Document:

pnc_dpl-secondamendedand

Execution Version  165778087_5  DEAL CUSIP:  24001QAH4  FACILITY CUSIP:  24001QAJ0  $250,000,000 REVOLVING CREDIT FACILITY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  by and among  THE DAYTON POWER AND LIGHT COMPANY (d/b/a AES Ohio)  THE LENDERS PARTY HERETO  PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent  PNC CAPITAL MARKETS LLC, Joint Bookrunner and Joint Lead Arranger  and  U.S. BANK, NATIONAL ASSOCIATION, as Syndication Agent, Joint Bookrunner and Joint  Lead Arranger    Dated as of December 22, 2022  

 

TABLE OF CONTENTS  Page   -i-   165778087  1. CERTAIN DEFINITIONS ................................................................................................ 1  1.1 Certain Definitions ................................................................................................. 1  1.2 Construction ......................................................................................................... 29  1.3 Accounting Principles .......................................................................................... 29  1.4 Benchmark Replacement Notification ................................................................. 30  2. REVOLVING CREDIT AND SWING LOAN FACILITIES......................................... 30  2.1 Revolving Credit Commitments .......................................................................... 30  2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans .......... 30  2.3 [Reserved] ............................................................................................................ 30  2.4 [Reserved] ............................................................................................................ 31  2.5 Commitment Fees ................................................................................................ 31  2.6 Revolving Credit Loan Requests; Loan Conversions and Renewals; Swing  Loan Requests ...................................................................................................... 31  2.7 Making Revolving Credit Loans and Swing Loans; Presumptions by the  Administrative Agent; Repayment of Revolving Credit Loans; Borrowings  to Repay Swing Loans ......................................................................................... 32  2.8 Evidence of Debt.................................................................................................. 33  2.9 Use of Proceeds.................................................................................................... 34  2.10 Defaulting Lenders............................................................................................... 34  2.11 Reduction of Revolving Credit Commitments .................................................... 35  2.12 Letter of Credit Subfacility .................................................................................. 36  2.13 Increase in Revolving Credit Commitments ........................................................ 42  2.14 Extension of Expiration Date ............................................................................... 44  3. [RESERVED] .................................................................................................................. 46  4. INTEREST RATES ......................................................................................................... 46  4.1 Interest Rate Options............................................................................................ 46  4.2 Conforming Changes Relating to the Term SOFR Rate and Daily SOFR .......... 47  4.3 Interest After Default ........................................................................................... 47  4.4 Rate Unascertainable; Increased Costs; Illegality; Benchmark  Replacement Setting ............................................................................................ 48  4.5 Selection of Interest Rate Options ....................................................................... 54  5. PAYMENTS .................................................................................................................... 54  5.1 Payments .............................................................................................................. 54  

 

TABLE OF CONTENTS  (continued)  Page   -ii-   165778087  5.2 Pro Rata Treatment of Lenders ............................................................................ 54  5.3 Sharing of Payments by Lenders ......................................................................... 55  5.4 Presumptions by Administrative Agent ............................................................... 55  5.5 Interest Payment Dates ........................................................................................ 56  5.6 Voluntary Prepayments ........................................................................................ 56  5.7 Mandatory Prepayments ...................................................................................... 58  5.8 Increased Costs .................................................................................................... 58  5.9 Taxes .................................................................................................................... 59  5.10 Indemnity ............................................................................................................. 63  5.11 Settlement Date Procedures ................................................................................. 64  6. REPRESENTATIONS AND WARRANTIES................................................................ 64  6.1 Existence, Qualification and Power ..................................................................... 64  6.2  Authorization; No Contravention ....................................................................... 65  6.3 Governmental Authorization; Other Consents..................................................... 65  6.4 Binding Effect ...................................................................................................... 65  6.5 Financial Statements; No Material Adverse Effect ............................................. 65  6.6 Litigation .............................................................................................................. 66  6.7 No Default ............................................................................................................ 66  6.8 Ownership of Property ......................................................................................... 66  6.9 Environmental Compliance ................................................................................. 66  6.10 Insurance .............................................................................................................. 67  6.11 Taxes .................................................................................................................... 67  6.12 ERISA Compliance .............................................................................................. 67  6.13 Subsidiaries .......................................................................................................... 68  6.14 Margin Regulations; Investment Company Act; Federal Power Act .................. 68  6.15 Disclosure ............................................................................................................ 69  6.16 Compliance with Laws ........................................................................................ 69  6.17 Intellectual Property; Licenses, Etc ..................................................................... 69  6.18 Solvency ............................................................................................................... 69  6.19 Employment Matters ............................................................................................ 69  6.20 OFAC ................................................................................................................... 70  

 

TABLE OF CONTENTS  (continued)  Page   -iii-   165778087  6.21 Anti-Corruption Laws .......................................................................................... 70  7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT ............ 70  7.1 Conditions Precedent to Effectiveness of this Agreement ................................... 70  7.2 Each Loan or Letter of Credit .............................................................................. 71  8. COVENANTS ................................................................................................................. 72  8.1 Affirmative Covenants ......................................................................................... 72  8.2 Negative Covenants ............................................................................................. 76  9. DEFAULT ....................................................................................................................... 82  9.1 Events of Default ................................................................................................. 82  9.2 Consequences of Event of Default ....................................................................... 84  10. THE ADMINISTRATIVE AGENT ................................................................................ 86  10.1 Appointment and Authority ................................................................................. 86  10.2 Rights as a Lender ................................................................................................ 86  10.3 Exculpatory Provisions ........................................................................................ 86  10.4 Reliance by Administrative Agent ....................................................................... 87  10.5 Delegation of Duties ............................................................................................ 87  10.6 Resignation of Administrative Agent .................................................................. 88  10.7 Non-Reliance on Administrative Agent and Other Lenders ................................ 88  10.8 No Other Duties, etc ............................................................................................ 89  10.9 Administrative Agent’s Fee ................................................................................. 89  10.10 No Reliance on Administrative Agent’s Customer Identification Program ........ 89  10.11 Erroneous Payments............................................................................................. 89  11. MISCELLANEOUS ........................................................................................................ 92  11.1 Modifications, Amendments or Waivers ............................................................. 92  11.2 No Implied Waivers; Cumulative Remedies ....................................................... 93  11.3 Expenses; Indemnity; Damage Waiver ................................................................ 94  11.4 Holidays ............................................................................................................... 96  11.5 Notices; Effectiveness; Electronic Communication ............................................ 96  11.6 Severability .......................................................................................................... 97  11.7 Duration; Survival ................................................................................................ 97  11.8 Successors and Assigns........................................................................................ 97  

 

TABLE OF CONTENTS  (continued)  Page   -iv-   165778087  11.9 Confidentiality ................................................................................................... 101  11.10 Counterparts; Integration; Effectiveness; Electronic Execution ........................ 101  11.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF  VENUE;  SERVICE OF PROCESS; WAIVER OF JURY TRIAL .................. 102  11.12 USA Patriot Act Notice ..................................................................................... 103  11.13 Certain ERISA Matters ...................................................................................... 103  11.14 Acknowledgment and Consent to Bail-In of Affected Financial Institutions.... 104  11.15 Amendment and Restatement ............................................................................ 105  11.16 Acknowledgement Regarding Any Supported QFCs ........................................ 106  11.17 No Advisory or Fiduciary Responsibility .......................................................... 107  

 

  - v -  165778087  LIST OF SCHEDULES AND EXHIBITS  SCHEDULES   SCHEDULE 1.1(A) - PRICING GRID  SCHEDULE 1.1(B) - COMMITMENTS OF LENDERS AND ADDRESSES FOR  NOTICES  SCHEDULE 8.2(a) - EXISTING LIENS  SCHEDULE 8.2(b) - EXISTING INVESTMENTS  EXHIBITS      EXHIBIT 1.1(A) - ASSIGNMENT AND ASSUMPTION AGREEMENT  EXHIBIT 1.1(N)(1) - REVOLVING CREDIT NOTE  EXHIBIT 1.1(N)(2) - SWING LOAN NOTE  EXHIBIT 2.6(A) - LOAN REQUEST  EXHIBIT 2.6(B) - SWING LOAN REQUEST  EXHIBIT 2.13 - LENDER JOINDER  EXHIBIT 2.14(A) - EXTENSION REQUEST  EXHIBIT 2.14(B) - CONTINUATION NOTICE  EXHIBIT 5.9(g)(A) - U.S.  TAX COMPLIANCE CERTIFICATE (For Foreign  Lenders That Are Not Partnerships For U.S.  Federal Income  Tax Purposes)  EXHIBIT 5.9(g)(B) - U.S.  TAX COMPLIANCE CERTIFICATE (For Foreign  Participants That Are Not Partnerships For U.S.  Federal Income  Tax Purposes)  EXHIBIT 5.9(g)(C) - U.S.  TAX COMPLIANCE CERTIFICATE (For Foreign  Participants That Are Partnerships For U.S.  Federal Income Tax  Purposes)  EXHIBIT 5.9(g)(D) - U.S.  TAX COMPLIANCE CERTIFICATE (For Foreign  Lenders That Are Partnerships For U.S.  Federal Income Tax  Purposes)  EXHIBIT 8.1(c) - QUARTERLY COMPLIANCE CERTIFICATE  

 

  165778087  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT (as hereafter  amended, amended and restated, supplemented or otherwise modified from time to time, the  “Agreement”) is dated as of December 22, 2022 and is made by and among THE DAYTON  POWER AND LIGHT COMPANY, an Ohio corporation (d/b/a AES Ohio) (the “Borrower” or  “DP&L”), the LENDERS (as hereinafter defined), and PNC BANK, NATIONAL  ASSOCIATION, in its capacity as administrative agent for the Lenders under this Agreement  (hereinafter referred to in such capacity as the “Administrative Agent”).  WHEREAS, the Borrower, the Administrative Agent and the Lenders are party to that  certain Amended and Restated Credit Agreement dated as of June 19, 2019, as amended, restated,  supplemented or otherwise modified from time to time prior to the date hereof (the “Existing  Credit Agreement”), pursuant to which such Lenders extended certain credit facilities to the  Borrower.  WHEREAS, the Borrower has requested the Lenders and the Administrative Agent to  amend and restate the Existing Credit Agreement and the credit facility thereunder and to provide  a revolving credit facility to the Borrower in an aggregate principal amount not to exceed  $250,000,000.  NOW THEREFORE, in consideration of their mutual covenants and agreements  hereinafter set forth and intending to be legally bound hereby, the parties hereto covenant and  agree as follows in this Agreement.  1. CERTAIN DEFINITIONS  1.1 Certain Definitions.  In addition to words and terms defined elsewhere in this  Agreement, the following words and terms shall have the following meanings, respectively, unless  the context hereof clearly requires otherwise:  Acquisition shall mean any acquisition (a) on a going concern basis (whether by  purchase, merger or otherwise) of assets constituting a business or a division or line of business  of a Person that is not a Subsidiary of the Borrower or (b) of a majority of the outstanding Equity  Interests in any such Person (whether by merger, stock purchase or otherwise).  Additional Commitment Lender shall have the meaning specified in Section  2.14(d) [Additional Commitment Lenders].  Adjusted Term SOFR Rate shall mean the Term SOFR Rate, plus the SOFR  Adjustment; provided that if the Adjusted Term SOFR Rate as so determined shall ever be less  than the SOFR Floor, then the Adjusted Term SOFR Rate shall be deemed to be the SOFR Floor.    Administrative Agent shall mean PNC Bank, National Association, and its  successors and assigns, in its capacity as administrative agent hereunder.  

 

  2  165778087  Administrative Agent’s Fee shall have the meaning specified in Section 10.9  [Administrative Agent’s Fee].  Administrative Agent’s Letter shall have the meaning specified in Section 10.9  [Administrative Agent’s Fee].  AES shall mean The AES Corporation, a Delaware corporation.  Affected Financial Institution means (a) any EEA Financial Institution or (b) any  UK Financial Institution.  Affiliate shall mean, with respect to any Person, another Person that directly, or  indirectly through one or more intermediaries, Controls or is Controlled by or is under common  Control with the Person specified.  Agreement shall have the meaning specified in the preamble hereto.  Anti-Terrorism Laws shall mean any Laws relating to terrorism, trade sanctions  programs and embargoes, import/export licensing, money laundering or bribery, and any  regulation, order, or directive promulgated, issued or enforced pursuant to such Laws, all as  amended, supplemented or replaced from time to time.  Applicable Commitment Fee Rate shall mean the percentage rate per annum based  on the Ratings of the Borrower then in effect according to the pricing grid on Schedule 1.1(A)  below the heading “Applicable Commitment Fee Rate.”  Applicable Letter of Credit Fee Rate shall mean the percentage rate per annum  based on the senior unsecured long-term debt ratings of the Borrower then in effect according to  the pricing grid on Schedule 1.1(A) below the heading “Applicable Letter of Credit Fee Rate.”  Applicable Margin shall mean, as applicable:  (A) the percentage spread to be added to the Base Rate applicable to Revolving  Credit Loans or Swing Loans under the Base Rate Option based on the Ratings of the Borrower  then in effect according to the pricing grid on Schedule 1.1(A) below the heading “Applicable  Margin for Base Rate Loans”,   (B) the percentage spread to be added to the Term SOFR Rate applicable to  Revolving Credit Loans under the Term SOFR Rate Option based on the Ratings of the Borrower  then in effect according to the pricing grid on Schedule 1.1(A) below the heading “Applicable  Margin for Term SOFR Rate Loans and Daily SOFR Loans”, or  (C) the percentage spread to be added to Daily SOFR applicable to Swing Loans  under the Swing Loan Daily SOFR Option based on the Ratings of the Borrower then in effect  according to the pricing grid on Schedule 1.1(A) below the heading “Applicable Margin for  Term SOFR Rate Loans and Daily SOFR Loans”.  

 

  3  165778087  The Applicable Margin shall be based on Level 4 of the pricing grid on Schedule 1.1(A) as of the  Closing Date, and thereafter based on the Ratings in accordance with the terms and conditions of  this Agreement.  Approved Fund shall mean any fund that is engaged in making, purchasing, holding  or investing in bank loans and similar extensions of credit in the ordinary course of business and  that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an  Affiliate of an entity that administers or manages a Lender.  Assignment and Assumption Agreement shall mean an assignment and assumption  agreement entered into by a Lender and an assignee permitted under Section 11.8 [Successors and  Assigns], in substantially the form of Exhibit 1.1(A).  Audited Financial Statements shall mean the audited condensed consolidated  balance sheet of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2021,  and the related consolidated statements of income or operations, shareholders’ equity and cash  flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto.  Authorized Officer shall mean, with respect to the Borrower, the Chairman, the  President and Chief Executive Officer, any Vice President, the Chief Financial Officer, the  Controller, the Treasurer, the Assistant Treasurer, the General Counsel and Secretary, or such other  individuals, designated by written notice to the Administrative Agent from the Borrower,  authorized to execute notices, reports and other documents on behalf of the Borrower required  hereunder.  The Borrower may amend such list of individuals from time to time by giving written  notice of such amendment to the Administrative Agent.  Available Tenor shall have the meaning specified in Section 4.4(d) [Benchmark  Replacement Setting].  Bail-In Action shall mean the exercise of any Write-Down and Conversion Powers  by the applicable Resolution Authority in respect of any liability of an Affected Financial  Institution.  Bail-In Legislation shall mean, (a) with respect to any EEA Member Country  implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council  of the European Union, the implementing law, rule, regulation or requirement for such EEA  Member Country from time to time which is described in the EU Bail-In Legislation Schedule,  and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as  amended from time to time) and any other law, regulation or rule applicable in the United Kingdom  relating to the resolution of unsound or failing banks, investment firms or other financial  institutions or their affiliates (other than through liquidation, administration or other insolvency  proceedings).  Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal to  the highest of (i) the Overnight Bank Funding Rate, plus 0.5%, (ii) the Prime Rate, and (iii) the  Daily Simple SOFR, plus 1.00%, so long as Daily Simple SOFR is offered, ascertainable and not  unlawful; provided, however, if the Base Rate as determined above would be less than zero, then  such rate shall be deemed to be zero.  Any change in the Base Rate (or any component thereof)  

 

  4  165778087  shall take effect at the opening of business on the day such change occurs. Notwithstanding  anything to the contrary contained herein, in the case of any event specified in Section 4.4(a) [Rate  Unascertainable; Increased Costs] or Section 4.4(b) [Illegality], to the extent any such  determination affects the calculation of the Base Rate, the definition hereof shall be calculated  without reference to clause (iii) until the circumstances giving rise to such event no longer exist.  Base Rate Loan shall mean a Loan that bears interest based on the Base Rate.   Base Rate Option shall mean the option of the Borrower to have Loans bear interest  at the rate and under the terms specified in either Section 4.1(a)(i) [Revolving Credit Base Rate  Option] or Section 4.1(b)(i) [Swing Loan Base Rate Option], as applicable.  Benchmark shall have the meaning specified in Section 4.4(d) [Benchmark  Replacement Setting].  Benchmark Replacement shall have the meaning specified in Section 4.4(d)  [Benchmark Replacement Setting].  Benchmark Replacement Adjustment shall have the meaning specified in Section  4.4(d) [Benchmark Replacement Setting].  Benchmark Replacement Date shall have the meaning specified in Section 4.4(d)  [Benchmark Replacement Setting].  Benchmark Transition Event shall have the meaning specified in Section 4.4(d)  [Benchmark Replacement Setting].  Benefit Plan shall mean any of (a) an “employee benefit plan” (as defined in  ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975  of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or  otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such  “employee benefit plan” or “plan”.  BHC Act Affiliate shall have the meaning specified in Section 11.16(c)  [Acknowledgment Regarding Any Supported QFCs].  Borrower has the meaning assigned in the first paragraph of this Agreement.  Borrowing Date shall mean, with respect to any Loan, the date of the making,  renewal or conversion thereof, which shall be a Business Day.  Borrowing Tranche shall mean specified portions of Revolving Credit Loans or  Swing Loans, as the context may require, consisting of simultaneous loans under the same Interest  Rate Option, and in the case of Term SOFR Rate Loans, having the same Interest Period.  For the  avoidance of doubt, (a) all Revolving Credit Loans to which a Base Rate Option applies shall  constitute one Borrowing Tranche, (b) all Swing Loans to which a Base Rate Option applies shall  constitute one Borrowing Tranche and (c) all Swing Loans to which a Daily SOFR Option applies  shall constitute one Borrowing Tranche.  

