Document:

THIS
NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT”)

 

US
$115,000.00 

 

FOOTHILLS
EXPLORATION, INC

12%
CONVERTIBLE REDEEMABLE NOTE

DUE
SEPTEMBER 19, 2020

 

FOR
VALUE RECEIVED, FOOTHILLS EXPLORATION, INC (the “Company”) promises to pay to the order of ODYSSEY CAPITAL FUNDING
LLC and its authorized successors and permitted assigns (“Holder”), the aggregate principal face amount of
One Hundred Fifteen Thousand Dollars exactly (U.S. $115,000.00) on September 19, 2020 (“Maturity Date”) and
to pay interest on the principal amount outstanding hereunder at the rate of 12% per annum commencing on September 19, 2019. The
interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration
and transfers of this Note. The principal of, and interest on, this Note are payable at 1249 Broadway, Suite 103, Hewlett, NY
11557, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from
time to time. The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity
Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed
to such Holder at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall
constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note
to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below)
pursuant to paragraph 4(b) herein.

 

This
Note is subject to the following additional provisions:

 

1.       This
Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder
shall pay any tax or other governmental charges payable in connection therewith.

____

Initials

 

    	 

     

    

 

2.       The
Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3.       This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“Act”)
and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void.
Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name
this Note is duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this Note
be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this
Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth
in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this
Note is being converted (“Notice of Conversion”) in the form annexed hereto as Exhibit A. The date of
receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.       
(a) The Holder of this Note is entitled, at its option, at any time after the 180th daily anniversary of the Note,
to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s common
stock (the “Common Stock”) at a price (“Conversion Price”) for each share of Common Stock
equal to 55% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau
OTC Marketplace exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded
in the future (“Exchange”), for the twenty prior trading days including the day upon which a
Notice of Conversion is received by the Company or its transfer agent (provided such Notice of Conversion is delivered by fax
or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings
Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days,
the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common
Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest
shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but
the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price of the Company’s
Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders
to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions submitted pending
this increase. In the event the Company experiences a DTC “Chill” on its shares, the Conversion Price shall be
decreased to 45% instead of 55% while that “Chill” is in effect. In no event shall the Holder be allowed to effect
a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its
affiliates would exceed 4.99% of the outstanding shares of the Common Stock of the Company (which may be increased up to 9.9%
upon 60 days’ prior written notice by the Investor).

 

(b)       Interest
on any unpaid principal balance of this Note shall be paid at the rate of 12% per annum. Interest shall be paid by the Company
in Common Stock (“Interest Shares”). Holder may, at any time, send in a Notice of Conversion to the Company for Interest
Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a
portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

____

Initials

 

    	 	2	 

     

    

 

(c)
The Notes may be prepaid or assigned with the following penalties/premiums:

 

	PREPAY
    DATE	 	PREPAY
    AMOUNT
	≤
    60 days	 	125%
    of principal plus accrued interest
	61-
    120 days 	 	135%
    of principal plus accrued interest
	121-
    180 days 	 	145%
    of principal plus accrued interest

 

This
Note may not be prepaid after the 180th day. Such redemption must be closed and funded within 3 days of giving notice
of redemption of the right to redeem shall be null and void. Any partial prepayments shall be applied in accordance with the chart
set forth above with respect to allocation of principal, premium and interest.

 

(d)
       Upon (i) a transfer of all or substantially all of the assets of the Company to any
person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change
or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii)
any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity
(other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and
(iii) being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the Holder, redeem
this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the
election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued
but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e)
       In case of any Sale Event (not to include a sale of all or substantially all of the
Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this
Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to
such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the
holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor
person or entity acting in good faith.

____

Initials

 

    	 	3	 

     

    

 

5.       No
provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.       The
Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice
of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for
hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.       The
Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by
the Holder in collecting any amount due under this Note.

 

8.       If
one or more of the following described “Events of Default” shall occur:

 

(a)       The
Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company;
or

 

(b)       Any
of the representations or warranties made by the Company herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or
the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c)       The
Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of
the Company under this Note or any other note issued to the Holder; or

 

(d)       The
Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an
assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment
of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy
relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under
federal or state laws as applicable; or

 

(e)       A
trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f)       Any
governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of the Company; or

 

(g)       One
or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in
the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

 

(h)       The
Company shall have defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered
and failed to cure such default within the appropriate grace period; or

____

Initials

 

    	 	4	 

     

    

 

(i)       The
Company shall have its Common Stock delisted from an exchange (including the OTC Market exchange) or, if the Common Stock trades
on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days or ceases to file its 1934
act reports with the SEC;

 

(j)       If
a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the
Board;

 

(k)       The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion; or

 

(l)
       The Company shall not replenish the reserve set forth in Section 12, within 3 business
days of the request of the Holder.

 

(m)       The
Company shall not be “current” in its filings with the Securities and Exchange Commission; or

 

(n)
       The Company shall lose the “bid” price for its stock and a market (including
the OTC marketplace or other exchange)

 

Then,
or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have
been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option
of the Holder and in the Holder’s sole discretion, the Holder may consider this Note immediately due and payable, without
presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly
waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately,
and without expiration of any period of grace, enforce any and all of the Holder’s rights and remedies provided herein or
any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24%
per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law.
In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th
day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the
10th day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%.
In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not
paid at maturity, the outstanding principal due under this Note shall increase by 10%. Further, if a breach of Section 8(m) occurs
or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price
during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during the delinquency
period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per
share.

____

Initials

 

    	 	5	 

     

    

 

If
the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging
an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

Make-Whole
for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the
conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder
incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable
to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

Failure
to Deliver Loss = [(Highest VWAP price for the 30 trading days on or after the day of exercise) x (Number of conversion shares)]

 

The
Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day
from the time of the Holder’s written notice to the Company.

 

9.       In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired
thereby.

 

10.       Neither
this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the
Company and the Holder.

 

11.       The
Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously
has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information
indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144 opinion
to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12.       The
Company shall issue irrevocable transfer agent instructions reserving 55,757,000 shares of its Common Stock for conversions under
this Note (the “Share Reserve”). Upon full conversion of this Note, any shares remaining in the Share Reserve shall
be cancelled. The Company shall pay all transfer agent costs associated with issuing and delivering the share certificates to
the Holder, as well as maintaining the Share Reserve. If such amounts are to be paid by the Holder, it may deduct such amounts
from the principal amount being converted. The company should at all times reserve a minimum of four times the number of shares
required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve such amounts.
The Company will instruct its transfer agent to provide the outstanding share information to the Holder in connection with its
conversions.

 

13.       The
Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits,
recapitalizations etc. This notice shall be given to the Holder as soon as possible under law.

____

Initials

 

    	 	6	 

     

    

 

14.       If
it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable provision shall automatically be revised to equal the maximum rate of interest or other amount deemed interest
permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim
or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal or interest
on this Note.

 

15.       This
Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be
performed within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and
the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of
New York or in the Federal courts sitting in the county or city of New York, or the Federal
courts within the southern or eastern districts of New York. This Agreement may be executed in counterparts, and the facsimile
transmission of an executed counterpart to this Agreement shall be effective as an original.

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

 

Dated:
September 19, 2019

 

	 	FOOTHILLS
    EXPLORATION, INC
	 	 	 
	 	By:	 
	 	 	B.P.
    Allaire
	 	Title:	CEO               

____

Initials

 

    	 	7	 

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The
undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of FOOTHILLS
EXPLORATION, INC (“Shares”) according to the conditions set forth in such Note, as of the date written below.

 

If
Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes
and charges payable with respect thereto.

 

	Date
    of Conversion: 	 

	Applicable
    Conversion Price: 	 

	Signature:
    	 
	 	[Print
    Name of Holder and Title of Signer]

 

	Address:
    	 
	 	 

 

	SSN
    or EIN: 	 

 

	Shares
    are to be registered in the following name: 	 

 

	Name:
    	 
	Address:
    	 
	Tel:
    	 
	Fax:
    	 
	SSN
    or EIN: 	 

 

Shares
are to be sent or delivered to the following account:  

  

	Account
    Name: 	 
	Address:
    	 

____

Initials

 

    	 	8EXHIBIT 10.1

      EXECUTION VERSION

      

      CREDIT AGREEMENT

       

      Dated as of September 23, 2019

       

      among

       

      SOUTH JERSEY INDUSTRIES, INC.,

      as the Borrower,

       

      and

       

      BANK OF AMERICA, N.A.,

      as the Lender

       

      
        
          

      

      
      	TABLE OF CONTENTS

            
	 	 	
              

              

            	
              Page

            
	 	 	 	 
	
              ARTICLE I

            	
              DEFINITIONS AND ACCOUNTING TERMS

            	
              1

            
	
              1.01

            	 	
              Defined Terms

            	
              1

            
	
              1.02

            	 	
              Other Interpretive Provisions

            	
              17

            
	
              1.03

            	 	
              Accounting Terms

            	
              17

            
	
              1.04

            	 	
              Rounding

            	
              18

            
	
              1.05

            	 	
              Times of Day; Rates

            	
              18

            
	
              ARTICLE II

            	
              BORROWINGS

            	
              18

            
	
              2.01

            	 	
              Loans

            	
              18

            
	
              2.02

            	 	
              Borrowings, Conversions and Continuations of Loans

            	
              18

            
	
              2.03

            	 	
              Reserved

            	
              19

            
	
              2.04

            	 	
              Reserved

            	
              19

            
	
              2.05

            	 	
              Prepayments

            	
              19

            
	
              2.06

            	 	
              Reserved

            	
              20

            
	
              2.07

            	 	
              Repayment of Loans

            	
              20

            
	
              2.08

            	 	
              Interest and Default Rate

            	
              20

            
	
              2.09

            	 	
              Reserved

            	
              21

            
	
              2.10

            	 	
              Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate

            	
              21

            
	
              2.11

            	 	
              Payments Generally

            	
              21

            
	
              ARTICLE III

            	
              TAXES, YIELD PROTECTION AND ILLEGALITY

            	
              21

            
	
              3.01

            	 	
              Taxes

            	
              21

            
	
              3.02

            	 	
              Illegality

            	
              22

            
	
              3.03

            	 	
              Inability to Determine Rates

            	
              22

            
	
              3.04

            	 	
              Increased Costs; Reserves on Eurodollar Rate Loans

            	
              23

            
	
              3.05

            	 	
              Compensation for Losses

            	
              24

            
	
              3.06

            	 	
              Survival

            	
              25

            
	
              ARTICLE IV

            	
              CONDITIONS PRECEDENT TO BORROWING

            	
              25

            
	
              4.01

            	 	
              Conditions Precedent to Borrowing

            	
              25

            
	
              ARTICLE V

            	
              REPRESENTATIONS AND WARRANTIES

            	
              26

            
	
              ARTICLE VI

            	
              COVENANTS

            	
              30

            
	
              6.01

            	 	
              Affirmative Covenants

            	
              30

            
	
              6.02

            	 	
              Negative Covenants

            	
              33

            
	
              6.03

            	 	
              Reporting Requirements

            	
              34

            
	
              6.04

            	 	
              Financial Covenants

            	
              36

            

       

      

      
        i

        
          

      

      	TABLE OF CONTENTS

            
	 	
              

              

            	
              Page

            
	 	 	 
	
              ARTICLE VII

            	
              RESERVED

            	
              36

            
	
              ARTICLE VIII

            	
              EVENTS OF DEFAULT

            	
              36

            
	
              8.01

            	 	
              Events of Default

            	
              36

            
	
              8.02

            	 	
              Remedies upon Event of Default

            	
              37

            
	
              8.03

            	 	
              Application of Funds

            	
              38

            
	
              ARTICLE IX

            	
              MISCELLANEOUS

            	
              38

            
	
              9.01

            	 	
              Amendments, Etc

            	
              38

            
	
              9.02

            	 	
              Notices; Effectiveness; Electronic Communications

            	
              38

            
	
              9.03

            	 	
              No Waiver; Cumulative Remedies; Enforcement

            	
              39

            
	
              9.04

            	 	
              Expenses; Indemnity; Damage Waiver

            	
              39

            
	
              9.05

            	 	
              Payments Set Aside

            	
              40

            
	
              9.06

            	 	
              Successors and Assigns

            	
              41

            
	
              9.07

            	 	
              Treatment of Certain Information; Confidentiality

            	
              41

            
	
              9.08

            	 	
              Right of Setoff

            	
              42

            
	
              9.09

            	 	
              Interest Rate Limitation

            	
              42

            
	
              9.10

            	 	
              Counterparts; Integration; Effectiveness

            	
              43

            
	
              9.11

            	 	
              Survival of Representations and Warranties

            	
              43

            
	
              9.12

            	 	
              Severability

            	
              43

            
	
              9.13

            	 	
              Governing Law; Jurisdiction; Etc

            	
              44

            
	
              9.14

            	 	
              Waiver of Jury Trial

            	
              45

            
	
              9.15

            	 	
              Reserved

            	
              45

            
	
              9.16

            	 	
              No Advisory or Fiduciary Responsibility

            	
              45

            
	
              9.17

            	 	
              Electronic Execution

            	
              45

            
	
              9.18

            	 	
              USA PATRIOT Act Notice

            	
              46

            
	
              9.19

            	 	
              Acknowledgment Regarding Any Supported QFCs

            	
              46

            

       

      
        ii

        
          

      

      	
              BORROWER PREPARED SCHEDULES:

            
	 	 
	
              Schedule 1.01(a)

            	
              Certain Address for Notices

            
	
              Schedule 1.01(b)

            	
              Responsible Officers

            
	
              Schedule 5.01(o)

            	
              Capital Stock

            
	 	 

      	
              LENDER PREPARED SCHEDULES:

            
	 	 
	
              Schedule 1.01(a)

            	
              Certain Addresses for Notices

            
	 	 

      	
              EXHIBITS:

            
	 	 
	
              Exhibit A

            	
              Form of Compliance Certificate

            
	
              Exhibit B

            	
              Form of Loan Notice

            
	
              Exhibit C

            	
              Form of Notice of Loan Prepayment

            

      

      

      
        iii

        
          

      

      
      CREDIT AGREEMENT

       

      This CREDIT AGREEMENT is entered into as of September 23,
        2019 among SOUTH JERSEY INDUSTRIES, INC., a New Jersey corporation (the “Borrower”),
        and BANK OF AMERICA, N.A., as the Lender.

