and subsisting and in full force and
effect. There are no actions, claims or proceedings pending or to the best of any Borrower’s or Guarantor’s knowledge, threatened that seek the revocation, cancellation, suspension or modification of any of the Permits. 

8.8 Environmental Compliance. 
 (a) Except as set forth on Schedule 8.8 to the Information Certificate, Borrowers, Guarantors and any Subsidiary of any Borrower or Guarantor have not generated, used, stored, treated, transported,
manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violates in any material respect any applicable Environmental Law or Permit, and the
operations of Borrowers, Guarantors and any Subsidiary of any Borrower or Guarantor complies in all material respects with all Environmental Laws and all Permits. 
 (b) Except as set forth on Schedule 8.8 to the Information Certificate, there has been no investigation by any Governmental Authority or any proceeding, complaint, order, directive, claim, citation or
notice by any Governmental Authority or any other person nor is any pending or to the best of any Borrower’s or Guarantor’s knowledge threatened, with respect to any non compliance 

  
 63 

 
with or violation of the requirements of any Environmental Law by any Borrower or Guarantor and any Subsidiary of any Borrower or Guarantor or the release, spill or discharge, threatened or
actual, of any Hazardous Material or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials or any other environmental, health or safety matter, which adversely affects or
could reasonably be expected to have a Material Adverse Effect. 
 (c) Except as set forth on Schedule 8.8 to the Information
Certificate, Borrowers, Guarantors and their Subsidiaries have no material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage,
treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials. 
 (d) Borrowers,
Guarantors and their Subsidiaries have all Permits required to be obtained or filed in connection with the operations of Borrowers and Guarantors under any Environmental Law and all of such licenses, certificates, approvals or similar authorizations
and other Permits are valid and in full force and effect. 
 8.9 Employee Benefits. 

(a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or State law.
Each Plan which is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service or is a prototype plan that is entitled to rely on an opinion letter issued by the Internal
Revenue Service to the prototype plan sponsor regarding qualification of the form of the prototype plan, and to the best of any Borrower’s or Guarantor’s knowledge, nothing has occurred which would cause the loss of such qualification.
Each Borrower and its ERISA Affiliates have made all required contributions to any Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the
Code has been made with respect to any Plan. 
 (b) There are no pending, or to the best of any Borrower’s or
Guarantor’s knowledge, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any
Plan. 
 (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) based on the latest valuation of each
Pension Plan and on the actuarial methods and assumptions employed for such valuation (determined in accordance with the assumptions used for funding such Pension Plan pursuant to Section 412 of the Code), the aggregate current value of
accumulated benefit liabilities of such Pension Plan under Section 4001(a)(16) of ERISA does not exceed the aggregate current value of the assets of such Pension Plan; (iii) each Borrower and Guarantor, and their ERISA Affiliates, have not
incurred and do not reasonably expect to incur, any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) each Borrower and Guarantor, and their ERISA
Affiliates, have not incurred and do not reasonably expect to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA

  
 64 

 
with respect to a Multiemployer Plan; and (v) each Borrower and Guarantor, and their ERISA Affiliates, have not engaged in a transaction that would be subject to Section 4069 or 4212(c)
of ERISA. 
 8.10 Bank Accounts. All of the deposit accounts, investment accounts or other accounts in the name of or
used by any Borrower or Guarantor maintained at any bank or other financial institution are set forth on Schedule 8.10 to the Information Certificate, subject to the right of each Borrower and Guarantor to establish new accounts in accordance with
Section 5.2 hereof. 
 8.11 Intellectual Property. Each Borrower and Guarantor owns or licenses or otherwise has the
right to use all Intellectual Property necessary for the operation of its business as presently conducted or proposed to be conducted. As of the date hereof, Borrowers and Guarantors do not have any Intellectual Property registered, or subject to
pending applications, in the United States Patent and Trademark Office or any similar office or agency in the United States, any State thereof, any political subdivision thereof or in any other country, other than those described in Schedule 8.11 to
the Information Certificate and have not granted any material licenses with respect thereto other than as set forth in Schedule 8.11 to the Information Certificate. No event has occurred which permits or would permit after notice or passage of time
or both, the revocation, suspension or termination of such rights. To the best of any Borrower’s and Guarantor’s knowledge, no slogan or other advertising device, product, process, method, substance or other Intellectual Property or goods
bearing or using any Intellectual Property presently contemplated to be sold by or employed by any Borrower or Guarantor infringes any patent, trademark, servicemark, tradename, copyright, license or other Intellectual Property owned by any other
Person presently and no claim or litigation is pending or threatened against or affecting any Borrower or Guarantor contesting its right to sell or use any such Intellectual Property. Schedule 8.11 to the Information Certificate sets forth all of
the material agreements or other material arrangements of each Borrower and Guarantor pursuant to which such Borrower or Guarantor has a license or other right to use any trademarks, logos, designs, representations or other Intellectual Property
owned by another person as in effect on the date hereof and the dates of the expiration of such agreements or other arrangements of such Borrower or Guarantor as in effect on the date hereof (collectively, together with such agreements or other
arrangements as may be entered into by any Borrower or Guarantor after the date hereof, collectively, the “License Agreements” and individually, a “License Agreement”). No trademark, servicemark, copyright or other Intellectual
Property at any time used by any Borrower or Guarantor which is owned by another person, or owned by such Borrower or Guarantor subject to any security interest, lien, collateral assignment, pledge or other encumbrance in favor of any person other
than Agent, is affixed to any Eligible Inventory, except (a) to the extent permitted under the term of the applicable License Agreements listed on Schedule 8.11 to the Information Certificate and (b) to the extent the sale of Inventory to
which such Intellectual Property is affixed is permitted to be sold by such Borrower or Guarantor under applicable law (including the United States Copyright Act of 1976). 
 8.12 Subsidiaries; Affiliates; Capitalization; Solvency. 
 (a) No Borrower
or Guarantor has any direct or indirect Subsidiaries or Affiliates or is engaged in any joint venture or partnership, except as set forth in Schedule 8.12 to the Information Certificate. 

  
 65 

 (b) Each Borrower and Guarantor is the record and beneficial owner of all of the issued and
outstanding shares of Equity Interests of each of the Subsidiaries listed on Schedule 8.12 to the Information Certificate as being owned by such Borrower or Guarantor and there are no proxies, irrevocable or otherwise, with respect to such shares
and no equity securities of any of the Subsidiaries are or may become required to be issued by reason of any options, warrants, rights to subscribe to, calls or commitments of any kind or nature and there are no contracts, commitments,
understandings or arrangements by which any Subsidiary is or may become bound to issue additional shares of its Equity Interests or securities convertible into or exchangeable for such shares. 

(c) The issued and outstanding shares of Equity Interests or membership interests of each Borrower and Guarantor are directly and
beneficially owned and held by the persons indicated in the Information Certificate, and in each case all of such shares or membership interests have been duly authorized and are fully paid and non-assessable, free and clear of all claims, liens,
pledges and encumbrances of any kind, except as disclosed in writing to Agent prior to the date hereof. 
 (d) Each Borrower and
Guarantor is Solvent and will continue to be Solvent after the creation of the Obligations, the security interests of Agent and the other transaction contemplated hereunder. 
 8.13 Labor Disputes. 
 (a) Set forth on Schedule 8.13 to the Information
Certificate is a list (including dates of termination) of all collective bargaining or similar agreements between or applicable to each Borrower and Guarantor and any union, labor organization or other bargaining agent in respect of the employees of
any Borrower or Guarantor on the date hereof. 
 (b) There is (i) no significant unfair labor practice complaint pending
against any Borrower or Guarantor or, to the best of any Borrower’s or Guarantor’s knowledge, threatened against it, before the National Labor Relations Board, and no significant grievance or significant arbitration proceeding arising out
of or under any collective bargaining agreement is pending on the date hereof against any Borrower or Guarantor or, to best of any Borrower’s or Guarantor’s knowledge, threatened against it, and (ii) no significant strike, labor
dispute, slowdown or stoppage is pending against any Borrower or Guarantor or, to the best of any Borrower’s or Guarantor’s knowledge, threatened against any Borrower or Guarantor. 

8.14 Restrictions on Subsidiaries. Except for restrictions contained in this Agreement or any other agreement with respect to
Indebtedness of any Borrower or Guarantor permitted hereunder as in effect on the date hereof, there are no contractual or consensual restrictions on any Borrower or Guarantor or any of its Subsidiaries which prohibit or otherwise restrict
(a) the transfer of cash or other assets (i) between any Borrower or Guarantor and any of its or their Subsidiaries or (ii) between any Subsidiaries of any Borrower or Guarantor or (b) the ability of any Borrower or Guarantor or
any of its or their Subsidiaries to incur Indebtedness or grant security interests to Agent or any Lender in the Collateral. 

8.15 Material Contracts. Schedule 8.15 to the Information Certificate sets forth all Material Contracts to which any Borrower or
Guarantor is a party or is bound as of the date hereof. Borrowers and Guarantors have delivered true, correct and complete copies of such Material 

  
 66 

 
Contracts to Agent on or before the date hereof. Borrowers and Guarantors are not in breach or in default in any material respect of or under any Material Contract (other than any specific
default as may be expressly set forth in the Closing Officer’s Certificate delivered on the date hereof by the chief financial offer of Administrative Borrower to Agent) and have not received any notice of the intention of any other party
thereto to terminate any Material Contract. With respect to any Fill Rate Contract, no Borrower or Guarantor: (i) has received notification of any default or breach under any Fill Rate Contract, including, without limitation, in respect of any
“fill” obligations under any Fill Rate Contract, or notification terminating or purporting to terminate any Fill Rate Contract, or (ii) has become aware of, obtained knowledge of, or received notification of any offset or taking of
any credit, discount or reduction of any order or invoice price as a result of any default or breach of any “fill” obligations under any Fill Rate Contract. 
 8.16 Payable Practices. No Borrower or Guarantor has made any material change in the historical accounts payable practices from those in effect immediately prior to the date hereof. 

8.17 OFAC. No Borrower, any Subsidiary of Borrower or any Affiliate of Borrower: (a) is a Sanctioned Person, (b) has
more than ten (10%) percent of its assets in Sanctioned Entities, or (c) derives more than ten (10%) percent of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds of
any Loan will not be used and have not been used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. 

8.18 Accuracy and Completeness of Information. All information furnished by or on behalf of any Borrower or Guarantor in writing
to Agent or any Lender in connection with this Agreement or any of the other Financing Agreements or any transaction contemplated hereby or thereby, including all information on the Information Certificate is true and correct in all material
respects on the date as of which such information is dated or certified and does not omit any material fact necessary in order to make such information not misleading. No event or circumstance has occurred which has had or could reasonably be
expected to have a Material Adverse Affect, which has not been fully and accurately disclosed to Agent in writing prior to the date hereof. 
 8.19 Survival of Warranties; Cumulative. All representations and warranties contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this
Agreement and shall be deemed to have been made again to Agent and Lenders on the date of each additional borrowing or other credit accommodation hereunder and shall be conclusively presumed to have been relied on by Agent and Lenders regardless of
any investigation made or information possessed by Agent or any Lender. The representations and warranties set forth herein shall be cumulative and in addition to any other representations or warranties which any Borrower or Guarantor shall now or
hereafter give, or cause to be given, to Agent or any Lender. 
 8.20 Common Enterprise. The successful operation and
condition of each of the Borrowers is dependent on the continued successful performance of the functions of Borrowers as a whole and the successful operation of each of the Borrowers is dependent on the successful performance and operation of the
other Borrowers. Each Borrower expects to derive benefit (and its board of directors or other governing body has determined that it may reasonably be expected to derive benefit), directly and indirectly, from successful operations of the other
Borrowers. Each Borrower expects to derive benefit (and the boards of directors or other governing body of each 

  
 67 

 
Borrower has determined that it may reasonably be expected to derive benefit), directly and indirectly, from the credit extended by the Lenders to the Borrowers hereunder, both in their separate
capacities and as members of the group of companies. Each Borrower has determined that execution, delivery, and performance of this Agreement and any other Financing Agreements to be executed by such Borrower is within its purpose, will be of direct
and indirect benefit to such Borrower, and is in its best interest. 
 8.21 The Customer 2 Factoring Agent Discount
Documents. The Customer 2 Factoring Agent Discount Documents, the UCC-1 financing statement between Customer 2 Factoring Agent, as secured party, and Lighting Science, as debtor, and the Customer 2 Factoring Agent Intercreditor Agreement are the
only agreements, documents or instruments to be executed and delivered by Borrowers or any other Obligor on or before the date hereof in connection with the transactions contemplated by the Customer 2 Factoring Agent Discount Documents. Borrowers
and the other Obligors shall obtain the prior written consent of Agent if any additional document or agreement is executed or delivered by Borrowers or any other Obligor with, to or in favor of Customer 2 Factoring Agent. 

SECTION 9. AFFIRMATIVE AND NEGATIVE COVENANTS 
 9.1 Maintenance of Existence. 
 (a) Each Borrower and Guarantor shall at
all times preserve, renew and keep in full force and effect its corporate, limited liability company or limited partnership (as applicable) existence and rights and franchises with respect thereto and maintain in full force and effect all licenses,
trademarks, tradenames, approvals, authorizations, leases, contracts and Permits necessary to carry on the business as presently or proposed to be conducted, except as to any Guarantor as permitted in Section 9.7 hereto. 

(b) No Borrower or Guarantor shall change its name unless each of the following conditions is satisfied: (i) Agent shall have
received not less than thirty (30) days’ prior written notice from Administrative Borrower of such proposed change in its corporate name, which notice shall accurately set forth the new name; and (ii) Agent shall have received a copy
of the amendment to the certificate of incorporation, articles of association, certificate of formation, by laws, limited liability agreement, limited partnership agreement or other organizational documents of such Borrower or Guarantor providing
for the name change certified by the Secretary of State of the jurisdiction of incorporation or formation of such Borrower or Guarantor as soon as it is available. 
 (c) No Borrower or Guarantor shall change its chief executive office or its mailing address or organizational identification number (or if it does not have one, shall not acquire one) unless Agent shall
have received not less than thirty (30) days’ prior written notice from Administrative Borrower of such proposed change, which notice shall set forth such information with respect thereto as Agent may require and Agent shall have received
such agreements as Agent may reasonably require in connection therewith. No Borrower or Guarantor shall change its type of organization, jurisdiction of organization or other legal structure unless Administrative Borrower has given Agent thirty
(30) days (or such shorter period of time as Agent may agree to in writing) prior written notice thereof and such Borrower or Guarantor has taken (or caused to be taken) all steps required by Agent with respect thereto (including without
limitation all steps required by Agent to 

  
 68 

 
maintain the priority and effectiveness of Agent’s lien on the Collateral); provided, that, no Borrower or Guarantor shall change its jurisdiction of incorporation or
organization to a jurisdiction or location from (i) the continental United States to outside of the continental United States or (ii) one country to another country. 
 9.2 New Collateral Locations. Each Borrower and Guarantor may only open any new location within the continental United States provided such Borrower or Guarantor (a) gives Agent thirty
(30) days prior written notice of the intended opening of any such new location and (b) executes and delivers, or causes to be executed and delivered, to Agent such agreements, documents, and instruments as Agent may deem reasonably
necessary or desirable to protect its interests in the Collateral at such location. 
 9.3 Compliance with Laws, Regulations,
Etc. 
 (a) Each Borrower and Guarantor shall, and shall cause any Subsidiary to, at all times, comply in all material
respects with all laws, rules, regulations, licenses, approvals, orders and other Permits applicable to it and duly observe all requirements of any foreign, Federal, State or local Governmental Authority. 

(b) Borrowers and Guarantors shall give written notice to Agent immediately upon any Borrower’s or Guarantor’s receipt of any
notice of, or any Borrower’s or Guarantor’s otherwise obtaining knowledge of, any of the following that has or could reasonably be expected to have a Material Adverse Effect: (i) the occurrence of any event involving the release,
spill or discharge, threatened or actual, of any Hazardous Material or (ii) any investigation, proceeding, complaint, order, directive, claims, citation or notice with respect to: (A) any non-compliance with or violation of any
Environmental Law by any Borrower or Guarantor or (B) the release, spill or discharge, threatened or actual, of any Hazardous Material other than in the ordinary course of business and other than as permitted under any applicable Environmental
Law. Copies of all environmental surveys, audits, assessments, feasibility studies and results of remedial investigations shall be promptly furnished, or caused to be furnished, by such Borrower or Guarantor to Agent. Each Borrower and Guarantor
shall take prompt action to respond to any material non-compliance with any of the Environmental Laws and shall regularly report to Agent on such response. 
 (c) Without limiting the generality of the foregoing, whenever Agent reasonably determines that there is non-compliance, or any condition which requires any action by or on behalf of any Borrower or
Guarantor in order to avoid any non-compliance, with any Environmental Law, Borrowers shall, at Agent’s request and Borrowers’ expense: (i) cause an independent environmental engineer reasonably acceptable to Agent to conduct such
tests of the site where non-compliance or alleged non compliance with such Environmental Laws has occurred as to such non-compliance and prepare and deliver to Agent a report as to such non-compliance setting forth the results of such tests, a
proposed plan for responding to any environmental problems described therein, and an estimate of the costs thereof and (ii) provide to Agent a supplemental report of such engineer whenever the scope of such non-compliance, or such
Borrower’s or Guarantor’s response thereto or the estimated costs thereof, shall change in any material respect. 