 

  5  165778087  Business Day shall mean any day other than a Saturday or Sunday or a legal holiday  on which commercial banks are authorized or required to be closed, or are in fact closed, for  business in Pittsburgh, Pennsylvania (or, if otherwise, the city in which the lending office of the  Administrative Agent is located); provided that, when used in connection with an amount that  bears interest at a rate based on SOFR or any direct or indirect calculation or determination of  SOFR, the term “Business Day” shall mean any such day that is also a U.S. Government Securities  Business Day  Capital Lease shall mean, as to any Person, a lease of any interest in any kind of  property or asset, whether real, personal or mixed, or tangible or intangible, by such Person as  lessee that is, or should be, in accordance with Accounting Standards Committee - Leases.  Topic  840 (formerly, the Financial Accounting Standards Board Statement No.  13), as amended from  time to time, or, if such statement is not then in effect, such statement of GAAP as may be  applicable, recorded as a “capital lease” on the balance sheet of the Borrower prepared in  accordance with GAAP.  Capital Trust II Indebtedness shall mean the Borrower’s obligations in respect of  any Indebtedness issued by DPL Capital Trust II.  Cash Collateralize shall mean to pledge and deposit with or deliver to the  Administrative Agent, for the benefit of the Administrative Agent, Issuing Lenders or Swing Loan  Lender (as applicable) and the Lenders, as collateral for Letter of Credit Obligations, Obligations  in respect of Swing Loans, or obligations of Lenders to fund participations in respect of either  thereof (as the context may require), cash or deposit account balances or, if the Issuing Lenders or  Swing Loan Lender benefitting from such collateral shall agree in its sole discretion, other credit  support, in each case pursuant to documentation in form and substance reasonably satisfactory to  (a) the Administrative Agent and (b) the Issuing Lenders or the Swing Loan Lender (as applicable).  Cash Collateral shall have a meaning correlative to the foregoing and shall include the proceeds  of such cash collateral and other credit support.  Cash Equivalent or Short-Term Investments shall mean: (a) obligations of, or  unconditionally guaranteed by, the United States of America; (b) obligations issued or guaranteed  by any person controlled or supervised by and acting as an instrumentality of the United States of  America pursuant to authority granted by the Congress of the United States of America; (c)  negotiable or non-negotiable certificates of deposit and time deposits issued by any bank, trust  company or national banking association, including the Administrative Agent, having total assets  in excess of one (1) billion Dollars and which has combined capital, surplus and undivided profits  of at least $25,000,000; (d) commercial paper of the quality rated on the date of purchase at “A-1”  by S&P or “P-1” by Moody’s purchased directly or through recognized money market dealers; (e)  municipal obligations the interest on which is excluded from the gross income of the owners  thereof for federal tax purposes under Section 103 of the Code, if rated on the date of purchase in  one of the two highest rating categories of either Moody’s or S&P; (f) any repurchase agreement  secured by any one or more of the foregoing; (g) any repurchase agreement or guaranteed  investment contract from a bank or insurance company rated on the date of purchase in one of the  two highest rating categories of either Moody’s or S&P and secured by any one or more of the  foregoing with collateral equal or greater than 102% of the principal amount originally invested  valued on a weekly basis; (h) units or shares of a Qualified Regulated Investment Company which  

 

  6  165778087  invests solely in obligations described in clause (e) above; for purposes of this clause (h) a  Qualified Regulated Investment Company means a qualified regulated investment company as  defined by the Internal Revenue Service including any regulated investment company (as defined  in Section 851(a) of the Code) which, (i) for the taxable year, meets the requirements of Section  852(a) of the Code, (ii) has authorized and outstanding only one class of units or shares and (iii)  to the extent practicable invests all of its assets in tax-exempt bonds, or the weighted average value  of its assets is represented by investments in tax-exempt bonds; and (i) money market funds which  funds are rated on the date of purchase in one of the two highest rating categories of either Moody’s  or S&P.  Change in Law shall mean the occurrence, after the date of this Agreement, of any  of the following: (i) the adoption or taking effect of any Law, (ii) any change in any Law or in the  administration, interpretation, implementation or application thereof by any Governmental  Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether or  not having the force of Law) by any Governmental Authority; provided that notwithstanding  anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection  Act and all requests, rules, regulations, guidelines, interpretations or directives thereunder or  issued in connection therewith (whether or not having the force of Law) and (y) all requests, rules,  regulations, guidelines, interpretations or directives promulgated by the Bank for International  Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority)  or the United States or foreign regulatory authorities (whether or not having the force of Law), in  each case pursuant to Basel III, shall in each case be deemed to be a Change in Law regardless of  the date enacted, adopted, issued, promulgated or implemented.  Change of Control shall mean:  (a) any “person” or “group” (as such terms are used in Sections 13(d)  and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or  its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other  fiduciary or administrator of any such plan), other than AES (directly or indirectly)  becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange  Act, except that a person or group shall be deemed to have “beneficial ownership” of all  securities that such person or group has the right to acquire, whether such right is  exercisable immediately or only after the passage of time (such right, an “option right”)),  directly or indirectly, of 35% or more of the equity securities of the Parent entitled to vote  for members of the board of directors or equivalent governing body of the Parent on a fully- diluted basis (and taking into account all such securities that such person or group has the  right to acquire pursuant to any option right);  (b) during any period of 12 consecutive months, a majority of the  members (excluding vacancies) of the board of directors or other equivalent governing  body of the Parent cease to be composed of individuals (i) who were members of that board  or equivalent governing body on the first day of such period, (ii) whose election or  nomination to that board or equivalent governing body was approved by individuals  referred to in clause (i) above constituting at the time of such election or nomination at  least a majority of that board or equivalent governing body or (iii) whose election or  nomination to that board or other equivalent governing body was approved by individuals  

 

  7  165778087  referred to in clauses (i) and (ii) above constituting at the time of such election or  nomination at least a majority of that board or equivalent governing body; or  (c) the Parent shall cease to own (directly or indirectly) 100% of the  outstanding shares of all classes of stock of the Borrower ordinarily having the right to vote  at an election of directors, or any contingency shall occur that causes any class of stock of  the Borrower, the shares of which are not owned by the Parent, to have the right to vote at  an election of directors.  CIP Regulations shall have the meaning specified in Section 10.10 [No Reliance  on Administrative Agent’s Customer Identification Program].  Closing Date shall mean December 22, 2022.  Code shall mean the Internal Revenue Code of 1986, as the same may be amended  or supplemented from time to time, and any successor statute of similar import, and the rules and  regulations thereunder, as from time to time in effect.  Commitment shall mean as to any Lender the aggregate of its Revolving Credit  Commitment and, in the case of PNC, its Swing Loan Commitment, and Commitments shall mean  the aggregate of the Revolving Credit Commitments and Swing Loan Commitment of all of the  Lenders.  Commitment Fee shall have the meaning specified in Section 2.5 [Commitment  Fees].  Compliance Certificate shall mean a certificate substantially in the form of Exhibit  8.1(c).  Conforming Changes shall mean, with respect to the Term SOFR Rate, Daily SOFR  or any Benchmark Replacement in relation thereto, any technical, administrative or operational  changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the  definition of “Interest Period,” the definition of “U.S. Government Securities Business Day,”  timing and frequency of determining rates and making payments of interest, timing of borrowing  requests or prepayment, conversion or continuation notices, the applicability and length of  lookback periods, the applicability of breakage provisions, and other technical, administrative or  operational matters) that the Administrative Agent reasonably decides (in consultation with the  Borrower) may be appropriate to reflect the adoption and implementation of the Term SOFR Rate,  Daily SOFR or such Benchmark Replacement and to permit the administration thereof by the  Administrative Agent in a manner substantially consistent with market practice (or, if the  Administrative Agent reasonably decides that adoption of any portion of such market practice is  not administratively feasible or if the Administrative Agent reasonably determines that no market  practice for the administration of the Term SOFR Rate, Daily SOFR or the Benchmark  Replacement exists, in such other manner of administration as the Administrative Agent decides  (in consultation with the Borrower) is reasonably necessary in connection with the administration  of this Agreement and the other Loan Documents).  

 

  8  165778087  Connection Income Taxes shall mean Other Connection Taxes that are imposed on  or measured by net income (however denominated) or that are franchise Taxes or branch profits  Taxes.  Consolidated EBITDA shall mean, for any period, for the Borrower and its  Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period  plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i)  Consolidated Interest Charges for such period, (ii) the provision for Federal, state, local and foreign  income taxes payable by the Borrower and its Subsidiaries for such period, (iii) depreciation and  amortization expense for such period, (iv) other non-recurring expenses of the Borrower and its  Subsidiaries reducing such Consolidated Net Income (x) which do not represent a cash item in  such period or (y) which are cash items in such period that were incurred as a result of (A) the  early termination of Borrower’s Capital Trust II Indebtedness or (B) termination of existing swap  contracts (it being understood that cash charges described in this clause (B) will not exceed  $50,000,000 in the aggregate), or (C) normal and customary out-of-pocket third party costs,  expenses and fees incurred directly in connection with the refinancing of any existing  Indebtedness, and (v) all other non-cash items reducing Consolidated Net Income for such period,  and minus (b) the following to the extent included in calculating such Consolidated Net Income:  (i) Federal, state, local and foreign income tax credits of the Borrower and its Subsidiaries for such  period and (ii) all non-cash items increasing Consolidated Net Income for such period.  Consolidated Interest Charges shall mean, for any period, for the Borrower and its  Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, debt discount,  fees, charges and related expenses of the Borrower and its Subsidiaries in connection with  borrowed money (including capitalized interest) or in connection with the deferred purchase price  of assets, in each case to the extent treated as interest in accordance with GAAP, and (b) the portion  of rent expense of the Borrower and its Subsidiaries with respect to such period under Capital  Leases that is treated as interest in accordance with GAAP.  Consolidated Net Income shall mean, for any period, for the Borrower and its  Subsidiaries on a consolidated basis, the net income (or loss), without deduction for minority  interests, of the Borrower and its Subsidiaries for that period determined in conformity with  GAAP.  Consolidated Net Worth shall mean, as of any date of determination, for the  Borrower and its Subsidiaries on a consolidated basis, all amounts that, in conformity with GAAP,  would be included under the caption “total stockholders’ equity” (or any like caption) on a  consolidated balance sheet of the Borrower and its Subsidiaries as of such date; provided that in  no event shall Consolidated Net Worth include any amounts in respect of Redeemable Stock.  Consolidated Tangible Assets shall mean, as of any date of determination, for the  Borrower and its Subsidiaries on a consolidated basis, the consolidated total assets of the Borrower  and its Subsidiaries calculated on a consolidated basis as of such date, but excluding therefrom  goodwill, patents, patent applications, permits, trademarks, trade names, copyrights, licenses,  franchises, experimental expense, organizational expense, unamortized debt discount and expense,  the excess of cost of shares acquired over book value of related assets and such other assets that  are properly classified as “intangible assets” in accordance with GAAP.  

 

  9  165778087  Consolidated Total Capitalization shall mean, as of any date of determination, the  sum of Consolidated Total Debt and Consolidated Net Worth and, to the extent not otherwise  included, preferred stock of the Borrower that is not Redeemable Stock.  Consolidated Total Debt shall mean, as of any date of determination, for the  Borrower and its Subsidiaries on a consolidated basis, the sum (without duplication) of all  Indebtedness of the Borrower and of each of its Subsidiaries (other than the Borrower’s guarantee  of any debt obligation of Ohio Valley Electric Corporation, an electric generating company in  which the Borrower holds a 4.9% equity interest).  Continuation Notice shall have the meaning specified in Section 2.14(b) [Lender  Elections to Extend].  Contractual Obligation shall mean, as to any Person, any provision of any security  issued by such Person or of any agreement, instrument or other undertaking to which such Person  is a party or by which it or any of its property is bound.  Control shall mean the possession, directly or indirectly, of the power to direct or  cause the direction of the management or policies of a Person, whether through the ability to  exercise voting power, by contract or otherwise.  Controlling and Controlled have meanings  correlative thereto.  Covered Entity shall mean the Borrower, each of Borrower’s Subsidiaries, all  guarantors and all pledgors of collateral.  Covered Party shall have the meaning specified in Section 11.16(b)  [Acknowledgment Regarding Any Supported QFCs].  Daily Simple SOFR shall mean, for any day (a “SOFR Rate Day”), the interest rate  per annum determined by the Administrative Agent as SOFR for the day (the “SOFR  Determination Date”) that is 2 Business Days prior to (i) such SOFR Rate Day if such SOFR Rate  Day is a Business Day or (ii) the Business Day immediately preceding such SOFR Rate Day if  such SOFR Rate Day is not a Business Day, as such SOFR is published by the Federal Reserve  Bank of New York (or a successor administrator of the secured overnight financing rate) on the  website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or  any successor source identified by the Federal Reserve Bank of New York or its successor  administrator for the secured overnight financing rate from time to time.  If Daily Simple SOFR  as determined above would be less than the SOFR Floor, then Daily Simple SOFR shall be deemed  to be the SOFR Floor.  If SOFR for any SOFR Determination Date has not been published or  replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the  second Business Day immediately following such SOFR Determination Date, then SOFR for such  SOFR Determination Date will be SOFR for the first Business Day preceding such SOFR  Determination Date for which SOFR was published in accordance with the definition of “SOFR”;  provided that SOFR determined pursuant to this sentence shall be used for purposes of calculating  Daily Simple SOFR for no more than 3 consecutive SOFR Rate Days.  If and when Daily Simple  SOFR as determined above changes, any applicable rate of interest based on Daily Simple SOFR  will change automatically without notice to the Borrower, effective on the date of any such change.  

 

  10  165778087  Daily SOFR shall mean Daily Simple SOFR.  Daily SOFR Loan shall mean a Loan that bears interest based on Daily SOFR.  Daily SOFR Option shall mean the option of the Borrower to have Swing Loans  bear interest at the rate and under the terms specified in Section 4.1(b)(ii) [Swing Loan Daily  SOFR Option].  Debtor Relief Laws shall mean the Bankruptcy Code of the United States, and all  other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,  moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws  of the United States or other applicable jurisdictions from time to time in effect and affecting the  rights of creditors generally.  Default Rate shall mean (a) when used with respect to Obligations other than Letter  of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Margin, if any,  applicable to Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a  Term SOFR Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including  any Applicable Margin and the SOFR Adjustment) otherwise applicable to such Loan plus 2% per  annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable  Margin plus 2% per annum.    Default Right shall have the meaning specified in Section 11.16(c)  [Acknowledgment Regarding Any Supported QFCs].  Defaulting Lender shall mean any Lender that (a) has failed, within two Business  Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any  portion of its participations in Letters of Credit or Swing Loans or (iii) pay over to the  Administrative Agent, the Issuing Lender, PNC (as the Swing Loan Lender) or any Lender any  other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such  Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s  good faith determination that a condition precedent to funding (specifically identified and  including the particular default, if any) has not been satisfied, (b) has notified the Borrower or the  Administrative Agent in writing, or has made a public statement to the effect, that it does not intend  or expect to comply with any of its funding obligations under this Agreement (unless such writing  or public statement indicates that such position is based on such Lender’s good faith determination  that a condition precedent (specifically identified and including the particular default, if any) to  funding a loan under this Agreement cannot be satisfied) or generally under other agreements in  which it commits to extend credit, (c) has failed, within two Business Days after request by the  Administrative Agent or the Borrower, acting in good faith, to provide a certification in writing  from an authorized officer of such Lender that it will comply with its obligations (and is financially  able to meet such obligations) to fund prospective Loans and participations in then outstanding  Letters of Credit and Swing Loans under this Agreement, provided that such Lender shall cease to  be a Defaulting Lender pursuant to this clause (c) upon the Administrative Agent’s or the  Borrower’s receipt of such certification in form and substance satisfactory to the Administrative  Agent or the Borrower, as the case may be, (d) has become the subject of a Bankruptcy Event, (e)  has become the subject of a Bail-In Action, or (f) has failed at any time to comply with the  

 

  11  165778087  provisions of Section 5.3 [Sharing of Payments by Lenders] with respect to purchasing  participations from the other Lenders, whereby such Lender’s share of any payment received,  whether by setoff or otherwise, is in excess of its Ratable Share of such payments due and payable  to all of the Lenders.   As used in this definition and in Section 2.10 [Defaulting Lenders], the term  “Bankruptcy Event” means, with respect to any Person, such Person or such Person’s direct or  indirect parent company becoming the subject of a bankruptcy or insolvency proceeding, or having  had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors  or similar Person charged with the reorganization or liquidation of its business appointed for it, or,  in the good faith determination of the Administrative Agent, has taken any action in furtherance  of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or  appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership  interest, or the acquisition of any ownership interest, in such Person or such Person’s direct or  indirect parent company by an Governmental Authority or instrumentality thereof if, and only if,  such ownership interest does not result in or provide such Person with immunity from the  jurisdiction of courts within the United States or from the enforcement of judgments or writs of  attachment on its assets or permit such Person (or such Governmental Authority or instrumentality)  to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.  Designated Jurisdiction shall mean any country or territory to the extent that such  country or territory itself is the subject of any Sanction.  Disposition or Dispose shall mean the sale, transfer, license, lease or other  disposition (including any sale and leaseback transaction or by way of an LLC Division) of any  property by any Person, including any sale, assignment, transfer or other disposal, with or without  recourse, of any notes or accounts receivable or any rights and claims associated therewith;  provided that the term “Disposition” or “Dispose” shall not include any loss or damage to, or any  condemnation or taking of, any property.  Dollar, Dollars, U.S. Dollars and the symbol $ shall mean lawful money of the  United States of America.  DP&L First Mortgage Bonds shall mean those certain First Mortgage Bonds issued  pursuant to the Indenture, dated as of October 1, 1935, as amended, supplemented or otherwise  modified from time to time, between DP&L and The Bank of New York Mellon (or its  predecessors or successors).  Drawing Date shall have the meaning specified in Section 2.12(e) [Disbursements,  Reimbursement].  EEA Financial Institution shall mean (a) any credit institution or investment firm  established in any EEA Member Country which is subject to the supervision of an EEA Resolution  Authority, (b) any entity established in an EEA Member Country which is a parent of an institution  described in clause (a) of this definition, or (c) any financial institution established in an EEA  Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this  definition and is subject to consolidated supervision with its parent.  

 

  12  165778087  EEA Member Country shall mean any of the member states of the European Union,  Iceland, Liechtenstein, and Norway.  EEA Resolution Authority shall mean any public administrative authority or any  person entrusted with public administrative authority of any EEA Member Country (including any  delegee) having responsibility for the resolution of any EEA Financial Institution.  Energy-Related Business shall mean any business engaged in or directly related to:   (a) the production, sale, brokerage, management, transportation, delivery or other provision of  energy products, including but not limited to, electricity, natural gas, oil, propane and renewable  energy producing materials; (b) the provision of energy conservation services, including, but not  limited to, energy audits, installation of energy conservation devices, energy efficient equipment  and related systems; (c) the provision of services and equipment in connection with the  procurement of such energy products or conservation of energy; (d) engineering, consulting,  construction, operational or maintenance services in connection with such energy products, the  conservation of energy or with equipment utilizing such energy products; or (e) the manufacturing  of equipment used in connection with energy production or conservation.  Environmental Laws shall mean all applicable federal, state, local, tribal, territorial  and foreign Laws (including common law), constitutions, statutes, treaties, regulations, rules,  ordinances and codes and any consent decrees, settlement agreements, judgments, orders,  directives, policies or programs issued by or entered into with an Governmental Authority  pertaining or relating to: (i) pollution or pollution control; (ii) protection of human health from  exposure to regulated substances; (iii) protection of the environment and/or natural resources; (iv)  employee safety in the workplace; (v) the presence, use, management, generation, manufacture,  processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale,  transport, storage, collection, distribution, disposal or release or threat of release of regulated  substances; (vi) the presence of contamination; (vii) the protection of endangered or threatened  species; and (viii) the protection of environmentally sensitive areas.  Equity Interests shall mean, with respect to any Person, all of the shares of capital  stock of such Person, all of the warrants, options or other rights for the purchase or acquisition  from such Person of such shares of capital stock of such Person, and all of the other ownership  interests in such Person (including partnership, member or trust interests therein), whether voting  or nonvoting, and whether or not such shares, warrants, options, rights or other interests are  outstanding on any date of determination.  ERISA shall mean the Employee Retirement Income Security Act of 1974, as the  same may be amended or supplemented from time to time, and any successor statute of similar  import, and the rules and regulations thereunder, as from time to time in effect.  ERISA Affiliate means any trade or business (whether or not incorporated) under  common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and  Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the  Code).  

 

  13  165778087  ERISA Event means (a) a Reportable Event with respect to a Pension Plan; (b) the  withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063  of ERISA during a plan year in which such entity was a “substantial employer” as defined in  Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under  Section 4062(e) of ERISA; (c) the assessment of withdrawal liability under Title IV of ERISA  upon the Borrower or any ERISA Affiliate in connection with the Borrower’s or any ERISA  Affiliate’s complete or partial withdrawal from a Multiemployer Plan or the Borrower’s or any  ERISA Affiliate’s notification that a Multiemployer Plan is in reorganization; (d) the filing of a  notice of intent to terminate or the treatment of a Pension Plan amendment as a termination under  Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a  Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA  for the termination of, or the appointment of a trustee to administer, any Pension Plan; or (g)  the  imposition of any liability under Title IV of ERISA upon the Borrower or any ERISA Affiliate,  other than for PBGC premiums due but not delinquent under Section 4007 of ERISA.  Erroneous Payment has the meaning assigned to it in Section 10.11(a) [Erroneous  Payments].  Erroneous Payment Deficiency Assignment has the meaning assigned to it in  Section 10.11(d) [Erroneous Payments].  Erroneous Payment Impacted Class shall have the meaning specified in Section  10.11(d) [Erroneous Payments].  Erroneous Payment Return Deficiency shall have the meaning specified in Section  10.11(d) [Erroneous Payments].  Erroneous Payment Subrogation Rights shall have the meaning specified in Section  10.11(d) [Erroneous Payments].  EU Bail-In Legislation Schedule means the EU Bail-In Legislation Schedule  published by the Loan Market Association (or any successor person), as in effect from time to  time.  Event of Default shall mean any of the events described in Section 9.1 [Events of  Default] and referred to therein as an “Event of Default.”  Exchange Act shall mean the Securities and Exchange Act of 1934, as amended.  Excluded Taxes shall mean any of the following Taxes imposed on or with respect  to a Recipient or required to be withheld or deducted from a payment to a Recipient, (i) Taxes  imposed on or measured by net income (however denominated), franchise Taxes, and branch  profits Taxes, in each case, (a) imposed as a result of such Recipient being organized under the  laws of, or having its principal office or, in the case of any Lender, its applicable lending office  located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (b) that are  Other Connection Taxes, (ii) in the case of a Lender, U.S.  federal withholding Taxes imposed on  amounts payable to or for the account of such Lender with respect to an applicable interest in a  Loan or Commitment pursuant to a law in effect on the date on which (a) such Lender acquires  

 

  14  165778087  such interest in such Loan or Commitment (other than pursuant to an assignment request by the  Borrower under Section 5.6(b) [Replacement of a Lender]) or (b) such Lender changes its lending  office, except in each case to the extent that, pursuant to Section 5.9(g) [Status of Lenders],  amounts with respect to such Taxes were payable either to such Lender’s assignor immediately  before such Lender became a party hereto or to such Lender immediately before it changed its  lending office, (iii) Taxes attributable to such Recipient’s failure to comply with Section 5.9(g)  [Status of Lenders], and (iv) any U.S.  federal withholding Taxes imposed under FATCA (except  to the extent imposed due to the failure of the Borrower to provide documentation or information  to the IRS).  Executive Order No.  13224 shall mean the Executive Order No.  13224 on  Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be,  renewed, extended, amended or replaced.  Existing Credit Agreement shall have the meaning set forth in the recitals to this  Agreement.  Existing Expiration Date shall have the meaning specified in Section 2.14(a)  [Requests for Extension].  Existing LIBOR Rate Loans shall have the meaning specified in Section 11.15(c)  [Amendment and Restatement].  Expiration Date shall mean, with respect to the Revolving Credit Commitments,  December 22, 2027, subject to extension (in the case of each Lender consenting thereto) in  accordance with Section 2.14.  Extension shall have the meaning specified in Section 2.14(a) [Requests for  Extension].  Extension Amendment shall have the meaning specified in Section 2.14(f)(v)  [Conditions to Effectiveness of Extensions].  Extension Request shall have the meaning specified in Section 2.14(a) [Requests  for Extension].  Facility shall mean the Commitments of the Lenders and the Issuing Lender to  make Revolving Credit Loans, to make and participate in Swing Loans and issue and participate  in Letters of Credit, and the Revolving Credit Loans and Letters of Credit extended under such  Commitments.  FATCA shall mean Sections 1471 through 1474 of the Code, as of the date of this  Agreement (or any amended or successor version that is substantively comparable and not  materially more onerous to comply with), any current or future regulations or official  interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.  Federal Funds Effective Rate for any day shall mean the rate per annum (based on  a year of 360 days and actual days elapsed) and rounded upward to the nearest 1/100 of 1%  

