Document:

Rights Plan, dated as of December 21, 2015

 Exhibit 4.1 

RIGHTS AGREEMENT 
 dated
as of 
 December 21, 2015 

between 
 BIMINI CAPITAL
MANAGEMENT, INC. 
 and 

BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC. 

Rights Agent 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
			
	 Section 1
	    	 Certain Definitions
	  	 	1	  
			
	 Section 2
	    	 Appointment of Rights Agent
	  	 	7	  
			
	 Section 3
	    	 Issuance of Rights Certificates
	  	 	7	  
			
	 Section 4
	    	 Form of Rights Certificates
	  	 	9	  
			
	 Section 5
	    	 Countersignature and Registration
	  	 	10	  
			
	 Section 6
	    	 Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates
	  	 	10	  
			
	 Section 7
	    	 Exercise of Rights; Purchase Price; Expiration Date of Rights
	  	 	11	  
			
	 Section 8
	    	 Cancellation and Destruction of Rights Certificates
	  	 	13	  
			
	 Section 9
	    	 Company Covenants Concerning Securities and Rights
	  	 	13	  
			
	 Section 10
	    	 Record Date
	  	 	15	  
			
	 Section 11
	    	 Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights
	  	 	15	  
			
	 Section 12
	    	 Certificate of Adjusted Purchase Price or Number of Shares
	  	 	22	  
			
	 Section 13
	    	 Fractional Rights and Fractional Shares
	  	 	23	  
			
	 Section 14
	    	 Rights of Action
	  	 	24	  
			
	 Section 15
	    	 Agreement of Rights Holders
	  	 	25	  
			
	 Section 16
	    	 Rights Holder Not Deemed a Stockholder
	  	 	25	  
			
	 Section 17
	    	 Concerning the Rights Agent
	  	 	26	  
			
	 Section 18
	    	 Merger, Consolidation or Change of Name of Rights Agent
	  	 	26	  
			
	 Section 19
	    	 Duties of Rights Agent
	  	 	27	  
			
	 Section 20
	    	 Change of Rights Agent
	  	 	29	  
			
	 Section 21
	    	 Issuance of New Rights Certificates
	  	 	30	  
			
	 Section 22
	    	 Redemption
	  	 	31	  

  
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	 Section 23
	    	Exchange	  	 	31	  
			
	 Section 24
	    	Notice of Certain Events	  	 	32	  
			
	 Section 25
	    	Notices	  	 	33	  
			
	 Section 26
	    	Supplements and Amendments	  	 	34	  
			
	 Section 27
	    	Successors	  	 	34	  
			
	 Section 28
	    	Determinations and Actions by the Board	  	 	35	  
			
	 Section 29
	    	Benefits of this Agreement	  	 	35	  
			
	 Section 30
	    	Severability	  	 	35	  
			
	 Section 31
	    	Governing Law	  	 	36	  
			
	 Section 32
	    	Counterparts	  	 	36	  
			
	 Section 33
	    	Descriptive Headings; Interpretation	  	 	36	  

  
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 EXHIBITS 

Exhibit A:         Form of Articles Supplementary Designating Series A Junior Preferred Stock 

Exhibit B:         Form of Rights Certificate 

Exhibit C:         Summary of Rights 

  
 - iii - 

 RIGHTS AGREEMENT 

RIGHTS AGREEMENT, dated as of December 21, 2015 (the “Agreement”), between Bimini Capital Management, Inc., a Maryland
corporation (the “Company”), and Broadridge Corporate Issuer Solutions, Inc., a Pennsylvania corporation (the “Rights Agent”). 

W I T N E S S E T H 

WHEREAS, on December 21, 2015 (the “Rights Dividend Declaration Date”), the Board authorized and declared a distribution
of one preferred share purchase right (a “Right”) for each share of Class A Common Stock, par value $0.001 per share, of the Company (the “Class A Common Stock”), one Right for each share of Class B Common
Stock, par value $0.001 per share, of the Company (the “Class B Common Stock”) and one Right for each share of Class C Common Stock, par value $0.001 per share, of the Company (“Class C Common Stock”) outstanding at
the Close of Business (as hereinafter defined) on December 21, 2015 (the “Record Date”), each Right initially representing the right to purchase one ten-thousandth of a share of Preferred Stock (as hereinafter defined) of the
Company, upon the terms and subject to the conditions hereinafter set forth, and further authorized and directed the issuance of one Right (subject to adjustment as provided herein) with respect to each share of Class A Common Stock, and each
share of Class B Common Stock and each share of Class C Common Stock issued or delivered by the Company after the Record Date but prior to the earlier of the Distribution Date (as hereinafter defined) and the Expiration Date (as hereinafter defined)
or as provided in Section 21. 
 NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereby agree
as follows: 
  

	Section 1	Certain Definitions 

 For purposes of this Agreement, the following terms shall
have the meanings indicated: 
 (a) “Acquiring Person” shall mean any Person (other than the Company, any Related Person or
any Exempt Person) that has become, in itself or, together with all Affiliates and Associates of such Person, the Beneficial Owner of 4.9% or more of the shares of Class A Common Stock then-outstanding, provided, however, that any
Person who would otherwise qualify as an Acquiring Person as of the Close of Business on the Record Date will not be deemed to be an Acquiring Person for any purpose of this Agreement on and after such date unless and until such time as such
stockholder acquires the beneficial ownership of one additional share of Class A Common Stock, and provided, further, that a Person will not be deemed to have become an Acquiring Person solely as a result of (i) a reduction
in the number of shares of Class A Common Stock outstanding, (ii) the exercise or vesting of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to its directors, officers and employees
that are held by a director, officer or employee of the Company or its Affiliates, (iii) any unilateral grant of any security by the Company approved by the Board or a committee thereof, or (iv) an Exempt Transaction, unless and until such
time, in each case, as such stockholder acquires the beneficial ownership of one additional share of Class A Common Stock. Notwithstanding the foregoing, no Person shall be an Acquiring Person unless

 
the Board shall have affirmatively determined, in its sole and absolute discretion, within ten Business Days (or such later time as the Board may determine) after such Person has otherwise met
the requirements of this Section 1(a), that such Person shall be an Acquiring Person. 
 (b) “Act” shall mean the
Securities Act of 1933, as amended. 
 (c) “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement, and to the extent not included within the foregoing clause of this Section 1(c), shall also include,
with respect to any Person, any other Person (whether or not a Related Person or an Exempt Person) whose shares of Class A Common Stock, Class B Common Stock, or Class C Common Stock would be deemed constructively owned by such first Person,
owned by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with shares owned by such first Person pursuant to the provisions of the Code, or any successor provision or
replacement provision, and the Treasury Regulations thereunder, provided, however, that a Person shall not be deemed to be the Affiliate or Associate of another Person solely because either or both Persons are or were directors or
officers of the Company. 
 (d) “Agreement” shall have the meaning set forth in the preamble of this Agreement. 

(e) “Authorized Officer” shall mean the Chief Executive Officer, President, Chief Financial Officer, Chief Investment
Officer, any Vice President, the Treasurer or the Secretary of the Company. 
 (f) A Person shall be deemed the “Beneficial
Owner” of, and to “beneficially own” any securities: 
 (i) which such Person or any of such Person’s
Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon
the exercise of conversion rights, exchange rights, warrants, options, or other rights (in each case, other than upon exercise or exchange of the Rights); provided, however, that a Person shall not be deemed the “Beneficial
Owner” of, or to “beneficially own” securities (including rights, options or warrants) which are convertible or exchangeable into Class A Common Stock until such time as the convertible or exchangeable securities are
exercised and converted or exchanged into Class A Common Stock except to the extent the acquisition or transfer of such rights, options or warrants would be treated as exercised on the date of its acquisition or transfer under
Section 1.382-4(d) of the Treasury Regulations; and, provided further, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by
such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange; 

(ii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has or shares the right to vote or
dispose of, or has “beneficial ownership” of (as defined under Rule 13d-3 of the General Rules and Regulations under the Exchange Act), 

  
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including pursuant to any agreement, arrangement or understanding (whether or not in writing), but only if the effect of such agreement, arrangement or understanding is to treat such Persons as
an “entity” under Section 1.382-3(a)(1) of the Treasury Regulations; or 
 (iii) which any other person is the Beneficial
Owner, if such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) with such other Person (or any of such other Person’s Affiliates or Associates) with respect
to acquiring, holding, voting or disposing of any securities of the Company, but only if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under Section 1.382-3(a)(1) of the Treasury
Regulations; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” any security (A) if such Person has the right to vote such security pursuant to an
agreement, arrangement or understanding (whether or not in writing) which (1) arises solely from a revocable proxy given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the
applicable rules and regulations of the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report), or (B) if such beneficial ownership arises solely as a result of such
Person’s status as a “clearing agency,” as defined in Section 3(a)(23) of the Exchange Act; provided further, however, that nothing in this Section 1(f) shall cause a Person engaged in business as an
underwriter of securities or member of a selling group to be the Beneficial Owner of, or to “beneficially own,” any securities acquired through such Person’s participation in good faith in an underwriting syndicate until the
expiration of three Business Days after the date of such acquisition, or such later date as the Board may determine in any specific case. Notwithstanding anything herein to the contrary, to the extent not within the foregoing provisions of this
Section 1(f), a Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own” or have “beneficial ownership” of, securities which such Person would be deemed to constructively own or
which otherwise would be aggregated with shares owned by such Person pursuant to Section 382 of the Code, or any successor provision or replacement provision and the Treasury Regulations thereunder. 

(g) “Board” shall mean the Board of Directors of the Company. 

(h) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the States of
New York (or such other state in which the principal office of the Rights Agent may be located) are authorized or obligated by law or executive order to close. 

(i) “Class A Common Stock” shall have the meaning set forth in the recitals of this Agreement. 

(j) “Class B Common Stock” shall have the meaning set forth in the recitals of this Agreement. 

(k) “Class C Common Stock” shall have the meaning set forth in the recitals of this Agreement. 

  
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 (l) “Close of Business” on any given date shall mean 5:00 P.M., New York City
time, on such date; provided, however, that if such date is not a Business Day, it shall mean 5:00 P.M., New York City time, on the next succeeding Business Day. 

(m) “Closing price” shall have the meaning set forth in Section 11(d) and Section 13(a) hereof, as applicable. 

(n) “Code” shall mean the Internal Revenue Code of 1986, as amended. 

(o) “Common Stock” shall mean the Class A Common Stock together with the Class B Common Stock and Class C Common Stock.

 (p) “Common Stock equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 

(q) “Company” shall have the meaning set forth in the preamble of this Agreement. 

(r) “Company’s Charter” shall mean the charter of the Company. 

(s) “Current market value of one Right” shall have the meaning set forth in Section 13(a) hereof. 

(t) “Current market value of one ten-thousandth of a share of Preferred Stock” shall have the meaning set forth in
Section 13(b) hereof. 
 (u) “Current Per Share Market Price” shall have the meaning set forth in
Section 11(d)(i) or Section 11(d)(ii) hereof, as applicable. 
 (v) “Current Value” shall have the meaning set
forth in Section 11(a)(iii) hereof. 
 (w) “Distribution Date” shall mean the earliest of (i) the Close of
Business on the tenth Business Day after the Stock Acquisition Date or (ii) the Close of Business on the tenth Business Day (or, unless the Distribution Date shall have previously occurred, such later date as may be specified by the Board)
after the commencement of a tender or exchange offer by any Person (other than the Company, any Related Person or any Exempt Person), if upon the consummation thereof such Person would be the Beneficial Owner of 4.9% or more of the then-outstanding
Class A Common Stock. 
 (x) “Equivalent Preferred Stock” shall have the meaning set forth in Section 11(b)
hereof. 
 (y) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(z) “Exchange Ratio” shall have the meaning set forth in Section 23(a) hereof. 

(aa) “Exempt Person” shall mean (i) a Person whose Beneficial Ownership (together with all Affiliates and Associates of
such Person) of 4.9% or more of the then-outstanding Class A Common Stock would not, as determined by the Board in its sole discretion, jeopardize or 

  
 - 4 - 

 
endanger the availability to the Company of its Tax Benefits or who the Board determines, in its sole and absolute discretion, should, in the best interests of the Company, be treated as an
Exempt Person; provided, however, that, any Person shall cease to be an Exempt Person as of the date that such Person ceases to beneficially own 4.9% or more of the shares of the then outstanding Class A Common Stock.
Additionally, a Person shall cease to be an Exempt Person if the Board, in its sole discretion, makes a contrary determination with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such
Person) with respect to the availability to the Company of its Tax Benefits; and provided, further, that the Board may set any terms, conditions or limitations to any determination that a Person is an Exempt Person as the Board may
determine in its sole and absolute discretion. 
 (bb) “Exempt Transaction” shall mean any transaction that the Board
determines, in its sole discretion, is exempt, which determination shall be irrevocable; provided, however, the Board may set any terms, conditions or limitations on such transaction as it determines in its sole and absolute
discretion. 
 (cc) “Expiration Date” shall mean the earliest of (i) the Final Expiration Date, (ii) the time at
which the Rights are redeemed as provided in Section 22 hereof, (iii) the time at which the Rights are exchanged as provided in Section 23 hereof, (iv) the repeal of Section 382 of the Code or any successor statute if the
Board determines in its sole and absolute discretion that this Agreement is no longer necessary for the preservation of Tax Benefits or otherwise in the best interests of the Company, (v) the beginning of a taxable year of the Company to which
the Board determines in its sole and absolute discretion that no Tax Benefits may be carried forward and (vi) the Close of Business on June 30, 2016 if Stockholder Approval has not been obtained. 

(dd) “Final Expiration Date” shall be December 21, 2025. 

(ee) “MGCL” means the Maryland General Corporation Law. 

(ff) “OTCQB” means the OTC QB marketplace on which the Company’s Common Stock is traded as of the date of this
Agreement. 
 (gg) “Nasdaq” means The Nasdaq Stock Market. 

(hh) “NYSE” means the New York Stock Exchange. 

(ii) “Person” shall mean any individual, firm, corporation, partnership, limited liability company, limited liability
partnership, trust or other legal entity, group of persons making a “coordinated acquisition” of shares or otherwise treated as an entity within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations or otherwise, and
includes any successor (by merger or otherwise) of such individual or entity. 
 (jj) “Preferred Stock” shall mean shares
of Series A Junior Preferred Stock, par value $0.001 per share, of the Company having the rights and preferences set forth in the form of Articles Supplementary to the Company’s Charter designating the Series A Junior Preferred Stock attached
hereto as Exhibit A. 

  
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 (kk) “Purchase Price” shall mean initially $4.76 per one ten-thousandth of a
share of Preferred Stock, subject to adjustment from time to time as provided in this Agreement. 
 (ll) “Record Date”
shall have the meaning set forth in the recitals to this Agreement. 
 (mm) “Redemption Price” shall mean $0.001 per Right,
subject to adjustment by the Company to reflect any stock split, stock dividend or similar transaction occurring after the date hereof. 

(nn) “Related Person” shall mean (i) any Subsidiary of the Company or (ii) any employee benefit or stock ownership
plan of the Company or of any Subsidiary of the Company or any entity holding shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, for or pursuant to the terms of any such plan. 

(oo) “Rights” shall have the meaning set forth in the recitals to this Agreement. 

(pp) “Rights Agent” shall have the meaning set forth in the preamble of this Agreement. 

(qq) “Rights Certificates” shall mean certificates evidencing the Rights, in substantially the form attached hereto as
Exhibit B. 
 (rr) “Rights Dividend Declaration Date” shall have the meaning set forth in the recitals to this
Agreement. 
 (ss) “Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii)
hereof. 
 (tt) “Securities Act” shall mean Securities Act of 1933, as amended. 

(uu) “Security” shall have the meaning set forth in Section 11(d) hereof. 

(vv) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 

(ww) “Stock Acquisition Date” shall mean the first date of public announcement (which for purposes of this definition shall
include, without limitation, a report filed pursuant to the Exchange Act) by the Company that an Acquiring Person has become such or such earlier date as the Board shall determine that a Person has become an Acquiring Person. 

(xx) “Stockholder Approval” shall mean the approval of this Agreement by the holders of the outstanding shares of Common
Stock of the Company in accordance with the Company’s Charter, the Company’s bylaws and applicable law. 
 (yy)
“Subsidiary” shall mean, with reference to any Person, any corporation or other legal entity of which a majority of the voting power of the voting equity securities or equity interests is owned, directly or indirectly, by such
Person, or otherwise controlled by such Person. 
 (zz) “Substitution Period” shall have the meaning set forth in
Section 11(a)(iii) hereof. 

  
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 (aaa) “Summary of Rights” shall mean a copy of a summary of the terms of the
Rights, in substantially the form attached hereto as Exhibit C. 
 (bbb) “Tax Benefits” shall mean the net
operating loss carry-overs, capital loss carry-overs, general business credit carry-overs, alternative minimum tax credit carry-overs and foreign tax credit carry-overs, as well as any “net unrealized built-in loss” within the meaning of
Section 382 of the Code, of the Company or any direct or indirect Subsidiary thereof. 
 (ccc) “Trading Day” shall
mean a day on which the principal national securities exchange or transaction reporting system on which the shares of Class A Common Stock are listed or admitted to trading is open for the transaction of business or, with respect to the shares
of Class B Common Stock or Class C Common Stock which are not listed or admitted to trading on any national securities exchange or transaction reporting system, a Trading Day for the Class A Common Stock. 

(ddd) “Treasury Regulations” shall mean final, temporary and proposed income tax regulations promulgated under the Code,
including any amendments thereto. 
  

	Section 2	Appointment of Rights Agent 

 The Company hereby appoints the Rights Agent to act
as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment and hereby certifies that it complies with the requirements of the OTCQB governing transfer agents and registrars. The
Company may from time to time appoint such co-rights agents as it may deem necessary or desirable. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omission of any such co-rights agent. Prior to the
appointment of a co-rights agent, the specific duties and obligations of each such co-rights agents shall be set forth in writing and delivered to the Rights Agent and the proposed co-rights agent. Any actions which may be taken by the Rights Agent
pursuant to the terms of this Agreement may be taken by any such co-rights agent. To the extent that any co-rights agent takes any action pursuant to this Agreement, such co-rights agent shall be entitled to all of the rights and protections of, and
subject to all of the applicable duties and obligations imposed upon, the Rights Agent pursuant to the terms of this Agreement. The Rights Agent will have no duty to supervise, and in no event will be liable for, the acts or omissions of any
co-rights agent. 
  

	Section 3	Issuance of Rights Certificates 

 (a) Until the Distribution Date, (i) the
Rights shall be represented (subject to Section 3(b)) by the certificates representing the shares of Common Stock, registered in the names of the record holders thereof (which certificates representing such shares of Class A Common Stock,
Class B Common Stock or Class C Common Stock shall also be deemed to be Rights Certificates), (ii) the Rights shall be transferable only in connection with the transfer of the underlying shares of Class A Common Stock, Class B Common Stock
or Class C Common Stock, and (iii) the surrender for transfer of any certificates representing such shares of Class A Common Stock, Class B Common Stock, or Class C Common Stock or in respect of which Rights have been issued shall also
constitute the transfer of the Rights associated with the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock represented by such certificates. 

  
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 (b) On, or as reasonably practicable after, the Record Date, the Rights Agent, on the
Company’s behalf, shall send by first class, postage prepaid mail, to each record holder of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock as of the Close of Business on the Record Date, at the address of such
holder shown on the records of the Company as of such date, a copy of a Summary of Rights to Purchase Preferred Stock in substantially the form attached as Exhibit C. With respect to certificates for Class A Common Stock, Class B
Common Stock or Class C Common Stock outstanding as of the Record Date, until the Distribution Date, the Rights will be represented by such certificates registered in the names of the holders thereof together with the Summary of Rights. Failure to
provide notice of the Summary of Rights on a timely basis or at all, or to have and hold a copy of such Summary of Rights, shall not invalidate the Rights or impact their transfer with the underlying shares of Class A Common Stock, Class B
Common Stock or Class C Common Stock. 
 (c) Rights shall be issued by the Company in respect of all shares of Class A Common
Stock, Class B Common Stock or Class C Common Stock (other than any shares of Class A Common Stock, Class B Common Stock or Class C Common Stock that may be issued upon the exercise or exchange of any Right) issued or delivered by the
Company after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, provided that pursuant to Section 21 hereof, Rights may be issued after the Distribution Date and before the Expiration Date. Certificates
representing such shares of Class A Common Stock, Class B Common Stock or Class C Common Stock shall have stamped on, impressed on, printed on, written on, or otherwise affixed to them a legend, in addition to any legend required by the MGCL,
the Company’s Charter or the Company’s bylaws, in substantially the following form or such similar legend as the Company may deem appropriate and is not inconsistent with the provisions of this Agreement and as do not affect the rights,
duties or responsibilities of the Rights Agent, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any national securities exchange or transaction reporting
system on which the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock may from time to time be listed or quoted: 

This certificate also represents and entitles the holder hereof to certain Rights as set forth in the Rights Agreement between Bimini Capital
Management, Inc. and Broadridge Corporate Issuer Solutions, Inc., dated as of December 21, 2015 and as amended from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of
which is on file at the principal executive offices of Bimini Capital Management, Inc. The Rights are not exercisable prior to the occurrence of certain events specified in the Rights Agreement. Under certain circumstances, as set forth in the
Rights Agreement, such Rights may be redeemed, may be exchanged, may expire, may be amended, or may be represented by separate certificates and no longer be represented by this certificate. Bimini Capital Management, Inc. shall mail to the holder of
this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after receipt of a written request therefor. Under certain circumstances as set forth in the Rights Agreement, Rights that are or were
beneficially owned by an Acquiring Person or any Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement) may become null and void. 

  
 - 8 - 

 (d) Any Rights Certificate issued pursuant to this Section 3 or Section 21 hereof that
represents Rights beneficially owned by an Acquiring Person or any of its Associates or Affiliates and any Rights Certificate issued at any time upon the transfer of any Rights to an Acquiring Person or any of its Associates or Affiliates or to any
nominee of such Acquiring Person, Associate or Affiliate and any Rights Certificate issued pursuant to Section 6 or 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall
be subject to and contain a legend in substantially the following form or such similar legend as the Company may deem appropriate and is not inconsistent with the provisions of this Agreement or as may be required to comply with any applicable law
or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed: 

The Rights represented by this Rights Certificate are or were beneficially owned by a Person who was an Acquiring Person or an Affiliate or an
Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). This Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in Section 11(a)(ii) of the Rights
Agreement. 
 (e) As promptly as practicable after the Distribution Date, the Company shall prepare and execute, the Rights Agent shall
countersign and the Company shall send or cause to be sent (and the Rights Agent will, if requested, and if provided with all necessary information, send), by first class, insured, postage prepaid mail, to each record holder of shares of
Class A Common Stock, Class B Common Stock and Class C Common Stock, as of the Close of Business on the Distribution Date (other than an Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of such holder shown
on the records of the Company, a Rights Certificate representing one Right for each share of Class A Common Stock, Class B Common Stock and Class C Common Stock so held, subject to adjustment as provided herein. As of and after the Distribution
Date, the Rights shall be represented solely by such Rights Certificates. The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if such notification is given orally, the Company shall confirm
the same in writing on or prior to the next Business Day. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively that the Distribution Date has not occurred. 

(f) In the event that the Company purchases or otherwise acquires any shares after the Record Date but prior to the Distribution Date, any
Rights associated with such shares of Class A Common Stock, Class B Common Stock and Class C Common Stock shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the shares of
Class A Common Stock, Class B Common Stock and Class C Common Stock so purchased or acquired. 
  

	Section 4	Form of Rights Certificates 

 The Rights Certificates (and the form of election to
purchase and the form of assignment to be printed on the reverse thereof) shall each be substantially in the form attached hereto as 

  
 - 9 - 

 
Exhibit B with such changes and marks of identification or designation, and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or transaction reporting system on
which the Rights may from time to time be listed or quoted, or to conform to usage. Subject to the provisions of Section 21 hereof, the Rights Certificates, whenever distributed, shall entitle the holders thereof to purchase such number of one
ten-thousandths of a share of Preferred Stock as is set forth therein at the Purchase Price; provided, however, that the Purchase Price, the number and kind of securities issuable upon exercise of each Right and the number of Rights
outstanding shall be subject to adjustments as provided in this Agreement. 
  

	Section 5	Countersignature and Registration 

 (a) The Rights Certificates shall be executed
on behalf of the Company by any Authorized Officer, either manually or by facsimile signature and shall be attested by any Authorized Officer, either manually or by facsimile signature. The Rights Certificates shall be countersigned by the Rights
Agent, either manually or by facsimile signature, and shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company
before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though
the person who signed such Rights Certificates had not ceased to be such officer of the Company, and any Rights Certificates may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate,
shall be an Authorized Officer of the Company to sign such Rights Certificate, although at the date of the execution of this Agreement any such person was not such an Authorized Officer. 

(b) Following the Distribution Date, upon receipt by the Rights Agent of written notice of the occurrence of the Distribution Date pursuant to
Section 3(e) hereof, a stockholder list and all other relevant information referred to in Section 3(e) or as reasonably requested by the Rights Agent, the Rights Agent shall keep, or cause to be kept, books for registration and transfer of
the Rights Certificates issued hereunder at its office or offices designated for such purposes and at such other offices as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange or any transaction reporting system on which the rights may from time to time be listed or quoted. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of
Rights represented on its face by each of the Rights Certificates and the date of issuance of each of the Rights Certificates. 
  

	Section 6	Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates 

(a) Subject to the provisions of Section 7(d) and Section 13 hereof, at any time after the Close of Business on the Distribution
Date, and prior to the Expiration Date, any Rights Certificate(s) (other than Rights Certificates representing Rights that may have been exchanged 

  
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pursuant to Section 23 hereof) representing exercisable Rights may be transferred, split up, combined or exchanged for another Rights Certificate(s), entitling the registered holder to
purchase a like number of one ten-thousandths of a share of Preferred Stock (or other securities, as the case may be) as the Rights Certificate(s) surrendered then entitled such holder (or former holder in the case of a transfer) to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any such Rights Certificate(s) must make such request in writing delivered to the Rights Agent, and must surrender the Rights Certificate(s) to be transferred, split up, combined
or exchanged, with the forms of assignment and certificate contained therein duly executed, at the office or offices of the Rights Agent designated for such purpose. The Rights Certificates are transferable only on the registry books of the Rights
Agent. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder shall have (i) completed and signed the
certificate contained in the form of assignment on the reverse side of such Rights Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) and the Affiliates and Associates of
such Beneficial Owner (or former Beneficial Owner) as the Company or the Rights Agent shall reasonably request and (iii) paid a sum sufficient to cover any tax or charge that may be imposed in connection with any transfer, split up, combination
or exchange or Rights Certificates as required by Section 9(d) hereof. Thereupon the Rights Agent shall countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested
registered in such name or names as may be designated by the surrendering registered holder. The Rights Agent shall promptly forward any such sum collected by it to the Company or to such Person or Persons as the Company shall specify by written
notice. The Rights Agent shall have no duty or obligation unless and until it is satisfied that all such taxes and/or charges have been paid. 

(b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a Rights Certificate, and, (i) in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and
(ii) if mutilated, upon surrender to the Rights Agent and cancellation of the Rights Certificate, the Company shall execute and deliver a new Rights Certificate of like tenor to the Rights Agent and the Rights Agent will countersign and deliver
such new Rights Certificate to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 
  

	Section 7	Exercise of Rights; Purchase Price; Expiration Date of Rights 

 (a) Except as
otherwise provided herein, the Rights shall become exercisable on the Distribution Date and prior to the Expiration Date, and thereafter the registered holder of any Rights Certificate may, subject to Section 11(a)(ii) and Section 23
hereof, exercise the Rights represented thereby in whole or in part upon surrender of the Rights Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office or agency of the Rights
Agent designated for such purpose, together with payment of the Purchase Price (including any applicable tax or charge required to be paid by the holder of such Rights Certificate in accordance with the provisions of Section 9(d)) hereof for
each one ten-thousandth of a share of Preferred Stock (or other securities, cash or assets, as the case may be) as to which the Rights are exercised. 

  
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 (b) Upon receipt of a Rights Certificate representing exercisable Rights with the form of
election to purchase and the certificate properly completed and duly executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable tax or charge required to be paid under
Section 9(d) hereof by certified check, cashier’s check, bank draft or money order payable to the order of the Company, the Rights Agent shall, thereupon promptly (i) (A) requisition from any transfer agent of the shares of
Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates representing the total number of one ten-thousandths of a share of Preferred Stock to be purchased (and the Company hereby irrevocably
authorizes and directs its transfer agent to comply with all such requests) or (B) if the Company shall have elected to deposit any shares of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent, requisition
from the depositary agent depositary receipts representing such number of one ten-thousandths of a share of Preferred Stock as are to be purchased (and the Company hereby irrevocably authorizes and directs such depositary agent to comply with all
such requests), (ii) after receipt of such certificates (or depositary receipts, as the case may be) cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as
may be designated by such holder, (iii) when appropriate, requisition from the Company or any transfer agent therefor of certificates representing the number of equivalent shares of Preferred Stock to be issued in lieu of the issuance of shares
of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, in accordance with the provisions of Section 11(a)(iii), (iv) when appropriate, after receipt of such certificates, cause the same to be
delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, (v) when appropriate, requisition from the Company of the amount of cash to be paid in
lieu of the issuance of fractional shares in accordance with the provisions of Section 13 hereof, and (vi) when appropriate, after receipt, deliver such cash to the registered holder of such Rights Certificate. 

(c) In case the registered holder of any Rights Certificate shall exercise less than all the Rights represented thereby, the Rights Agent
shall prepare, execute and deliver a new Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised to the registered holder of such Rights Certificate or to his duly authorized assigns, subject to the provisions of
Section 13 hereof. 
 (d) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be
obligated to undertake any action with respect to any purported transfer, split up, combination or exchange of any Rights Certificate pursuant to Section 6 or exercise or assignment of a Rights Certificate as set forth in this Section 7
unless the registered holder of such Rights Certificate shall have (i) duly and properly completed and signed the certificate following the form of assignment or the form of election to purchase, as applicable, set forth on the reverse side of
the Rights Certificate surrendered for such transfer, split up, combination, exchange, exercise or assignment and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the
Rights represented thereby and Affiliates and Associates thereof as the Company or the Rights Agent may reasonably request, including, but not limited to, confirmation that such Person is not an Acquiring Person, or Affiliate, Associate or
transferee thereof. 

  
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	Section 8	Cancellation and Destruction of Rights Certificates 

 All Rights Certificates
surrendered for the purpose of exercise, transfer, split-up, combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights
Agent, shall be cancelled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and
the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at
the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 
  

	Section 9	Company Covenants Concerning Securities and Rights 

 (a) The Company shall cause
to be reserved, authorized for issuance and kept available out of its authorized and unissued shares of Preferred Stock, and/or other securities, a number of shares of Preferred Stock (or any other security of the Company as may be applicable at the
time of exercise) that shall be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7. 

(b) If the shares of Preferred Stock (and, following the occurrence of any Person becoming an Acquiring Person, shares of Class A Common
Stock and/or other securities) issuable upon the exercise of the Rights may be listed on any national securities exchange, or quoted on Nasdaq, the Company shall endeavor to cause, from and after such time as the Rights become exercisable, all
securities reserved for issuance upon the exercise of Rights to be listed on such exchange, or quoted on the Nasdaq, upon official notice of issuance upon such exercise. Notwithstanding anything contained herein to the contrary, the Company shall
not be required to cause the Class B Common Stock, Class C Common Stock or associated Rights to be listed on a national securities exchange or quoted on the Nasdaq. 

(c) The Company shall take all such actions as may be necessary to ensure that all shares of Preferred Stock (and, if applicable, following
the occurrence of any Person becoming an Acquiring Person shares of Class A Common Stock, Class B Common Stock, Class C Common Stock and/or other securities) delivered upon exercise of Rights, at the time of delivery of the certificates for
such securities, shall be (subject to payment of the Purchase Price) duly authorized, validly issued, fully paid and nonassessable securities. 