       

      PRELIMINARY STATEMENTS:

       

      WHEREAS, the Borrower has requested that the Lender make a
        term loan in the amount of $100,000,000;

       

      WHEREAS, the Lender has agreed to make such term loan to
        the Borrower on the terms and subject to the conditions set forth herein;

       

      NOW THEREFORE, in consideration of the mutual covenants and
        agreements herein contained, the parties hereto covenant and agree as follows:

       

      ARTICLE I

      DEFINITIONS AND ACCOUNTING TERMS

       

      
        	
                1.01

              	
                Defined Terms.

              

      

       

      As used in this Agreement, the following terms shall have the meanings set forth below:

       

      “2015 Term Loan Facility” means that certain Term Loan Credit Agreement
        dated as of October 28, 2015 among the Borrower, the lenders party thereto from time to time, and Bank of America, N.A. as a lender and administrative agent, as it may be amended from time to time.

       

      “2017 Revolving Credit Agreement” means that certain Five-Year
        Revolving Credit Agreement dated as of August 7, 2017 among the Borrower, the lenders party thereto from time to time, and Wells Fargo Bank, National Association, as administrative agent, as it may be amended from time to time.

       

      “Acquisition” means any transaction or series of related transactions
        by which the Borrower or any Subsidiary directly or indirectly (a) acquires all or substantially all of the assets comprising one or more business units of any other Person, whether through purchase of assets, merger or otherwise or (b) acquires
        (in one transaction or as the most recent transaction in a series of transactions) at least a majority of the Capital Stock of any other Person or a majority of the Capital Stock of such Person having ordinary voting power for the election of
        directors or members of a similar governing body of such Person.

       

      “Affiliate” means, with respect to a specified Person, another Person
        that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

       

      “Agreement” means this Credit Agreement.

       

      “Applicable Law” means all applicable laws, statutes, treaties, rules, codes, ordinances, regulations, certificates, orders, interpretations, licenses, and permits of any Governmental Authority and judgments, decrees,
        injunctions, writs, orders or like action of any court, arbitrator or other judicial or quasi-judicial tribunal (including, without limitation, those pertaining to health, safety, the environment or otherwise).

       

      
        1

        
          

      

      “Applicable Rate” means, from time to time, the following percentages
        per annum, based upon the Debt Rating as set forth below:

       

      	
              Applicable Rate

            
	
              Pricing 

              Level

            	
              Debt Ratings

              S&P/Moody’s

            	
              Eurodollar 

              Loans

            	
              Base

              Rate Loans

            
	
              1

            	
              A+/A3 or better

            	
              0.500%

            	
              0.000%

            
	
              2

            	
              BBB+/Baa1

            	
              0.625%

            	
              0.000%

            
	
              3

            	
              BBB/Baa2

            	
              0.750%

            	
              0.000%

            
	
              4

            	
              BBB-/Baa3

            	
              1.000%

            	
              0.000%

            
	
              5

            	
              BB+/Ba1 or less

            	
              1.250%

            	
              0.250%

            

      

      

      Initially, the Applicable Rate shall be determined based upon the Debt Rating specified in the certificate delivered pursuant to Section 4.01(e).  Thereafter, each change in the Applicable Rate resulting from a publicly announced change in the Debt Rating shall be effective, in the case of an upgrade, during the period
        commencing on the date of delivery by the Borrower to the Lender of notice thereof pursuant to Section 6.03(i) and ending on the date immediately preceding the effective
        date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change. If the rating system
        of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lender shall negotiate in good faith to amend this definition to reflect such changed
        rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating most recently in effect prior to such change or
        cessation.

       

      “Anti-Corruption Laws” has the meaning specified in Section 6.02(l).

       

      “Bail-In Action” means the exercise of any Write-Down and Conversion
        Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

       

      “Bail-In Legislation” means, with respect to any EEA Member Country
        implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

       

      “Bank of America” means Bank of America, N.A. and its successors.

       

      “Base Rate” means for any day a fluctuating rate of interest per annum
        equal to the highest of (a) the Federal Funds Rate plus one-half of one percent (0.50%), (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar Rate
        plus one percent (1.00%); and if the Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs
        and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such prime rate announced by Bank of America
        shall take effect at the opening of business on the day specified in the public announcement of such change.

       

      
        2

        
          

      

      “Base Rate Loan” means a Loan that bears interest based on the Base
        Rate.

       

      “Bonds” means any tax-exempt bonds issued in connection with various
        projects of the Borrower or its Subsidiaries, certain obligations of which are supported by letters of credit issued pursuant to that certain Four-Year Revolving Credit Agreement, dated as of April 29, 2011, among the Borrower, the lenders referred
        to therein and Wells Fargo Bank, National Association, as administrative agent (as amended, modified, supplemented, restated, or amended and restated, the “2011 Revolving Credit Agreement”).

       

      “Borrower” has the meaning specified in the introductory paragraph
        hereto.

       

      “Borrowing” means a borrowing consisting of simultaneous Loans of the
        same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by the Lender pursuant to Section 2.01(a).

       

      “Business Day” means any day other than a Saturday, Sunday or other day
        on which commercial banks are authorized to close under the Applicable Laws of, or are in fact closed in, the state where the Lender’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day that is also a London
        Banking Day.

       

      “Capital Stock” means, with respect to any Person, any
        and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred interest, any limited or general partnership interest and
        any limited liability company membership interest.

       

      “CERCLA” means the Comprehensive Environmental Response
        Compensation and Liability Act, 42 U.S. C. §9601, et. seq., as amended from time to time, and any regulations promulgated thereunder.

       

      “Change in Law” means the occurrence, after the Closing Date, of any of
        the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental
        Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that
        notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules,
        guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to
        Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

       

      “Change of Control” means the occurrence of either of the following:
        (a) any entity, person (within the meaning of Section 14(d) of the Exchange Act) or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) which theretofore was beneficial owner (as defined in Rule 13d‐3 under the Exchange
        Act) of less than 30% of the Borrower’s then outstanding common stock either (i) acquires shares of common stock of the Borrower in a transaction or series of transactions that results in such entity, person or group directly or indirectly owning
        beneficially 30% or more of the outstanding common stock of the Borrower, or (ii) acquires, by proxy or otherwise, the right to vote for the election of directors, for any merger, combination or consolidation of the Borrower or any of its direct or
        indirect Subsidiaries, or, for any other matter or question, more than 20% of the then outstanding voting securities of the Borrower; or (b) a majority of the directors of the board of directors of the Borrower fail to consist of Continuing
        Directors.

       

      
        3

        
          

      

      “Closing Date” means the date hereof.

       

      “Code” means the Internal Revenue Code of 1986, as amended.

       

      “Compliance Certificate” means a certificate substantially in the form
        of Exhibit A.

       

      “Consolidated” means, when used with reference to any accounting term,
        the amount described by such accounting term, determined on a consolidated basis in accordance with GAAP, after elimination of intercompany items.

       

      “Consolidated Total Capitalization” means the sum of (a) Indebtedness
        of the Borrower and its Consolidated Subsidiaries, without duplication, plus (b) Mandatorily Convertible Securities of the Borrower, plus (c) the sum of the Capital Stock (excluding treasury stock and capital stock subscribed for and unissued) and
        surplus (including earned surplus, capital surplus, translation adjustment and the balance of the current profit and loss account not transferred to surplus) accounts of the Borrower and its Consolidated Subsidiaries appearing on a consolidated
        balance sheet of the Borrower and its Consolidated Subsidiaries, in each case prepared as of the date of determination in accordance with GAAP consistent with those applied in the preparation of the financial statements referred to in Section
        4.01(d), after eliminating all intercompany transactions and all amounts properly attributable to minority interests, if any, in the stock and surplus of Subsidiaries.

       

      “Continuing Director” means, with respect to any Person as of any date
        of determination, any member of the board of directors of such Person who (a) was a member of such board of directors on the Closing Date, or (b) was nominated for election or elected to such board of directors with the approval of a majority of
        the Continuing Directors who were members of such board at the time of such nomination or election.

       

      “Contractual Obligation” means, as to any Person, any provision of any
        security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

       

      “Control” means the possession, directly or indirectly, of the power to
        direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlled” has
        the meaning correlative thereto. 

       

      “Debt Rating” means the ratings determined by a Rating Agency
        and shall be based upon the availability of such ratings as follows:

       

      (a)      The senior unsecured non-credit enhanced debt ratings
          of the Borrower by each Rating Agency, subject to subsection (A) below.

       

      (b)     If one, but not both, of the Rating Agencies has a
          senior unsecured non-credit enhanced debt rating of the Borrower, then the senior unsecured non-credit enhanced debt rating of the Borrower by either Moody’s or S&P, as applicable.

       

      
        4

        
          

      

      (c)     If neither Rating Agency has a senior unsecured
          non-credit enhanced debt rating of the Borrower, then both the issuer rating assigned to the Borrower by Moody’s and the issuer credit rating assigned to the Borrower by S&P, subject to subsection (A) below.

       

      (d)     If none of (a), (b), or (c) above is available, then
          either the issuer rating assigned to the Borrower by Moody’s or the issuer credit rating assigned to the Borrower by S&P, as applicable.

       

      (e)     If none of the above are available, then the Debt
          Rating (as defined in the SJG Credit Agreement) of South Jersey Gas, subject to subsection (B) below.

       

      For purposes of the foregoing: (A) if the Debt Ratings of the Borrower established or deemed to have been established by the two Rating Agencies
        shall fall within different “Levels” on the chart set forth in the definition of Applicable Margin, then (i) in any case where the ratings differential is one tier, the higher rating will apply and (ii) in any case where the ratings differential is
        two tiers or more, the tier one below the higher of the two will apply; and (B) if the Debt Rating is based upon the Debt Rating (as defined in the SJG Credit Agreement) of South Jersey Gas pursuant to (e) above, the applicable Level shall be one
        Level below such Debt Rating.

       

      Notwithstanding anything herein to the contrary, if the rating system of either Rating Agency shall change, or if either Rating Agency shall cease
        to be in the business of rating corporate debt obligations, the Borrower and the Lender shall negotiate in good faith to amend the definition of Debt Ratings to reflect such changed rating system or the unavailability of ratings from either or both
        Rating Agencies, and, pending the effectiveness of any such amendment, the applicable tier shall be determined by reference to the Debt Ratings of the Borrower most recently in effect prior to such change or cessation.

       

      “Debtor Relief Laws” means the Bankruptcy Code of the United States,
        and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable
        jurisdictions from time to time in effect.

       

      “Default” means any event or condition that constitutes an Event of
        Default or that, with the giving of any notice, the passage of time, or both, would, unless cured or waived, be an Event of Default.

       

      “Default Rate” means (a) with respect to any Obligation for which a
        rate is specified, a rate per annum equal to two percent (2%) in excess of the rate otherwise applicable thereto and (b) with respect to any Obligation for which a rate is not specified or available, a rate per annum equal to the Base Rate plus the Applicable Rate for Base Rate Loans plus two percent (2%), in each case, to the fullest
        extent permitted by Applicable Law.

       

      “Designated Jurisdiction” means any country or territory to the extent
        that such country or territory is the subject of any Sanction.

       

      “Disclosure Documents” means the Borrower’s Annual Report on Form 10‐K for the year ended December 31, 2018, the Borrower’s Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2019 and any Current Report
        on Form 8‐K delivered to the Lender at least three (3) Business Days prior to the date of this Agreement.

       

      “Dollar” and “$” mean lawful money of the United States.

       

      
        5

        
          

      

      “EEA Financial Institution” means (a) any credit institution or
        investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

       

      “EEA Member Country” means any of the member states of the European
        Union, Iceland, Liechtenstein, and Norway.

       

      “EEA Resolution Authority” means any public administrative authority or
        any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

       

      “Elizabethtown” means Elizabethtown Gas Company, a New Jersey
        corporation.

       

      “Elizabethtown Credit Agreement” means that certain revolving credit
        agreement, dated as of June 26, 2018 between Elizabethtown, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions that are lenders party thereto, as it may be amended, modified, restated, amended and
        restated, renewed, refinanced or replaced from time to time.

       

      “Environmental Judgments and Orders” means all judgments, decrees or
        orders arising from or in any way associated with any Environmental Requirements, whether or not entered upon consent or written agreements with a Governmental Authority or other entity, and whether or not incorporated in a judgment, decree or
        order.

       

      “Environmental Laws” means any and all federal, foreign, state, provincial and local laws, statutes, ordinances, codes, rules, standards and regulations,
        permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities, relating to the protection of public health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing,
        distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials.

      

      

      “Environmental Liabilities” means any liabilities,
        whether accrued, contingent or otherwise, arising from and in any way associated with any Environmental Requirements.

       

      “Environmental Notices” means notice from any
        Environmental Authority or by any other Authority, of possible or alleged noncompliance with or liability under any Environmental Requirement, including without limitation any complaints, citations, demands or requests from any Environmental
        Authority or from any other Authority for correction of any violation of any Environmental Requirement or any investigations concerning any violation of any Environmental Requirement.

       

      “Environmental Proceedings” means any judicial or
        administrative proceedings arising from or in any way associated with any Environmental Requirement.

       

      “Environmental Releases” means releases as defined
        in CERCLA or under any applicable state or local environmental law or regulation.

       

      
        6

        
          

      

      “Environmental Requirement” means any legal requirement relating to the
        environment and applicable to the Borrower or its properties, including but not limited to any such requirement under CERCLA or similar state legislation and all federal, state and local laws, ordinances, regulations, orders, writs, decrees and
        common law.

       

      “ERISA” means the Employee Retirement Income Security Act of 1974.

       

      “ERISA Affiliate” means any trade or business (whether or not
        incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

       

      “ERISA Event” means (a) a Reportable Event with respect to a Pension
        Plan; (b) the withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of
        operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization if
        withdrawal liability is asserted by such plan; (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 if the plan assets are not sufficient to pay all plan
        liabilities; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; or (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
        Pension Plan.

       

      “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation
        Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

       

      “Eurodollar Rate” means:

       

      (a)     for any Interest Period with respect to a Eurodollar
          Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”), or a comparable or successor rate which rate is approved by the Lender, as published
          on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Lender from time to time) (in such case, the “LIBOR Rate”) at or about 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent
          to such Interest Period; and

       

      (b)     for any interest calculation with respect to a Base
          Rate Loan on any date, the rate per annum equal to the LIBOR Rate, at or about 11:00 a.m., London time, two (2) Business Days prior to such date for Dollar deposits with a term of one (1) month commencing that day;

       

      provided that (i) to the extent a comparable or successor rate is approved by the Lender
        in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Lender, such approved rate shall be applied in a manner as otherwise reasonably determined by the Lender and (ii) if the Eurodollar
        Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

       

      “Eurodollar Rate Loan” means a Loan that bears interest at a rate based
        on clause (a) of the definition of “Eurodollar Rate.”