 

  15  165778087  announced by the NYFRB (or any successor) on such day as being the weighted average of the  rates on overnight federal funds transactions arranged by federal funds brokers on the previous  trading day, as computed and announced by such Federal Reserve Bank (or any successor) in  substantially the same manner as such Federal Reserve Bank computes and announces the  weighted average it refers to as the “Effective Federal Funds Rate” as of the date of this  Agreement; provided that if such Federal Reserve Bank (or its successor) does not announce such  rate on any day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds  Effective Rate for the last day on which such rate was announced.  Notwithstanding the foregoing,  if the Federal Funds Effective Rate as determined under any method above would be less than zero  percent (0.00%), such rate shall be deemed to be zero percent (0.00%) for purposes of this  Agreement.  Fitch shall have the meaning set forth in the pricing grid on Schedule 1.1(A).  Fitch Rating shall have the meaning set forth in the pricing grid on Schedule 1.1(A).  Floor shall have the meaning specified in Section 4.4(d) [Benchmark Replacement  Setting].  Foreign Lender shall mean any Lender that is organized under the Laws of a  jurisdiction other than that in which the Borrower is resident for tax purposes.  For purposes of  this definition, the United States of America, each State thereof and the District of Columbia shall  be deemed to constitute a single jurisdiction.  FPA shall mean the Federal Power Act, as amended, and all rules and regulations  promulgated thereunder.  FRB shall mean the Board of Governors of the Federal Reserve System of the  United States.  GAAP shall mean generally accepted accounting principles as are in effect from  time to time, subject to the provisions of Section 1.3 [Accounting Principles; Changes in GAAP],  and applied on a consistent basis both as to classification of items and amounts.  Governmental Authority shall mean the government of the United States of  America or any other nation, or of any political subdivision thereof, whether state or local, and any  agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising  executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or  pertaining to government (including any supra national bodies such as the European Union or the  European Central Bank).  Guaranty shall mean, as to any Person, (a) any obligation, contingent or otherwise,  of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or  other obligation payable or performable by another Person (the “primary obligor”) in any manner,  whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i)  to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness  or other obligation, (ii) to purchase or lease property, securities or services for the purpose of  assuring the obligee in respect of such Indebtedness or other obligation of the payment or  

 

  16  165778087  performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity  capital or any other financial statement condition or liquidity or level of income or cash flow of  the primary obligor so as to enable the primary obligor to pay such Indebtedness or other  obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in  respect of such Indebtedness or other obligation of the payment or performance thereof or to  protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any  assets of such Person securing any Indebtedness or other obligation of any other Person, whether  or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent  or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any  Guaranty shall be deemed to be an amount equal to the stated or determinable amount of the related  primary obligation, or portion thereof, in respect of which such Guaranty is made or, if not stated  or determinable, the maximum reasonably anticipated liability in respect thereof as determined by  the guaranteeing Person in good faith.  The term “Guaranty” as a verb has a corresponding  meaning.  ICC shall have the meaning specified in Section 11.11(a) [Governing Law].  Immaterial Subsidiary shall mean a Subsidiary that (a) represents less than 1% of  the Consolidated Tangible Assets of the Borrower and its Subsidiaries as would be shown in the  consolidated financial statements of the Borrower and its Subsidiaries as at the beginning of the  twelve (12) month period ending with the month in which such determination is made or (b) is  responsible for less than 1% of the consolidated net sales or of the Consolidated Net Income of the  Borrower and its Subsidiaries as reflected in the financial statements referred to in clause (a) above.  Increasing Lender shall have the meaning assigned to that term in Section 2.13(a)  [Increasing Lenders and New Lenders].  Indebtedness means, as to any Person at a particular time, without duplication, all  of the following:   (a) all obligations of such Person for borrowed money and all obligations of  such Person evidenced by bonds, debentures, notes, loan agreements or other similar  instruments;  (b) all direct or contingent obligations of such Person arising under letters of  credit (including standby and commercial) and bankers’ acceptances;  (c) all obligations of such Person to pay the deferred purchase price of capital  assets or services that in accordance with GAAP would be shown on the liability side of  the balance sheet of such Person;  (d) indebtedness (excluding prepaid interest thereon) secured by a Lien on  property owned or being purchased by such Person (including indebtedness arising under  conditional sales or other title retention agreements), whether or not such indebtedness  shall have been assumed by such Person or is limited in recourse;  (e) Capital Leases and Synthetic Lease Obligations;  

 

  17  165778087  (f) all obligations of such Person to purchase, redeem, retire, defease or  otherwise make any payment in respect of any Redeemable Stock in such Person, valued,  in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary  liquidation preference plus accrued and unpaid dividends;   (g) the full outstanding balance of trade receivables, notes or other instruments  sold with full recourse (and the portion thereof subject to potential recourse, if sold with  limited recourse), other than in any such case any thereof sold solely for purposes of  collection of delinquent accounts; and  (h) all Guaranties of such Person in respect of any of the foregoing.  For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any  partnership or joint venture (other than a joint venture that is itself a corporation or limited liability  company) in which such Person is a general partner or a joint venturer, unless such Indebtedness  is expressly made non-recourse to such Person and shall exclude trade payables and other similar  accrued expenses arising in the ordinary course of business, obligations in respect of insurance  policies or performance or surety bonds that themselves are not guarantees of Indebtedness (or  drafts, acceptances or similar instruments evidencing the same or obligations in respect of letters  of credit supporting the payment of the same).  The amount of any Capital Lease or Synthetic  Lease Obligation as of any date shall be deemed to be the amount of Attributable Indebtedness in  respect thereof as of such date.    Indemnified Taxes shall mean (i) Taxes, other than Excluded Taxes, imposed on or  with respect to any payment made by or on account of any obligation of the Borrower under any  Loan Document, and (ii) to the extent not otherwise described in the preceding clause (i), Other  Taxes.  Indemnitee shall have the meaning specified in Section 11.3(b) [Indemnification  by the Borrower].  Information shall mean all information received from the Borrower or any of its  Subsidiaries relating to the Borrower or any such Subsidiaries or any of their respective businesses,  other than any such information that is available to the Administrative Agent, any Lender or the  Issuing Lender on a non-confidential basis prior to disclosure by the Borrower or any of its  Subsidiaries, provided that, in the case of information received from the Borrower or any of its  Subsidiaries after the date of this Agreement, such information is clearly identified at the time of  delivery as confidential.  Insolvency Proceeding shall mean, with respect to the Borrower or any Subsidiary  of the Borrower, (a) a case, action or proceeding with respect to the Borrower or any Subsidiary  of the Borrower (i) before any court or any other Governmental Authority under any bankruptcy,  insolvency, reorganization or other similar Law now or hereafter in effect, or (ii) for the  appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or  similar official) of the Borrower or any Subsidiary of the Borrower or otherwise relating to the  liquidation, dissolution, winding-up or relief of the Borrower or any Subsidiary of the Borrower  other than as permitted under Section 8.2(c), or (b) any general assignment for the benefit of  

 

  18  165778087  creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect  of the Borrower’s or such Subsidiary’s creditors generally or any substantial portion of its  creditors; undertaken under any Law.  Interest Period shall mean the period of time selected by the Borrower in connection  with (and to apply to) any election permitted hereunder by the Borrower to have Revolving Credit  Loans bear interest under the Term SOFR Rate Option.  Subject to the last sentence of this  definition, such period shall be, in each case, subject to the availability thereof, one month, three  months or six months.  Such Interest Period shall commence on the effective date of such Term  SOFR Rate Option, which shall be (i) the Borrowing Date if the Borrower is requesting new Loans,  or (ii) the date of renewal of or conversion to the Term SOFR Rate Option if the Borrower is  renewing or converting to the Term SOFR Rate Option applicable to outstanding Loans.   Notwithstanding the second sentence hereof: (A) any Interest Period which would otherwise end  on a date which is not a Business Day shall be extended to the next succeeding Business Day  unless such Business Day falls in the next calendar month, in which case such Interest Period shall  end on the next preceding Business Day, (B) the Borrower shall not select, convert to or renew an  Interest Period for any portion of the Loans that would end after the Expiration Date, and (C) any  Interest Period that commences on the last Business Day of a calendar month (or on a day for  which there is no numerically corresponding day in the last calendar month of such Interest Period)  shall end on the last Business Day of the last calendar month of such Interest Period.  Interest Rate Option shall mean any Term SOFR Rate Option, Daily SOFR Option  or Base Rate Option.  Investment means, as to any Person, any direct or indirect acquisition or investment  by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of  another Person (including any partnership or joint venture interest in such other Person), (b) a loan,  advance or capital contribution to, or a Guaranty, assumption, purchase or other acquisition of any  debt (other than accounts receivable and lease, utility or other deposits arising in the ordinary  course of business on terms customary in the trade) of, another Person, including any partnership  or joint venture interest in such other Person and any arrangement pursuant to which the investor  Guaranties Indebtedness of such other Person, or (c) the purchase or other acquisition (in one  transaction or a series of transactions) of assets of another Person that constitute a business unit.   For purposes of covenant compliance, the amount of any Investment shall be the amount actually  invested, without adjustment for subsequent increases or decreases in the value of such Investment,  less any amount paid, repaid, returned, distributed or otherwise received in cash in respect of such  Investment not to exceed the original amount of such Investment.  For the avoidance of doubt, the  exchange of interests in electricity generating units among tenants-in-common as described in  Section 8.2(d)(viii), shall not constitute an Investment hereunder.  Investment Grade shall mean two of the three Rating Agencies rate the Borrower’s  senior unsecured long-term Indebtedness equal to or greater than the respective level set forth  below (or, if such Rating is unavailable, the Borrower’s long-term issuer credit rating accorded to  it by the applicable Rating Agency):  Fitch Moody’s S&P  

 

  19  165778087  BBB- Baa3 BBB-  IRS shall mean the United States Internal Revenue Service.  ISP98 shall have the meaning specified in Section 11.11(a) [Governing Law].  Issuing Lender shall mean PNC and U.S. Bank, as applicable, each in its individual  capacity as issuer of Letters of Credit hereunder.  Joint Lead Arrangers shall mean PNC Capital Markets LLC and U.S. Bank  National Association, in each case, in its individual capacity as a joint lead arranger hereunder.  Law shall mean, as to any Person, collectively, all international, foreign, Federal,  state and local statutes, treaties, rules, regulations, ordinances, codes and administrative or judicial  precedents or authorities, including the interpretation or administration thereof by any  Governmental Authority charged with the enforcement, interpretation or administration thereof,  and all applicable administrative orders of, and agreements with, any Governmental Authority,  binding upon such Person or to which such Person is subject.  Lenders shall mean the financial institutions named on Schedule 1.1(B) and their  respective successors and assigns as permitted hereunder, each of which is referred to herein as a  Lender.  Letter of Credit shall have the meaning specified in Section 2.12(a) [Issuance of  Letters of Credit].  Letter of Credit Borrowing shall have the meaning specified in Section 2.12(e)  [Disbursements, Reimbursement].  Letter of Credit Fee shall have the meaning specified in Section 2.12(d) [Letter of  Credit Fees].  Letter of Credit Obligation shall mean, as of any date of determination, the  aggregate amount available to be drawn under all outstanding Letters of Credit on such date (if  any Letter of Credit shall increase in amount automatically in the future, such aggregate amount  available to be drawn shall currently give effect to any such future increase) plus the aggregate  Reimbursement Obligations and Letter of Credit Borrowings on such date.  Letter of Credit Sublimit shall have the meaning specified in Section 2.12(a)  [Issuance of Letters of Credit].  Liabilities shall mean, at any time, all liabilities of the Borrower and its Subsidiaries  that would be shown on a consolidated balance sheet of the Borrower prepared in accordance with  GAAP at such time.  Lien means any mortgage, pledge, hypothecation, assignment, deposit  arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other  security interest or preferential arrangement in the nature of a security interest of any kind or nature  

 

  20  165778087  whatsoever (including any conditional sale or other title retention agreement, any easement, right  of way or other encumbrance on title to real property, and any financing lease having substantially  the same economic effect as any of the foregoing).  LLC Division means, in the event the Borrower or any Subsidiary is a limited  liability company, (a) the division of the Borrower or any Subsidiary into two or more newly  formed limited liability companies (whether or not the Borrower or such Subsidiary is a surviving  entity following any such division) pursuant to Section 18-217 of the Delaware Limited Liability  Company Act or any similar provision under any similar act governing limited liability companies  organized under the Laws of any other State or Commonwealth or of the District of Columbia, or  (b) the adoption of a plan contemplating, or the filing of any certificate with any applicable  Governmental Authority that results or may result in, any such division.  Loan Documents shall mean this Agreement, the Administrative Agent’s Letter,  the Notes and any other instruments, certificates or documents delivered in connection herewith  or therewith.  Loan Request shall have the meaning set forth in Section 2.6(a) [Revolving Credit  Loan Requests; Loan Conversions and Renewals].  Loans shall mean collectively and Loan shall mean separately all Revolving Credit  Loans and Swing Loans and or any Revolving Credit Loan or Swing Loan.  Material Adverse Effect shall mean (a) a material adverse change in, or a material  adverse effect on, the operations, business, assets, properties, liabilities (actual or contingent) or  financial condition of the Borrower and its Subsidiaries, taken as a whole; (b) a material  impairment of the rights and remedies of the Administrative Agent or the Lenders under any Loan  Document, or of the ability of the Borrower to perform its obligations under any Loan Document;  or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against  the Borrower of any Loan Document.  Moody’s shall have the meaning set forth in the pricing grid on Schedule 1.1(A).  Moody’s Rating shall have the meaning set forth in the pricing grid on Schedule  1.1(A).  Multiemployer Plan means any employee benefit plan of the type described in  Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated  to make contributions, or during the preceding five plan years, has made or been obligated to make  contributions.  Multiple Employer Plan means a Pension Plan which has two or more contributing  sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under  common control, as such a plan is described in Section 4064 of ERISA.  New Lender shall have the meaning assigned to that term in Section 2.13(a)  [Increasing Lenders and New Lenders].  

 

  21  165778087  Non-Consenting Lender shall have the meaning specified in Section 11.1  [Modifications, Amendments or Waivers].  Non-Extending Lender shall have the meaning specified in Section 2.14(b) [Lender  Elections to Extend].  Notes shall mean, collectively, the promissory notes in the form of Exhibit  1.1(N)(1) evidencing the Revolving Credit Loans, and in the form of Exhibit 1.1(N)(2) evidencing  the Swing Loans.  Notice Date shall have the meaning specified in Section 2.14(b) [Lender Elections  to Extend].  Notice of Non-Extension shall have the meaning specified in Section 2.14(b)  [Lender Elections to Extend].  NYFRB shall mean the Federal Reserve Bank of New York.  Obligations shall mean any obligation or liability of the Borrower, howsoever  created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter  existing, or due or to become due, under or in connection with this Agreement, the Notes, the  Letters of Credit, the Administrative Agent’s Letter or any other Loan Document whether to the  Administrative Agent, any of the Lenders or their Affiliates or other persons provided for under  such Loan Documents.  OFAC shall mean the Office of Foreign Assets Control of the United States  Department of the Treasury.  Order shall have the meaning specified in Section 2.12(k) [Liability for Acts and  Omissions].  Organization Documents shall mean, (a) with respect to any corporation, the  certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive  documents); (b) with respect to any limited liability company, the certificate or articles of  formation or organization and operating agreement; and (c) with respect to any partnership, joint  venture, trust or other form of business entity, the partnership, joint venture or other applicable  agreement of formation or organization and any agreement, instrument, filing or notice with  respect thereto filed in connection with its formation or organization with the applicable  Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any  certificate or articles of formation or organization of such entity.  Other Connection Taxes shall mean, with respect to any Recipient, Taxes imposed  as a result of a present or former connection between such Recipient (or an agent or affiliate  thereof) and the jurisdiction imposing such Tax (other than connections arising solely from such  Recipient having executed, delivered, become a party to, performed its obligations under, received  payments under, received or perfected a security interest under, engaged in any other transaction  pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan  Document).  

 

  22  165778087  Other Taxes shall mean all present or future stamp, court or documentary,  intangible, recording, filing or similar Taxes that arise from any payment made under, from the  execution, delivery, performance, enforcement or registration of, from the receipt or perfection of  a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes  that are Other Connection Taxes imposed with respect to an assignment (other than an assignment  made pursuant to Section 5.6(b) [Replacement of a Lender]).  Overnight Bank Funding Rate shall mean, for any day, the rate comprised of both  overnight federal funds and overnight eurocurrency borrowings by U.S.-managed banking offices  of depository institutions, as such composite rate shall be determined by the NYFRB, as set forth  on its public website from time to time, and as published on the next succeeding Business Day as  the overnight bank funding rate by the NYFRB (or by such other recognized electronic source  (such as Bloomberg) selected by the Administrative Agent for the purpose of displaying such rate);  provided, that if such day is not a Business Day, the Overnight Bank Funding Rate for such day  shall be such rate on the immediately preceding Business Day; provided, further, that if such rate  shall at any time, for any reason, no longer exist, a comparable replacement rate determined by the  Administrative Agent at such time (which determination shall be conclusive absent manifest error).   If the Overnight Bank Funding Rate determined as above would be less than zero, then such rate  shall be deemed to be zero.  The rate of interest charged shall be adjusted as of each Business Day  based on changes in the Overnight Bank Funding Rate without notice to the Borrower.  Parent shall mean DPL Inc., an Ohio corporation.  Participant has the meaning specified in Section 11.8(d) [Participations].  Participant Register shall have the meaning specified in Section 11.8(d)  [Participations].  Participation Advance shall have the meaning specified in Section 2.12(e)  [Disbursements, Reimbursement].  Payment Date shall mean the first day of each calendar quarter after the date hereof  and on the Expiration Date or upon acceleration of the Notes.  Payment In Full and Paid In Full shall mean the indefeasible payment in full in cash  of the Loans and other Obligations hereunder, termination of the Commitments and expiration or  termination of all Letters of Credit.  Payment Recipient shall have the meaning specified in Section 10.11(a) [Erroneous  Payments].  PBGC shall mean the Pension Benefit Guaranty Corporation established pursuant  to Subtitle A of Title IV of ERISA or any successor.  Pension Funding Rules shall mean the rules of the Code and ERISA regarding  minimum required contributions (including any installment payment thereof) to Pension Plans and  set forth in Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of  ERISA.  

 

  23  165778087  Pension Plan means any employee pension benefit plan (including a Multiple  Employer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate  and is either covered by Title IV of ERISA or is subject to the minimum funding standards under  Section 412 of the Code.  Permitted Acquisition shall mean and includes any Acquisition as to which all of  the following conditions are satisfied:  (a) such Acquisition (i) involves a line or lines of an Energy- Related Business, and (ii) involves a Person or a line or lines of business that are located and  operated in the United States; (b) no Potential Default or Event of Default shall exist prior to or  immediately after giving effect to such Acquisition; (c) such Acquisition is not being consummated  on a hostile basis and has been approved by the board of directors of the target Person and no  material challenge to such Acquisition shall be pending or threatened by any shareholder or  director of the seller or Person to be acquired, and (d) as of the date of the consummation of such  Acquisition, all approvals required in connection therewith shall have been obtained.  Person shall mean any individual, corporation, partnership, limited liability  company, association, joint-stock company, trust, unincorporated organization, joint venture,  government or political subdivision or agency thereof, or any other entity.  PNC shall mean PNC Bank, National Association, its successors and assigns.  Potential Default shall mean any event or condition that constitutes an Event of  Default or that, with the giving of any notice, the passage of time, or both, would be an Event of  Default.  Prime Rate shall mean the interest rate per annum announced from time to time by  the Administrative Agent at its Principal Office as its then prime rate, which rate may not be the  lowest or most favorable rate then being charged to commercial borrowers or others by the  Administrative Agent and may not be tied to any external rate of interest or index.  Any change in  the Prime Rate shall take effect at the opening of business on the day such change is announced.  Principal Office shall mean the main banking office of the Administrative Agent in  Pittsburgh, Pennsylvania.  PTE shall mean a prohibited transaction class exemption issued by the U.S.   Department of Labor, as any such exemption may be amended from time to time.  PUCO shall mean the Public Utilities Commission of Ohio.  QFC shall have the meaning specified in Section 11.16(c) [Acknowledgment  Regarding Any Supported QFCs].  QFC Credit Support shall have the meaning specified in Section 11.16(a)  [Acknowledgment Regarding Any Supported QFCs].  Ratable Share shall mean the proportion that a Lender’s Commitment (excluding  the Swing Loan Commitment) bears to the Commitments (excluding the Swing Loan  Commitment) of all of the Lenders.  If the Commitments have terminated or expired, the Ratable  

 

  24  165778087  Shares shall be determined based upon the Commitments (excluding the Swing Loan  Commitment) most recently in effect, giving effect to any assignments.  Rating Agency shall have the meaning specified in Schedule 1.1(A).  Ratings shall have the meaning specified in Schedule 1.1(A).  Recipient shall mean (i) the Administrative Agent, (ii) any Lender and (iii) the  Issuing Lender, as applicable.  Redeemable Stock shall mean, with respect to any Person, any Equity Interests of  such Person that (a) is by its terms subject to mandatory redemption, in whole or in part, pursuant  to a sinking fund, scheduled redemption or similar provisions, at any time prior to the Expiration  Date; or (b) otherwise is required to be repurchased or retired on a scheduled date or dates, upon  the occurrence of any event or circumstance, at the option of the holder or holders thereof, or  otherwise, at any time prior to the Expiration Date, other than any such repurchase or retirement  occasioned by a “change of control” or similar event.  Register shall have the meaning specified in Section 11.8(c) [Successors and  Assigns].  Reimbursement Obligation shall have the meaning specified in Section 2.12(e)  [Disbursements, Reimbursement].  Related Parties shall mean, with respect to any Person, such Person’s Affiliates and  the partners, directors, officers, employees, agents and advisors of such Person and of such  Person’s Affiliates.  Relevant Governmental Body shall have the meaning specified in Section 4.4(d)  [Benchmark Replacement Setting].  Reportable Event means any of the events set forth in Section 4043(c) of ERISA,  other than events for which the 30 day notice period has been waived under ERISA or applicable  regulations.  Required Lenders shall mean Lenders (other than any Defaulting Lender) having  more than 50% of the aggregate amount of the Revolving Credit Commitments of the Lenders  (excluding any Defaulting Lender) or, after the termination of the Revolving Credit Commitments,  the outstanding Revolving Credit Loans and Ratable Share of Letter of Credit Obligations of the  Lenders (excluding any Defaulting Lender).  Required Share shall have the meaning assigned to such term in Section 5.11  [Settlement Date Procedures].  Resolution Authority means an EEA Resolution Authority or, with respect to any  UK Financial Institution, a UK Resolution Authority.  