(d) The Company shall pay when due and payable any and all federal or state taxes and charges that may be payable in respect of the issuance
or delivery of the Rights Certificates and of any certificates representing securities issued upon the exercise of Rights; provided, however, that the Company shall not be required to pay any tax or charge which may be payable in
respect of any transfer or delivery of Rights Certificates to a person other than, or the issuance or delivery of certificates or depositary receipts representing securities issued upon the exercise of Rights in a name other than that of, the
registered holder of the Rights Certificate evidencing Rights surrendered for exercise, or to issue or deliver any certificates or depositary receipts representing securities issued upon the exercise of any Rights until any such tax or charge has

  
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been paid (any such tax or charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s reasonable satisfaction
that no such tax or charge is due. 
 (e) If the Company determines that registration under the Securities Act is required, then the Company
shall use commercially reasonable efforts (i) to file, as soon as practicable after the Distribution Date, on an appropriate form, a registration statement under the Securities Act with respect to the securities issuable upon exercise of the
Rights, (ii) to cause such registration statement to become effective as soon as practicable after such filing and (iii) to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of
the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the Expiration Date. The Company shall also take such action as may be appropriate under, or to ensure
compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not exceed 120 days, the exercisability of the Rights
in order to prepare and file such registration statement and to permit it to become effective or to qualify the rights, the exercise thereof or the issuance of shares of Preferred Stock, Class A Common Stock, Class B Common Stock, Class C
Common Stock or other securities upon the exercise thereof under state securities or “blue sky” laws. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. The Company shall notify the Rights Agent in writing whenever it makes a public announcement pursuant to this Section 9(e) and give
the Rights Agent a copy of such announcement. In addition, if the Company determines that a registration statement or other document should be filed under the Securities Act or any state securities laws following the Distribution Date, the Company
may temporarily suspend the exercisability of the Rights, for a period of time not to exceed 120 days, in each relevant jurisdiction until such time as a registration statement has been declared effective or any such other document filed and, if
required, approved, and, upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no
longer in effect. Notwithstanding anything in this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite registration or qualification in such jurisdiction has not been effected or the exercise of the
Rights is not permitted under applicable law. 
 (f) Notwithstanding anything in this Agreement to the contrary, after the later of the
Stock Acquisition Date and the Distribution Date, the Company shall not take (or, to the extent practical, permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action shall eliminate or
otherwise diminish the benefits intended to be afforded by the Rights. 
 (g) In the event that the Company is obligated to issue other
securities of the Company and/or pay cash pursuant to Sections 7, 11, 13 or 23, it shall make all arrangements necessary so that such other securities and/or cash are available for distribution by the Rights Agent, if and when necessary to
comply with this Agreement. 

  
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	Section 10	Record Date 

 Each Person in whose name any certificate for a number of one
ten-thousandths of a share of Preferred Stock (or Class A Common Stock, Class B Common Stock, Class C Common Stock and/or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of such shares of Preferred Stock (or Class A Common Stock, Class B Common Stock, Class C Common Stock and/or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate representing such Rights was duly surrendered and payment of the Purchase Price (and all applicable taxes and charges) was made; provided, however, that if the date of such surrender and payment
is a date upon which the transfer books of the Company for shares of Preferred Stock (or Class A Common Stock, Class B Common Stock, Class C Common Stock and/or other securities, as the case may be) are closed, such Person shall be deemed to
have become the record holder of such securities on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books of the Company are open. Prior to the exercise of the Rights represented thereby, the holder of a
Rights Certificate shall not be entitled to any rights of a holder of any security of the Company with respect to shares for which the Rights are or may be exercisable, including, without limitation, the right to vote, to receive dividends or other
distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 
  

	Section 11	Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights 

The Purchase Price, the number of shares of Preferred Stock or other securities or property purchasable upon exercise of each Right and the
number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
 (a) (i) In the event the
Company shall at any time after the Record Date (A) declare a dividend on the shares of Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding shares of Preferred Stock, (C) combine the outstanding shares
of Preferred Stock into a smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification of the shares of Preferred Stock (including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, as the case may be, and the number and kind of shares of capital stock issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled
to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time when the transfer books of the Company for the shares of Preferred Stock were open, the holder
would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. 

(ii) Subject to Section 23 of this Agreement and except as otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii),
in the event that any Person becomes an Acquiring 

  
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Person, each holder of a Right shall thereafter only have the right to receive, upon exercise thereof at a price equal to the then-current Purchase Price, in accordance with the terms of this
Agreement and in lieu of shares of Preferred Stock, such number of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be (or at the option of the Company, such number of one ten-thousandths of a
share of Preferred Stock or other consideration in accordance with Section 11(a)(iii)), as shall equal the result obtained by (x) multiplying the then-current Purchase Price by the number of one ten-thousandths of a share of Preferred
Stock for which a Right is then exercisable and dividing that product by (y) 50% of the Current Per Share Market Price of the Company’s Class A Common Stock (determined pursuant to Section 11(d) hereof) on the date of the
occurrence of such event; provided, however, that the Purchase Price (as so adjusted) and the number of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, so receivable upon exercise
of a Right shall thereafter be subject to further adjustment as appropriate in accordance with Section 11(f) hereof. If under any circumstance contemplated herein Rights become exercisable for the purchase of shares of Class A Common
Stock, Class B Common Stock or Class C Common Stock, such Rights may only be exercised as follows: (A) Rights issued in respect of Class A Common Stock will be exercisable only for the purchase of shares of Class A Common Stock (or
any Common Stock equivalents issued in respect thereof), (B) Rights issued in respect of Class B Common Stock will be exercisable only for the purchase of shares of Class B Common Stock (or any Common Stock equivalents issued in respect
thereof) and (C) Rights issued in respect of Class C Common Stock will be exercisable only for the purchase of shares of Class C Common Stock (or any Common Stock equivalents issued in respect thereof). 

Notwithstanding anything in this Agreement to the contrary, however, from and after the time (the “invalidation time”) when
any Person first becomes an Acquiring Person, any Rights that are beneficially owned by (A) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (B) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who becomes a transferee after the invalidation time or (C) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with the invalidation time pursuant to either
(1) a transfer from the Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding, written or otherwise, regarding the transferred Rights or (2) a transfer
that the Board has determined, in its sole and absolute discretion, is part of a plan, arrangement or understanding, written or otherwise, which has the purpose or effect of avoiding the provisions of this paragraph, and subsequent transferees of
such Persons, shall be void without any further action and any holder of such Rights shall thereafter have no rights whatsoever with respect to such Rights under any provision of this Agreement. The Company will use commercially reasonable efforts
to ensure that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Rights Certificates or other Person as a result of its determinations or failure to make any determinations, with respect to
an Acquiring Person or its Affiliates, Associates or transferees hereunder. From and after the invalidation time, no Rights Certificates shall be issued pursuant to Section 3 or Section 6 hereof that represents Rights that are or have
become void pursuant to the provisions of this paragraph, and any Rights Certificates delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions of this paragraph shall be cancelled. 

  
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 (iii) The Company may at its option substitute for a share of Class A Common Stock, Class B
Common Stock or Class C Common Stock, as the case may be, issuable upon the exercise of Rights in accordance with the foregoing subparagraph (ii) such number or fractions of shares of Preferred Stock having an aggregate current market value
equal to the Current Per Share Market Price of a share of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be. In the event that there shall be an insufficient number of Class A Common Stock, Class B
Common Stock or Class C Common Stock authorized but unissued (and unreserved) to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), or if the Board shall otherwise determine to do so, the Board shall or
may, as the case may be, with respect to such deficiency or otherwise, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party (A) determine the excess of (x) the value of the
shares of Common Stock issuable upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the “Current Value”) over (y) the then-current Purchase Price multiplied by the number of one ten-thousandths
of shares of Preferred Stock for which a Right was exercisable immediately prior to the time that the Acquiring Person became such (such excess, the “Spread”), and (B) with respect to each Right (other than Rights which have
become void pursuant to Section 11(a)(ii)), make adequate provision to substitute for the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock issuable in accordance with subparagraph (ii) upon exercise of the
Right and payment of the applicable Purchase Price, (1) cash, (2) a reduction in such Purchase Price, (3) shares of Preferred Stock or other equity securities of the Company (including, without limitation, shares or fractions of
shares of preferred stock which, by virtue of having dividend, voting and liquidation rights substantially comparable to those of the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, are deemed in good faith by the
Board to have substantially the same value as the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, (such shares of preferred stock and shares or fractions of shares of preferred stock are
hereinafter referred to as “Common Stock equivalents”) (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing, having a value which, when added to the value of the shares of
Class A Common Stock, Class B Common Stock and Class C Common Stock actually issued upon exercise of such Right, shall have an aggregate value equal to the Current Value (less the amount of any reduction in such Purchase Price), where such
aggregate value has been determined by the Board (upon the advice of a nationally recognized investment banking firm selected by the Board in good faith); provided, however, if the Company shall not make adequate provision to deliver
value pursuant to clause (B) above within thirty (30) days following the date that the Acquiring Person became such (the “Section 11(a)(ii) Trigger Date”), or if the Board shall otherwise determine to do so, then the
Company shall deliver, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, shares of
Class A Common Stock, Class B Common Stock or Class C Common Stock (to the extent available), and then, if necessary, such number or fractions of shares of Preferred Stock (to the extent available) and then, if necessary, cash, which shares
and/or cash have, as determined by the Board in good faith, an aggregate value equal to the Spread. If within the thirty (30) day period referred to above the Board shall determine in good faith that it is likely that sufficient additional
shares of Class A Common Stock, Class B Common Stock or Class C Common Stock could be authorized for issuance upon exercise in full of the Rights, then, if the Board so elects, such thirty (30) day

  
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period may be extended to the extent necessary, but not more than one hundred twenty (120) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder
approval for the authorization of such additional shares (such thirty (30) day period, as it may be extended, is hereinafter called the “Substitution Period”). To the extent that the Company determines that some action need be
taken pursuant to the second and/or third sentence of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof, that such action shall
apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of
distribution to be made pursuant to such second sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement at such time as the suspension is no longer in effect. 
 (b) If the Company fixes a record date
for the issuance of rights, options or warrants to all holders of shares of Preferred Stock entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase shares of Preferred Stock (or securities
having equivalent rights, privileges and preferences as the shares of Preferred Stock (for purposes of this Section 11(b), “Equivalent Preferred Stock”)) or securities convertible into shares of Preferred Stock or Equivalent
Preferred Stock at a price per share of Preferred Stock or Equivalent Preferred Stock (or having a conversion price per share, if a security convertible into shares of Preferred Stock or Equivalent Preferred Stock) less than the Current Per Share
Market Price of the shares of Preferred Stock (determined pursuant to Section 11(d)) on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, the numerator of which is the number of shares of Preferred Stock outstanding on such record date plus the number of shares of Preferred Stock which the aggregate offering price of the total number of shares
of Preferred Stock and/or Equivalent Preferred Stock so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such Current Per Share Market Price and the denominator of which
is the number of shares of Preferred Stock outstanding on such record date plus the number of additional shares of Preferred Stock and/or Equivalent Preferred Shares to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible). In case part or all of such subscription price may be paid in a form other than cash, the value of such consideration shall be as determined in good faith by the Board, whose determination
shall be described in a written statement filed with the Rights Agent. Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made
successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had not been
fixed. 
 (c) If the Company fixes a record date for the making of a distribution to all holders of shares of Preferred Stock (including any
such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness, cash (other than a regular periodic cash dividend), assets, stock (other than a
dividend payable in shares of Preferred Stock) or subscription rights, options or warrants 

  
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(excluding those referred to in Section 11(b)), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to
such record date by a fraction, the numerator of which is the Current Per Share Market Price of the shares of Preferred Stock (as determined pursuant to Section 11(d)) on such record date or, if earlier, the date on which shares of Preferred
Stock begin to trade on an ex-dividend or when issued basis for such distribution, less the fair market value (as determined in good faith by the Board, whose determination shall be described in a written statement filed with the Rights Agent) of
the portion of the evidences of indebtedness, cash, assets or stock so to be distributed or of such subscription rights, options or warrants applicable to one share of Preferred Stock, and the denominator of which is such Current Per Share Market
Price of the shares of Preferred Stock. Such adjustments shall be made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price
which would then be in effect if such record date had not been fixed. 
 (d) (i) For the purpose of any computation hereunder, the
“Current Per Share Market Price” of any security (a “Security” for purposes of this Section 11(d)(i) only) on any date shall be deemed to be the average of the daily closing prices (as defined below) per share
of a share of the Class A Common Stock for the 30 consecutive Trading Days immediately prior to, but not including, such date; provided, however, that in the event that the Current Per Share Market Price of the Security is
determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such shares (other than the Rights) or
(B) any subdivision, combination or reclassification of such Security, and prior to the expiration of 30 Trading Days after, but not including, the ex-dividend date for such dividend or other distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such case, the Current Per Share Market Price shall be appropriately adjusted to take into account ex-dividend trading or to reflect the current per share market price per share
equivalent of such Security. For purposes of this Section 11(d)(i), the “closing price” for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NYSE or, if the Security is not listed or admitted to trading on the NYSE, as
reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted
to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or OTCQB, as applicable or such other system then in
use, or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected by the Board. If the Security is
not publicly held or not so listed or traded, or is not the subject of available bid and asked quotes, the Current Per Share Market Price of such Security shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent. 
 (ii) For the purpose of any computation hereunder, the
“Current Per Share Market Price” of shares of the Preferred Stock shall be determined in accordance with the method set forth above in Section 11(d)(i) other than the last sentence thereof. If the Current Per

  
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Share Market Price of Preferred Stock cannot be determined in the manner provided above, it shall be conclusively deemed to be an amount equal to the current per share market price of the shares
of Class A Common Stock multiplied by ten thousand (as such number may be appropriately adjusted to reflect events such as stock splits, stock dividends, recapitalizations or similar transactions relating to the shares of Class A Common
Stock occurring after the date of this Agreement). If neither the Class A Common Stock nor the Preferred Stock are publicly held or so listed or traded, or the subject of available bid and asked quotes, “Current Per Share Market
Price” of the Preferred Stock shall mean the fair value per share as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent. For all purposes of this Agreement, the current per
share market price of one ten-thousandth of a Preferred Share will be equal to the current per share market price of one Preferred Share divided by ten thousand. 

(e) Except as set forth below, no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or
decrease of at least 1% in such price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-millionth of a share of Preferred Stock or one ten-thousandth of a share of a Class A Common Stock, Class B Common Stock or Class C Common Stock
or other security, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction
which requires such adjustment and (ii) the Expiration Date. 
 (f) If as a result of an adjustment made pursuant to
Section 11(a), the holder of any Right thereafter exercised becomes entitled to receive any securities of the Company other than shares of Preferred Stock, thereafter the number and/or kind of such other securities so receivable upon exercise
of any Right (and/or the Purchase Price in respect thereof) shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the shares of Preferred Stock (and the
Purchase Price in respect thereof) contained in this Section 11, and the provisions of Sections 7, 9, 10 and 13 with respect to the shares of Preferred Stock (and the Purchase Price in respect thereof) shall apply on like terms to any such
other securities (and the Purchase Price in respect thereof). 
 (g) All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one ten-thousandths of a share of Preferred Stock issuable from time to time hereunder upon exercise of the Rights,
all subject to further adjustment as provided herein. 
 (h) Unless the Company has exercised its election as provided in
Section 11(i), upon each adjustment of the Purchase Price pursuant to Section 11(b) or Section 11(c), each Right outstanding immediately prior to the making of such adjustment shall evidence the right to purchase, at the adjusted
Purchase Price, that number of one ten-thousandths of a share of Preferred Stock (calculated to the nearest one one-millionth of a share of Preferred Stock) obtained by (i) multiplying (x) the number of one ten-thousandths of a share of
Preferred Stock issuable upon exercise of a Right immediately prior to such adjustment of the Purchase Price by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so
obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 

  
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 (i) The Company may elect, on or after the date of any adjustment of the Purchase Price, to
adjust the number of Rights in substitution for any adjustment in the number of one ten-thousandths of a share of Preferred Stock issuable upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights
shall be exercisable for the number of one ten-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become
that number of Rights (calculated to the nearest one hundred-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the
Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. The Company shall also,
as promptly as practicable, notify the Rights Agent in writing of the same pursuant to Section 9(e) hereof and give the Rights Agent a copy of such announcement. Such record date may be the date on which the Purchase Price is adjusted or any
day thereafter, but if the Rights Certificates have been issued, such record date shall be at least 10 calendar days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of
Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to the provision of
Section 13, the additional Rights to which such holders are entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof if required by the Company, new Rights Certificates evidencing all the Rights to which such holders are entitled after such adjustment. Rights Certificates
so to be distributed shall be issued, executed, and countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the holders of record of Rights
Certificates on the record date specified in the public announcement. 
 (j) Without respect to any adjustment or change in the Purchase
Price and/or the number and/or kind of securities issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number and kind of securities which were
expressed in the initial Rights Certificate issued hereunder. 
 (k) In any case in which this Section 11 otherwise requires that an
adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of
one ten-thousandths of a share of Preferred Stock or other securities of the Company, if any, issuable upon such exercise over and above the number of one ten-thousandths of a share of Preferred Stock or other securities of the Company, if any,
issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company delivers to such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares of Preferred Stock or other securities upon the occurrence of the event requiring such adjustment. 

  
 - 21 - 

 (l) Notwithstanding anything in this Agreement to the contrary, the Company shall be entitled to
make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that in its good faith judgment the Board determines to be necessary or advisable in order that any
(i) consolidation or subdivision of the shares of Preferred Stock, (ii) issuance wholly for cash of shares of Preferred Stock at less than the Current Per Share Market Price therefor, (iii) issuance wholly for cash of shares of
Preferred Stock or securities which by their terms are convertible into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11 hereafter made
by the Company to holders of its shares of Preferred Stock is not taxable to such stockholders. 
 (m) Notwithstanding anything in this
Agreement to the contrary, in the event that the Company at any time after the Record Date and prior to the Distribution Date (i) pays a dividend on the outstanding shares of Class A Common Stock, Class B Common Stock or Class C Common
Stock payable in shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as applicable, (ii) subdivides the outstanding shares of Class A Common Stock, Class B Common Stock or Class C Common Stock,
(iii) combines the outstanding shares of Class A Common Stock, Class B Common Stock or Class C Common Stock into a smaller number of shares or (iv) issues any shares of its capital stock in a reclassification of the outstanding shares
of Class A Common Stock, Class B Common Stock or Class C Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), the number of Rights
associated with each share of Class A Common Stock, Class B Common Stock or Class C Common Stock then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of
Rights thereafter associated with each share of Class A Common Stock, Class B Common Stock or Class C Common Stock following any such event equals the result obtained by multiplying the number of Rights associated with each share of
Class A Common Stock, Class B Common Stock or Class C Common Stock, as applicable, immediately prior to such event by a fraction the numerator of which is the total number of shares of Class A Common Stock, Class B Common Stock or Class C
Common Stock, as applicable, outstanding immediately prior to the occurrence of the event and the denominator of which is the total number of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be,
outstanding immediately following the occurrence of such event. Further, in the case of a reclassification, appropriate adjustments shall be made so as to best reasonably approximate the foregoing intent, as determined by the Board. The adjustments
provided for in this Section 11(m) shall be made successively whenever such a dividend is paid or such a subdivision, combination or reclassification is effected. 
  

	Section 12	Certificate of Adjusted Purchase Price or Number of Shares 

 Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without limitation an event which causes Rights to become null and void) occurs as provided in Section 11, the Company shall promptly (a) prepare a
certificate setting forth such adjustment and a brief statement of the facts and calculations accounting for such adjustment or describing such event, (b) file with the Rights Agent, and with each transfer agent for the shares of Preferred
Stock and the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, a copy of such certificate, and (c) make a public announcement thereof and, if 

  
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deemed necessary or appropriate, mail a brief summary thereof to each holder of a Rights Certificate. The Rights Agent shall be fully protected in relying on any such certificate and on any
adjustment therein contained and shall not be deemed to have knowledge of any such adjustment unless and until it shall have received such certificate; provided, however, that the Rights Agent will not be entitled to such protection in
cases of bad faith or willful misconduct. 
  

	Section 13	Fractional Rights and Fractional Shares 

 (a) The Company shall not be required to
issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to the registered holders of the Rights Certificates with regard to which such fractional
Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of one Right (as defined below). For purposes of this Section 13(a), the “current market value of one Right” is the
“closing price” (as defined below) of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. For purposes of this Section 13(a), the “closing price”
for any Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the NYSE, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which
the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the Nasdaq or OTCQB, as applicable or such other system then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Rights, such market maker to be selected by the Board. If the Rights are not publicly held or are not so listed or traded, or are not the subject of available bid and asked quotes, the current market
value of one Right shall mean the fair value thereof as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent. 

(b) The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples of
one ten-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional shares of Preferred Stock (other than fractions which are integral multiples of one ten-thousandth of a share of
Preferred Stock). Fractions of Preferred Stock in integral multiples of one ten-thousandth of such Preferred Stock may, in the sole discretion of the Company, be represented by depositary receipts pursuant to an appropriate agreement between the
Company and a depositary selected by it, provided that such agreement provides that the holders of such depositary receipts have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Stock
represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that are not integral multiples of one ten-thousandth of a share of Preferred Stock, the Company may pay to the registered holders of Rights Certificates at the
time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one ten-thousandth of a share of Preferred Stock. For purposes of this Section 13(b), the “current market value
of one ten-thousandth of a share of 

  
 - 23 - 

 
Preferred Stock” shall be one ten-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately
prior to the date of such exercise; provided, however, that if the closing price of the shares of the Preferred Stock cannot be so determined, the closing price of the shares of the Preferred Stock for such Trading Day shall be
conclusively deemed to be an amount equal to the closing price of the shares of Class A Common Stock for such Trading Day multiplied by ten thousand (as such number may be appropriately adjusted to reflect events such as stock splits, stock
dividends, recapitalizations or similar transactions relating to the Class A Common Stock occurring after the date of this Agreement). 

(c) Following the occurrence of any Person becoming an Acquiring Person, the Company shall not be required to issue fractions of shares of
Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, upon exercise or exchange of the Rights or to distribute certificates which evidence fractional shares of Class A Common Stock, Class B Common Stock or
Class C Common Stock, as the case may be. In lieu of issuing any such fractional securities, the Company may pay to any Person to whom or which such fractional securities would otherwise be issuable an amount in cash equal to the same fraction of
the current market value of one such security. For purposes of this Section 13(c), the current market value of one share of Class A Common Stock, or other security issuable upon the exercise or exchange of Rights shall be the closing price
thereof (as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to the date of such exercise or exchange. 

(d) The holder of a Right by the acceptance of the Rights expressly waives his right to receive any fractional Rights or any fractional shares
upon exercise of a Right, except as permitted by this Section 13. 
  

	Section 14	Rights of Action 

 (a) All rights of action in respect of this Agreement,
excepting the rights of action given to the Rights Agent hereunder, are vested in the respective registered holders of the Rights (and, prior to the Distribution Date, the registered holders of shares of Class A Common Stock, Class B Common
Stock and Class C Common Stock); and any registered holder of any Rights (or, prior to the Distribution Date, of the shares of Class A Common Stock, Class B Common Stock and Class C Common Stock), without the consent of the Rights Agent or of
the holder of any other Rights (or, prior to the Distribution Date, of the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock), may, in his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights represented by a Rights Certificate in the manner provided in such Rights Certificate and in this Agreement. Without
limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall be entitled to specific
performance of the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. 

(b) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any
holder of a Right or other Person as a result 

  
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of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether interlocutory or
final) issued by a court of competent jurisdiction or by a governmental regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation, or executive order promulgated or enacted by any governmental authority,
prohibiting or otherwise restraining performance of such obligation; provided, however, that the Company shall use commercially reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise
overturned as soon as possible. 
  

	Section 15	Agreement of Rights Holders 

 Every holder of a Right consents and agrees with the
Company and the Rights Agent and with every other holder of a Right that: 
 (a) prior to the Distribution Date, the Rights shall be
transferable only in connection with the transfer of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock; 

(b) after the Distribution Date, the Rights are transferable only on the registry books of the Rights Agent if the Rights Certificate
representing such Rights is surrendered at the principal office or offices of the Rights Agent designated for such purposes, duly endorsed and accompanied by a properly executed instrument of transfer with the appropriate forms and certificates
fully executed; 
 (c) the Company and the Rights Agent may deem and treat the person in whose name a Rights Certificate (or, prior to the
Distribution Date, the associated Class A Common Stock, Class B Common Stock or Class C Common Stock share certificate) is registered as the absolute owner thereof and of the Rights represented thereby (notwithstanding any notations of
ownership or writing on the Rights Certificates or the associated Class A Common Stock, Class B Common Stock or Class C Common Stock share certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent shall be affected by any notice to the contrary; 
 (d) such holder expressly waives any right to
receive any fractional Rights and any fractional securities upon exercise or exchange of a Right, except as otherwise provided in Section 13; and 

(e) Rights held by an Acquiring Person, including its Affiliates and Associates, and transferees thereof, may be void in accordance with the
terms hereof. 
  

	Section 16	Rights Holder Not Deemed a Stockholder 

 No holder, of any Rights, by means of
such possession, shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the number of one ten-thousandths of a share of Preferred Stock or any other securities of the Company which may at any time be issuable on the
exercise of the Rights, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights, by means of such possession, any of the rights of a stockholder of the Company, including any right to
vote on any matter 

  
 - 25 - 

 
submitted to stockholders at any meeting thereof, including the election of directors, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 24 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights represented by such Rights Certificate have been exercised in accordance with the
provisions of this Agreement. 
  

	Section 17	Concerning the Rights Agent 

 (a) The Company shall pay to the Rights Agent
reasonable compensation for all services rendered by it hereunder, and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, administration and execution of
this Agreement and the exercise and performance of its duties hereunder. The Company shall also indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, cost or expense
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of
competent jurisdiction) for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement and the performance of its duties and responsibilities and the exercise of its rights hereunder,
including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly. The costs and expenses of enforcing this right of indemnification will also be paid by the Company. The provisions of this
Section 17 shall survive the exercise, exchange, redemption or expiration of the Rights, the resignation, replacement or removal of the Rights Agent and the termination of this Agreement. 

(b) The Rights Agent may conclusively rely on, and will be protected and shall incur no liability for or in respect of any action taken,
suffered or omitted by it in connection with, its acceptance or administration of this Agreement and the exercise and performance of its duties and responsibilities and the exercise of its rights hereunder, in reliance upon any Rights Certificate or
certificate evidencing shares of Preferred Stock, Class A Common Stock, Class B Common Stock, Class C Common Stock or other securities of the Company, or any instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the
advice of counsel as set forth in Section 19. 
 (c) Notwithstanding anything in this Agreement to the contrary, in no event will the
Rights Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless of the
form of action. 
  

	Section 18	Merger, Consolidation or Change of Name of Rights Agent 

 (a) Any Person into
which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent is a party, will be the
successor to the Rights Agent under this Agreement without the execution or filing of any paper 

  
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or any further act on the part of any of the parties hereto; provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 20
hereof. If at the time such successor Rights Agent shall succeed to the agency created by this Agreement any of the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature
of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and if at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in
the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

(b) If at any time the name of the Rights Agent changes and at such time any of the Rights Certificates have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and if at that time any of the Rights Certificates have been countersigned, the Rights Agent may countersign such
Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

 

	Section 19	Duties of Rights Agent 

 The Rights Agent undertakes to perform the duties and
obligations expressly imposed by this Agreement (and no implied duties) upon the following terms and conditions, by all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall be bound: 

(a) The Rights Agent may consult with competent legal counsel (who may be legal counsel for the Company). The advice or opinion of such
counsel shall be full and complete authorization and protection to the Rights Agent. The Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it in accordance with the content of such advice or opinion.

 (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter (including, without limitation, the identity of any Acquiring Person and the determination of the Current Per Share Market Price) be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any Authorized Officer and delivered to the Rights Agent. Such
certificate, pursuant to its terms, shall be full and complete authorization and protection to the Rights Agent for any action taken or suffered by it under the provisions of this Agreement in reliance upon such certificate. 

(c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct (which gross negligence, bad
faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction). 

  
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 (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Rights Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 

(e) The Rights Agent will have no liability in respect of the validity of this Agreement or the execution and delivery hereof (except the due
execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof). The Rights Agent shall not be responsible for any breach by the Company of any covenant
contained in this Agreement or in any Rights Certificate. The Rights Agent shall not be responsible for any adjustment required under the provisions of Sections 11, 12, 22 or 23 hereof or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights represented by Rights Certificates after actual notice of any such adjustment). The Rights Agent shall not
by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Class A Common Stock, Class B Common Stock, Class C Common Stock or Preferred Stock to be issued pursuant to this
Agreement or any Rights Certificate or as to whether any shares of Class A Common Stock, Class B Common Stock, Class C Common Stock or Preferred Stock shall, when so issued, be validly authorized and issued, fully paid and nonassessable. 

(f) The Company shall perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties and the exercise
of the rights hereunder from any person reasonably believed by the Rights Agent to be one of the Authorized Officers, and to apply to such Authorized Officers for advice or instructions in connection with its duties. The Rights Agent shall not be
liable for any action taken or suffered by it in good faith in accordance with instructions of any such Authorized Officer or for any delay in acting while waiting for those instructions. Any application by the Rights Agent for written instructions
from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent under this Agreement and the date on and/or after which such action shall be taken or such omission shall be
effective. The Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less
than five Business Days after the date any Authorized Officer of the Company actually receives such application, unless any such Authorized Officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the
effective date in the case of an omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken or omitted. 

(h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract 

  
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with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any
other capacity for the Company or for any other Person. 
 (i) The Rights Agent may execute and exercise any of the rights or powers hereby
vested in it or perform any duty hereunder either itself (through its directors, officers or employees) or by or through its attorneys or agents. The Rights Agent shall not be answerable or accountable for any act, omission, default, neglect or
misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof and
that there shall not have been gross negligence, bad faith or willful misconduct as determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction. 

(j) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the form
of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has not been completed to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, the
Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company. 

(k) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it. 
 (l) The Rights Agent will not be required to take notice or be deemed to have notice of any fact, event or determination
(including, without limitation, any dates or events defined in this Agreement or the designation of any Person as an Acquiring Person, Affiliate or Associate) under this Agreement unless and until the Rights Agent is specifically notified in writing
by the Company of such fact, event or determination. 
 (m) The provisions of this Section 19 shall survive the exercise, exchange,
redemption or expiration of the Rights, the resignation, replacement or removal of the Rights Agent and the termination of this Agreement. 
  

	Section 20	Change of Rights Agent 

 The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon thirty (30) days’ written notice mailed to the Company, and to each transfer agent of the shares of Class A Common Stock, Class B Common Stock, Class C Common Stock and
Preferred Stock known to the Rights Agent, respectively, by registered or certified mail, and, if such resignation occurs after the Distribution Date, to the registered holders of the Rights Certificates by first-class mail. The Company may remove
the Rights Agent or any successor Rights Agent upon thirty (30) days’ written notice, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the shares of Class A

  
 - 29 - 

 
Common Stock, the Class B Common Stock, Class C Common Stock and the Preferred Stock, by registered or certified mail, and, if such removal occurs after the Distribution Date, to the holders of
the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall, in its sole discretion, appoint a successor to the Rights Agent. If the Company shall fail
to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a legal business entity organized and doing business under the laws of the United States or of the State of New York or of any other state of
the United States, in good standing, which is authorized under such laws to exercise corporate trust, stock transfer or stockholder services powers and which has at the time of its appointment as Rights Agent a combined capital and surplus of at
least $25,000,000 or (b) an affiliate of a legal business entity described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had
been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for such purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the shares of
Class A Common Stock, the Class B Common Stock, Class C Common Stock and the Preferred Stock, and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to the registered holders of the Rights Certificates.
Failure to give any notice provided for in this Section 20, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the
case may be. 
  

	Section 21	Issuance of New Rights Certificates 

 Notwithstanding any of the provisions of
this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates representing Rights in such form as may be approved by the Board to reflect any adjustment or change in the Purchase Price and the number
or kind or class of shares or other securities or property purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale by the Company of shares of
Class A Common Stock, Class B Common Stock or Class C Common Stock following the Distribution Date and prior to the Expiration Date, the Company (a) shall, with respect to shares of Class A Common Stock, Class B Common Stock or Class
C Common Stock so issued or sold pursuant to the exercise, exchange or conversion of securities (other than Rights) issued prior to the Distribution Date which are exercisable or exchangeable for, or convertible into, shares of Class A Common
Stock, Class B Common Stock or Class C Common Stock and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate number of Rights as would have been issued in respect of
such shares of Class A Common Stock, Class B Common Stock or Class C Common Stock if they had been issued or sold prior to the Distribution Date, as appropriately adjusted as provided herein as if they had been so issued or

  
 - 30 - 

 
sold; provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent that, in its judgment the Board determines that the issuance of such Rights
Certificate could have a material adverse tax consequence to the Company or to the Person to whom or which such Rights Certificate otherwise would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
  

	Section 22	Redemption 

 (a) The Company, upon authorization of the Board, may, at any time
prior to such time as any Person first becomes an Acquiring Person, redeem all but not less than all the then-outstanding Rights at the Redemption Price. The redemption of the Rights may be made effective at such time, on such basis and with such
terms, conditions and limitations as the Board in its sole discretion may establish. The Company may, at its option, pay the Redemption Price in cash, securities or any other form of consideration deemed appropriate by the Board. 

(b) Immediately upon the effectiveness of the redemption of the Rights, and without any further action and without any notice, the right to
exercise the Rights shall terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held without interest thereon. Promptly after the effectiveness of the redemption of the Rights,
the Company shall give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing such notice to all such holders at each holder’s last address as it appears upon the registry books of the Rights
Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the shares of Class A Common Stock, Class B Common Stock and Class C Common Stock; provided, however, that the failure to give, or any
defect in, any such notice will not affect the validity of the Redemption of the Rights. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption
shall state the method by which the payment of the Redemption Price shall be made. 
  