(d) Each Borrower and Guarantor shall indemnify and hold harmless Agent and Lenders and their respective directors, officers, employees,
agents, invitees, representatives, successors and 

  
 69 

 
assigns, from and against any and all losses, claims, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees and expenses) directly or indirectly arising out of or
attributable to the use, generation, manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or presence of a Hazardous Material, including the costs of any required or necessary repair, cleanup or other remedial
work with respect to any property of any Borrower or Guarantor and the preparation and implementation of any closure, remedial or other required plans. All representations, warranties, covenants and indemnifications in this Section 9.3 shall
survive the payment of the Obligations and the termination of this Agreement. 
 9.4 Payment of Taxes and Claims. Each
Borrower and Guarantor shall, and shall cause any Subsidiary to, duly pay and discharge all taxes, assessments, contributions and governmental charges upon or against it or its properties or assets, except for taxes the validity of which are being
contested in good faith by appropriate proceedings diligently pursued and available to such Borrower, Guarantor or Subsidiary, as the case may be, and with respect to which adequate reserves have been set aside on its books. Each Borrower and
Guarantor shall be liable for any tax or penalties imposed on Agent or any Lender as a result of the financing arrangements provided for herein and each Borrower and Guarantor agrees to indemnify and hold Agent harmless with respect to the
foregoing, and to repay to Agent, for the benefit of Lenders, on demand the amount thereof, and until paid by such Borrower or Guarantor such amount shall be added and deemed part of the Loans; provided, that, nothing contained herein
shall be construed to require any Borrower or Guarantor to pay any income or franchise taxes attributable to the income of Lenders from any amounts charged or paid hereunder to Lenders. The foregoing indemnity shall survive the payment of the
Obligations and the termination of this Agreement to the extent required by GAAP. 
 9.5 Insurance. Each Borrower and
Guarantor shall, and shall cause any Subsidiary to, at all times, maintain with financially sound and reputable insurers insurance with respect to the Collateral against loss or damage and all other insurance of the kinds and in the amounts
customarily insured against or carried by corporations of established reputation engaged in the same or similar businesses and similarly situated. Said policies of insurance shall be reasonably satisfactory to Agent as to form, amount and insurer.
Borrowers and Guarantors shall furnish certificates, policies or endorsements to Agent as Agent shall reasonably require as proof of such insurance, and, if any Borrower or Guarantor fails to do so, Agent is authorized, but not required, to obtain
such insurance at the expense of Borrowers. All policies shall provide for at least thirty (30) days prior written notice to Agent of any cancellation or reduction of coverage and that Agent may act as attorney for each Borrower and Guarantor
in obtaining, and at any time an Event of Default exists or has occurred and is continuing, adjusting, settling, amending and canceling such insurance. Borrowers and Guarantors shall cause Agent to be named as a loss payee and an additional insured
(but without any liability for any premiums) under such insurance policies with respect to the Collateral and Borrowers and Guarantors shall obtain non-contributory lender’s loss payable endorsements to all insurance policies in form and
substance reasonably satisfactory to Agent. Such lender’s loss payable endorsements shall specify that the proceeds of such insurance shall be payable to Agent as its interests may appear and further specify that Agent and Lenders shall be paid
regardless of any act or omission by any Borrower, Guarantor or any of its or their Affiliates (it being understood and agreed that, on or before the renewal of such insurance on October 31, 2011, Borrowers and Guarantors shall use commercially
reasonable efforts to deliver to Agent a replacement lender’s loss payable endorsement substantially in one of the forms attached as Exhibit 9.5 hereto or in such other form satisfactory to Agent as determined in good faith and in
exercise of reasonable (from the 

  
 70 

 
perspective of an asset based secured lender) business judgment). Without limiting any other rights of Agent or Lenders, any insurance proceeds received by Agent at any time may be applied to
payment of the Obligations, whether or not then due, in any order and in such manner as Agent may determine. Upon application of such proceeds to the Revolving Loans, Revolving Loans may be available subject and pursuant to the terms hereof to be
used for the costs of repair or replacement of the Collateral lost or damages resulting in the payment of such insurance proceeds. 
 9.6 Financial Statements and Other Information. 
 (a) Each Borrower and
Guarantor shall, and shall cause any Subsidiary to, keep proper books and records in which true and complete entries shall be made of all dealings or transactions of or in relation to the Collateral and the business of such Borrower, Guarantor and
its Subsidiaries in accordance with GAAP. Borrowers and Guarantors shall promptly furnish to Agent and Lenders all such financial and other information as Agent shall reasonably request relating to the Collateral and the assets, business and
operations of Borrowers and Guarantors, and Borrower shall notify the auditors and accountants of Borrowers and Guarantors that Agent is authorized to obtain such information directly from them. Without limiting the foregoing, Borrowers shall
furnish or cause to be furnished to Agent, the following: 
 (i) within thirty (30) days after the end of each fiscal
month, monthly unaudited consolidated financial statements and unaudited consolidating financial statements (including in each case balance sheets, statements of income and loss, statements of cash flow, and statements of shareholders’ equity),
all in reasonable detail, fairly presenting in all material respects the financial position and the results of the operations of Borrowers, Guarantors and their respective Subsidiaries as of the end of and through such fiscal month, certified to be
correct by the chief financial officer of Administrative Borrower, subject to normal year-end adjustments and accompanied by a compliance certificate substantially in the form of Exhibit C hereto, along with a schedule in form reasonably
satisfactory to Agent of the calculations used in determining, as of the end of such month, whether Borrowers and Guarantors were in compliance with the covenants set forth in Section 9.17 of this Agreement for such month, and 

(ii) within one hundred twenty (120) days after the end of each fiscal year, audited consolidated financial statements and unaudited
consolidating financial statements of Borrowers, Guarantors and their respective Subsidiaries (including in each case balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), and the
accompanying notes thereto, all in reasonable detail, fairly presenting in all material respects the financial position and the results of the operations of Borrowers, Guarantors and their respective Subsidiaries as of the end of and for such fiscal
year, together with the unqualified opinion of independent certified public accountants with respect to the audited consolidated financial statements, which accountants shall be an independent accounting firm selected by Administrative Borrower and
acceptable to Agent, that such audited consolidated financial statements have been prepared in accordance with GAAP, and present fairly in all material respects the results of operations and financial condition of Borrowers, Guarantors and their
respective Subsidiaries as of the end of and for the fiscal year then ended, and 
 (iii) at such time as available, but in no
event later than thirty (30) days prior to the end of each fiscal year (commencing with the fiscal year of Borrowers ending December 31, 2011), 

  
 71 

 
projected consolidated and consolidating financial statements (including in each case, forecasted balance sheets and statements of income and loss, statements of cash flow, statements of
shareholders’ equity and availability projections) of Borrowers and Guarantors for the next fiscal year, all in reasonable detail, and in a format consistent with the projections delivered by Borrowers to Agent prior to the date hereof,
together with such supporting information as Agent may reasonably request. Such projected financial statements shall be prepared on a monthly basis for the next succeeding year. Such projections shall represent the reasonable best estimate by
Borrowers and Guarantors of the future financial performance of Borrowers, Guarantors and their respective Subsidiaries for the periods set forth therein and shall have been prepared on the basis of the assumptions set forth therein which Borrowers
and Guarantors believe are fair and reasonable as of the date of preparation in light of current and reasonably foreseeable business conditions (it being understood that actual results may differ from those set forth in such projected financial
statements). Each year Borrowers shall provide to Agent a semi-annual update with respect to such projections or at any time a Default or Event of Default exists or has occurred and is continuing, more frequently as Agent may require. 

(b) Borrowers and Guarantors shall promptly notify Agent in writing of the details of (i) any loss, damage, investigation, action,
suit, proceeding or claim relating to Collateral having a value of more than $250,000 or which if adversely determined could reasonably be expected to result in a Material Adverse Effect, (ii) any Material Contract being terminated or amended
or any new Material Contract entered into (in which event Borrowers and Guarantors shall provide Agent with a copy of such Material Contract), (iii) any order, judgment or decree in excess of $250,000 shall have been entered against any
Borrower or Guarantor any of its or their properties or assets, (iv) any notification of a material violation of laws or regulations received by any Borrower or Guarantor, (v) any ERISA Event, and (vi) the occurrence of any Default or
Event of Default. 
 (c) Promptly after the sending or filing thereof, Borrowers shall send to Agent copies of (i) all
reports which Borrowers, Guarantors or any of their Subsidiaries sends to its or their security holders generally, (ii) all reports and registration statements which Borrowers, Guarantors or any of its or their Subsidiaries files with the
Securities Exchange Commission, any national or foreign securities exchange or the National Association of Securities Dealers, Inc., and such other reports as Agent may hereafter specifically identify to Administrative Borrower that Agent will
require be provided to Agent, (iii) all press releases and (iv) all other statements concerning material changes or developments in the business of a Borrower or Guarantor made available by any Borrower or Guarantor to the public.

 (d) Borrowers and Guarantors shall furnish or cause to be furnished to Agent such budgets, forecasts, projections and other
information respecting the Collateral and the business of Borrowers and Guarantors, as Agent may, from time to time, reasonably request. Agent is hereby authorized to deliver a copy of any financial statement or any other information relating to the
business of Borrowers and Guarantors to any court or other Governmental Authority or to any Lender or Participant or prospective Lender or Participant or any Affiliate of any Lender or Participant. Each Borrower and Guarantor hereby irrevocably
authorizes and directs all accountants or auditors to deliver to Agent, at Borrowers’ expense, copies of the financial statements of any Borrower and Guarantor and any reports or management letters prepared by such accountants or auditors on
behalf of any Borrower or Guarantor and to disclose to Agent and Lenders such information as they may have regarding the business of any Borrower and Guarantor. Any 

  
 72 

 
documents, schedules, invoices or other papers delivered to Agent or any Lender may be destroyed or otherwise disposed of by Agent or such Lender one (1) year after the same are delivered to
Agent or such Lender, except as otherwise designated by Administrative Borrower to Agent or such Lender in writing. 
 9.7
Sale of Assets, Consolidation, Merger, Dissolution, Etc. Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, directly or indirectly: 
 (a) merge into or with or consolidate with any other Person or permit any other Person to merge into or with or consolidate with it; except, that, any Borrower or Guarantor may merge with
and into or consolidate with any other Borrower or Guarantor (including any such Borrower or Guarantor that only becomes a Borrower or Guarantor after giving effect to such merger or consolidation subject to the conditions set forth herein) so long
as (i) no Event of Default shall have occurred and be continuing, (ii) Administrative Borrower shall give Agent at least ten (10) Business Days prior notice thereof, which notice shall set forth in detail reasonably satisfactory to
Agent, the persons that are merging or consolidating, which person will be the surviving entity, the locations of the assets of the persons that are merging or consolidating, and the material agreements and documents relating to such merger or
consolidation, (iii) if a Borrower is a party to such merger or consolidation with a Guarantor, that Borrower shall be the surviving entity, (iv) no Borrower or Guarantor shall merge or consolidate with a Borrower or Guarantor that exists
under the laws of a country different than the country in which such Loan Party exists and (v) prior to such merger or consolidation Borrowers and Guarantors have taken (or caused to be taken) all steps required by Agent in good faith and in
exercise of reasonable (from the perspective of an asset based secured lender) business judgment with respect thereto (including without limitation all steps required by Agent to maintain Agent’s liens on the Collateral granted by Borrowers and
Guarantors, as well as the priority and effectiveness of such liens); 
 (b) sell, issue, assign, lease, license, transfer,
abandon or otherwise dispose of any Equity Interests or Indebtedness to any other Person or any of its assets to any other Person, except for: 
 (i) sales of Inventory in the ordinary course of business, 
 (ii) the sale or
other disposition of Equipment (including worn-out or obsolete Equipment or Equipment no longer used or useful in the business of any Borrower or Guarantor); provided, that, Administrative Borrower shall provide Agent with five
(5) Business Days’ prior written notice of the sale or other disposition of Equipment having an aggregate fair market value in excess of, individually or cumulatively with other Equipment, $300,000, 

(iii) the issuance and sale by any Borrower or Guarantor of Equity Interests of such Borrower or Guarantor after the date hereof (other
than any Specified Issuance); provided, that, (A) Agent shall have received not less than five (5) Business Days’ prior written notice of such issuance and sale by such Borrower or Guarantor, which notice shall specify
the parties to whom such Equity Interests are to be sold, the terms of such sale, the total amount which it is anticipated will be realized from the issuance and sale of such Equity Interests and the net cash proceeds which it is anticipated will be
received by such Borrower or Guarantor from such sale, (B) except as Agent may otherwise agree in writing, such Borrower or Guarantor shall not be required to pay any cash dividends or repurchase or redeem such Equity Interests or make any
other payments in respect 

  
 73 

 
thereof, except as otherwise permitted in Section 9.11 hereof, (C) the terms of such Equity Interests, and the terms and conditions of the purchase and sale thereof, shall not include
any terms that include any limitation on the right of any Borrower to request or receive Loans or Letters of Credit or the right of any Borrower and Guarantor to amend or modify any of the terms and conditions of this Agreement or any of the other
Financing Agreements or otherwise in any way relate to or affect the arrangements of Borrowers and Guarantors with Agent and Lenders or are more restrictive or burdensome to any Borrower or Guarantor than the terms of any Equity Interests in effect
on the date hereof, (D) except as Agent may otherwise agree in writing, all of the proceeds of the sale and issuance of such Equity Interests shall be paid to Agent for application to the Obligations in such order and manner as Agent may
determine and (E) as of the date of such issuance and sale and after giving effect thereto, no Default or Event of Default shall exist or have occurred, 
 (iv) any of the Specified Issuances; provided, that, (A) Administrative Borrower shall have provided, and Agent shall have received, written notice at least thirty (30) days after
any such Specified Issuance by such Borrower or Guarantor, which notice shall specify the parties to whom such Equity Interests were sold, the terms of such sale, the total amount realized from the issuance and sale of such Equity Interests and the
net cash proceeds received by such Borrower or Guarantor from such sale, (B) except as Agent may otherwise agree in writing, such Borrower or Guarantor shall not be required to pay any cash dividends or repurchase or redeem such Equity
Interests or make any other payments in respect thereof, except as otherwise permitted in Section 9.11 hereof, (C) the terms of such Equity Interests, and the terms and conditions of the purchase and sale thereof, shall not include any
terms that include any limitation on the right of any Borrower to request or receive Loans or Letters of Credit or the right of any Borrower and Guarantor to amend or modify any of the terms and conditions of this Agreement or any of the other
Financing Agreements or otherwise in any way relate to or affect the arrangements of Borrowers and Guarantors with Agent and Lenders or are more restrictive or burdensome to any Borrower or Guarantor than the terms of any Equity Interests in effect
on the date hereof, (D) except as Agent may otherwise agree in writing, all of the proceeds of the sale and issuance of such Equity Interests shall be paid to Agent for application to the Obligations in such order and manner as Agent may
determine and (E) after giving effect thereto, no Change of Control or other Event of Default shall exist or have occurred, 
 (v) the issuance of Equity Interests of any Borrower or Guarantor consisting of common stock pursuant to an employee stock option or grant or similar equity plan or 401(k) plans of such Borrower or
Guarantor for the benefit of its employees, directors and consultants; provided, that, in no event shall such Borrower or Guarantor be required to issue, or shall such Borrower or Guarantor issue, Equity Interests pursuant to such
stock plans or 401(k) plans which would result in a Change of Control or other Event of Default, and 
 (vi) sales of Customer 2
Accounts only by Borrowers to Customer 2 Factoring Agent in accordance with the terms and conditions of the Customer 2 Factoring Agent Discount Documents (as in effect on the date hereof) so long as the following terms and conditions are satisfied
as determined by Agent: (A) the sale or transfer of the Customer 2 Accounts to Customer 2 Factoring Agent shall be without any recourse, offset or claim of any kind or nature to or against Borrowers, Obligors or Agent, (B) Agent shall have
received, in form and substance reasonably satisfactory to Agent: (1) a true, correct and complete copy of any Customer 2 Factoring Agent Discount Document, duly authorized, executed and delivered by Customer 2 Factoring Agent and Borrowers,
(2) the Customer 2 Factoring Agent Intercreditor Agreement, duly authorized, executed 