 

  25  165778087  Revolving Credit Commitment shall mean, as to any Lender at any time, the amount  initially set forth opposite its name on Schedule 1.1(B) in the column labeled “Revolving Credit  Commitment,” as such Commitment is thereafter assigned or modified and Revolving Credit  Commitments shall mean the aggregate Revolving Credit Commitments of all of the Lenders.  Revolving Credit Loans shall mean collectively and Revolving Credit Loan shall  mean separately all Revolving Credit Loans or any Revolving Credit Loan made by the Lenders  or one of the Lenders to the Borrower pursuant to Section 2.1(a) [Revolving Credit Loans] or  2.10(c) [Disbursements, Reimbursement].  Revolving Facility Usage shall mean at any time the sum of the outstanding  Revolving Credit Loans, the outstanding Swing Loans, and the Letter of Credit Obligations.  S&P shall have the meaning set forth in the pricing grid on Schedule 1.1(A).  S&P Rating shall have the meaning set forth in the pricing grid on Schedule 1.1(A).  Sanction(s) shall mean any sanction administered or enforced by OFAC, the U.S.  Department of State, the United Nations Security Council, the European Union, His Majesty’s  Treasury (“HMT”) or other relevant sanctions authority.  SEC shall mean the Securities and Exchange Commission, or any governmental  authority succeeding to any of its principal functions.  Settlement Date shall mean the Business Day on which the Administrative Agent  elects to effect settlement pursuant Section 5.11 [Settlement Date Procedures].  SOFR shall mean, for any day, a rate equal to the secured overnight financing rate  as administered by the Federal Reserve Bank of New York (or a successor administrator of the  secured overnight financing rate).   SOFR Adjustment shall mean ten (10) basis points (0.10%).  SOFR Determination Date shall have the meaning specified in the defined term  “Daily Simple SOFR.”  SOFR Floor shall mean a rate of interest per annum equal to zero basis points  (0.00%).  SOFR Rate Day shall have the meaning specified in the defined term “Daily Simple  SOFR.”  SOFR Reserve Percentage shall mean, for any day, the maximum effective  percentage in effect on such day, if any, as prescribed by the Board of Governors of the Federal  Reserve System (or any successor) for determining the reserve requirements (including, without  limitation, supplemental, marginal and emergency reserve requirements) with respect to SOFR  funding.  

 

  26  165778087  Subsidiary of any Person at any time shall mean any corporation, trust, partnership,  any limited liability company or other business entity (i) of which more than 50% of the  outstanding voting securities or other interests normally entitled to vote for the election of one or  more directors or trustees (regardless of any contingency which does or may suspend or dilute the  voting rights) is at such time owned directly or indirectly by such Person or one or more of such  Person’s Subsidiaries, or (ii) which is controlled or capable of being controlled by such Person or  one or more of such Person’s Subsidiaries.  Substantial Portion shall mean, with respect to the property of the Borrower and its  Subsidiaries, property that (a) represents more than 20% of the Consolidated Tangible Assets of  the Borrower and its Subsidiaries as would be shown in the consolidated financial statements of  the Borrower and its Subsidiaries as at the beginning of the twelve-month period ending with the  month in which such determination is made or (b) is responsible for more than 20% of the  consolidated net sales or of the Consolidated EBITDA of the Borrower and its Subsidiaries as  reflected in the financial statements referred to in clause (a) above.  Supported QFC shall have the meaning specified in Section 11.16(a)  [Acknowledgment Regarding Any Supported QFCs].  Swap Contract shall mean (a) any and all rate swap transactions, basis swaps, credit  derivative transactions, forward rate transactions, commodity swaps, commodity options, forward  commodity contracts, equity or equity index swaps or options, bond or bond price or bond index  swaps or options or forward bond or forward bond price or forward bond index transactions,  interest rate options, forward foreign exchange transactions, cap transactions, floor transactions,  collar transactions, currency swap transactions, cross-currency rate swap transactions, currency  options, spot contracts, or any other similar transactions or any combination of any of the foregoing  (including any options to enter into any of the foregoing), whether or not any such transaction is  governed by or subject to any master agreement, and (b) any and all transactions of any kind, and  the related confirmations, which are subject to the terms and conditions of, or governed by, any  form of master agreement published by the International Swaps and Derivatives Association, Inc.,  any International Foreign Exchange Master Agreement, or any other master agreement (any such  master agreement, together with any related schedules, a “Master Agreement”), including any  such obligations or liabilities under any Master Agreement.  Swap Termination Value shall mean, in respect of any one or more Swap Contracts,  after taking into account the effect of any legally enforceable netting agreement relating to such  Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out  and termination value(s) determined in accordance therewith, such termination value(s), and (b)  for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to- market value(s) for such Swap Contracts, as determined based upon one or more mid-market or  other readily available quotations provided by any recognized dealer in such Swap Contracts  (which may include a Lender or any Affiliate of a Lender).  Swing Loan Commitment shall mean PNC’s commitment to make Swing Loans to  the Borrower pursuant to Section 2.1(b) [Swing Loan Commitment] hereof in an aggregate  principal amount up to $25,000,000.  

 

  27  165778087  Swing Loan Lender shall mean PNC, in its capacity as a lender of Swing Loans.  Swing Loan Request shall mean a request for Swing Loans made in accordance  with Section 2.6(b) [Swing Loan Requests] hereof.  Swing Loans shall mean collectively and Swing Loan shall mean separately all  Swing Loans or any Swing Loan made by PNC to the Borrower pursuant to Section 2.1(b) [Swing  Loan Commitment] and 2.6(b) [Swing Loan Requests] hereof.  Synthetic Lease Obligation means the monetary obligation of a Person under any  lease (a) that is accounted for by the lessee as an operating lease and (b) under which the lessee is  intended to be the “owner” of the leased property for Federal income tax purposes.  Taxes shall mean all present or future taxes, levies, imposts, duties, deductions,  withholdings (including backup withholding), assessments, fees or other charges imposed by any  Governmental Authority, including any interest, additions to tax or penalties applicable thereto.  Term SOFR Administrator shall mean CME Group Benchmark Administration  Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the  Administrative Agent in its reasonable discretion).  Term SOFR Determination Date shall have the meaning specified in the defined  term “Term SOFR Rate.”  Term SOFR Rate shall mean, with respect to any amount to which the Term SOFR  Rate Option applies, for any Interest Period, the interest rate per annum determined by the  Administrative Agent by dividing (the resulting quotient rounded upwards, at the Administrative  Agent’s discretion, to the nearest 1/100th of 1%) (A) the Term SOFR Reference Rate for a tenor  comparable to such Interest Period, as such rate is published by the Term SOFR Administrator on  the day (the “Term SOFR Determination Date”) that is two (2) Business Days prior to the first day  of such Interest Period, by (B) a number equal to 1.00 minus the SOFR Reserve Percentage.  If the  Term SOFR Reference Rate for the applicable tenor has not been published or replaced with a  Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the Term SOFR  Determination Date, then the Term SOFR Reference Rate, for purposes of clause (A) in the  preceding sentence, shall be the Term SOFR Reference Rate for such tenor on the first Business  Day preceding such Term SOFR Determination Date for which such Term SOFR Reference Rate  for such tenor was published in accordance herewith, so long as such first preceding Business Day  is not more than three (3) Business Days prior to such Term SOFR Determination Date.  The Term  SOFR Rate shall be adjusted automatically without notice to the Borrower on and as of (i) the first  day of each Interest Period, and (ii) the effective date of any change in the SOFR Reserve  Percentage.  Term SOFR Rate Loan shall mean a Loan that bears interest based on Term SOFR  Rate.  Term SOFR Rate Option shall mean the option of the Borrower to have Loans bear  interest at the rate and under the terms specified in Section 4.1(a)(ii) [Revolving Credit Term  SOFR Rate Option].  

 

  28  165778087  Term SOFR Reference Rate shall mean the forward-looking term rate based on  SOFR.  UCP shall have the meaning specified in Section 11.11(a) [Governing Law].  UK Financial Institution shall mean any person subject to any BRRD Undertaking  (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by  the United Kingdom Prudential Regulation Authority) or any person subject to IFPRU 11.6 of the  FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial  Conduct Authority, which includes certain credit institutions and investment firms, and certain  affiliates of such credit institutions or investment firms.  UK Resolution Authority shall mean the Bank of England or any other public  administrative authority having responsibility for the resolution of any UK Financial Institution.  Unadjusted Benchmark Replacement shall have the meaning specified in Section  4.4(d) [Benchmark Replacement Setting].  USA Patriot Act shall mean the Uniting and Strengthening America by Providing  Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56,  as the same has been, or shall hereafter be, renewed, extended, amended or replaced.  U.S. Bank shall mean U.S. Bank, National Association, its successors and assigns.  U.S. Borrower means any Borrower that is a U.S. Person.  U.S. Government Securities Business Day shall mean any day except for (a) a  Saturday or Sunday or (b) a day on which the Securities Industry and Financial Markets  Association recommends that the fixed income departments of its members be closed for the entire  day for purposes of trading in United States government securities.  U.S. Person shall mean any Person that is a “United States Person” as defined in  Section 7701(a)(30) of the Code.  U.S. Special Regulation Regimes shall have the meaning specified in Section  11.16(a) [Acknowledgment Regarding Any Supported QFCs].  U.S. Tax Compliance Certificate shall have the meaning specified in Section 5.9(g)  [Status of Lenders].  Withholding Agent shall mean the Borrower and the Administrative Agent.  Write-Down and Conversion Powers means, (a) with respect to any EEA  Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority  from time to time under the Bail-In Legislation for the applicable EEA Member Country, which  write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b)  with respect to any UK Resolution Authority, any powers of such UK Resolution Authority under  the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK  

 

  29  165778087  Financial Institution or any contract or instrument under which that liability arises, to convert all  or part of that liability into shares, securities or obligations of that person or any other person, to  provide that any such contract or instrument is to have effect as if a right had been exercised under  it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In  Legislation that are related to or ancillary to any of those powers.  1.2 Construction.  Unless the context of this Agreement otherwise clearly requires, the  following rules of construction shall apply to this Agreement and each of the other Loan  Documents: (i) references to the plural include the singular, the plural, the part and the whole and  the words “include,” “includes” and “including” shall be deemed to be followed by the phrase  “without limitation”; (ii) the words “hereof,” “herein,” “hereunder,” “hereto” and similar terms in  this Agreement or any other Loan Document refer to this Agreement or such other Loan Document  as a whole; (iii) article, section, subsection, clause, schedule and exhibit references are to this  Agreement or other Loan Document, as the case may be, unless otherwise specified; (iv) reference  to any Person includes such Person’s successors and assigns; (v) reference to any agreement,  including this Agreement and any other Loan Document together with the schedules and exhibits  hereto or thereto, document or instrument means such agreement, document or instrument as  amended, modified, replaced, substituted for, superseded or restated; (vi) relative to the  determination of any period of time, “from” means “from and including,” “to” means “to but  excluding,” and “through” means “through and including”; (vii) the words “asset” and “property”  shall be construed to have the same meaning and effect and to refer to any and all tangible and  intangible assets and properties, including cash, securities, accounts and contract rights, (viii)  section headings herein and in each other Loan Document are included for convenience and shall  not affect the interpretation of this Agreement or such Loan Document, and (ix) unless otherwise  specified, all references herein to times of day shall be references to Eastern Time (Standard or  Daylight Savings, as applicable).  1.3 Accounting Principles.  Except as otherwise provided in this Agreement, all  computations and determinations as to accounting or financial matters and all financial statements  to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP  (including principles of consolidation where appropriate), and all accounting or financial terms  shall have the meanings ascribed to such terms by GAAP; provided, however, that all accounting  terms used in Section 8.2 [Negative Covenants] and all defined terms used in the definition of any  accounting term used in Section 8.2 [Negative Covenants] shall have the meaning given to such  terms (and defined terms) under GAAP as in effect on the date hereof applied on a basis consistent  with those used in preparing the Audited Financial Statements.  In the event of any change after  the date hereof in GAAP, and if such change would affect the computation of any of the financial  covenants set forth in Section 8.2 [Negative Covenants] (including without limitation,  reclassification of power purchase agreements or operating leases such that they are included  within Consolidated Total Debt and the related financial covenants), then the parties hereto agree  to endeavor, in good faith, to agree upon an amendment to this Agreement that would adjust such  financial covenants in a manner that would preserve the original intent thereof, but would allow  compliance therewith to be determined in accordance with the Borrower’s financial statements at  that time, provided that, until so amended such financial covenants shall continue to be computed  in accordance with GAAP prior to such change therein.  

 

  30  165778087  1.4 Benchmark Replacement Notification.  Section 4.4(d) [Benchmark Replacement  Setting] of this Agreement provides a mechanism for determining an alternative rate of interest in  the event that the Term SOFR Rate or the Daily SOFR is no longer available or in certain other  circumstances. The Administrative Agent does not warrant or accept any responsibility for and  shall not have any liability with respect to, the administration, submission or any other matter  related to the Term SOFR Rate or the Daily SOFR or with respect to any alternative or successor  rate thereto, or replacement rate therefor.  2. REVOLVING CREDIT AND SWING LOAN FACILITIES  2.1 Revolving Credit Commitments.  (a) Revolving Credit Loans.  Subject to the terms and conditions hereof and  relying upon the representations and warranties herein set forth, each Lender severally agrees to  make Revolving Credit Loans to the Borrower at any time or from time to time on or after the date  hereof to the Expiration Date; provided that after giving effect to each such Loan (i) the aggregate  amount of the Revolving Credit Loans from such Lender shall not exceed such Lender’s Revolving  Credit Commitment minus such Lender’s Ratable Share of the outstanding Swing Loans and Letter  of Credit Obligations, and (ii) the Revolving Facility Usage shall not exceed the Revolving Credit  Commitments.  Within such limits of time and amount and subject to the other provisions of this  Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.  (b) Swing Loan Commitment.  Subject to the terms and conditions hereof and  relying upon the representations and warranties herein set forth, and in order to facilitate loans and  repayments between Settlement Dates, PNC shall make swing loans (the “Swing Loans”) to the  Borrower at any time or from time to time after the date hereof to, but not including, the Expiration  Date, in an aggregate principal amount up to but not in excess of the Swing Loan Commitment,  provided that after giving effect to such Loan, (i) the aggregate amount of Revolving Credit Loans  from such Lender shall not exceed such Lender’s Revolving Credit Commitment minus such  Lender’s Ratable Share of outstanding Swing Loans and the Letter of Credit Obligations and (ii)  the Revolving Facility Usage shall not exceed the Revolving Credit Commitments.  Within such  limits of time and amount and subject to the other provisions of this Agreement, the Borrower may  borrow, repay and reborrow pursuant to this Section 2.1(b).  2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans.  Each  Lender shall be obligated to participate in each request for Revolving Credit Loans pursuant to  Section 2.6 [Revolving Credit Loan Requests; Conversions and Renewals; Swing Loan Requests]  in accordance with its Ratable Share.  The aggregate of each Lender’s Revolving Credit Loans  outstanding hereunder to the Borrower at any time shall never exceed its Revolving Credit  Commitment minus its Ratable Share of the outstanding Swing Loans and Letter of Credit  Obligations.  The obligations of each Lender hereunder are several.  The failure of any Lender to  perform its obligations hereunder shall not affect the Obligations of the Borrower to any other  party nor shall any other party be liable for the failure of such Lender to perform its obligations  hereunder.  The Lenders shall have no obligation to make Revolving Credit Loans hereunder on  or after the Expiration Date.  2.3 [Reserved].  

 

  31  165778087  2.4 [Reserved].  2.5 Commitment Fees.  Accruing from the date hereof until the Expiration Date, the  Borrower agrees to pay to the Administrative Agent for the account of each Lender according to  its Ratable Share, a nonrefundable commitment fee (the “Commitment Fee”) equal to the  Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366 days, as the case  may be, and actual days elapsed) multiplied by the actual daily difference between the amount of  (i) the Revolving Credit Commitments (for purposes of this computation, PNC’s Swing Loans  shall be deemed to be borrowed amounts under its Revolving Credit Commitment) and (ii) the  Revolving Facility Usage; provided, however, that any Commitment Fee accrued with respect to  the Revolving Credit Commitment of a Defaulting Lender during the period prior to the time such  Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower  so long as such Lender shall be a Defaulting Lender except to the extent that such Commitment  Fee shall otherwise have been due and payable by the Borrower prior to such time; and provided  further that no Commitment Fee shall accrue with respect to the Revolving Credit Commitment of  a Defaulting Lender so long as such Lender shall be a Defaulting Lender.  Subject to the proviso  in the directly preceding sentence, all Commitment Fees shall be payable in arrears on each  Payment Date.  2.6 Revolving Credit Loan Requests; Loan Conversions and Renewals; Swing Loan  Requests.  (a) Revolving Credit Loan Requests; Loan Conversions and Renewals.  Except  as otherwise provided herein, the Borrower may from time to time prior to the Expiration Date  request the Lenders to make Revolving Credit Loans, or renew or convert the Interest Rate Option  applicable to existing Revolving Credit Loans, by delivering to the Administrative Agent, not later  than 11:00 a.m.;  (i) three (3) Business Days prior to the proposed Borrowing Date with  respect to (1) the making of Revolving Credit Loans to which the Term SOFR Rate Option applies  or (2) the conversion to or the renewal of the Term SOFR Rate Option for any Revolving Credit  Loans; and   (ii) the same Business Day of the proposed Borrowing Date with respect  to the making of a Revolving Credit Loan to which the Base Rate Option applies, or the last day  of the preceding Interest Period with respect to the conversion to the Base Rate Option for any  Revolving Credit Loan,   in each case, a duly completed request therefor substantially in the form of Exhibit 2.6(A) or a  request by telephone immediately confirmed in writing by letter, facsimile, email or telex in such  form (each, a “Loan Request”), it being understood that the Administrative Agent may rely on  the authority of any individual making such a telephonic request without the necessity of receipt  of such written confirmation.  Each Loan Request shall be irrevocable and shall specify the Interest  Rate Option and the aggregate amount of the proposed Revolving Credit Loans comprising each  Borrowing Tranche, and, if applicable, the Interest Period, which amounts shall be in (x) integral  multiples of $100,000 and not less than $500,000 for each Borrowing Tranche under the Term  SOFR Rate Option, and (y) integral multiples of $100,000 and not less than $500,000 for each  

 