	Section 23	Exchange 

 (a) The Company, upon authorization of the Board, may, at its option,
at any time after any Person first becomes an Acquiring Person, exchange all or part of the then-outstanding and exercisable Rights (which shall not include Rights that have not become effective or that have become void pursuant to the provisions of
Section 11(a)(ii) hereof) for shares of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, at an exchange ratio of one share of Class A Common Stock, Class B Common Stock or Class C Common Stock,
as the case may be, or one ten-thousandth of a share of Preferred Stock in accordance with clause (c) below, per Right, appropriately adjusted to reflect any stock split, combination, stock dividend, reclassification or similar transaction
occurring after the date hereof (such amount per Right being hereinafter referred to as the “Exchange Ratio”). The exchange of the Rights by the Board may be made effective at such time, on such basis and with such conditions as the
Board in its sole discretion may establish. 
 (b) Immediately upon the effectiveness of the action of the Board authorizing the exchange of
any Rights pursuant to subsection (a) of this Section 23 and without any further 

  
 - 31 - 

 
action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Class A
Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange;
provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company shall promptly mail a notice of any such exchange to all of the holders of the Rights so exchanged
at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock for Rights shall be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any
partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights. 

(c) The Company may at its option, upon authorization by the Board, substitute and, in the event that there shall not be sufficient shares of
Class A Common Stock, Class B Common Stock or Class C Common Stock issued but not outstanding or authorized but unissued (and unreserved) to permit an exchange of Rights as contemplated in accordance with this Section 23, the Company shall
substitute to the extent of such insufficiency, for each share of Class A Common Stock, Class B Common Stock or Class C Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of Preferred Stock or fraction
thereof (or Equivalent Preferred Stock as such term is defined in Section 11(b)) such that the Current Per Share Market Price of one share of Preferred Stock (or Equivalent Preferred Stock) multiplied by such number or fraction is equal to the
Current Per Share Market Price of such Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be, as of the date of such exchange. 
  

	Section 24	Notice of Certain Events 

 (a) If the Company proposes to (i) pay any
dividend payable in stock of any class to the holders of shares of Preferred Stock or to make any other distribution to the holders of shares of Preferred Stock (other than a regular periodic cash dividend), (ii) offer to the holders of shares
of Preferred Stock rights, options, warrants or any similar instrument to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any other securities, rights or options, (iii) effect any
reclassification of its Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), (iv) effect any consolidation or merger into or with any other Person, (v) to effect the
liquidation, dissolution or winding up of the Company or (vi) declare or pay any dividend on the shares of Class A Common Stock, Class B Common Stock or Class C Common Stock payable in shares of Class A Common Stock, Class B Common
Stock or Class C Common Stock, respectively, or to effect a subdivision, combination or reclassification of the Class A Common Stock, Class B Common Stock or Class C Common Stock as the case may be, then, in each such case, the Company shall
give to the Rights Agent and, to the extent possible, to each holder of a Right, in accordance with Section 25 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution
or offering of rights, warrants, 

  
 - 32 - 

 
options or any similar instrument or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least ten (10) days prior to
the record date for determining holders of the shares of Class A Common Stock, Class B Common Stock, Class C Common Stock, and/or Preferred Stock for purposes of such action, and in the case of any such other action covered by clause
(1) or (ii) above at least ten (10) days prior to the date of such proposed action or the date of participation therein by the holders of the shares of Preferred Stock, whichever is the earlier. Failure to provide any such notice
described above shall not invalidate the action taken. 
 (b) If a Stock Acquisition Date occurs, then the Company shall as soon as
practicable thereafter give to the Rights Agent and each holder of a Rights Certificate, to the extent feasible and in accordance with Section 25 hereof, a notice of the occurrence of such event, which shall specify the event and the
consequences of the event to holders of Rights. 
  

	Section 25	Notices 

 (a) Notices or demands authorized by this Agreement to be given or made
by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made (a) immediately, if made by personal delivery to the party to be notified, (b) on the fifth (5th) day if sent by first-class mail, postage prepaid, (c) the next Business Day if by nationally recognized overnight courier or (d) upon confirmation, if transmission by facsimile
combined with a phone call to the Company notifying it of such transmission, all addressed (until another address is filed in writing by the Company with the Rights) as follows: 

Bimini Capital Management, Inc. 

3305 Flamingo Drive 
 Vero Beach,
Florida 32963 
 Attention: Robert E. Cauley, Chief Executive Officer 

Facsimile: (772) 231-8896 

Phone: (772) 231-1400 
 (b)
Subject to the provisions of Section 20, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made
(a) immediately upon receipt, if made by personal delivery to the party to be notified, (b) on the fifth (5th) day if sent by first-class mail, postage prepaid, (c) the next
Business Day if by nationally recognized overnight courier or (d) upon confirmation, if transmission by facsimile combined with a phone call to the Rights Agent notifying it of such transmission, all addressed (until another address is filed in
writing by the Rights Agent with the Company) as follows: 
 Broadridge Corporate Issuer Solutions, Inc. 

51 Mercedes Way 
 Edgewood, NY
11717 
 Attention: Stock Transfer Administration 

Facsimile: (215) 553-5402 

Phone: (631) 254-7400 

  
 - 33 - 

 (c) Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Right (or, if prior to the Distribution Date, to the holder of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock) shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 
  

	Section 26	Supplements and Amendments 

 Prior to the Distribution Date, the Company may in
its sole and absolute discretion, and the Rights Agent shall, if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of any holders of the Rights, any such supplement or amendment to be
represented by writing signed by the Company and the Rights Agent. From and after the time at which the Rights cease to be redeemable pursuant to Section 22, the Company may and the Rights Agent shall, if the Company so directs, supplement or
amend this Agreement without the approval of any holders of Rights in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein,
(iii) to shorten or lengthen any time period hereunder, (iv) to provide for procedural mechanics designed to implement the intent of this Agreement as determined by the Board or (v) to amend or supplement the provisions hereunder in
any manner which the Company may deem necessary or desirable; provided, however, that no such supplement or amendment shall adversely affect, in any material respect, the interests of the holders of Rights (other than an Acquiring
Person or any Affiliate or Associate of an Acquiring Person), and no such amendment may cause the Rights again to become redeemable or cause this Rights Agreement again to become amendable other than in accordance with this sentence. Upon the
delivery of a certificate from an Authorized Officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 26, the Rights Agent shall execute such supplement or amendment.
Notwithstanding anything herein to the contrary, the Rights Agent shall not be obligated to enter into any supplement or amendment that adversely affects the Rights Agent’s own right, duties, obligations or immunities under this Agreement. 

 

	Section 27	Successors 

 All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 

  
 - 34 - 

	Section 28	Determinations and Actions by the Board 

 (a) For all purposes of this Agreement,
any calculation of the number of shares of Class A Common Stock, Class B Common Stock, Class C Common Stock or any other class of capital stock outstanding at any particular time, including for purposes of determining the particular percentage
of such outstanding shares of Class A Common Stock, Class B Common Stock or Class C Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and
Regulations under the Exchange Act or the provisions of Section 382 of the Code or any successor or replacement provision. 
 (b) The
Board shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations and calculations deemed necessary or advisable for the administration of this Agreement (including
without limitation a determination to redeem or not redeem the Rights or amend this Agreement). 
 (c) All such actions, calculations,
interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the
Rights Agent, the holders of the Rights and all other parties, and (y) not subject the Board, or any of the directors on the Board to any liability to any person, including without limitation the Rights Agent and the holders of the Rights.
Unless otherwise notified, the Rights Agent shall always be entitled to assume that the Board acted in good faith, and the Rights Agent shall be fully protected and shall incur no liability in reliance thereon. 

 

	Section 29	Benefits of this Agreement 

 Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the registered holders of the Rights (and, prior to the Distribution Date, registered holders of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock) any legal
or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights (and, prior to the Distribution Date, registered
holders of shares of Class A Common Stock, Class B Common Stock or Class C Common Stock). 
  

	Section 30	Severability 

 If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated; provided, however, that nothing contained in this Section 30 will affect the ability of the Company under the provisions of Section 26 to supplement or amend this Agreement to replace such
invalid, void or unenforceable term, provision, covenant or restriction with a legal, valid and enforceable term, provision, covenant or restriction. 

  
 - 35 - 

	Section 31	Governing Law 

 This Agreement, each Right and each Rights Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of Maryland and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and to be performed entirely
within such State. 
  

	Section 32	Counterparts 

 This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  

	Section 33	Descriptive Headings; Interpretation 

 Descriptive headings of the several
sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

  
 - 36 - 

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

			
	BIMINI CAPITAL MANAGEMENT, INC.
	
	/s/ Robert E. Cauley
	Name:	 	Robert E. Cauley
	Title:	 	Chief Executive Officer
	
	BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.
	
	 /s/ Mark Kopelman

	Name:	 	Mark Kopelman
	Title:	 	Vice President, Strategy and Product Development

 [Signature Page to Rights Agreement] 

  
 - 37 - 

 Exhibit A 

BIMINI CAPITAL MANAGEMENT, INC. 

FORM OF ARTICLES SUPPLEMENTARY ESTABLISHING AND FIXING THE RIGHTS AND PREFERENCES OF A SERIES OF SHARES OF PREFERRED STOCK 

Bimini Capital Management, Inc., a Maryland corporation (the “Corporation”), hereby certifies to the State Department of
Assessments and Taxation of Maryland that: 
 FIRST: Under a power contained in Article V of the charter of the Corporation (the
“Charter”), the Board of Directors (the “Board”) by duly adopted resolutions classified and designated 100,000 shares of authorized but unissued Preferred Stock (as defined in the Charter) as shares of Series A Junior Preferred
Stock, $0.001 par value per share (the “Series A Preferred Stock”), with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms
and conditions of redemption, which, upon any restatement of the Charter, shall become part of Article V of the Charter, with any necessary or appropriate renumbering or relettering of the sections or subsections hereof. Capitalized terms used in
these Articles Supplementary and not otherwise defined shall have the meaning given to such term in the Charter. 
 SERIES A PREFERRED
STOCKED 
 1. Designation and Amount. There is hereby established a series of the Corporation’s authorized Preferred Stock, to
be designated as the “Series A Junior Preferred Stock” (the “Series A Preferred Stock”) and having a par value of $0.001 per share. The number of shares of Series A Preferred Stock initially constituting such series shall
be 100,000. 
 2. Dividends and Distributions. 

(a) Subject to the prior and superior rights of the holders of shares of any other series of Preferred Stock or other class of capital stock
of the Corporation ranking prior and superior to the shares of Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock shall be entitled to receive, when, as and if authorized by the Board of Directors
and declared by the Corporation, out of the assets of the Corporation legally available therefor, (i) quarterly dividends payable in cash on or before the 30th day of January, April, July and
October in each year, or such other dates as may be required by Section 2(b) or as the Board of Directors of the Corporation shall approve (each such date being referred to herein as a “Dividend Payment Date”), commencing on
the first Dividend Payment Date after the first issuance of a share or a fraction of a share of Series A Preferred Stock, in the amount of $0.001 per whole share (rounded to the nearest cent), less the amount of all cash dividends declared on the
Series A Preferred Stock pursuant to the following clause (ii) since the immediately preceding Dividend Payment Date or, with respect to the first Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A
Preferred Stock (the total of which shall not, in any event, be less than zero) and (ii) dividends payable in cash on the Dividend Payment Date for each cash dividend declared on the Common Stock in an amount per whole share (rounded to the
nearest cent) equal to the Formula Number (as hereinafter defined) then in 

  
 A-1 

 
effect multiplied by the cash dividends then to be paid on each share of Common Stock. In addition, if the Corporation shall pay any dividend or make any other distribution on the Common Stock
payable in assets, securities or other forms of non-cash consideration (other than dividends or other distributions solely in shares of Common Stock), then, in each such case, the Corporation shall simultaneously pay or make on each outstanding
whole share of Series A Preferred Stock a dividend or other distribution in like kind equal to the Formula Number then in effect times such dividend or other distribution on each share of the Class A Common Stock. As used herein, the
“Formula Number” shall be 10,000; provided, however, that, if at any time after December 21, 2015 (the “Rights Declaration Date”), the Corporation shall (x) declare or pay any dividend on the Common Stock
payable in shares of Common Stock or make any other distribution on the Common Stock in shares of Common Stock, (y) subdivide (by a stock split or otherwise) the outstanding shares of Common Stock into a larger number of shares of Common Stock
or (z) combine (by a reverse stock split or otherwise) the outstanding shares of Common Stock into a smaller number of shares of Common Stock, then, in each such event, the Formula Number shall be adjusted to a number determined by multiplying
the Formula Number in effect immediately prior to such event by a fraction, the numerator of which is the number of shares of Common Stock that are outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that are outstanding immediately prior to such event (and rounding the result to the nearest whole number); and provided further, that, if at any time after the Rights Declaration Date, the Corporation shall issue any shares of its
capital stock in a merger, reclassification, or change of the outstanding shares of Common Stock, then, in each such event, the Formula Number shall be appropriately adjusted to reflect such merger, reclassification or change so that each share of
Series A Preferred Stock continues to be the economic equivalent of a Formula Number of shares of Common Stock prior to such merger, reclassification or change. 

(b) Corporation shall declare a dividend or other distribution on the Series A Preferred Stock as provided in Section 2(a) above
immediately prior to or at the same time it declares a dividend or other distribution on the Common Stock (other than a dividend or distribution solely in shares of Common Stock); provided, however, that, in the event no dividend or other
distribution (other than a dividend or distribution in shares of Common Stock) shall have been declared on the Common Stock during the period between any Dividend Payment Date and the next subsequent Dividend Payment Date, a dividend of $0.001 per
share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Dividend Payment Date. 
 (c) Dividends will accrue,
and be cumulative, on outstanding shares of Series A Preferred Stock from the Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the First Dividend
Payment Date, in which case dividends on such shares will accrue from the date of the first issuance of a share of Series A Preferred Stock or the date of issue is a Dividend Payment Date or is a date after the record date for the determination of
holders of shares of Series A Preferred Stock entitled to receive a dividend and before such Dividend Payment Date, in either of which events such dividends will accrue, and be cumulative, from such Dividend Payment Date. Accrued but unpaid
dividends will cumulate from the applicable Dividend Payment Date but will not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such
shares will 

  
 A-2 

 
be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A
Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date will be not more than 30 calendar days prior to the date fixed for the payment thereof. 

3. Voting Rights. 
 The
holders of shares of Series A Preferred Stock shall have the following voting rights: 
 (a) Each share of Series A Preferred Stock shall
entitle the holder thereof to a number of votes equal to the Formula Number then in effect on all matters submitted to a vote of the holders of shares of Class A Common Stock and Class B Common Stock. 

(b) Except as provided in this Section 3 or by the MGCL, the holders of shares of Series A Preferred Stock and the holders of shares of
Class A Common Stock and Class B Common Stock shall vote together as one class for the election of directors of the Corporation and on all matters submitted to a vote of holders of the Class A Common Stock and Class B Common Stock of the
Corporation entitled to vote thereon. 
 (c) If, at the time of any annual meeting of stockholders at which the election of directors is to
be considered, the equivalent of six quarterly dividends (whether or not consecutive) payable on any share or shares of Series A Preferred Stock are in arrears, the number of directors constituting the Board of Directors of the Corporation shall be
increased by two. In addition to voting together with the holders of shares of Common Stock for the election of other directors of the Corporation, the holders of record of the shares of Series A Preferred Stock, voting as a single voting group, to
the exclusion of the holders of shares of Common Stock, shall be entitled at said meeting of stockholders (and at each subsequent annual meeting of stockholders), unless all dividends in arrears have been paid or declared and set apart for payment
prior thereto, to vote for the election of two directors of the Corporation, the holders of any shares of Series A Preferred Stock being entitled to cast a number of votes per share of Series A Preferred Stock equal to the Formula Number then in
effect. Whenever all arrears in dividends on the Series A Preferred Stock outstanding have been paid in full or declared and set apart for payment in full, then the right of the holders of the Series A Preferred Stock to elect the two additional
directors shall cease, the terms of office of the such directors will immediately terminate and the number of directors constituting the Board of Directors will be reduced accordingly. If and when such default shall cease to exist, the holders of
the shares of Series A Preferred Stock shall be divested of the foregoing special voting rights, subject to revesting in the event of each and every subsequent like default in payments of dividends. Upon the termination of the foregoing special
voting rights, the terms of office of all persons who may have been elected directors pursuant to said special voting rights shall forthwith terminate, and the number of directors constituting the Board of Directors shall be reduced by two. The
voting rights granted by this Section 3(c) shall be in addition to any other voting rights granted to the holders of the Series A Preferred Stock in this Section 3. 

(d) Except as provided in this Section 3 or Section 11, holders of the Series A Preferred Stock shall have no special voting rights
and their consent shall not be required (except to the extent they are entitled to vote with the holders of Common Stock as set forth herein) for authorizing or taking any corporate action. 

(e) The holders of Series A Preferred Stock shall have exclusive voting rights on any Charter amendment that would alter only the contract
rights, as expressly set forth in the Charter, of the Series A Preferred Stock. 

  
 A-3 

 4. Restrictions. 

(a) Whenever dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 above are in
arrears, thereafter and until all accrued and unpaid dividends and other distributions, whether or not declared, on shares of Series A Preferred Stock outstanding have been paid or set aside in full for all past dividend periods, the
Corporation will not: 
 (i) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior
(either as to dividends or upon liquidation, dissolution or winding up) (“Junior Stock”) to the shares of Series A Preferred Stock; 

(ii) declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) (“Parity Stock”) with the shares of Series A Preferred Stock, except dividends paid ratably on the shares of Series A Preferred Stock and all such Parity Stock on which
dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 

(iii) redeem, purchase or otherwise acquire for consideration shares of any Junior Stock; provided, however, that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any such Junior Stock in exchange for shares of any other Junior Stock of the Corporation; or 

(iv) redeem, purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of Parity
Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual
dividend rates and other relative rights and preferences of the respective series and classes, may determine in good faith will result in fair and equitable treatment among the respective series or classes. 

(b) The Corporation will not permit any majority-owned subsidiary of the Corporation to purchase or otherwise acquire for consideration any
shares of stock of the Corporation unless the Corporation could, under Section 4(a), purchase or otherwise acquire such shares at such time and in such manner. 

5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall constitute Preferred Stock, undesignated as to class or series. 

  
 A-4 

 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up
of the Corporation, no distribution will be made to (a) the holders of shares of Junior Stock (either as to dividends or upon liquidation, dissolution or winding up) unless, prior thereto, the holders of shares of Series A Preferred Stock have
received an amount equal to sum of the accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, plus an amount equal to the greater of (i) $0.001 per whole share of Series A Preferred Stock
or (ii) an aggregate amount per share of Series A Preferred Stock equal to the Formula Number then in effect times the aggregate amount to be distributed per share to holders of Common Stock, or (b) to the holders of shares of Parity Stock
(either as to dividends or upon liquidation, dissolution or winding up), except distributions made ratably on the shares of Series A Preferred Stock and all other such Parity Stock in proportion to the total amounts to which the holders of all
such shares are entitled upon such liquidation, dissolution or winding up of the Corporation. 
 7. Consolidation, Merger, Etc. In
the event that the Corporation enters into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then, in each
such case, each share of Series A Preferred Stock will at the same time be similarly exchanged for or changed into an amount per share equal to the Formula Number then in effect times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event both this Section 7 and Section 2 appear to apply to a transaction, this Section 7 shall control.

 8. Redemption. The shares of Series A Preferred Stock are not redeemable. 

9. Rank. The Series A Preferred Stock ranks, with respect to the payment of dividends and the distribution of assets, junior to all
other series of the Corporation’s Preferred Stock, if any, unless the Board of Directors of the Corporation shall specifically determine otherwise in fixing the powers, preferences and relative, participating, optional and other special rights
and the qualifications, limitations and restrictions of any such other series. 
 10. Fractional Shares. The Series A Preferred Stock
shall be issuable upon exercise of the Rights issued pursuant to the Rights Agreement in whole shares or in any fraction of a share that is one-ten thousandth (1/10,000) of a share or any integral multiple of such fraction, which shall entitle
the holder, in proportion to such holder’s fractional shares, to receive dividends, exercise voting rights, participate in distributions and have the benefit of all other rights of holders of Series A Preferred Stock. In lieu of fractional
shares, the Corporation, prior to the first issuance of a share or a fraction of a share of Series A Preferred Stock, may elect (i) to make a cash payment as provided in the Rights Agreement for fractions of a share other than one-ten
thousandth (1/10,000) of a share or any integral multiple thereof or (b) to issue depository receipts evidencing such authorized fraction of a share of Series A Preferred Stock pursuant to an appropriate agreement between the Corporation
and a depository selected by the Corporation; provided that such agreement shall provide that the holders of such depository receipts shall have all the rights, privileges and preferences to which they are entitled as holders of the Series A
Preferred Stock. 

  
 A-5 

 11. Amendment. These Articles Supplementary shall not hereafter be amended, either
directly, indirectly or through a merger, consolidation or other business combination, in any manner that would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect the holders of the
shares of Series A Preferred Stock adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of Series A Preferred Stock, voting as a separate class. 

SECOND: The Series A Preferred Stock has been classified and designated by the Board under authority contained in the Charter. 

THIRD: These Articles Supplementary have been approved by the Board in the manner and by the vote required by law. 

FOURTH: The undersigned acknowledges these Articles Supplementary to be the corporate act of the Corporation and as to all matters or
facts required to be verified under oath, the undersigned acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for
perjury. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

  
 A-6 

 IN WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be executed in its
name and on its behalf by its duly authorized Chairman of the Board, Chief Executive Officer & Secretary and attested by its President, Chief Investment Officer, Chief Financial Officer & Treasurer as of December 21, 2015.

  

											
	ATTEST:	 		 	BIMINI CAPITAL MANAGEMENT, INC., a Maryland corporation
					
		 		 		 	By:	 	 /s/ Robert E. Cauley

		 		 		 		 	Name:	 	Robert E. Cauley
		 		 		 		 	Title:	 	Chairman, Chief Executive Officer & Secretary
					
		 		 		 	By:	 	 /s/ G. Hunter Haas IV

		 		 		 		 	Name:	 	G. Hunter Haas IV
		 		 		 		 	Title:	 	President, Chief Investment Officer, Chief Financial Officer & Treasurer

 [Signature Page to Articles Supplementary Designating Series A Junior Preferred Stock] 

  
 A-7 

 Exhibit B 

FORM OF RIGHTS CERTIFICATE 
  

			
	Certificate No. R-            	  	Rights in respect of Class [●] Common Stock

 NOT EXERCISABLE AFTER DECEMBER 21, 2025 OR EARLIER IF REDEEMED, EXCHANGED OR AMENDED. THE RIGHTS ARE SUBJECT TO REDEMPTION,
EXCHANGE AND AMENDMENT AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN THE RIGHTS AGREEMENT, RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR
AN ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A TRANSFEREE THEREOF SHALL BECOME NULL AND VOID AND NO LONGER TRANSFERABLE. 

  
 B-1 

 RIGHTS CERTIFICATE 

BIMINI CAPITAL MANAGEMENT, INC. 

This certifies that
                                        , or
registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions, and conditions of the Rights Agreement, (the “Rights
Agreement”), by and between Bimini Capital Management, Inc., a Maryland corporation (the “Company”), and Broadridge Corporate Issuer Solutions, Inc. (the “Rights Agent”), dated as
of December 21, 2015, to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 p.m. (New York time) on the Expiration Date (as such term is defined in the Rights
Agreement) at the office or offices of the Rights Agent designated for such purpose, one ten-thousandth of a fully paid nonassessable share of Series A Junior Preferred Stock, par value $0.001 per share (the “Preferred
Shares”), of the Company, at a purchase price of $4.76 per one ten-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to
Purchase and related Certificate duly executed. If this Rights Certificate is exercised in part, the holder will be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not
exercised. The number of Rights represented by this Rights Certificate (and the number of one ten-thousandths of a Preferred Share which may be purchased upon exercise thereof) set forth above, and the Purchase Price set forth above, are the number
and Purchase Price as of the date of the Rights Agreement, based on the Preferred Shares as constituted at such date. Terms used herein with initial capital letters and not defined herein are used herein with the meanings ascribed thereto in the
Rights Agreement. 
 As provided in the Rights Agreement, the Purchase Price and/or the number and/or kind of shares of Preferred Stock (or
other securities, as the case may be) which may be purchased upon the exercise of the Rights represented by this Rights Certificate are subject to adjustment upon the occurrence of certain events. 

This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and
conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities of the Rights Agent,
the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of the Rights under the circumstances specified in the Rights Agreement. Copies of the Rights Agreement are on
file at the principal executive offices of the Company and can be obtained from the Company without charge upon written request therefor. 

Pursuant to the Rights Agreement, from and after the occurrence of any Person becoming an Acquiring Person, any Rights that are Beneficially
Owned by (i) any Acquiring Person (or any Affiliate or Associate of any Acquiring Person), (ii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the occurrence of any Person becoming
an Acquiring Person or (iii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee prior to or concurrently with any Person becoming an Acquiring Person pursuant to either (a) a transfer from an
Acquiring Person to 

  
 B-2 

 
holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding regarding the transferred Rights or (b) a transfer that the Board of
Directors of the Company has determined, in its sole and absolute discretion, is part of a plan, arrangement or understanding which has the purpose or effect of avoiding certain provisions of the Rights Agreement, and subsequent transferees of any
of such Persons, will be void without any further action and any holder of such Rights will thereafter have no rights whatsoever with respect to such Rights under any provision of the Rights Agreement. From and after the occurrence of any Person
becoming an Acquiring Person, no Rights Certificate will be issued that represents Rights that are or have become void pursuant to the provisions of the Rights Agreement, and any Rights Certificate delivered to the Rights Agent that represents
Rights that are or have become void pursuant to the provisions of the Rights Agreement will be canceled. 
 This Rights Certificate, with or
without other Rights Certificates, may be exchanged for another Rights Certificate or Rights Certificates entitling the holder to purchase a like number of one ten-thousandths of a Preferred Share (or other securities, as the case may be) as the
Rights Certificate or Rights Certificates surrendered entitled such holder (or former holder in the case of a transfer) to purchase, upon presentation and surrender hereof at the office or offices of the Rights Agent designated for such purpose,
with the Form of Assignment (if appropriate) and the related Certificate duly executed. 
 Subject to the provisions of the Rights
Agreement, the Rights represented by this Certificate may be redeemed by the Company at its option at a redemption price of $0.001 per Right or may be exchanged in whole or in part. The Rights Agreement may be supplemented and amended by the
Company, as provided therein. 
 The Company is not required to issue fractions of Preferred Shares (other than fractions which are integral
multiples of one ten-thousandth of a Preferred Share, which may, at the option of the Company, be represented by depositary receipts) or other securities issuable, as the case may be, upon the exercise of any Right or Rights represented hereby. In
lieu of issuing such fractional Preferred Shares or other Securities, the Company may make a cash payment, as provided in the Rights Agreement. 

No holder of this Rights Certificate, as such, will be entitled to vote or receive dividends or be deemed for any purpose the holder of the
Preferred Shares or of any other securities of the Company which may at any time be issuable upon the exercise of the Right or Rights represented hereby, nor will anything contained herein or in the Rights Agreement be construed to confer upon the
holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action,
or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights represented by this Rights Certificate
have been exercised in accordance with the provisions of the Rights Agreement. 

  
 B-3 

 This Rights Certificate will not be valid or obligatory for any purpose until it has been
countersigned by the Rights Agent. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

  
 B-4 

 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of 20    . 
  

	
	BIMINI CAPITAL MANAGEMENT, INC.
	
	 /s/

	Name:
	Title:
	
	Countersigned
	
	[●]
	
	 /s/

	Name:
	Title:

 Signature Page to Rights Certificate 

  
 B-5 

 Form of Reverse Side of Rights Certificate 

FORM OF ASSIGNMENT 
 (To be
executed by the registered holder if such holder desires to transfer this Rights Certificate) 
 FOR VALUE RECEIVED,
                     hereby sells, assigns and transfers unto 
  

 
 (Please print name and address of
transferee) 
 this Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint Attorney, to
transfer the within Rights Certificate on the books of the within-named Company, with full power of substitution. 
 Dated :
            ,          
  

	
	  

	Signature

 Signature(s) Guaranteed: 

SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

 
 The undersigned hereby
certifies that the Rights represented by this Rights Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement). 

 

	
	  

	Signature

  
 B-6 

 CERTIFICATE 

The undersigned hereby certifies by checking the appropriate boxes that: 

(1) the Rights represented by this Rights Certificate  ̈ are
 ̈ are not being sold, assigned, transferred, split up, combined or exchanged by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms
are defined in the Rights Agreement); and 
 (2) after due inquiry and to the best knowledge of the undersigned, it  ̈ did  ̈ did not acquire the Rights represented by this Rights Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or
Associate of an Acquiring Person. 
 Dated:             ,
         
  

	
	  

	Signature

  
 B-7 

 Form of Reverse Side of Rights Certificate – continued 

FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to exercise this Rights Certificate) 

To Bimini Capital Management, Inc.: 
 The undersigned hereby
irrevocably elects to exercise                      Rights represented by this Rights Certificate to purchase the one ten-thousandths of a Preferred
Share or other securities issuable upon the exercise of such Rights and requests that certificates for such securities be issued in the name of and delivered to: 

Please insert social security or other identifying number:
                     
  

 
 (Please print name and address) 

If such number of Rights is not all the Rights represented by this Rights Certificate, a new Rights Certificate for the balance remaining of such Rights will
be registered in the name of and delivered to: 
 Please insert social security or other identifying number:
                     
  

 
 (Please print name and address) 

Dated:             ,          

 

	
	  

	Signature

 Signature(s) Guaranteed: 

SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP
IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

 
 The undersigned hereby
certifies that the Rights represented by this Rights Certificate are not beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement). 

 

	
	  

	Signature

  
 B-8 

 CERTIFICATE 

The undersigned hereby certifies by checking the appropriate boxes that: 

(1) the Rights represented by this Rights Certificate  ̈ are
 ̈ are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined pursuant to the Rights Agreement); and

 (2) after due inquiry and to the best knowledge of the undersigned, it  ̈ did  ̈ did not acquire the Rights represented by this Rights Certificate from any Person who is, was, or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 

Dated:             ,          

 

	
	  

	Signature

  
 B-9 

 NOTICE 

The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face
of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 In the event the
certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such Assignment or Election to Purchase will not be honored. 

  
 B-10 

 Exhibit C 

UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING
PERSON INCLUDING AFFILIATES AND ASSOCIATES THEREOF (EACH AS DEFINED IN THE RIGHTS PLAN) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE. 

SUMMARY OF RIGHTS 

On December 21, 2015, the Board of Directors (the “Board”) of Bimini Capital Management, Inc., a Maryland
corporation (the “Company”), adopted a rights plan and declared a distribution of one preferred share purchase right for each outstanding share of Class A Common Stock, Class B Common Stock and Class C Common Stock. The
distribution is payable to our stockholders of record at the close of business as of December 21, 2015. The terms of the rights and the rights plan are set forth in a Rights Agreement, by and between us and Broadridge Corporate Issuer
Solutions, Inc., as Rights Agent, dated as of December 21, 2015 (the “Rights Plan”). 
 This summary of rights
provides only a general description of the Rights Plan, and thus, should be read together with the entire Rights Plan, which is incorporated into this summary by reference. All capitalized terms used herein but not defined herein shall have the
meanings ascribed to such terms in the Rights Plan. Upon written request, the Company will provide a copy of the Rights Plan free of charge to any of its stockholders. 