  
 74 

 
and delivered by Customer 2 Factoring Agent and Borrowers, and (3) evidence, in form and substance satisfactory to Agent, that Agent has access at all times (other than during network
outages that may occur in the ordinary course) to the Customer 2 Factoring Agent System for the purposes of, among other things, reviewing the details of any Customer 2 Accounts that have been purchased by Customer 2 Factoring Agent,
(C) further sales of the Customer 2 Accounts will cease upon a written notice by Agent to Administrative Borrower of a Default or Event of Default, (D) Borrowers shall not, directly or indirectly, amend, modify, alter or change any terms
of the Customer 2 Factoring Agent Discount Documents and (E) Borrowers shall furnish to Agent all notices or demands (if any) in connection with the arrangements made pursuant to the Customer 2 Factoring Agent Discount Documents either received
by Borrowers or any other Obligor or on its or their behalf, promptly after receipt thereof, or sent by Borrowers or any other Obligor or its or their affiliates or on its or their behalf, concurrently with the sending thereof, as the case may be;
and 
 (c) wind up, liquidate or dissolve; except, that, any Guarantor may wind up, liquidate and dissolve;
provided, that, each of the following conditions is satisfied, (i) the winding up, liquidation and dissolution of such Guarantor shall not violate any law or any order or decree of any court or other Governmental Authority in any
material respect and shall not conflict with or result in the breach of, or constitute a default under, any indenture, mortgage, deed of trust, or any other agreement or instrument to which any Borrower or Guarantor is a party or may be bound,
(ii) such winding up, liquidation or dissolution shall be done in accordance with the requirements of all applicable laws and regulations, (iii) effective upon such winding up, liquidation or dissolution, all of the assets and properties
of such Guarantor shall be duly and validly transferred and assigned to a Borrower or a Guarantor, free and clear of any liens, restrictions or encumbrances other than the security interest and liens of Agent (and Agent shall have received such
evidence thereof as Agent may require) and Agent shall have received such deeds, assignments or other agreements as Agent may request to evidence and confirm the transfer of such assets of such Guarantor to a Borrower, (iv) Agent shall have
received all documents and agreements that any Borrower or Guarantor has filed with any Governmental Authority or as are otherwise required to effectuate such winding up, liquidation or dissolution, (v) no Borrower or Guarantor shall assume any
Indebtedness, obligations or liabilities as a result of such winding up, liquidation or dissolution, or otherwise become liable in respect of any obligations or liabilities of the entity that is winding up, liquidating or dissolving, unless such
Indebtedness is otherwise expressly permitted hereunder, (vi) Agent shall have received not less than five (5) Business Days prior written notice of the intention of such Guarantor to wind up, liquidate or dissolve, and (vii) as of
the date of such winding up, liquidation or dissolution and after giving effect thereto, no Default or Event of Default shall exist or have occurred; or 
 (d) agree to do any of the foregoing. 
 9.8 Encumbrances. Each Borrower and
Guarantor shall not, and shall not permit any Subsidiary to, create, incur, assume or suffer to exist any security interest, mortgage, pledge, lien, charge or other encumbrance of any nature whatsoever on any of its assets or properties, including
the Collateral, or file or permit the filing of, or permit to remain in effect, any financing statement or other similar notice of any security interest or lien with respect to any such assets or properties, except: 

(a) the security interests and liens of Agent for itself and the benefit of Secured Parties; 

  
 75 

 (b) liens securing the payment of taxes, assessments or other governmental charges or levies
either not yet overdue or the validity of which are being contested in good faith by appropriate proceedings diligently pursued and available to such Borrower, or Guarantor or Subsidiary, as the case may be and with respect to which adequate
reserves have been set aside on its books; 
 (c) non-consensual statutory liens (other than liens securing the payment of
taxes) arising in the ordinary course of such Borrower’s, Guarantor’s or Subsidiary’s business to the extent: (i) such liens secure Indebtedness which is not overdue or (ii) such liens secure Indebtedness relating to claims
or liabilities which are fully insured and being defended at the sole cost and expense and at the sole risk of the insurer or being contested in good faith by appropriate proceedings diligently pursued and available to such Borrower, Guarantor or
such Subsidiary, in each case prior to the commencement of foreclosure or other similar proceedings and with respect to which adequate reserves have been set aside on its books; 

(d) zoning restrictions, easements, licenses, covenants and other restrictions affecting the use of Real Property which do not interfere
in any material respect with the use of such Real Property or ordinary conduct of the business of such Borrower, Guarantor or such Subsidiary as presently conducted thereon or materially impair the value of the Real Property which may be subject
thereto; 
 (e) purchase money security interests in Equipment (including Capital Leases) and purchase money mortgages on Real
Property to secure Indebtedness permitted under Section 9.9(b) hereof; 
 (f) pledges and deposits of cash by any Borrower
or Guarantor after the date hereof in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security benefits consistent with the current practices of such Borrower or
Guarantor as of the date hereof; 
 (g) pledges and deposits of cash by any Borrower or Guarantor after the date hereof to
secure the performance of tenders, bids, leases, trade contracts (other than for the repayment of Indebtedness), statutory obligations and other similar obligations in each case in the ordinary course of business consistent with the current
practices of such Borrower or Guarantor as of the date hereof; provided, that, in connection with any performance bonds issued by a surety or other person, the issuer of such bond shall have waived in writing any rights in or to, or
other interest in, any of the Collateral in an agreement, in form and substance reasonably satisfactory to Agent; 
 (h) liens
arising from (i) operating leases and the precautionary UCC financing statement filings in respect thereof and (ii) equipment or other materials which are not owned by any Borrower or Guarantor located on the premises of such Borrower or
Guarantor (but not in connection with, or as part of, the financing thereof) from time to time in the ordinary course of business and consistent with current practices of such Borrower or Guarantor and the precautionary UCC financing statement
filings in respect thereof; 
 (i) judgments and other similar liens arising in connection with court proceedings that do not
constitute an Event of Default; provided, that, (i) such liens are being contested in good faith and by appropriate proceedings diligently pursued, (ii) adequate reserves or other appropriate provision, if any, as are
required by GAAP have been made therefor, (iii) a stay of enforcement of any such liens is in effect and (iv) Agent may establish a Reserve with respect thereto; 

  
 76 

 (j) the security interests and liens in the Customer 2 Accounts in favor of Customer 2
Factoring Agent pursuant to the sales of Customer 2 Accounts under the Customer 2 Factoring Agent Discount Documents to the extent provided in, and in accordance with the terms and conditions of, Section 9.7(b)(vi) hereof; and 

(k) the security interests and liens set forth on Schedule 8.4 to the Information Certificate. 

9.9 Indebtedness. Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, incur, create, assume, become or
be liable in any manner with respect to, or permit to exist, any Indebtedness, or guarantee, assume, endorse, or otherwise become responsible for (directly or indirectly), the Indebtedness, performance, obligations or dividends of any other Person,
except: 
 (a) the Obligations; 
 (b) purchase money Indebtedness (including Capital Leases) arising after the date hereof to the extent secured by purchase money security interests in Equipment (including Capital Leases) and purchase
money mortgages on Real Property so long as such security interests and mortgages do not apply to any property of such Borrower, Guarantor or Subsidiary other than the Equipment or Real Property so acquired, and the Indebtedness secured thereby does
not exceed the cost of the Equipment or Real Property so acquired, as the case may be; 
 (c) guarantees by any Borrower or
Guarantor of the Obligations of the other Borrowers or Guarantors in favor of Agent for the benefit of Lenders and the other Secured Parties; 
 (d) the Indebtedness of any Borrower or Guarantor to any other Borrower or Guarantor arising after the date hereof pursuant to loans by any Borrower or Guarantor permitted under Section 9.10(g)
hereof; 
 (e) unsecured Indebtedness of any Borrower or Guarantor arising after the date hereof to any third person (but not to
any other Borrower or Guarantor) ; provided, that, each of the following conditions is satisfied as determined by Agent: (i) such Indebtedness shall be on terms and conditions acceptable to Agent and shall be subject and
subordinate in right of payment to the right of Agent and Lenders to receive the prior indefeasible payment and satisfaction in full payment of all of the Obligations pursuant to its terms or, if requested by Agent in its discretion, pursuant to the
terms of an intercreditor agreement between Agent and such third party, in form and substance reasonably satisfactory to Agent, (ii) Agent shall have received not less than ten (10) days prior written notice of the intention of such
Borrower or Guarantor to incur such Indebtedness, which notice shall set forth in reasonable detail satisfactory to Agent the amount of such Indebtedness, the person or persons to whom such Indebtedness will be owed, the interest rate, the schedule
of repayments and maturity date with respect thereto and such other information as Agent may request with respect thereto, (iii) Agent shall have received true, correct and complete copies of all agreements, documents and instruments evidencing
or otherwise related to such Indebtedness, (iv) except as Agent may otherwise agree in writing, all of the proceeds of the loans or other accommodations giving rise to such Indebtedness shall be paid to Agent for application to the Obligations
in such order and manner as Agent may determine or at Agent’s option, to be held as 

  
 77 

 
cash collateral for the Obligations, (v) in no event shall the aggregate principal amount of such Indebtedness incurred during the term of this Agreement exceed $500,000, (vi) such
Borrower and Guarantor shall not, directly or indirectly, (A) amend, modify, alter or change the terms of such Indebtedness or any agreement, document or instrument related thereto; except, that, such Borrower or Guarantor may,
after prior written notice to Agent, amend, modify, alter or change the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other than
pursuant to payments thereof), or to reduce the interest rate or any fees in connection therewith, or (B) redeem, retire, defease, purchase or otherwise acquire such Indebtedness (except pursuant to regularly scheduled payments permitted
herein), or set aside or otherwise deposit or invest any sums for such purpose, and (vii) Borrowers and Guarantors shall furnish to Agent all notices or demands in connection with such Indebtedness either received by any Borrower or Guarantor
or on its behalf promptly after the receipt thereof, or sent by any Borrower or Guarantor or on its behalf concurrently with the sending thereof, as the case may be; and 
 (f) the Indebtedness set forth on Schedule 9.9 to the Information Certificate; provided, that, (i) Borrowers and Guarantors may only make regularly scheduled payments of principal and
interest in respect of such Indebtedness in accordance with the terms of the agreement or instrument evidencing or giving rise to such Indebtedness as in effect on the date hereof, (ii) Borrowers and Guarantors shall not, directly or
indirectly, (A) amend, modify, alter or change the terms of such Indebtedness or any agreement, document or instrument related thereto as in effect on the date hereof; except, that, Borrowers and Guarantors may, after prior
written notice to Agent, amend, modify, alter or change the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in respect thereof, or to forgive or cancel any portion of such Indebtedness (other than pursuant to
payments thereof), or to reduce the interest rate or any fees in connection therewith, or (B) redeem, retire, defease, purchase or otherwise acquire such Indebtedness, or set aside or otherwise deposit or invest any sums for such purpose, and
(iii) Borrowers and Guarantors shall furnish to Agent all notices or demands in connection with such Indebtedness either received by any Borrower or Guarantor or on its behalf, promptly after the receipt thereof, or sent by any Borrower or
Guarantor or on its behalf, concurrently with the sending thereof, as the case may be. 
 9.10 Loans, Investments, Etc.
Each Borrower and Guarantor shall not, and shall not permit any Subsidiary to, directly or indirectly, make any loans or advance money or property to any person, or invest in (by capital contribution, dividend or otherwise) or purchase or repurchase
the Equity Interests or Indebtedness or all or a substantial part of the assets or property of any person (other than any Borrower or Guarantor as expressly permitted under Section 9.11(a) hereof), or form or acquire any Subsidiaries, or agree
to do any of the foregoing, except: 
 (a) the endorsement of instruments for collection or deposit in the ordinary course of
business; 
 (b) investments in cash or Cash Equivalents; provided, that, (i) no Loans are then outstanding
and (ii) the terms and conditions of Section 5.2 hereof shall have been satisfied with respect to the deposit account, investment account or other account in which such cash or Cash Equivalents are held; 

  
 78 

 (c) the existing equity investments of each Borrower and Guarantor as of the date hereof in
its Subsidiaries; provided, that, no Borrower or Guarantor shall have any further obligations or liabilities to make any capital contributions or other additional investments or other payments to or in or for the benefit of any of such
Subsidiaries; 
 (d) loans and advances by any Borrower or Guarantor to employees of such Borrower or Guarantor not to exceed
the principal amount of $250,000 in the aggregate at any time outstanding for: (i) reasonable and necessary work-related travel or other ordinary business expenses to be incurred by such employee in connection with their work for such Borrower
or Guarantor and (ii) reasonable and necessary relocation expenses of such employees (including home mortgage financing for relocated employees); 
 (e) stock or obligations issued to any Borrower or Guarantor by any Person (or the representative of such Person) in respect of Indebtedness of such Person owing to such Borrower or Guarantor in
connection with the insolvency, bankruptcy, receivership or reorganization of such Person or a composition or readjustment of the debts of such Person; provided, that, the original of any such stock or instrument evidencing such
obligations shall be promptly delivered to Agent, upon Agent’s request, together with such stock power, assignment or endorsement by such Borrower or Guarantor as Agent may request; 

(f) obligations of account debtors to any Borrower or Guarantor arising from Accounts which are past due evidenced by a promissory note
made by such account debtor payable to such Borrower or Guarantor; provided, that, promptly upon the receipt of the original of any such promissory note by such Borrower or Guarantor, such promissory note shall be endorsed to the order
of Agent by such Borrower or Guarantor and promptly delivered to Agent as so endorsed; 
 (g) loans by a Borrower or Guarantor
to another Borrower or Guarantor after the date hereof; provided, that: 
 (i) as to all of such loans,
(A) within thirty (30) days after the end of each fiscal month, Borrowers shall provide to Agent a report in form and substance reasonably satisfactory to Agent of the outstanding amount of such loans as of the last day of the immediately
preceding month and indicating any loans made and payments received during the immediately preceding month, (B) the Indebtedness arising pursuant to any such loan shall not be evidenced by a promissory note or other instrument, unless the
single original of such note or other instrument is promptly delivered to Agent upon its request to hold as part of the Collateral, with such endorsement and/or assignment by the payee of such note or other instrument as Agent may require,
(C) as of the date of any such loan and after giving effect thereto, the Borrower or Guarantor making such loan shall be Solvent, and (D) as of the date of any such loan and after giving effect thereto, no Default or Event of Default shall
exist or have occurred and be continuing, 
 (ii) as to loans by a Guarantor to a Borrower, (A) the Indebtedness arising
pursuant to such loan shall be subject to, and subordinate in right of payment to, the right of Agent and Lenders to receive the prior final payment and satisfaction in full of all of the Obligations on terms and conditions acceptable to Agent,
(B) promptly upon Agent’s request, Agent shall have received a subordination agreement, in form and substance reasonably satisfactory to Agent, providing for the terms of the subordination in right of payment of such Indebtedness of such

  
 79 

 
Borrower to the prior final payment and satisfaction in full of all of the Obligations, duly authorized, executed and delivered by such Guarantor and such Borrower, and (C) such Borrower
shall not, directly or indirectly make, or be required to make, any payments in respect of such Indebtedness prior to the end of the then current term of this Agreement, and 
 (iii) as to loans by a Borrower to a Guarantor or another Borrower, as of the date of any such loan and after giving effect thereto, (A) with respect to any such loans, Excess Availability shall be
not less than $7,500,000, and (B) the aggregate principal amount of all Loans by Borrowers to any Guarantor shall not exceed, at any one time outstanding, $100,000, and to all Guarantors shall not exceed, at any one time outstanding, $200,000;

 (h) the Series D Preferred Stock Conversion; 
 (i) the issuance of the Accrual Credits in accordance with the SPEARA as in effect on the date hereof and application thereof to pay for any portion of the exercise price of any outstanding Series D
Warrant; and 
 (j) the loans and advances set forth on Schedule 9.10 to the Information Certificate; provided,
that, as to such loans and advances, Borrowers and Guarantors shall not, directly or indirectly, amend, modify, alter or change the terms of such loans and advances or any agreement, document or instrument related thereto and Borrowers and
Guarantors shall furnish to Agent all notices or demands in connection with such loans and advances either received by any Borrower or Guarantor or on its behalf, promptly after the receipt thereof, or sent by any Borrower or Guarantor or on its
behalf, concurrently with the sending thereof, as the case may be; 
 9.11 Dividends and Redemptions. Each Borrower and
Guarantor shall not, directly or indirectly, declare or pay any dividends on account of any shares of any class of Equity Interests of such Borrower or Guarantor now or hereafter outstanding, or set aside or otherwise deposit or invest any sums for
such purpose, or redeem, retire, defease, purchase or otherwise acquire any shares of any class of Equity Interests (or set aside or otherwise deposit or invest any sums for such purpose) for any consideration or apply or set apart any sum, or make
any other distribution (by reduction of capital or otherwise) in respect of any such shares or agree to do any of the foregoing; except, that: 
 (a) any Borrower or Guarantor may (i) declare and pay such dividends or redeem, retire, defease, purchase or otherwise acquire any shares of any class of Equity Interests for consideration in the
form of shares of common stock, (ii) issue the Accrual Credit in accordance with the SPEARA as in effect on the date hereof and (iii) conduct the Series D Preferred Stock Conversion (so long as, in each case under this
Section 9.11(a), after giving effect thereto no Change of Control or other Default or Event of Default shall exist or occur); 
 (b) Borrowers and Guarantors may pay dividends to the extent permitted in Section 9.12 below; 
 (c) any Subsidiary of a Borrower or Guarantor may pay dividends to a Borrower; and 

(d) Borrowers and Guarantors may repurchase Equity Interests consisting of common stock held by employees pursuant to any employee stock
ownership plan thereof upon the termination, retirement or death of any such employee in accordance with the provisions of such 