  32  165778087  Borrowing Tranche under the Base Rate Option.  In the case of the renewal of a Term SOFR Rate  Option at the end of an Interest Period, the first day of the new Interest Period shall be the last day  of the preceding Interest Period, without duplication in payment of interest for such day.  (b) Swing Loan Requests.  Except as otherwise provided herein, the Borrower  may from time to time prior to the Expiration Date request PNC to make Swing Loans by delivery  to PNC not later than 12:00 noon on the proposed Borrowing Date of a duly completed request  therefor substantially in the form of Exhibit 2.6(B) hereto or a request by telephone immediately  confirmed in writing by letter, facsimile or telex (each, a “Swing Loan Request”), it being  understood that the Administrative Agent may rely on the authority of any individual making such  a telephonic request without the necessity of receipt of such written confirmation.  Each Swing  Loan Request shall be irrevocable and shall specify the proposed Borrowing Date and the principal  amount of such Swing Loan, which shall be not less than $100,000.  2.7 Making Revolving Credit Loans and Swing Loans; Presumptions by the  Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans.  (a) Making Revolving Credit Loans.  The Administrative Agent shall, promptly  after receipt by it of a Loan Request pursuant to Section 2.6 [Revolving Credit Loan Requests;  Loan Conversions and Renewals; Swing Loan Requests], notify the applicable Lenders of its  receipt of such Loan Request specifying the information provided by the Borrower and the  apportionment among the Lenders of the requested Revolving Credit Loans as determined by the  Administrative Agent in accordance with Section 2.2 [Nature of Lenders’ Obligations with  Respect to Revolving Credit Loans].  Each Lender shall remit its apportioned share (as provided  to it by the Administrative Agent) of the principal amount of each Revolving Credit Loan to the  Administrative Agent such that the Administrative Agent is able to, and the Administrative Agent  shall, to the extent the Lenders have made funds available to it for such purpose and subject to  Section 7.2 [Each Loan or Letter of Credit], fund such Revolving Credit Loans to the Borrower in  U.S.  Dollars and immediately available funds at the Principal Office prior to 2:00 p.m., on the  applicable Borrowing Date; provided that if any Lender fails to remit such funds to the  Administrative Agent in a timely manner, the Administrative Agent may elect in its sole discretion  to fund with its own funds the Revolving Credit Loans of such Lender on such Borrowing Date,  and such Lender shall be subject to the repayment obligation in Section 2.7(b) [Presumptions by  the Administrative Agent].  (b) Presumptions by the Administrative Agent.  Unless the Administrative  Agent shall have received notice from a Lender prior to the proposed date of any Loan that such  Lender will not make available to the Administrative Agent such Lender’s share of such Loan, the  Administrative Agent may assume that such Lender has made such share available on such date in  accordance with Section 2.7(a) [Making Revolving Credit Loans] and may, in reliance upon such  assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender  has not in fact made its share of the applicable Loan available to the Administrative Agent, then  the applicable Lender and the Borrower severally agree to pay to the Administrative Agent  forthwith on demand such corresponding amount with interest thereon, for each day from and  including the date such amount is made available to the Borrower to but excluding the date of  payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender,  the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent  

 

  33  165778087  in accordance with banking industry rules on interbank compensation and (ii) in the case of a  payment to be made by the Borrower, the interest rate applicable to Loans under the Base Rate  Option.  If such Lender pays its share of the applicable Loan to the Administrative Agent, then the  amount so paid shall constitute such Lender’s Loan.  Any payment by the Borrower shall be  without prejudice to any claim the Borrower may have against a Lender that shall have failed to  make such payment to the Administrative Agent.  (c) Making Swing Loans.  PNC shall, after receipt by it of a Swing Loan  Request pursuant to Section 2.6(b), [Swing Loan Requests] fund such Swing Loan to the Borrower  in U.S.  Dollars and immediately available funds at the Principal Office prior to 4:00 p.m.  on the  Borrowing Date.  (d) Repayment of Revolving Credit Loans.  The Borrower shall repay the  outstanding principal amount of all Revolving Credit Loans together with all outstanding interest  thereon on the Expiration Date.  (e) Borrowings to Repay Swing Loans.  PNC may, at its option, exercisable at  any time for any reason whatsoever, demand repayment of any or all of the outstanding Swing  Loans, and each Lender shall make a Revolving Credit Loan in an amount equal to such Lender’s  Ratable Share of the aggregate principal amount of the outstanding Swing Loans with respect to  which payment is demanded, plus, if PNC so requests, accrued interest thereon, provided that no  Lender shall be obligated in any event to make Revolving Credit Loans in excess of its Revolving  Credit Commitment minus its Ratable Share of Letter of Credit Obligations and minus its Ratable  Share of any Swing Loans not so being repaid.  Revolving Credit Loans made pursuant to the  preceding sentence shall bear interest at the Base Rate Option and shall be deemed to have been  properly requested in accordance with Section 2.6(a) [Revolving Credit Loan Requests; Loan  Conversions and Renewals] without regard to any of the requirements of that provision.  PNC shall  provide notice to the Lenders (which may be telephonic or written notice by letter, facsimile or  telex) that such Revolving Credit Loans are to be made under this Section 2.7(e) and of the  apportionment among the Lenders, and the Lenders shall be unconditionally obligated to fund such  Revolving Credit Loans (whether or not the conditions specified in Section 2.6(a) [Revolving  Credit Loan Requests; Loan Conversions and Renewals] are then satisfied) by the time PNC so  requests, which shall not be earlier than 3:00 p.m. on the Business Day next after the date the  Lenders receive such notice from PNC.  2.8 Evidence of Debt.  The Obligation of the Borrower to repay the aggregate unpaid  principal amount of the Revolving Credit Loans and Swing Loans made to it by each Lender,  together with interest thereon, shall be evidenced by one or more accounts or records maintained  by such Lender in the ordinary course of business. The Administrative Agent shall maintain the  Register in accordance with Section 11.8(c). The accounts and records maintained by each Lender  shall be conclusive absent manifest error of the amount of Revolving Credit Loans and Swing  Loans made by each Lender to the Borrower and the interest and payments thereon.  Any failure  to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of  the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of  any conflict between the accounts and records maintained by any Lender and the Register, the  Register shall control in the absence of manifest error.  Upon the request of any Lender made  through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through  

 

  34  165778087  the Administrative Agent) a Note, which shall evidence such Lender’s Revolving Credit Loans  and Swing Loans, as applicable, in addition to such accounts or records. Each Lender may attach  schedules to its Note and endorse thereon the date, Interest Rate Option, amount and maturity of  its Loans and payments with respect thereto.  2.9 Use of Proceeds.  The Borrower shall use the proceeds of the Revolving Credit  Loans and Letters of Credit (i) to finance capital expenditures, (ii) to refinance Indebtedness under  the Existing Credit Agreement, (iii) to support working capital, and (iv) for general corporate  purposes.  2.10 Defaulting Lenders.  Notwithstanding any provision of this Agreement to the  contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply  for so long as such Lender is a Defaulting Lender:  (a) fees shall cease to accrue on the unfunded portion of the Commitment of  such Defaulting Lender pursuant to Section 2.5 [Commitment Fees];  (b) the Commitment and outstanding Loans of such Defaulting Lender shall not  be included in determining whether the Required Lenders have taken or may take any action  hereunder (including any consent to any amendment, waiver or other modification pursuant to  Section 11.1 [Modifications, Amendments or Waivers]); provided, that this clause (b) shall not  apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification  requiring the consent of such Lender or each Lender directly affected thereby;  (c) if any Swing Loans are outstanding or any Letter of Credit Obligations exist  at the time such Lender becomes a Defaulting Lender, then:  (i) all or any part of the outstanding Swing Loans and Letter of Credit  Obligations of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in  accordance with their respective Ratable Shares but only to the extent that (x) the Revolving  Facility Usage does not exceed the total of all non-Defaulting Lenders’ Revolving Credit  Commitments, and (y) no Potential Default or Event of Default has occurred and is continuing at  such time;  (ii) if the reallocation described in clause (i) above cannot, or can only  partially, be effected, the Borrower shall within one Business Day following notice by the  Administrative Agent (x) first, prepay such outstanding Swing Loans, and (y) second, cash  collateralize for the benefit of the Issuing Lender the Borrower’s obligations corresponding to such  Defaulting Lender’s Letter of Credit Obligations (after giving effect to any partial reallocation  pursuant to clause (i) above) in a deposit account held at the Administrative Agent for so long as  such Letter of Credit Obligations are outstanding;  (iii) if the Borrower cash collateralizes any portion of such Defaulting  Lender’s Letter of Credit Obligations pursuant to clause (ii) above, the Borrower shall not be  required to pay any fees to such Defaulting Lender pursuant to Section 2.12(d) [Letter of Credit  Fees] with respect to such Defaulting Lender’s Letter of Credit Obligations during the period such  Defaulting Lender’s Letter of Credit Obligations are cash collateralized;  

 

  35  165778087  (iv) if the Letter of Credit Obligations of the non-Defaulting Lenders are  reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Section  2.12(d) [Letter of Credit Fees] shall be adjusted in accordance with such non-Defaulting Lenders’  Ratable Share; and  (v) if all or any portion of such Defaulting Lender’s Letter of Credit  Obligations are neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then,  without prejudice to any rights or remedies of the Issuing Lender or any other Lender hereunder,  all Letter of Credit Fees payable under Section 2.12(d) [Letter of Credit Fees] with respect to such  Defaulting Lender’s Letter of Credit Obligations shall be payable to the Issuing Lender (and not  to such Defaulting Lender) until and to the extent that such Letter of Credit Obligations are  reallocated and/or cash collateralized; and  (vi) so long as such Lender is a Defaulting Lender, PNC shall not be  required to fund any Swing Loans and the Issuing Lender shall not be required to issue, amend or  increase any Letter of Credit, unless the Issuing Lender is satisfied that the related exposure and  the Defaulting Lender’s then outstanding Letter of Credit Obligations will be 100% covered by  the Revolving Credit Commitments of the non-Defaulting Lenders and/or cash collateral will be  provided by the Borrower in accordance with this Section 2.10(c), and participating interests in  any newly made Swing Loan or any newly issued or increased Letter of Credit shall be allocated  among non-Defaulting Lenders in a manner consistent with Section 2.10(c)(i) (and such Defaulting  Lender shall not participate therein).  If (i) a Bankruptcy Event with respect to a parent company of any Lender shall  occur following the date hereof and for so long as such event shall continue, or (ii) PNC or the  Issuing Lender has a good faith belief that any Lender has defaulted in fulfilling its obligations  under one or more other agreements in which such Lender commits to extend credit, PNC shall  not be required to fund any Swing Loan and the Issuing Lender shall not be required to issue,  amend or increase any Letter of Credit, unless PNC or the Issuing Lender, as the case may be, shall  have entered into arrangements with the Borrower or such Lender, satisfactory to PNC or the  Issuing Lender, as the case may be, to defease any risk to it in respect of such Lender hereunder.  In the event that the Administrative Agent, the Borrower, PNC and the Issuing  Lender agree in writing that a Defaulting Lender has adequately remedied all matters that caused  such Lender to be a Defaulting Lender, then the Administrative Agent will so notify the parties  hereto, and the Ratable Share of the Swing Loans and Letter of Credit Obligations of the Lenders  shall be readjusted to reflect the inclusion of such Lender’s Commitment, and on such date such  Lender shall purchase at par such of the Loans of the other Lenders (other than Swing Loans) as  the Administrative Agent shall determine may be necessary in order for such Lender to hold such  Loans in accordance with its Ratable Share.  2.11 Reduction of Revolving Credit Commitments.  The Borrower shall have the right  at any time after the Closing Date upon five (5) days’ prior written notice to the Administrative  Agent to permanently reduce (ratably among the Lenders in proportion to their Ratable Shares)  the Revolving Credit Commitments, in a minimum amount of $5,000,000 and whole multiples of  $1,000,000, or to terminate completely the Revolving Credit Commitments, without penalty or  premium except as hereinafter set forth; provided that any such reduction or termination shall be  

 

  36  165778087  accompanied by prepayment of the Notes, together with outstanding Commitment Fees, and the  full amount of interest accrued on the principal sum to be prepaid (and all amounts referred to in  Section 5.10 [Indemnity] hereof) to the extent necessary to cause the aggregate Revolving Facility  Usage after giving effect to such prepayments to be equal to or less than the Revolving Credit  Commitments as so reduced or terminated.  Any notice to reduce the Revolving Credit  Commitments under this Section 2.11 shall be irrevocable.  2.12 Letter of Credit Subfacility.  (a) Issuance of Letters of Credit.  Borrower may at any time prior to the  Expiration Date request the issuance of a standby or trade letter of credit (each a “Letter of  Credit”) on its behalf, or the amendment or extension of an existing Letter of Credit, by delivering  to the Issuing Lender (with a copy to the Administrative Agent) a completed application and  agreement for letters of credit, or request for such amendment or extension, as applicable, in such  form as the Issuing Lender may specify from time to time by no later than 10:00 a.m.  at least three  (3) Business Days, or such shorter period as may be agreed to by the Issuing Lender, in advance  of the proposed date of issuance.  The Borrower shall authorize and direct the Issuing Lender to  name the Borrower as the “Applicant” or “Account Party” of each Letter of Credit.  Promptly after  receipt of any letter of credit application, the Issuing Lender shall confirm with the Administrative  Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter  of Credit application and if not, such Issuing Lender will provide Administrative Agent with a  copy thereof.  (b) Unless the Issuing Lender has received notice from any Lender,  Administrative Agent or the Borrower, at least one day prior to the requested date of issuance,  amendment or extension of the applicable Letter of Credit, that one or more applicable conditions  in Section 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied, then, subject  to the terms and conditions hereof and in reliance on the agreements of the other Lenders set forth  in this Section 2.12 the Issuing Lender or any of the Issuing Lender’s Affiliates will issue a Letter  of Credit or agree to such amendment or extension, provided that each Letter of Credit shall (A)  have a maximum maturity of twelve (12) months from the date of issuance, and (B) in no event  expire later than the Expiration Date and provided further that in no event shall (i) the Letter of  Credit Obligations exceed, at any one time, $75,000,000 (the “Letter of Credit Sublimit”) or (ii)  the aggregate amount of outstanding Revolving Credit Loans, the Letter of Credit Obligations and  the outstanding Swing Loans exceed, at any one time, the aggregate Revolving Credit  Commitments of the Lenders.  Each request by the Borrower for the issuance, amendment or  extension of a Letter of Credit shall be deemed to be a representation by the Borrower that it shall  be in compliance with the preceding sentence and with Section 7 [Conditions of Lending and  Issuance of Letters of Credit] after giving effect to the requested issuance, amendment or extension  of such Letter of Credit.  Promptly after its delivery of any Letter of Credit or any amendment to  a Letter of Credit to the beneficiary thereof, the applicable Issuing Lender will also deliver to  Borrower and Administrative Agent a true and complete copy of such Letter of Credit or  amendment.  (c) Notwithstanding Section 2.12(b), the Issuing Lender shall not be under any  obligation to issue any Letter of Credit if (i) any order, judgment or decree of any Governmental  Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Lender from  

 

  37  165778087  issuing the Letter of Credit, or any Law applicable to the Issuing Lender or any request or directive  (whether or not having the force of law) from any Governmental Authority with jurisdiction over  the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance of  letters of credit generally or the Letter of Credit in particular or shall impose upon the Issuing  Lender with respect to the Letter of Credit any restriction, reserve or capital requirement (for which  the Issuing Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or  shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not  applicable on the Closing Date and which the Issuing Lender in good faith deems material to it, or  (ii) the issuance of the Letter of Credit would violate one or more policies of the Issuing Lender  applicable to letters of credit generally.  Notwithstanding any other provision hereof, no Issuing Lender shall be required to issue  any Letter of Credit, if any Lender is at such time a Defaulting Lender hereunder, unless such  Issuing Lender has entered into satisfactory arrangements with the Borrower or such Defaulting  Lender to eliminate the Issuing Lender’s risk with respect to such Defaulting Lender (it being  understood that the Issuing Lender would consider the Borrower or the Defaulting Lender  providing cash collateral to the Administrative Agent, for the benefit of the Issuing Lender, to  secure the Defaulting Lender’s Ratable Share of the Letter of Credit, a satisfactory arrangement).  (d) Letter of Credit Fees.  The Borrower shall pay (i) to the Administrative  Agent for the ratable account of the Lenders a fee (the “Letter of Credit Fee”) equal to the  Applicable Letter of Credit Fee Rate, and (ii) to the Issuing Lender for its own account a fronting  fee equal to one eighth of one percent (0.125%) per annum (in each case computed on the basis of  a year of 360 days and actual days elapsed), which fees shall be computed on the daily average  Letter of Credit Obligations and shall be payable quarterly in arrears on each Payment Date  following issuance of each Letter of Credit.  The Borrower shall also pay to the Issuing Lender for  the Issuing Lender’s sole account the Issuing Lender’s then in effect reasonable customary fees  and administrative expenses payable with respect to the Letters of Credit as the Issuing Lender  may generally charge or incur from time to time in connection with the issuance, maintenance,  amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of  Credit.  (e) Disbursements, Reimbursement.  Immediately upon the issuance of each  Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally  agrees to, purchase from the Issuing Lender a participation in such Letter of Credit and each  drawing thereunder in an amount equal to such Lender’s Ratable Share of the maximum amount  available to be drawn under such Letter of Credit and the amount of such drawing, respectively.  (i) In the event of any request for a drawing under a Letter of Credit by  the beneficiary or transferee thereof, the Issuing Lender will promptly notify the Borrower and the  Administrative Agent thereof.  Provided that it shall have received such notice, the Borrower shall  reimburse (such obligation to reimburse the Issuing Lender shall sometimes be referred to as a  “Reimbursement Obligation”) the Issuing Lender prior to 12:00 noon on each date that an  amount is paid by the Issuing Lender under any Letter of Credit (each such date, a “Drawing  Date”) by paying to the Administrative Agent for the account of the Issuing Lender an amount  equal to the amount so paid by the Issuing Lender.  In the event the Borrower fails to reimburse  the Issuing Lender (through the Administrative Agent) for the full amount of any drawing under  

 

  38  165778087  any Letter of Credit by 12:00 noon on the Drawing Date, the Administrative Agent will promptly  notify each Lender thereof, and the Borrower shall be deemed to have requested that Revolving  Credit Loans be made by the Lenders under the Base Rate Option to be disbursed on the Drawing  Date under such Letter of Credit, subject to the amount of the unutilized portion of the Revolving  Credit Commitment and subject to the conditions set forth in Section 7.2 [Each Loan or Letter of  Credit] other than any notice requirements.  Any notice given by the Administrative Agent or  Issuing Lender pursuant to this Section (i) may be oral if immediately confirmed in writing;  provided that the lack of such an immediate confirmation shall not affect the conclusiveness or  binding effect of such notice.  (ii) Each Lender shall upon any notice pursuant to Section (i) make  available to the Administrative Agent for the account of the Issuing Lender an amount in  immediately available funds equal to its Ratable Share of the amount of the drawing, whereupon  the participating Lenders shall (subject to this Section 2.12(e) [Disbursement; Reimbursement])  each be deemed to have made a Revolving Credit Loan under the Base Rate Option to the Borrower  in that amount.  If any Lender so notified fails to make available to the Administrative Agent for  the account of the Issuing Lender the amount of such Lender’s Ratable Share of such amount by  no later than 2:00 p.m.  on the Drawing Date, then interest shall accrue on such Lender’s obligation  to make such payment, from the Drawing Date to the date on which such Lender makes such  payment (i) at a rate per annum equal to the Federal Funds Effective Rate during the first three (3)  days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Loans  under the Base Rate Option on and after the fourth day following the Drawing Date.  The  Administrative Agent and the Issuing Lender will promptly give notice (as described in Section  (i) above) of the occurrence of the Drawing Date, but failure of the Administrative Agent or the  Issuing Lender to give any such notice on the Drawing Date or in sufficient time to enable any  Lender to effect such payment on such date shall not relieve such Lender from its obligation under  this Section (ii).  (iii) With respect to any unreimbursed drawing that is not converted into  Revolving Credit Loans under the Base Rate Option to the Borrower in whole or in part as  contemplated by Section (i), because of the Borrower’s failure to satisfy the conditions set forth in  Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements, or for any other  reason, the Borrower shall be deemed to have incurred from the Issuing Lender a borrowing (each  a “Letter of Credit Borrowing”) in the amount of such drawing.  Such Letter of Credit Borrowing  shall be due and payable on demand (together with interest) and shall bear interest at the rate per  annum applicable to the Revolving Credit Loans under the Base Rate Option.  Each Lender’s  payment to the Administrative Agent for the account of the Issuing Lender pursuant to this Section  2.12(e) [Disbursements, Reimbursement] shall be deemed to be a payment in respect of its  participation in such Letter of Credit Borrowing (each a “Participation Advance”) from such  Lender in satisfaction of its participation obligation under this Section 2.12(e).  (f) Repayment of Participation Advances.  (i) Upon (and only upon) receipt by the Administrative Agent for the  account of the Issuing Lender of immediately available funds from the Borrower (i) in  reimbursement of any payment made by the Issuing Lender under the Letter of Credit with respect  to which any Lender has made a Participation Advance to the Administrative Agent, or (ii) in  

 