The Board adopted the Rights Plan in an effort to protect against a possible limitation on the Company’s ability to use its net operating
loss carryforwards (“NOLs”) under Section 382 of the Internal Revenue Code of 1986, as amended, which may be used to reduce potential future federal income tax obligations. The Company’s ability to use its NOLs
would be limited if there was an “ownership change” under Section 382 of the Internal Revenue Code. This would occur if stockholders owning (or deemed under Section 382 to own) 5% or more of the Company’s stock increase
their collective ownership of the aggregate amount of outstanding shares of the Company by more than 50 percentage points over a defined period of time. The Rights Plan was adopted to reduce the likelihood of an “ownership change”
occurring as defined by Section 382. 
 The Rights Plan is intended to act as a deterrent to any person or group acquiring 4.9% or more of
our outstanding Class A Common Stock (an “Acquiring Person”) without the approval of our Board. Stockholders who own 4.9% or more of our outstanding Class A Common Stock as of the close of business on
December 21, 2015 will not trigger the Rights Plan so long as they do not (i) acquire any additional shares of Class A Common Stock or (ii) fall under 4.9% ownership of Class A Common Stock and then re-acquire additional
shares so that they own 4.9% or more of the Class A Common Stock. The Rights Plan does not exempt any future acquisitions of Class A Common Stock by such persons. Any rights held by an Acquiring Person are void and may not be exercised. No
Person shall be an Acquiring Person unless the 

  
 C-1 

 
Board shall have affirmatively determined, in its sole and absolute discretion, within ten (10) business days (or such later time as the Board may determine) after such person has otherwise
met the requirements of becoming an Acquiring Person, that such person shall be an Acquiring Person. 
 The
Rights. Our Board authorized the issuance of one right per each outstanding share of our Class A Common Stock, Class B Common Stock and Class C Common Stock payable to our stockholders of record as of the close of business on
December 21, 2015. Subject to the terms, provisions and conditions of the Rights Plan, if the rights become exercisable, each right would initially represent the right to purchase from us one ten-thousandth of a share of our Series A Junior
Preferred Stock for a purchase price of $4.76, subject to the adjustment in accordance with the terms of the Rights Plan (the “Purchase Price”). If issued, each fractional share of preferred stock would give the stockholder
approximately the same dividend, voting and liquidation rights as does one share of our Class A Common Stock. However, prior to exercise, a right does not give its holder any rights as a stockholder of the Company, including without limitation
any dividend, voting or liquidation rights. 
 Exercisability. The rights will generally not be exercisable until the
earlier of (i) 10 business days after a public announcement by us that a person or group has become an Acquiring Person and (ii) 10 business days after the commencement of a tender or exchange offer by a person or group for 4.9% or more of
the Class A Common Stock. 
 We refer to the date that the rights may first become exercisable as the
“Distribution Date.” Until the Distribution Date, our Class A Common Stock, Class B Common Stock and Class C Common Stock certificates will represent the rights and will contain a notation to that effect. Any transfer of
shares of Class A Common Stock, Class B Common Stock or Class C Common Stock prior to the Distribution Date will constitute a transfer of the associated rights. After the Distribution Date, the rights may be transferred other than in connection
with the transfer of the underlying shares of Class A Common Stock, Class B Common Stock or Class C Common Stock. 

After the Distribution Date and following a determination by the Board that a person is an Acquiring Person, each holder of a right, other
than rights beneficially owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a Right and payment of the Purchase Price, that number of shares of Class A Common Stock,
Class B Common Stock or Class C Common Stock, as the case may be, having a market value of two times the Purchase Price or, at our option, shares of Series A Preferred Stock or other consideration as provided in the Rights Plan. 

Exchange. After the Distribution Date and following a determination by the Board that a person is an Acquiring Person, the Board may
exchange the rights (other than rights owned by such person or group which will have become void), in whole or in part, at an exchange ratio of one share of Class A Common Stock, Class B Common Stock or Class C Common Stock, as the case may be,
or a fractional share of Series A Preferred Stock (or of a share of a similar class or series of the Company’s preferred stock having similar rights, preferences and privileges) of equivalent value, per right (subject to adjustment).

  
 C-2 

 Expiration. The rights and the Rights Plan will expire on the earliest of
(i) December 21, 2025, (ii) the time at which the rights are redeemed pursuant to the Rights Plan, (iii) the time at which the rights are exchanged pursuant to the Rights Plan, (iv) the repeal of Section 382 of the Code
or any successor statute if the Board determines that the Rights Plan is no longer necessary for the preservation of Tax Benefits, (v) the beginning of a taxable year of the Company to which the Board determines that no Tax Benefits may be
carried forward and (vi) the Close of Business on June 30, 2016 if Stockholder Approval has not been obtained. 

Redemption. At any time prior to the time an Acquiring Person becomes such, the Board may redeem the rights
in whole, but not in part, at a price of $0.001 per Right (the “Redemption Price”). The redemption of the rights may be made effective at such time, on such basis and with such conditions as the Board in its sole
discretion may establish. Immediately upon any redemption of the rights, the right to exercise the rights will terminate and the only right of the holders of rights will be to receive the Redemption Price. 

Anti-Dilution Provisions. Our Board may adjust the purchase price of the preferred shares, the number of preferred shares issuable and
the number of outstanding rights to prevent dilution that may occur as a result of certain events, including among others, a stock dividend, a forward or reverse stock split or a reclassification of the preferred shares or our Class A Common
Stock, Class B Common Stock or Class C Common Stock. No adjustments to the purchase price of less than 1% will be made. 

Anti-Takeover Effects. The rights issued under the Rights Plan contain provisions designed to dissuade a person from acquiring a number
of shares of the Company’s Class A Common Stock that could result in an ownership change and thereby limit the use by the Company or cause the loss altogether of the Company’s NOLs. The Rights Plan was not adopted for defensive or
anti-takeover purposes, but rather to protect stockholder value.  
 While this was not the intent of our Board when adopting the
Rights Plan, the rights will have certain anti-takeover effects. The rights will cause substantial dilution to any person or group that attempts to acquire the Company without the approval of our Board. As a result, the overall effect of the rights
may be to render more difficult or discourage any attempt to acquire the Company even if such acquisition may be favorable to the interests of the Company’s stockholders. Because our Board can redeem the rights, the rights should not interfere
with a merger or other business combination approved by the Board. The Rights Plan will terminate if and when the Board determines that no Tax Benefits may be carried forward. 

Amendments. Before the Distribution Date, our Board may amend or supplement the Rights Plan without the consent of the holders of the
rights. After the Distribution Date, our Board may amend or supplement the Rights Plan only to cure an ambiguity, to alter time period provisions, to correct inconsistent provisions, to provide for procedural mechanics designed to implement the
intent of the Rights Plan as determined by our Board or to make any additional changes to the Rights Plan, but only to the extent that those changes do not impair or adversely affect, in any material respect, any holders of Rights, and no such
amendment may cause the rights again to become redeemable or cause the Rights Plan again to become amendable other than in accordance with the applicable timing of the Rights Plan. 

  
 C-3exhibit101securedenergym

      Execution Version          SECURED ENERGY MARKETING AND TRADING FACILITY      AMENDED AND RESTATED   COMMON AGREEMENT   dated as of December 15, 2015   among   TALEN ENERGY MARKETING, LLC,   TALEN ENERGY SUPPLY, LLC,   as Guarantor      BRUNNER ISLAND, LLC,         MONTOUR, LLC,         WILMINGTON TRUST, NATIONAL ASSOCIATION,   as Agent      and      THE SECURED COUNTERPARTIES            

 

   i   TABLE OF CONTENTS   ARTICLE I DEFINITIONS ............................................................................................................2   Section 1.01 Definitions. ..................................................................................................2   Section 1.02 Rules of Interpretation and Construction. ............................................14   ARTICLE II THE FACILITY .......................................................................................................15   Section 2.01 Energy Transactions ................................................................................15   Section 2.02 Individual Thresholds and Common Facility Limit .............................15   Section 2.03 Notification of Secured Counterparty Exposure, Determination   of Adjusted Individual Facility Utilization and Adjustments to   Facility Limit. ...........................................................................................16   Section 2.04 Secured Counterparty ISDA Agreements. ............................................18   Section 2.05 Term of Facility. .......................................................................................19   Section 2.06 Joinder of Additional Counterparties to Common Agreement ...........20   Section 2.07 Conflicts Between Common Agreement and Secured   Counterparty ISDA Agreements ............................................................20   ARTICLE III EFFECTIVENESS; INDIVIDUAL ENERGY TRANSACTIONS .......................21   Section 3.01 Effectiveness. ............................................................................................21   Section 3.02 Individual Energy Transactions .............................................................21   ARTICLE IV REPRESENTATIONS AND WARRANTIES ......................................................21   Section 4.01 Representations and Warranties of the Company ................................21   Section 4.02 Representations and Warranties of the Parent .....................................22   Section 4.03 Intentionally Omitted ..............................................................................26   Section 4.04 Representations and Warranties of Secured Counterparties ..............26   Section 4.05 Representations and Warranties of Agent ............................................27   ARTICLE V COVENANTS..........................................................................................................28   Section 5.01 Covenants of the Company .....................................................................28   Section 5.02 Covenants of the Parent ..........................................................................29   Section 5.03 Intentionally Omitted ..............................................................................32   Section 5.04 Indemnification. .......................................................................................32   ARTICLE VI EVENTS OF DEFAULT; CROSS TERMINATION REMEDIES .......................33   Section 6.01 Events of Default ......................................................................................33   Section 6.02 Cross Termination Events .......................................................................35   Section 6.03 Individual Remedies ................................................................................36   Section 6.04 Remedies of Agent for Benefit of Secured Counterparties ..................36   Section 6.05 Default Notices; Trading Limitations. ...................................................36   ARTICLE VII COLLATERAL; INTERCREDITOR MATTERS ...............................................38   Section 7.01 Intercreditor Agreement .........................................................................38   Section 7.02 No Impairment of Rights under Parent Guaranty or to   Individual Collateral ................................................................................38   Section 7.03 Intentionally Omitted ..............................................................................38     

 

   ii   Section 7.04 Discharge. .................................................................................................38   Section 7.05 Proceeds. ...................................................................................................39   Section 7.06 Reinstatement. ..........................................................................................39   ARTICLE VIII THE AGENT .......................................................................................................40   Section 8.01 Appointment of Agent. ............................................................................40   Section 8.02 Delegation of Duties .................................................................................40   Section 8.03 Agent may act for Individual Secured Counterparties ........................40   Section 8.04 Exculpatory Provisions. ...........................................................................41   Section 8.05 Notice of Default .......................................................................................42   Section 8.06 Non-Reliance on Agent and Secured Counterparties ...........................43   Section 8.07 Agent in Individual Capacity ..................................................................43   Section 8.08 Successor Agent ........................................................................................43   Section 8.09 Indemnification ........................................................................................45   ARTICLE IX MISCELLANEOUS ...............................................................................................46   Section 9.01 Notices .......................................................................................................46   Section 9.02 No Waiver; Cumulative Remedies .........................................................47   Section 9.03 Amendments and Waivers ......................................................................47   Section 9.04 Successors and Assigns ............................................................................49   Section 9.05 Survival .....................................................................................................49   Section 9.06 Counterparts ............................................................................................49   Section 9.07 Severability ...............................................................................................50   Section 9.08 Integration ................................................................................................50   Section 9.09 GOVERNING LAW ................................................................................50   Section 9.10 Submission to Jurisdiction; Waivers ......................................................50   Section 9.11 WAIVER OF JURY TRIAL ...................................................................50   Section 9.12 Confidentiality ..........................................................................................50   Section 9.13 Patriot Act. ................................................................................................51   Section 9.14 Termination of Genco Guaranty and Brunner Island and   Montour Mortgages .................................................................................51   ARTICLE X AMENDMENT AND RESTATEMENT ................................................................51   Section 10.01 Amendment and Restatement of Existing Common Agreement .........51      Schedules:      Schedule A Initial Secured Counterparties   Schedule B ERISA Plans      Exhibits:      Exhibit A. Form of Common Agreement Joinder   Exhibit B. Form of Secured Counterparty ISDA Master Agreement   Exhibit C. Intentionally Omitted   Exhibit D. Form of Parent Guaranty   Exhibit E. Form of Accession Agreement     

 

   iii   Exhibit F. Intentionally Omitted   Exhibit G-1. Form of Notice of Threshold Adjustment – Secured Counterparty Form   Exhibit G-2. Form of Notice of Threshold Adjustment – Company Form   Exhibit H-1. Form of Secured Counterparty Exposure Notification – Secured Counterparty   Form   Exhibit H-2. Form of Secured Counterparty Exposure Notification – Company Form   Exhibit I-1. Form of Notice of Secured Counterparty ISDA Agreement Event of Default –   Company Form   Exhibit I-2. Form of Notice of Secured Counterparty ISDA Agreement Event of Default –   Secured Counterparty Form   Exhibit I-3. Form of Trading Limitation Notice   Exhibit I-4. Form of Trading Limitation Notice   Exhibit J-1. Form of Revocation of Trading Limitation Notice   Exhibit J-2. Form of Notice of Cure of Secured Counterparty ISDA Agreement Event of   Default – Company Form   Exhibit J-3. Form of Notice of Cure of Secured Counterparty ISDA Agreement Event of   Default – Secured Counterparty Form   Exhibit K-1. Form of Notice of Early Termination Date – Company Form   Exhibit K-2. Form of Notice of Early Termination Date – Secured Counterparty Form   Exhibit L-1. Form of Notice to the Agent of an Early Termination Date – Company Form   Exhibit L-2. Form of Notice to the Agent of an Early Termination Date – Secured   Counterparty Form   Exhibit M. Form of Notice to the Secured Counterparties of an Early Termination Date   Exhibit N-1. Form of Vote Request – Company Form   Exhibit N-2. Form of Vote Request – Secured Counterparty Form   Exhibit N-3. Form of Vote Notice   Exhibit O. Form of Secured Counterparty Confirmation of Eligible Collateral Posting        

 

      AMENDED AND RESTATED COMMON AGREEMENT dated as of   December 15, 2015 (this “Agreement”), among TALEN ENERGY MARKETING, LLC   (formerly known as PPL EnergyPlus, LLC), a Pennsylvania limited liability company (the   “Company”), TALEN ENERGY SUPPLY, LLC (formerly known as PPL Energy Supply,   LLC), a Delaware limited liability company (the “Parent”), as a Guarantor, BRUNNER   ISLAND, LLC (formerly known as PPL Brunner Island, LLC), a Delaware limited liability   company (“Brunner Island”), MONTOUR, LLC (formerly known as PPL Montour, LLC), a   Delaware limited liability company (“Montour”), WILMINGTON TRUST, NATIONAL   ASSOCIATION (as successor by merger to Wilmington Trust, FSB), as agent on behalf of the   Secured Counterparties (together with its permitted successors and assigns, the “Agent”), and the   Secured Counterparties from time to time parties hereto.   RECITALS   The Company, the Parent, Brunner Island, Montour, the Agent and the Secured   Counterparties previously entered into that certain Secured Energy Marketing and Trading   Facility Common Agreement, dated as of November 1, 2010 (as heretofore amended, modified   and supplemented, the “Existing Common Agreement”), and certain other agreements to   establish a secured energy marketing and trading facility (the “Facility”).   Under the Facility, the Company and the Secured Counterparties may from time to time   enter into transactions involving the purchase and sale of electrical energy, generating capacity,   fuel and other energy related commodities and other Energy Transactions pursuant to the   Secured Counterparty ISDA Agreements; and under each Parent Guaranty, the Parent guarantees   to the applicable Secured Counterparty a portion of the Company’s payment obligations under   the Secured Counterparty ISDA Agreement with such Secured Counterparty; under the Genco   Guaranty, Brunner Island and Montour have previously jointly and severally guaranteed up to   $800,000,000 of the Company’s payment obligations in respect of all Secured Counterparty   ISDA Agreements and the Company’s payment obligations to the Agent under the Facility   Documents; Brunner Island previously entered into the Brunner Island Mortgage in order to   secure its obligations under the Genco Guaranty and certain other obligations; and, Montour   previously entered into the Montour Mortgage in order to secure its obligations under the Genco   Guaranty and certain other obligations.   The Company has provided the Secured Counterparties with certain other collateral with   respect to obligations under the Existing Common Agreement; the liens of the Brunner Island   and Montour Mortgage have been released in accordance with the Existing Common Agreement   and the Genco Guaranty has been terminated in accordance with its terms and Brunner Island   and Montour have been released from their obligations thereunder.   The parties intend that the Company’s obligations under the Facility Documents be   secured pursuant to the Collateral Agreement (as defined below), and to confirm the same, the     

 

   2   Agent will become a party to the Intercreditor Agreement and become a Secured Debt   Representative thereunder on behalf of the Secured Counterparties.   The parties wish to amend and restate the Existing Common Agreement in order to,   among other things, confirm the termination of the Genco Guaranty and the release, satisfaction   and discharge of the Brunner Island Mortgage and the Montour Mortgage, to reflect the   provision of additional collateral for the benefit of the Secured Counterparties in accordance with   the Collateral Agreement referred to below and subject to the Intercreditor Agreement, and to   reconstitute the Facility as agreed below.   This Agreement contains representations and warranties and covenants common to all   Energy Transactions under the Facility, and provisions defining the role of the Agent and its   relationship with the Secured Counterparties.   In consideration of the foregoing, the parties do hereby agree as follows:   ARTICLE I      DEFINITIONS   Section 1.01 Definitions.   “Adjusted Aggregate Facility Utilization” means, for any Valuation Date, the sum   of each Adjusted Individual Facility Utilization for that Valuation Date for all Secured   Counterparties.   “Adjusted Facility Limit” has the meaning set forth in Section 7.04(b).   “Adjusted Individual Facility Utilization” means, for any Valuation Date and for   each Secured Counterparty:   (a) subject to Section 2.03(b):   (i) the Individual Facility Utilization for such Secured   Counterparty as of such Valuation Date multiplied by   (ii) the lesser of one and the result of (A) the Facility Limit   (including as adjusted in accordance with Sections 2.03(c), 2.05 and 7.04 and solely for   purposes of this definition, as adjusted in accordance with Section 2.03(b)) divided by   (B) the sum of the Individual Facility Utilization for all Secured Counterparties (taking   into account, when applicable, any increases to Individual Facility Utilizations as a result   of CT Decreases for all CTD Secured Counterparties) other than any Terminated Secured   Counterparty;   provided, that, if the Counterparty Threshold for any Secured Counterparty will decrease   effective as of such Valuation Date pursuant to Section 2.02 as a result of a Threshold     

 

   3   Modification and the fraction determined under clause (ii) above (after giving effect to such   decrease and any similar decreases with respect to any other Secured Counterparty) would be   less than one (referred to as the “Overutilization Condition”), then, for such Valuation Date and   each Valuation Date thereafter until the Overutilization Condition is no longer true, the following   shall apply:   (1) such Secured Counterparty shall be considered a “CTD Secured   Counterparty”;   (2) the amount of such decrease, together with the amount of any further   decreases effective during such period, shall be considered a “CT Decrease”; and   (3) the Adjusted Individual Facility Utilization for each CTD Secured   Counterparty shall be determined utilizing the amount of its Counterparty Threshold in   effect immediately prior to giving effect to such CT Decrease; provided, however, that, if   the Facility Limit exceeds the sum of the amount determined in clause (ii)(B) above (as   calculated without giving effect to any CT Decrease) (such excess, the “CTD Facility   Limit Excess”), then the Adjusted Individual Facility Utilization for each CTD Secured   Counterparty will be increased pro rata based on the amount by which such CTD Secured   Counterparty’s Individual Facility Utilization (calculated after giving effect to the CT   Decrease) exceeds its respective Adjusted Individual Facility Utilization (as initially   calculated above without giving effect to any CT Decrease), but shall in no event exceed   such CTD Secured Counterparty’s Facility Threshold.   “Adjusted Obligations” means, with respect to each Secured Counterparty and   any time any proceeds are distributed under Section 7.05, the greater of zero and the result of the   following:   (i) all Obligations then owed to such Secured Counterparty; less   (ii) the sum of:   (x) such Secured Counterparty’s Counterparty Threshold as of the   Relevant Valuation Date for such Secured Counterparty; plus   (y) such Secured Counterparty’s Bilateral Collateral Entitlement as of   the Relevant Valuation Date or, if the Posted Credit Support is greater than the   Bilateral Collateral Entitlement, the Posted Credit Support as of such Relevant   Valuation Date posted to such Secured Counterparty;   provided, that, if such Secured Counterparty is a CTD Secured Counterparty as of such Relevant   Valuation Date, then (A) the calculations set forth in clause (ii) above shall utilize the   Counterparty Threshold without giving effect to any CT Decrease, and (B) such CTD Secured   Counterparty’s Adjusted Obligations will be increased by the amount of any increase to such   CTD Secured Counterparty’s Adjusted Individual Facility Utilization pursuant to the final   proviso in the definition of “Adjusted Individual Facility Utilization”.     

 

   4   “Affected Party” has the meaning given to such term in the Secured Counterparty   ISDA Agreements.   “Affiliate” means, with respect to a Person, any other Person who is directly or   indirectly controlling, controlled by or under common control with such Person.  A Person shall   be deemed to control another Person if such Person possesses, directly or indirectly, the power to   direct or cause the direction of the management or policies of the controlled Person, whether   through the ownership of stock or its equivalent, by contract or otherwise.   “Agent” has the meaning set forth in the Preamble of this Agreement.   “Aggregate Capacity” means the total aggregate amount of electric generating   capacity, as measured in megawatts, of all power generation facilities that constitute Collateral   owned by the Company or any Affiliate of the Company at the time of such determination;   provided, however, that in the event that a facility is not one hundred percent (100%) owned by   the Company or an Affiliate of the Company, the Aggregate Capacity attributable to such facility   shall be reduced pro rata based on the portion of such facility owned by the Company or its   Affiliates.   “Agreement” has the meaning set forth in the Preamble hereof.   “Automatic Threshold Adjustment” means, with respect to any Secured   Counterparty, any reduction or increase in its Counterparty Threshold or Facility Threshold that   occurs as a result of the operation of the applicable Secured Counterparty ISDA Agreement (in   existence on the date of this Agreement or the date such Secured Counterparty becomes a party   to this Agreement), including any such change that results from any downgrade in the ratings   assigned by any Rating Agency to any Credit Party or that arises as a result of the occurrence of   an Event of Default or Termination Event under (and as defined in) the applicable Secured   Counterparty ISDA Agreement.  An “Automatic Threshold Adjustment” shall not be a Threshold   Modification.   “Bilateral Collateral Entitlement” means, with respect to each Secured   Counterparty and any time any proceeds are distributed under Section 7.05, the result of    (a) such Secured Counterparty’s Secured Counterparty Exposure as of the   Relevant Valuation Date, less    (b) such Secured Counterparty’s Adjusted Individual Facility Utilization   as of the Relevant Valuation Date, less    (c) such Secured Counterparty’s Counterparty Threshold, in each case, as   of the Relevant Valuation Date.   provided, that, if such Secured Counterparty is a CTD Secured Counterparty as of such Relevant   Valuation Date, then (A) the calculation of the Bilateral Collateral Entitlement shall utilize the   Counterparty Threshold without giving effect to any CT Decrease, and (B) such CTD Secured   Counterparty’s Bilateral Collateral Entitlement will be decreased by the amount of any increase     

 

   5   to such CTD Secured Counterparty’s Adjusted Individual Facility Utilization pursuant to the   final proviso to the definition of “Adjusted Individual Facility Utilization”.   “Brunner Island Mortgage” means the Open-End Mortgage, Security Agreement   and Fixture Filing dated as of October 26, 2010 from Brunner Island to the Agent relating to   Brunner Island’s interest in the Brunner Island Generating Station located in York County,   Pennsylvania.   “Business Day” means a day on which commercial banks are open for business   (including dealings in foreign exchange and foreign currency deposits) in New York City.   “Brunner Island” has the meaning set forth in the Preamble of this Agreement.   “CERCLA” has the meaning set forth Section 4.02(k)(i)(C).   “Collateral” shall have the meaning ascribed to it in the Intercreditor Agreement.   “Collateral Agreement” means the Guarantee and Collateral Agreement dated as   of June 1, 2015 among the Parent, the Subsidiaries of the Parent party thereto and Citibank,   N.A., as Collateral Trustee.   “Collateral Parties” shall mean Parent and the Subsidiary Guarantors.   “Collateral Security Documents” shall mean the “Security Documents” as defined   in the Intercreditor Agreement.   “Collateral Trustee” shall have the meaning specified in the Intercreditor   Agreement.   “Common Agreement Joinder” means a Common Agreement Joinder   substantially in the form of Exhibit A.   “Company” has the meaning set forth in the Preamble of this Agreement.   “Confirmation” has the meaning given to such term in the applicable Secured   Counterparty ISDA Agreement.   “Corporation” means a corporation, association, company, joint stock company,   limited liability company, partnership or business trust.   “Counterparty Threshold” has the meaning given to such term in the Secured   Counterparty ISDA Agreements and for purposes of this Agreement shall be deemed to be the   amount notified to the Agent in accordance with Section 2.02.   “Credit Parties” means the Company and the Parent for purposes of this   Agreement.  For purposes of the Accession Agreement contemplated by Exhibit E hereto,   “Credit Parties” shall have the meaning set forth in the Intercreditor Agreement.     

 

   6   “Credit Support Annex” means, with respect to any Secured Counterparty ISDA   Agreement, the Credit Support Annex contained in the related Schedules and Annexes.   “Cross Termination Event” has the meaning set forth in Section 6.02(a).   “CT Decrease” has the meaning set forth in the definition of Adjusted Individual   Facility Utilization.   “CTD Facility Limit Excess” has the meaning set forth in the definition of   Adjusted Individual Facility Utilization.   “CTD Secured Counterparty” has the meaning set forth in the definition of   Adjusted Individual Facility Utilization.   “Default” means any occurrence, circumstance or event, or any combination   thereof, which, with the lapse of time or the giving of notice, or both, would constitute an Event   of Default.   “Early Termination Date” means, with respect to any Secured Counterparty and   Secured Counterparty ISDA Agreement, the Early Termination Date designated or occurring   thereunder that results in the termination of all Energy Transactions then outstanding under such   Secured Counterparty ISDA Agreement.   “Effective Date” means December 15, 2015, or such other date as the Credit   Parties, the Agent and the Initial Secured Counterparties shall agree.   “Eligible Collateral” has, with respect to any Secured Counterparty, the meaning   set forth in the applicable Secured Counterparty ISDA Agreement.   “Energy Transaction” means an “Energy Transaction” as such term is defined in   the Secured Counterparty ISDA Agreements.   “Energy Transaction Date” has the meaning set forth in Section 3.02.   “Environmental Claims” shall mean any administrative, regulatory or judicial   actions, suits, demands, demand letters, directives, claims, liens, notices of noncompliance or   violation, investigations and/or adjudicatory proceedings relating to noncompliance with, or   liability arising under, Environmental Law or any permit issued, or any approval given, under   any such Environmental Law (hereafter, “Claims”), including, without limitation, (a) any Claims   by governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial   or other actions or damages pursuant to any Environmental Law and (b) any Claims by any third   party arising out of or relating to the presence of, or exposure to, Hazardous Materials.   “Environmental Law” shall mean any applicable Federal, state, foreign or local   statute, law, rule, regulation, ordinance, code and rule of common law now or hereafter in effect   and in each case as amended, and any binding judicial or administrative interpretation thereof,   including any binding judicial or administrative order, consent decree or judgment, relating to     

 

   7   the protection of the environment or human health or safety (as such relates to exposure to   Hazardous Materials) or Hazardous Materials.   “ERISA” shall mean the U.S. Employee Retirement Income Security Act of 1974,   as amended from time to time, and the regulations promulgated and rulings issued thereunder.   “ERISA Affiliate” shall mean any person that would be deemed at any relevant   time to be a single employer or otherwise aggregated with any Credit Party or any of such Credit   Party’s Subsidiaries under Section 414(b) or (c) of the Code or Section 4001 of ERISA, or for   purposes of Section 412 of the Code, under Section 414(m) or (o) of the Code.   “ERISA Event” shall mean any one or more of the following:   (a) any Reportable Event;   (b) the filing of a notice of intent to terminate any Plan, if such termination   would require material additional contributions in order to be considered a standard termination   within the meaning of Section 4041(b) of ERISA, the filing under Section 4041(c) of ERISA of a   notice of intent to terminate any Plan or the termination of any Plan under Section 4041(c) of   ERISA;   (c) the institution of proceedings, or the occurrence of an event or condition   which would reasonably be expected to constitute grounds for the institution of proceedings by   the PBGC under Section 4042 of ERISA for the termination of, or the appointment of a trustee to   administer, any Plan;   (d) the failure to make a required contribution to any Plan that would   reasonably be expected to result in the imposition of a lien or other encumbrance or the provision   of security under Section 430 of the Code or Section 303 or 4068 of ERISA, or the arising of   such a lien or encumbrance; the failure to satisfy the minimum funding standard under Section   412 of the Code or Section 302 of ERISA, whether or not waived; or the filing of any request for   or receipt of a minimum funding waiver or an extension of any amortization period under   Section 412 of the Code with respect to any Plan, or that such filing may be made;   (e) a determination that any Plan is, or is expected to be, in “at risk” status (as   defined in Section 303(i)(4) or Section 430(i)(4) of the Code;   (f) the failure to make any required contribution to a Multiemployer Plan; the   complete or partial withdrawal of any Credit Party or any of such Credit Party’s Subsidiaries or   any ERISA Affiliate from a Multiemployer Plan; the reorganization or insolvency under Title IV   of ERISA of any Multiemployer Plan; or notification that a Multiemployer Plan is in   “endangered” or “critical” status within the meaning of Section 305 of ERISA or Section 412 of   the Code;   (g) any Credit Party or any of such Credit Party’s Subsidiaries or any ERISA   Affiliate ceases operations at a facility so as to become subject to the provisions of Section   4062(e) of ERISA or withdraw as a substantial employer so as to become subject to the     

 

   8   provisions of Section 4063(a) of ERISA or ceases making contributions to any Plan subject to   Section 4064(a) of ERISA;   (h) any Credit Party or any of such Credit Party’s Subsidiaries of any ERISA   Affiliates incurs liability under Section 4069 or 4212(c) of ERISA; or   (i) any Credit Party or any of such Credit Party’s Subsidiaries have incurred   with respect to a Plan or any Multiemployer Plan a material tax under Chapter 43 of the Code or   a material civil penalty under Section 409, 502(i) or 502(l) of ERISA.   “Event of Default” has the meaning set forth in Section 6.01.   “Extension Date” has the meaning set forth in Section 2.05(a).   “Extension Term” has the meaning set forth in Section 2.05(a).   “Facility” has the meaning set forth in the Recitals.   “Facility Documents” means this Agreement and the Parent Guaranty.   “Facility Limit” means the Initial Facility Limit, as adjusted pursuant to   Section 2.03(c), 2.05 and/or 7.04 of this Agreement (but without giving effect to any adjustments   pursuant to Section 2.03(b)).   “Facility Threshold” for each Secured Counterparty has the meaning given to   such term in the applicable Secured Counterparty ISDA Agreement and for purposes of this   Agreement shall be deemed to be the amount notified to the Agent in accordance with Section   2.02 and the other provisions of this Agreement.   “Fee Letter” has the meaning set forth in Section 5.01(g).   “Final Notification Time” means 12:00 noon, New York City time, on a Business   Day.   “Fourth Level Obligations” means, with respect to each Secured Counterparty, the   amount, if any, by which:   (i) such Secured Counterparty’s Adjusted Obligations, exceed   (ii) such Secured Counterparty’s Third Level Obligations distributed in   accordance with Section 7.05(c).   “GAAP” means United States generally accepted accounting principles applied   on a consistent basis.   “Genco Guaranty” means the joint and several guaranty made by Brunner Island   and Montour in connection with the Facility.     

 

   9   “Governmental Authority” means any federal, state or local government,   authority, agency, central bank, quasi-governmental authority, court or other body or entity, and   any arbitrator, with authority to bind a party at law.   “Hazardous Materials” shall mean (a) any petroleum or petroleum products,   radioactive materials, or asbestos containing materials; (b) any chemicals, materials or   substances defined as or included in the definition of “hazardous substances,” “hazardous   waste,” “hazardous materials,” “extremely hazardous waste,” “restricted hazardous waste,”   “toxic substances,” “toxic pollutants,” “contaminants,” or “pollutants” or words of similar   import, under any Environmental Law; and (c) any other chemical, material or substance, which   is prohibited, limited or regulated by any Environmental Law.    “Indebtedness” shall have the meaning assigned to it in the Primary Credit   Facility.    “Indemnitee” has the meaning given such term in Section 5.04(a).   “Individual Facility Utilization” means, for any Valuation Date and for each   Secured Counterparty, the lesser of (a) such Secured Counterparty’s Facility Threshold and   (b) an amount equal to the excess, if any, of the Secured Counterparty Exposure of such Secured   Counterparty for that Valuation Date over such Secured Counterparty’s Counterparty Threshold.   “Initial Aggregate Capacity” shall be 12,442 megawatts.   “Initial Facility Limit” shall be $1,300,000,000.   “Initial Notification Time” means 10:00 a.m., New York City time, on a Business   Day.   “Initial Secured Counterparties” means the Secured Counterparties that are parties   to this Agreement on the Effective Date and that are identified in Schedule A.   “Initial Term” has the meaning given such term in Section 2.05(a).   “Intercreditor Agreement” means the Collateral Trust and Intercreditor   Agreement, dated as of June 1, 2015, among Parent, the Subsidiary Guarantors party thereto and   Citibank, N.A., as Collateral Trustee thereunder and the other parties from time to time party   thereto.   “Interest Rate Protection Agreements” means any agreement providing for an   interest rate swap, cap or collar, or any other financial agreement designed to protect against   fluctuations in interest rates.   “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended,   or any successor statute.     