  
 80 

 
plan; provided, that, as to any such repurchase, each of the following conditions is satisfied: (i) as of the date of the payment for such repurchase and after giving effect
thereto, no Default or Event of Default shall exist or have occurred and be continuing, (ii) such repurchase shall be paid with funds legally available therefor, (iii) such repurchase shall not violate any law or regulation or the terms of
any indenture, agreement or undertaking to which such Borrower or Guarantor is a party or by which such Borrower or Guarantor or its or their property are bound, and (iv) the aggregate amount of all payments for such repurchases in any calendar
year shall not exceed $250,000. 
 9.12 Transactions with Affiliates. Each Borrower and Guarantor shall not, directly or
indirectly: 
 (a) purchase, acquire or lease any property from, or sell, transfer or lease any property to, any officer,
director or other Affiliate of such Borrower or Guarantor, except in the ordinary course of and pursuant to the reasonable requirements of such Borrower’s or Guarantor’s business (as the case may be) and upon fair and reasonable terms no
less favorable to such Borrower or Guarantor than such Borrower or Guarantor would obtain in a comparable arm’s length transaction with an unaffiliated person; or 
 (b) make any payments (whether by dividend, loan or otherwise) of management, consulting or other fees for management or similar services, or of any Indebtedness owing to any officer, employee,
shareholder, director or any other Affiliate of such Borrower or Guarantor, except (i) reasonable compensation to officers, employees and directors for services rendered to such Borrower or Guarantor in the ordinary course of business;
(ii) regularly scheduled payments by Borrowers and Guarantors to Sponsor of the quarterly “Services Fees” (as defined in the Sponsor Management Agreement as in effect on the date hereof); provided, that, as of the date
of any payment of such management fee, and after giving effect thereto, no Default or Event of Default shall exist or have occurred; (iii) advances or payments to or for the benefit of Lighting Science Mexico in the ordinary course of business
for general operating, working capital and other proper corporate or limited liability company purposes (as applicable) of Lighting Science Mexico in an aggregate amount not to exceed (A) $500,000 in the aggregate from and after the date hereof
through and including December 31, 2010, (B) with respect to the fiscal year ending 2011, $250,000 during any fiscal month of Borrowers and Guarantors and (C) with respect to the fiscal year ending 2012 and for each fiscal year
thereafter, $250,000 (or such other amount agreed to by Agent in good faith and in exercise of reasonable (from the perspective of an asset based secured lender) business judgment) during any fiscal month of Borrowers and Guarantors;
(iv) advances or payments to or for the benefit of any Subsidiaries of Borrowers (other than Lighting Science Mexico and any Subsidiary of Borrowers that is a Guarantor) in the ordinary course of business for general operating, working capital
and other proper corporate or limited liability company purposes (as applicable) of such Subsidiaries in an aggregate amount not to exceed (A) with respect to the fiscal years ending 2010 and 2011, $250,000 during any fiscal month of Borrowers
and Guarantors, and (B) with respect to the fiscal year ending 2012 and for each fiscal year thereafter, $250,000 (or such other amount agreed to by Agent in good faith and in exercise of reasonable (from the perspective of an asset based
secured lender) business judgment) during any fiscal month of Borrowers and Guarantors; or (v) so long as a Borrower or Guarantor is treated as a flow-through entity for tax purposes, such Borrower or Guarantor may distribute to its parent, to
the extent actually payable by such parent to the applicable taxing authority, with respect to each taxable year an aggregate amount equal to the product of (A) the maximum combined federal and state income tax rate applicable to

  
 81 

 
corporations doing business in the state to which such parent allocates at least ten (10%) percent of its taxable income and which has the highest such rate (or the state in which such
parent allocates more income than any other state, if it doesn’t allocate at least ten (10%) percent of its taxable income to any state) multiplied by (B) the excess of the taxable income of such parent for such taxable year over the
taxable losses of such parent for all prior taxable years that have not previously been used to reduce taxable income pursuant to this clause (b)(iii). 
 9.13 Compliance with ERISA. Each Borrower and Guarantor shall, and shall cause each of its ERISA Affiliates to: (a) maintain each Plan in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal and State law; (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification; (c) not terminate any Pension Plan so as to incur any
material liability to the Pension Benefit Guaranty Corporation; (d) not allow or suffer to exist any prohibited transaction involving any Plan or any trust created thereunder which would subject such Borrower, Guarantor or such ERISA Affiliate
to a material tax or other liability on prohibited transactions imposed under Section 4975 of the Code or ERISA; (e) make all required contributions to any Plan which it is obligated to pay under Section 302 of ERISA, Section 412
of the Code or the terms of such Plan; (f) not allow or suffer to exist any accumulated funding deficiency, whether or not waived, with respect to any such Pension Plan; (g) not engage in a transaction that could be subject to
Section 4069 or 4212(c) of ERISA; or (h) not allow or suffer to exist any occurrence of a reportable event or any other event or condition which presents a material risk of termination by the Pension Benefit Guaranty Corporation of any
Plan that is a single employer plan, which termination could result in any material liability to the Pension Benefit Guaranty Corporation. 
 9.14 End of Fiscal Years; Fiscal Quarters. Each Borrower and Guarantor shall, for financial reporting purposes, cause its, and each of its Subsidiaries’ (a) fiscal years to end on
December 31 of each year and (b) fiscal quarters to end on March 31, June 30, September 30, and December 31 of each year. 
 9.15 Change in Business. Each Borrower and Guarantor shall not engage in any business other than the business of such Borrower or Guarantor on the date hereof and any business reasonably related,
ancillary or complimentary to the business in which such Borrower or Guarantor is engaged on the date hereof. 
 9.16
Limitation of Restrictions Affecting Subsidiaries. Each Borrower and Guarantor shall not, directly, or indirectly, create or otherwise cause or suffer to exist any encumbrance or restriction which prohibits or limits the ability of any
Subsidiary of such Borrower or Guarantor to (a) pay dividends or make other distributions or pay any Indebtedness owed to such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor; (b) make loans or advances to such
Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (c) transfer any of its properties or assets to such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor; or (d) create, incur, assume or suffer to
exist any lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than encumbrances and restrictions arising under (i) applicable law, (ii) this Agreement, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold interest of such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (iv) customary restrictions on dispositions of real property interests found in
reciprocal easement agreements of such Borrower or Guarantor or any Subsidiary of such Borrower or Guarantor, (v) any agreement relating to permitted Indebtedness incurred by a Subsidiary of such Borrower or

  
 82 

 
Guarantor prior to the date on which such Subsidiary was acquired by such Borrower or such Guarantor and outstanding on such acquisition date, and (vi) the extension or continuation of
contractual obligations in existence on the date hereof; provided, that, any such encumbrances or restrictions contained in such extension or continuation are no less favorable to Agent and Lenders than those encumbrances and
restrictions under or pursuant to the contractual obligations so extended or continued. 
 9.17 Financial Covenants.

 (a) Minimum EBITDA. Commencing with the fiscal month ending January 31, 2011, if a Financial Covenant Trigger
Event shall occur and is continuing, as of the end of each month commencing with the month immediately preceding the month in which a Financial Covenant Trigger Event occurs, Borrowers shall maintain, on a consolidated basis, EBITDA in an amount per
month equal to amount set forth on Schedule 9.17(a) hereto for the applicable period set forth opposite thereto. 
 (b)
Minimum Excess Availability. At all times, (i) if the Borrowing Base is less than the Maximum Credit, Borrowers and Guarantors shall maintain, on a consolidated basis, Excess Availability of not less than $4,000,000, and (ii) if the
Borrowing Base is greater than the Maximum Credit (such excess being the “Borrowing Base Excess”), Borrowers and Guarantors shall maintain, on a consolidated basis, Excess Availability of not less than an amount equal to $4,000,000 minus
the amount of Qualified Cash (up to the lesser of (A) the Borrowing Base Excess and (B) $4,000,000) included in the Borrowing Base for which no loans are outstanding. For the purposes of calculating minimum Excess Availability under this
Section 9.17(b) only, and not for any other purpose under this Agreement whatsoever, all Loans outstanding at any given time hereunder shall first be deemed to be Loans made against Eligible Accounts and Eligible Inventory and second against
Qualified Cash. 
 (c) Equity Cure Rights. Notwithstanding anything to the contrary contained in
Section 9.17(a) above, in the event that Borrowers, after the occurrence and during the continuance of a Financial Covenant Trigger Event, fail to comply with Section 9.17(a) for any applicable period set forth therein (each such period, a
“Testing Period”), so long as (i) not later than the earlier to occur of (A) five (5) Business Days after Agent has received the Compliance Certificate for the applicable Testing Period (the “Non-compliant Testing
Period”) or (B) the fifth (5th) Business
Day of the second (2nd) month immediately following
such Non-compliant Testing Period, Sponsor (or such other Person(s) designated in writing by Sponsor and satisfactory to Agent as determined in good faith and in exercise of reasonable (from the perspective of an asset based secured lender) business
judgment) shall have delivered to Agent a notice of its unconditional commitment to (1) provide additional cash contributions to Borrowers’ as equity capital, or (2) pledge to Agent, for itself and on behalf of the Secured Parties, as
collateral security for the Obligations (in each case, the “Cure Right”), the amount of not less than $5,000,000 (the “Cure Amount”), and (ii) not later than the earlier to occur of (A) ten (10) Business Days after
Agent has received the Compliance Certificate for the Non-compliant Testing Period or (B) the tenth
(10th) Business Day of the second (2nd) month immediately following such Non-compliant Testing Period
(the “Cure Standstill Period”), Sponsor (or such other Person(s) designated in writing and satisfactory to Agent as determined in good faith and in exercise of reasonable (from the perspective of an asset based secured lender) business

  
 83 

 
judgment) shall have (1) delivered to Agent evidence, reasonably satisfactory to Agent, that it has in fact funded additional cash contributions to Borrowers’ as equity capital in an
aggregate amount of not less than the Cure Amount, or (2) delivered to Agent the Cure Amount in cash or other immediately available funds, which Cure Amount shall be held by Agent in such account designated by Agent, together with such
documentation satisfactory to Agent supporting the grant to Agent of a first priority security interest in, and lien upon, the Cure Amount (including, without limitation, a limited recourse guarantee, cash collateral pledge agreement and such other
documents satisfactory to Agent), then the financial covenant contained in Section 9.17(a) shall be recalculated for the Non-compliant Testing Period and for each Testing Period that occurs during the twelve (12) months immediately
following the first (1st) day of the Non-compliant Testing Period (collectively, together with the Non-compliant Testing Period, the “Affected Testing Periods”) by giving effect to the following pro forma adjustments: 

1. EBITDA shall be increased on a dollar-for-dollar basis by the Cure Amount for each of the Affected Testing Periods solely for the
purpose of measuring compliance with Section 9.17(a) with respect to each of the Affected Testing Periods and not for any other purpose under this Agreement; and 
 2. if, after giving effect to the recalculation of EBITDA provided for in clause (A) immediately above, Borrowers shall then be in compliance with Section 9.17(a) for the Non-compliant Testing
Period, then Borrowers shall be deemed to have fully complied with Section 9.17(a) for the Non-compliant Testing Period with the same effect as though such non-compliance with respect to the Non-compliant Testing Period had not occurred, and
such non-compliance shall be deemed cured for the purposes of this Agreement (the “Equity Cure”). 
 Notwithstanding
the foregoing, (a) Borrowers and Sponsor (or such other Person(s) designated in writing by Sponsor and satisfactory to Agent as determined in good faith and in exercise of reasonable (from the perspective of an asset based secured lender)
business judgment) shall not be entitled to exercise the Cure Right on more than three (3) occasions during any calendar year of Borrowers, and (b) prior to the occurrence of an Equity Cure permitted hereunder with respect to any
Non-compliant Testing Period, Borrowers’ non-compliance with Section 9.17(a) shall in all events constitute an Event of Default hereunder, and Agent and Lenders shall, at any time from and after the expiration of the Cure Standstill
Period, be entitled to exercise any and all of their respective rights and remedies arising with respect to such Event of Default in accordance with the terms and conditions of this Agreement and the other Financing Agreements. Such rights and
remedies include, without limitation, the right to cease making any additional Loans or issuing, or arranging for the issuance of, Letters of Credit. 
 9.18 License Agreements. 
 (a) Each Borrower and Guarantor shall
(i) promptly and faithfully observe and perform all of the material terms, covenants, conditions and provisions of the material License Agreements to which it is a party to be observed and performed by it, at the times set forth therein, if
any, (ii) not do, permit, suffer or refrain from doing anything that could reasonably be expected to result in a default under or breach of any of the terms of any material License Agreement, (iii) not cancel, surrender, modify, amend,
waive or release any material License Agreement in any material respect or any term, provision or right of the licensee thereunder in any material respect, or consent to or 

  
 84 

 
permit to occur any of the foregoing; except, that, subject to Section 9.18(b) below, such Borrower or Guarantor may cancel, surrender or release any material License Agreement
in the ordinary course of the business of such Borrower or Guarantor; provided, that, such Borrower or Guarantor (as the case may be) shall give Agent not less than thirty (30) days prior written notice of its intention to so
cancel, surrender and release any such material License Agreement, (iv) give Agent prompt written notice of any material License Agreement entered into by such Borrower or Guarantor after the date hereof, together with a true, correct and
complete copy thereof and such other information with respect thereto as Agent may request, (v) give Agent prompt written notice of any material breach of any obligation, or any default, by any party under any material License Agreement, and
deliver to Agent (promptly upon the receipt thereof by such Borrower or Guarantor in the case of a notice to such Borrower or Guarantor and concurrently with the sending thereof in the case of a notice from such Borrower or Guarantor) a copy of each
notice of default and every other notice and other communication received or delivered by such Borrower or Guarantor in connection with any material License Agreement which relates to the right of such Borrower or Guarantor to continue to use the
property subject to such License Agreement, and (vi) furnish to Agent, promptly upon the request of Agent, such information and evidence as Agent may reasonably require from time to time concerning the observance, performance and compliance by
such Borrower or Guarantor or the other party or parties thereto with the material terms, covenants or provisions of any material License Agreement. 
 (b) Each Borrower and Guarantor will either exercise any option to renew or extend the term of each material License Agreement to which it is a party in such manner as will cause the term of such material
License Agreement to be effectively renewed or extended for the period provided by such option and give prompt written notice thereof to Agent or give Agent prior written notice that such Borrower or Guarantor does not intend to renew or extend the
term of any such material License Agreement or that the term thereof shall otherwise be expiring, not less than sixty (60) days prior to the date of any such non-renewal or expiration. In the event of the failure of such Borrower or Guarantor
to extend or renew any material License Agreement to which it is a party, Agent shall have, and is hereby granted, the irrevocable right and authority, at its option, to renew or extend the term of such material License Agreement, whether in its own
name and behalf, or in the name and behalf of a designee or nominee of Agent or in the name and behalf of such Borrower or Guarantor, as Agent shall determine at any time that an Event of Default shall exist or have occurred and be continuing. Agent
may, but shall not be required to, perform any or all of such obligations of such Borrower or Guarantor under any of the License Agreements, including, but not limited to, the payment of any or all sums due from such Borrower or Guarantor
thereunder. Any sums so paid by Agent shall constitute part of the Obligations. 
 9.19 Foreign Assets Control Regulations,
Etc. None of the requesting or borrowing of the Loans or the requesting or issuance, extension or renewal of any Letter of Credit or the use of the proceeds of any thereof will violate the Trading With the Enemy Act (50 USC §1 et seq., as
amended) (the “Trading With the Enemy Act”) or any of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”) or
any enabling legislation or executive order relating thereto (including, but not limited to (a) Executive order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public 

  
 85 

 
Law 107-56). None of Borrowers or any of their Subsidiaries or other Affiliates is or will become a “blocked person” as described in the Executive Order, the Trading with the Enemy Act
or the Foreign Assets Control Regulations or, to the best of their knowledge after due investigation, engages or will engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”. 

9.20 Costs and Expenses. Borrowers and Guarantors shall pay to Agent on demand all costs, expenses, filing fees and taxes paid or
payable in connection with the preparation, negotiation, execution, delivery, recording, syndication, administration, collection, liquidation, enforcement and defense of the Obligations, Agent’s rights in the Collateral, this Agreement, the
other Financing Agreements and all other documents related hereto or thereto, including any amendments, supplements or consents which may hereafter be contemplated (whether or not executed) or entered into in respect hereof and thereof, including:
(a) all costs and expenses of filing or recording (including Uniform Commercial Code financing statement filing taxes and fees, documentary taxes, intangibles taxes and mortgage recording taxes and fees, if applicable); (b) costs and
expenses and fees for insurance premiums, environmental audits, title insurance premiums, surveys, assessments, engineering reports and inspections, appraisal fees and search fees, background checks, costs and expenses of remitting loan proceeds,
collecting checks and other items of payment, and establishing and maintaining the Blocked Accounts, together with Agent’s customary charges and fees with respect thereto; (c) charges, fees or expenses charged by any Issuing Bank in
connection with any Letter of Credit; (d) costs and expenses of preserving and protecting the Collateral; (e) costs and expenses paid or incurred in connection with obtaining payment of the Obligations, enforcing the security interests and
liens of Agent, selling or otherwise realizing upon the Collateral, and otherwise enforcing the provisions of this Agreement and the other Financing Agreements or defending any claims made or threatened against Agent or any Lender arising out of the
transactions contemplated hereby and thereby (including preparations for and consultations concerning any such matters); (f) all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred by Agent during the course of
periodic field examinations of the Collateral and such Borrower’s or Guarantor’s operations, plus a charge at Agent’s then standard rate for Agent’s examiners in the field and office (which rate as of the date hereof is $125 per
person per hour); and (g) the fees and disbursements of counsel (including legal assistants) to Agent in connection with any of the foregoing. 
 9.21 Further Assurances. At the request of Agent at any time and from time to time, Borrowers and Guarantors shall, at their expense, duly execute and deliver, or cause to be duly executed and
delivered, such further agreements, documents and instruments, and do or cause to be done such further acts as may be necessary or proper to evidence, perfect, maintain and enforce the security interests and the priority thereof in the Collateral
and to otherwise effectuate the provisions or purposes of this Agreement or any of the other Financing Agreements. Agent may at any time and from time to time request a certificate from an officer of any Borrower or Guarantor representing that all
conditions precedent to the making of Loans and providing Letters of Credit contained herein are satisfied. In the event of such request by Agent, Agent and Lenders may, at Agent’s option, cease to make any further Loans or provide any further
Letters of Credit until Agent has received such certificate and, in addition, Agent has determined that such conditions are satisfied. 