       

      “Event of Default” has the meaning specified in Section 8.01.

       

      
        7

        
          

      

      “Exchange Act” means the Securities Exchange Act of 1934, as amended
        from time to time.

       

      “FASB ASC” means the Accounting Standards Codification of the Financial
        Accounting Standards Board.

       

      “Federal Funds Rate” means, for any day, the rate per annum equal to
        the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next
        succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank
        of America on such day on such transactions as determined by the Lender.

       

      “Funding Indemnity Letter” means a funding indemnity letter in form and
        substance reasonably acceptable to the Lender.

       

      “GAAP” means generally accepted accounting principles in the United
        States set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or
        agencies with similar functions of comparable stature and authority within the accounting profession) including, without limitation, the FASB Accounting Standards Codification, that are applicable to the circumstances as of the date of
        determination, consistently applied and subject to Section 1.03.

       

      “Governmental Action” means all authorizations, consents, approvals,
        waivers, exceptions, variances, orders, licenses, exemptions, publications, filings, notices to and declarations of or with any Governmental Authority, required to be made by Borrower, other than routine reporting requirements the failure to comply
        with which will not affect the validity or enforceability of this Agreement or any other Loan Document or have a material adverse effect on the transactions contemplated by this Agreement or any other Loan Document.

       

      “Governmental Authority” means the government of the United States or
        any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
        administrative powers or functions of or pertaining to government (including, without limitation, any supra-national bodies such as the European Union or the European Central Bank).

       

      “Hazardous Materials” means any substances or
        materials (a) which are or become defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable,
        infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to human health or the environment and are or become regulated by any Governmental Authority having authority over Borrower or Borrower’s operations, (c) the presence of which
        require investigation or remediation under any Environmental Law or common law, (d) the discharge or emission or release of which requires a permit or license under any Environmental Law or other Governmental Action, (e) which are deemed to
        constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighboring properties, (f) which consist of underground or aboveground storage tanks, whether empty, filled or partially filled with any substance, or (g) which
        contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas.

      

      

      
        8

        
          

      

      “Hedging Obligations” means, with respect to any Person, the
        obligations of such Person under any interest rate or currency swap agreement, interest rate or currency future agreement, interest rate collar agreement, swap agreement (as defined in 11 U.S.C. § 101), interest rate or currency hedge agreement,
        and any put, call or other agreement or arrangement designed to protect such Person against fluctuations in interest rates or currency exchange rates.

       

      “Indebtedness” means, for any Person, all obligations of such Person
        which in accordance with GAAP should be classified on a balance sheet of such Person as liabilities of such Person, and in any event shall include, without duplication, all (a) indebtedness for borrowed money, (b) obligations evidenced by bonds,
        debentures, notes or other similar instruments, (c) obligations to pay the deferred purchase price of property or services, (d) obligations as lessee under leases which shall have been or should be, in accordance with GAAP, recorded as capital
        leases, (e) obligations as lessee under operating leases which have been recorded as off-balance sheet liabilities, (f) obligations under Hedging Obligations, (g) reimbursement obligations (contingent or otherwise) in respect of outstanding letters
        of credit, (h) indebtedness of the type referred to in clauses (a) through (f) above secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any lien or encumbrance on, or security
        interest in, property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness, and (i) obligations under direct or indirect
        guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (a)
        through (g) above.  For the avoidance of doubt and notwithstanding anything to the contrary set forth above, (i) Permitted Commodity Hedging Obligations, Capital Stock, including Capital Stock having a preferred interests shall not constitute
        Indebtedness for purposes of this Agreement, (ii) solely for the purpose of Section 6.04, and solely to the extent the aggregate principal amount thereof does not exceed 15.0% of the consolidated Total Capitalization, Mandatorily Convertible
        Securities, shall not constitute Indebtedness shall not constitute Indebtedness for purposes of this Agreement and (iii) solely for the purpose of Section 6.04, Pre-Funded Acquisition Debt shall not constitute Indebtedness for purposes of this
        Agreement to the extent and only so long as the Borrower or any Subsidiary holds the proceeds of such Pre-Funded Acquisition Debt as cash or cash equivalents on its balance sheet.

       

      “Indemnitees” has the meaning specified in Section 9.04(b).

       

      “Information” has the meaning specified in Section 9.07.

       

      “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the
        last day of each Interest Period applicable to such Loan and the Maturity Date; provided, however,
        that if any Interest Period for a Eurodollar Rate Loan exceeds three (3) months, the respective dates that fall every three (3) months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate
        Loan, the last Business Day of each March, June, September and December and the Maturity Date.

       

      “Interest Period” means, as to each Eurodollar Rate Loan, the period
        commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one (1), two (2), three (3) or six (6) months thereafter (in each case, subject to availability), as
        selected by the Borrower in its Loan Notice; provided that:

       

      
        9

        
          

      

      (a)     any Interest Period that would otherwise end on a day
          that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

       

      (b)     any Interest Period that begins on the last Business
          Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

       

      (c)      no Interest Period shall extend beyond the Maturity
          Date.

       

      “Investment” shall mean any investment (including, without limitation,
        any loan or advance) of the Borrower or any Subsidiary in or to any Person, whether payment therefor is made in cash or Capital Stock of the Borrower or any Subsidiary, and whether such investment is directly or indirectly by acquisition of Capital
        Stock or Indebtedness, or by loan, advance, transfer of property out of the ordinary course of business, capital contribution, equity or profit sharing interest, extension of credit on terms other than those normal in the ordinary course of
        business or otherwise.

       

      “IRS” means the United States Internal Revenue Service.

       

      “Lender” means Bank of America, N.A. and its successors and permitted assigns.

       

      “Lender’s Office” means Lender’s address and, as appropriate, account as set forth on Schedule 1.01(a), or such other address or
        account as the Lender may from time to time notify the Borrower; which office may include any Affiliate of the Lender or any domestic or foreign branch of the Lender or such Affiliate.

       

      “LIBOR” has the meaning specified in the definition of Eurodollar Rate.

       

      “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
        arrangement, encumbrance, lien (statutory or otherwise), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or
        other title retention agreement, any easement, right of way or other encumbrance on title to real property and any financing lease having substantially the same economic effect as any of the foregoing).

       

      “Loan” means an advance made by the Lender to the Borrower under the
        Term Facility.

       

      “Loan Documents” means, collectively, this Agreement and all other
        certificates, agreements, documents and instruments executed and delivered, in each case, by or on behalf of Borrower pursuant to this Agreement.

       

      “Loan Notice” means a notice of a conversion of Loans from one Type to
        the other, or a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit C or such other
        form as may be approved by the Lender (including any form on an electronic platform or electronic transmission system as shall be approved by the Lender), appropriately completed and signed by a Responsible Officer of the Borrower.

       

      “London Banking Day” means any day on which dealings in Dollar deposits
        are conducted by and between banks in the London interbank eurodollar market.

       

      
        10

        
          

      

      “Mandatorily Convertible Securities” means any mandatorily convertible
        equity linked securities issued by the Borrower, so long as the terms of such securities require no repayments or prepayments and no mandatory redemptions or repurchases (other than repayments, prepayments, redemptions or repurchases that are to be
        settled by the issuance of Capital Stock by the Borrower or the proceeds of which are concurrently applied to purchase Capital Stock from the Borrower), in each case prior to at least 91 days after the later of the Termination Date (as such term is
        defined in the 2017 Revolving Credit Agreement) and the repayment in full of the Loans and all other amounts due under this Agreement; provided, however, that Mandatorily Convertible Securities shall exclude any Capital Stock.

       

      “Master Agreement” has the meaning set forth in the definition of “Swap
        Contract.”

       

      “Material Adverse Effect” means a material adverse effect on (a) the
        business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries on a consolidated basis, taken as a whole, (b) the ability of the Borrower to perform its
        obligations under this Agreement or any of the other Loan Documents to which the Borrower is a party or (c) the validity or enforceability against the Borrower of this Agreement, any of the other Loan Documents to which the Borrower is a party, or
        the rights and remedies of the Lender hereunder or thereunder.

       

      “Maturity Date” means September 18, 2020.

       

      “Moody’s” means Moody’s Investors Service, Inc. and any successor
        thereto.

       

      “Multiemployer Plan” means any employee benefit plan of the type
        described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated to make contributions.

       

      “Multiple Employer Plan” means a Plan which has two or more
        contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

       

      “Notice of Loan Prepayment” means a notice of prepayment with respect
        to a Loan, which shall be substantially in the form of Exhibit F or such other form as may be approved by the Lender (including any form on an electronic platform or
        electronic transmission system as shall be approved by the Lender), appropriately completed and signed by a Responsible Officer.

       

      “Obligations” means (a) all advances to, and debts, liabilities,
        obligations, covenants and duties of Borrower arising under any Loan Document or otherwise with respect to any Loan and (b) all costs and expenses incurred in connection with enforcement and collection of the foregoing, including the fees, charges
        and disbursements of counsel, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the
        commencement by or against Borrower or any Affiliate thereof pursuant to any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such
        proceeding.

       

      “OFAC” means the Office of Foreign Assets Control of the United States
        Department of the Treasury.

       

      
        11

        
          

      

      “Organization Documents” means, (a) with respect to any corporation,
        the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation
        or organization and operating agreement or limited liability company agreement (or equivalent or comparable documents with respect to any non-U.S. jurisdiction); (c) with respect to any partnership, joint venture, trust or other form of business
        entity, the partnership, joint venture or other applicable agreement of formation or organization (or equivalent or comparable documents with respect to any non-U.S. jurisdiction) and (d) with respect to all entities, any agreement, instrument,
        filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization (or equivalent or comparable documents with respect to any
        non-U.S. jurisdiction).

       

      “PBGC” means the Pension Benefit Guaranty Corporation.

       

      “Pension Act” means the Pension Protection Act of 2006.

       

      “Pension Plan” means any Plan other than a Multiemployer Plan but
        including a Multiple Employer Plan that is maintained or is contributed to by the Borrower and any ERISA Affiliate or to which Borrower or any ERISA Affiliate has any liability (contingent or otherwise) and is either covered by Title IV of ERISA or
        is subject to the minimum funding standards under Section 412 of the Code.

       

      “Permitted Commodity Hedging Obligations” means obligations of the
        Borrower with respect to commodity agreements or other similar agreements or arrangements entered into in the ordinary course of business designed to protect against, or mitigate risks with respect to, fluctuations of commodity prices to which the
        Borrower or any Subsidiary is exposed to in the conduct of its business so long as (a) the management of the Borrower has determined that entering into such agreements or arrangements are bona fide hedging activities which comply with the
        Borrower’s risk management policies and (b) such agreements or arrangements are not entered into for speculative purposes and are not of a speculative nature.

       

      “Permitted Indebtedness” means any of the following:

       

      (a)      Indebtedness under this Agreement;

       

      (b)     Indebtedness of the Borrower and its Subsidiaries
          (other than South Jersey Gas or Elizabethtown) so long as before and immediately after the incurrence of such Indebtedness, the Borrower is in compliance with Section 6.04;

       

      (c)      Indebtedness of the Borrower under Hedging Obligations
          covering a notional amount not to exceed the face amount of outstanding Indebtedness;

       

      (d)     Indebtedness of South Jersey Gas, under (i) that
          certain Five-Year Revolving Credit Agreement, dated as of August 14, 2017, among South Jersey Gas, the lenders party thereto, and Wells Fargo Bank, National Association, as administrative agent on behalf of said lenders (as may be amended from
          time to time, the “SJG Credit Agreement”);

       

      (e)     Indebtedness of South Jersey Gas under the First
          Mortgage Notes issued pursuant to the Supplemental Indenture Amending and Restating the First Mortgage Indenture dated January 23, 2017, as may be amended, modified, restated, amended and restated, or renewed from time to time, and subsequent
          First Mortgage Notes, so long as before and immediately after the incurrence of such Indebtedness or any amendment, modification, restatement, amendment and restatement or renewal of such Indebtedness, South Jersey Gas is in compliance with
          Section 6.04 of the SJG Credit Agreement;

       

      
        12

        
          

      

      (f)     Indebtedness (other than the type described in clause
          (g) below) of South Jersey Gas, so long as before and immediately after the incurrence of such Indebtedness, South Jersey Gas is in compliance with Section 6.04 of the SJG Credit Agreement;

       

      (g)    Indebtedness of Elizabethtown under Securities issued
          pursuant to the First Mortgage Indenture dated as of July 2, 2018, as may be amended, modified, restated, amended and restated, or renewed from time to time, and subsequent Securities, so long as before and immediately after the incurrence of
          such Indebtedness or any amendment, modification, restatement, amendment and restatement or renewal of such Indebtedness, Elizabethtown is in compliance with Section 6.04 of the Elizabethtown Credit Agreement;

       

      (h)     Indebtedness (other than the type described in clause
          (i) below) of Elizabethtown, so long as before and immediately after the incurrence of such Indebtedness, Elizabethtown is in compliance with Section 6.04 of the Elizabethtown Credit Agreement;

       

      (i)      Indebtedness of South Jersey Gas or Elizabethtown
          under Hedging Obligations covering a notional amount not to exceed the face amount of such outstanding Indebtedness;

       

      (j)       Permitted Commodity Hedging Obligations;

       

      (k)      Indebtedness under the 2015 Term Loan Facility; and

       

      (l)       Indebtedness under the 2017 Revolving Credit
          Facility.

       

      “Permitted Investments” means, any of (a) with respect to the Borrower
        or any Subsidiary, any Investment or Acquisition, or any expenditure or any incurrence of any liability to make any expenditure for an Investment or Acquisition, other than (i) any Investment or Acquisition the result of which would be to change
        substantially the nature of the business of the Borrower and its Subsidiaries, considered as a whole, as of the date of this Agreement, and reasonable extensions thereof, (ii) any Investment that is in the nature of a hostile or contested
        Acquisition, and (iii) any Investment that would result in a Default or Event of Default; (b) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency thereof maturing within one hundred twenty (120)
        days from the date of acquisition thereof, (c) commercial paper maturing no more than one hundred twenty (120) days from the date of creation thereof and currently having the highest rating obtainable from either S&P or Moody’s, (d)
        certificates of deposit or money market deposit maturing no more than one hundred twenty (120) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States, each having combined capital, surplus
        and undivided profits of not less than $500,000,000 and having a rating in the “A” category or better by a nationally recognized rating agency; provided that the aggregate amount invested in such certificates of deposit shall not at any time exceed
        $5,000,000 for any one such deposit and $10,000,000 for any one such bank, or (e) time deposits maturing no more than thirty (30) days from the date of creation thereof with commercial banks or savings banks or savings and loan associations each
        having membership either in the FDIC or the deposits of which are insured by the FDIC and in amounts not exceeding the maximum amounts of insurance thereunder.