 

   10   “Liens” means, with respect to any asset, any mortgage, lien, pledge, charge,   security interest or encumbrance intended to confer or having the effect of conferring upon a   creditor a preferential interest.   “Material Adverse Effect” means any event or circumstance which has had a   material adverse effect on (i) the business, assets, financial condition or results of operations, in   each case, of the Credit Parties and the Subsidiary Guarantors, taken as a whole, (ii) the rights   and remedies, taken as a whole, of the Agent, the Collateral Trustee and the Secured   Counterparties under the Collateral Security Documents or (iii) the ability of the Credit Parties   and the Subsidiary Guarantors, taken as a whole, to perform their payment obligations under the   Collateral Security Documents.   “Mid-Exposure” means, with respect to any Valuation Date, the average of the   final valuation of Secured Counterparty Exposure provided by the Company with respect to such   Valuation Date and the valuation of Secured Counterparty Exposure provided by the Secured   Counterparty with respect to such Valuation Date.   “Montour” has the meaning set forth in the Preamble of this Agreement.   “Montour Mortgage” means the Open-End Mortgage, Security Agreement and   Fixture Filing dated as of October 26, 2010 from PPL Montour to the Agent relating to PPL   Montour’s interest in the Montour Generating Station located near Washingtonville,   Pennsylvania.    “Mortgaged Property” shall have the meaning ascribed to it in the Intercreditor   Agreement.   “Multiemployer Plan” means any multiemployer plan as defined in Section   4001(a)(3) of ERISA, which is contributed to by (or to which there is or may be an obligation to   contribute of) any Credit Party or any of such Credit Party’s Subsidiaries or with respect to   which any Credit Party or any of such Subsidiaries has had any liability (including on account of   an ERISA Affiliate).   “Non-Recourse Debt” shall have the meaning assigned to it in the Primary Credit   Facility.    “Notice of Early Termination Date” has the meaning set forth in Section 6.05(d).   “Obligations” means all obligations owed to any Secured Counterparty or the   Agent under the relevant Secured Counterparty ISDA Agreements or the Facility Documents.   “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets   Control.   “Parent” has the meaning set forth in the Preamble of this Agreement.     

 

   11   “Parent Guaranty” means each guaranty by the Parent to a Secured Counterparty   of all or a portion of the Company’s payment obligations under the Secured Counterparty ISDA   Agreement with such Secured Counterparty, substantially in the form of Exhibit D.   “Parent’s Rating” means the senior unsecured long-term debt rating of the Parent   (without giving effect to any third party credit enhancement) from a Rating Agency.   “Patriot Act” has the meaning set forth in Section 9.13.   “PBGC” means the Pension Benefit Guaranty Corporation or any entity   succeeding to any or all of its functions under ERISA.   “Person” means an individual, a corporation, a partnership, an association, a   limited liability company, a trust or an unincorporated association or any other entity or   organization, including a government or political subdivision or an agency or instrumentality   thereof.   “Plan” shall mean an “employee benefit plan” as defined in Section 3 of ERISA   (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412   of the Code or Section 302 of ERISA maintained or contributed to by any Credit Party or any of   such Subsidiaries or with respect to which any Credit Party or any of such Subsidiaries has had   any liability (including on account of an ERISA Affiliate).   “Posted Credit Support” has the meaning set forth in the Secured Counterparty   ISDA Agreement.   “Primary Credit Facility” shall mean the $1,850,000,000 Credit Agreement dated   as of June 1, 2015 among the Parent, Citibank, N.A., as administrative agent and as collateral   trustee and each lender and each issuing lender from time to time party thereto, as amended,   amended and restated, supplemented or otherwise modified from time to time, or any successor   or substitute agreement that is the Parent’s primary credit facility.   “Rating Agency” means any of Standard & Poor’s Financial Services LLC, a   subsidiary of The McGraw-Hill Companies, Inc., or Moody’s Investors Service, Inc., or in any   case its respective successor, or absent any such successor, any such nationally recognized   statistical rating organization as the Parent and the Required Secured Counterparties may select.   “Relevant Valuation Date” means, with respect to each Secured Counterparty and   any time proceeds are distributed under Section 7.05, the Valuation Date for which the notice   delivered by the Agent under Section 2.03(a) has most recently been issued to such Secured   Counterparty prior to such time.   “Reportable Event” shall mean an event described in Section 4043(c) of ERISA   with respect to a Plan that is subject to Title IV of ERISA other than those events as to which the   30-day notice period is waived under applicable regulations.   “Required Secured Counterparties” means, at any time, the Secured   Counterparties whose combined Voting Interest is greater than 50% of the aggregate Voting     

 

   12   Interests as of the Final Notification Time on the second Business Day prior to the date on which   the determination is made pursuant to this Agreement or the relevant Facility Document, as   applicable, provided that (i) if any Secured Counterparty shall cease to have been a party to this   Agreement at the time at which such determination is made, then the Required Secured   Counterparties shall be determined without regard to such former Secured Counterparty, based   on Voting Interest of the remaining Secured Counterparties as of the Final Notification Time on   such second prior Business Day and (ii) for the purposes of determining the “Required Secured   Counterparties”, if at such time the aggregate Voting Interests of all Secured Counterparties is   zero, then the Required Secured Counterparties shall mean all Secured Counterparties.   “Responsible Officer” means, as to any Person, the chief executive officer,   president, chief financial officer, controller, treasurer or assistant treasurer of such Person.   “Sanctioned Country” means a country or territory that is, or whose government   is, the subject of comprehensive territorial Sanctions (currently, Crimea, Cuba, Iran, North   Korea, Sudan, and Syria).   “Sanctioned Person” shall mean, at any time, any Person listed in any Sanctions-   related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S.   Department of the Treasury, the U.S. Department of State, or by the United Nations Security   Council, the European Union or any European Union member state.   “Sanctions” shall mean applicable economic or financial sanctions or trade   embargoes imposed, administered or enforced from time to time by (a) the U.S. government,   including those administered by the Office of Foreign Assets Control of the U.S. Department of   the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the   European Union or Her Majesty’s Treasury of the United Kingdom.   “SEC” means the Securities and Exchange Commission, or any successor thereto.   “Second Notification Time” means 11:00 a.m., New York City time, on a   Business Day.   “Secured Counterparty” means a party to this Agreement (including a party that   has executed a Common Agreement Joinder) with whom the Company may enter into one or   more Energy Transactions under the Facility pursuant to this Agreement and such party’s   Secured Counterparty ISDA Agreement; provided, that, neither the Company nor any of its   Affiliates may be a Secured Counterparty.   “Secured Counterparty Exposure” means for any Valuation Date and with respect   to each Secured Counterparty, (i) prior to the occurrence of an Early Termination Date in respect   of such Secured Counterparty ISDA Agreement, the amount, if any, that would be payable to the   Secured Counterparty by the Company (expressed as a positive number or zero) pursuant to   Section 6(e)(ii)(2)(A) of such Secured Counterparty ISDA Agreement if all Energy Transactions   under such Secured Counterparty ISDA Agreement were being terminated as of the Valuation   Time with respect to such Valuation Date (it being understood, for the avoidance of doubt, that if   any amount payable under such Section 6(e)(ii)(2)(A) would be payable by the Secured   Counterparty to the Company, then the Secured Counterparty Exposure will be zero); and     

 

   13   (ii) after the occurrence of an Early Termination Date in respect of such Secured Counterparty   ISDA Agreement, the amount of the Termination Payment, if any, due and owing to the Secured   Counterparty under such Secured Counterparty ISDA Agreement as determined in accordance   with the terms of the Secured Counterparty ISDA Agreement.   “Secured Counterparty ISDA Agreement” means, with respect to any Secured   Counterparty, the ISDA Master Agreement entered into by such Secured Counterparty with the   Company in accordance with Section 2.04, including the related Schedules and Annexes   (including the Credit Support Annex) thereto (substantially in the form of Exhibit B hereto) and   the Confirmation for each Energy Transaction to which such Secured Counterparty is a party   together with any modification thereto to the extent such modifications are not inconsistent with   the terms hereof.   “Secured Debt Representative” shall have the meaning set forth in the   Intercreditor Agreement, and with respect to the Obligations hereunder, shall mean the Agent.   “Significant Subsidiary” shall mean any Subsidiary that would be a “significant   subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, as such Regulation is in effect   on the date of this Agreement.   “Subsidiary” means any Corporation, a majority of the outstanding Voting Stock   of which is owned, directly or indirectly, by the Parent or one or more other Subsidiaries of the   Parent.   “Subsidiary Guarantors” shall have the meaning ascribed thereto in the   Intercreditor Agreement, but shall exclude any Immaterial Subsidiary and any Excluded   Subsidiary (in each case as such terms are defined in the Credit Agreement referred to in the   Intercreditor Agreement).   “Synthetic Lease” means any synthetic lease, tax retention operating lease, off-   balance sheet loan or similar off-balance sheet financing product where such transaction is   considered borrowed money indebtedness for tax purposes but is classified as an operating lease   in accordance with GAAP.   “Terminated Secured Counterparty” has the meaning set forth in   Section 2.03(b)(i).   “Termination Payment” means the amount, if any, payable to the Secured   Counterparty under the applicable Secured Counterparty ISDA Agreement upon a termination   (whether as a result of the occurrence of an event of default or other termination event) of the   Energy Transactions outstanding under such Secured Counterparty ISDA Agreement, including   any “Settlement Amount” or “Termination Payment” (as defined in such agreement) and any   accrued and unpaid interest thereon.   “Termination Valuation Date” means, with respect to any notice of designation of   an Early Termination Date delivered by a Secured Counterparty pursuant to Section 2.03(b),   either:      

 

   14   (a) if such notice is delivered on a Valuation Date prior to the Second   Notification Time, the Valuation Date on which such notice is delivered; or   (b) in all other cases, the next Valuation Date occurring after such   notice is delivered.   “Third Level Obligations” means, with respect to each Secured Counterparty, the   lesser of:   (a) such Secured Counterparty’s Adjusted Individual Facility   Utilization as of the Relevant Valuation Date (calculated in accordance with Section 2.03(b)),   and   (b) such Secured Counterparty’s Adjusted Obligations.   “Threshold Amount” shall mean $250,000,000.   “Threshold Modification” means, with respect to any Secured Counterparty, any   modification or amendment to its Counterparty Threshold or Facility Threshold agreed to by the   Company and any Secured Counterparty following the Effective Date or the date that the   Secured Counterparty became a party to this Agreement, but for the avoidance of any doubt,   shall not include an Automatic Threshold Adjustment.   “Trading Limitation Notice” has the meaning set forth in Section 6.05(b).   “Valuation Date” means each Business Day.   “Valuation Time” means, for each Valuation Date, the close of business on the   Business Day before such Valuation Date.   “Voting Interest” means, with respect to any Secured Counterparty at any time,   (x) if there are no Energy Transactions in effect between such Secured Counterparty and the   Company at such time and such Secured Counterparty is not a Terminated Secured Counterparty,   zero; (y) if such Secured Counterparty is a Terminated Secured Counterparty, its Adjusted   Individual Facility Utilization at such time; and (z) if there are any Energy Transactions in effect   between such Secured Counterparty and the Company at such time, the greater of (i) such   Secured Counterparty’s Adjusted Individual Facility Utilization and (ii) 50% of its Facility   Threshold at such time.   “Voting Stock” means stock (or other interests) of a Corporation having ordinary   voting power for the election of directors, managers or trustees thereof, whether at all times or   only so long as no senior class of stock has such voting power by reason of any contingency.   “Wholly-Owned Subsidiary” means, with respect to any Person at any date, any   Subsidiary of such Person all of the Voting Stock of which (except directors’ qualifying shares)   are at the time directly or indirectly owned by such Person.     

 

   15   Section 1.02 Rules of Interpretation and Construction.   (a) The singular includes the plural and the plural includes the   singular.  The definitions of terms apply equally to the singular and plural forms of the terms   defined.     (b) A reference to a law, regulation or rule includes any amendment or   modification to such law, regulation or rule, and all regulations and rulings promulgated   thereunder.   (c) A reference to a Person includes its permitted successors,   permitted replacements and permitted assigns.   (d) The words “include,” “includes” and “including” are not limiting.   (e) A reference in this Agreement to an Article, Section, Exhibit,   Schedule, Annex or Appendix is to the Article, Section, Exhibit, Schedule, Annex or Appendix   of this Agreement unless otherwise indicated.  In the event of any conflict between the   provisions of this Agreement (exclusive of the Exhibits, Schedules, Annexes and Appendices   thereto) and any Exhibit, Schedule, Annex or Appendix thereto, the provisions of this Agreement   shall control.   (f) References to any document, instrument or agreement (a) shall   include all exhibits, schedules, annexes and other attachments thereto, (b) shall include all   documents, instruments or agreements issued or executed in replacement thereof, and (c) shall   mean such document, instrument or agreement, or replacement or predecessor thereto, as   amended, amended and restated, modified and supplemented from time to time and in effect at   any given time.   (g) The words “hereof,” “herein” and “hereunder” and words of   similar import when used in this Agreement shall refer to such document as a whole and not to   any particular provision of such document.   (h) Any reference to a time of day shall be deemed to be a reference to   the local prevailing time in New York City, New York.   (i) Unless the context otherwise requires, whenever any statement is   qualified by “to the best knowledge of” or “known to” (or a similar phrase) any Person that is not   a natural person, it is intended to indicate that the senior management of such Person has   conducted a commercially reasonable inquiry and investigation prior to making such statement   and no member of the senior management of such Person (including managers, in the case of   limited liability companies, and general partners, in the case of partnerships) has current actual   knowledge of the inaccuracy of such statement.     

 

   16   ARTICLE II      THE FACILITY   Section 2.01 Energy Transactions.  The Company and each Secured   Counterparty may, but are not required to, enter into Energy Transactions from time to time   under the terms of this Agreement and the applicable Secured Counterparty ISDA Agreement,   and in the event that the Company and such Secured Counterparty so agree to enter into such   Energy Transactions, each such Energy Transaction shall be subject to the terms of the Facility   Documents and the applicable Secured Counterparty ISDA Agreement.  This Agreement and the   other Facility Documents are intended to provide credit support for the obligations of the   Company to the Secured Counterparties under the respective Secured Counterparty ISDA   Agreements.   Section 2.02 Individual Thresholds and Common Facility Limit.  In   connection with the Facility contemplated by this Agreement:  (a) the Company and each   Secured Counterparty shall agree on an individual basis in each separate Secured Counterparty   ISDA Agreement to an individual unsecured credit limit for the Company as reflected in the   definition of “Counterparty Threshold” and an additional individual credit limit for the   Company, to be secured by the Collateral, as reflected in the definition of “Facility Threshold”;   (b) the Company shall post Eligible Collateral on a separate basis to each Secured Counterparty   on the terms set forth in the applicable Secured Counterparty ISDA Agreement; and (c) the   Parent shall execute a Parent Guaranty in favor of each Secured Counterparty to guarantee the   Company’s payment obligations under the Secured Counterparty ISDA Agreement with such   Secured Counterparty in an amount equal to the sum of the respective Counterparty Threshold   and Facility Threshold (and such other amounts as are specified in the form of such guaranty   attached as Exhibit D). The Company and each Secured Counterparty shall notify the Agent of   the respective Facility Threshold and Counterparty Threshold applicable to each Secured   Counterparty upon the execution of the Secured Counterparty ISDA Agreement with such   Secured Counterparty.  Each Secured Counterparty (in the form attached hereto as Exhibit G-1)   and the Company (in the form attached hereto as Exhibit G-2) shall promptly notify the Agent   (with a copy to the other party) of any Threshold Modification or any Automatic Threshold   Adjustment.  Any modification or amendment of a Facility Threshold or a Counterparty   Threshold notified pursuant to this Section 2.02 shall, for purpose of this Agreement, become   effective (i) as of the Valuation Date such notice is delivered to the Agent if such notice is   delivered at or prior to the Second Notification Time and (ii) in all other cases, on the Valuation   Date following the Valuation Date on which such notice is delivered to the Agent.   Section 2.03 Notification of Secured Counterparty Exposure, Determination   of Adjusted Individual Facility Utilization and Adjustments to Facility Limit.   (a) Each of the Company and each Secured Counterparty shall   calculate the respective Secured Counterparty Exposure for all Energy Transactions between the   Company and such Secured Counterparty on each Valuation Date and shall promptly notify the   other party and the Agent (in the form attached hereto as Exhibit H-1 with respect to a Secured   Counterparty or in the form attached hereto as Exhibit H-2 with respect to the Company) of its   calculation by no later than the Initial Notification Time on such Valuation Date.  If there is a     

 

   17   difference between the calculations of the Company and the respective Secured Counterparty   with respect to such Secured Counterparty Exposure, the parties shall endeavor to agree on a   mutually acceptable valuation; provided, that, in the event that the Company and such Secured   Counterparty are unable to agree on the calculation of the Secured Counterparty Exposure by the   Second Notification Time on such Valuation Date, then for the purposes of determining the   Individual Facility Utilization the Secured Counterparty Exposure with respect to such Secured   Counterparty shall be deemed to be the Mid-Exposure.  The Company shall, and each Secured   Counterparty may, notify the Agent (with a copy to the other party) of the Secured Counterparty   Exposure calculated as provided in the previous sentence no later than the Second Notification   Time on such Valuation Date if applicable.  The Agent shall notify each Secured Counterparty   and the Company by the Final Notification Time on each Valuation Date of the respective   Adjusted Individual Facility Utilization for such Secured Counterparty, the Counterparty   Threshold applicable to such Secured Counterparty and, at any time at which the Adjusted   Aggregate Facility Utilization exceeds 70% of the Facility Limit as in effect at such time, both   the Adjusted Aggregate Facility Utilization and the total of all Termination Payments then due   and owing and that have been notified to the Agent pursuant to this Section 2.03(a); provided,   that,   (i) if on any Valuation Date neither the Company nor the   applicable Secured Counterparty notifies the Agent of the Secured Counterparty   Exposure for such Secured Counterparty in accordance with this Section 2.03(a),   then the Agent shall calculate the Adjusted Individual Facility Utilization for such   Secured Counterparty using the applicable Secured Counterparty Exposure, if   any, that was last reported prior to such date;   (ii) if on any Valuation Date either the Company or the   applicable Secured Counterparty fails to notify the Agent of the Secured   Counterparty Exposure for such Secured Counterparty in accordance with the first   sentence of this Section 2.03(a), then the Agent shall calculate the Adjusted   Individual Facility Utilization for such Secured Counterparty using only the   applicable Secured Counterparty Exposure, if any, that was reported by the party   that did notify the Agent in accordance with this Section 2.03(a);   (iii) if on any Valuation Date both the Company and the   applicable Secured Counterparty provide separate and different valuations for the   Secured Counterparty Exposure for such Secured Counterparty to the Agent and   such parties have not reconciled such valuations prior to the Second Notification   Time, then the Agent shall calculate the Adjusted Individual Facility Utilization   for such Secured Counterparty using the Mid-Exposure for such Secured   Counterparty Exposure; and   (iv) if at any time, the Agent does not provide notice to the   Company and a Secured Counterparty of the Adjusted Individual Facility   Utilization, then the Adjusted Individual Facility Utilization of that Secured   Counterparty shall be deemed to have remained unchanged since the prior notice   thereof from the Agent; and     

 

   18   provided, further, that any Secured Counterparty Exposure resulting from any Energy   Transaction entered into by the Company and a Secured Counterparty in breach of Section   6.05(c)(i) of this Agreement shall be valid as between the Company and the relevant Secured   Counterparty, subject to the limitations in the last paragraph of Section 6.05(c).  In connection   therewith, the parties hereto agree that the Agent shall be deemed to not have any knowledge of   such breach and shall use the Secured Counterparty Exposure reported to it pursuant to this   Section 2.03(a) for all purposes of this Agreement, including (unless and until the Agent receives   notice from a Secured Counterparty of a different Secured Counterparty Exposure, after receipt   of which the Agent shall use such different Secured Counterparty Exposure) Section 7.05.   (b) If any Secured Counterparty or the Company provides a notice to   the Agent in the form of Exhibit K or Exhibit L hereto, as applicable, then for each Valuation   Date after such Termination Valuation Date:   (i) such Secured Counterparty shall be considered a   “Terminated Secured Counterparty”;   (ii) such Secured Counterparty’s Adjusted Individual Facility   Utilization for each such Valuation Date shall be deemed to be the Adjusted   Individual Facility Utilization that was determined as of the Termination   Valuation Date in respect of such Secured Counterparty’s Secured Counterparty   ISDA Agreement; and   (iii) for each Valuation Date after such Termination Valuation   Date, with respect to each Secured Counterparty that was not a “Terminated   Secured Counterparty” on such Termination Valuation Date its Adjusted   Individual Facility Utilization for each such Valuation Date shall be deemed to be   the Adjusted Individual Facility Utilization as of such Valuation Date.   For purposes of determining the Adjusted Individual Facility Utilization for each Secured   Counterparty other than any Terminated Secured Counterparty, the Facility Limit shall be   deemed to be reduced by the aggregate amount of the Adjusted Individual Facility Utilization for   all Terminated Secured Counterparties.   (c) Without prejudice to any adjustments to the Facility Limit made   pursuant to Section 2.05 and/or 7.04, if the Aggregate Capacity changes during the Term, the   Facility Limit shall be no greater than the amount specified below opposite the Company’s then   current Aggregate Capacity:   Aggregate Capacity (in MWs) Facility Limit   12,000 or more $1,300,000,000   8,000 - 11,999 $1,000,000,000   5,000 - 7,999 $500,000,000   4,999 or less $0        

 

   19   The Company shall provide notice to the Agent and the Secured Parties of changes to the   Aggregate Capacity and any associated adjustment to the Facility Limit made pursuant to this   Section 2.03(c) in accordance with Section 5.01(h).   Section 2.04 Secured Counterparty ISDA Agreements.     (a) Each Secured Counterparty shall enter into a Secured Counterparty   ISDA Agreement (including Schedules and Annexes) with the Company in substantially the   form of Exhibit B, with such changes and modifications as may be agreed separately by each   Secured Counterparty and the Company (subject to the limitations set forth in clause (b) below).    All Energy Transactions between the Company and such Secured Counterparty under the   Facility shall be entered into under such Secured Counterparty ISDA Agreement.   (b) Modification of any of the following from the form set forth in   Exhibit B (either at the time a Secured Counterparty ISDA Agreement is entered into or   thereafter) shall require the consent of the Required Secured Counterparties:    (i) Definition of “Specified Entity,” with respect to the   Company;   (ii) Definition of “Close-Out Amount” for calculation of   payments on Early Termination (or modifications to either such term); and   (iii) Provisions regarding “Cross Default” and “Specified   Indebtedness.”   (c) Modification of any of the following definitions from Section 1.01   of this Agreement and the applicable definition contained in the form of Secured Counterparty   ISDA Agreement contained in Exhibit B shall, in each case, require the consent of the Company   and each  Secured Counterparty and, if the rights and duties of the Agent are affected thereby,   the Agent, and notice of any such modification shall be delivered promptly to the Agent:   “Adjusted Obligations,” “Aggregate Capacity,” “Credit Support Annex,”   “Initial Facility Limit,” “Adjusted Individual Facility Utilization,” “Adjusted Aggregate   Facility Utilization,” “Bilateral Collateral Entitlement,” “Credit Support Annex,” “CT   Decrease,” “CTD Facility Limit Excess,” “CTD Secured Counterparty,” “Threshold   Modification,” “Energy Transaction,” “Facility Limit,” “Final Notification Time,”   “Fourth Level Obligations,” “Initial Aggregate Capacity,” “Individual Facility   Utilization,” “Initial Notification Time,” “Local Business Day,” “Mid Exposure,”   “Relevant Valuation Date,” “Required Secured Counterparties,” “Second Notification   Time,” “Secured Counterparty Exposure,” “Termination Valuation Date,” “Third Level   Obligations,” “Valuation Date,” or “Valuation Time."   Section 2.05 Term of Facility.     (a) The initial term of the Facility shall commence on the Effective   Date and end on the fifth anniversary of the Effective Date (such term, the “Initial Term”).  On   each anniversary of the Effective Date (each such anniversary, an “Extension Date”), the term of     

 

   20   the Facility shall be extended automatically for one year (each such one year extension, an   “Extension Term”).  Any Secured Counterparty who desires not to participate in the Facility   beyond the Initial Term or any Extension Term shall so notify the Company and the Agent not   later than six months prior to the applicable Extension Date.  Upon the applicable Extension   Date, with respect to any Secured Counterparty that has so notified the Company and the Agent   that it desires not to participate in an extension pursuant to the preceding sentence, and provided   that (i) any Eligible Collateral required to be posted in accordance with the applicable Secured   Counterparty ISDA Agreement after giving effect to such expiration has been posted and (ii) the   Company has delivered a certificate to the Agent certifying to such non-extension and that such   Eligible Collateral has been posted, the Facility Threshold for such Secured Counterparty shall   be deemed to be zero, the Energy Transactions between the Company and such Secured   Counterparty shall no longer be subject to this Agreement, and, except as to the agreements and   obligations specified in Section 9.05, such Secured Counterparty shall no longer be a party to   this Agreement, and shall no longer be deemed to be a Secured Counterparty for purposes of the   Facility Documents, but shall continue to be entitled to the benefit of the Parent Guaranty in   favor of such Secured Counterparty with respect to unsecured amounts owing to the Secured   Counterparty under the Secured Counterparty ISDA Agreements; provided that, the Parent shall   be entitled to replace the Parent Guaranty issued to such Secured Counterparty in connection   herewith with a guaranty in substantially similar form, but revised to reduce the amount of the   guarantee cap specified in Section 2 thereof by the amount of such Secured Counterparty’s   secured Facility Threshold specified in Section 2 (it being understood that such guarantee cap   shall thereafter be equal to the unsecured Counterparty Threshold agreed upon by the Parent and   such Secured Counterparty), on terms to be reasonably agreed upon by Parent and such Secured   Counterparty.   (b) If the Company elects to permanently reduce the Facility   Threshold for any Secured Counterparty to zero pursuant to the Secured Counterparty ISDA   Agreement, then provided that (i) any Eligible Collateral required to be posted in accordance   with the Secured Counterparty ISDA Agreement after giving effect to such reduction in the   Facility Threshold and such release has been posted and (ii) the Company has delivered a   certificate to the Agent certifying as to such reduction in Facility Threshold to zero and that such   Eligible Collateral has been posted, the Facility Threshold for such Secured Counterparty shall   be reduced to zero, and, except as to the agreements and obligations specified in Section 9.05,   such Secured Counterparty shall no longer be a party to this Agreement, and shall no longer be   deemed to be a Secured Counterparty for purposes of the Facility Documents.   (c) If at any time there are no Energy Transactions outstanding under   any of the Secured Counterparty ISDA Agreements the Company may terminate the Facility by   written notice to the Agent and all Secured Counterparties upon 30 Business Days’ prior notice   and, except for those provisions specifically stated herein to survive termination, this Agreement   shall be of no further force and effect.   Section 2.06 Joinder of Additional Counterparties to Common Agreement.    A Person may become a Secured Counterparty by entering into a Common Agreement Joinder   with the Credit Parties and the Agent and by entering into a Secured Counterparty ISDA   Agreement which is consistent with the terms and provisions of the Facility Documents.  The     

 

   21   Parent shall deliver its Parent Guaranty to such Secured Counterparty concurrently with entering   into the Common Agreement Joinder with such Secured Counterparty.   Section 2.07 Conflicts Between Common Agreement and Secured   Counterparty ISDA Agreements.  In the event of any inconsistency or conflict between the   provisions of this Agreement and any Secured Counterparty ISDA Agreement, the provisions of   this Agreement shall prevail; provided, however, that notwithstanding anything herein to the   contrary, any additional covenants, obligations, duties, representations and warranties in the   Secured Counterparty ISDA Agreements shall be binding upon the parties thereto unless this   Agreement expressly prohibits or overrides such additional provisions.      ARTICLE III      EFFECTIVENESS; INDIVIDUAL ENERGY TRANSACTIONS   Section 3.01 Effectiveness.  This Agreement shall first become effective upon   the Effective Date.   Section 3.02 Individual Energy Transactions.  As of the date of entry into   each Energy Transaction (each, an “Energy Transaction Date”), the Credit Parties represent and   warrant that all of the representations and warranties contained in Article IV hereof shall be true   and correct on and as of such Energy Transaction Date, except to the extent they expressly relate   to an earlier time and except that the representations and warranties set forth in Section   4.02(d)(iii) shall be deemed only to relate to the matters referred to therein on and as of the   Effective Date.   ARTICLE IV      REPRESENTATIONS AND WARRANTIES   Section 4.01 Representations and Warranties of the Company.  The   Company represents and warrants to the Agent and each Secured Counterparty as of the   Effective Date and, except as described in Section 3.02, each Energy Transaction Date, that:   (a) Status.  The Company is a limited liability company duly   organized, validly existing and in good standing under the laws of the Commonwealth of   Pennsylvania and has the limited liability company authority to make and perform this   Agreement and each other Facility Document to which it is a party.   (b) Authority; No Conflict.  The execution, delivery and performance   by the Company of this Agreement and each other Facility Document to which it is a party have   been duly authorized by all necessary limited liability company action and do not (i) violate any   provision of law or regulation, or any decree, order, writ or judgment applicable to it, (ii) violate   any provision of its limited liability company agreement, or (iii) result in the breach of or     

 

   22   constitute a default under any indenture or other agreement or instrument to which the Company   is a party.   (c) Enforceability.  Each of this Agreement and each other Facility   Document to which the Company is a party constitutes the legal, valid and binding obligation of   the Company, enforceable against the Company in accordance with its terms except to the extent   limited by (i) bankruptcy, insolvency or reorganization laws or by other similar laws relating to   or affecting the enforceability of creditors’ rights generally and by general equitable principles   which may limit the right to obtain equitable remedies regardless of whether enforcement is   considered in a proceeding of law or equity or (ii) any applicable public policy on enforceability   of provisions relating to contribution and indemnification.   (d) Litigation.  There is no litigation, arbitration or administrative   proceeding pending or, to the knowledge of the Company, threatened which would reasonably be   expected to materially and adversely affect the ability of the Company to perform its obligations   under this Agreement or the other Facility Documents to which it is a party or which questions   the validity of this Agreement or the other Facility Documents to which it is a party.   (e) Governmental Approvals.  No authorization, consent or approval   from any Governmental Authority is required for the execution, delivery and performance by the   Company of this Agreement or the other Facility Documents to which it is a party, except such   authorizations, consents and approvals as have been obtained prior to the date hereof and are in   full force and effect.   (f) Investment Company Act.  The Company is not an “investment   company” within the meaning of the Investment Company Act of 1940.   (g) Tax Returns and Payments.  The Company has filed or caused to   be filed all Federal, state, local and foreign income tax returns required to have been filed by it   and has paid or caused to be paid all income taxes shown to be due on such returns except   income taxes that are being contested in good faith by appropriate proceedings and for which   appropriate reserves with respect thereto shall have been set aside in accordance with GAAP or   that would not reasonably be expected to have a Material Adverse Effect.   (h) Compliance with Laws.  To the knowledge of the Company, the   Company is in compliance with all applicable laws, regulations and orders of any Governmental   Authority, domestic or foreign, in respect of the conduct of its business and the ownership of its   property (including, without limitation, compliance with all applicable Environmental Laws and   the requirements of any permits issued under such Environmental Laws), except to the extent   (i) such compliance is being contested in good faith by appropriate proceedings or   (ii) noncompliance would not reasonably be expected to materially and adversely affect its   ability to perform any of its obligations under this Agreement or any other Facility Document to   which it is a party.   (i) No Default.  No Default or Event of Default has occurred and is   continuing.     

 

   23   Section 4.02 Representations and Warranties of the Parent.  The Parent   represents and warrants to the Agent and each Secured Counterparty as of the Effective Date   and, except as described in Section 3.02, each Energy Transaction Date, that:   (a) Status.  The Parent is a limited liability company duly organized,   validly existing and in good standing under the laws of the State of Delaware and has the limited   liability company authority to make and perform this Agreement and each other Facility   Document to which it is a party.   (b) Authority; No Conflict.  The execution, delivery and performance   by the Parent of this Agreement and each other Facility Document to which it is a party have   been duly authorized by all necessary limited liability company action and do not (i) violate any   provision of law or regulation, or any decree, order, writ or judgment applicable to it, (ii) violate   any provision of its limited liability company agreement, or (iii) result in the breach of or   constitute a default under any indenture or other agreement or instrument to which the Parent is a   party.   (c) Enforceability.  Each of this Agreement and each other Facility   Document to which the Parent is a party constitutes the legal, valid and binding obligation of the   Parent, enforceable against the Parent in accordance with its terms except to the extent limited by   (i) bankruptcy, insolvency or reorganization laws or by other similar laws relating to or affecting   the enforceability of creditors’ rights generally and by general equitable principles which may   limit the right to obtain equitable remedies regardless of whether enforcement is considered in a   proceeding of law or equity or (ii) any applicable public policy on enforceability of provisions   relating to contribution and indemnification.   (d) Financial Condition.   (i) Audited Financial Statements.  The consolidated balance   sheet of the Parent and its consolidated subsidiaries as of December 31, 2014 and   the related consolidated statements of income and cash flows for the fiscal year   then ended, reported on by Ernst & Young, LLP, copies of which have been   delivered to each of the Agent and the Secured Counterparties in the manner   contemplated by Section 5.02(a), fairly present, in conformity with GAAP, the   consolidated financial position of the Parent and its consolidated subsidiaries as of   such date and their consolidated results of operations and cash flows for such   fiscal year.   (ii) Interim Financial Statements.  The unaudited consolidated   balance sheet of the Parent and its consolidated subsidiaries as of June 30, 2015   and the related unaudited consolidated statements of income and cash flows for   the six months then ended fairly represent, in conformity with GAAP applied on a   basis consistent with the financial statements referred to in Section 4.02(d)(i), the   consolidated financial position of the Parent and its consolidated subsidiaries as of   such date and their consolidated results of operations and cash flows for such six-   month period (subject to normal year-end audit adjustments).     