  
 86 

 SECTION 10. EVENTS OF DEFAULT AND REMEDIES 

10.1 Events of Default. The occurrence or existence of any one or more of the following events are referred to herein individually
as an “Event of Default”, and collectively as “Events of Default”: 
 (a) (i) any Borrower fails to pay any
of the Obligations when due or (ii) any Borrower or Guarantor fails to perform any of the covenants contained in Sections 9.13, 9.14, 9.15, and 9.16 of this Agreement and such failure shall continue for ten (10) days; provided,
that, such ten (10) day period shall not apply in the case of: (A) any failure to observe any such covenant which is not capable of being cured at all or within such ten (10) day period or which has been the subject of a prior
failure within a six (6) month period or (B) an intentional breach by any Borrower or Guarantor of any such covenant or (iii) any Borrower or Guarantor fails to perform any of the terms, covenants, conditions or provisions contained
in this Agreement or any of the other Financing Agreements other than those described in Sections 10.1(a)(i) and 10.1(a)(ii) above and such failure shall continue for thirty (30) days; 

(b) any representation, warranty or statement of fact made by any Borrower or Guarantor to Agent in this Agreement, the other Financing
Agreements or any other written agreement, schedule, confirmatory assignment or otherwise shall when made or deemed made be false or misleading in any material respect; 
 (c) any Guarantor revokes or terminates or purports to revoke or terminate or fails to perform any of the terms, covenants, conditions or provisions of any guarantee, endorsement or other agreement of
such party in favor of Agent or any Lender; 
 (d) any judgment for the payment of money is rendered against any Borrower or
Guarantor in excess of $250,000 in any one case or in excess of $500,000 in the aggregate (to the extent not covered by insurance where the insurer has assumed responsibility in writing for such judgment) and shall remain undischarged or unvacated
for a period in excess of forty-five (45) days or execution shall at any time not be effectively stayed, or any judgment other than for the payment of money, or injunction, attachment, garnishment or execution is rendered against any Borrower
or Guarantor or any of the Collateral having a value in excess of $250,000; 
 (e) any Guarantor (being a natural person or a
general partner of an Guarantor which is a partnership) dies or any Borrower or Guarantor, which is a partnership, limited liability company, limited liability partnership or a corporation, dissolves or suspends or discontinues doing business;

 (f) any Borrower or Guarantor makes an assignment for the benefit of creditors, makes or sends notice of a bulk transfer or
calls a meeting of its creditors or principal creditors in connection with a moratorium or adjustment of the Indebtedness due to them; 
 (g) a case or proceeding under the bankruptcy laws of the United States of America now or hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction now or hereafter in effect (whether at law or in equity) is filed against any Borrower or Obligor or all or any part of its properties and such petition or application is not dismissed within forty-five
(45) days after the date of its filing or any Borrower or Obligor shall file any answer admitting or not contesting such petition or application or indicates its consent to, acquiescence in or approval of, any such action or proceeding or the
relief requested is granted sooner; 

  
 87 

 (h) a case or proceeding under the bankruptcy laws of the United States of America now or
hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at a law or equity) is filed by any Borrower or
Obligor or for all or any part of its property; 
 (i) any default in respect of any Indebtedness of any Borrower or Obligor
(other than Indebtedness owing to Agent and Lenders hereunder), in any case in an amount in excess of $250,000, which default continues for more than the applicable cure period, if any, with respect thereto or any default by any Borrower or Obligor
under any Material Contract (other than any Fill Rate Contract), which default continues for more than the applicable cure period, if any, with respect thereto and/or is not waived in writing by the other parties thereto, which default permits the
other party thereto to terminate such Material Contract prior to its stated termination date; 
 (j) with respect to any Fill
Rate Contract, Agent shall have notified Administrative Borrower in writing that an Event of Default exists as a result of: (i) the receipt by any Borrower or Guarantor of notification of any default or breach in respect of any “fill”
obligations under any Fill Rate Contract or receipt of notification terminating or purporting to terminate any Fill Rate Contract, or (ii) the offset or taking by any Person party to a Fill Rate Contract of any credit, discount or reduction of
any order or invoice price as a result of any default or breach of any “fill” obligations under any Fill Rate Contract; 
 (k) any material provision hereof or of any of the other Financing Agreements shall for any reason cease to be valid, binding and enforceable with respect to any party hereto or thereto (other than Agent)
in accordance with its terms, or any such party shall challenge the enforceability hereof or thereof, or shall assert in writing, or take any action or fail to take any action based on the assertion that any provision hereof or of any of the other
Financing Agreements has ceased to be or is otherwise not valid, binding or enforceable in accordance with its terms, or any security interest provided for herein or in any of the other Financing Agreements shall cease to be a valid and perfected
first priority security interest in any of the Collateral purported to be subject thereto (except as otherwise permitted herein or therein); 
 (l) there shall occur an ERISA Event; 
 (m) there shall occur a Change of Control;

 (n) the indictment by any Governmental Authority, or as Agent may reasonably and in good faith determine, the threatened
indictment by any Governmental Authority of any Borrower or Guarantor of which any Borrower, Guarantor or Agent receives notice, in either case, as to which there is a reasonable possibility of an adverse determination, in the good faith
determination of Agent, under any criminal statute, or commencement or threatened commencement of criminal or civil proceedings against such Borrower or Guarantor, pursuant to which statute or proceedings the penalties or remedies sought or
available include forfeiture of (i) any of the Collateral having a value in excess of $200,000 or (ii) any other property of any Borrower or Guarantor which is necessary or material to the conduct of its business; 

  
 88 

 (o) there shall occur a Material Adverse Effect; or 

(p) there shall be an event of default (after giving effect to any applicable grace periods) under any of the other Financing Agreements.

 10.2 Remedies. 
 (a) At any time an Event of Default exists or has occurred and is continuing, Agent and Lenders shall have all rights and remedies provided in this Agreement, the other Financing Agreements, the UCC and
other applicable law, all of which rights and remedies may be exercised without notice to or consent by any Borrower or Obligor, except as such notice or consent is expressly provided for hereunder or required by applicable law. All rights, remedies
and powers granted to Agent and Lenders hereunder, under any of the other Financing Agreements, the UCC or other applicable law, are cumulative, not exclusive and enforceable, in Agent’s discretion, alternatively, successively, or concurrently
on any one or more occasions, and shall include, without limitation, the right to apply to a court of equity for an injunction to restrain a breach or threatened breach by any Borrower or Obligor of this Agreement or any of the other Financing
Agreements. Subject to Section 12 hereof, Agent may, and at the direction of the Required Lenders shall, at any time or times, proceed directly against any Borrower or Obligor to collect the Obligations without prior recourse to the Collateral.
Without limiting the generality of the foregoing, Borrowers and Guarantors hereby expressly acknowledge, confirm and agree that the declaration of an Event of Default under Section 10.1(j) above shall be in the sole and absolute discretion of
Agent, and any delay or passage of time in the declaration by Agent of such Event of Default shall not prejudice or otherwise affect the right of Agent to declare such Event of Default at any time after the occurrence of such events giving rise to
an Event of Default under Section 10.1(j) above. 
 (b) Without limiting the generality of the foregoing, at any time an
Event of Default exists or has occurred and is continuing, Agent may, at its option and shall upon the direction of the Required Lenders, (i) upon notice to Administrative Borrower, accelerate the payment of all Obligations and demand immediate
payment thereof to Agent for itself and the benefit of Lenders (provided, that, upon the occurrence of any Event of Default described in Sections 10.1(g) and 10.1(h), all Obligations shall automatically become immediately due and
payable), and (ii) terminate the Commitments whereupon the obligation of each Lender to make any Loan and Issuing Bank to issue any Letter of Credit shall immediately terminate (provided, that, upon the occurrence of any Event of
Default described in Sections 10.1(g) and 10.1(h), the Commitments and any other obligation of the Agent or a Lender hereunder shall automatically terminate). 
 (c) Without limiting the foregoing, at any time an Event of Default exists or has occurred and is continuing, Agent may, in its discretion (i) with or without judicial process or the aid or
assistance of others, enter upon any premises on or in which any of the Collateral may be located and take possession of the Collateral or complete processing, manufacturing and repair of all or any portion of the Collateral, (ii) require any
Borrower or Guarantor, at Borrowers’ expense, to assemble and make available to Agent any part or all of the Collateral at any place and time designated by Agent, (iii) collect, foreclose, receive, appropriate, setoff and realize upon any
and all Collateral, (iv) remove any or all of the Collateral from any premises on or in which the same may be located for the purpose of effecting the sale, foreclosure or other disposition thereof or for any other purpose, (v) sell,
lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including entering 

  
 89 

 
into contracts with respect thereto, public or private sales at any exchange, broker’s board, at any office of Agent or elsewhere) at such prices or terms as Agent may deem reasonable, for
cash, upon credit or for future delivery, with the Agent having the right to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from any right or equity of redemption of any Borrower or
Guarantor, which right or equity of redemption is hereby expressly waived and released by Borrowers and Guarantors and/or (vi) terminate this Agreement. If any of the Collateral is sold or leased by Agent upon credit terms or for future
delivery, the Obligations shall not be reduced as a result thereof until payment therefor is finally collected by Agent. If notice of disposition of Collateral is required by law, ten (10) days prior notice by Agent to Administrative Borrower
designating the time and place of any public sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be reasonable notice thereof and Borrowers and Guarantors waive any other
notice. In the event Agent institutes an action to recover any Collateral or seeks recovery of any Collateral by way of prejudgment remedy, each Borrower and Guarantor waives the posting of any bond which might otherwise be required. At any time an
Event of Default exists or has occurred and is continuing, upon Agent’s request, Borrowers will either, as Agent shall specify, furnish cash collateral to Issuing Bank to be used to secure and fund the reimbursement obligations to Issuing Bank
in connection with any Letter of Credit Obligations or furnish cash collateral to Agent for the Letter of Credit Obligations. Such cash collateral shall be in the amount equal to one hundred five (105%) percent of the amount of the Letter of
Credit Obligations plus the amount of any fees and expenses payable in connection therewith through the end of the latest expiration date of the Letters of Credit giving rise to such Letter of Credit Obligations. 

(d) At any time or times that an Event of Default exists or has occurred and is continuing, Agent may, in its discretion, enforce the
rights of any Borrower or Guarantor against any account debtor, secondary obligor or other obligor in respect of any of the Accounts or other Receivables. Without limiting the generality of the foregoing, Agent may, in its discretion, at such time
or times (i) notify any or all account debtors, secondary obligors or other obligors in respect thereof that the Receivables have been assigned to Agent and that Agent has a security interest therein and Agent may direct any or all account
debtors, secondary obligors and other obligors to make payment of Receivables directly to Agent, (ii) extend the time of payment of, compromise, settle or adjust for cash, credit, return of merchandise or otherwise, and upon any terms or
conditions, any and all Receivables or other obligations included in the Collateral and thereby discharge or release the account debtor or any secondary obligors or other obligors in respect thereof without affecting any of the Obligations,
(iii) demand, collect or enforce payment of any Receivables or such other obligations, but without any duty to do so, and Agent and Lenders shall not be liable for any failure to collect or enforce the payment thereof nor for the negligence of
its agents or attorneys with respect thereto and (iv) take whatever other action Agent may deem necessary or desirable for the protection of its interests and the interests of Lenders. At any time that an Event of Default exists or has occurred
and is continuing, at Agent’s request, all invoices and statements sent to any account debtor shall state that the Accounts and such other obligations have been assigned to Agent and are payable directly and only to Agent and Borrowers and
Guarantors shall deliver to Agent such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise to any Accounts as Agent may require. In the event any account debtor returns Inventory when an Event
of Default exists or has occurred and is continuing, Borrowers shall, upon Agent’s request, hold the returned Inventory in trust for Agent, segregate all returned Inventory from all of its other property, dispose of the returned Inventory
solely according to Agent’s instructions, and not issue any credits, discounts or allowances with respect thereto without Agent’s prior written consent. 

  
 90 

 (e) To the extent that applicable law imposes duties on Agent or any Lender to exercise
remedies in a commercially reasonable manner (which duties cannot be waived under such law), each Borrower and Guarantor acknowledges and agrees that it is not commercially unreasonable for Agent or any Lender (i) to fail to incur expenses
reasonably deemed significant by Agent or any Lender to prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third
party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain consents of any Governmental Authority or other third party for the collection or disposition of Collateral to be collected
or disposed of, (iii) to fail to exercise collection remedies against account debtors, secondary obligors or other persons obligated on Collateral or to remove liens or encumbrances on or any adverse claims against Collateral, (iv) to
exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications
or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other persons, whether or not in the same business as any Borrower or Guarantor, for expressions of interest in acquiring all or any
portion of the Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets,
(x) to disclaim disposition warranties, (xi) to purchase insurance or credit enhancements to insure Agent or Lenders against risks of loss, collection or disposition of Collateral or to provide to Agent or Lenders a guaranteed return from
the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist Agent in the collection or disposition
of any of the Collateral. Each Borrower and Guarantor acknowledges that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Agent or any Lender would not be commercially unreasonable in the exercise
by Agent or any Lender of remedies against the Collateral and that other actions or omissions by Agent or any Lender shall not be deemed commercially unreasonable solely on account of not being indicated in this Section. Without limitation of the
foregoing, nothing contained in this Section shall be construed to grant any rights to any Borrower or Guarantor or to impose any duties on Agent or Lenders that would not have been granted or imposed by this Agreement or by applicable law in the
absence of this Section. 
 (f) For the purpose of enabling Agent to exercise the rights and remedies hereunder, each Borrower
and Guarantor hereby grants to Agent, to the extent assignable, an irrevocable, non-exclusive license (exercisable at any time an Event of Default shall exist or have occurred and for so long as the same is continuing) without payment of royalty or
other compensation to any Borrower or Guarantor, to use, assign, license or sublicense any of the trademarks, service-marks, tradenames, business names, trade styles, designs, logos and other source of business identifiers and other Intellectual
Property and general intangibles now owned or hereafter acquired by any Borrower or Guarantor, wherever the same maybe located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and
to all computer programs used for the compilation or printout thereof. 

  
 91 

 (g) At any time an Event of Default exists or has occurred and is continuing, Agent may
apply the cash proceeds of Collateral actually received by Agent from any sale, lease, foreclosure or other disposition of the Collateral to payment of the Obligations, in whole or in part and in accordance with the terms hereof, whether or not then
due or may hold such proceeds as cash collateral for the Obligations. Borrowers and Guarantors shall remain liable to Agent and Lenders for the payment of any deficiency with interest at the highest rate provided for herein and all costs and
expenses of collection or enforcement, including reasonably attorneys’ fees and expenses. 
 (h) Without limiting the
foregoing, upon the occurrence of a Default or an Event of Default, (i) Agent and Lenders may, at Agent’s option, and upon the occurrence of an Event of Default at the direction of the Required Lenders, Agent and Lenders shall, without
notice, (A) cease making Loans or arranging for Letters of Credit or reduce the lending formulas or amounts of Loans and Letters of Credit available to Borrowers and/or (B) terminate any provision of this Agreement providing for any future
Loans to be made by Agent and Lenders or Letters of Credit to be issued by Issuing Bank and (ii) Agent may, at its option, establish such Reserves as Agent determines, without limitation or restriction, notwithstanding anything to the contrary
contained herein. 
 SECTION 11. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW  

11.1 Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver. 

(a) The validity, interpretation and enforcement of this Agreement and the other Financing Agreements (except as otherwise provided
therein) and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or
other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York. 

(b) Borrowers, Guarantors, Agent, Lenders and Issuing Bank irrevocably consent and submit to the non-exclusive jurisdiction of the
Supreme Court of the State of New York for the County of New York and the United States District Court for the Southern District of New York, whichever Lender may elect, and waive any objection based on venue or forum non
conveniens with respect to any action instituted therein arising under this Agreement or any of the other Financing Agreements or in any way connected with or related or incidental to the dealings of the parties hereto in respect of this
Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to
any such matters shall be heard only in the courts described above (except, that, Agent and Lenders shall have the right to bring any action or proceeding against any Borrower or Guarantor or its or their property in the courts of any
other jurisdiction which Agent deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce its rights against any Borrower or Guarantor or its or their property). 