       

      “Permitted Liens” means, with respect to any Person, any of the following:

       

      
        13

        
          

      

      (a)     Liens for taxes, assessments or governmental charges
          not delinquent or being contested in good faith and by appropriate proceedings and for which adequate reserves in accordance with GAAP are maintained on such Person’s books;

       

      (b)     Liens arising out of deposits in connection with
          workers’ compensation, unemployment insurance, old age pensions or other social security or retirement benefits legislation;

       

      (c)     Deposits or pledges to secure bids, tenders, contracts
          (other than contracts for the payment of money), leases, statutory obligations, surety and appeal bonds, and other obligations of like nature arising in the ordinary course of such Person’s business, including, without limitation, deposits and
          pledges of funds securing Permitted Commodity Hedging Obligations;

       

      (d)    Liens imposed by law, such as mechanics’, workers’,
          materialmen’s, carriers’ or other like liens arising in the ordinary course of such Person’s business which secure the payment of obligations which are not past due or which are being diligently contested in good faith by appropriate proceedings
          and for which adequate reserves in accordance with GAAP are maintained on such Person’s books;

       

      (e)     Rights of way, zoning restrictions, easements and
          similar encumbrances affecting such Person’s real property which do not materially interfere with the use of such property;

       

      (f)      Liens securing Permitted Indebtedness of the type
          described in clauses (b), (c) and (i) of the definition of “Permitted Indebtedness,” not in excess of $25,000,000 in the aggregate;

       

      (g)      Liens securing Permitted Indebtedness of the type
          described in clauses (e) and (g) of the definition of “Permitted Indebtedness”;

       

      (h)     Liens securing Permitted Indebtedness of the type
          described in clauses (f) or (h) of the definition of “Permitted Indebtedness,” not in excess of $20,000,000 in the aggregate in the case of either (f) or (h); and

       

      (i)     Purchase money security interests for the purchase of
          equipment to be used in such Person’s business, encumbering only the equipment so purchased, and the proceeds thereof, and which secures only the purchase-money Indebtedness incurred to acquire the equipment so purchased, which Indebtedness
          qualifies as Permitted Indebtedness.

       

      “Person” means any natural person, corporation, limited liability
        company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

       

      “Plan” means any employee benefit plan within the meaning of Section
        3(3) of ERISA (including a Pension Plan), maintained for employees of the Borrower or, in the case of a Pension Plan or Multiemployer Plan, any plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its
        employees or to which Borrower or any ERISA Affiliate has any liability (contingent or otherwise).

       

      “Pre-Funded Acquisition Debt” means Indebtedness incurred for the
        purpose of financing a significant acquisition (with significance otherwise calculated in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended), which Indebtedness is incurred prior to the date of consummation
        of such significant acquisition; provided that such Indebtedness shall cease to constitute Pre-Funded Acquisition Debt upon the earlier to occur of (i) the consummation
        of such significant acquisition and (ii) 45 days after the termination of the acquisition agreement for such significant acquisition.

       

      
        14

        
          

      

      “Rating Agency” means S&P and/or Moody’s.

       

      “Related Parties” means, with respect to any Person, such Person’s
        Affiliates and the partners, directors, officers, employees, agents, and advisors of such Person and of such Person’s Affiliates.

       

      “Reportable Event” means any of the events set forth in Section 4043(c)
        of ERISA, other than events for which the thirty (30) day notice period has been waived.

       

      “Request for Credit Extension” means with respect to a conversion or
        continuation of Loans, a Loan Notice.

       

      “Responsible Officer” means the chief executive officer, president,
        chief financial officer, treasurer, assistant treasurer or controller of Borrower, solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of Borrower.  To the extent
        requested by the Lender, each Responsible Officer will provide an incumbency certificate and to the extent requested by the Lender, appropriate authorization documentation, in form and substance satisfactory to the Lender.

       

      “S&P” means Standard & Poor’s Financial Services LLC, a
        subsidiary of The McGraw-Hill Companies, Inc., and any successor thereto.

       

      “Sanction(s)” means any sanction administered or enforced by the United
        States Government (including, without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury (“HMT”) or other relevant
        sanctions authority with jurisdiction over the Borrower or any of its Subsidiaries.

       

      “SJG Credit Agreement” shall have the meaning set forth in the
        definition of Permitted Indebtedness.

       

      “SJI Utilities” means SJI Utilities, Inc., a New Jersey corporation and
        wholly-owned Subsidiary of the Borrower.

       

      “Significant Subsidiary” means, with respect to any Person, a
        Subsidiary which meets any of the following conditions:

       

      (a)     such Person’s and its other Subsidiaries’ investments
          in and advances to the Subsidiary exceed 10% of the total assets of such Person and its Consolidated Subsidiaries as of the end of the most recently completed fiscal quarter;

       

      (b)    such Person’s and its other Subsidiaries’ proportionate
          share (as determined by ownership interests) of the total assets (after intercompany eliminations) of the Subsidiary exceeds 10% of the total assets of such Person and its Consolidated Subsidiaries as of the end of the most recently completed
          fiscal quarter;

       

      (c)    such Person’s and its other Subsidiaries’ proportionate
          share (as determined by ownership interests) in the income from continuing operations before income taxes, extraordinary items and cumulative effect of changes in accounting principles of the Subsidiary exceeds 10% of such income of such Person
          and its Consolidated Subsidiaries for the most recently completed fiscal quarter; or

       

      
        15

        
          

      

      (d)      with respect to the Borrower, such Subsidiaries shall
          include, without limitation, South Jersey Gas.

       

      “Solvent” and “Solvency” mean, on any date of determination, with respect to the Borrower and its Subsidiaries on a consolidated basis, that on such date (a) the fair value of the property of the Borrower and its Subsidiaries on a
        consolidated basis is greater than the total amount of their liabilities, including known contingent liabilities, (b) the present fair saleable value of the assets of the Borrower and its Subsidiaries on a consolidated basis is not less than the
        amount that will be required to pay the probable liability of Borrower and its Subsidiaries on their debts as they become absolute and matured, (c) the Borrower and its Subsidiaries do not intend to incur debts or liabilities beyond their ability
        to pay such debts and liabilities as they mature, (d) the Borrower and its Subsidiaries are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which their property would constitute an
        unreasonably small capital, and (e) the Borrower and its Subsidiaries are able to pay their debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  The amount of contingent liabilities
        at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

       

      “South Jersey Gas” means South Jersey Gas Company, a New Jersey
        corporation.

       

      “Subsidiary” means, with respect to any Person, any corporation or
        unincorporated entity of which more than 50% of the outstanding capital stock (or comparable interest) having ordinary voting power (irrespective of whether at the time capital stock (or comparable interest) of any other class or classes of such
        corporation or entity shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned by said Person (whether directly or through one of more other Subsidiaries).  In the case of an
        unincorporated entity, a Person shall be deemed to have more than 50% of interests having ordinary voting power only if such Person’s vote in respect of such interests comprises more than 50% of the total voting power of all such interests in the
        unincorporated entity.

       

      “Swap Contract” means (a) any and all rate swap transactions, basis
        swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward
        bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency
        options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement,
        and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any
        International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”),
        including any such obligations or liabilities under any Master Agreement.

       

      “Term Facility” means, at any time, the aggregate principal amount of
        the Loans outstanding at such time.

       

      
        16

        
          

      

      “Type” means, with respect to a Loan, its character as a Base Rate Loan
        or a Eurodollar Rate Loan.

       

      “United States” and “U.S.” mean the United States of America.

       

      “Write-Down and Conversion Powers” means, with respect to any EEA
        Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU
        Bail-In Legislation Schedule.

       

      
        	
                1.02

              	
                Other Interpretive Provisions.

              

      

       

      With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

       

      (a)     The definitions of terms herein shall apply equally to
          the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be
          followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or
          other document (including the Loan Documents and any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, amended and restated, modified, extended, restated, replaced
          or supplemented from time to time (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s
          successors and permitted assigns, (iii) the words “hereto,” “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any
          particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits and Schedules
          to, the Loan Document in which such references appear, (v) any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words
          “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

       

      (b)     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.”

       

      (c)     Section headings herein and in the other Loan Documents
          are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

       

      
        	
                1.03

              	
                Accounting Terms.

              

      

       

      (a)    Generally.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be
          submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing audited financial statements for the fiscal
          year ended December 3, 2018, except as otherwise specifically prescribed herein.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein,
          Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.

       

      
        17

        
          

      

      (b)     Changes in GAAP.  If at any time any change in GAAP would affect the computation of any financial ratio (including that contained in Section 6.04) or requirement set forth in any Loan Document, and either the Borrower or
          Lender shall so request, the Lender and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Lender financial statements and
          other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

       

      
        	
                1.04

              	
                Rounding.

              

      

       

      Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component
        by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

       

      
        	
                1.05

              	
                Times of Day; Rates.

              

      

       

      Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

       

      ARTICLE II

      BORROWINGS

       

      
        	
                2.01

              	
                Loans.

              

      

       

      Subject to the terms and conditions set forth herein, the Lender agrees to make a single loan to the Borrower, in Dollars, on the Closing Date in an aggregate principal amount of $100,000,000.  Any principal amount of the Loan repaid or prepaid may not be reborrowed.  Loans may be Base Rate Loans or
        Eurodollar Rate Loans, as further provided herein; provided, however, any Borrowing made on
        the Closing Date or any of the three (3) Business Days following the Closing Date shall be made as Base Rate Loans unless the Borrower delivers a Funding Indemnity Letter not less than three (3) Business Days prior to the Closing Date.

       

      
        	
                2.02

              	
                Borrowings, Conversions and Continuations of Loans.

              

      

       

      (a)     Notice of Borrowing.  Each conversion of Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Lender, which may be given by (i)
          telephone or (ii) a Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Lender of a Loan Notice.  Each such notice must be
          received by the Lender not later than 11:00 a.m. three (3) Business Days prior to the requested date of any conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans. Each conversion
          to or continuation of Eurodollar Rate Loans shall be, unless otherwise agreed by Lender, in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof (or, in connection with any conversion or continuation of a Loan, if
          less, the entire principal thereof then outstanding).  Each conversion to Base Rate Loans shall be, unless otherwise agreed by Lender, in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof (or, in connection with any
          conversion or continuation of a Loan, if less, the entire principal thereof then outstanding).  Each Loan Notice (whether telephonic or written) shall specify (A)  whether the Borrower is requesting a conversion of Loans from one Type to the
          other, or a continuation of Loans, as the case may be, (B) the requested date of the conversion or continuation, as the case may be (which shall be a Business Day), (C) the principal amount of Loans to be converted or continued, (D) the Type of
          Loans to which existing Loans are to be converted, and (E) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice
          requesting a conversion or continuation, then the applicable Loans shall be converted to Base Rate Loans.  Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect
          to the applicable Eurodollar Rate Loans.  If the Borrower requests a conversion to, or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period
          of one (1) month.

       

      
        18

        
          

      

      (b)     Advances.  Following receipt of a Loan Notice, upon satisfaction of the applicable conditions set forth in Section 4.01, the Lender shall make the requested funds available to the Borrower either by (i) crediting the
          account of the Borrower on the books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Lender by the Borrower.

       

      (c)      Eurodollar Rate Loans.  Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan.  During the existence of a
          Default, no Loans may be converted to or continued as Eurodollar Rate Loans without the consent of the Lender, and the Lender may demand that any or all of the outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans.

       

      (d)      Interest Periods. After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be more than five (5) Interest Periods in
          effect in respect of the Term Facility.

       

      
        	
                2.03

              	
                Reserved.

              

      

       

      
        	
                2.04

              	
                Reserved.

              

      

       

      
        	
                2.05

              	
                Prepayments.

              

      

       

      (a)      Optional.  The Borrower may, upon notice to the Lender pursuant to delivery to the Lender of a Notice of Loan Prepayment, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or
          penalty subject to Section 3.05; provided that, unless otherwise agreed by the Lender (A) such notice must be received by Lender not later than 11:00 a.m. (1) three (3) Business Days prior to any date of prepayment of Eurodollar Rate Loans or on the date of prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate Loans shall be in a principal amount of
          $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (C) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal
          amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans.  If such notice
          is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of principal shall be accompanied by all accrued interest on
          the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Each prepayment of the outstanding Loans pursuant to this Section 2.05(a) shall be applied first to Base Rate Loans until paid in full and second to
          Eurodollar Rate Loans, in direct order of Interest Period maturities until paid in full.

       

      
        19

        
          

      

      
        	
                2.06

              	
                Reserved.

              

      

       

      
        	
                2.07

              	
                Repayment of Loans.

              

      

       

      The Borrower shall repay the Loans in full in cash on the Maturity Date, together with all accrued and unpaid interest thereon and any amount
        payable to the Lender pursuant to Section 3.05.

       

      
        	
                2.08

              	
                Interest and Default Rate.

              

      

       

      (a)     Interest.  Subject to the provisions of Section 2.08(b), (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period from the applicable borrowing date at a rate
          per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to
          the Base Rate plus the Applicable Rate.  To the extent that any calculation of interest or any fee required to be paid under this Agreement shall be based on (or result in) a rate that is less than zero, such rate shall be deemed zero for
          purposes of this Agreement.

       

      (b)      Default Rate.

       

      (i)        If any amount
          of principal of any Loan is not paid when due (as determined after giving effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount that has not been paid when due shall thereafter, upon notice
          from the Lender, bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Law.

       

      (ii)       If any amount
          (other than principal of any Loan) payable by the Borrower under any Loan Document is not paid when due (as determined after giving effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon
          notice from the Lender such amount that has not been paid when due shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by Applicable Law.

       

      (iii)       Upon the
          request of the Lender, while any Event of Default exists (including a payment default), all outstanding Obligations may accrue at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by
          Applicable Law.

       

      (iv)       Accrued and
          unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

       

      (c)      Interest Payments.  Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and
          payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

       

      
        20

        
          

      

      
        	
                2.09

              	
                Reserved.

              

      

       

      
        	
                2.10

              	
                Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate.