  39  165778087  payment of interest on such a payment made by the Issuing Lender under such a Letter of Credit,  the Administrative Agent on behalf of the Issuing Lender will pay to each Lender, in the same  funds as those received by the Administrative Agent, the amount of such Lender’s Ratable Share  of such funds, except the Administrative Agent shall retain for the account of the Issuing Lender  the amount of the Ratable Share of such funds of any Lender that did not make a Participation  Advance in respect of such payment by the Issuing Lender.  (ii) If the Administrative Agent is required at any time to return to the  Borrower, or to a trustee, receiver, liquidator, custodian, or any official in any Insolvency  Proceeding, any portion of any payment made by the Borrower to the Administrative Agent for  the account of the Issuing Lender pursuant to this Section in reimbursement of a payment made  under the Letter of Credit or interest or fee thereon, each Lender shall, on demand of the  Administrative Agent, forthwith return to the Administrative Agent for the account of the Issuing  Lender the amount of its Ratable Share of any amounts so returned by the Administrative Agent  plus interest thereon from the date such demand is made to the date such amounts are returned by  such Lender to the Administrative Agent, at a rate per annum equal to the Federal Funds Effective  Rate in effect from time to time.  (g) Documentation.  The Borrower agrees to be bound by the terms of the  Issuing Lender’s application and agreement for letters of credit and the Issuing Lender’s written  regulations and customary practices relating to letters of credit, though such interpretation may be  different from Borrower’s own.  In the event of a conflict between such application or agreement  and this Agreement, this Agreement shall govern.  It is understood and agreed that, except in the  case of gross negligence, willful misconduct or bad faith, the Issuing Lender shall not be liable for  any error, negligence and/or mistakes, whether of omission or commission, in following the  Borrower’s instructions or those contained in the Letters of Credit or any modifications,  amendments or supplements thereto.  (h) Determinations to Honor Drawing Requests.  In determining whether to  honor any request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing  Lender shall be responsible only to determine that the documents and certificates required to be  delivered under such Letter of Credit have been delivered and that they comply on their face with  the requirements of such Letter of Credit.  (i) Nature of Participation and Reimbursement Obligations.  Each Lender’s  obligation in accordance with this Agreement to make the Revolving Credit Loans or Participation  Advances, as contemplated by Section 2.12(e) [Disbursements, Reimbursement], as a result of a  drawing under a Letter of Credit, and the Obligations of the Borrower to reimburse the Issuing  Lender upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable, and  shall be performed strictly in accordance with the terms of this Section 2.10 under all  circumstances, including the following circumstances:  (i) any set-off, counterclaim, recoupment, defense or other right which  such Lender may have against the Issuing Lender or any of its Affiliates, the Borrower or any other  Person for any reason whatsoever, or which the Borrower may have against the Issuing Lender or  any of its Affiliates, any Lender or any other Person for any reason whatsoever;  

 

  40  165778087  (ii) the failure of the Borrower or any other Person to comply, in  connection with a Letter of Credit Borrowing, with the conditions set forth in Sections 2.1  [Revolving Credit Commitments], 2.6 [Revolving Credit Loan Requests; Loan Conversions and  Renewals; Swing Loan Requests], 2.7 [Making Revolving Credit Loans and Swing Loans; Etc.]  or 7.2 [Each Loan or Letter of Credit] or as otherwise set forth in this Agreement for the making  of a Revolving Credit Loan, it being acknowledged that such conditions are not required for the  making of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation  Advances under Section 2.12(e) [Disbursements, Reimbursement];  (iii) any lack of validity or enforceability of any Letter of Credit;  (iv) any claim of breach of warranty that might be made by the Borrower  or any Lender against any beneficiary of a Letter of Credit, or the existence of any claim, set-off,  recoupment, counterclaim, crossclaim, defense or other right which the Borrower or any Lender  may have at any time against a beneficiary, successor beneficiary any transferee or assignee of any  Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee may be  acting), the Issuing Lender or its Affiliates or any Lender or any other Person, whether in  connection with this Agreement, the transactions contemplated herein or any unrelated transaction  (including any underlying transaction between the Borrower or Subsidiaries of the Borrower and  the beneficiary for which any Letter of Credit was procured);  (v) the lack of power or authority of any signer of (or any defect in or  forgery of any signature or endorsement on) or the form of or lack of validity, sufficiency,  accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other  document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud  in connection with any Letter of Credit, or the transport of any property or provision of services  relating to a Letter of Credit, in each case even if the Issuing Lender or any of its Affiliates has  been notified thereof;  (vi) payment by the Issuing Lender or any of its Affiliates under any  Letter of Credit against presentation of a demand, draft or certificate or other document which does  not comply with the terms of such Letter of Credit;  (vii) the solvency of, or any acts or omissions by, any beneficiary of any  Letter of Credit, or any other Person having a role in any transaction or obligation relating to a  Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic  of any property or services relating to a Letter of Credit;  (viii) any failure by the Issuing Lender or any of its Affiliates to issue any  Letter of Credit in the form requested by the Borrower, unless the Issuing Lender has received  written notice from the Borrower of such failure within three Business Days after the Issuing  Lender shall have furnished the Borrower and the Administrative Agent a copy of such Letter of  Credit and such error is material and no drawing has been made thereon prior to receipt of such  notice;  (ix) any adverse change in the business, operations, properties, assets,  condition (financial or otherwise) or prospects of the Borrower or Subsidiaries of the Borrower;  

 

  41  165778087  (x) any breach of this Agreement or any other Loan Document by any  party thereto;  (xi) the occurrence or continuance of an Insolvency Proceeding with  respect to the Borrower;  (xii) the fact that an Event of Default or a Potential Default shall have  occurred and be continuing; and  (xiii) the fact that the Expiration Date shall have passed or this Agreement  or the Commitments hereunder shall have been terminated.  (j) Indemnity.  The Borrower hereby agrees to protect, indemnify, pay and save  harmless the Issuing Lender and any of its Affiliates that has issued a Letter of Credit from and  against any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments,  losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of  counsel) which the Issuing Lender or any of its Affiliates may incur or be subject to as a  consequence, direct or indirect, of the issuance of any Letter of Credit, other than as a result of (A)  the gross negligence or willful misconduct of the Issuing Lender as determined by a final non- appealable judgment of a court of competent jurisdiction or (B) the wrongful dishonor by the  Issuing Lender or any of Issuing Lender’s Affiliates of a proper demand for payment made under  any Letter of Credit, except if such dishonor resulted from any act or omission, whether rightful  or wrongful, of any present or future de jure or de facto government or Governmental Authority.  (k) Liability for Acts and Omissions.  As between the Borrower and the Issuing  Lender, or the Issuing Lender’s Affiliates, the Borrower assumes all risks of the acts and omissions  of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit.  In  furtherance and not in limitation of the foregoing, the Issuing Lender shall not be responsible for  any of the following, including any losses or damages to the Borrower or other Person or property  relating therefrom: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any  document submitted by any party in connection with the application for an issuance of any such  Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient,  inaccurate, fraudulent or forged (even if the Issuing Lender or its Affiliates shall have been notified  thereof); (ii) the validity or sufficiency of any instrument transferring or assigning or purporting  to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds  thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the  failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of  Credit may be transferred, to comply fully with any conditions required in order to draw upon such  Letter of Credit or any other claim of the Borrower against any beneficiary of such Letter of Credit,  or any such transferee, or any dispute between or among the Borrower and any beneficiary of any  Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in  transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or  not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the  transmission or otherwise of any document required in order to make a drawing under any such  Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such  Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any  consequences arising from causes beyond the control of the Issuing Lender or its Affiliates, as  

 

  42  165778087  applicable, including any act or omission of any Governmental Authority, and none of the above  shall affect or impair, or prevent the vesting of, any of the Issuing Lender’s or its Affiliates rights  or powers hereunder.  Nothing in the preceding sentence shall relieve the Issuing Lender from  liability for the Issuing Lender’s gross negligence or willful misconduct in connection with actions  or omissions described in such clauses (i) through (viii) of such sentence.  In no event shall the  Issuing Lender or its Affiliates be liable to the Borrower for any indirect, consequential, incidental,  punitive, exemplary or special damages or expenses (including without limitation attorneys’ fees),  or for any damages resulting from any change in the value of any property relating to a Letter of  Credit.  Without limiting the generality of the foregoing, the Issuing Lender and each of its  Affiliates (i) may rely on any oral or other communication believed in good faith by the Issuing  Lender or such Affiliate to have been authorized or given by or on behalf of the applicant for a  Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face  substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may  honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was  pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,  and shall be entitled to reimbursement to the same extent as if such presentation had initially been  honored, together with any interest paid by the Issuing Lender or its Affiliate; (iv) may honor any  drawing that is payable upon presentation of a statement advising negotiation or payment, upon  receipt of such statement (even if such statement indicates that a draft or other document is being  delivered separately), and shall not be liable for any failure of any such draft or other document to  arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or  negotiating bank claiming that it rightfully honored under the laws or practices of the place where  such bank is located; and (vi) may settle or adjust any claim or demand made on the Issuing Lender  or its Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a  letter of guarantee or of indemnity issued to a carrier or any similar document (each an “Order”)  and honor any drawing in connection with any Letter of Credit that is the subject of such Order,  notwithstanding that any drafts or other documents presented in connection with such Letter of  Credit fail to conform in any way with such Letter of Credit.  In furtherance and extension and not in limitation of the specific provisions set forth  above, any action taken or omitted by the Issuing Lender or its Affiliates under or in connection  with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if  taken or omitted reasonably and in good faith, shall not put the Issuing Lender or its Affiliates  under any resulting liability to the Borrower or any Lender.  (l) Issuing Lender Reporting Requirements.  Each Issuing Lender shall, on the  first Business Day of each month, provide to Administrative Agent and Borrower a schedule of  the Letters of Credit issued by it, in form and substance satisfactory to Administrative Agent,  showing the date of issuance of each Letter of Credit, the account party, the original face amount  (if any), and the expiration date of any Letter of Credit outstanding at any time during the preceding  month, and any other information relating to such Letter of Credit that the Administrative Agent  may request.  2.13 Increase in Revolving Credit Commitments.  

 

  43  165778087  (a) Increasing Lenders and New Lenders.  The Borrower may, at any time prior  to the fourth anniversary of the Closing Date, make up to four (4) separate requests that (1) the  current Lenders increase their Revolving Credit Commitments (any current Lender which elects  to increase its Revolving Credit Commitment shall be referred to as an “Increasing Lender”) or  (2) one or more new lenders (each a “New Lender”) join this Agreement and provide a Revolving  Credit Commitment hereunder, subject to the following terms and conditions:  (i) No Obligation to Increase.  No current Lender shall be obligated to  increase its Revolving Credit Commitment, and any increase in the Revolving Credit Commitment  by any current Lender shall be in the sole discretion of such current Lender.  (ii) Defaults.  There shall exist no Events of Default or Potential Default  on the effective date of such increase after giving effect to such increase.  (iii) Aggregate Revolving Credit Commitments.  After giving effect to  such increase, the total Revolving Credit Commitments shall not exceed $350,000,000, and the  aggregate amount of all such increases shall not exceed $100,000,000.  (iv) Minimum Revolving Credit Commitments.  The aggregate amount  of the new Revolving Credit Commitments provided by the New Lenders and the Increasing  Lenders shall be at least $25,000,000; and  (v) Resolutions; Opinion.  The Borrower shall deliver to the  Administrative Agent on or before the effective date of such increase the following documents in  a form reasonably acceptable to the Administrative Agent: (1) certifications of their corporate  secretaries with attached resolutions certifying that the increase in the Revolving Credit  Commitment has been approved by the Borrower, and (2) an opinion of counsel addressed to the  Administrative Agent and the Lenders addressing the authorization and execution of the Loan  Documents by, and enforceability of the Loan Documents against, the Borrower.  (vi) Notes.  The Borrower shall execute and deliver (1) to each  Increasing Lender who requests a replacement revolving credit Note in writing a replacement  revolving credit Note reflecting the new amount of such Increasing Lender’s Revolving Credit  Commitment after giving effect to the increase (and the prior Note issued to such Increasing  Lender shall be deemed to be terminated) and (2) to each New Lender a revolving credit Note  reflecting the amount of such New Lender’s Revolving Credit Commitment.  (vii) Approval of New Lenders.  Any New Lender shall be subject to the  approval of the Administrative Agent, the Issuing Lender and the Swing Loan Lender, in each case  acting in its reasonable discretion and the Borrower [Successors and Assigns].  (viii) Increasing Lenders.  Each Increasing Lender shall confirm its  agreement to increase its Revolving Credit Commitment pursuant to an acknowledgement in a  form reasonably acceptable to the Administrative Agent, signed by it and the Borrower and  delivered to the Administrative Agent at least five (5) days before the effective date of such  increase (or such later date approved by the Administrative Agent in its sole discretion).  

 

  44  165778087  (ix) New Lenders Joinder.  Each New Lender shall execute a lender  joinder in substantially the form of Exhibit 2.13 pursuant to which such New Lender shall join and  become a party to this Agreement and the other Loan Documents with a Revolving Credit  Commitment in the amount set forth in such lender joinder.  (b) Treatment of Outstanding Loans and Letters of Credit.  (i) Repayment of Outstanding Loans; Borrowing of New Loans.  On  the effective date of such increase, the Borrower shall repay all Loans then outstanding, subject to  the Borrower’s indemnity obligations under Section 5.10 [Indemnity]; provided that it may borrow  new Loans with a Borrowing Date on such date.  Each of the Lenders shall participate in any new  Loans made on or after such date in accordance with their respective Ratable Shares after giving  effect to the increase in Revolving Credit Commitments contemplated by this Section 2.13.  (ii) Outstanding Letters of Credit.  On the effective date of such  increase, each Increasing Lender and each New Lender (i) will be deemed to have purchased a  participation in each then outstanding Letter of Credit equal to its Ratable Share of such Letter of  Credit and the participation of each other Lender in such Letter of Credit shall be adjusted  accordingly and (ii) will acquire its Ratable Share of all outstanding Participation Advances.  2.14 Extension of Expiration Date.  (a) Requests for Extension.  The Borrower may, by written notice to the  Administrative Agent (and the Administrative Agent shall promptly (and, in any event, within two  Business Days) provide such Extension Request to each Lender) in the form of Exhibit 2.14(A)  (each, an “Extension Request”) at any time after the first anniversary of the Closing Date but  prior to the date which is 30 days prior to the Expiration Date then in effect (the “Existing  Expiration Date”), request that each Lender extend the Expiration Date with respect to such  Lender’s Revolving Credit Commitment for a period of an additional one year from the then  Existing Expiration Date (each, an “Extension”).  The Borrower may request up to two  Extensions.  (b) Lender Elections to Extend.  Each Lender, acting in its sole and individual  discretion, shall by written notice to the Administrative Agent not later than the date that is 15 days  after receiving the applicable Extension Request from the Administrative Agent (the “Notice  Date”), advise the Administrative Agent whether or not such Lender agrees to such Extension by  a written notice in the form of Exhibit 2.14(B) (a “Continuation Notice”) (and each Lender that  determines not to so extend its Expiration Date (a “Non-Extending Lender”) shall notify the  Administrative Agent of such fact in writing (a “Notice of Non-Extension”) promptly after such  determination (but in any event no later than the Notice Date)) and any Lender that does not so  advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non- Extending Lender.  The election of any Lender to agree to such Extension shall not oblige any  other Lender to so agree.  (c) Notification by Administrative Agent.  The Administrative Agent shall  notify the Borrower of each Lender’s determination under this Section promptly after the  

 

  45  165778087  Administrative Agent’s receipt of a Continuation Notice or Notice of Non-Extension from any  Lender.  (d) Additional Commitment Lenders.  The Borrower shall have the right on or  before the Existing Expiration Date to replace each Non-Extending Lender with, and add as  “Lenders” under this Agreement in place thereof, one or more assignees permitted pursuant to  Section 11.8 of this Agreement (each, an “Additional Commitment Lender”) with the approval  of the Administrative Agent, the Swing Loan Lender and Issuing Lender (in each case, such  approval not to be unreasonably withheld, conditioned or delayed), each of which Additional  Commitment Lenders shall have entered into an agreement in form and substance reasonably  satisfactory to the Borrower and the Administrative Agent pursuant to which such Additional  Commitment Lender shall, effective as of the Existing Expiration Date, undertake a Commitment  (and, if any such Additional Commitment Lender is already a Lender, its Commitment shall be in  addition to such Lender’s Commitment hereunder on such date).  (e) Minimum Extension Requirement.  If (and only if) the conditions precedent  set forth in clause (f) below have been satisfied (or waived) as of the Existing Expiration Date,  then effective as of the Existing Expiration Date, the Expiration Date of the Commitments of each  Lender agreeing to extend such Existing Expiration Date and of each Additional Commitment  Lender shall be extended to the date falling one year after the Existing Expiration Date (except  that, if such date is not a Business Day, such Expiration Date as so extended shall be the Business  Day immediately preceding the date one year after the Existing Expiration Date) and each  Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this  Agreement.  (f) Conditions to Effectiveness of Extensions.  Notwithstanding the foregoing,  the extension of the Expiration Date pursuant to this Section 2.14 shall not be effective with respect  to any Lender unless:  (i) no Potential Default or Event of Default shall have occurred and be  continuing on the date of such Extension and immediately after giving effect thereto;  (ii) the representations and warranties contained in this Agreement are  true and correct in all material respects on and as of the date of such Extension and immediately  after giving effect thereto, as though made on and as of such date (or, if such representation or  warranty is expressly stated to have been made as of a specific date, as of such specific date);  (iii) on the Existing Expiration Date, (1) the Borrower shall have paid in  full the principal of and accrued interest and fees on all of the Loans and Commitments made by  each Non-Extending Lender to the Borrower hereunder, (2) the Borrower shall have paid in full  all other amounts required to be paid by the Borrower then due and owing to such Non-Extending  Lender hereunder and (3) the Commitments of each Non-Extending Lender shall automatically  terminate;  (iv) the Required Lenders and the Swing Loan Lender and Issuing  Lender shall have agreed to extend the Expiration Date of their Commitments pursuant to clause  (b) above; and  

 

  46  165778087  (v) each such Extension shall be effected pursuant to an amendment (an  “Extension Amendment”) to this Agreement and, as appropriate, the other Loan Documents,  executed by the Borrower, the Administrative Agent,  such Lenders that have agreed to extend  their Existing Expiration Date and any Additional Commitment Lenders, which Extension  Amendment shall effect, without the consent of any other Person, such amendments to this  Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of  the Administrative Agent (but with the consent of the Borrower), to effect any such Extension.  3. [RESERVED]  4. INTEREST RATES  4.1 Interest Rate Options.  The Borrower shall pay interest in respect of the outstanding  unpaid principal amount of the Loans as selected by it from the Base Rate Option, Term SOFR  Rate Option or Daily SOFR Option specified below applicable to the Revolving Credit Loans or  the Swing Loans, respectively, it being understood that, subject to the provisions of this  Agreement, the Borrower may select different Interest Rate Options and (in the case of the  Revolving Credit Loans bearing interest under the Term SOFR Rate Option) different Interest  Periods to apply simultaneously to the Revolving Credit Loans comprising different Borrowing  Tranches and may convert to or renew one or more Interest Rate Options with respect to all or any  portion of the Revolving Credit Loans comprising any Borrowing Tranche; provided that there  shall not be at any one time outstanding more than ten (10) Borrowing Tranches in the aggregate  among all of the Loans; provided further that if an Event of Default or Potential Default exists and  is continuing (i) the Borrower may not request, convert to, or renew the Term SOFR Rate Option  for any Revolving Credit Loans and the Required Lenders may demand that all existing Borrowing  Tranches bearing interest under the Term SOFR Rate Option shall be converted immediately to  the Base Rate Option, subject to the obligation of the Borrower to pay any indemnity under Section  5.10 [Indemnity] in connection with such conversion and (ii) the Borrower may not request the  Daily SOFR Option for any Swing Loans and the Swing Loan Lender may demand that all existing  Swing Loans bearing interest under the Daily SOFR Option shall be converted immediately to the  Base Rate Option.  If at any time the designated rate applicable to any Loan made by any Lender  exceeds such Lender’s highest lawful rate, the rate of interest on such Lender’s Loan shall be  limited to such Lender’s highest lawful rate. The applicable Base Rate, Term SOFR Rate or Daily  SOFR shall be determined by the Administrative Agent, and such determination shall be  conclusive absent manifest error.  (a) Revolving Credit Loan Interest Rate Options.  The Borrower shall have the  right to select from the following Interest Rate Options applicable to the Revolving Credit Loans:  (i) Revolving Credit Base Rate Option: A fluctuating rate per annum  (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed)  equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from  time to time effective as of the effective date of each change in the Base Rate; or  (ii) Revolving Credit Term SOFR Rate Option: A rate per annum  (computed on the basis of a year of 360 days and actual days elapsed) equal to the Adjusted Term  SOFR Rate as determined for each applicable Interest Period plus the Applicable Margin.  