 

   24   (iii) Material Adverse Change.  Since June 1, 2015 there has   been no change in the business, assets, financial condition or operations of the   Parent and its consolidated subsidiaries, considered as a whole, that would   reasonably be expected to materially and adversely affect the Parent’s ability to   perform any of its obligations under this Agreement or the other Facility   Documents to which it is a party.   (e) Litigation.  Except as disclosed in or contemplated by the Parent’s   most recent Annual Report on Form 10-K filed with the SEC, or in any subsequent Quarterly or   Current Report on Form 10-Q or 8-K filed with the SEC, or otherwise furnished in writing to the   Agent and each Secured Counterparty, no litigation, arbitration or administrative proceeding   against the Parent is pending or, to the Parent’s knowledge, threatened, which would reasonably   be expected to materially and adversely affect the ability of the Parent to perform any of its   obligations under this Agreement or the other Facility Documents.  There is no litigation,   arbitration or administrative proceeding pending or, to the knowledge of the Parent, threatened   which questions the validity of this Agreement or the other Facility Documents to which it is a   party.   (f) Compliance with ERISA.   (i) Schedule B sets forth each Plan as of June 1, 2015.  Each   Plan is in compliance in form and operation with its terms and with ERISA and   the Code (including without limitation the Code provisions compliance with   which is necessary for any intended favorable tax treatment) and all other   applicable laws and regulations, except where any failure to comply would not   reasonably be expected to have, either individually or in the aggregate, a Material   Adverse Effect.  Each Plan (and each related trust, if any) which is intended to be   qualified under Section 401(a) of the Code has received a favorable determination   letter from the IRS to the effect that it meets the requirements of Sections 401(a)   and 501(a) of the Code covering all applicable tax law changes or is comprised of   a master or prototype plan that has received a favorable opinion letter from the   IRS, and to the knowledge of the Parent, nothing has occurred since the date of   such determination that would reasonably be expected to result in revocation of   such determination (or, in the case of a Plan with no determination, to the   knowledge of the Parent, nothing has occurred that would reasonably be expected   to materially adversely affect the issuance of a favorable determination letter).    No ERISA Event has occurred or is reasonably expected to occur, other than as   would not, individually or in the aggregate, have a Material Adverse Effect.   (ii) None of the Parent or any of its Subsidiaries or any ERISA   Affiliate has incurred a complete or partial withdrawal from any Multiemployer   Plan, and, if each of the Parent, any of its Subsidiaries and each ERISA Affiliate   were to withdraw in a complete withdrawal as of the date this assurance is given   or deemed given, the aggregate withdrawal liability that would be incurred would   not reasonably be expected, either individually or in the aggregate, to result in a   Material Adverse Effect.     

 

   25   (iii) There are no actions, suits or claims pending against or   involving a Plan (other than routine claims for benefits) or, to the knowledge of   the Parent, which would reasonably be expected to be asserted successfully   against any Plan and, if so asserted successfully, would reasonably be expected   either individually or in the aggregate to have a Material Adverse Effect.   (iv) The Parent and any ERISA Affiliate have made all material   contributions to or under each Plan and Multiemployer Plan required by law   within the applicable time limits prescribed thereby, the terms of such Plan or   Multiemployer Plan, respectively, or any contract or agreement requiring   contributions to a Plan or Multiemployer Plan save where any failure to comply,   individually or in the aggregate, would not reasonably be expected to have a   Material Adverse Effect.   (g) Governmental Approvals.  No authorization, consent or approval   from any Governmental Authority is required for the execution, delivery and performance by the   Parent of this Agreement or the other Facility Documents to which it is a party, except such   authorizations, consents and approvals as have been obtained and are in full force and effect.   (h) Investment Company Act.  The Parent is not an “investment   company” within the meaning of the Investment Company Act of 1940.   (i) Tax Returns and Payments.  The Parent has filed or caused to be   filed all Federal, state, local and foreign income tax returns required to have been filed by it and   has paid or caused to be paid all income taxes shown to be due on such returns except income   taxes that are being contested in good faith by appropriate proceedings and for which the Parent   shall have been set aside with respect thereto on its books appropriate reserves in accordance   with GAAP or that would not reasonably be expected to have a Material Adverse Effect.   (j) Compliance with Laws.  To the knowledge of the Parent, the   Parent is in compliance with all applicable laws, regulations and orders of any Governmental   Authority, domestic or foreign, in respect of the conduct of its business and the ownership of its   property (including, without limitation, compliance with all applicable ERISA and   Environmental Laws and the requirements of any permits issued under such Environmental   Laws), except to the extent (i) such compliance is being contested in good faith by appropriate   proceedings or (ii) non compliance would not reasonably be expected to materially and adversely   affect the Parent’s ability to perform any of its obligations under this Agreement or any other   Facility Document to which it is a party.   (k) Environmental Matters.  Except (y) as disclosed in or contemplated   by the Parent’s most recent Annual Report on Form 10-K filed with the SEC or in any   subsequent Quarterly or Current Report on Form 10-Q or 8-K filed with the SEC, or otherwise   furnished to the Agent and the Secured Counterparties in writing, or (z) except as would not   reasonably be expected to have, either individually or in the aggregate, a Material Adverse   Effect, none of the Parent or any of the Subsidiary Guarantors:  (a) has failed to comply with any   Environmental Law or to obtain, maintain, renew and comply with any permit, license,   registration or other approval required under Environmental Law; (b) has received any     

 

   26   Environmental Claim that would reasonably be expected to result in the termination, revocation   or modification of any permit, license, registration, emissions credits or other approval required   under Environmental Law; or (c) possesses knowledge (i) that the Parent or any of its Subsidiary   Guarantors has become subject to any Environmental Claim encumbering any Mortgaged   Property, or (ii) of facts, conditions or circumstances that, would reasonably be expected to result   in an Environmental Claim against the Parent or any Subsidiary Guarantor.  This Section 4.02(k)   sets forth the sole representations and warranties of the Parent and its Subsidiary Guarantors with   respect to environmental and occupational health and safety matters and Hazardous Materials   (l) Rights to Property. The Parent and the other Credit Parties have   good and valid fee, leasehold, easement or other right, title or interest in or to all the properties   necessary to the conduct of their business as conducted on the Effective Date and as presently   proposed to be conducted, except to the extent the failure to have such rights or interests would   not have a Material Adverse Effect.   (m) Anti-Terrorism Laws; OFAC; FCPA.  Neither the Parent nor the   Company, nor any of their respective officers, directors, employees or agents, is a Sanctioned   Person.  Neither the Parent nor the Company is in violation of (a) the Sanctions, (b) the USA   PATRIOT ACT (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (as amended   from time to time, the “Act”) or (c) the Foreign Corrupt Practices Act (Pub. L. 95-213 (signed   into law December 19, 1977)) (the “FCPA”), as amended from time to time.  Neither the Parent   nor the Company is a blocked person described in Section 1 of the Anti-Terrorism Order.   Neither the Parent nor the Company (i) is a Person whose property or   interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order   13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons   Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)   engages in any dealings or transactions prohibited by Section 2 of such executive order, or to its   knowledge is otherwise associated with any such Person in any manner that violates in any   material respect Section 2 of such executive order or (iii) is a Person on the list of “Specially   Designated Nationals and Blocked Persons” or subject to the limitations or prohibitions under   any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or   executive order.   (n) No Default.  No Default or Event of Default has occurred and is   continuing.   Section 4.03 Intentionally Omitted   Section 4.04 Representations and Warranties of Secured Counterparties.    Each Secured Counterparty represents and warrants to the Company and the Agent as of the   Effective Date and each Energy Transaction Date, as follows:   (a) Status.  It is duly organized and validly existing under the laws of   the jurisdiction of its organization or incorporation and, if applicable under such laws, it is in   good standing under such laws.     

 

   27   (b) Powers.  It has the power to execute this Agreement and any other   documentation relating to this Agreement to which it is a party, to deliver this Agreement and   any other documentation relating to this Agreement that it is required by this Agreement to   deliver and to perform its obligations under this Agreement and any such other documentation   and has taken all necessary action to authorize such execution, delivery and performance.   (c) No Violation or Conflict.  Such execution, delivery and   performance do not violate or conflict with any law applicable to it, any provision of its   constitutional documents, any order or judgment of any court or other agency of government   applicable to it or any of its assets or any contractual restriction binding on or affecting it or any   of its assets.   (d) Consents.  All governmental and other consents that are required to   have been obtained by it with respect to this Agreement and each other Facility Document to   which it is a party have been obtained and are in full force and effect and all conditions of any   such consents have been complied with.   (e) Obligations Binding.  Its obligations under this Agreement and   each other Facility Document to which it is a party constitute its legal, valid and binding   obligations, enforceable in accordance with their respective terms except to the extent limited by   (i) applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting   creditors’ rights generally and subject, as to enforceability, to equitable principles of general   application (regardless of whether enforcement is sought in a proceeding in equity or at law) and   (ii) any applicable public policy on enforceability of provisions relating to contribution and   indemnification.   (f) Litigation.  There is not pending or, to its knowledge, threatened   against it or any of its Affiliates any action, suit, or proceeding at law or in equity or before any   court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the   legality, validity or enforceability against it of this Agreement or any other Facility Document to   which it is a party or its ability to perform its obligations under this Agreement and any other   document relating to this Agreement to which it is a party.   Section 4.05 Representations and Warranties of Agent.  The Agent   represents and warrants to the Company and each Secured Counterparty as of the Effective Date   as follows:   (a) Status.  It is duly organized and validly existing under the laws of   the jurisdiction of its organization or incorporation and, if applicable under such laws, it is in   good standing under such laws.   (b) Authority.  It has the power to execute this Agreement and any   other Facility Document to which it is a party, to deliver this Agreement, each such other Facility   Document and any other documentation relating to this Agreement that it is required by this   Agreement or any such other Facility Document to deliver and to perform its obligations under   this Agreement or any such other Facility Document and any such other documentation and has   taken all necessary action to authorize such execution, delivery and performance.     

 

   28   (c) No Violation or Conflict.  Such execution, delivery and   performance do not violate or conflict with any law applicable to it, any provision of its   constitutional documents, any order or judgment of any court or other agency of government   applicable to it or any of its assets or any contractual restriction binding on or affecting it or any   of its assets.   (d) Consents.  All governmental and other consents that are required to   have been obtained by it with respect to this Agreement or any documentation relating to this   Agreement to which it is a party have been obtained and are in full force and effect and all   conditions of any such consents have been complied with.   (e) Obligations Binding.  Its obligations under this Agreement and any   documentation relating to this Agreement to which it is a party constitute its legal, valid and   binding obligations, enforceable in accordance with their respective terms (subject to applicable   bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights   generally and subject, as to enforceability, to equitable principles of general application   (regardless of whether enforcement is sought in a proceeding in equity or at law)).   (f) Litigation.  There is not pending or, to its knowledge, threatened   against it or any of its Affiliates any action, suit, or proceeding at law or in equity or before any   court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the   legality, validity or enforceability against it of this Agreement or any documents relating to this   Agreement to which it is a party or its ability to perform its obligations under this Agreement and   any other document relating to this Agreement to which it is a party.   ARTICLE V      COVENANTS   Section 5.01 Covenants of the Company.  The Company covenants and agrees   as follows:   (a) Conduct of Business and Maintenance of Existence.  The   Company will (i) continue to engage in businesses of the same general type as now conducted by   the Company and businesses related thereto or arising out of such businesses, except to the   extent that the failure to maintain any existing business would not reasonably be expected to   have a Material Adverse Effect and (ii) except as otherwise permitted in Section 5.01(d),   preserve, renew and keep in full force and effect, its limited liability company existence and its    rights, privileges and franchises necessary or material to the normal conduct of business, except,   in each case, where the failure to do so would not reasonably be expected to have a Material   Adverse Effect.   (b) Compliance with Laws.  The Company will comply with all   applicable laws, regulations and orders of any Governmental Authority, domestic or foreign, in   respect of the conduct of its business and the ownership of its property (including, without   limitation, compliance with all applicable Environmental Laws and the requirements of any   permits issued under such Environmental Laws) except to the extent (i) such compliance is being     

 

   29   contested in good faith by appropriate proceedings or (ii) noncompliance would not reasonably   be expected to have a Material Adverse Effect.   (c) Books and Records.  The Company (i) will keep proper books of   record and account in conformity with GAAP and (ii) will permit representatives of the Agent   and each of the Secured Counterparties to examine and make copies from any of its books and   records and to discuss its affairs, finances and accounts with its officers, any employees and   independent public accountants, all to the extent as would be made available to and discussed   with the Company's or the Parent's lenders and at such reasonable times and as often as may   reasonably be desired; provided, that, the rights created in this Section 5.01(c) to “discuss” and   copy shall not extend to any matters which the Company reasonably determines, in good faith, to   be confidential, unless the Agent and each such Secured Counterparty agree in writing to keep   such matters confidential; and provided, further, that nothing in this Section 5.01(c) shall require   the Company to disclose to any Secured Counterparty the terms of any of the Energy   Transactions, including any Secured Counterparty Exposure or to disclose matters which would   competitively disadvantage the Credit Parties in respect of the Secured Counterparties.   (d) Merger or Consolidation.  The Company will not merge or   consolidate with any other Person if the Company is not the surviving or resulting Person, unless   (i) immediately after giving effect thereto no event shall occur and be continuing which   constitutes a Default or Event of Default, and (ii) such other Person is (a)(1) the Parent or a   successor of the Parent permitted hereunder or (2) any other Person which is a Wholly-Owned   Subsidiary of the Parent or a successor of the Parent permitted hereunder, and (b) the surviving   or resulting Person, as the case may be, assumes and agrees in writing to pay and perform all of   the obligations of the Company under this Agreement, the other Facility Documents to which it   is a party and the Secured Counterparty ISDA Agreements.   (e) Taxes.  The Company shall file or cause to be filed all Federal,   state, local and foreign income tax returns required to be filed by it and shall pay or caused to be   paid all income taxes shown to be due on such returns except income taxes that are being   contested in good faith by appropriate proceedings and for which there has been set aside on its   books appropriate reserves with respect thereto in accordance with GAAP or that would not   reasonably be expected to have a Material Adverse Effect.   (f) Notice of Default.  The Company shall promptly give the Agent   and the Secured Counterparties notice of any Default, Event of Default or Cross Termination   Event of which it has knowledge.   (g) Fees and Expenses of Agent.  The Credit Parties shall, jointly and   severally, pay (i) the fees of the Agent set forth in the letter dated November 1, 2010 among the   Credit Parties and the Agent (the “Fee Letter”), and (ii) the reasonable costs and out-of-pocket   expenses of the Agent (including the reasonable fees and disbursements of counsel) in   connection with the preparation, execution, delivery, administration, modification or amendment   of the Facility Documents or any Default or alleged Default thereunder and (iii) all reasonable   out-of-pocket expenses incurred by the Agent, including (without duplication) the reasonable   fees and disbursements of one outside counsel (and, to the extent reasonably necessary or   appropriate, one local counsel in each relevant jurisdiction), in connection with any restructuring,     

 

   30   workout, collection, bankruptcy, insolvency and other enforcement proceedings in connection   with the enforcement and protection of its rights.   (h) Aggregate Capacity Notices.  The Company shall promptly give   the Agent and the Secured Parties notice of any change that exceeds five percent (5%) of the   Initial Aggregate Capacity or the then current Aggregate Capacity.  In addition to any   notification made pursuant to the preceding sentence, within thirty (30) days of the end of each   calendar quarter, the Company shall also provide notice to the Agent and each Secured Party of   the Aggregate Capacity as of the last Business Day of the preceding calendar quarter.   Section 5.02 Covenants of the Parent.  The Parent covenants and agrees as   follows:   (a) Reporting.  The Parent will deliver or cause to be delivered to the   Agent and each of the Secured Counterparties (it being understood that the posting of the   information required in clauses (i), (ii) and (iv) of this Section 5.02(a) on the Parent’s website   (http://www.talenenergy.com) shall be deemed to be effective delivery to the Agent and the   Secured Counterparties):   (i) Annual Financial Statements.  Promptly when available   and in any event within ten (10) days after the date such information is required to   be delivered to the SEC, a consolidated balance sheet of the Parent and its   consolidated subsidiaries as of the end of its most recent fiscal year and the   related consolidated statements of income and cash flows for such fiscal year,   accompanied by an opinion thereon by independent public accountants of   recognized national standing, which opinion shall state that such consolidated   financial statements present fairly the consolidated financial position of the Parent   and its consolidated subsidiaries as of the date of such financial statements and   the results of their operations for the period covered by such financial statements   in conformity with GAAP applied on a consistent basis.   (ii) Quarterly Financial Statements.  Promptly when available   and in any event within ten (10) days after the date such information is required to   be delivered to the SEC, a consolidated balance sheet of the Parent and its   consolidated subsidiaries as of the end of its most recent fiscal quarter and the   related consolidated statements of income and cash flows for such fiscal quarter,    all certified (subject to normal year-end audit adjustments) as to fairness of   presentation, GAAP and consistency by any vice president, the treasurer or the   controller of the Parent.   (iii) Officer’s Certificate.  Promptly after the delivery of each   set of financial statements referred to in subsections (i) and (ii) above and within   the time periods referred to in such subsections, a certificate of the chief   accounting officer or controller of the Parent stating whether, to his knowledge,   there exists on the date of such certificate any Default or Event of Default and, if   any Default or Event of Default then exists, setting forth the details thereof and   the action proposed to be taken with respect thereto.     

 

   31   (iv) Securities Laws Filings.  Promptly when available and in   any event within ten (10) days after the date such information is required to be   delivered to the SEC, a copy of any Annual Report on Form 10-K to the SEC and   a copy of any Quarterly Report on Form 10-Q to the SEC, and promptly upon the   filing thereof, any other filings with the SEC.   (b) Conduct of Business and Maintenance of Existence.  The Parent   will (i) continue to engage in businesses of the same general type as now conducted by the   Parent and businesses related thereto or arising out of such businesses, except to the extent that   the failure to maintain any existing business would not reasonably be expected to have a Material   Adverse Effect and (ii) except as otherwise permitted in Section 5.02(e), preserve, renew and   keep in full force and effect its limited liability company existence and its rights, privileges and   franchises necessary or material to the normal conduct of business, except, in each case, where   the failure to do so would not reasonably be expected to have a Material Adverse Effect.   (c) Compliance with Laws.  The Parent will comply with all   applicable laws, regulations and orders of any Governmental Authority, domestic or foreign, in   respect of the conduct of its business and the ownership of its property (including, without   limitation, compliance with all applicable ERISA and Environmental Laws and the requirements   of any permits issued under such Environmental Laws) except to the extent (i) such compliance   is being contested in good faith by appropriate proceedings or (ii) noncompliance would not   reasonably be expected to have a Material Adverse Effect.   (d) Books and Records.  The Parent (i) will keep proper books of   record and account in conformity with GAAP and (ii) will permit representatives of the Agent   and each of the Secured Counterparties to examine and make copies from any of its books and   records and to discuss its affairs, finances and accounts with its officers, any employees and   independent public accountants, all to the extent as would be made available to and discussed   with the Parent's lenders and at such reasonable times and as often as may reasonably be desired;   provided, that, the rights created in this Section 5.02(d) to “discuss” and copy shall not extend to   any matters which the Parent reasonably determines, in good faith, to be confidential, unless the   Agent and each such Secured Counterparty agree in writing to keep such matters confidential;   and provided, further, that nothing in this Section 5.02(d) shall require the Parent to disclose to   any Secured Counterparty the terms of any of the Energy Transactions, including any Secured   Counterparty Exposure or to disclose matters which would competitively disadvantage the Credit   Parties in respect of the Secured Counterparties.   (e) Merger or Consolidation; Maintenance of Ownership of the   Company.  The Parent will not merge with or into or consolidate with or into any other Person,   unless (i) immediately after giving effect thereto, no event shall occur and be continuing which   constitutes a Default or Event of Default, (ii) the surviving or resulting Person, as the case may   be, assumes and agrees in writing to pay and perform all of the obligations of the Parent under   this Agreement, the other Facility Documents to which the Parent is a party, and   (iii) substantially all of the consolidated assets and consolidated revenues of the surviving or   resulting Person, as the case may be, are anticipated to come from utility or energy businesses.    The Parent will maintain direct or indirect ownership of 100% of the Voting Stock of the   Company.     

 

   32   (f) Taxes.  The Parent shall file or cause to be filed all Federal, state,   local and foreign income tax returns required to be filed by it and shall pay or caused to be paid   all income taxes shown to be due on such returns except income taxes that are being contested in   good faith by appropriate proceedings and for which the Parent has set aside on its books   appropriate reserves with respect thereto in accordance with GAAP or that would not reasonably   be expected to have a Material Adverse Effect.   (g) Notice of Default.  The Parent shall promptly give the Agent and   the Secured Counterparties notice of any Default or Event of Default of which it has knowledge.   (h) Maintenance of Property; Insurance.  The Parent will cause each of   the Collateral Parties to (i) keep all tangible property necessary to the business of such Collateral   Parties in satisfactory working order and condition, ordinary wear and tear excepted and subject   to the occurrence of casualty and condemnation events, except if the failure to do so would not   reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and   (ii) maintain with financially sound and reputable insurance companies (provided, however,   there shall be no breach of this Section 5.02(h) if any such insurer becomes financially unsound   and the applicable Collateral Party obtains insurance coverage from a different financially sound   and reputable insurer) insurance on all such property and against all such risks as is consistent   and in accordance with industry practice for companies engaged in similar businesses as the   Parent and the Collateral Parties (after giving effect to any self-insurance reasonable and   customary for Persons engaged in similar businesses as the Parent and the Collateral Parties) as   reasonably determined by the Parent.  Such insurance, except to the extent any such insurance is   not generally available in the marketplace from commercial insurers, shall include physical   damage insurance on all material real and personal property (whether now owned or hereafter   acquired) on an all risk basis and consistent with the past practices of the Parent.   Section 5.03 Intentionally Omitted   Section 5.04 Indemnification.   (a) Indemnity in Respect of Facility Documents.  Each Credit Party   jointly and severally shall indemnify the Agent and each Secured Counterparty, their respective   Affiliates and the respective directors, officers, trustees, agents and employees of the foregoing   (each, an “Indemnitee”) and hold each Indemnitee harmless from and against any and all   liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs and expenses   or disbursements of any kind whatsoever (including, the reasonable fees and disbursements of   counsel), which may at any time (including, at any time following the payment of the   Obligations) be imposed on, incurred by or asserted against such Indemnitee relating to or   arising out of the Facility Documents; provided, that no Indemnitee shall have the right to be   indemnified hereunder for such Indemnitee’s own gross negligence or willful misconduct as   determined by a court of competent jurisdiction in a final, non-appealable judgment or order.   (b) Indemnity in Respect of Environmental Claims.  Each Credit Party   jointly and severally agrees to indemnify each Indemnitee and hold each Indemnitee harmless   from and against any and all liabilities, obligations, losses, damages, penalties, actions,   judgments, suits, costs and expenses or disbursements of any kind whatsoever (including,     

 

   33   reasonable expenses of investigation by engineers, environmental consultants and similar   technical personnel and the reasonable fees and disbursements of counsel) which may at any   time (including, at any time following the payment of the Obligations) be imposed on, incurred   by or asserted against such Indemnitee in respect of or in connection with any and all   Environmental Claims.  Without limiting the generality of the foregoing, each Credit Party   hereby waives all rights of contribution or any other rights of recovery with respect to liabilities,   obligations, losses, damages, penalties, actions, judgments, suits, costs and expenses and   disbursements in respect of or in connection with Environmental Claims that it might have by   statute or otherwise against any Indemnitee.  Anything in the foregoing to the contrary   notwithstanding, the Credit Parties shall not be required to indemnify the Indemnitees for the   acts and omissions of the Agent or any other Indemnitee or the Collateral Trustee in respect of   the Collateral after the Collateral Trustee or any other Person shall have succeeded to the control   of the Collateral and it shall have ceased to be in the possession or otherwise under the control of   any of the Credit Parties.   (c) Notice, Assumption of Defense, Etc.  Upon receipt of notice of the   commencement of any action against an Indemnitee, such Indemnitee shall, with reasonable   promptness, if a claim in respect thereof is to be made against a Credit Party under its agreement   contained in this Section 5.04, notify such Credit Party in writing of the commencement thereof;   but the omission so to notify a Credit Party shall not relieve it from any liability which it may   have to the Indemnitee otherwise than under its agreement contained in this Section 5.04(c).  In   the case of any such notice to a Credit Party, such Credit Party shall be entitled (i) to participate   at its own expense in the defense and (ii) except with respect to actions against the Agent, its   Affiliates and their respective directors, officers, trustees, agents and employees, if it so elects, to   assume the defense, of any such action, but, if it elects to assume the defense, such defense shall   be conducted by counsel chosen by it and satisfactory to the Indemnitee and to any other Credit   Party that is a defendant in the suit.  In the event that any Credit Party elects to assume the   defense of any such action and retain such counsel in accordance with the preceding sentence,   the Indemnitee shall bear the fees and expenses of any additional counsel retained by it.  No   Credit Party shall be liable in the event of any settlement of any such action effected without its   consent.  Each Indemnitee agrees promptly to notify each such Credit Party of the   commencement of any litigation or proceedings against it arising out of, in connection with, or as   a result of the Facility Documents or the transactions contemplated thereby.     (d) Waiver of Damages.  Except, in the case of the Company and each   Secured Counterparty, to the extent that such agreement and waiver limits a party’s rights under   Section 6(e) of the ISDA Master Agreement that is part of its Secured Counterparty ISDA   Agreement, to the fullest extent permitted by applicable law, each party agrees that it will not   assert and hereby waives any claim against any other party on any theory of liability for special,   indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out   of, in connection with, or as a result of the Facility Documents or the transactions contemplated   thereby.  No Indemnitee shall be liable for any damages arising from the use by unintended   recipients of any information or other materials distributed by it through telecommunications,   electronic or other information transmission systems in connection with the Facility Documents   or the transactions contemplated thereby; provided, that nothing in this Section 5.04(d) shall   relieve any Secured Counterparty from its obligations under Sections 8.09 or 9.12 or the Agent   from its obligations under Section 9.12.     

 

   34   ARTICLE VI      EVENTS OF DEFAULT; CROSS TERMINATION REMEDIES   Section 6.01 Events of Default.  The occurrence and continuance of any of the   following shall constitute an event of default (“Event of Default”) hereunder:   (a) Event of Default under Secured Counterparty ISDA Agreements.    An “Event of Default” (as defined in any Secured Counterparty ISDA Agreement) in respect of   the Company shall have occurred and be continuing under any Secured Counterparty ISDA   Agreement provided, that, the waiver or cure of such Event of Default under the Secured   Counterparty ISDA Agreement shall constitute a waiver and cure of the corresponding Event of   Default hereunder, except that if any Secured Counterparty shall have given notice of early   termination of its Energy Transactions, then with respect to such Secured Counterparty, such   Event of Default can only be waived by such Secured Counterparty; or;   (b) Critical Covenants.     (i) A Credit Party shall fail to observe or perform any of its   covenants or agreements set forth in any of the following Sections of this   Agreement: Section 5.01(d) or Section 5.02(e); or   (ii) A Credit Party shall fail to observe or perform any of its   covenants or agreements set forth in any of the following Sections of this   Agreement: Section 5.01(f) or Section 5.02(g) for 30 days after such failure (in   the case of failure to give prompt notice of a Default), or 10 days (in the case of   failure to give prompt notice of an Event of Default); or   (c) Other Covenants.  Any Credit Party shall fail to observe or perform   any covenant or agreement (other than those described in (a) or (b) above) made by it in this   Agreement or any other Facility Document to which it is a party within 60 days after written   notice thereof shall be given to such Credit Party by the Agent or any Secured Counterparty;   provided, however, that if such failure cannot be remedied within such 60-day period, then the   period within which to remedy such failure shall be extended up to an additional 60 days, so long   as the Credit Party diligently pursues such remedy and such failure is reasonably capable of   being remedied within such additional 60 day period and the continuation of such failure during   the period of such extension would not be reasonably expected to have a Material Adverse   Effect; or   (d) Representations and Warranties.  Any representation, warranty or   certification made by any Credit Party in this Agreement or any other Facility Document or in   any certificate or other document delivered pursuant hereto or thereto shall prove to have been   incorrect in any material respect when made or deemed made and continues to be material and   unremedied for a period of 60 days after receipt by the Credit Party of written notice thereof;   provided, however, that if such condition cannot be remedied within such 60-day period, then the   period within which to remedy such condition shall be extended up to an additional 60 days, so   long as the Credit Party diligently pursues such remedy and such condition is reasonably capable     

 

   35   of being remedied within such additional 60 day period, and the continuation of such condition   during the period of such extension would not be reasonably expected to have a Material   Adverse Effect; or   (e) ERISA.   (i) One or more ERISA Events shall have occurred; or   (ii) there is or arises any potential withdrawal liability under   Section 4201 of ERISA, if the Credit Parties or the ERISA Affiliates were to   withdraw completely from any and all Multiemployer Plans; and   such event or events would reasonably be expected to result individually or in the   aggregate in the imposition of a lien or the granting of a security interest on the   assets of any Credit Party or any ERISA Affiliate and such lien or security   interest, individually or in the aggregate, has had or would be reasonably expected   to have, a Material Adverse Effect;   (f) Judgments.  One or more judgments for the payment of money in   an aggregate amount in excess of the Threshold Amount (excluding therefrom any amount   covered by insurance) shall be rendered against the Parent or any Subsidiary Guarantor that is a   Significant Subsidiary or any group of Subsidiary Guarantors that, when taken together, would   constitute a Significant Subsidiary or any combination thereof and the same shall remain   undischarged for a period of at least 60 consecutive days during which execution shall not be   effectively stayed, or any action shall be legally taken by a judgment creditor to levy upon assets   or properties of the Parent or any Subsidiary Guarantor that is a Significant Subsidiary or any   group of Subsidiary Guarantors that, when taken together, would constitute a Significant   Subsidiary to enforce any such judgment; provided that this Section 6.01(f) shall not apply to any   Non-Recourse Debt of the Parent and the Subsidiary Guarantors (except to the extent that the   Parent or any Subsidiary Guarantor that is a Significant Subsidiary or any group of Subsidiary   Guarantors that, when taken together, would constitute a Significant Subsidiary that are not   parties to such Non-Recourse Debt is then directly or indirectly liable, including pursuant to any   contingent obligation, for any such Non-Recourse Debt that is Indebtedness for borrowed money   thereunder and such liability, individually or in the aggregate, exceeds the Threshold Amount.   (g) Impairment of Security Interests.  (i)  Any guarantee by a   Subsidiary Guarantor under the Collateral Agreement shall be held by a final decision issued in   any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full   force and effect or any Subsidiary Guarantor shall deny or disaffirm in writing its or their   obligations under its or their guarantee(s) under the Collateral Agreement, except as permitted by   Section 5.1 of the Intercreditor Agreement or (ii) any material breach by the Collateral Parties of   any representation or warranty or covenant, condition or agreement in the Collateral Security   Documents, the repudiation by any of the Collateral Parties of any of its material obligations   under any of the Collateral Security Documents or the unenforceability of any of the Collateral   Security Documents against the Collateral Parties for any reason with respect to any material   portion of the Collateral; or     

 

   36   (h) Invalidity of Parent Guaranty.  Any Parent Guaranty shall be   invalid or cease to be in full force and effect in any material respect except in accordance with its   terms, or the Parent disaffirms any Parent Guaranty or asserts such Parent Guaranty is invalid.   Section 6.02 Cross Termination Events.     (a) The occurrence and continuance of any of the following   termination events under any Secured Counterparty ISDA Agreement shall constitute a cross   termination event (“Cross Termination Event”) hereunder:   (i) Credit Event upon Merger under Secured Counterparty   ISDA Agreements.  Any “Credit Event upon Merger” (as defined in any Secured   Counterparty ISDA Agreement) where the Company is the sole Affected Party   shall occur and be continuing under any Secured Counterparty ISDA Agreement.   (ii) Illegality affecting Energy Transactions in General.  An   “Illegality” (as defined in any Secured Counterparty ISDA Agreement) as to any   type or types of Energy Transaction that affects the Secured Counterparties   generally (and not a particular Secured Counterparty due to its particular   circumstances) shall occur and be continuing under any Secured Counterparty   ISDA Agreement.    (b) Termination.  If a Cross Termination Event shall have occurred   and be continuing, each Secured Counterparty shall be entitled to terminate all outstanding   Energy Transactions.  Each Secured Counterparty so terminating all Energy Transactions shall   deliver written notice of such termination to the Agent promptly after such termination and if all   Obligations to such Secured Counterparty have been paid in full, such notice shall set forth that   all Obligations have been in paid full and the Facility Threshold for such Secured Counterparty   shall be reduced to zero.  Upon any such termination of all Energy Transactions and delivery of   such written notice from the Secured Counterparty to the Agent of such termination and payment   in full of all Obligations to such Secured Counterparty, such Secured Counterparty shall no   longer be a party to this Agreement and shall no longer be deemed to be a “Secured   Counterparty” for purposes of the Facility Documents except as to the agreements and   obligations specified in Section 9.05.     Section 6.03 Individual Remedies.  Subject to Article VII, if an Event of   Default shall have occurred and is continuing, each Secured Counterparty shall be entitled to   enforce individually remedies available to it under its Parent Guaranty, its Secured Counterparty   ISDA Agreements and any security or other document relating to Eligible Collateral posted to   that Secured Counterparty.   Section 6.04 Remedies of Agent for Benefit of Secured Counterparties.  If an   Event of Default shall have occurred and be continuing, the Agent shall be entitled to, and, upon   the instruction of the Required Secured Counterparties, shall, take action to enforce rights to   which it may be entitled in accordance with the terms of the Collateral Agreement and   Intercreditor Agreement as instructed by the Required Secured Counterparties.     