              

      

       

      All computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to the
        Eurodollar Rate) shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results
        in more fees or interest, as applicable, being paid than if computed on the basis of a 365 day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on
        which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.11, bear interest for one (1) day.  Each determination by the Lender of an interest rate or fee hereunder
        shall be conclusive and binding for all purposes, absent manifest error.  The Lender shall, at the request of the Borrower, deliver to the Borrower evidence, which may be in the form of a “screen shot” showing the quotations used by the Lender in
        determining the rate of interest pursuant to Section 2.08.

       

      
        	
                2.11

              	
                Payments Generally.

              

      

       

      All payments to be made by the Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment
        or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Lender at the Lender’s Office in Dollars and in immediately available funds not later than 3:00 p.m. on the date specified
        herein.  Any payment received after such time but before 4:00 p.m. on such day shall be deemed a payment on such date for the purposes of Section 8.01, but for all other purposes shall be deemed to have been made on the next succeeding Business Day
        and any applicable interest or fee shall continue to accrue.  Subject to Section 2.07 and as otherwise specifically provided for in this Agreement, if any payment to be made by the Borrower shall come due on a day other than a Business Day, payment
        shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

       

      ARTICLE III

      TAXES, YIELD PROTECTION AND ILLEGALITY

       

      
        	
                3.01

              	
                Taxes.

              

      

       

      (a)     If any payments to the Lender under this Agreement are
          made from outside the United States, the Borrower will not deduct any foreign taxes from any payments it makes to the Lender.  If any such taxes are imposed on any payments made by the Borrower (other than income or similar taxes, including
          payments under this paragraph), the Borrower will pay the taxes and will also pay to the Lender, at the time interest is paid, any additional amount which the Lender specifies as necessary to preserve the after-tax yield the Lender would have
          received if such taxes had not been imposed.  As soon as practicable after any payment of taxes by the Borrower to a Governmental Authority, as provided in this Section 3.01, the Borrower will deliver to the Lender the original or a certified
          copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender.

       

      
        21

        
          

      

      (b)     If the Lender determines, in its reasonable discretion,
          that it has received a refund of any taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Agreement, it shall promptly after the receipt of such refund pay to
          the Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Agreement with respect to the taxes giving rise such refund), net of all out-of-pocket expenses
          of the Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Lender, agrees to repay the amount paid over to the Borrower
          (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Lender in the event the Lender is finally required to repay such refund to such Governmental Authority.

       

      (c)     If the Lender requests compensation under Section 3.01,
          or requires the Borrower to pay any additional amount to Lender or any Governmental Authority for the account of the Lender to the extent permitted herein, the Lender shall use reasonable efforts to designate a different Lender’s Office for
          funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the reasonable judgment of the Lender, such designation or assignment (i) would eliminate or reduce
          amounts payable pursuant to Section 3.01 or otherwise to the extent permitted herein in the future and (ii) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender.

       

      
        	
                3.02

              	
                Illegality.

              

      

       

      If the Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for the
        Lender or its Lender’s Office to perform any of its obligations hereunder or to make, maintain or fund or charge interest with respect to any Borrowing or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental
        Authority has imposed material restrictions on the authority of the Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by the Lender to the Borrower, (a) any obligation of the Lender
        to issue, make, maintain, fund or charge interest with respect to any such Borrowing or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended, and (b) if such notice asserts the illegality of the
        Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest rate on which Base Rate Loans of the Lender shall, if necessary to avoid such
        illegality, be determined by the Lender without reference to the Eurodollar Rate component of the Base Rate, in each case until the Lender notifies the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt
        of such notice, (i) the Borrower shall, upon demand from the Lender, convert all Eurodollar Rate Loans to Base Rate Loans (the interest rate on which Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Lender without
        reference to the Eurodollar Rate component of the Base Rate), either on the last day of the Interest Period therefor, if the Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if the Lender may not
        lawfully continue to maintain such Eurodollar Rate Loans and (ii) if such notice asserts the illegality of the Lender determining or charging interest rates based upon the Eurodollar Rate, the Lender shall during the period of such suspension
        compute the Base Rate without reference to the Eurodollar Rate component thereof until it is no longer illegal for the Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the
        Borrower shall also pay accrued interest on the amount so prepaid or converted.

       

      
        
          	
                  3.03

                	
                  Inability to Determine Rates.

                

        

         

        If in connection with any request for a conversion to or continuation of a Eurodollar Rate Loan, the Lender determines that (a)  deposits are not
          being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested
          Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed Base Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not
          adequately and fairly reflect the cost to the Lender of funding such Eurodollar Rate Loan, the Lender will promptly so notify the Borrower. Thereafter, (i) the obligation of the Lender to make or maintain Eurodollar Rate Loans shall be suspended
          (to the extent of the affected Eurodollar Rate Loans or Interest Periods), and (ii) in the event of a determination described in the preceding sentence with respect to the Eurodollar Rate component of the Base Rate, the utilization of the
          Eurodollar Rate component in determining the Base Rate shall be suspended, in each case until the Lender revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a conversion to or continuation of
          Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein.
          Notwithstanding the foregoing, in the case of such pending request, the Lender, in consultation with the Borrower, may establish an alternative interest rate for funding Loans in the applicable currency and amount, and with the same Interest
          Period as the Loan requested to be made, converted or continued, as the case may be in which case, such alternative rate of interest shall apply with respect to such Loans.

         

      

      
        22

        
          

      

      
        	
                3.04

              	
                Increased Costs; Reserves on Eurodollar Rate Loans.

              

      

       

      (a)      Increased Costs Generally.  If any Change in Law shall:

       

      (i)        impose,
          modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, the Lender (except any reserve
          requirement contemplated by Section 3.04(e));

       

      (ii)       subject the
          Lender to any taxes on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

       

      (iii)      impose on the
          Lender or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by the Lender;

       

      and the result of any of the foregoing shall be to increase the cost to the Lender of making, converting to, continuing or maintaining any
        Loan (or of maintaining its obligation to make any such Loan), or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or any other amount) then, upon request of the Lender, the Borrower
        will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

       

      (b)    Capital Requirements.  If the Lender determines that any Change in Law affecting the Lender or the Lender’s Office or the Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the
          effect of reducing the rate of return on the Lender’s capital or on the capital of the Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by the Lender, to a level below that which the Lender or the Lender’s
          holding company could have achieved but for such Change in Law (taking into consideration the Lender’s policies and the policies of the Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to
          the Lender such additional amount or amounts as will compensate the Lender or the Lender’s holding company for any such reduction suffered.

       

      
        23

        
          

      

      (c)     Certificates for Reimbursement.  A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this
          Section and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay the Lender the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.

       

      (d)     Reserves on Eurodollar Rate Loans.  The Borrower shall pay to the Lender, (i) as long as the Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including eurocurrency
          funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by the Lender (as determined by
          the Lender in good faith, which determination shall be conclusive, absent manifest error), and (ii) as long as the Lender shall be required to comply with any reserve ratio requirement or analogous requirement of any central banking or financial
          regulatory authority imposed in respect of the maintenance of the Loans or the funding of the Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the
          actual costs allocated to such Loan by the Lender (as determined by the Lender in good faith, which determination shall be conclusive, absent manifest error), which in each case shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower shall have received at least ten (10) Business Days’ prior notice of such additional interest or costs from the
          Lender.  If the Lender fails to give notice ten (10) Business Days prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten (10) Business Days from receipt of such notice.

       

      (e)     Delay in Requests.  Failure or delay on the part of the Lender to demand compensation pursuant to the foregoing provisions of this Section 3.04 shall not constitute a waiver of the Lender’s right to demand such
          compensation, provided that the Borrower shall not be required to compensate the Lender pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that
          the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or
          reductions is retroactive, then the nine (9) month period referred to above shall be extended to include the period of retroactive effect thereof).

       

      
        	
                3.05

              	
                Compensation for Losses.

              

      

       

      Upon demand of the Lender from time to time, the Borrower shall promptly compensate the Lender for and hold the Lender harmless from any loss, cost
        or expense incurred by it as a result of:

       

      (a)     any continuation, conversion, payment or prepayment of
          any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

       

      (b)     any failure by the Borrower (for a reason other than
          the failure of the Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower;

       

      including any loss of anticipated profits and any loss or
        expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees
        charged by the Lender in connection with the foregoing.

       

      
        24

        
          

      

      For purposes of calculating amounts payable by the Borrower to the Lender under this Section 3.05, the Lender shall be deemed to have funded each Eurodollar Rate Loan
        made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

       

      
        	
                3.06

              	
                Survival.

              

      

       

      All of the Borrower’s obligations under this Article III shall survive termination of the repayment of all other Obligations hereunder.

       

      ARTICLE IV

      CONDITIONS PRECEDENT TO BORROWING

       

      
        	
                4.01

              	
                Conditions Precedent to Borrowing.

              

      

       

      The obligation of the Lender to make its Borrowing hereunder is subject to satisfaction of the following conditions precedent:

       

      (a)     Execution of Credit Agreement; Loan Documents.  The Lender shall have received (i) counterparts of this Agreement, executed by a Responsible Officer of the Borrower, (ii) if requested by Lender, a promissory note, payable
          to the Lender, duly completed and executed by the Borrower, and (iii) counterparts of any other Loan Document, executed by a Responsible Officer of the Borrower and a duly authorized officer of each other Person party thereto.

       

      (b)    Officer’s Certificate.  The Lender shall have received a certificate of a Responsible Officer dated the Closing Date, certifying as to the Organization Documents of the Borrower (which, to the extent filed with a
          Governmental Authority, shall be certified as of a recent date by such Governmental Authority), the resolutions of the governing body of the Borrower, the good standing, existence or its equivalent of the Borrower and of the incumbency (including
          specimen signatures) of the Responsible Officers of the Borrower.

       

      (c)     Legal Opinions of Counsel.  The Lender shall have received an opinion or opinions of counsel for the Borrower, dated the Closing Date and addressed to the Lender, in form and substance reasonably acceptable to the Lender.

       

      (d)      Financial Statements.  The Lender shall have received copies of the financial statements referred to in Section 5.01(f).

       

      (e)      Loan Notice.  The Lender shall have received a Loan Notice with respect to the Loans to be made on the Closing Date.

       

      (f)      Fees and Expenses.  The Lender shall have received all fees and expenses of counsel to the Lender in connection with this Agreement.

       

      (g)     KYC Information.   Upon the reasonable request of the Lender made at least five days prior to the Closing Date, the Borrower shall have provided to such Lender, and such Lender shall be reasonably satisfied with, the
          documentation and other information so requested in connection with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act, in each case at least three days prior to the
          Closing Date.

       

      
        25

        
          

      

      ARTICLE V

      REPRESENTATIONS AND WARRANTIES

       

      The Borrower represents and warrants to the Lender, as of the date hereof:

       

      (a)     Each of the Borrower and its Subsidiaries is an entity
          duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable and is duly qualified to do business in, and is in good standing in, all other jurisdictions where the
          nature of its business or the nature of property owned or used by it makes such qualification necessary, except where such failure would not result in a Material Adverse Effect.  Each of the Borrower and its Subsidiaries has all requisite
          corporate (or other applicable) powers and authority to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted.

       

      (b)    The execution, delivery and performance by the Borrower
          and, where applicable, each Subsidiary of this Agreement and each Loan Document to which it is a party are within the Borrower’s or such Subsidiary’s corporate (or other applicable) powers, have been duly authorized by all necessary corporate (or
          other applicable) action, do not contravene (i) the Borrower’s or such Subsidiary’s certificate of incorporation (or other applicable formation document or operating agreement), (ii) any law, rule or regulation applicable to the Borrower or such
          Subsidiary or (iii) any contractual or legal restriction binding on or affecting the Borrower or such Subsidiary, and will not result in or require the imposition of any lien or encumbrance on, or security interest in, any property (including,
          without limitation, accounts or contract rights) of the Borrower or its Subsidiaries, except as provided or permitted in this Agreement and any other the Loan Document.

       

      (c)     No Governmental Action is required for the execution or
          delivery by the Borrower or its Subsidiaries of this Agreement, any other Loan Document to which it is a party or for the performance by the Borrower or its Subsidiaries of its obligations under this Agreement or any other Loan Document to which
          it is a party other than those which have previously been duly obtained, are in full force and effect, are not subject to any pending or, to the knowledge of the Borrower, threatened appeal or other proceeding seeking reconsideration and as to
          which all applicable periods of time for review, rehearing or appeal with respect thereto have expired.

       

      (d)    This Agreement and each Loan Document to which the
          Borrower or any Subsidiary is a party is a legal, valid and binding obligation of the Borrower or Subsidiary party thereto, enforceable against the Borrower or applicable Subsidiary in accordance with its respective terms, subject to the effect
          of bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other similar laws of general application affecting rights and remedies of creditors generally.

       

      (e)     Except as disclosed in the Disclosure Documents, there
          is no pending or, to the Borrower’s knowledge, threatened action or proceeding (including, without limitation, any proceeding relating to or arising out of Environmental Laws) affecting the Borrower or any of its Subsidiaries before any court,
          governmental agency or arbitrator that has a reasonable possibility of resulting in a Material Adverse Effect.

       

      (f)     The audited consolidated balance sheet of the Borrower
          and its Consolidated Subsidiaries, as at December 31, 2018, and the related consolidated statements of income, retained earnings and cash flows of the Borrower and its Consolidated Subsidiaries for the fiscal year then ended, and the unaudited
          consolidated balance sheet of the Borrower and its Consolidated Subsidiaries, as at March 31, 2019 and June 30, 2019, and the related consolidated statements of income, retained earnings and cash flows of the Borrower and its Consolidated
          Subsidiaries for the fiscal quarters then ended, copies of each of which have been furnished to the Lender, fairly present (subject, in the case of such balance sheets and statements or income for the fiscal quarter ended March 31, 2019 and June
          30, 2019, to year-end adjustments) in all material respects the financial condition of the Borrower and its Consolidated Subsidiaries as at such dates and the results of the operations of the Borrower and its Consolidated Subsidiaries for the
          periods ended on such dates, all in accordance with GAAP consistently applied.  Since December 31, 2018, there has been no Material Adverse Effect, or material adverse change in the facts and information regarding such entities as represented to
          the Closing Date.

       

      
        26

        
          

      

      (g)      The making of Loans and the use of the proceeds
          thereof will comply with all provisions of Applicable Law in all material respects.

       

      (h)     Neither the Borrower nor any Subsidiary of the Borrower
          is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

       

      (i)       Reserved.

       

      (j)      Neither the Borrower nor its Subsidiaries is engaged
          in the business of extending credit for the purpose of buying or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Loan will be used to buy or carry
          any margin stock or to extend credit to others for the purpose of buying or carrying any margin stock.