 

  47  165778087  (b) Swing Loan Interest Rate Options.  The Borrower shall have the right to  select from the following Interest Rate Options applicable to the Swing Loans:  (i) Swing Loan Base Rate Option:  A fluctuating rate per annum  (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed)  equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from  time to time effective as of the effective date of each change in the Base Rate; or  (ii) Swing Loan Daily SOFR Option:  A fluctuating rate per annum  (computed on the basis of a year of 360 days and actual days elapsed) equal to Daily SOFR plus  the SOFR Adjustment plus the Applicable Margin, such interest rate to change automatically from  time to time effective as of the effective date of each change in Daily SOFR.  (c) Rate Quotations.  The Borrower may call the Administrative Agent on or  before the date on which a Loan Request is to be delivered to receive an indication of the rates  then in effect, but it is acknowledged that such projection shall not be binding on the  Administrative Agent or the Lenders nor affect the rate of interest which thereafter is actually in  effect when the election is made.  4.2 Conforming Changes Relating to the Term SOFR Rate and Daily SOFR.  With  respect to the Term SOFR Rate and Daily SOFR, the Administrative Agent (in consultation with  the Borrower) will have the right to make Conforming Changes from time to time and,  notwithstanding anything to the contrary herein or in any other Loan Document, any amendments  implementing such Conforming Changes will become effective without any further action or  consent of any other party to this Agreement or any other Loan Document; provided that,  the  Administrative Agent shall provide notice to the Borrower and the Lenders of each such  amendment implementing such Conforming Changes reasonably promptly after such amendment  becomes effective.  4.3 Interest After Default.  (a) Default Rate.    (i) If any amount of principal of any Loan is not paid when due (without  regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise,  such amount shall thereafter until such amount is paid in full bear interest at a fluctuating interest  rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable  Laws.  (ii) If any amount (other than principal of any Loan) payable by the  Borrower under any Loan Document is not paid when due (after any applicable notices have been  given and grace periods have expired), whether at stated maturity, by acceleration or otherwise,  then upon the request of the Required Lenders, such amount shall thereafter until such amount is  paid in full bear interest at a fluctuating interest rate per annum at all times equal to the Default  Rate to the fullest extent permitted by applicable Laws.  (iii) Upon the request of the Required Lenders, while any Event of  Default pursuant to Section 9.1(g) exists, the Borrower shall pay interest on the principal amount  

 

  48  165778087  of all outstanding Loans hereunder at a fluctuating interest rate per annum at all times equal to the  Default Rate to the fullest extent permitted by applicable Laws.  (b) Payment.  Accrued and unpaid interest on past due amounts (including  interest on past due interest) shall be due and payable upon demand.  (c) Acknowledgment.  The Borrower acknowledges that the increase in rates  referred to in this Section 4.3 reflects, among other things, the fact that such Loans or other  amounts have become a substantially greater risk given their default status and that the Lenders  are entitled to additional compensation for such risk; and all such interest shall be payable by  Borrower upon demand by Administrative Agent.  4.4 Rate Unascertainable; Increased Costs; Illegality; Benchmark Replacement Setting.  (a) Rate Unascertainable; Increased Costs. If at any time:  (i) the Administrative Agent shall have determined (which  determination shall be conclusive and binding absent manifest error) that the Term SOFR Rate or  Daily SOFR, as applicable, cannot be determined pursuant to the definition thereof; or  (ii) the Required Lenders determine that for any reason in connection  with any request for a Term SOFR Rate Loan or conversion to a Term SOFR Rate Loan or  continuation of a Term SOFR Rate Loan that the Term SOFR Rate does not adequately and fairly  reflect the cost to such Lenders of funding, establishing or maintaining such Loan during the  applicable Interest Period or the Swing Loan Lender determines that for any reason in connection  with any request for a Swing Loan that Daily SOFR does not adequately and fairly reflect the cost  to such Lender of funding, establishing or maintaining such Loan, as applicable, and the Required  Lenders or Swing Loan Lender, as applicable, has provided notice of such determination to the  Administrative Agent,  then the Administrative Agent shall have the rights specified in Section 4.4(c) [Administrative  Agent’s and Lender’s Rights].  (b) Illegality.  If at any time any Lender shall have determined, or any  Governmental Authority shall have asserted, that the making, maintenance or funding of any Term  SOFR Rate Loan or Daily SOFR Loan, or the determination or charging of interest rates based on  the Term SOFR Rate or Daily SOFR, has been made impracticable or unlawful by compliance by  such Lender in good faith with any Law or any interpretation or application thereof by any  Governmental Authority or with any request or directive of any such Governmental Authority  (whether or not having the force of Law), then the Administrative Agent shall have the rights  specified in Section 4.4(c) [Administrative Agent’s and Lender’s Rights].  (c) Administrative Agent’s and Lender’s Rights.  In the case of any event  specified in Section 4.4(a) [Rate Unascertainable; Increased Costs] above, the Administrative  Agent shall promptly  notify the Lenders and the Borrower thereof, and in the case of an event  specified in Section 4.4(b) [Illegality] above, such Lender shall promptly so notify the  Administrative Agent and endorse a certificate to such notice as to the specific circumstances of  such notice, and the Administrative Agent shall promptly send copies of such notice and certificate  

 

  49  165778087  to the other Lenders and the Borrower.  Upon such date as shall be specified in such notice (which  shall not be earlier than the date such notice is given), the obligation of (i) the Lenders, in the case  of such notice given by the Administrative Agent, or (ii) such Lender, in the case of such notice  given by such Lender, to allow the Borrower to select, convert to or renew a Term SOFR Rate  Loan or Daily SOFR Loan, as applicable, shall be suspended (to the extent of the affected Term  SOFR Rate Loan or Interest Periods or Daily SOFR Loan) until the Administrative Agent shall  have later notified the Borrower, or such Lender shall have later notified the Administrative Agent,  of the Administrative Agent’s or such Lender’s, as the case may be, determination that the  circumstances giving rise to such previous determination no longer exist.  If at any time the  Administrative Agent makes a determination under Section 4.4(a) [Rate Unascertainable;  Increased Costs] and the Borrower has previously notified the Administrative Agent of its selection  of, conversion to or renewal of the Term SOFR Rate Option or Daily SOFR Option and the Term  SOFR Rate Option or Daily SOFR Option has not yet gone into effect, such notification shall be  deemed to provide for selection of, conversion to or renewal of a Base Rate Loan.  If any Lender  notifies the Administrative Agent of a determination under Section 4.4(b) [Illegality], the  Borrower shall, subject to the Borrower’s indemnification Obligations under Section 5.10  [Indemnity], as to any Loan of the Lender to which the Term SOFR Rate Option or Daily SOFR  Option applies, on the date specified in such notice either convert such Loan to a Base Rate Loan  otherwise available with respect to such Loan or prepay such Loan in accordance with Section 5.6  [Voluntary Prepayments].  Absent due notice from the Borrower of conversion or prepayment,  such Loan shall automatically be converted to a Base Rate Loan upon such specified date.  (d) Benchmark Replacement Setting.    (i) Benchmark Replacement. Notwithstanding anything to the contrary  herein or in any other Loan Document (and any agreement executed in connection with an Swap  Contract shall be deemed not to be a “Loan Document” for purposes of this Section titled  “Benchmark Replacement Setting”), if a Benchmark Transition Event and its related Benchmark  Replacement Date have occurred prior to any setting of the then-current Benchmark, then (A) if a  Benchmark Replacement is determined in accordance with clause (1) of the definition of  “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark  Replacement will replace such Benchmark for all purposes hereunder and under any Loan  Document in respect of such Benchmark setting and subsequent Benchmark settings without any  amendment to, or further action or consent of any other party to, this Agreement or any other Loan  Document and (B) if a Benchmark Replacement is determined in accordance with clause (2) of the  definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark  Replacement will replace such Benchmark for all purposes hereunder and under any Loan  Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the  fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the  Lenders without any amendment to, or further action or consent of any other party to, this  Agreement or any other Loan Document so long as the Administrative Agent has not received, by  such time, written notice of objection to such Benchmark Replacement from Lenders comprising  the Required Lenders.  (ii) Benchmark Replacement Conforming Changes. In connection with  the use, administration, adoption or implementation of a Benchmark Replacement, the  Administrative Agent (in consultation with the Borrower) will have the right to make Conforming  

 

  50  165778087  Changes from time to time and, notwithstanding anything to the contrary herein or in any other  Loan Document, any amendments implementing such Conforming Changes will become effective  without any further action or consent of any other party to this Agreement or any other Loan  Document.  (iii) Notices; Standards for Decisions and Determinations. The  Administrative Agent will promptly notify the Borrower and the Lenders of (A) the  implementation of any Benchmark Replacement, and (B) the effectiveness of any Conforming  Changes in connection with the use, administration, adoption or implementation of a Benchmark  Replacement.  The Administrative Agent will notify the Borrower of (x) the removal or  reinstatement of any tenor of a Benchmark pursuant to paragraph (iv) below and (y) the  commencement of any Benchmark Unavailability Period. Any determination, decision or election  that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders)  pursuant to this Section, including any determination with respect to a tenor, rate or adjustment or  of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or  refrain from taking any action or any selection, will be conclusive and binding absent manifest  error and may be made in its or their sole discretion and without consent from any other party to  this Agreement or any other Loan Document except, in each case, as expressly required pursuant  to this Section.  (iv) Unavailability of Tenor of Benchmark. Notwithstanding anything to  the contrary herein or in any other Loan Document, at any time (including in connection with the  implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate  or based on a term rate and either (I) any tenor for such Benchmark is not displayed on a screen or  other information service that publishes such rate from time to time as selected by the  Administrative Agent in its reasonable discretion or (II) the regulatory supervisor for the  administrator of such Benchmark has provided a public statement or publication of information  announcing that any tenor for such Benchmark is not or will not be representative, then the  Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous  definition) for any Benchmark settings at or after such time to remove such unavailable or non- representative tenor; and (B) if a tenor that was removed pursuant to clause (A) above either (I) is  subsequently displayed on a screen or information service for a Benchmark (including a  Benchmark Replacement) or (II) is not, or is no longer, subject to an announcement that it is not  or will not be representative for a Benchmark (including a Benchmark Replacement), then the  Administrative Agent may modify the definition of “Interest Period” (or any similar or analogous  definition) for all Benchmark settings at or after such time to reinstate such previously removed  tenor.  (v) Benchmark Unavailability Period. Upon the Borrower’s receipt of  notice of the commencement of a Benchmark Unavailability Period with respect to the Term SOFR  Rate or Daily SOFR, the Borrower may revoke any pending request for a Loan bearing interest  based on such rate or conversion to or continuation of Loans bearing interest based on such rate to  be made, converted or continued during any Benchmark Unavailability Period and, failing that,  the Borrower will be deemed to have converted any such request into a request for a Base Rate  Loan or conversion to a Base Rate Loan. During a Benchmark Unavailability Period or at any time  that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base  

 

  51  165778087  Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable,  will not be used in any determination of the Base Rate.  (vi) Definitions. As used in this Section:  “Available Tenor” means, as of any date of determination and with respect to the  then-current Benchmark, as applicable, if such Benchmark is a term rate, any tenor for such  Benchmark (or component thereof) that is or may be used for determining the length of an  Interest Period pursuant to this Agreement as of such date and not including, for the  avoidance of doubt, any tenor of such Benchmark that is then-removed from the definition  of “Interest Period” pursuant to clause (iv) of this Section.   “Benchmark” means, initially, SOFR and the Term SOFR Reference Rate;  provided that if a Benchmark Transition Event has occurred with respect to the then-current  Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the  extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant  to this Section.   “Benchmark Replacement” means, with respect to any Benchmark Transition  Event, the first alternative set forth in the order below that can be determined by the  Administrative Agent for the applicable Benchmark Replacement Date:  (1) the sum of: (A) Daily Simple SOFR and (B) the SOFR  Adjustment;   (2) the sum of (A) the alternate benchmark rate that has been  selected by the Administrative Agent and the Borrower, giving due consideration to  (x) any selection or recommendation of a replacement benchmark rate or the  mechanism for determining such a rate by the Relevant Governmental Body or (y)  any evolving or then-prevailing market convention for determining a benchmark rate  as a replacement to the then-current Benchmark for U.S. dollar-denominated  syndicated credit facilities at such time and (B) the related Benchmark Replacement  Adjustment;   provided that (i) if the Benchmark Replacement is determined pursuant to clause  (1) above, the SOFR Adjustment referenced in clause (1) above shall not be included in  the Benchmark Replacement in the event that the SOFR Adjustment is added to such  Benchmark Replacement elsewhere in this Agreement for purposes of determining interest  payable hereunder and (ii) if the Benchmark Replacement as determined pursuant to clause  (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be  the Floor for the purposes of this Agreement and the other Loan Documents; and provided  further, that any Benchmark Replacement shall be administratively feasible as determined  by the Administrative Agent in its reasonable discretion.  “Benchmark Replacement Adjustment” means, with respect to any replacement of  the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread  adjustment, or method for calculating or determining such spread adjustment, (which may  be a positive or negative value or zero) that has been selected by the Administrative Agent  

 

  52  165778087  and the Borrower, giving due consideration to (A) any selection or recommendation of a  spread adjustment, or method for calculating or determining such spread adjustment, for  the replacement of such Benchmark with the applicable Unadjusted Benchmark  Replacement by the Relevant Governmental Body or (B) any evolving or then-prevailing  market convention for determining a spread adjustment, or method for calculating or  determining such spread adjustment, for the replacement of such Benchmark with the  applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated  credit facilities at such time.  “Benchmark Replacement Date” means a date and time determined by the  Administrative Agent, which date shall be no later than the earliest to occur of the following  events with respect to the then-current Benchmark:    (1)  in the case of clause (1) or (2) of the definition of  “Benchmark Transition Event,” the later of (A) the date of the public statement or  publication of information referenced therein and (B) the date on which the  administrator of such Benchmark (or the published component used in the  calculation thereof) permanently or indefinitely ceases to provide such Benchmark  (or such component thereof) or, if such Benchmark is a term rate or is based on a  term rate, all Available Tenors of such Benchmark (or such component thereof); or  (2)  in the case of clause (3) of the definition of “Benchmark  Transition Event,” the date determined by the Administrative Agent (in  consultation with the Borrower), which date shall promptly follow the date of the  public statement or publication of information referenced therein.  For the avoidance of doubt, if such Benchmark is a term rate or is based on a term rate, the  “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1)  or (2) with respect to any Benchmark upon the occurrence of the applicable event or events  set forth therein with respect to all then-current Available Tenors of such Benchmark (or  the published component used in the calculation thereof).   “Benchmark Transition Event” means, the occurrence of one or more of the  following events, with respect to the then-current Benchmark:  (1) a public statement or publication of information by or on  behalf of the administrator of such Benchmark (or the published component used  in the calculation thereof) announcing that such administrator has ceased or will  cease to provide such Benchmark (or such component thereof) or, if such  Benchmark is a term rate or is based on a term rate, all Available Tenors of such  Benchmark (or such component thereof), permanently or indefinitely, provided  that, at the time of such statement or publication, there is no successor administrator  that will continue to provide any Available Tenor of such Benchmark (or such  component thereof);  (2) a public statement or publication of information by an  Governmental Authority having jurisdiction over the Administrative Agent, the  

 

  53  165778087  regulatory supervisor for the administrator of such Benchmark (or the published  component used in the calculation thereof), the Federal Reserve Board, the Federal  Reserve Bank of New York, an insolvency official with jurisdiction over the  administrator for such Benchmark (or such component), a resolution authority with  jurisdiction over the administrator for such Benchmark (or such component) or a  court or an entity with similar insolvency or resolution authority over the  administrator for such Benchmark (or such component), which states that the  administrator of such Benchmark (or such component) has ceased or will cease to  provide such Benchmark (or such component thereof) or, if such Benchmark is a  term rate or is based on a term rate, all Available Tenors of such Benchmark (or  such component thereof) permanently or indefinitely, provided that, at the time of  such statement or publication, there is no successor administrator that will continue  to provide such Benchmark (or such component thereof) or, if such Benchmark is  a term rate or is based on a term rate, any Available Tenor of such Benchmark (or  such component thereof); or  (3) a public statement or publication of information by the  regulatory supervisor for the administrator of such Benchmark (or the published  component used in the calculation thereof) or an Governmental Authority having  jurisdiction over the Administrative Agent announcing that such Benchmark (or  such component thereof) or, if such Benchmark is a term rate or is based on a term  rate,  all Available Tenors of such Benchmark (or such component thereof) are not,  or as of a specified future date will not be, representative.  For the avoidance of doubt, if such Benchmark is a term rate or is based on a term rate, a  “Benchmark Transition Event” will be deemed to have occurred with respect to any  Benchmark if a public statement or publication of information set forth above has occurred  with respect to each then-current Available Tenor of such Benchmark (or the published  component used in the calculation thereof).  “Benchmark Unavailability Period” means the period (if any) (x) beginning at the  time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark  Replacement has replaced the then-current Benchmark for all purposes hereunder and  under any Loan Document in accordance with this Section 4.4(d) titled “Benchmark  Replacement Setting” and (y) ending at the time that a Benchmark Replacement has  replaced the then-current Benchmark for all purposes hereunder and under any Loan  Document in accordance with this Section 4.4(d) titled “Benchmark Replacement Setting.”   “Floor” means the benchmark rate floor, if any, provided in this Agreement initially  (as of the execution of this Agreement, the modification, amendment or renewal of this  Agreement or otherwise) with respect to the Term SOFR Rate or Daily SOFR, as  applicable, or, if no floor is specified, zero.   “Relevant Governmental Body” means the Board of Governors of the Federal  Reserve System and/or the Federal Reserve Bank of New York, or a committee officially  endorsed or convened by the Board of Governors of the Federal Reserve System and/or the  Federal Reserve Bank of New York, or any successor thereto.  

 

  54  165778087  “Unadjusted Benchmark Replacement” means the applicable Benchmark  Replacement excluding the related Benchmark Replacement Adjustment.  4.5 Selection of Interest Rate Options.  If the Borrower fails to select a new Interest  Period to apply to any Borrowing Tranche of Loans under the Term SOFR Rate Option at the  expiration of an existing Interest Period applicable to such Borrowing Tranche in accordance with  Section 2.6 [Revolving Credit Loan Requests; Loan Conversions and Renewals; Swing Loan  Requests], the Borrower shall be deemed to have converted such Borrowing Tranche to the Base  Rate Option, as applicable to Revolving Credit Loans commencing upon the last day of the existing  Interest Period. If the Borrower provides any Loan Request related to a Loan at the Term SOFR  Rate Option but fails to identify an Interest Period therefor, such Loan Request shall be deemed to  request an Interest Period of one (1) month.  Any Loan Request that fails to select an Interest Rate  Option shall be deemed to be a request for the Base Rate Option.  5. PAYMENTS  5.1 Payments.  All payments and prepayments to be made in respect of principal,  interest, Commitment Fees, Letter of Credit Fees, Administrative Agent’s Fee or other fees or  amounts due from the Borrower hereunder shall be payable prior to 12:00 noon on the date when  due without presentment, demand, protest or notice of any kind, all of which are hereby expressly  waived by the Borrower, and without set-off, counterclaim or other deduction of any nature, and  an action therefor shall immediately accrue.  Such payments shall be made to the Administrative  Agent at the Principal Office for the account of PNC with respect to the Swing Loans and for the  ratable accounts of the Lenders with respect to the Revolving Credit Loans in U.S.  Dollars and in  immediately available funds, and the Administrative Agent shall promptly distribute such amounts  to the Lenders in immediately available funds; provided that in the event payments are received  by 12:00 noon by the Administrative Agent with respect to the Loans and such payments are not  distributed to the Lenders on the same day received by the Administrative Agent, the  Administrative Agent shall pay the Lenders interest at the Federal Funds Effective Rate with  respect to the amount of such payments for each day held by the Administrative Agent and not  distributed to the Lenders.  The Administrative Agent’s and each Lender’s statement of account,  ledger or other relevant record shall, in the absence of manifest error, be conclusive as the  statement of the amount of principal of and interest on the Loans and other amounts owing under  this Agreement and shall be deemed an “account stated.”  5.2 Pro Rata Treatment of Lenders.  Each borrowing of Revolving Credit Loans shall  be allocated to each Lender according to its Ratable Share.  Each selection of, conversion to or  renewal of any Interest Rate Option and each payment or prepayment by the Borrower with respect  to principal, interest, Commitment Fees, Letter of Credit Fees, or other fees (except for the  Administrative Agent’s Fee and the Issuing Lender’s fronting fee) or amounts due from the  Borrower hereunder to the Lenders with respect to the Commitments and Loans, shall (except as  otherwise may be provided with respect to a Defaulting Lender and except as provided in Section  4.4(c) [Administrative Agent’s and Lender’s Rights] in the case of an event specified in Section  4.4 [Rate Unascertainable; Increased Costs; Illegality; Benchmark Replacement Setting], 5.6(b)  [Replacement of a Lender] or 5.8 [Increased Costs]) be payable ratably among the Lenders entitled  to such payment in accordance with the amount of principal, interest, Commitment Fees, Letter of  Credit Fees, and other fees or amounts then due or payable such Lenders as set forth in this  

 

  55  165778087  Agreement.  Notwithstanding any of the foregoing, each borrowing or payment or prepayment by  the Borrower of principal, interest, fees or other amounts from the Borrower with respect to Swing  Loans shall be made by or to PNC according to Section 2.7(e) [Borrowings to Repay Swing  Loans].  5.3 Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of  setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by realization upon security,  or by any other non-pro rata source, obtain payment in respect of any principal of or interest on  any of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of a  proportion of the aggregate amount of its Loans and accrued interest thereon or other such  obligations greater than the pro-rata share of the amount such Lender is entitled thereto, then the  Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact,  and (b) purchase (for cash at face value) participations in the Loans and such other obligations of  the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all  such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of  principal of and accrued interest on their respective Loans and other amounts owing them,  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, together with interest or other amounts, if any,  required by Law (including court order) to be paid by the Lender or the holder making such  purchase; and  (ii) the provisions of this Section 5.3 shall not be construed to apply to  (x) any payment made by the Borrower pursuant to and in accordance with the express terms of  the Loan Documents or (y) any payment obtained by a Lender as consideration for the assignment  of or sale of a participation in any of its Loans or Participation Advances to any assignee or  participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this  Section 5.3 shall apply).  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under  applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements  may exercise against the Borrower rights of setoff and counterclaim with respect to such  participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such  participation.  5.4 Presumptions by Administrative Agent.  Unless the Administrative Agent shall  have received notice from the Borrower prior to the date on which any payment is due to the  Administrative Agent for the account of the Lenders or the Issuing Lender hereunder that the  Borrower will not make such payment, the Administrative Agent may assume that the Borrower  has made such payment on such date in accordance herewith and may, in reliance upon such  assumption, distribute to the Lenders or the Issuing Lender, as the case may be, the amount due.   In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the  Issuing Lender, as the case may be, severally agrees to repay to the Administrative Agent forthwith  on demand the amount so distributed to such Lender or the Issuing Lender, with interest thereon,  for each day from and including the date such amount is distributed to it to but excluding the date  

 