 

   37   Section 6.05 Default Notices; Trading Limitations.   (a) At any time any Secured Counterparty becomes aware of the   existence of any Default or Event of Default with respect to any Credit Party, such Secured   Counterparty may, but shall not be required to, notify the Agent (with a copy of such notice to   the Credit Parties) of such Default or Event of Default and provide reasonable details thereof.   (b) If the Agent (i)  receives notice in the Form of Exhibit I-1 of an   Event of Default under (and as defined in) any Secured Counterparty ISDA Agreement from a   Credit Party pursuant to Section 5.01(f) or 5.02(g) of this Agreement or (ii) receives notice in the   Form of Exhibit I-2 of an Event of Default under (and as defined in) any Secured Counterparty   ISDA Agreement from any Secured Counterparty pursuant to clause (a) above, the Agent shall   promptly (but in any event no later than 10:00 a.m. on the Business Day following the date of   delivery of any such notice under clause (i) or (ii)) provide a notice (a “Trading Limitation   Notice”) to each Secured Counterparty and the Company in the form of Exhibit I-3 with respect   to clause (i) or Exhibit I-4 with respect to clause (ii) hereto.  Such Trading Limitation Notice   shall remain in effect until the Agent provides notice in the form of Exhibit J-1 hereto to each   Secured Counterparty and the Company that it has received a notice in the form of Exhibit J-2 or   Exhibit J-3, as applicable, hereto from the Person that originally delivered the notice of Event of   Default pursuant to (i) or (ii) above, as applicable, to the effect that circumstances giving rise   thereto have been cured or otherwise resolved by the relevant parties and specifying that it is a   notice pursuant to this last sentence of Section 6.05(b) of this Agreement.   (c) The Company agrees that, subject to Section 6.05(e), promptly   upon its receipt of any Trading Limitation Notice (but in any event from and after the Business   Day following the issuance of any Trading Limitation Notice) and during the time such Trading   Limitation Notice is outstanding, it will not:   (i) enter into any Energy Transactions (including by way of   novating prior transactions to a Secured Counterparty ISDA Agreement or   otherwise);   (ii) terminate, novate or agree to terminate or novate any prior   Energy Transaction that would have the effect of increasing any Secured   Counterparty’s Secured Counterparty Exposure (provided that this clause (ii) shall   not affect the Company’s or any Secured Counterparty’s right to terminate for an   “Event of Default” or “Termination Event” pursuant to the terms of the relevant   Secured Counterparty ISDA Agreement); or   (iii) increase or agree to increase the Facility Threshold or   Counterparty Threshold in any Secured Counterparty ISDA Agreement.   Notwithstanding the foregoing, any transaction entered into by the Company and a Secured   Counterparty in breach of Section 6.05(c)(i) shall be valid as between the Company and the   relevant Secured Counterparty; and the sole remedy for any transaction undertaken in breach of   Section 6.05(c) shall be the exclusion of the amount, if any, that would be payable to the Secured   Counterparty by the Company pursuant to Section 6(e)(ii)(2)(B) of such Secured Counterparty’s     

 

   38   Secured Counterparty ISDA Agreement upon termination of such transaction from the   Obligations owed to such Secured Counterparty for purposes of calculating the amounts due to   the Secured Counterparty under the Facility Documents and distributing the proceeds of the   Collateral in respect thereof.   (d) Each Secured Counterparty and the Company shall promptly   provide notice to the Agent, in the form of Exhibit K-1 with respect to the Company or Exhibit   K-2 with respect to a Secured Counterparty, after such Secured Counterparty has designated an   Early Termination Date (a “Notice of Early Termination Date”) or in the form of Exhibit L-1   with respect to the Company or Exhibit L-2 with respect to a Secured Counterparty after an Early   Termination Date has occurred, with respect to any Energy Transactions between such Secured   Counterparty and the Company as a result of an “Event of Default” of the Company or a   “Termination Event” where the Company is the sole “Affected Party” (as such terms are defined   in the applicable Secured Counterparty ISDA Agreement). Upon the receipt of any such notice,   the Agent will provide a notice to the other Secured Counterparties, in the form of Exhibit M   hereto.   (e) Nothing in this Section 6.05 or in this Agreement shall be deemed   to prohibit or preclude the Company, following the issuance of any Trading Limitation Notice,   from (i) permanently reducing the Facility Threshold for any Secured Counterparty (other than   the Terminated Secured Counterparty) to zero in accordance with Section 2.05(b) of this   Agreement, or reducing the Facility Limit to zero in accordance with Section 7.04(b) of this   Agreement; or (ii) making any Termination Payments in satisfaction of its obligation under a   Secured Counterparty ISDA Agreement with any Secured Counterparty (and, upon such   payment in full, such Secured Counterparty shall not be entitled to participate in the application   of proceeds pursuant to Section 7.05).   ARTICLE VII      COLLATERAL; INTERCREDITOR MATTERS   Section 7.01 Intercreditor Agreement.  Each Secured Counterparty authorizes   and directs the Agent to enter into an Accession Agreement to the Intercreditor Agreement,   substantially in the form of Exhibit E hereto, whereby it will become a Secured Debt   Representative under the Intercreditor Agreement for the benefit of the Secured Counterparties in   order to permit the Obligations hereunder to be secured by the Collateral.  Each Secured   Counterparty hereby agrees that it will be bound by and will take no actions contrary to the   provisions of the Intercreditor Agreement.   Section 7.02 No Impairment of Rights under Parent Guaranty or to   Individual Collateral.  Nothing in this Agreement (including Section 6.03) shall be construed to   prevent or impair the rights of any Secured Counterparty to enforce its rights under its respective   Parent Guaranty or Secured Counterparty ISDA Agreement or its rights with respect to any   Eligible Collateral posted to it under its Secured Counterparty ISDA Agreement regardless of   whether an Event of Default has occurred under this Agreement.     

 

   39   Section 7.03 Intentionally Omitted   Section 7.04 Discharge.   (a) Upon termination of the Facility pursuant to Section 2.05(c), the   Agent shall, at the request of the Company, promptly confirm the Discharge of Specific Debt   with respect to the Obligations hereunder, as contemplated in the Intercreditor Agreement.   (b) The Company shall have the right at any time, upon five (5)   Business Days’ notice to the Agent and each Secured Counterparty, and subject to the Secured   Counterparty ISDA Agreements, to reduce the Facility Limit (the Facility Limit as so reduced,   the “Adjusted Facility Limit”), provided that any Eligible Collateral required to be posted in   accordance with the Secured Counterparty ISDA Agreements after giving effect to such   reduction in the Facility Limit has already been posted.  If the Facility Limit shall be reduced to   zero, the Company may request that the Agent (for its own benefit and for the benefit of the   Secured Counterparties) confirm the Discharge of Specific Debt with respect to the Obligations   hereunder, as contemplated in the Intercreditor Agreement provided that (i) any Eligible   Collateral required to be posted in accordance with the Secured Counterparty ISDA Agreements   after giving effect to such reduction in the Facility Limit has been posted and (ii) each applicable   Secured Counterparty has delivered a certificate to the Agent that such Eligible Collateral has   been posted in the form of Exhibit O hereto.  The Agent shall promptly execute and deliver all   documents necessary to effect and evidence such a Discharge of Specific Debt with respect to   the Obligations hereunder.  Upon any such request of the Company, and provided that any   Eligible Collateral required to be posted hereunder and pursuant to the applicable Secured   Counterparty ISDA Agreement has been so posted, such Secured Counterparty shall promptly   deliver such certificate to the Agent.   Section 7.05 Proceeds.   (a) Proceeds of Collateral shall be applied as provided in the   Intercreditor Agreement.    (b) If, after an Event of Default and exercise of remedies, any Secured   Counterparty has received proceeds of Collateral in payment of any Fourth-Level Obligations   then due it while any Secured Counterparty has not received payment of all Third-Level   Obligations then due it, then the Secured Counterparty receiving such payment with respect to   Fourth-Level Obligations shall purchase (for cash at face value) participations in the Third-Level   Obligations of each such other Secured Counterparty, or make such other adjustments as shall be   equitable, so that the benefit of all such payments from the proceeds of Collateral on account of   Third-Level Obligations shall be shared by the Secured Counterparties ratably in accordance   with amounts owing them prior to any payment to any Secured Counterparty with respect to   Fourth-Level Obligations; provided, that, (i) if any such participations are purchased and all or   any portion of the payment giving rise thereto is recovered, such participations shall be rescinded   and the purchase price restored to the extent of such recovery, without interest, and (ii) the   provisions of this Section shall not be construed to apply to any payment made by a Credit Party   pursuant to and in accordance with the express terms of this Agreement.  Each Credit Party   consents to the foregoing and agrees, to the extent it may effectively do so under applicable law,     

 

   40   that any Secured Counterparty acquiring a participation pursuant to the foregoing arrangements   may exercise against each Credit Party rights of setoff and counterclaim with respect to such   participation as fully as if such Secured Counterparty were a direct creditor of each Credit Party   in the amount of such participation.   Section 7.06 Reinstatement.  Obligations owning to the Secured Counterparties   and to the Agent hereunder and under the Facility Documents shall be reinstated if and to the   extent that for any reason any payment by or on behalf of a Credit Party in respect of such   Obligations is rescinded or must otherwise be returned by any holder of any of the Obligations,   whether as a result of any proceedings in bankruptcy or reorganization or otherwise.   ARTICLE VIII      THE AGENT   Section 8.01 Appointment of Agent.   (a) Each Secured Counterparty hereby appoints Wilmington Trust,   National Association as Agent hereunder and as a Secured Debt Representative under the   Intercreditor Agreement, and each of the Secured Counterparties hereby authorizes Wilmington   Trust, National Association to act as Agent in accordance with the terms of this Agreement and   such other applicable Facility Documents.  The Agent hereby agrees to act in its capacity as such   upon the express conditions contained herein and in the other Facility Documents, as applicable.    In performing its functions and duties under the Facility Documents, the Agent shall act solely as   an agent of the Secured Counterparties and does not assume and shall not be deemed to have   assumed any obligation towards or any relationship of agency or trust with or for any Credit   Party.  Each Secured Counterparty irrevocably authorizes the Agent to take such action on its   behalf, and to exercise such powers, rights and remedies hereunder and under the other Facility   Documents as are specifically delegated or granted to the Agent by the terms hereof and thereof,   together with such powers, rights and remedies as are reasonably incidental thereto.  The Agent   shall have only those duties and responsibilities that are expressly specified herein and in the   other Facility Documents.  The Agent may exercise such powers, rights and remedies and   perform such duties by or through its agents or employees.  The Agent shall not have, by reason   hereof or of any of the other Facility Documents, a fiduciary relationship with any Secured   Counterparty, and nothing herein or in any of the other Facility Documents, express or implied,   is intended to or shall be so construed as to impose upon the Agent any obligations in respect   hereof or in respect of any of the other Facility Documents except as expressly set forth herein or   in the other Facility Documents.   (b) Except as expressly set forth in this Article VIII, the provisions of   this Article VIII are solely for the benefit of the Agent and the Secured Counterparties and no   Credit Party shall have any rights as a third-party beneficiary hereof.   Section 8.02 Delegation of Duties.  The Agent may execute any of its duties   under this Agreement and the other Facility Documents (including for purposes of exercising any   rights or remedies under the Collateral Security Documents and Intercreditor Agreement) by or     

 

   41   through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and   other consultants or experts of its choice concerning all matters pertaining to such duties.  The   Agent shall not be responsible for the negligence or misconduct of any agent, employee or   attorney-in-fact selected by it with reasonable care.   Section 8.03 Agent may act for Individual Secured Counterparties.  The   Agent may serve as custodian for any Secured Counterparty with respect to any Eligible   Collateral.   Section 8.04 Exculpatory Provisions.     (a) Neither the Agent nor any of its officers, directors, employees,   agents, attorneys-in-fact or Affiliates shall be (i) liable for any action lawfully taken or omitted to   be taken by any of them under or in connection with this Agreement or any other Facility   Document (except for such Person’s own gross negligence or willful misconduct) or   (ii) responsible in any manner to any of the Secured Counterparties or any Credit Party for any   recitals, statements, representations and warranties made by any Credit Party or any Secured   Counterparty or any officer thereof contained in this Agreement or any other Facility Document   or in any certificate, report, statement or other document referred to or provided for in, or   received by the Agent under or in connection with, this Agreement or any other Facility   Document (including amounts given or certified in connection with an application of proceeds   pursuant to Section 7.05) or for the value, validity, effectiveness, genuineness, enforceability or   sufficiency of this Agreement or any of the Facility Documents, or any failure of any Credit   Party to perform its obligations hereunder or thereunder or the satisfaction of any condition set   forth herein, other than to confirm receipt of items expressly required to be delivered to the   Agent.  The Agent shall not be under any obligation to any Secured Counterparty to ascertain or   to inquire as to the observance or performance of any agreements contained in, or conditions of,   this Agreement or any other Facility Document, or to inspect the properties, books, or records of   any Credit Party.  The Agent shall not be under any obligation to any party to ascertain or inquire   as to the observance or performance of any agreements contained in, or conditions of, this   Agreement or any of the other Facility Documents, or to inspect the properties, books or records   of any Secured Counterparty.  Except as expressly set forth herein and in the other Facility   Documents, the Agent shall not have any duty to disclose, and shall not be liable for the failure   to disclose, any information relating to any Credit Party or any of its Affiliates that is   communicated to or obtained by the Agent or any of its Affiliates in any capacity.  The Agent   shall not be responsible for, nor shall it have any duty to ascertain or inquire into (i) any   statement, warranty or representation made in or in connection with this Agreement or any other   Facility Document, (ii) the contents of any certificate, report or other document delivered   hereunder or thereunder or in connection herewith or therewith, (iii) the validity, enforceability,   effectiveness or genuineness of this Agreement, any other Facility Document or any other   agreement, instrument or document, or (iv) the satisfaction of any condition set forth herein or   therein, other than to confirm receipt of items expressly required to be delivered to the Agent.   (b) The Agent may refrain from any act or the taking of any action   (including the failure to take an action) in connection with this Agreement or any of the other   Facility Documents, or from the exercise of any power, discretion or authority vested in it   hereunder or thereunder (i) if such action would, in the reasonable opinion of the Agent, be     

 

   42   contrary to applicable law or the terms of this Agreement or such Facility Document or (ii) if   such action is not expressly provided for in this Agreement or under any other Facility   Document, it shall not have received a direction of the Required Secured Counterparties (or such   other number or percentage of the Secured Counterparties as shall be required under the   applicable Facility Document), to take such action.  Upon receipt of any such direction the Agent   shall be entitled to act or (where so instructed) refrain from acting, or to exercise such power,   discretion or authority, in accordance with such directions.  Notwithstanding anything herein, the   Agent (i) may, at any time and for any purpose, request each Secured Counterparty to certify the   amount of such Secured Counterparty’s Voting Interest as of the relevant time and whether such   Secured Counterparty has (or had) any Energy Transactions outstanding at the relevant time, and   until such certifications are received the Agent may refrain from any act or the taking of any   action (including the failure to take an action) that requires a determination under this Agreement   or any Facility Document of the amount of such Secured Counterparty’s Voting Interest or a   determination of whether such Secured Counterparty has any Energy Transactions outstanding,   and (ii) shall be fully protected and absolved and shall have no liability arising from the taking or   not taking of any action in accordance with such certifications or the determination of, and   direction given by, the Required Secured Counterparties (or such other number or percentage of   the Secured Counterparties as shall be required under the applicable Facility Document).    Without limiting the generality of the foregoing, (i) the Agent shall be entitled to rely, and shall   be fully protected in relying upon any communication, instrument or document believed by it to   be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall   be entitled to rely and shall be fully protected in relying upon opinions and judgments of   attorneys (who may be attorneys for a Credit Party), accountants, experts and other professional   advisors selected by it; (ii) no Secured Counterparty shall have any right of action whatsoever   against the Agent as a result of the Agent acting or (where so instructed) refraining from acting   hereunder or under any Facility Document in accordance with a direction of the Required   Secured Counterparties (or such other number or percentage of the Secured Counterparties as   shall be required under the applicable Facility Document); and (iii) the Agent shall be fully   protected in performing (and is hereby authorized by the Secured Counterparties to perform) the   ministerial and administrative acts contemplated by or expressly provided in any Facility   Document.  Unless the Agent shall have been notified by a party hereto that, or have actual   knowledge that, a Default or Event of Default has occurred and is continuing, whenever in the   administration of this Agreement or other Facility Documents the Agent shall deem it necessary   or desirable that a factual or legal matter be proved or established in connection with the Agent   taking, suffering or omitting to take any action hereunder or under the other Facility Documents,   such matter (unless other evidence in respect thereof is herein specifically prescribed) may, in   the absence of bad faith or actual knowledge to the contrary by the Agent, be deemed by the   Agent to be conclusively proved or established by a certificate of a Responsible Officer of a   Credit Party or, if appropriate, from a legal opinion from counsel (who may be counsel to any   Credit Party).   (c) Beyond the exercise of reasonable care in the custody thereof and   as otherwise specifically set forth herein, the Agent shall not have any duty as to any of the   Collateral in its possession or control or in the possession or control of any agent or a bailee of   the Agent or any income thereon or as to the preservation of rights against prior parties, and the   Agent shall not be responsible for filing any financing or continuation statements or recording     

 

   43   any documents or instruments in any public office at any time or times or otherwise perfecting or   maintaining the perfection of any security interest in the Collateral.   Section 8.05 Notice of Default.  The Agent shall not be deemed to have   knowledge or notice of the occurrence of any Default or Event of Default unless the Agent has   received notice from a Secured Counterparty or a Credit Party referring to this Agreement,   describing such Default or Event of Default and stating that such notice is a “notice of default.”    In the event that the Agent receives such a notice, it shall give notice thereof to the Secured   Counterparties.   Section 8.06 Non-Reliance on Agent and Secured Counterparties.  Each   Secured Counterparty expressly acknowledges that neither the Agent nor any of its officers,   directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or   warranties to it and that no act by the Agent hereinafter taken shall be deemed to constitute any   representation or warranty by the Agent to such Person, except as expressly set forth in this   Agreement or any other Facility Document.  Each Secured Counterparty represents to the Agent   that it has, independently and without reliance upon the Agent or any other Secured   Counterparty, and based on such documents and information as it has deemed appropriate, made   its own appraisal of and investigation into the business, operations, property, financial and other   condition and creditworthiness of the Credit Parties and made its own decision to enter into this   Agreement. Each Secured Counterparty also represents that it will, independently and without   reliance upon the Agent or any other Secured Counterparty, and based on such documents and   information as it shall deem appropriate at the time, continue to make its own credit analysis,   appraisals and decisions regarding entering into Energy Transactions and in taking or not taking   action under this Agreement and the other Facility Documents, and to make such investigation as   it deems necessary to inform itself as to the business, operations, property, financial and other   condition and creditworthiness of the Credit Parties. The Agent shall have no duty or   responsibility to provide any Secured Counterparty with any credit or other information   concerning the business, assets, operations, properties, financial condition, prospects or   creditworthiness of any Credit Party that may come into the possession of the Agent any of its   respective officers, directors, employees, agents, attorneys-in-fact or Affiliates, except to the   extent expressly provided in this Agreement or any other Facility Document.    Section 8.07 Agent in Individual Capacity.  The Agent and its Affiliates may   make loans to, accept deposits from and generally engage in any kind of business with the Credit   Parties and the Secured Counterparties and their Affiliates as though the Agent were not an   Agent hereunder and under the other Facility Documents.   Section 8.08 Successor Agent.     (a) The Agent may at any time give notice of its resignation to the   Secured Counterparties and the Company.  Upon receipt of any such notice of resignation, the   Required Secured Counterparties shall have the right, subject to the consent of the Parent (not to   be unreasonably withheld or delayed) so long as no Default or Event of Default has occurred and   is continuing, to appoint a successor, which shall be a bank with an office in the United States, or   an Affiliate of any such bank with an office in the United States.  If no such successor shall have   been so appointed by the Required Secured Counterparties and shall have accepted such     

 

   44   appointment within 60 days after the retiring Agent gives notice of its resignation, then the   retiring Agent may petition any court of competent jurisdiction for the appointment of a   successor Agent, or any Secured Counterparty may, on behalf of itself and all others similarly   situated, petition any such court for the appointment of a successor Agent.  Such court may   thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor   Agent.    (b) If, at any time, the Agent shall become incapable of acting as such   hereunder, or shall be adjudged as bankrupt or insolvent, or a receiver or liquidator of the Agent   or of its property shall be appointed, or any public officer shall take charge or control of the   Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,   then, in any such case, the Required Secured Counterparties may remove the Agent and appoint   a successor Agent by written instrument, in duplicate, one copy of which instrument shall be   delivered to the Agent so removed and one copy to the successor Agent, or any Secured   Counterparty may on behalf of itself and all others similarly situated, petition any court of   competent jurisdiction for the removal of the Agent and the appointment of a successor Agent.    Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove   the Agent and appoint a successor Agent.   (c) Upon 60 days notice to the Parent (or such shorter notice as shall   be acceptable to the Parent), the Required Secured Counterparties may, subject to the consent of   the Parent (not to be unreasonably withheld or delayed), remove the Agent and appoint a   successor Agent by delivering notice of such removal to the Parent, the Agent and to the   successor Agent so appointed and to the Credit Parties.   (d) Any resignation or removal of the Agent and any appointment of a   successor Agent pursuant to any of the provisions of this Section 8.08 shall become effective   upon acceptance of appointment by the successor Agent as provided in Section 8.08(e) and   Section 8.08(f).    (e) Any successor Agent appointed pursuant to this Section 8.08 shall   be a bank with an office in the United States and shall not be a Credit Party, a Secured   Counterparty or an Affiliate of a Credit Party or a Secured Counterparty. Any such successor   shall execute and deliver to the Secured Counterparties, the Credit Parties and to its predecessor   Agent an instrument accepting such appointment hereunder, and thereupon the resignation or   removal of the predecessor Agent shall become effective and such successor Agent, without any   further act, deed or conveyance, shall become vested with all rights, powers, duties and   obligations of its predecessor hereunder and under the other Facility Documents, with like effect   as if originally named as Agent hereunder; provided, however, that upon the written request of   the Required Secured Counterparties, the Credit Parties or the successor Agent, upon payment of   its charges then unpaid, the Agent ceasing to act shall pay over to the successor Agent all   moneys at the time held by it hereunder or under the other Facility Documents and shall execute   and deliver an instrument transferring to such successor Agent all such rights, powers, duties and   obligations.  Upon request of any such successor Agent, the Credit Parties shall execute any and   all instruments in writing for more fully and certainly vesting in and confirming to such   successor Agent all such rights and powers.      

 

   45   (f) Upon the acceptance of a successor’s appointment as the Agent   hereunder, and upon the execution and filing or recording of such assignments, financing   statements, or amendments thereto, and such other instruments or notices, as may be necessary   or desirable, or as the Required Secured Counterparties may request, in order to confirm the   appointment as Agent hereunder or as the successor Secured Debt Representative with respect to   the Obligations hereunder, such successor shall succeed to and become vested with all of the   rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall   be discharged from all of its duties and obligations hereunder or under the Fee Letter and the   other Facility Documents (if not already discharged therefrom as provided above in this Section).   The fees payable by the Company (following the effectiveness of such appointment) to such   Agent shall be the same as those payable to its predecessor unless otherwise agreed between the   Company and such successor. After the retiring Agent’s resignation or removal hereunder and   under the other Facility Documents, the provisions of this Article VIII shall continue in effect for   the benefit of such retiring Agent and its sub-agents, officers, directors, employees, attorneys-in-   fact and Affiliates in respect of any actions taken or omitted to be taken by any of them while the   retiring Agent was acting as Agent.   Section 8.09 Indemnification.  Each Secured Counterparty agrees to indemnify   the Agent, in its capacity as such (to the extent not reimbursed by the Credit Parties and without   limiting the obligation of the Credit Parties to do so), ratably in accordance with its Voting   Interest in effect on the date of the event in respect of which indemnification is sought (or if the   combined Voting Interests of all Secured Counterparties at such date shall be zero, then ratably   in accordance with each Secured Counterparty’s most recent Facility Threshold in excess of   zero), from and against any and all liabilities, obligations, losses, damages, penalties, actions,   judgments, suits, costs, reasonable expenses or disbursements of any kind whatsoever that may at   any time occur, be imposed on, incurred by or asserted against the Agent in its capacity as such,   in any way relating to or arising out of this Agreement or any of the other Facility Documents or   the transactions contemplated hereby or thereby or any action taken or omitted to be taken by the   Agent under or in connection with any of the foregoing; provided that no Secured Counterparty   shall be liable to the Agent for the payment of any portion of such liabilities, obligations, losses,   damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the   Agent’s gross negligence or willful misconduct; provided, further, that no action taken in   accordance with the directions of the Required Secured Counterparties (or such other number or   percentage of the Secured Counterparties as shall be required under the applicable Facility   Document) shall be deemed to constitute gross negligence or willful misconduct for purposes of   this Section 8.09.  In the case of any investigation, litigation or proceeding giving rise to any   liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, reasonable   expenses or disbursements of any kind whatsoever that may at any time occur, this Section 8.09   shall apply whether any such investigation, litigation or proceeding is brought by any Secured   Counterparty or any other Person.  Without limiting the foregoing, each Secured Counterparty   shall reimburse the Agent upon demand, ratably in accordance with its Voting Interest in effect   on the date of the event in respect of which indemnification is sought (or if the combined Voting   Interests of all Secured Counterparties at such date shall be zero, then ratably in accordance with   each Secured Counterparty’s most recent Facility Threshold in excess of zero) for any reasonable   and documented costs or out-of-pocket expenses (including reasonable attorneys’ fees) incurred   by the Agent in connection with the preparation, execution, delivery, administration,   modification, amendment or enforcement (whether through negotiations, legal proceedings or     

 

   46   otherwise) of, or legal advice rendered in respect of rights or responsibilities under, this   Agreement or any other Facility Document, to the extent that the Agent is not reimbursed for   such expenses by or on behalf of the Credit Parties, and without limiting the obligation of any of   the Credit Parties to do so. If any indemnity furnished to the Agent for any purpose shall, in the   reasonable opinion of the Agent, be insufficient or become impaired, the Agent may call for   additional indemnity and cease, or not commence, to do the acts indemnified against by such   indemnity until such additional indemnity is furnished.  In no event shall this Section 8.09   require any Secured Counterparty to indemnify the Agent against any liability, obligation, loss,   damage, penalty, action, judgment, suit, cost, expense or disbursement in excess of such Secured   Counterparty’s ratable portion thereof, based on its Voting Interest in effect on the date of the   event in respect of which indemnification is sought (or if the combined Voting Interests of all   Secured Counterparties at such date shall be zero, then ratably in accordance with each Secured   Counterparty’s most recent Facility Threshold in excess of zero); and provided further that   nothing in this Section 8.09 shall be deemed to require any Secured Counterparty to indemnify   the Agent against any liability, obligation, loss, damage, penalty, action, judgment, suit, cost,   expense or disbursement of any kind whatsoever resulting from the Agent’s gross negligence or   willful misconduct; provided, further, that no action taken in accordance with the directions of   the Required Secured Counterparties (or such other number or percentage of the Secured   Counterparties as shall be required under the applicable Facility Document) shall be deemed to   constitute gross negligence or willful misconduct for purposes of this Section 8.09.  The   agreements in this Section 8.09 shall survive the termination of this Agreement.   ARTICLE IX      MISCELLANEOUS   Section 9.01 Notices.  Except as otherwise expressly provided herein, all   notices and other communications hereunder shall be in writing (for purposes hereof, the term   “writing” shall include information in electronic format such as electronic mail and posting on an   internet web page when notice of such posting is given as otherwise provided in this   Section 9.01) or by telephone subsequently confirmed in writing.  Any notice shall have been   duly given and shall be effective if delivered by hand delivery or sent via electronic mail,   telecopy, recognized overnight courier service or certified or registered mail, return receipt   requested, or posting on an internet web page when notice of such posting is given as otherwise   provided in this Section 9.01, and shall be presumed to be received by a party hereto (i) on the   date of delivery if delivered by hand, electronic mail or telecopy, (ii) on the Business Day   following the day on which the same has been delivered prepaid (or on an invoice basis) to a   reputable national overnight air courier service, (iii) on the Business Day following the later of   the date on which the information is posted on an internet web page and notice of such posting is   given as provided in (i) and the date of effectiveness of the notice of such posting pursuant to this   Section 9.01, and (iv) on the third Business Day following the day on which the same is sent by   certified or registered mail, postage prepaid, in each case to the respective parties at the address   or telecopy numbers, in the case of the Credit Parties and the Agent, set forth below, and, in the   case of the Secured Counterparties, as set forth on signature pages hereto, or at such other   address as such party may specify by written notice to the other parties hereto:     

 

   47   if to the Company:   Talen Energy Marketing, LLC   Floor 2   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Legal Services   Facsimile: (610) 774-2755      with a copy to Parent:   if to the Parent:   Talen Energy Supply, LLC   Floor 7   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Treasurer   Facsimile: 610-774-4511      if to the Agent:   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Section 9.02 No Waiver; Cumulative Remedies.  No failure by the Agent or   any Secured Counterparty to exercise, no course of dealing with respect to, and no delay in   exercising any right, power or privilege hereunder or under any other Facility Document or any   Secured Counterparty ISDA Agreement shall operate as a waiver thereof nor shall any single or   partial exercise thereof preclude any other or further exercise thereof or the exercise of any other   right, power or privilege.  The rights and remedies provided herein and in the other Facility   Documents and the Secured Counterparty ISDA Agreements shall be cumulative and not   exclusive of any rights or remedies provided by law.     