       

      (k)      Compliance with ERISA as follows:

       

      (i)       The Borrower
          and each ERISA Affiliate are in compliance with all applicable provisions of ERISA, the Code and the regulations and published interpretations thereunder with respect to all Plans except where a failure to so comply could not reasonably be
          expected to have a Material Adverse Effect. Each Plan (other than a Multiemployer Plan) that is intended to be qualified under Section 401(a) of the Code has been determined by the Internal Revenue Service to be so qualified, and each trust
          related to such plan has been determined to be exempt under Section 501(a) of the Code, except for such plans that have not yet received determination letters but for which the remedial amendment period for submitting a determination letter has
          not yet expired or, if the remedial amendment period has expired, where a determination letter submission was timely made.  No liability has been incurred by the Borrower or any ERISA Affiliate which remains unsatisfied for any taxes or penalties
          with respect to any Plan or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material Adverse Effect;

       

      (ii)       Except where
          failure of any of the following representations to be correct could not reasonably be expected to have a Material Adverse Effect, no Pension Plan has been terminated, nor has any unpaid minimum required contributions (as defined in Section 430 of
          the Code) (without regard to any waiver granted under Section 430 of the Code), nor has any funding waiver from the Internal Revenue Service been received or requested with respect to any Pension Plan, nor has the Borrower or any ERISA Affiliate
          failed to make any contributions or to pay any amounts due and owing as required by Section 430 of the Code, Section 303 of ERISA or the terms of any Pension Plan prior to the due dates of such contributions under Section 430 of the Code or
          Section 303 of ERISA, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan;

       

      
        27

        
          

      

      (iii)      Except where
          the failure of any of the following representations to be correct could not reasonably be expected to have a Material Adverse Effect, neither the Borrower nor any ERISA Affiliate has:  (A) engaged in a nonexempt prohibited transaction described
          in Section 406 of the ERISA or Section 4975 of the Code; (B) incurred any liability to the PBGC which remains outstanding, other than the payment of premiums and there are no premium payments which are due and unpaid; or (C) failed to make a
          required contribution or payment to a Multiemployer Plan;

       

      (iv)       No ERISA
          Event has occurred or is reasonably expected to occur; and

       

      (v)       Except where
          the failure of any of the following representations to be correct could not reasonably be expected to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or, to the
          knowledge of the Borrower, investigation is existing or, to the knowledge of the Borrower, threatened concerning or involving any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by
          the Borrower or any ERISA Affiliate, (B) Pension Plan or (C) Multiemployer Plan.

       

      (l)      The Borrower and its Subsidiaries have filed all Tax
          returns (federal, state and local) required to be filed and paid all Taxes due, including interest and penalties, except to the extent that the Borrower or any such Subsidiary is diligently contesting any such Taxes in good faith and by
          appropriate proceedings, and for which adequate reserves for payment thereof have been established.

       

      (m)     No event has occurred or is continuing which
          constitutes a Default or an Event of Default, or which constitutes, or which with the passage of time or giving of notice or both would constitute, a default or event of default by the Borrower or Subsidiary thereof under any material agreement
          or contract, judgment, decree or order by which the Borrower or any of its respective properties may be bound or which would require the Borrower or Subsidiary thereof to make any payment thereunder prior to the scheduled maturity date therefor,
          where such default could reasonably be expected to result in a Material Adverse Effect.

       

      (n)      As of the Closing Date, the Borrower and each of its
          Subsidiaries will be Solvent.

       

      (o)    As of the Closing Date, the capitalization of the
          Borrower and each Significant Subsidiary of the Borrower consists of the Capital Stock, authorized, issued and outstanding, of such classes and series, with or without par value, described on Schedule 5.01(o) hereto.  All such outstanding Capital Stock has been duly authorized and validly issued and is fully paid and nonassessable.  Except as set forth in the Disclosure Documents, there are no outstanding
          warrants, subscriptions, options, securities, instruments or other rights of any type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit the issuance of, Capital Stock of the Borrower or any
          Subsidiary of the Borrower or are otherwise exercisable by any Person.

       

      (p)     The Borrower and each Subsidiary of the Borrower has
          good and marketable title to all material assets and other property purported to be owned by it, except for any Permitted Liens.

       

      (q)      None of the properties or assets of the Borrower is
          subject to any Lien, except Permitted Liens.

       

      
        28

        
          

      

      (r)     All written information, reports and other papers and
          data produced by or on behalf of the Borrower and furnished to the Lender in connection with the matters covered by this Agreement were, at the time the same were so furnished, complete and correct in all material respects.  No document furnished
          or written statement made to the Lender by the Borrower in connection with the negotiation, preparation or execution of this Agreement or any other Loan Documents contains any untrue statement of a fact material to the creditworthiness of the
          Borrower or its Subsidiaries or omits to state a fact necessary in order to make the statements contained therein not misleading.

       

      (s)      The performance of this Agreement and the transactions
          contemplated herein will not affect the status of any Bonds as being exempt from federal income tax under the Code.

       

      (t)     Neither the Borrower, nor any of its Subsidiaries, nor,
          to the knowledge of the Borrower and its Subsidiaries, any director, officer, employee, agent, Affiliate or representative thereof, is an individual or entity that is, or is owned or controlled by one or more individuals or entities that are (i)
          currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals or HMT’s Consolidated List of Financial Sanctions Targets, or any similar list enforced by any other relevant sanctions authority
          having jurisdiction over the Borrower or any of its Subsidiaries or (iii) located, organized or resident in a Designated Jurisdiction.  The Borrower and its Subsidiaries have conducted their businesses in compliance in all material respects with
          all applicable Sanctions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such Sanctions.

       

      (u)     The Borrower and its Subsidiaries have conducted their
          businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other applicable anti-corruption legislation in other jurisdictions having jurisdiction over the Borrower
          or its Subsidiaries and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

       

      (v)     Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect, all properties now or in the past owned, leased or operated by the Borrower and each
          Subsidiary thereof do not contain, and to their knowledge have not previously contained, any Hazardous Materials in amounts or concentrations which (A) constitute or constituted a violation of applicable Environmental Laws or (B) could give rise
          to liability under applicable Environmental Laws.

       

      (w)    Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect, to the knowledge of the Borrower and its Subsidiaries, the Borrower and each
          Subsidiary thereof and such properties and all operations conducted in connection therewith are in compliance, and have been in compliance, with all applicable Environmental Laws, and there is no contamination at, under or about such properties
          or such operations which could interfere with the continued operation of such properties or impair the fair saleable value thereof.

       

      (x)     Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect, neither the Borrower nor any Subsidiary thereof has received any written or verbal
          notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws, nor does the Borrower or any Subsidiary thereof have knowledge
          or reason to believe that any such notice will be received or is being threatened.

       

      
        29

        
          

      

      (y)     Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect, to the knowledge of the Borrower and its Subsidiaries, Hazardous Materials have not
          been disposed of, on or transported to or from the properties now or in the past owned, leased or operated by the Borrower or any Subsidiary thereof in violation of, or in a manner or to a location which could give rise to liability under,
          Environmental Laws, nor have any Hazardous Materials been generated, treated, stored or disposed of at, on or under any of such properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws.

       

      (z)     Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect, no judicial proceedings or governmental or administrative action is pending, or, to
          the knowledge of the Borrower, threatened, under any Environmental Law to which the Borrower or any Subsidiary thereof is or will be named as a potentially responsible party with respect to such properties or operations conducted in connection
          therewith, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Borrower, any
          Subsidiary thereof or such properties or such operations that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

       

      (aa)    Except as disclosed in the Disclosure Documents or to
          the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect, there has been no release, or to the Borrower’s knowledge, threat of release, of
          Hazardous Materials at or from properties owned, leased or operated by the Borrower or any Subsidiary, now or in the past, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws.

       

      (bb)    The Borrower is not an EEA Financial Institution.

       

      (cc)    The Borrower is not a Covered Party, as defined in
          Section 9.19.

       

      ARTICLE VI

      COVENANTS

       

      
        	
                6.01

              	
                Affirmative Covenants

              

      

       

      Until the Obligations have been finally and indefeasibly paid and satisfied in full, the Borrower will, and will cause each of the Subsidiaries to,
        unless the Lender otherwise consents in writing:

       

      (a)     Preservation of Existence, Etc.  Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its corporate or company, as applicable, existence, material rights (statutory and otherwise) and
          franchises, and take such other action as may be necessary or advisable to preserve and maintain its right to conduct its business in the states where it shall be conducting its business, except where failure to do so does not result in, or could
          not reasonably be expected to have, a Material Adverse Effect.

       

      (b)     Maintenance of Properties, Etc.  Maintain, and cause each of its Subsidiaries to maintain, good and marketable title to all of its properties which are used or useful in the conduct of its business, and preserve,
          maintain, develop and operate, and cause each of its Subsidiaries to preserve, maintain, develop and operate, in substantial conformity with all laws and material contractual obligations, all such properties in good working order and condition,
          ordinary wear and tear excepted, except where such failure would not result in a Material Adverse Effect.

       

      
        30

        
          

      

      (c)     Ownership.  Cause the Borrower to own, directly or indirectly, at all times, 100% of the Capital Stock having voting rights of South Jersey Gas and Elizabethtown.

       

      (d)     Compliance with Material Contractual Obligations, Laws, Etc.  Comply, and cause each of its Subsidiaries to comply, with the requirements of all material contractual obligations and all applicable laws, rules, regulations
          and orders, the failure to comply with which could reasonably be expected to result in a Material Adverse Effect, such compliance to include, without limitation, paying before the same become delinquent all Taxes, assessments and governmental
          charges imposed upon it or upon its property except to the extent diligently contested in good faith and by appropriate proceedings and for which adequate reserves for the payment thereof have been established, and complying with the requirements
          of all applicable Environmental Laws, and other health and safety matters.

       

      (e)    Insurance.  Maintain, and cause each of its Subsidiaries to maintain, insurance with financially sound and reputable insurance companies or associations in such amounts and covering such risks as are usually carried by
          companies engaged in the same or similar businesses and similarly situated.

       

      (f)      Visitation Rights; Keeping of Books.  At any reasonable time and from time to time, upon reasonable advance notice, permit the Lender or any agents or representatives thereof, to examine and make copies of and abstracts
          from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their respective officers
          or directors and with their respective independent certified public accountants and keep proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and liabilities of the
          Borrower in accordance with GAAP, consistent with the procedures applied in the preparation of the financial statements referred to in Section 5.01(f) hereof.

       

      (g)    Transactions with Affiliates.  Conduct, and cause each of its Subsidiaries to conduct, all transactions otherwise permitted under this Agreement with any of its Affiliates on terms that are fair and reasonable and no less
          favorable to the Borrower or such Subsidiary than it would obtain in a comparable arm’s‐length transaction with a Person not an Affiliate.

       

      (h)    Use of Proceeds.  Use the proceeds of the Loan for general corporate purposes, including without limitation, working capital needs of the Borrower or its Subsidiaries.

       

      (i)       Loan Documents.  Perform and comply in all material respects with each of the provisions of each Loan Document to which it is a party.

       

      (j)      Risk Management.  Perform and comply in all material respects, and require its Subsidiaries to perform and comply in all material respects, with any risk management policies developed by the Borrower, including such
          policies, if applicable, related to (i) the retail and wholesale inventory distribution and trading procedures and (ii) dollar and volume limits.

       

      (k)     Anti-Corruption and Sanctions Compliance.  Comply with any obligations that it may have under any Anti-Corruption Laws and maintain in effect and enforce policies and procedures designed to promote and achieve compliance
          by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. In the event that the Borrower becomes aware that it is not in compliance with any applicable
          Sanctions or Anti-Corruption Laws, the Borrower shall notify the Lender and diligently take all actions required thereunder to become compliant.

       

      
        31

        
          

      

      (l)      Further Assurances.  At the expense of the Borrower, promptly execute and deliver, or cause to be promptly executed and delivered, all further instruments and documents, and take and cause to be taken all further action
          that may be reasonably necessary to enable the Lender to enforce the terms and provisions of this Agreement and the Loan Documents and to exercise their rights and remedies hereunder.  In addition, the Borrower will use all reasonable efforts to
          duly obtain Governmental Actions required from time to time on or prior to such date as the same may become legally required, and thereafter to maintain all such Governmental Actions in full force and effect, except where such failure would not
          result in a Material Adverse Effect.

       

      (m)    Compliance with ERISA.  (i) Except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) comply with applicable provisions of ERISA and
          the regulations and published interpretations thereunder with respect to all Plans, (B) not take any action or fail to take action the result of which could reasonably be expected to result in a liability to the PBGC or to a Multiemployer Plan,
          (C) not participate in any prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and (D) operate each Plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any
          liability to any qualified beneficiary as defined in Section 4980B of the Code and (ii) furnish to the Lender upon its request such additional information about any Plan as may be reasonably requested by the Lender.

       

      (n)     Environmental Notices. The Borrower shall furnish to the Lender prompt written notice of all Environmental Liabilities known to the Borrower, all pending, or to the knowledge of the Borrower, threatened or anticipated
          Environmental Proceedings, Environmental Notices, Environmental Judgments and Orders, and Environmental Releases at, on, in, under or in any way affecting its properties or, to the extent the Borrower has actual notice thereof, any adjacent
          property, and all facts, events or conditions that could lead to any of the foregoing; provided that the Borrower shall not be required to give such notice unless it
          reasonably believes that any of the foregoing, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

       

      (o)     Environmental Matters. Except where it could not reasonably be expected to have a Material Adverse Effect, the
          Borrower will not use, produce, manufacture, process, generate, store, dispose of, manage at, or ship or transport to or from its properties any Hazardous Materials other than as disclosed to the Lender in writing at or prior to the Closing Date
          except for (i) Hazardous Materials used, produced, manufactured, processed, generated, stored, disposed of or managed in the ordinary course of business in material compliance with all applicable Environmental Requirements or (ii) other Hazardous
          Materials the unlawful handling, discharge or disposal of which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

       

      (p)    Environmental Release. Upon becoming aware of the occurrence of an Environmental Release that could reasonably be expected to have a Material Adverse Effect, the Borrower will promptly investigate the extent of, and
          comply in all material respects with all applicable federal, state and local statutes, rules, regulations, orders and other provisions of law relating to Hazardous Materials, air emissions, water discharge, noise emission and liquid disposal, and
          other environmental, health and safety matters, other than those the noncompliance with which would not have a Material Adverse Effect.