(c) Each Borrower and Guarantor hereby waives personal service of any and all process upon it and consents that all such service of
process may be made by certified mail (return receipt requested) directed to its address set forth herein and service so made shall be deemed to be completed five (5) days after the same shall have been so deposited in the U.S. mails, or, at
Agent’s 

  
 92 

 
option, by service upon any Borrower or Guarantor (or Administrative Borrower on behalf of such Borrower or Guarantor) in any other manner provided under the rules of any such courts. Within
thirty (30) days after such service, such Borrower or Guarantor shall appear in answer to such process, failing which such Borrower or Guarantor shall be deemed in default and judgment may be entered by Agent against such Borrower or Guarantor
for the amount of the claim and other relief requested. 
 (d) BORROWERS, GUARANTORS, AGENT, LENDERS AND ISSUING BANK EACH
HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWERS,
GUARANTORS, AGENT, LENDERS AND ISSUING BANK EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY BORROWER, ANY GUARANTOR, AGENT, ANY LENDER OR ISSUING BANK
MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

(e) Agent, Lenders and Issuing Bank shall not have any liability to any Borrower or Guarantor (whether in tort, contract, equity or
otherwise) for losses suffered by such Borrower or Guarantor in connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Agreement, or any act, omission or event occurring in connection
herewith, unless it is determined by a final and non-appealable judgment or court order binding on Agent, such Lender and Issuing Bank, that the losses were the result of acts or omissions constituting gross negligence or willful misconduct. In any
such litigation, Agent, Lenders and Issuing Bank shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Agreement. Each Borrower
and Guarantor: (i) certifies that neither Agent, any Lender, Issuing Bank nor any representative, agent or attorney acting for or on behalf of Agent, any Lender or Issuing Bank has represented, expressly or otherwise, that Agent, Lenders and
Issuing Bank would not, in the event of litigation, seek to enforce any of the waivers provided for in this Agreement or any of the other Financing Agreements and (ii) acknowledges that in entering into this Agreement and the other Financing
Agreements, Agent, Lenders and Issuing Bank are relying upon, among other things, the waivers and certifications set forth in this Section 11.1 and elsewhere herein and therein. 

11.2 Waiver of Notices. Each Borrower and Guarantor hereby expressly waives demand, presentment, protest and notice of protest and
notice of dishonor with respect to any and all instruments and chattel paper, included in or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of any kind or nature whatsoever with respect to the
Obligations, the Collateral and this Agreement, except such as are expressly provided for herein. No notice to or demand on any Borrower or Guarantor which Agent or any Lender may elect to give shall entitle such Borrower or Guarantor to any other
or further notice or demand in the same, similar or other circumstances. 

  
 93 

 11.3 Amendments and Waivers. 

(a) Neither this Agreement nor any other Financing Agreement nor any terms hereof or thereof may be amended, waived, discharged or
terminated unless such amendment, waiver, discharge or termination is in writing signed by Agent and the Required Lenders or at Agent’s option, by Agent with the authorization or consent of the Required Lenders, and as to amendments to any of
the Financing Agreements (other than with respect to any provision of Section 12 hereof), by any Borrower and such amendment, waiver, discharge or termination shall be effective and binding as to all Lenders and Issuing Bank only in the
specific instance and for the specific purpose for which given; except, that, no such amendment, waiver, discharge or termination shall: 
 (i) reduce the interest rate or any fees or extend the time of payment of principal, interest or any fees or reduce the principal amount of any Loan or Letters of Credit, in each case without the consent
of each Lender directly affected thereby, 
 (ii) increase the Commitment of any Lender over the amount thereof then in effect
or provided hereunder, in each case without the consent of the Lender directly affected thereby, 
 (iii) release any Collateral
(except as expressly required hereunder or under any of the other Financing Agreements or applicable law and except as permitted under Section 12.11(b) hereof), without the consent of Agent and all of Lenders, 

(iv) reduce any percentage specified in the definition of Required Lenders, without the consent of Agent and all of Lenders, 

(v) consent to the assignment or transfer by any Borrower or Guarantor of any of their rights and obligations under this Agreement,
without the consent of Agent and all of Lenders, 
 (vi) amend, modify or waive any terms of this Section 11.3 hereof,
without the consent of Agent and all of Lenders, or 
 (vii) increase the advance rates constituting part of the Borrowing Base
or increase the Inventory Loan Limit or the Letter of Credit Limit, without the consent of Agent and all of Lenders. 
 (b)
Agent, Lenders and Issuing Bank shall not, by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its or their rights, powers and/or remedies unless such waiver shall be in writing and signed as provided
herein. Any such waiver shall be enforceable only to the extent specifically set forth therein. A waiver by Agent, any Lender or Issuing Bank of any right, power and/or remedy on any one occasion shall not be construed as a bar to or waiver of any
such right, power and/or remedy which Agent, any Lender or Issuing Bank would otherwise have on any future occasion, whether similar in kind or otherwise. 
 (c) Notwithstanding anything to the contrary contained in Section 11.3(a) above, in connection with any amendment, waiver, discharge or termination, in the event that any Lender

  
 94 

 
whose consent thereto is required shall fail to consent or fail to consent in a timely manner (such Lender being referred to herein as a “Non-Consenting Lender”), but the consent of any
other Lenders to such amendment, waiver, discharge or termination that is required are obtained, if any, then Wells Fargo or, so long as no Event of Default has occurred and is continuing, Administrative Borrower, shall have the right, but not the
obligation, at any time thereafter, and upon the exercise by Wells Fargo or, so long as no Event of Default has occurred and is continuing, Administrative Borrower, as applicable, of such right, such Non-Consenting Lender shall have the obligation,
to sell, assign and transfer to Wells Fargo or such Eligible Transferee as Wells Fargo or, so long as no Event of Default has occurred and is continuing, Administrative Borrower, as applicable, may specify, the Commitment of such Non-Consenting
Lender and all rights and interests of such Non-Consenting Lender pursuant thereto. Wells Fargo or, so long as no Event of Default has occurred and is continuing, Administrative Borrower, as applicable, shall provide the Non-Consenting Lender with
prior written notice of its intent to exercise its right under this Section, which notice shall specify on date on which such purchase and sale shall occur. Such purchase and sale shall be pursuant to the terms of an Assignment and Acceptance
(whether or not executed by the Non-Consenting Lender); except, that, on the date of such purchase and sale, Wells Fargo, or such Eligible Transferee specified by Wells Fargo or, so long as no Event of Default has occurred and is
continuing, Administrative Borrower, as applicable, shall pay to the Non-Consenting Lender (except as Wells Fargo or, so long as no Event of Default has occurred and is continuing, Administrative Borrower, as applicable, and such Non-Consenting
Lender may otherwise agree) the amount equal to: (i) the principal balance of the Loans held by the Non-Consenting Lender outstanding as of the close of business on the business day immediately preceding the effective date of such purchase and
sale, plus (ii) amounts accrued and unpaid in respect of interest and fees payable to the Non-Consenting Lender to the effective date of the purchase (but in no event shall the Non-Consenting Lender be deemed entitled to any early
termination fee), minus (iii) the amount of the closing fee received by the Non-Consenting Lender pursuant to the terms hereof or of any of the other Financing Agreements multiplied by the fraction, the numerator of which is the number
of months remaining in the then current term of the Credit Facility and the denominator of which is the number of months in the then current term thereof. Such purchase and sale shall be effective on the date of the payment of such amount to the
Non-Consenting Lender and the Commitment of the Non-Consenting Lender shall terminate on such date. 
 (d) The consent of Agent
shall be required for any amendment, waiver or consent affecting the rights or duties of Agent hereunder or under any of the other Financing Agreements, in addition to the consent of the Lenders otherwise required by this Section and the exercise by
Agent of any of its rights hereunder with respect to Reserves or Eligible Accounts or Eligible Inventory shall not be deemed an amendment to the advance rates provided for in this Section 11.3. The consent of Issuing Bank shall be required for
any amendment, waiver or consent affecting the rights or duties of Issuing Bank hereunder or under any of the other Financing Agreements, in addition to the consent of the Lenders otherwise required by this Section; provided, that, the
consent of Issuing Bank shall not be required for any other amendments, waivers or consents. Notwithstanding anything to the contrary contained in Section 11.3(a) above, (i) in the event that Agent shall agree that any items otherwise
required to be delivered to Agent as a condition of the initial Loans and Letters of Credit hereunder may be delivered after the date hereof, Agent may, in its discretion, agree to extend the date for delivery of such items or take such other action
as Agent may deem appropriate as a result of the failure to receive such items as Agent may determine or may waive any Event of Default as a result of the failure to receive such items, in each case without the consent of

  
 95 

 
any Lender and (ii) Agent may consent to any change in the type of organization, jurisdiction of organization or other legal structure of any Borrower, Guarantor or any of their Subsidiaries
and amend the terms hereof or of any of the other Financing Agreements as may be necessary or desirable to reflect any such change, in each case without the approval of any Lender. 

(e) The consent of Agent and a Bank Product Provider that is providing Bank Products and has outstanding any such Bank Products at such
time that are secured hereunder shall be required for any amendment to the priority of payment of Obligations arising under or pursuant to any Hedge Agreements of a Borrower or a Guarantor or other Bank Products as set forth in Section 6.4(a)
hereof. 
 11.4 Waiver of Counterclaims. Each Borrower and Guarantor waives all rights to interpose any claims,
deductions, setoffs or counterclaims of any nature (other then compulsory counterclaims) in any action or proceeding with respect to this Agreement, the Obligations, the Collateral or any matter arising therefrom or relating hereto or thereto.

 11.5 Indemnification. Each Borrower and Guarantor shall, jointly and severally, indemnify and hold Agent, each Lender
and Issuing Bank, and their respective officers, directors, agents, employees, advisors and counsel and their respective Affiliates (each such person being an “Indemnitee”), harmless from and against any and all losses, claims, damages,
liabilities, costs or expenses (including reasonably attorneys’ fees and expenses) imposed on, incurred by or asserted against any of them in connection with any litigation, investigation, claim or proceeding commenced or threatened related to
the negotiation, preparation, execution, delivery, enforcement, performance or administration of this Agreement, any other Financing Agreements, or any undertaking or proceeding related to any of the transactions contemplated hereby or any act,
omission, event or transaction related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses of counsel; except, that, Borrowers and Guarantors shall not have any obligation under this
Section 11.5 to indemnify an Indemnitee with respect to a matter covered hereby resulting from the gross negligence or willful misconduct of such Indemnitee as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction (but without limiting the obligations of Borrowers or Guarantors as to any other Indemnitee). To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any
law or public policy, Borrowers and Guarantors shall pay the maximum portion which it is permitted to pay under applicable law to Agent and Lenders in satisfaction of indemnified matters under this Section. To the extent permitted by applicable law,
no Borrower or Guarantor shall assert, and each Borrower and Guarantor hereby waives, any claim against any Indemnitee, 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 Agreement, any of the other Financing Agreements or any undertaking or transaction contemplated hereby. No Indemnitee referred to above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or any of the other Financing Agreements or the
transaction contemplated hereby or thereby. All amounts due under this Section shall be payable upon demand. The foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal of this Agreement. 

  
 96 

 SECTION 12. THE AGENT 

12.1 Appointment, Powers and Immunities. Each Lender and Issuing Bank irrevocably designates, appoints and authorizes Wells Fargo
to act as Agent hereunder and under the other Financing Agreements with such powers as are specifically delegated to Agent by the terms of this Agreement and of the other Financing Agreements, together with such other powers as are reasonably
incidental thereto. Agent (a) shall have no duties or responsibilities except those expressly set forth in this Agreement and in the other Financing Agreements, and shall not by reason of this Agreement or any other Financing Agreement be a trustee
or fiduciary for any Lender; (b) shall not be responsible to Lenders for any recitals, statements, representations or warranties contained in this Agreement or in any of the other Financing Agreements, or in any certificate or other document
referred to or provided for in, or received by any of them under, this Agreement or any other Financing Agreement, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Financing
Agreement or any other document referred to or provided for herein or therein or for any failure by any Borrower or any Guarantor or any other Person to perform any of its obligations hereunder or thereunder; and (c) shall not be responsible to
Lenders for any action taken or omitted to be taken by it hereunder or under any other Financing Agreement or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith, except for its
own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Agent may employ agents and attorneys in fact and shall not be responsible for the negligence or misconduct of any such
agents or attorneys in fact selected by it in good faith. Agent may deem and treat the payee of any note as the holder thereof for all purposes hereof unless and until the assignment thereof pursuant to an agreement (if and to the extent permitted
herein) in form and substance reasonably satisfactory to Agent shall have been delivered to and acknowledged by Agent. 
 12.2
Reliance by Agent. Agent shall be entitled to rely upon any certification, notice or other communication (including any thereof by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have been signed
or sent by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by Agent. As to any matters not expressly provided for by this Agreement or any other
Financing Agreement, Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Required Lenders or all of Lenders as is required in such circumstance,
and such instructions of such Lenders and any action taken or failure to act pursuant thereto shall be binding on all Lenders. 

12.3 Events of Default. 
 (a) Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or an Event of Default or other failure of a condition precedent to the Loans and Letters of Credit hereunder,
unless and until Agent has received written notice from a Lender, or Borrower specifying such Event of Default or any unfulfilled condition precedent, and stating that such notice is a “Notice of Default or Failure of Condition”. In the
event that Agent receives such a Notice of Default or Failure of Condition, Agent shall give prompt notice thereof to the Lenders. Agent shall (subject to Section 12.7) take such action with respect to any such Event of Default or failure of
condition precedent as shall be directed by the Required Lenders to the extent provided for herein; provided, that, unless and until Agent shall have received such directions, Agent may (but shall not be

  
 97 

 
obligated to) take such action, or refrain from taking such action, with respect to or by reason of such Event of Default or failure of condition precedent, as it shall deem advisable in the best
interest of Lenders. Without limiting the foregoing, and notwithstanding the existence or occurrence and continuance of an Event of Default or any other failure to satisfy any of the conditions precedent set forth in Section 4 of this Agreement
to the contrary, unless and until otherwise directed by the Required Lenders, Agent may, but shall have no obligation to, continue to make Loans and Issuing Bank may, but shall have no obligation to, issue or cause to be issued any Letter of Credit
for the ratable account and risk of Lenders from time to time if Agent believes making such Loans or issuing or causing to be issued such Letter of Credit is in the best interests of Lenders. 

(b) Except with the prior written consent of Agent, no Lender or Issuing Bank may assert or exercise any enforcement right or remedy in
respect of the Loans, Letter of Credit Obligations or other Obligations, as against any Borrower or Guarantor or any of the Collateral or other property of any Borrower or Guarantor. 

12.4 Wells Fargo in its Individual Capacity. With respect to its Commitment and the Loans made and Letters of Credit issued or
caused to be issued by it (and any successor acting as Agent), so long as Wells Fargo shall be a Lender hereunder, it shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as
Agent, and the term “Lender” or “Lenders” shall, unless the context otherwise indicates, include Wells Fargo in its individual capacity as Lender hereunder. Wells Fargo (and any successor acting as Agent) and its Affiliates may
(without having to account therefor to any Lender) lend money to, make investments in and generally engage in any kind of business with Borrowers (and any of its Subsidiaries or Affiliates) as if it were not acting as Agent, and Wells Fargo and its
Affiliates may accept fees and other consideration from any Borrower or Guarantor and any of its Subsidiaries and Affiliates for services in connection with this Agreement or otherwise without having to account for the same to Lenders. 

12.5 Indemnification. Lenders agree to indemnify Agent and Issuing Bank (to the extent not reimbursed by Borrowers hereunder and
without limiting any obligations of Borrowers hereunder) ratably, in accordance with their Pro Rata Shares, for any and all claims of any kind and nature whatsoever that may be imposed on, incurred by or asserted against Agent (including by any
Lender) arising out of or by reason of any investigation in or in any way relating to or arising out of this Agreement or any other Financing Agreement or any other documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including the costs and expenses that Agent is obligated to pay hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents; provided, that, no Lender shall be
liable for any of the foregoing to the extent it arises from the gross negligence or willful misconduct of the party to be indemnified as determined by a final non-appealable judgment of a court of competent jurisdiction. The foregoing indemnity
shall survive the payment of the Obligations and the termination or non-renewal of this Agreement. 
 12.6 Non-Reliance on
Agent and Other Lenders. Each Lender agrees that it has, independently and without reliance on Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of Borrowers and
Guarantors and has made its own decision to enter into this Agreement and that it will, independently and without reliance upon Agent or any other Lender, and based on such documents and information as it 

  
 98 

 
shall deem appropriate at the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or any of the other Financing Agreements. Agent shall not
be required to keep itself informed as to the performance or observance by any Borrower or Guarantor of any term or provision of this Agreement or any of the other Financing Agreements or any other document referred to or provided for herein or
therein or to inspect the properties or books of any Borrower or Guarantor. Agent will use reasonable efforts to provide Lenders with any information received by Agent from any Borrower or Guarantor which is required to be provided to Lenders or
deemed to be requested by Lenders hereunder and with a copy of any Notice of Default or Failure of Condition received by Agent from any Borrower or any Lender; provided, that, Agent shall not be liable to any Lender for any failure to
do so, except to the extent that such failure is attributable to Agent’s own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Except for notices, reports and other
documents expressly required to be furnished to Lenders by Agent or deemed requested by Lenders hereunder, Agent shall not have any duty or responsibility to provide any Lender with any other credit or other information concerning the affairs,
financial condition or business of any Borrower or Guarantor that may come into the possession of Agent. 
 12.7 Failure to
Act. Except for action expressly required of Agent hereunder and under the other Financing Agreements, Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances
to its satisfaction from Lenders of their indemnification obligations under Section 12.5 hereof against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. 