 

   48   Section 9.03 Amendments and Waivers.     (a) Subject to Section 9.03(b), any provision of this Agreement or the   other Facility Documents may be amended, modified or waived if such amendment, modification   or waiver is in writing and is signed by the Credit Parties and each Secured Counterparty and, if   the rights or duties of the Agent are affected thereby, the Agent, or as may otherwise be   permitted in accordance with the terms of any such Facility Document.    Any amendment, modification or waiver provided pursuant to this Section 9.03(a) shall be   binding upon the relevant Credit Party, the Agent and all Secured Counterparties; provided that   in the case of any waiver of any Default or Event of Default, such waiver shall be limited to the   circumstances and the extent expressly waived and shall not affect any subsequent Default or   Event of Default or impair any right consequent thereon.   (b) The Credit Parties and the Agent may (but shall have no obligation   to) amend or supplement this Agreement or the other Facility Documents without the consent of   any Secured Counterparty:   (i) to cure any ambiguity, defect or inconsistency;   (ii) to make any change that would provide any additional   rights or benefits to the Secured Counterparties;   (iii) to make, complete or confirm any grant of collateral or   guaranty permitted or required by this Agreement or any of the other Facility   Documents or any release of any collateral or guaranty that is otherwise permitted   under the terms of this Agreement and permitted (if addressed therein or   otherwise, not prohibited) by the terms of the other Facility Documents;   (iv) to correct any typographical errors or other similar mistakes   that do not modify the intended rights and obligations of the parties hereto;   (v) to provide for additional obligations of the Credit Parties or   Liens securing such obligations to the extent permitted by the terms of this   Agreement and permitted by (if addressed therein, or, otherwise, not prohibited)   the terms of the other applicable Facility Documents; and   (vi) to provide for evidence or effectuate other actions that are   permitted by this Agreement and not otherwise prohibited by the other Facility   Documents.   (c) Upon a written request by the Company or any Secured   Counterparty to the Agent, with respect to the Company in the form of Exhibit N-1 hereto or,   with respect to a Secured Counterparty in the form of Exhibit N-2 hereto (in either case, a “Vote   Request”), the Agent shall promptly (but in no event later than five Business Days after receipt   of such Vote Request) issue a written notice (the “Vote Notice”) in the form of Exhibit N-3   hereto to the Secured Counterparties attaching such Vote Request; provided that, upon receipt of   any Vote Request from a Secured Counterparty relating to the exercise of any rights under     

 

   49   Section 6.04 or Article VII, the Agent shall issue such Vote Notice promptly and, in any event,   no later than the first Business Day after receiving such Vote Request; and provided further that,   if for any reason the Agent does not issue a Vote Notice in accordance with this Section 9.03(c)   in a timely manner, then any Secured Counterparty may arrange a vote of the Secured   Counterparties in compliance with the procedures set forth in Section 9.03, and upon the Agent   receiving satisfactory evidence thereof, the result of the vote shall be binding as if arranged by   the Agent.  Each Vote Request shall contain (i) a reasonably detailed description of any proposed   act or matter requiring the vote, consent, notice, direction, certification or other act of the   Secured Counterparties (or such other number or percentage of the Secured Counterparties as   shall be required under the applicable Facility Document), (ii) a record date and time (the   “Record Date”) for the determination of the Secured Counterparties (or such other number or   percentage of the Secured Counterparties as shall be required under the applicable Facility   Document) in connection with such proposed act or matter, which Record Date shall be at least   one Business Day following issuance of the related Vote Notice, (iii) the effective date, if   applicable, of such act or matter and (iv) the deadline (the “Due Date”) for the delivery of the   applicable solicited vote, consent, notice, direction, certification or other act or information,   which Due Date (x) shall be at least two Business Days after the Record Date and (y) for votes of   the Secured Counterparties specified in such Vote Request related to the exercise of any rights   under Section 6.04 or Article VII shall be 12:00 p.m. on the second Business Day following   issuance of the related Vote Notice.   (d) The Secured Counterparties shall deliver votes, consents, notices,   directions, certifications or other acts or information solicited in a Vote Request to the Agent (i)   in any manner in which notices are permitted to be delivered pursuant to Section 9.01 and (ii)   prior to the applicable Due Date.  Only the Secured Counterparties listed in the Agent’s records   on the applicable Record Date shall be deemed to be Secured Counterparties for the purposes of   determining whether the Secured Counterparties (or such other number or percentage of the   Secured Counterparties as shall be required under the applicable Facility Document), have   authorized, directed, certified or agreed or consented to the act or matter specified in any Vote   Request, provided that, notwithstanding anything in this Agreement to the contrary (including in   the definition of “Required Secured Counterparties”), the Voting Interest of any such Secured   Counterparty who does not deliver a vote, consent, notice, direction, certification or other act or   information solicited in a Vote Request in accordance with such Vote Request and this   Section 9.03 shall be deemed zero for all purposes of such determination.  Any such act or matter   given or determined in accordance with this Section 9.03 shall be effective whether or not the   Secured Counterparties which authorized, directed, certified or agreed or consented to such act   remain Secured Counterparties after the applicable Record Date and whether or not the   obligations held by such Secured Counterparties remain outstanding after the applicable Record   Date.   Section 9.04 Successors and Assigns.  The provisions of this Agreement shall   be binding upon and inure to the benefit of the parties hereto and their respective successors and   assigns, except that no Credit Party may assign its rights or obligations hereunder except to the   extent any such assignment results from the consummation of a merger or consolidation   permitted pursuant to Section 5.01(d), 5.02(e) or 5.03(d).     

 

   50   Section 9.05 Survival.  All representations, warranties, covenants and   agreements made herein and in the certificates or other instruments delivered in connection with   or pursuant to this Agreement and the other Facility Documents shall be considered to have been   relied upon by the parties hereto and shall survive the execution and delivery of this Agreement   and the other Facility Documents.  The agreements and obligations of the Credit Parties under   Section 5.01(g) and Section 5.04 and Section 9.04, the agreements and obligations of the Secured   Counterparties under Section 8.09, and the agreements and obligations of all the parties under   Articles VII and IX shall survive termination of this Agreement and the other Facility   Documents.   Section 9.06 Counterparts.  This Agreement may be signed in any number of   counterparts, each of which shall be an original, with the same effect as if the signatures thereto   were upon the same instrument.  A facsimile or Portable Document Format (PDF) copy of a   signature shall have the same force and effect as an original signature.     Section 9.07 Severability.  If any term, provision, covenant, or condition of this   Agreement, or the application thereof to any party or circumstance, shall be held to be invalid or   unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants,   and conditions hereof shall continue in full force and effect as if this Agreement had been   executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so   modified continues to express, without material change, the original intentions of the parties as to   the subject matter of this Agreement and the deletion of such portion of this Agreement will not   substantially impair the respective benefits or expectations of the parties to this Agreement and   will preserve the economic value thereof.     Section 9.08 Integration.  This Agreement, the other Facility Documents and   the Fee Letter and the Secured Counterparty ISDA Agreements constitute the entire agreement   and understanding among the parties hereto and supersede any and all prior agreements and   understandings, oral or written, relating to the subject matter hereof and thereof.     Section 9.09 GOVERNING LAW.  THIS AGREEMENT WILL BE   GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE   STATE OF NEW YORK.   Section 9.10 Submission to Jurisdiction; Waivers.  Each Credit Party hereby   submits to the nonexclusive jurisdiction of the United States District Court for the Southern   District of New York and of any New York State court sitting in New York City for purposes of   all legal proceedings arising out of or relating to this Agreement or the transactions contemplated   hereby.  Each Credit Party irrevocably waives, to the fullest extent permitted by law, any   objection which it may now or hereafter have to the laying of the venue of any such proceeding   brought in such court and any claim that any such proceeding brought in any such court has been   brought in an inconvenient forum.   Section 9.11 WAIVER OF JURY TRIAL.  EACH PARTY WAIVES, TO   THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY   HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING     

 

   51   ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS   CONTEMPLATED HEREBY.   Section 9.12 Confidentiality.  The Agent and each Secured Counterparty   agrees to hold all Information obtained pursuant to the requirements of this Agreement, the other   Facility Documents, the Fee Letter and the Secured Counterparty ISDA Agreement in   accordance with its customary procedure for handling confidential information of this nature   and, to the extent applicable, in accordance with safe and sound banking practices; provided that   nothing herein shall prevent any party from disclosing such information (i) to any Credit Party or   the Agent, (ii) to any other Person if reasonably incidental to the administration of the Facility,   (iii) upon the order of any court or administrative agency, including any subpoena issued by or   under the authority of any such court or administrative agency, (iv) to the extent requested by, or   required to be disclosed to, any rating agency or regulatory agency or similar authority   (including any self-regulatory authority such as the National Association of Insurance   Commissioners), (v) which has been publicly disclosed other than as a result of disclosure by   such party prohibited by this Agreement, (vi) in connection with any litigation to which any   Credit Party, the Agent, any Secured Counterparty or any of their respective Affiliates may be   party, (vii) to the extent necessary in connection with the exercise of any remedy hereunder or   under the other Facility Documents or any Secured Counterparty ISDA Agreements, (viii) to a   party’s Affiliates and their respective directors, officers, employees and agents including legal   counsel and independent auditors (it being understood that, if disclosure is made pursuant to this   clause (viii), 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), (ix) with the   consent of the Parent, and (x) to Gold Sheets and other similar bank trade publications, such   information to consist solely of deal terms and other information customarily found in such   publications.  For purposes of this Section 9.12, “Information” means all information received   from a Credit Party relating to a Credit Party or its business, other than any such information that   is available to the Agent or any Secured Counterparty on a nonconfidential basis prior to   disclosure by a Credit Party; provided that, in the case of any information received from a Credit   Party after the date hereof, such information is clearly identified at the time of delivery as   confidential. Except as expressly permitted by this Agreement, each Credit Party and the Agent   agrees that it will not disclose to any Secured Counterparty any information with respect to the   exposure, Energy Transactions or Secured Counterparty ISDA Agreement of any other Secured   Counterparty or the details of any Energy Transactions among parties to this Agreement.   Section 9.13 Patriot Act.The Credit Parties acknowledge that some or all of the   Secured Counterparties may be subject to the requirements of the USA PATRIOT Act (Title III   of Pub.L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”).  The Credit Parties   shall cooperate with the Secured Counterparties, including in the event of a permitted assignment   or transfer of rights or of obligations under this Agreement, by providing information requested   by any Secured Counterparty to allow such Secured Counterparty to meet its obligations under   the Patriot Act to identify its counterparties under this Agreement.     

 

   52   Section 9.14 Termination of Genco Guaranty and Brunner Island and   Montour Mortgages.  The parties agree that the Brunner Island Mortgage and the Montour   Mortgage and all obligations thereunder have each been satisfied, discharged and released, and   shall no longer be in force and effect.  The parties further agree and confirm that the Genco   Guaranty has been terminated and all obligations of Brunner Island and Montour thereunder   have been released, satisfied and discharged.   ARTICLE X      AMENDMENT AND RESTATEMENT   Section 10.01 Amendment and Restatement of Existing Common Agreement.    Upon the execution and delivery of this Agreement, the Existing Common Agreement shall be   amended and restated to read in its entirety as set forth herein.   [Signature Pages to Follow]     

 

   Signature Page to the Amended and Restated Common Agreement         TALEN ENERGY MARKETING, LLC         By: /s/  Russell R. Clelland                                             Name:  Russell R. Clelland   Title:  Vice President and Treasurer            TALEN ENERGY SUPPLY, LLC         By: /s/  Russell R. Clelland                                            Name:  Russell R. Clelland   Title:  Vice President and Treasurer            BRUNNER ISLAND, LLC, solely as to Section 9.14         By: /s/  Russell R. Clelland    Name:  Russell R. Clelland   Title:  Vice President and Treasurer            MONTOUR, LLC, solely as to Section 9.14         By: /s/  Russell R. Clelland    Name:  Russell R. Clelland   Title:  Vice President and Treasurer              

 

   Signature Page to the Amended and Restated Common Agreement      WILMINGTON TRUST, NATIONAL   ASSOCIATION, as Agent         By: /s/ Renee Kuhl                                            Name:  Renee Kuhl   Title:  Vice President                 

 

   Signature Page to the Amended and Restated Common Agreement   BNP PARIBAS, as        Initial Secured Counterparty         By: /s/ Christopher Taylor                                             Name:  Christopher Taylor   Title:  Director, BNP Paribas/Commodity   Derivatives            BNP PARIBAS, as        Initial Secured Counterparty         By: /s/ David Samuels                                             Name:  David Samuels   Title:  Managing Director           

 

   Signature Page to the Amended and Restated Common Agreement      CITIGROUP ENERGY INC., as Initial Secured   Counterparty         By: /s/ Michael J. Curry                                             Name:  Michael J. Curry   Title:  Managing Director      Notice to:      Citigroup Energy Inc.   2800 Post Oak Blvd., Suite 500   Houston, Texas 77056   Attention:  Legal Department   Facsimile No:  (713) 752-5244   CitiEnergyMargin@citi.com     

 

   Signature Page to the Amended and Restated Common Agreement      MERRILL LYNCH COMMODITIES, INC., as   Initial Secured Counterparty         By: /s/ Dennis Albrecht                                             Name:  Dennis Albrecht   Title:  Managing Director      Notice to:      Merrill Lynch Commodities, Inc.   20 East Greenway Plaza, 7th Floor   Houston, Texas 77046   Attention: Legal   Facsimile No:  (713) 544-5551   Telephone: (713) 544-4975     

 

   Signature Page to the Amended and Restated Common Agreement      J. ARON & COMPANY, as Initial Secured   Counterparty         By: /s/ Susan Rudov                                             Name:  Susan Rudov   Title:  Attorney In Fact        

 

   Signature Page to the Amended and Restated Common Agreement      MORGAN STANLEY CAPITAL GROUP INC.,        as Initial Secured Counterparty         By: /s/ Brett Humphreys                                             Name:  Brett Humphreys   Title:  Vice President                       

 

   Schedule A   Schedule A      INITIAL SECURED COUNTERPARTIES   BNP Paribas   Citigroup Energy Inc.   Merrill Lynch Commodities, Inc.   J. Aron & Company   Morgan Stanley Capital Group Inc.                 

 

   Schedule B   Schedule B      ERISA PLANS        

 

   EXHIBIT A-1   Exhibit A   JOINDER AGREEMENT   THIS JOINDER AGREEMENT is dated as of _______, 20___ by   ___________________, a _______________ corporation ("New Secured Counterparty").   WHEREAS, pursuant to Section 2.06 of that certain Secured Energy Marketing and   Trading Facility Amended and Restated Common Agreement dated as of December 15, 2015 (as   amended, modified or supplemented from time to time, the "Common Agreement") by and   among Talen Energy Marketing, LLC ("Company"), Talen Energy Supply, LLC, as Guarantor,   the Secured Counterparties from time to time party thereto and Wilmington Trust, National   Association, as Agent for the Secured Counterparties (in such capacity, "Agent"), the New   Secured Counterparty must execute and deliver a Joinder Agreement in accordance with the   Common Agreement.   NOW THEREFORE, the parties hereby covenant and agree as follows:   1. All capitalized terms used herein shall have the meanings assigned to them in the   Common Agreement unless expressly defined to the contrary.   2. New Secured Counterparty hereby enters into this Joinder Agreement in order to comply   with Section 2.06 of the Common Agreement and does so in consideration of the   promises and covenants made or to be made from time to time under the Common   Agreement, from which New Secured Counterparty shall derive direct benefit.   3. From and after the date hereof, new Secured Counterparty shall be considered, and   deemed to be, for all purposes of the Facility Documents, a Secured Counterparty under   the Facility Documents, as fully as though New Secured Counterparty had executed and   delivered or had been a beneficiary of the Facility Documents, at the time of their original   execution and delivery and hereby ratifies and confirms its obligations under the Facility   Documents, all in accordance with the terms thereof.   4. No Default or Event of Default has occurred and is continuing under any of the Facility   Documents.   5. This Joinder Agreement shall be governed by the laws of the State of New York and shall   be binding upon New Secured Counterparty and its successors and assigns.     [Signature Pages to Follow]     

 

   EXHIBIT A-2   IN WITNESS WHEREOF, the parties hereto have executed and delivered this Joinder   Agreement as of _________________, 20___.         TALEN ENERGY MARKETING, LLC         By:    Title:            TALEN ENERGY SUPPLY, LLC         By:    Title:              

 

   EXHIBIT A-3   WILMINGTON TRUST, NATIONAL   ASSOCIATION, as Agent         By:     Title:                 

 

   EXHIBIT A-4   [_______________], as New Secured Counterparty   By:     Title:   Notice to:        

 

   Exhibit E-1   Exhibit E   FORM OF   ACCESSION AGREEMENT — First-Lien Secured Parties   THIS ACCESSION AGREEMENT (this “Agreement”), dated as of [        ], 20[        ], is entered   into by [        ], a [        ] (the “Joining Party”), and acknowledged by TALEN ENERGY SUPPLY, LLC,   a Delaware limited liability company (the “Borrower”) and each Credit Party, and CITIBANK, N.A., in   its capacity as Collateral Trustee under the Intercreditor Agreement (as defined below).   Reference is made to that certain Collateral Trust and Intercreditor Agreement (as amended,   modified, restated or supplemented from time to time, the “Intercreditor Agreement”), dated as of June 1,   2015 by and among the Borrower, the Subsidiary Guarantors, the Collateral Trustee, the Administrative   Agent and each of the other Persons party thereto from time to time in accordance with the terms thereof.    Capitalized terms used herein without definition shall have the meaning assigned thereto in the   Intercreditor Agreement.  This Accession Agreement is being executed and delivered pursuant to Section   5.6(a) of the Collateral Trust Agreement.   The Joining Party, as agent under Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of December 15, 2015 (the “Secured Trading Facility Common   Agreement”), hereby becomes a SECURED DEBT REPRESENTATIVE under the Intercreditor   Agreement with respect to Obligations (as such term is defined in the Secured Trading Facility Common   Agreement, the “STF Obligations”) to the Secured Counterparties (as defined in the Secured Trading   Facility Common Agreement) under the Secured Trading Facility Common Agreement.   Each of the Borrower and the Joining Party hereby agree for the benefit of the First-Lien Secured   Parties as follows:   (1) The Joining Party hereby acknowledges, agrees and confirms that, by its   execution of this Agreement, the Joining Party will be deemed to be a party to the Intercreditor   Agreement, and, from and after the date hereof, shall have all of the obligations of a SECURED   DEBT REPRESENTATIVE thereunder as if it had executed the Intercreditor Agreement.  The   Joining Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms,   provisions and conditions applicable to the SECURED DEBT REPRESENTATIVE contained in   the Intercreditor Agreement.  The first-lien obligations to be secured under the Guarantee and   Collateral Agreement and Security Documents, as contemplated in the Secured Trading Facility   Common Agreement, are the STF Obligations, and the STF Obligations are hereby designated   “Obligations” and will be secured equally and ratably with all existing and future Obligations   permitted by the Financing Documents.   (2) To the extent the Joining Party is joining as a Secured Debt Representative as   agent or trustee for one or more First-Lien Secured Parties, the Joining Party acknowledges that it   has the authority to bind such First-Lien Secured Parties to the Intercreditor Agreement and such   First-Lien Secured Parties are hereby bound by the terms and conditions of the Intercreditor   Agreement.   (3) The Joining Party hereby agrees (on behalf of itself and any First-Lien Secured   Party claiming through it) to comply with the terms of the Intercreditor Agreement.   (4) Each of the undersigned Credit Parties hereby consents to the designation of STF   Obligations as Obligations as set forth herein and hereby confirms its respective guarantees,     

 

   Exhibit E-2   pledges, grants of security interests and other obligations, as applicable, under and subject to the   terms of each of the Financing Documents to which it is party, and agrees that, notwithstanding   the designation of such additional indebtedness or any of the transactions contemplated thereby,   such guarantees, pledges, grants of security interests and other obligations, and the terms of each   Financing Document to which it is a party, are not impaired or adversely affected in any manner   whatsoever and shall continue to be in full force and effect and such additional secured debt shall   be entitled to all of the benefits of such Financing Documents.   (5) The address of the Joining Party for purposes of all notices and other   communications under the Intercreditor Agreement is Wilmington Trust, National Association,   ______________, Attention of [        ] (Facsimile No.  [        ], electronic mail address:  [        ]).   (6) This Agreement may be executed in two or more counterparts, each of which   shall constitute an original but all of which when taken together shall constitute one contract.   (7) The provisions of Section 9.6 of the Intercreditor Agreement will apply with like   effect to this Accession Agreement.     

 

   Exhibit E-3   IN WITNESS WHEREOF, each of the Joining Party, each Credit Party and the Collateral Trustee   has caused this Accession Agreement to be duly executed by its respective authorized representative, as   of the day and year first above written.   [WILMINGTON TRUST, NATIONAL   ASSOCIATION], as Agent under the Secured   Trading Facility Common Agreement referred to   herein   By:      Name:   Title:   Acknowledged:   TALEN ENERGY SUPPLY, LLC   By:      Name:   Title:   [INSERT DETAILS OF ALL CREDIT   PARTIES UNDER SECURITY   DOCUMENTS AS AT DATE OF THIS   ACCESSION AGREEMENT]   By:      Name:   Title:   Acknowledged:   CITIBANK, N.A., as Collateral Trustee   By:      Name:   Title:        

 

   Exhibit G-1   Exhibit G-1   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Threshold Adjustment   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 2.02 of the Agreement, we hereby notify you that a [Threshold   Modification][Automatic Threshold Adjustment] has occurred and the modified [Counterparty   Threshold][Facility Threshold] is [●], with respect to [specify Secured Counterparty] and its   Secured Counterparty ISDA Agreement.      Very truly yours,      [Secured Counterparty]      By: _____________________         Name:         Title:      cc: Talen Energy Marketing, LLC      

 

   Exhibit G-2   Exhibit G-2   [Letterhead of Company]           [Date]   Wilmington Trust, National Association   1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Threshold Adjustment   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 2.02 of the Agreement, we hereby notify you that a [Threshold   Modification][Automatic Threshold Adjustment] has occurred and the modified [Counterparty   Threshold][Facility Threshold] is [●], with respect to [specify Secured Counterparty] and its   Secured Counterparty ISDA Agreement.     Very truly yours,      Talen Energy Marketing, LLC      By: _____________________         Name:         Title:      cc: [Secured Counterparty]     

 

   Exhibit H-1   Exhibit H-1   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Secured Counterparty Exposure Notification   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 2.03(a) of the Agreement, we hereby notify you that (i) the Secured   Counterparty Exposure with respect to [insert name of Secured Counterparty] is [●] and (ii) the   amount of the Termination Payment due and owing by the Company to us under our Secured   Counterparty ISDA Agreement is [●].   Very truly yours,      [Secured Counterparty]      By: _____________________          Name:          Title:         cc: Talen Energy Marketing, LLC     

 

   Exhibit H-2   Exhibit H-2   [Letterhead of Company]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Secured Counterparty Exposure Notification   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 2.03(a) of the Agreement, we hereby notify you that (i) the Secured   Counterparty Exposure with respect to [insert name of Secured Counterparty] is [●] and (ii) the   amount of the Termination Payment due and owing by us to [specify Secured Counterparty]   under its Secured Counterparty ISDA Agreement is [●].   Very truly yours,      Talen Energy Marketing, LLC      By: _____________________          Name:          Title:         cc: [Secured Counterparty]     

 

   Exhibit I-1   Exhibit I-1   [Letterhead of Company/Parent]           [Date]   Wilmington Trust, National Association   1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Secured Counterparty ISDA Agreement Event of Default      Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   As contemplated in Section 6.05(b) and pursuant to Section [5.01(f)/5.02(g)] of the   Agreement, we hereby notify you that an Event of Default under (and as defined in) the Secured   Counterparty ISDA Agreement, dated as of [●], 2010, between the Company and [specify   Secured Counterparty] has occurred.   Very truly yours,      [Company/Parent]      By: _____________________          Name:          Title:         cc: [Secured Counterparty]     

 

   Exhibit I-2   Exhibit I-2   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Secured Counterparty ISDA Agreement Event of Default      Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen   EnergyPlus, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(a) of the Agreement, we hereby notify you that an Event of   Default (as defined in the Secured Counterparty ISDA Agreement, dated as of [●], 2010,   between the Company and [specify Secured Counterparty] has occurred.   Very truly yours,      [Secured Counterparty]      By: _____________________          Name:          Title:         cc: Talen Energy Marketing, LLC     

 

   Exhibit I-3   Exhibit I-3   [Letterhead of Wilmington Trust, National Association]           [Date]   To the Addressees on Schedule 1 hereto   Re: Trading Limitation Notice   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(b) of the Agreement, the Agent hereby delivers this Trading   Limitation Notice to the Company and each Secured Counterparty that the Agent has received   the attached notice from a Credit Party of an Event of Default under (and as defined in) the   applicable Secured Counterparty ISDA Agreement.   Very truly yours,      Wilmington Trust, National Association      By: _____________________         Name:         Title:     

 

   Schedule 1 to Exhibit I-3   Schedule 1 to Exhibit I-3   Talen Energy Marketing, LLC   Floor 2   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Legal Services   Facsimile: (610) 774-2755      Talen Energy Supply, LLC   Floor 7   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Treasurer   Facsimile: 610-774-4511       [Insert addresses of Secured Counterparties]     

 

   Exhibit I-4   Exhibit I-4   [Letterhead of Wilmington Trust, National Association]           [Date]   To the Addressees on Schedule 1 hereto   Re: Trading Limitation Notice   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(b) of the Agreement, the Agent hereby delivers this Trading   Limitation Notice to the Company and each Secured Counterparty that the Agent has received   the attached notice from [insert applicable Secured Counterparty] of an Event of Default under   (and as defined in) the Secured Counterparty ISDA Agreement referred to therein.      Very truly yours,      Wilmington Trust, National Association      By: _____________________         Name:         Title:     

 

   Schedule 1 to Exhibit I-4   Schedule 1 to Exhibit I-4   Talen Energy Marketing, LLC   Floor 2   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Legal Services   Facsimile: (610) 774-2755      Talen Energy Supply, LLC   Floor 7   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Treasurer   Facsimile: 610-774-4511       [Insert addresses of Secured Counterparties]     

 

   Exhibit J-1      Exhibit J-1   [Letterhead of Wilmington Trust, National Association]           [Date]   To the Addressees on Schedule 1 hereto   Re: Revocation of Trading Limitation Notice   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(b) of the Agreement, the Agent hereby delivers this Revocation   of Trading Limitation Notice to the Company and each Secured Counterparty that the Agent has   received the attached Event of Default Resolution Notification from the same party that   delivered the Notice of Secured Counterparty ISDA Agreement Event of Default and therefore   that the Trading Limitation Notice is no longer outstanding and in effect.      Very truly yours,      Wilmington Trust, National Association      By: _____________________         Name:         Title:     

 

   Schedule 1 to Exhibit J-1   Schedule 1 to Exhibit J-1   Talen Energy Marketing, LLC   Floor 2   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Legal Services   Facsimile: (610) 774-2755      Talen Energy Supply, LLC   Floor 7   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Treasurer   Facsimile: 610-774-4511       [Insert addresses of Secured Counterparties]     

 

   Exhibit J-2   Exhibit J-2   [Letterhead of Company/Parent]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Secured Counterparty ISDA Agreement Event of Default Resolution Notification      Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   We hereby notify you pursuant to the last sentence of Section 6.05(b) of the Agreement   that the circumstances giving rise to the Event of Default under (and as defined in) the Secured   Counterparty ISDA Agreement, dated as of [●], 2010, between the Company and [specify   Secured Counterparty] have been cured or otherwise resolved by the parties, and we request that   you issue a Revocation of Trading Limitation Notice.   Very truly yours,      [Company/Parent]      By: _____________________          Name:          Title:         cc: [Secured Counterparty]     

 

   Exhibit J-3   Exhibit J-3   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Secured Counterparty ISDA Agreement Event of Default Resolution Notification      Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   We hereby notify you pursuant to the last sentence of Section 6.05(b) of the Agreement   that the circumstances giving rise to the Event of Default under (and as defined in) the Secured   Counterparty ISDA Agreement, dated as of [●], 2010, between the Company and [specify   Secured Counterparty] have been cured or otherwise resolved by the parties, and we request that   you issue a Revocation of Trading Limitation Notice.      Very truly yours,      [Secured Counterparty]      By: _____________________          Name:          Title:         cc: Talen Energy Marketing, LLC     

 

   Exhibit K-1   Exhibit K-1   [Letterhead of Company]           [Date]   Wilmington Trust, National Association   1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Early Termination Date   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(d) of the Agreement, we hereby notify you that [insert name of   relevant Secured Counterparty] has designated an Early Termination Date with respect to the   Secured Counterparty ISDA Agreement, dated as of [●], 20[●], by and between the Company   and [insert name of relevant Secured Counterparty].      Very truly yours,      Talen Energy Marketing, LLC      By: _____________________          Name:          Title:      cc: [specify Secured Counterparty]     

 

   Exhibit K-2   Exhibit K-2   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Early Termination Date   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(d) of the Agreement, we hereby notify you that we have   designated an Early Termination Date with respect to the Secured Counterparty ISDA   Agreement, dated as of [●], 20[●], by and between the Company and [insert name of relevant   Secured Counterparty].      Very truly yours,      [Secured Counterparty]      By: _____________________          Name:          Title:      cc: Talen Energy Marketing, LLC     

 

   Exhibit L-1   Exhibit L-1   [Letterhead of Company]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Early Termination Date   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(d) of the Agreement, we hereby notify you that an Early   Termination Date has occurred with respect to the Secured Counterparty ISDA Agreement, dated   as of [●], 20[●], by and between the Company and [insert name of relevant Secured   Counterparty].   Very truly yours,      Talen Energy Marketing, LLC         By: _____________________          Name:          Title:            cc: [specify Secured Counterparty]     

 

   Exhibit L-2   Exhibit L-2   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Notice of Early Termination Date   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(d) of the Agreement, we hereby notify you that an Early   Termination Date has occurred with respect to the Secured Counterparty ISDA Agreement, dated   as of [●], 20[●], by and between the Company and [insert name of relevant Secured   Counterparty].   Very truly yours,      [Secured Counterparty]         By: _____________________          Name:          Title:            cc: Talen Energy Marketing, LLC    

 

   Exhibit M-1   Exhibit M   [Letterhead of Wilmington Trust, National Association]           [Date]   To the Addressees on Schedule 1 hereto   Re: Notice to Secured Counterparties of Early Termination Date   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 6.05(d) of the Agreement, the Agent hereby notifies you that it has   received a Notice of Early Termination Date.       Very truly yours,      Wilmington Trust, National Association      By: _____________________         Name:         Title:     

 

   Schedule 1 to Exhibit M   Schedule 1 to Exhibit M   [Insert addresses of Secured Counterparties]        

 

   Exhibit N-1   Exhibit N-1   [Letterhead of Company]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Form of Vote Request   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 9.03(c) of the Agreement, we hereby request that you issue a Vote   Notice to the Secured Counterparties.     [Company to insert following details:   (i) reasonably detailed description of proposed act or matter requiring vote;   (ii) Record Date for determination of Secured Counterparties (or such other number   or percentage of the Secured Counterparties as shall be required under the   applicable Facility Document) in connection with such proposed act or matter;   (iii) the effective date, if applicable, of such act or matter; and   (iv) the Due Date for delivery of solicited vote.]   Very truly yours,      Talen Energy Marketing, LLC      By: _____________________         Name:         Title:     

 

   Exhibit N-2   Exhibit N-2   [Letterhead of Secured Counterparty]           [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com   Re: Form of Vote Request   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 9.03(c) of the Agreement, we hereby request that you issue a Vote   Notice to the Company and the other Secured Counterparties.     [Secured Counterparty to insert following details:   (v) reasonably detailed description of proposed act or matter requiring vote;   (vi) Record Date for determination of Secured Counterparties (or such other number   or percentage of the Secured Counterparties as shall be required under the   applicable Facility Document) in connection with such proposed act or matter;   (vii) the effective date, if applicable, of such act or matter; and   (viii) the Due Date for delivery of solicited vote.]   Very truly yours,      Talen Energy Marketing, LLC      By: _____________________         Name:        Title:   cc: Talen Energy Marketing, LLC     

 

   Exhibit N-3      Exhibit N-3   [Letterhead of Wilmington Trust, National Association]           [Date]   To the Addressees on Schedule 1 hereto   Re: Vote Notice   Ladies and Gentlemen:   Reference is made to the Secured Energy Marketing and Trading Facility Amended and   Restated Common Agreement dated as of ____________, 2015, by and among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, Wilmington   Trust, National Association, as Agent (the “Agent”) and the Secured Counterparties from time to   time parties thereto (the “Agreement”).  Unless otherwise specified herein, capitalized terms   used but not defined herein shall have the meanings ascribed to them in the Agreement.   Pursuant to Section 9.03(c) of the Agreement, the Agent hereby delivers this Vote Notice   that the Agent has received the attached Vote Request.      Very truly yours,      Wilmington Trust, National Association      By: _____________________         Name:         Title:     

 

   Schedule 1 to Exhibit N-3   Schedule 1 to Exhibit N-3   Talen Energy Marketing, LLC   Floor 2   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Legal Services   Facsimile: (610) 774-2755      Talen Energy Supply, LLC   Floor 7   835 Hamilton Street   Suite 150   Allentown, Pennsylvania 18101   Attention: Treasurer   Facsimile: 610-774-4511       [Insert addresses of Secured Counterparties]     

 

   Exhibit O-1   Exhibit O      [Letterhead of Secured Counterparty]   [Date]   Wilmington Trust, National Association    1100 North Market Street   Wilmington, Delaware 19890-0001   Attention: Alisha Clendaniel   Telephone: 302-636-6505   Facsimile: 302-636-4140   Email: aclendaniel@wilmingtontrust.com and loanagency@wilmingtontrust.com    Re: Release Certificate   Ladies and Gentlemen:   Reference is made to that certain Secured Energy Marketing and Trading Facility   Amended and Restated Common Agreement dated as of ____________, 2015 (as modified and   supplemented and in effect on the date hereof, the “Agreement”) among Talen Energy   Marketing, LLC (the “Company”), Talen Energy Supply, LLC, as a guarantor, the undersigned   and the other several secured counterparties from time to time party thereto as Secured   Counterparties and Wilmington Trust, National Association (as successor by merger to   Wilmington Trust FSB) , as Agent (in such capacity, the “Agent”).  Capitalized terms used   herein and not otherwise defined shall have the meanings assigned to such terms in the   Agreement.   This certificate is furnished to the Agent pursuant to Section 7.04(b) of the Agreement.    The undersigned hereby certifies and agrees that (i) the Facility Limit has been reduced to zero,   and (ii) the Eligible Collateral required to be posted in accordance with the Secured Counterparty   ISDA Agreement between the Company and the undersigned after giving effect to such   reduction in the Facility Limit has been posted.   IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed as   of the date first written above.   [SECURED COUNTERPARTY]      By:________________________   Name:______________________   Title:_______________________

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