       

      
        32

        
          

      

      (q)     Anti-Money-Laundering. Promptly following any request therefor, provide information and documentation reasonably requested by the Lender for purposes of compliance with applicable “know your customer” and
          anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act.

       

      
        	
                6.02

              	
                Negative Covenants.

              

      

       

      Until all of the Obligations have been finally and indefeasibly paid and satisfied in full, the Borrower will not, and will not cause or permit any
        of its Subsidiaries, unless the Lender otherwise consents in writing to:

       

      (a)     Liens, Etc.  Except as permitted in Section 6.02(c), create, incur, assume, or suffer to exist, or permit any of its Subsidiaries to create,
          incur, assume, or suffer to exist, any Lien other than Permitted Liens.

       

      (b)      Indebtedness.  Create or suffer, or permit any Subsidiary to create or suffer, to exist any Indebtedness except for Permitted Indebtedness.

       

      (c)      Obligation to Ratably Secure.  Except as permitted by Section 6.02(a), create or suffer to exist, or permit any of its Subsidiaries to create
          or suffer to exist, any Lien other than a Permitted Lien, in each case to secure or provide for the payment of Indebtedness, unless, on or prior to the date thereof, the Borrower shall have (i) pursuant to documentation reasonably satisfactory to
          the Lender, equally and ratably secured the Obligations of the Borrower under this Agreement by a Lien reasonably acceptable to the Lender, and (ii) caused the creditor or creditors, as the case may be, in respect of such Indebtedness to have
          entered into an intercreditor agreement in form, scope and substance reasonably satisfactory to the Lender.

       

      (d)    Mergers, Etc.  Merge or consolidate with or into any Person, or permit any of its Subsidiaries to do so, except that (i) any Subsidiary of the Borrower may merge or consolidate with or into, any other Subsidiary of the
          Borrower and (ii) any Subsidiary of the Borrower may merge or consolidate with and into the Borrower; provided, that the Borrower is the surviving
          corporation; provided, further, that in each case, immediately
          after giving effect to such proposed transaction, no Event of Default or Default would exist.

       

      (e)     Sale of Assets, Etc.  Sell, transfer, lease, assign or otherwise convey or dispose, or permit any Subsidiary to sell, transfer, lease, assign or otherwise convey or dispose, of assets (whether now owned or hereafter
          acquired), in any single transaction or series of transactions, whether or not related having an aggregate book value in excess of 10% of the Consolidated assets of the Borrower and its Consolidated Subsidiaries, except for dispositions of
          capital assets in the ordinary course of business as presently conducted.

       

      (f)      Restricted Investments.  Other
            than in the ordinary course of business (i) make or permit to exist any loans or advances to, or any other investment in, any Person except for investments in Permitted Investments, or (ii) acquire any assets or property of any other Person.

       

      (g)     New Business.  Permit the Borrower or any of its Subsidiaries to enter into any business, in any material respect, which is not similar to that existing on the Closing Date.

       

      (h)     Distributions.  Pay any dividends on or make any other distributions in respect of any Capital Stock or redeem or otherwise acquire any such Capital Stock; provided, that (i) any Subsidiary of the Borrower may pay regularly scheduled dividends or make other distributions to the Borrower; and (ii) if no Default or Event of Default exists or would result therefrom, the
          Borrower may pay distributions or dividends in either cash or Capital Stock or may redeem or otherwise acquire Capital Stock.

       

      
        33

        
          

      

      (i)      Constituent Documents, Etc.  Change in any material respect the nature of its certificate of incorporation, bylaws, or other similar documents, or accounting policies or accounting practices (except as required or
          permitted by the Financial Accounting Standards Board or GAAP).

       

      (j)       Fiscal Year.  Change its fiscal year.

       

      (k)    Sanctions.   Directly or indirectly, use the Loan or the proceeds of the Loan, or lend, contribute or otherwise make available the Loan or the proceeds of the Loan to any Person, to fund any activities of or business with
          any Person, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether or
          otherwise) of Sanctions.

       

      (l)      Anti-Corruption Laws.   Directly or indirectly, use the Loan or the proceeds of the Loan for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other
          similar anti-corruption legislation in other jurisdictions with jurisdiction over the Borrower or its Subsidiaries (the “Anti-Corruption Laws”).

       

      
        	
                6.03

              	
                Reporting Requirements.

              

      

       

      So long as any Loans shall be outstanding hereunder or the Borrower shall have any obligation to pay any amount to the Lender hereunder, the
        Borrower will provide to the Lender, unless the Lender shall otherwise consent in writing, the following:

       

      (a)     as soon as available and in any event within sixty (60)
          days after the end of each of the first three quarters of each fiscal year of the Borrower, commencing with the fiscal quarter ending September 30, 2019, a consolidated and consolidating balance sheet of the Borrower and its Consolidated
          Subsidiaries as at the end of such quarter and consolidated and consolidating statements of income, retained earnings and cash flows of the Borrower and its Consolidated Subsidiaries for the period commencing at the end of the previous fiscal
          year and ending with the end of such quarter, all in reasonable detail and duly certified by the chief financial officer or the treasurer of the Borrower as fairly presenting in all material respects the financial condition of the Borrower and
          its Consolidated Subsidiaries as at such date and the results of operations of the Borrower and its Consolidated Subsidiaries for the periods ended on such date, except for normal year-end adjustments, all in accordance with GAAP consistently
          applied (for purposes hereof delivery of the Borrower’s appropriately completed Form 10-Q will be sufficient in lieu of delivery of such consolidated balance sheet and consolidated statements of income, retained earnings and cash flows), together
          with a Compliance Certificate, in the form of Exhibit A, of the chief financial officer or the treasurer of the Borrower (i) demonstrating and certifying compliance by the Borrower with the covenant set forth in Section 6.04 and (ii) stating that
          no Event of Default or Default has occurred and is continuing or, if an Event of Default or Default has occurred and is continuing, a statement as to the nature thereof and the action which the Borrower has taken and proposes to take with respect
          thereto;

       

      
        34

        
          

      

      (b)     as soon as available and in any event within one
          hundred five (105) days after the end of each fiscal year of the Borrower, a copy of the annual report for such year for the Borrower and its Consolidated Subsidiaries, containing consolidated and consolidating financial statements for such year
          certified by, and accompanied by an unqualified opinion of, independent public accountants reasonably acceptable to the Lender (for purposes hereof, delivery of the Borrower’s appropriately completed Form 10-K will be sufficient in lieu of
          delivery of such financial statements), together with a Compliance Certificate, in the form of Exhibit A, of the chief financial officer or the treasurer of the Borrower (i) demonstrating and certifying compliance by the Borrower with the
          covenant set forth in Section 6.04 and (ii) stating that no Event of Default or Default has occurred and is continuing or, if an Event of Default or Default has occurred and is continuing, a statement as to the nature thereof and the action which
          the Borrower has taken and proposes to take with respect thereto;

       

      (c)     as soon as possible and in any event within five (5)
          days after the occurrence of each Event of Default and each Default known to the Borrower, a statement of the chief financial officer or treasurer of the Borrower setting forth details of such Event of Default or Default and the action which the
          Borrower has taken and proposes to take with respect thereto;

       

      (d)     upon the Borrower obtaining knowledge of the following,
          the Borrower will give written notice to the Lender promptly (and in any event within ten (10) Business Days) of any of the following: (i) any unfavorable determination letter from the Internal Revenue Service regarding the qualification of an
          Plan under Section 401(a) of the Code (along with a copy thereof); (ii) all notices received by the Borrower or any ERISA Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a trustee appointed to administer any Pension Plan;
          (iii) all notices received by the Borrower or any ERISA Affiliate from a Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability in the amount of at least $1,000,000 pursuant to Section 4202 of ERISA; and (iv) the
          Borrower or any ERISA Affiliate has filed or intends to file a notice of intent to terminate any Pension Plan under a distress termination within the meaning of Section 4041(c) of ERISA;

       

      (e)     as soon as possible and in any event within five (5)
          days after the Borrower becomes aware of the occurrence thereof, notice of all actions, suits, proceedings or other events (i) of the type described in Section 5.01(e) or (ii) for which the Lender will be entitled to indemnity under Section 9.04(b);

       

      (f)      as soon as possible and in any event within five (5)
          days after the sending or filing thereof, copies of all material reports that the Borrower sends to any of its security holders, and copies of all reports and registration statements which the Borrower or any of its Subsidiaries files with the
          Securities and Exchange Commission or any national securities exchange;

       

      (g)    as soon as possible and in any event within five (5)
          days after requested, such other information respecting the business, properties, assets, liabilities (actual or contingent), results of operations, prospects, condition or operations, financial or otherwise, of the Borrower or any Subsidiary
          thereof as Lender may from time to time reasonably request;

       

      (h)    from time to time and promptly upon each request,
          information with respect to the Borrower as a Lender may reasonably request in order to comply with the Patriot Act;

       

      (i)      promptly, upon knowledge of any change in the Debt
          Rating, a certificate stating that the Debt Rating has changed with evidence of the new Debt Rating.

       

      Information required to be delivered pursuant to this Section 6.03 shall be deemed to have been delivered if such information shall be available on
        the website of the Securities and Exchange Commission at http://www.sec.gov and the Borrower shall have notified the Lender of the availability of all Form 10-Q and Form 10-K reports; provided
            that, if requested by the Lender, the Borrower shall deliver a paper copy of such information to the Lender.  Information required to be delivered pursuant to this Section
            6.3 may also be delivered by electronic communications pursuant to procedures reasonably approved by the Lender.

       

      
        35

        
          

      

      
        	
                6.04

              	
                Financial Covenants.

              

      

       

      So long as the Borrower shall have any obligation to pay any amount to the Lender hereunder, the Borrower will maintain as of the end of each fiscal
        quarter a ratio of Indebtedness of the Borrower and its Subsidiaries on a Consolidated basis to Consolidated Total Capitalization of not more than 0.70 to 1.0.

       

      ARTICLE VII

      RESERVED.

       

      ARTICLE VIII

      EVENTS OF DEFAULT

       

      
        	
                8.01

              	
                Events of Default.

              

      

       

      Each of the following events should they occur and be continuing shall constitute an “Event
          of Default”:

       

      (a)     The Borrower shall fail to pay (i) any amount of
          principal when the same becomes due and payable or (ii) any interest, fees or any other amount payable hereunder within five (5) Business Days of when the same becomes due and payable; or

       

      (b)     Any representation or warranty made by or on behalf of
          the Borrower or any Subsidiary in this Agreement or any Loan Document or by or on behalf of the Borrower or any Subsidiary (or any of their officers) in connection with this Agreement or any Loan Document shall prove to have been incorrect in any
          material respect when made or deemed made; or

       

      (c)     The Borrower shall fail (i) to perform or observe any
          term, covenant or agreement contained in Section 6.01(a), (c), (e), (g), (h), (i) or (j), Section 6.02(a), (b), (c), (d), (e), (f), (g), (h), (j) or (k), Section 6.03 or Section 6.04, or (ii) to perform or observe any other term, covenant or
          agreement contained in this Agreement (other than obligations specifically set forth elsewhere in this Section 8.01) on its part to be performed or observed if the failure to perform or observe such other term, covenant or agreement, shall remain
          unremedied for thirty (30) days after written notice thereof shall have been given to the Borrower by the Lender; or

       

      (d)    The Borrower or any Significant Subsidiary thereof shall
          fail to pay any principal of or premium or interest on any Indebtedness (other than Indebtedness incurred under this Agreement) thereof in the aggregate (for all such Persons) in excess of $25,000,000, when the same becomes due and payable
          (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Indebtedness; or any
          other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such
          event or condition is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required
          prepayment), prior to the stated maturity thereof; or

       

      
        36

        
          

      

      (e)    The Borrower or any Significant Subsidiary thereof shall
          generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors, or any proceeding shall be instituted by or against the
          Borrower or a Significant Subsidiary thereof seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law
          relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its
          property and, in the case of any such proceeding instituted against it (but not instituted by it), such proceeding shall remain undismissed or unstayed for a period of forty-five (45) days, or any of the actions sought in such proceeding
          (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur or the Borrower or a
          Significant Subsidiary thereof shall consent to or acquiesce in any such proceeding; or the Borrower or a Significant Subsidiary thereof shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or

       

      (f)     Any
          judgments or orders for the payment of money in excess of $25,000,000 (in the aggregate) shall be rendered against the Borrower or any Significant Subsidiary thereof and either (i) enforcement proceedings shall have been commenced by any creditor
          upon any such judgment or order or (ii) there shall be any period of ten (10) consecutive days during which a stay of enforcement of any such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

       

      (g)     The obligations of the Borrower or any Subsidiary under
          this Agreement, any other Loan Document shall become unenforceable, or the Borrower or any Subsidiary, or any court or governmental or regulatory body having jurisdiction over the Borrower or any Subsidiary, shall so assert in writing or the
          Borrower or any Subsidiary shall contest in any manner the validity or enforceability thereof; or

       

      (h)     The occurrence of an ERISA Event; or

       

      (i)      Any Governmental Approval related to the Borrower or
          any Subsidiary shall be rescinded, revoked, otherwise terminated, or amended or modified in any manner which is materially adverse to the interests of the Lender; or

       

      (j)       An “Event of Default” or “Default” under the SJG
          Credit Agreement or the Elizabethtown Credit Agreement; or

       

      (k)      A Change in Control shall occur.

       

      
        	
                8.02

              	
                Remedies upon Event of Default.

              

      

       

      If any Event of Default occurs and is continuing, the Lender may take any or all of the following actions upon notice to the Borrower:

       

      (a)     declare the unpaid principal amount of all outstanding
          Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling
          such obligations) to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; and

       

      
        37

        
          

      

      (b)      exercise all rights and remedies available to it under
          the Loan Documents or Applicable Law or equity;

       

      provided, however,
        that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of the Lender to make Loans shall automatically terminate, the unpaid principal
        amount of all outstanding Loans and all interest and other amounts (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling such obligations) as aforesaid shall automatically become due and
        payable.

       

      
        	
                8.03

              	
                Application of Funds.

              

      

       

      After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable) or if at any
        time insufficient funds are received by and available to the Lender to pay fully all Obligations then due hereunder, any amounts received on account of the Obligations shall be applied by the Lender in its sole discretion.

       

      ARTICLE IX

      MISCELLANEOUS

       

      
        	
                9.01

              	
                Amendments, Etc.

              

      

       

      No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom,
        shall be effective unless in writing and signed by the Lender and the Borrower, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

       

      
        	
                9.02

              	
                Notices; Effectiveness; Electronic Communications.