12.8 Additional Loans. Agent shall not make any Revolving Loans or Issuing Bank provide any Letter of Credit to any Borrower on
behalf of Lenders intentionally and with actual knowledge that such Revolving Loans or Letter of Credit would cause the aggregate amount of the total outstanding Revolving Loans and Letters of Credit to Borrowers to exceed the Borrowing Base,
without the prior consent of all Lenders; except, that, Agent may make such additional Revolving Loans or Issuing Bank may provide such additional Letter of Credit on behalf of Lenders, intentionally and with actual knowledge that such
Revolving Loans or Letter of Credit will cause the total outstanding Revolving Loans and Letters of Credit to such Borrower to exceed the Borrowing Base, as Agent may deem necessary or advisable in its discretion; provided, that: (a)
the total principal amount of the additional Revolving Loans or additional Letters of Credit to any Borrower which Agent may make or provide after obtaining such actual knowledge that the aggregate principal amount of the Revolving Loans equal or
exceed the Borrowing Base, plus the amount of Special Agent Advances made pursuant to Section 12.11(a)(ii) hereof then outstanding, shall not exceed the aggregate amount equal to ten (10%) percent of the Maximum Credit and shall not cause
the total principal amount of the Loans and Letters of Credit to exceed the Maximum Credit and (b) no such additional Revolving Loan or Letter of Credit shall be outstanding more than ninety (90) days after the date such additional Revolving
Loan or Letter of Credit is made or issued (as the case may be), except as the Required Lenders may otherwise agree. Each Lender shall be obligated to pay Agent the amount of its Pro Rata Share of any such additional Revolving Loans or Letters of
Credit. 
 12.9 Concerning the Collateral and the Related Financing Agreements. Each Lender authorizes and directs Agent
to enter into this Agreement and the other Financing Agreements. Each Lender agrees that any action taken by Agent or Required Lenders in accordance with the terms of 

  
 99 

 
this Agreement or the other Financing Agreements and the exercise by Agent or Required Lenders of their respective powers set forth therein or herein, together with such other powers that are
reasonably incidental thereto, shall be binding upon all of the Lenders. 
 12.10 Field Audit, Examination Reports and other
Information; Disclaimer by Lenders. By signing this Agreement, each Lender:. 
 (a) is deemed to have requested that Agent
furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report and report with respect to the Borrowing Base prepared or received by Agent (each field audit or examination report and report with respect to
the Borrowing Base being referred to herein as a “Report” and collectively, “Reports”), appraisals with respect to the Collateral and financial statements with respect to Borrowers, Guarantors and their respective Subsidiaries
received by Agent; 
 (b) expressly agrees and acknowledges that Agent (i) does not make any representation or warranty as
to the accuracy of any Report, appraisal or financial statement or (ii) shall not be liable for any information contained in any Report, appraisal or financial statement; 
 (c) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Agent or any other party performing any audit or examination will inspect only specific
information regarding Borrowers and Guarantors and will rely significantly upon Borrowers’ and Guarantors’ books and records, as well as on representations of Borrowers’ and Guarantors’ personnel; and 

(d) agrees to keep all Reports confidential and strictly for its internal use in accordance with the terms of Section 13.5 hereof,
and not to distribute or use any Report in any other manner. 
 12.11 Collateral Matters. 

(a) Agent may, at its option, from time to time, at any time on or after an Event of Default and for so long as the same is continuing or
upon any other failure of a condition precedent to the Loans and Letters of Credit hereunder, make such disbursements and advances (“Special Agent Advances”) which Agent, in its sole discretion, (i) deems necessary or desirable either
to preserve or protect the Collateral or any portion thereof or (ii) to enhance the likelihood or maximize the amount of repayment by Borrowers and Guarantors of the Loans and other Obligations; provided, that, (A) the
aggregate principal amount of the Special Agent Advances pursuant to this clause (ii) outstanding at any time, plus the then outstanding principal amount of the additional Loans and Letters of Credit which Agent may make or provide as set forth
in Section 12.8 hereof, shall not exceed the amount equal to ten (10%) percent of the Maximum Credit and (B) the aggregate principal amount of the Special Agent Advances pursuant to this clause (ii) outstanding at any time, plus
the then outstanding principal amount of the Loans and Letters of Credit, shall not exceed the Maximum Credit, except at Agent’s option; provided, that, to the extent that the aggregate principal amount of Special Agent Advances
plus the then outstanding principal amount of the Loans and Letters of Credit exceed the Maximum Credit the Special Agent Advances that are in excess of the Maximum Credit shall be for the sole account and risk of Agent and notwithstanding anything
to the contrary set forth below, no Lender shall have any obligation to provide its share of such Special Agent Advances in excess of the Maximum Credit, or (iii) to pay any other amount 

  
 100

 
chargeable to any Borrower or Guarantor pursuant to the terms of this Agreement or any of the other Financing Agreements consisting of (A) costs, fees and expenses and (B) payments to
Issuing Bank in respect of any Letter of Credit Obligations. The Special Agent Advances shall be repayable on demand and together with all interest thereon shall constitute Obligations secured by the Collateral. Special Agent Advances shall not
constitute Loans but shall otherwise constitute Obligations hereunder. Interest on Special Agent Advances shall be payable at the Interest Rate then applicable to Base Rate Loans and shall be payable on demand. Without limitation of its obligations
pursuant to Section 6.11, each Lender agrees that it shall make available to Agent, upon Agent’s demand, in immediately available funds, the amount equal to such Lender’s Pro Rata Share of each such Special Agent Advance. If such
funds are not made available to Agent by such Lender, such Lender shall be deemed a Defaulting Lender and Agent shall be entitled to recover such funds, on demand from such Lender together with interest thereon for each day from the date such
payment was due until the date such amount is paid to Agent at the Federal Funds Rate for each day during such period (as published by the Federal Reserve Bank of New York or at Agent’s option based on the arithmetic mean determined by Agent of
the rates for the last transaction in overnight Federal funds arranged prior to 9:00 a.m. (New York City, New York time) on that day by each of the three leading brokers of Federal funds transactions in New York City selected by Agent) and if such
amounts are not paid within three (3) days of Agent’s demand, at the highest Interest Rate provided for in Section 3.1 hereof applicable to Base Rate Loans. 
 (b) Lenders hereby irrevocably authorize Agent, at its option and in its discretion to release any security interest in, mortgage or lien upon, any of the Collateral (i) upon termination of the
Commitments and payment and satisfaction of all of the Obligations and delivery of cash collateral to the extent required under Section 13.1 below, or (ii) constituting property being sold or disposed of if Administrative Borrower or any
Borrower or Guarantor certifies to Agent that the sale or disposition is made in compliance with Section 9.7 hereof (and Agent may rely conclusively on any such certificate, without further inquiry), or (iii) constituting property in which
any Borrower or Guarantor did not own an interest at the time the security interest, mortgage or lien was granted or at any time thereafter, or (iv) having a value in the aggregate in any twelve (12) month period of less than $5,000,000,
and to the extent Agent may release its security interest in and lien upon any such Collateral pursuant to the sale or other disposition thereof, such sale or other disposition shall be deemed consented to by Lenders, or (v) if required or
permitted under the terms of any of the other Financing Agreements, including any intercreditor agreement, or (vi) approved, authorized or ratified in writing by all of Lenders. Except as provided above, Agent will not release any security
interest in, mortgage or lien upon, any of the Collateral without the prior written authorization of all of Lenders. Upon request by Agent at any time, Lenders will promptly confirm in writing Agent’s authority to release particular types or
items of Collateral pursuant to this Section. In no event shall the consent or approval of Issuing Bank to any release of Collateral be required. Nothing contained herein shall be construed to require the consent of any Bank Product Provider to any
release of any Collateral or termination of security interests in any Collateral. 
 (c) Without any manner limiting
Agent’s authority to act without any specific or further authorization or consent by the Required Lenders, each Lender agrees to confirm in writing, upon request by Agent, the authority to release Collateral conferred upon Agent under this
Section. Agent shall (and is hereby irrevocably authorized by Lenders to) execute such documents as may be necessary to evidence the release of the security interest, mortgage or liens granted to Agent upon any Collateral to the extent set forth
above; provided, that, (i) Agent shall not be required to execute 

  
 101

 
any such document on terms which, in Agent’s opinion, would expose Agent to liability or create any obligations or entail any consequence other than the release of such security interest,
mortgage or liens without recourse or warranty and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any security interest, mortgage or lien upon (or obligations of any Borrower or Guarantor in respect of)
the Collateral retained by such Borrower or Guarantor. 
 (d) Agent shall have no obligation whatsoever to any Lender, Issuing
Bank or any other Person to investigate, confirm or assure that the Collateral exists or is owned by any Borrower or Guarantor or is cared for, protected or insured or has been encumbered, or that any particular items of Collateral meet the
eligibility criteria applicable in respect of the Loans or Letters of Credit hereunder, or whether any particular reserves are appropriate, or that the liens and security interests granted to Agent pursuant hereto or any of the Financing Agreements
or otherwise have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or
to continue exercising, any of the rights, authorities and powers granted or available to Agent in this Agreement or in any of the other Financing Agreements, it being understood and agreed that in respect of the Collateral, or any act, omission or
event related thereto, subject to the other terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in its discretion, given Agent’s own interest in the Collateral as a Lender and that Agent shall have no
duty or liability whatsoever to any other Lender or Issuing Bank. 
 12.12 Agency for Perfection. Each Lender and Issuing
Bank hereby appoints Agent and each other Lender and Issuing Bank as agent and bailee for the purpose of perfecting the security interests in and liens upon the Collateral of Agent in assets which, in accordance with Article 9 of the UCC can be
perfected only by possession (or where the security interest of a secured party with possession has priority over the security interest of another secured party) and Agent and each Lender and Issuing Bank hereby acknowledges that it holds possession
of any such Collateral for the benefit of Agent as secured party. Should any Lender or Issuing Bank obtain possession of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request therefor shall deliver such
Collateral to Agent or in accordance with Agent’s instructions. 
 12.13 Successor Agent. Agent may resign as Agent
upon thirty (30) days’ notice to Lenders and Administrative Borrower. If Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor agent for Lenders. If no successor agent is appointed prior
to the effective date of the resignation of Agent, Agent may appoint, after consulting with Lenders and Administrative Borrower, a successor agent from among Lenders. Upon the acceptance by the Lender so selected of its appointment as successor
agent hereunder, such successor agent shall succeed to all of the rights, powers and duties of the retiring Agent and the term “Agent” as used herein and in the other Financing Agreements shall mean such successor agent and the retiring
Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 12 shall inure to its benefit as to any actions taken or omitted by it
while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty (30) days after the date of a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall
nonetheless thereupon become effective and Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. 

  
 102

 12.14 Other Agent Designations. Agent may at any time and from time to time determine
that a Lender may, in addition, be a “Co-Agent”, “Syndication Agent”, “Documentation Agent” or similar designation hereunder and enter into an agreement with such Lender to have it so identified for purposes of this
Agreement. Any such designation shall be effective upon written notice by Agent to Administrative Borrower of any such designation. Any Lender that is so designated as a Co-Agent, Syndication Agent, Documentation Agent or such similar designation by
Agent shall have no right, power, obligation, liability, responsibility or duty under this Agreement or any of the other Financing Agreements other than those applicable to all Lenders as such. Without limiting the foregoing, the Lenders so
identified shall not have or be deemed to have any fiduciary relationship with any Lender and no Lender shall be deemed to have relied, nor shall any Lender rely, on a Lender so identified as a Co-Agent, Syndication Agent, Documentation Agent or
such similar designation in deciding to enter into this Agreement or in taking or not taking action hereunder. 
 SECTION 13. TERM OF
AGREEMENT; MISCELLANEOUS 
 13.1 Term. 
 (a) This Agreement and the other Financing Agreements shall become effective as of the date set forth on the first page hereof and shall continue in full force and effect for a term ending on the date
three (3) years from the date hereof (the “Maturity Date”). In addition, Administrative Borrower (on behalf of Borrowers) may terminate this Agreement at any time upon thirty (30) days prior written notice to Agent (which notice
shall be irrevocable) and Agent may, at its option, and shall at the direction of Required Lenders, terminate this Agreement at any time on or after an Event of Default. Upon the Maturity Date or any other effective date of termination of the
Financing Agreements, Borrowers shall pay to Agent all outstanding and unpaid Obligations and shall furnish cash collateral to Agent (or at Agent’s option, a letter of credit issued for the account of Borrowers and at Borrowers’ expense,
in form and substance reasonably satisfactory to Agent, by an issuer acceptable to Agent and payable to Agent as beneficiary) in such amounts as Agent determines are reasonably necessary to secure Agent, Lenders and Issuing Bank from loss, cost,
damage or expense, including reasonably attorneys’ fees and expenses, in connection with any contingent Obligations, including issued and outstanding Letter of Credit Obligations and checks or other payments provisionally credited to the
Obligations and/or as to which Agent or any Lender has not yet received final and indefeasible payment and any continuing obligations of Agent or any Lender pursuant to any Deposit Account Control Agreement and for any of the Obligations arising
under or in connection with any Bank Products in such amounts as the Bank Product Provider providing such Bank Products may require (unless such Obligations arising under or in connection with any Bank Products are paid in full in cash and
terminated in a manner satisfactory to such Bank Product Provider). The amount of such cash collateral (or letter of credit, as Agent may determine) as to any Letter of Credit Obligations shall be in the amount equal to one hundred five
(105%) percent of the amount of the Letter of Credit Obligations plus the amount of any fees and expenses payable in connection therewith through the end of the latest expiration date of the Letters of Credit giving rise to such Letter of
Credit Obligations. Such payments in respect of the Obligations and cash collateral shall be remitted by wire transfer in Federal funds to the Agent Payment Account or such other bank account of Agent, as Agent may, in its discretion, designate in
writing to Administrative Borrower for such purpose. Interest shall be due until and including the next Business Day, if the amounts so paid by Borrowers to the Agent Payment Account or other bank account designated by Agent are received in such
bank account later than 12:00 noon (New York City, New York time). 

  
 103

 (b) No termination of the Commitments, this Agreement or any of the other Financing
Agreements shall relieve or discharge any Borrower or Guarantor of its respective duties, obligations and covenants under this Agreement or any of the other Financing Agreements until all Obligations have been fully and finally discharged and paid,
and Agent’s continuing security interest in the Collateral and the rights and remedies of Agent and Lenders hereunder, under the other Financing Agreements and applicable law, shall remain in effect until all such Obligations have been fully
and finally discharged and paid. Accordingly, each Borrower and Guarantor waives any rights it may have under the UCC to demand the filing of termination statements with respect to the Collateral and Agent shall not be required to send such
termination statements to Borrowers or Guarantors, or to file them with any filing office, unless and until this Agreement shall have been terminated in accordance with its terms and all Obligations paid and satisfied in full in immediately
available funds. 
 (c) If for any reason this Agreement is terminated prior to the Maturity Date, in view of the impracticality
and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Agent’s and each Lender’s lost profits as a result thereof, Borrowers agree to pay to Agent, for the benefit of
Lenders, upon the effective date of such termination, an early termination fee in the amount equal to 
  

			
	                Amount	 	                             
       Period
		
	(i) 2% of Maximum Credit	 	From the date hereof to and including the first anniversary of the date hereof.
		
	(ii) 1% of Maximum Credit	 	After the first anniversary of the date hereof to and including the second anniversary of the date hereof.
		
	(iii) 0.50% of Maximum Credit	 	After the second anniversary of the date hereof to but not including the third anniversary of the date hereof.

Such early termination fee shall be presumed to be the amount of damages sustained by Agent and Lenders as a result of such early
termination and Borrowers and Guarantors agree that it is reasonable under the circumstances currently existing (including, but not limited to, the borrowings that are reasonably expected by Borrowers hereunder and the interest, fees and other
charges that are reasonably expected to be received by Agent and Lenders pursuant to the Credit Facility). In addition, Agent and Lenders shall be entitled to such early termination fee upon the occurrence of any Event of Default described in
Sections 10.1(g) and 10.1(h) hereof, even if Agent and Lenders do not exercise the right to terminate this Agreement, but elect, at their option, to provide financing to any Borrower or permit the use of cash collateral under the United States
Bankruptcy Code. The early termination fee provided for in this Section 13.1 shall be deemed included in the Obligations. 

Notwithstanding the foregoing, Borrowers shall not be required to pay the early termination fee as set forth in this Section 13.1(c)
if, after the date that is eighteen (18) months after the date hereof, this Agreement is terminated and all Obligations are repaid in full in accordance with the terms hereof with the initial proceeds of loans made under an asset-based
revolving credit facility among Borrowers and a commercial banking office of Wells Fargo. 

  
 104

 13.2 Interpretative Provisions. 

(a) All terms used herein which are defined in Article 1, Article 8 or Article 9 of the UCC shall have the meanings given therein unless
otherwise defined in this Agreement. 
 (b) All references to the plural herein shall also mean the singular and to the singular
shall also mean the plural unless the context otherwise requires. 
 (c) All references to any Borrower, any Guarantor, any
Obligor, Agent and Lenders pursuant to the definitions set forth in the recitals hereto, or to any other person herein, shall include their respective successors and assigns. 
 (d) The words “hereof”, “herein”, “hereunder”, “this Agreement” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not any particular provision of this Agreement and as this Agreement now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
 (e) The word “including” when used in this Agreement shall mean “including, without limitation” and the word “will” when used in this Agreement shall be construed to have the
same meaning and effect as the word “shall”. 
 (f) An Event of Default shall exist or continue or be continuing until
such Event of Default is waived in accordance with Section 11.3 or is cured in a manner satisfactory to Agent, if such Event of Default is capable of being cured as determined by Agent. 