              

      

       

      (a)     Notices Generally.  Except in the case of notices and
          other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier
          service, mailed by certified or registered mail or sent by fax transmission or e-mail transmission as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable
          telephone number, to the address, fax number, e-mail address or telephone number specified for the Borrower or the Lender on Schedule 1.01(a).

       

      Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when
        received; notices and other communications sent by fax transmission shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of
        business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below shall be effective as provided in such subsection (b).

       

      (b)   Electronic Communications.  Notices and other
          communications to the Lender hereunder may be delivered or furnished by electronic communication (including e-mail, FPML messaging and Internet or intranet websites) pursuant to procedures approved by the Lender.  The Lender or the Borrower may
          each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or
          communications.

       

      
        38

        
          

      

      Unless the Lender otherwise prescribes, (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), and (ii) notices and other communications posted to an Internet or intranet website
        shall be deemed received by the intended recipient upon the sender’s receipt  of an acknowledgement by the intended recipient (such as by the “return receipt requested” function, as available, return email address or other written acknowledgement)
        indicating that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii), if such notice,
        email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

       

      (c)     Change of Address, Etc.  Each of the Borrower and the
          Lender may change its address, fax number or telephone number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

       

      (d)     Reliance by Lender.  The Lender shall be entitled to
          rely and act upon any notices (including, without limitation, telephonic or electronic notices, Loan Notices and Notice of Loan Prepayment) purportedly given by or on behalf of Borrower by a Responsible Officer to the extent that, in good faith,
          the Lender reasonably believes such notice to be genuine and to have been signed, sent or otherwise authenticated by the proper person.  All telephonic notices to and other telephonic communications with the Lender may be recorded by the Lender,
          and each of the parties hereto hereby consents to such recording.  All telephonic notices to and other telephone communications with the Lender may be recorded by the Lender, and each of the parties hereto hereby consents to such recording.

       

      
        	
                9.03

              	
                No Waiver; Cumulative Remedies; Enforcement.

              

      

       

      No failure by the Lender to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any
        other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of
        any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

       

      
        	
                9.04

              	
                Expenses; Indemnity; Damage Waiver.

              

      

       

      (a)     Costs and Expenses.  .  The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Lender and its Affiliates (including the reasonable fees, charges and disbursements of outside counsel for the
          Lender), in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof, and (ii) all
          out-of-pocket expenses reasonably incurred by the Lender (including the fees, charges and disbursements of any outside counsel for the Lender), in connection with the enforcement or protection of its rights (A) in connection with this Agreement
          and the other Loan Documents, including its rights under this Section, or (B) in connection with Loan made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loan.

       

      
        39

        
          

      

      (b)   Indemnification by the Borrower.  The Borrower shall indemnify the Lender and each Related Party (each such Person being called an “Indemnitee”)
          against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the fees, charges and disbursements of any outside counsel for any Indemnitee), reasonably incurred by any
          Indemnitee or asserted against any Indemnitee by any Person (including the Borrower) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
          contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or the administration of this Agreement and the
          other Loan Documents, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by Borrower  or any of its Subsidiaries, or
          any Environmental Liability related in any way to Borrower  or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any
          other theory, whether brought by a third party or by the Borrower, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not,
          as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
          negligence or willful misconduct of an  Indemnitee or (y) result from a claim brought by the Borrower or any Subsidiary thereof against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan
          Document, if the Borrower or such Subsidiary has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

       

      (c)     Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, the Borrower shall not assert, and the Borrower hereby waives, and acknowledges that no other Person shall have, 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 other Loan Document or any
          agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof.  In addition, and without limitation of the indemnity provided in this Section, the Lender agrees not to
          assert any claim against the Borrower 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 other
          Loan Document or any agreement or instrument contemplated hereby, or the transactions contemplated hereby or thereby.

       

      (d)     Payments.  All amounts due under this Section shall be payable not later than ten (10) Business Days after written demand therefor and such demand shall set forth in reasonable detail the basis for and calculation of any
          amounts claimed as owing by the Borrower.

       

      (e)     Survival.  The agreements in this Section and the indemnity provisions of Section 9.02(d) shall survive the repayment, satisfaction or discharge of all the other Obligations.

       

      
        	
                9.05

              	
                Payments Set Aside.

              

      

       

      To the extent that any payment by or on behalf of the Borrower is made to the Lender, or the Lender exercises its right of setoff, and such payment
        or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any
        Debtor Relief Law or otherwise, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had
        not occurred.

       

      
        40

        
          

      

      
        	
                9.06

              	
                Successors and Assigns.

              

      

       

      This Agreement is binding on the Borrower’s and the Lender’s successors and permitted assignees.  The Borrower agrees that it may not assign this
        Agreement without the Lender’s prior consent and the Lender may not assign or otherwise transfer any of its rights or obligation hereunder except to an assignee or participant in accordance with the provisions of this Section.  The Lender may
        assign (or sell participations in) all or a portion of its rights and obligations under this Agreement to a Person (other than a natural person); provided that
        the Lender assigns, or sells a participation, in, not less than $5,000,000 of Loans (or such lesser amount of Loans as is then outstanding to the Lender); and
          provided further that unless an Event of Default has occurred and is continuing at the time of such assignment, the Borrower has consented to such assignment or sale of participation, such consent not be unreasonably withheld, and such
        assignee or participant shall document such assignment or participation, as applicable, by executing documentation reasonably acceptable to the Borrower.  The Lender may, subject to Section 9.07, exchange information about the Borrower (including,
        without limitation, any information regarding any hazardous substances) with actual or potential participants or assignees.  If a participation is sold or the loan is assigned, the purchaser will have the right of set-off against the Borrower.
        Notwithstanding the foregoing, with respect to any participation, (i) the Lender’s obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such
        obligations, and (iii) the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and obligations under this Agreement.

       

      Any agreement or instrument pursuant to which the Lender sells such a participation shall provide that the Lender shall retain the sole right to
        enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide
        that the Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver or modification that directly affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of
        Sections 3.04 and 3.05 (subject to the requirements and limitations therein) to the same
        extent as if it were a Lender, provided that such Participant (A) agrees to be subject to Section 3.01(c) as if it were an assignee, and (B) shall not be
        entitled to receive any greater payment under Section 3.04 or 3.05 with respect to its participation than the participating Lender would have been entitled to receive. To the extent permitted by law, each Participant also shall be entitled to the
        benefits of Section 9.08 as though it were the Lender.

      

      

      
        	
                9.07

              	
                Treatment of Certain Information; Confidentiality.

              

      

       

      (a)    Treatment of Certain Information.  The Lender agrees to
          maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed
          of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties
          (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by Applicable Laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto,
          (v) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to
          an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights and obligations under this Agreement or (B) any
          actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to Borrower  and its obligations, this Agreement or payments hereunder, (vii) on a confidential
          basis to any rating agency in connection with rating Borrower  or its Subsidiaries or the credit facilities provided hereunder, (viii) with the consent of the Borrower or to the extent such Information (1) becomes publicly available other than as
          a result of a breach of this Section or (2) becomes available to the Lender or any of its Affiliates on a nonconfidential basis from a source other than the Borrower and such source is not known by the Person receiving such Information to be in
          violation of any obligation of confidentiality.  For purposes of this Section, “Information” means all information received from Borrower  or any Subsidiary relating to Borrower  or any Subsidiary or any of their respective businesses, other than
          any such information that is available to the Lender on a nonconfidential basis prior to disclosure by Borrower  or any Subsidiary, provided that, in the case of
          information received from Borrower  or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this
          Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

       

      
        41

        
          

      

      (b)     Press Releases.  The Borrower and its Affiliates agree
          that they will not in the future issue any press releases or other public disclosure using the name of the Lender or its Affiliates or referring to this Agreement or any of the Loan Documents without the prior written consent of the Lender,
          unless (and only to the extent that) the Borrower or such Affiliate is required to do so under law and then, in any event the Borrower or such Affiliate will consult with such Person before issuing such press release or other public disclosure.

       

      (c)    Customary Advertising Material.  The Borrower consents
          to the publication by the Lender of customary advertising material relating to the transactions contemplated hereby using the name, product photographs, logo or trademark of the Borrower.

       

      
        	
                9.08

              	
                Right of Setoff.

              

      

       

      If an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time
        to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at
        any time owing by the Lender or any such Affiliate to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to the Lender or
        its Affiliates, irrespective of whether or not the Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured, secured or unsecured, or
        are owed to a branch, office or Affiliate of the Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness.  The rights of the Lender and its Affiliates under this Section are in addition to other
        rights and remedies (including other rights of setoff) that the Lender or its Affiliates may have.  The Lender agrees to notify the Borrower promptly after any such setoff and application, provided that the failure to give such notice shall not
        affect the validity of such setoff and application.

       

      
        	
                9.09

              	
                Interest Rate Limitation.

              

      

       

      Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not
        exceed the maximum rate of non-usurious interest permitted by Applicable Law (the “Maximum Rate”).  If the Lender shall receive interest in an amount that exceeds the
        Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Lender exceeds the
        Maximum Rate, such Person may, to the extent permitted by Applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
        amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

       

      
        42

        
          

      

      
        	
                9.10

              	
                Counterparts; Integration; Effectiveness.

              

      

       

      This Agreement and each of the other Loan Documents may be executed in counterparts (and by different parties hereto in different counterparts),
        each of which shall constitute an original, but all of which when taken together shall constitute one and the same agreement.  This Agreement, the other Loan Documents, and any separate letter agreements with respect to fees payable to the Lender,
        constitute the entire agreement among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01,
        this Agreement shall become effective when it shall have been executed by the Lender and the Borrower and when each of the Lender and the Borrower shall have received counterparts hereof that, when taken together, bear the signature of the other. 
        Delivery of an executed counterpart of a signature page of this Agreement or any other Loan Document, or any certificate delivered thereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a
        manually executed counterpart of this Agreement or such other Loan Document or certificate.  Without limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered under the terms of any Loan
        Document, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

       

      
        	
                9.11

              	
                Survival of Representations and Warranties.

              

      

       

      All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in
        connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Lender, regardless of any investigation made by the Lender or on its behalf
        and notwithstanding that the Lender may have had notice or knowledge of any Default at the time of Borrowing, and shall continue in full force until the repayment in full of the Loans and all other amounts due under this Agreement.

       

      
        	
                9.12

              	
                Severability.

              

      

       

      If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and
        enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
        provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render
        unenforceable such provision in any other jurisdiction.

       

      
        43

        
          

      

      
        	
                9.13

              	
                Governing Law; Jurisdiction; Etc.

              

      

       

      (a)     GOVERNING LAW.  THIS AGREEMENT AND THE OTHER LOAN
          DOCUMENTS (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
          OTHER LOAN DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       

      (b)    SUBMISSION TO JURISDICTION.  THE BORROWER IRREVOCABLY
          AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE LENDER OR ANY RELATED PARTY IN ANY WAY
          RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
          DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS  AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR
          PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR
          PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE LENDER MAY
          OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

       

      (c)   WAIVER OF VENUE.  THE BORROWER IRREVOCABLY AND
          UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
          IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
          PROCEEDING IN ANY SUCH COURT.

       

      (d)   SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY
          CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

       

      
        44

        
          

      

      
        	
                9.14

              	
                Waiver of Jury Trial.

              

      

       

      EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
        LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (a)
        CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE
        OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

       

      
        	
                9.15

              	
                Reserved.

              

      

       

      
        	
                9.16

              	
                No Advisory or Fiduciary Responsibility.

              

      

       

      In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification
        hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that:  (a) (i) the services regarding this Agreement provided by the Lender and any Affiliate thereof are arm’s-length
        commercial transactions between the Borrower and its respective Affiliates, on the one hand, and the Lender and its Affiliates, on the other hand, (ii)  the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent
        it has deemed appropriate, and (iii) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (b) (i) the Lender and its Affiliates
        each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary, for Borrower or any of its respective Affiliates,
        or any other Person in connection with this Agreement and the transactions contemplated hereby and (ii) neither the Lender nor any of its Affiliates has any obligation to the Borrower or any of its respective Affiliates with respect to the
        transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (c) the Lender and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from
        those of the Borrower and its respective Affiliates, and neither the Lender nor any of its Affiliates has any obligation to disclose any of such interests to the Borrower or any of its respective Affiliates.  To the fullest extent permitted by law,
        the Borrower hereby waives and releases any claims that it may have against the Lender or any of its Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transactions contemplated
        hereby.

       

      
        	
                9.17

              	
                Electronic Execution.

              

      

       

      The words “delivery,” “execute,” “execution,” “signed,” “signature,” and words of like import in any Loan Document or any other document executed in
        connection herewith shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Lender, or the keeping of records in electronic form, each of which
        shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law,
        including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

       

      
        45

        
          

      

      
        	
                9.18

              	
                USA PATRIOT Act Notice.

              

      

       

      The Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
        October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of
        the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Act.  The Borrower agrees to, promptly following a request by the Lender, provide all such other documentation and information that the
        Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

       

      
        	
                9.19

              	
                Acknowledgment Regarding Any Supported QFCs.

              

      

       

      To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument
        that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit
        Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with
        the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

       

      (a)     In the event a Covered Entity that is party to a
          Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such
          Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special
          Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC
          Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised
          against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United
          States or a state of the United States.

       

      (b)      As used in this Section 9.19, the following terms have
          the following meanings:

       

      “BHC Act Affiliate” of a party means an “affiliate” (as such term is
        defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

       

      “Covered Entity” means any of the following:  (i) a “covered entity” as
        that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and
        interpreted in accordance with, 12 C.F.R. § 382.2(b).

       

      
        46

        
          

      

      “Default Right” has the meaning assigned to that term in, and shall be
        interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

       

      “QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C.
        5390(c)(8)(D).

       

      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

       

      
        47

        
          

      

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

       

      	
              BORROWER:

            	
              SOUTH JERSEY INDUSTRIES, INC.

            	 
	 	 	 	 
	 	
              By:

            	
              /s/ Ann T. Anthony

            	 
	 	
              Name:

            	
              Ann T. Anthony

            	 
	 	
              Title:

            	
              Vice President & Treasurer

            	 

      

      

      
        
          

      

      	 	
              BANK OF AMERICA, N.A.,

            	 
	 	
              as Lender

            	 
	 	 	 
	 	
              By:

            	
              /s/ Richard R. Powell

            	 
	 	
              Name:

            	
              Richard R. Powell

            	 
	 	
              Title:

            	
              Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00300-of-00352.parquet"}]]