(g) All references to the term “good faith” used herein when applicable to Agent or any Lender shall mean, notwithstanding
anything to the contrary contained herein or in the UCC, honesty in fact in the conduct or transaction concerned. Borrowers and Guarantors shall have the burden of proving any lack of good faith on the part of Agent or any Lender alleged by any
Borrower or Guarantor at any time. 
 (h) Any accounting term used in this Agreement shall have, unless otherwise specifically
provided herein, the meaning customarily given in accordance with GAAP, and all financial computations hereunder shall be computed unless otherwise specifically provided herein, in accordance with GAAP as consistently applied and using the same
method for inventory valuation as used in the preparation of the financial statements of Borrowers, Guarantors and their respective Subsidiaries most recently received by Agent prior to the date hereof. Notwithstanding anything to the contrary
contained in GAAP or any interpretations or other pronouncements by the Financial Accounting Standards Board or otherwise, the term “unqualified opinion” as used herein to refer to opinions or reports provided by accountants shall mean an
opinion or report that is unqualified and also does not include any explanation, supplemental comment or other comment concerning the ability of the applicable person to continue as a going concern or the scope of the audit. 

  
 105

 (i) In the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including”, the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including”. 

(j) Unless otherwise expressly provided herein, (i) references herein to any agreement, document or instrument shall be deemed to
include all subsequent amendments, modifications, supplements, extensions, renewals, restatements or replacements with respect thereto, but only to the extent the same are not prohibited by the terms hereof or of any other Financing Agreement, and
(ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions consolidating, amending, replacing, recodifying, supplementing or interpreting the statute or regulation. 

(k) The captions and headings of this Agreement are for convenience of reference only and shall not affect the interpretation of this
Agreement. 
 (l) This Agreement and other Financing Agreements may use several different limitations, tests or measurements to
regulate the same or similar matters. All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their terms. 
 (m) This Agreement and the other Financing Agreements are the result of negotiations among and have been reviewed by counsel to Agent and the other parties, and are the products of all parties.
Accordingly, this Agreement and the other Financing Agreements shall not be construed against Agent or Lenders merely because of Agent’s or any Lender’s involvement in their preparation. 

13.3 Notices. 
 (a) All notices, requests and demands hereunder shall be in writing and deemed to have been given or made: if delivered in person, immediately upon delivery; if by telex, telegram or facsimile
transmission, immediately upon sending and upon confirmation of receipt; if by nationally recognized overnight courier service with instructions to deliver the next Business Day, one (1) Business Day after sending; and if by certified mail,
return receipt requested, five (5) days after mailing. Notices delivered through electronic communications shall be effective to the extent set forth in Section 13.3(b) below. All notices, requests and demands upon the parties are to be
given to the following addresses (or to such other address as any party may designate by notice in accordance with this Section): 
  

			
	 If to Administrative Borrower,
 any Borrower or any
 Guarantor:
	 	 Lighting Science Group Corporation
 1227 South Patrick Drive, Building 2A
 Satellite Beach, Florida 32937

Attention: Greg Kaiser, CFO
 Telephone No.:
321-779-5537
 Telecopy No.: 321-779-5521

E-mail: greg.kaiser@lsgc.com

  
 106

  

			
	 If to Agent, Lenders or Issuing
 Bank:
	 	 Wells Fargo Bank, National Association
 110 East Broward Boulevard, Suite 1100
 Ft. Lauderdale, Florida 33301

Attention: Portfolio Administrator - Lighting Science
 Telephone No.: 954-847-3630
 Telecopy No.: 877-489-4711

E-mail: gary.dixon@wellsfargo.com
 E-mail:
wanda.alverio@wellsfargo.com

 (b) Notices and other communications to Lenders and Issuing Bank hereunder may
be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Agent or as otherwise determined by Agent; provided, that, the foregoing shall not apply to
notices to any Lender or Issuing Bank pursuant to Section 2 hereof if such Lender or Issuing Bank, as applicable, has notified Agent that it is incapable of receiving notices under such Section by electronic communication. Unless Agent
otherwise requires, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested”
function, as available, return e-mail or other written acknowledgement); provided, that, if such notice or other communication is not given during the normal business hours of the recipient, such notice shall be deemed to have been
sent at the opening of business on the next Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such notice or communications is available and identifying the website address therefor. 
 13.4 Partial Invalidity. If any provision of this Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole, but this
Agreement shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by
applicable law. 
 13.5 Confidentiality. 
 (a) Agent, each Lender and Issuing Bank shall use all reasonable efforts to keep confidential, in accordance with its customary procedures for handling confidential information and safe and sound lending
practices, any non-public information supplied to it by any Borrower pursuant to this Agreement which is clearly and conspicuously marked as confidential at the time such information is furnished by such Borrower to Agent, such Lender or Issuing
Bank; provided, that, nothing contained herein shall limit the disclosure of any such information: (i) to the extent required by statute, rule, regulation, subpoena or court order, (ii) to bank examiners and other regulators,
auditors and/or accountants, in connection with any litigation to which Agent, such Lender or Issuing Bank is a party, (iii) to any Lender or Participant (or prospective Lender or Participant) or Issuing Bank or to any Affiliate of any Lender
so long as such Lender, Participant (or prospective Lender or Participant), Issuing Bank or Affiliate shall have been instructed to treat such information as confidential in accordance with this Section 13.5, or (iv) to counsel for Agent,
any Lender, Participant (or prospective Lender or Participant) or Issuing Bank. 

  
 107

 (b) In the event that Agent, any Lender or Issuing Bank receives a request or demand to
disclose any confidential information pursuant to any subpoena or court order, Agent or such Lender or Issuing Bank, as the case may be, agrees (i) to the extent permitted by applicable law or if permitted by applicable law, to the extent Agent
or such Lender or Issuing Bank determines in good faith that it will not create any risk of liability to Agent or such Lender or Issuing Bank, Agent or such Lender or Issuing Bank will promptly notify Administrative Borrower of such request so that
Administrative Borrower may seek a protective order or other appropriate relief or remedy and (ii) if disclosure of such information is required, disclose such information and, subject to reimbursement by Borrowers of Agent’s or such
Lender’s or Issuing Bank’s expenses, cooperate with Administrative Borrower in the reasonable efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to such portion of the disclosed information
which Administrative Borrower so designates, to the extent permitted by applicable law or if permitted by applicable law, to the extent Agent or such Lender or Issuing Bank determines in good faith that it will not create any risk of liability to
Agent or such Lender or Issuing Bank. 
 (c) In no event shall this Section 13.5 or any other provision of this Agreement,
any of the other Financing Agreements or applicable law be deemed: (i) to apply to or restrict disclosure of information that has been or is made public by any Borrower, Guarantor or any third party or otherwise becomes generally available to
the public other than as a result of a disclosure in violation hereof, (ii) to apply to or restrict disclosure of information that was or becomes available to Agent, any Lender (or any Affiliate of any Lender) or Issuing Bank on a
non-confidential basis from a person other than a Borrower or Guarantor, (iii) to require Agent, any Lender or Issuing Bank to return any materials furnished by a Borrower or Guarantor to Agent, a Lender or Issuing Bank or prevent Agent, a
Lender or Issuing Bank from responding to routine informational requests in accordance with the Code of Ethics for the Exchange of Credit Information promulgated by The Robert Morris Associates or other applicable industry standards relating to the
exchange of credit information. The obligations of Agent, Lenders and Issuing Bank under this Section 13.5 shall supersede and replace the obligations of Agent, Lenders and Issuing Bank under any confidentiality letter signed prior to the date
hereof or any other arrangements concerning the confidentiality of information provided by any Borrower or Guarantor to Agent or any Lender. In addition, Agent and Lenders may disclose information relating to the Credit Facility to Gold Sheets and
other publications, with such information to consist of deal terms and other information customarily found in such publications and that Wells Fargo may otherwise use the corporate name and logo of Borrowers and Guarantors or deal terms in
“tombstones” or other advertisements, public statements or marketing materials. 
 (d) Agent and Lenders may share
with their respective Affiliates any information relating to the Credit Facility and Borrowers and Guarantors. Agent and Lenders may disclose information relating to the Credit Facility to Gold Sheets and other similar bank trade publications with
such information to consist of deal terms and other information customarily found in such publications. In addition, Agent and Lenders and their respective Affiliates may otherwise use the corporate names, logos and other insignia of Borrowers and
Guarantors in “tombstones” or other advertisements or public statements or other marketing materials of Agent and Lenders and their respective Affiliates. 

  
 108

 (e) Solely with respect to any material intellectual property agreements that are clearly
and conspicuously marked as confidential at the time such agreements are furnished by Borrowers and Guarantors to Agent and Lenders, the obligations of Agent and Lenders under this Section 13.5 with respect to the confidentiality of such
material intellectual property license agreements shall survive the termination or non-renewal of this Agreement unless such material intellectual property agreements have been returned to Borrowers and Guarantors, and shall be subject to the
disclosure requirements under this Section 13.5. 
 13.6 Successors. This Agreement, the other Financing Agreements
and any other document referred to herein or therein shall be binding upon and inure to the benefit of and be enforceable by Agent, Lenders, Issuing Bank, Borrowers, Guarantors and their respective successors and assigns; except, that,
Borrowers may not assign their rights under this Agreement, the other Financing Agreements and any other document referred to herein or therein without the prior written consent of Agent and Lenders. Any such purported assignment without such
express prior written consent shall be void. No Lender may assign its rights and obligations under this Agreement without the prior written consent of Agent, except as provided in Section 13.7 below. The terms and provisions of this Agreement
and the other Financing Agreements are for the purpose of defining the relative rights and obligations of Borrowers, Guarantors, Agent, Lenders and Issuing Bank with respect to the transactions contemplated hereby and there shall be no third party
beneficiaries of any of the terms and provisions of this Agreement or any of the other Financing Agreements. 
 13.7
Assignments; Participations. 
 (a) Each Lender may, with the prior written consent of Agent, assign all or, if less than
all, a portion equal to at least $5,000,000 in the aggregate for the assigning Lender, of such rights and obligations under this Agreement to one or more Eligible Transferees (but not including for this purpose any assignments in the form of a
participation), each of which assignees shall become a party to this Agreement as a Lender by execution of an Assignment and Acceptance; provided, that, (i) such transfer or assignment will not be effective until recorded by Agent
on the Register and (ii) Agent shall have received for its sole account payment of a processing fee from the assigning Lender or the assignee in the amount of $5,000. 
 (b) Agent shall maintain a register of the names and addresses of Lenders, their Commitments and the principal amount of their Loans (the “Register”). Agent shall also maintain a copy of each
Assignment and Acceptance delivered to and accepted by it and shall modify the Register to give effect to each Assignment and Acceptance. The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and any
Borrowers, Guarantors, Agent and Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by Administrative Borrower and any Lender
at any reasonable time and from time to time upon reasonable prior notice. 
 (c) Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto and to the other Financing Agreements and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations (including, without limitation, the obligation to participate in Letter of Credit Obligations) of a 

  
 109

 
Lender hereunder and thereunder and the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its obligations under this Agreement. 
 (d) By execution and delivery of an Assignment and
Acceptance, the assignor and assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or any of the other Financing Agreements or the execution, legality, enforceability, genuineness,
sufficiency or value of this Agreement or any of the other Financing Agreements furnished pursuant hereto, (ii) the assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of
any Borrower, Guarantor or any of their Subsidiaries or the performance or observance by any Borrower or Guarantor of any of the Obligations; (iii) such assignee confirms that it has received a copy of this Agreement and the other Financing
Agreements, together with such other documents and information it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such assignee will, independently and without reliance upon
the assigning Lender, Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Financing Agreements,
(v) such assignee appoints and authorizes Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Financing Agreements as are delegated to Agent by the terms hereof and thereof, together
with such powers as are reasonably incidental thereto, and (vi) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the other Financing Agreements are required
to be performed by it as a Lender. Agent and Lenders may furnish any information concerning any Borrower or Guarantor in the possession of Agent or any Lender from time to time to assignees and Participants. 

(e) Each Lender may sell participations to one or more banks or other entities in or to all or a portion of its rights and obligations
under this Agreement and the other Financing Agreements (including, without limitation, all or a portion of its Commitments and the Loans owing to it and its participation in the Letter of Credit Obligations, without the consent of Agent or the
other Lenders); provided, that, (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment hereunder) and the other Financing Agreements shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such obligations, and Borrowers, Guarantors, the other Lenders and Agent shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement and the other Financing Agreements, and (iii) the Participant shall not have any rights under this Agreement or any of the other Financing Agreements (the Participant’s rights
against such Lender in respect of such participation to be those set forth in the agreement executed by such Lender in favor of the Participant relating thereto) and all amounts payable by any Borrower or Guarantor hereunder shall be determined as
if such Lender had not sold such participation. 
 (f) Nothing in this Agreement shall prevent or prohibit any Lender from
pledging its Loans hereunder to a Federal Reserve Bank in support of borrowings made by such Lenders from such Federal Reserve Bank; provided, that, no such pledge shall release such Lender from any of its obligations hereunder or
substitute any such pledgee for such Lender as a party hereto. 

  
 110

 (g) Borrowers and Guarantors shall assist Agent or any Lender permitted to sell assignments
or participations under this Section 13.7 in whatever manner reasonably necessary in order to enable or effect any such assignment or participation, including (but not limited to) the execution and delivery of any and all agreements, notes and
other documents and instruments as shall be requested and the delivery of informational materials, appraisals or other documents for, and the participation of relevant management in meetings and conference calls with, potential Lenders or
Participants. Borrowers (or Administrative Borrower on behalf of Borrowers) shall certify the correctness, completeness and accuracy, in all material respects, of all descriptions of Borrowers and Guarantors and their affairs provided, prepared or
reviewed by any Borrower or Guarantor that are contained in any selling materials and all other information provided by it and included in such materials. 
 (h) Any Lender that is an Issuing Bank may at any time assign all of its Commitments pursuant to this Section 13.7. If such Issuing Bank ceases to be Lender, it may, at its option, resign as Issuing
Bank and such Issuing Bank’s obligations to issue Letters of Credit shall terminate but it shall retain all of the rights and obligations of Issuing Bank hereunder with respect to Letters of Credit outstanding as of the effective date of its
resignation and all Letter of Credit Obligations with respect thereto (including the right to require Lenders to make Revolving Loans or fund risk participations in outstanding Letter of Credit Obligations), shall continue. 

13.8 Entire Agreement. This Agreement, the other Financing Agreements, any supplements hereto or thereto, and any instruments or
documents delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements,
understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. In the event of any inconsistency between the terms of this
Agreement and any schedule or exhibit hereto, the terms of this Agreement shall govern. 
 13.9 USA Patriot Act. Each
Lender subject to the USA PATRIOT Act (Title III of Pub.L. 107-56 (signed into law October 26, 2001) (the “Act”) hereby notifies Borrowers and Guarantors that pursuant to the requirements of the Act, it is required to obtain, verify
and record information that identifies each person or corporation who opens an account and/or enters into a business relationship with it, which information includes the name and address of Borrowers and Guarantors and other information that will
allow such Lender to identify such person in accordance with the Act and any other applicable law. Borrowers and Guarantors are hereby advised that any Loans or Letters of Credit hereunder are subject to satisfactory results of such verification.

 13.10 Counterparts, Etc. This Agreement or any of the other Financing Agreements may be executed in any number of
counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement or any of the other Financing Agreements by telefacsimile or other
electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Agreement or any of such other Financing Agreements. Any party delivering an executed counterpart of any such
agreement by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of such agreement. 

  
 111

 [SIGNATURE PAGE FOLLOWS] 

  
 112

 IN WITNESS WHEREOF, Agent, Lenders, Borrowers and Guarantors have caused these presents to
be duly executed as of the day and year first above written. 
  

									
	AGENT	 	 	 	BORROWER
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent	 		 	LIGHTING SCIENCE GROUP CORPORATION, as Borrower
					
	By: 	 	 /s/ Eric A. Anderson
	 		 	By:	 	 /s/ Gregory T. Kaiser

	 Name:
	 	Eric A. Anderson	 		 	Name:	 	Gregory T. Kaiser
	Title: 	 	Vice President	 		 	Title: 	 	Chief Financial Officer
			
	ISSUING BANK	 		 	GUARANTORS
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Issuing Bank	 		 	BIOLOGICAL ILLUMINATION, LLC, as Guarantor
					
	By: 	 	 /s/ Eric A. Anderson
	 		 	By:	 	 /s/ Fred Maxik

	 Name:
	 	Eric A. Anderson	 		 	Name:	 	Fred Maxik
	Title: 	 	Vice President	 		 	Title:	 	Manager
				
	LENDER	 		 		 	
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender	 		 	LSGC, LLC, as Guarantor
		 		 		 	By: Lighting Science Group Corporation, its sole member
					
	By: 	 	 /s/ Eric A. Anderson
	 		 	By:	 	 /s/ Gregory T. Kaiser

	 Name:
	 	Eric A. Anderson	 		 	Name:	 	Gregory T. Kaiser
	Title: 	 	Vice President	 		 	Title: 	 	Assistant Secretary
				
	Commitment: $15,000,000	 		 		 	

 [Signature Page to Loan and Security Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]