  56  165778087  of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a  rate determined by the Administrative Agent in accordance with banking industry rules on  interbank compensation.  5.5 Interest Payment Dates.  Interest on Loans to which the Base Rate Option or the  Daily SOFR Option applies shall be due and payable in arrears on each Payment Date.  Interest on  Loans to which the Term SOFR Rate Option applies shall be due and payable on the last day of  each Interest Period and, if such Interest Period is longer than three (3) months, also at the end of  each 90-day period during such Interest Period.  Interest on the principal amount of each Loan or  other monetary Obligation shall be due and payable on demand after such principal amount or  other monetary Obligation becomes due and payable (whether on the stated Expiration Date, upon  acceleration or otherwise). Interest shall be computed to, but excluding, the date payment is due.  5.6 Voluntary Prepayments.  (a) Right to Prepay.  The Borrower shall have the right at its option from time  to time to prepay the Loans in whole or part without premium or penalty (except as provided in  Section 5.6(b) [Replacement of a Lender] below, in Section 5.8 [Increased Costs] and Section 5.10  [Indemnity]).  Whenever the Borrower desires to prepay any part of the Loans, it shall provide a  prepayment notice to the Administrative Agent by 1:00 p.m. at least one (1) Business Day prior to  the date of prepayment of the Revolving Credit Loans that bear interest at the Base Rate Option  and at least three (3) Business Days prior to the date of prepayment of the Revolving Credit Loans  that bear interest at the Term SOFR Rate Option, or no later than 1:00 p.m. on the date of  prepayment of Swing Loans, setting forth the following information:  (w) the date, which shall be a Business Day, on which the proposed  prepayment is to be made;  (x) a statement indicating the application of the prepayment between the  Revolving Credit Loans and Swing Loans;  (y) if applicable, a statement indicating the application of the  prepayment between the between Loans to which the Base Rate Option applies,  Loans to which the Term SOFR Rate Option applies and Loans to which the Daily  SOFR Option applies; and  (z) the total principal amount of such prepayment, which shall not be  less than the lesser of (i) the Revolving Credit Loans, or (ii) $100,000 for any Swing  Loan or $500,000 for any Revolving Credit Loan.  All prepayment notices shall be irrevocable.  The principal amount of the Loans for  which a prepayment notice is given, together with interest on such principal amount except with  respect to Loans to which the Base Rate Option applies, shall be due and payable on the date  specified in such prepayment notice as the date on which the proposed prepayment is to be made.   Except as provided in Section 4.4(c) [Administrative Agent’s and Lender’s Rights], if the  Borrower prepays a Loan but fails to specify the applicable Borrowing Tranche which the  Borrower is prepaying, the prepayment shall be applied first to Base Rate Loans, then to Daily  

 

  57  165778087  SOFR Loans, then to Term SOFR Rate Loans.  Any prepayment hereunder shall be subject to the  Borrower’s Obligation to indemnify the Lenders under Section 5.10 [Indemnity].  (b) Replacement of a Lender.  In the event any Lender (i) gives notice under  Section 4.4(b) [Illegality], (ii) requests compensation under Section 5.8 [Increased Costs], or  requires the Borrower to pay any Indemnified Taxes or additional amount to any Lender or any  Governmental Authority for the account of any Lender pursuant to Section 5.9 [Taxes], (iii) is a  Defaulting Lender or has been a Defaulting Lender three or more times within a consecutive six  month period, (iv) becomes subject to the control of an Governmental Authority (other than normal  and customary supervision), (v) fails or declines to extend its Commitment pursuant to an  extension otherwise approved pursuant to Section 2.14 [Extension of Expiration Date], or (vi) is a  Non-Consenting Lender referred to in Section 11.1 [Modifications, Amendments or Waivers], then  in any such event the Borrower may, at its sole expense, upon notice to such Lender and the  Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance  with and subject to the restrictions contained in, and consents required by, Section 11.8 [Successors  and Assigns]), all of its interests, rights (other than existing rights to payments pursuant to Section  5.8 [Increased Costs] or 5.9 [Taxes]) and obligations under this Agreement and the related Loan  Documents to an assignee that shall assume such obligations (which assignee may be another  Lender, if a Lender accepts such assignment), provided that:  (i) the Borrower shall have paid to the Administrative Agent the  assignment fee specified in Section 11.8 [Successors and Assigns] or the Administrative Agent  has agreed to waive such fee;  (ii) such Lender shall have received payment of an amount equal to the  outstanding principal of its Loans and Participation Advances, accrued interest thereon, accrued  fees and all other amounts payable to it hereunder and under the other Loan Documents (including  any amounts under Section 5.10 [Indemnity]) from the assignee (to the extent of such outstanding  principal and accrued interest and fees) or the Borrower (in the case of all other amounts);  (iii) in the case of any such assignment resulting from a claim for  compensation under Section 5.8(a) [Increased Costs Generally] or payments required to be made  pursuant to Section 5.9 [Taxes], such assignment will result in a reduction in such compensation  or payments thereafter; and  (iv) such assignment does not conflict with applicable Law.  (v) A Lender shall not be required to make any such assignment or  delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances  entitling the Borrower to require such assignment and delegation cease to apply.  (c) Designation of a Different Lending Office.  If any Lender requests  compensation under Section 5.8 [Increased Costs], or the Borrower is or will be required to pay  any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for  the account of any Lender pursuant to Section 5.9 [Taxes], then such Lender shall (at the request  of the Borrower) use reasonable efforts to designate a different lending office for funding or  booking its Loans hereunder or to assign its rights and obligations hereunder to another of its  

 

  58  165778087  offices, branches or affiliates, if, in the reasonable judgment of such Lender, such designation or  assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.8 [Increased  Costs] or Section 5.9 [Taxes], as the case may be, in the future, and (ii) would not subject such  Lender to any material unreimbursed cost or expense and would not otherwise be materially  disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and  expenses incurred by any Lender in connection with any such designation or assignment.  5.7 Mandatory Prepayments.  (a) If for any reason the Revolving Facility Usage at any time exceed the  aggregate Commitments of all Lenders then in effect, the Borrower shall immediately prepay  Loans and/or Cash Collateralize the Letter of Credit Obligations in an aggregate amount equal to  such excess; provided, however, that the Borrower shall not be required to Cash Collateralize the  Letter of Credit Obligations pursuant to this Section 5.7(a) unless after the prepayment in full of  the Loans the Revolving Facility Usage exceed the aggregate Commitments then in effect.  (b) If the Borrower fails to obtain any approval, consent or authorization from  any Governmental Authority which is necessary or required in order to permit the Borrower to  incur Obligations hereunder on or before December 31 of each calendar year, then the Borrower  shall immediately prepay all outstanding Loans and Cash Collateralize all Letter of Credit  Obligations to the extent, and only to the extent, such outstanding Loans and Letter of Credit  Obligations are not authorized by the then effective necessary or required approvals, consents and  authorizations from such Governmental Authority.  5.8 Increased Costs.  (a) Increased Costs Generally.  If any Change in Law shall:  (i) impose, modify or deem applicable any reserve, special deposit,  compulsory loan, insurance charge or similar requirement against assets of, deposits with or for  the account of, or credit extended or participated in by, any Lender (except any reserve requirement  reflected in the Term SOFR Rate or Daily SOFR) or the Issuing Lender;  (ii) subject any Recipient to any Taxes (other than (A) Indemnified  Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition of Excluded Taxes and (C)  Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other  obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or  (iii) impose on any Lender, the Issuing Lender or the relevant market  any other condition, cost or expense (other than Taxes) affecting this Agreement or any Loans  made by such Lender or any Letter of Credit or participation therein;   and the result of any of the foregoing shall be to increase the cost to such Lender or such other  Recipient of making converting to, continuing or maintaining any Loan under the Term SOFR  Rate Option (or of maintaining its obligation to make any such Loan), or to increase the cost to  such Lender, the Issuing Lender or such other Recipient of participating in, issuing or maintaining  any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of  Credit), or to reduce the amount of any sum received or receivable by such Lender, the Issuing  

 

  59  165778087  Lender or such other Recipient hereunder (whether of principal, interest or any other amount) then,  upon request of such Lender, the Issuing Lender or such other Recipient, the Borrower will pay to  such Lender, the Issuing Lender or such other Recipient, as the case may be, such additional  amount or amounts as will compensate such Lender or the Issuing Lender, as the case may be, for  such additional costs incurred or reduction suffered.  (b) Capital Requirements.  If any Lender or the Issuing Lender determines that  any Change in Law affecting such Lender or the Issuing Lender or any lending office of such  Lender or such Lender’s or the Issuing Lender’s holding company, if any, regarding capital or  liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s  or the Issuing Lender’s capital or on the capital of such Lender’s or the Issuing Lender’s holding  company, if any, as a consequence of this Agreement, the Commitments of such Lender or the  Loans made by, or participations in Letters of Credit or Swing Loans held by, such Lender, or the  Letters of Credit issued by the Issuing Lender, to a level below that which such Lender or the  Issuing Lender or such Lender’s or the Issuing Lender’s holding company could have achieved  but for such Change in Law (taking into consideration such Lender’s or the Issuing Lender’s  policies and the policies of such Lender’s or the Issuing Lender’s holding company with respect  to capital adequacy), then from time to time the Borrower will pay to such Lender or the Issuing  Lender, as the case may be, such additional amount or amounts as will compensate such Lender  or the Issuing Lender or such Lender’s or the Issuing Lender’s holding company for any such  reduction suffered.  (c) Certificates for Reimbursement; Repayment of Outstanding Loans;   Borrowing of New Loans.  A certificate of a Lender or the Issuing Lender setting forth the amount  or amounts necessary to compensate such Lender or the Issuing Lender or its holding company,  as the case may be, as specified in Sections 5.8(a) [Increased Costs Generally] or 5.8(b) [Capital  Requirements] and delivered to the Borrower shall be conclusive absent manifest error.  The  Borrower shall pay such Lender or the Issuing Lender, as the case may be, the amount shown as  due on any such certificate within twenty (20) days after receipt thereof.  (d) Delay in Requests.  Failure or delay on the part of any Lender or the Issuing  Lender to demand compensation pursuant to this Section shall not constitute a waiver of such  Lender’s or the Issuing Lender’s right to demand such compensation, provided that the Borrower  shall not be required to compensate a Lender or the Issuing Lender pursuant to this Section for any  increased costs incurred or reductions suffered more than six months prior to the date that such  Lender or the Issuing Lender, as the case may be, notifies the Borrower of the Change in Law  giving rise to such increased costs or reductions and of such Lender’s or the Issuing Lender’s  intention to claim compensation therefor (except that, if the Change in Law giving rise to such  increased costs or reductions is retroactive, then the six (6) month period referred to above shall  be extended to include the period of retroactive effect thereof).  5.9 Taxes.  (a) Issuing Lender.  For purposes of this Section 5.9, the term “Lender”  includes the Issuing Lender and the term “applicable Law” includes FATCA.  

 

  60  165778087  (b) Payments Free of Taxes.  Any and all payments by or on account of any  obligation of any Borrower under any Loan Document shall be without deduction or withholding  for any Taxes, except as required by applicable Law.  If any applicable Law (as determined in the  good faith discretion of an applicable Withholding Agent) requires the deduction or withholding  of any Tax from any such payment by a Withholding Agent, then the applicable Withholding  Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount  deducted or withheld to the relevant Governmental Authority in accordance with applicable Law  and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased  as necessary so that after such deduction or withholding has been made (including such deductions  and withholdings applicable to additional sums payable under this Section 5.9 [Taxes]) the  applicable Recipient receives an amount equal to the sum it would have received had no such  deduction or withholding been made.  (c) Payment of Other Taxes by the Borrower.  The Borrower shall timely pay  to the relevant Governmental Authority in accordance with applicable Law, or at the option of the  Administrative Agent timely reimburse it for the payment of, any Other Taxes.  (d) Indemnification by the Borrower.  The Borrower shall indemnify each  Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes  (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this  Section 5.9 [Taxes]) payable or paid by such Recipient or required to be withheld or deducted from  a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto,  whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the  relevant Governmental Authority.  A certificate as to the amount of such payment or liability  delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the  Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent  manifest error.  (e) Indemnification by the Lenders.  Each Lender shall severally indemnify the  Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes  attributable to such Lender (but only to the extent that any Borrower has not already indemnified  the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the  Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the  provisions of Section 11.8(d) [Participations] relating to the maintenance of a Participant Register,  and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by  the Administrative Agent in connection with any Loan Document, and any reasonable expenses  arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally  imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of  such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive  absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and  apply any and all amounts at any time owing to such Lender under any Loan Document or  otherwise payable by the Administrative Agent to the Lender from any other source against any  amount due to the Administrative Agent under this Section (e) [Indemnification by the Lenders].  (f) Evidence of Payments.  As soon as practicable after any payment of Taxes  by any Borrower to an Governmental Authority pursuant to this Section 5.9 [Taxes], such  Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt  

 

  61  165778087  issued by such Governmental Authority evidencing such payment, a copy of the return reporting  such payment or other evidence of such payment reasonably satisfactory to the Administrative  Agent.  (g) Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of  withholding Tax with respect to payments made under any Loan Document shall deliver to the  Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower  or the Administrative Agent, such properly completed and executed documentation reasonably  requested by the Borrower or the Administrative Agent as will permit such payments to be made  without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably  requested by the Borrower or the Administrative Agent, shall deliver such other documentation  prescribed by applicable Law or reasonably requested by the Borrower or the Administrative  Agent as will enable the Borrower or the Administrative Agent to determine whether or not such  Lender is subject to backup withholding or information reporting requirements.  Notwithstanding  anything to the contrary in the preceding two sentences, the completion, execution and submission  of such documentation (other than such documentation set forth in Section 5.9(g)(ii)A, 5.9(g)(ii)B  and (ii)D below) shall not be required if in the Lender’s reasonable judgment such completion,  execution or submission would subject such Lender to any material unreimbursed cost or expense  or would materially prejudice the legal or commercial position of such Lender.  (ii) Without limiting the generality of the foregoing, in the event that the  Borrower is a U.S.  Borrower,  A. any Lender that is a U.S.  Person shall deliver to the  Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a  Lender under this Agreement (and from time to time thereafter upon the reasonable request of the  Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such  Lender is exempt from U.S.  federal backup withholding tax;  B. any Foreign Lender shall, to the extent it is legally entitled  to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall  be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a  Lender under this Agreement (and from time to time thereafter upon the reasonable request of the  Borrower or the Administrative Agent), whichever of the following is applicable:  (1) in the case of a Foreign Lender claiming the benefits  of an income tax treaty to which the United States is a party (x) with respect to payments of interest  under any Loan Document, executed originals of IRS Form W-8BEN establishing an exemption  from, or reduction of, U.S.  federal withholding Tax pursuant to the “interest” article of such tax  treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form  W-8BEN establishing an exemption from, or reduction of, U.S.  federal withholding Tax pursuant  to the “business profits” or “other income” article of such tax treaty;  (2) executed originals of IRS Form W-8ECI;  

 

  62  165778087  (3) in the case of a Foreign Lender claiming the benefits  of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate  substantially in the form of Exhibit 5.9(g)(A) to the effect that such Foreign Lender is not (A) a  “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of  the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign  corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance  Certificate”) and (y) executed originals of IRS Form W-8BEN; or  (4) to the extent a Foreign Lender is not the beneficial  owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form  W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit 5.9(g)(B) or  Exhibit 5.9(g)(C), IRS Form W-9, and/or other certification documents from each beneficial  owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct  or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such  Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit  5.9(g)(D) on behalf of each such direct and indirect partner;  C. any Foreign Lender shall, to the extent it is legally entitled  to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall  be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a  Lender under this Agreement (and from time to time thereafter upon the reasonable request of the  Borrower or the Administrative Agent), executed originals of any other form prescribed by  applicable Law as a basis for claiming exemption from or a reduction in U.S.  federal withholding  Tax, duly completed, together with such supplementary documentation as may be prescribed by  applicable Law to permit the Borrower or the Administrative Agent to determine the withholding  or deduction required to be made; and  D. if a payment made to a Lender under any Loan Document  would be subject to U.S.  federal withholding Tax imposed by FATCA if such Lender were to fail  to comply with the applicable reporting requirements of FATCA (including those contained in  Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower  and the Administrative Agent at the time or times prescribed by law and at such time or times  reasonably requested by the Borrower or the Administrative Agent such documentation prescribed  by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such  additional documentation reasonably requested by the Borrower or the Administrative Agent as  may be necessary for the Borrower and the Administrative Agent to comply with their obligations  under FATCA and to determine that such Lender has complied with such Lender’s obligations  under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for  purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the  date of this Agreement.  Each Lender agrees that if any form or certification it previously delivered expires or becomes  obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify  the Borrower and the Administrative Agent in writing of its legal inability to do so.  (h) Treatment of Certain Refunds.  If any party determines, in its sole discretion  exercised in good faith, that it has received a refund of any Taxes as to which it has been  

 

  63  165778087  indemnified pursuant to this Section 5.9 [Taxes] (including by the payment of additional amounts  pursuant to this Section 5.9 [Taxes]), it shall pay to the indemnifying party an amount equal to  such refund (but only to the extent of indemnity payments made under this Section 5.9 [Taxes]  with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including  Taxes) of such indemnified party and without interest (other than any interest paid by the relevant  Governmental Authority with respect to such refund).  Such indemnifying party, upon the request  of such indemnified party incurred in connection with obtaining such refund, shall repay to such  indemnified party the amount paid over pursuant to this Section 5.9(h) [Treatment of Certain  Refunds] (plus any penalties, interest or other charges imposed by the relevant Governmental  Authority) in the event that such indemnified party is required to repay such refund to such  Governmental Authority.  Notwithstanding anything to the contrary in this Section 5.9(h)  [Treatment of Certain Refunds], in no event will the indemnified party be required to pay any  amount to an indemnifying party pursuant to this Section (h) [Treatment of Certain Refunds] the  payment of which would place the indemnified party in a less favorable net after-Tax position than  the indemnified party would have been in if the Tax subject to indemnification and giving rise to  such refund had not been deducted, withheld or otherwise imposed and the indemnification  payments or additional amounts with respect to such Tax had never been paid.  This paragraph  shall not be construed to require any indemnified party to make available its Tax returns (or any  other information relating to its Taxes that it deems confidential) to the indemnifying party or any  other Person.  (i) Survival.  Each party’s obligations under this Section 5.9 [Taxes] shall  survive the resignation of the Administrative Agent or any assignment of rights by, or the  replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or  discharge of all Obligations.  5.10 Indemnity.  In addition to the compensation or payments required by Section 5.8  [Increased Costs] or Section 5.9 [Taxes], the Borrower shall indemnify each Lender against all  liabilities, losses or expenses (including loss of anticipated profits, any foreign exchange losses  and any loss or expense arising from the liquidation or reemployment of funds obtained by it to  maintain such Loan, from fees payable to terminate the deposits from which such funds were  obtained or from the performance of any foreign exchange contract) which such Lender sustains  or incurs as a consequence of any:  (i) payment, prepayment, conversion or renewal of any Loan to which  the Term SOFR Rate Option applies on a day other than the last day of the corresponding Interest  Period (whether or not such payment or prepayment is mandatory, voluntary or automatic and  whether or not such payment or prepayment is then due),  (ii) attempt by the Borrower to revoke (expressly, by later inconsistent  notices or otherwise) in whole or part any Loan Requests under Section 2.6 [Revolving Credit  Loan Requests; Loan Conversions and Renewals; Swing Loan Requests] or notice relating to  prepayments under Section 5.6 [Voluntary Prepayments] or failure by the Borrower (for a reason  other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any  Loan other than a Loan under the Base Rate Option or Daily SOFR Option on the date or in the  amount notified by the Borrower,  

 

  64  165778087  (iii) default by the Borrower in the performance or observance of any  covenant or condition contained in this Agreement or any other Loan Document, including any  failure of the Borrower to pay when due (by acceleration or otherwise) any principal, interest,  Commitment Fee or any other amount due hereunder, or  (iv) any assignment of a Loan under the Term SOFR Rate Option on a  day other than the last day of the Interest Period therefor as a result of a request by the Borrower  pursuant to Section 5.6(b) [Replacement of a Lender].  If any Lender sustains or incurs any such loss or expense, it shall from time to time  notify the Borrower of the amount determined in good faith by such Lender (which determination  may include such assumptions, allocations of costs and expenses and averaging or attribution  methods as such Lender shall deem reasonable) to be necessary to indemnify such Lender for such  loss or expense.  Such notice shall set forth in reasonable detail the basis for such determination.   Such amount shall be due and payable by the Borrower to such Lender ten (10) Business Days  after such notice is given.  5.11 Settlement Date Procedures.  In order to minimize the transfer of funds between the  Lenders and the Administrative Agent, the Borrower may borrow, repay and reborrow Swing  Loans and PNC may make Swing Loans as provided in Section 2.1(b) [Swing Loan Commitments]  hereof during the period between Settlement Dates.  The Administrative Agent shall notify each  Lender of its Ratable Share of the total of the Revolving Credit Loans and the Swing Loans (each  a “Required Share”).  On such Settlement Date, each Lender shall pay to the Administrative  Agent the amount equal to the difference between its Required Share and its Revolving Credit  Loans, and the Administrative Agent shall pay to each Lender its Ratable Share of all payments  made by the Borrower to the Administrative Agent with respect to the Revolving Credit Loans.   The Administrative Agent shall also effect settlement in accordance with the foregoing sentence  on the proposed Borrowing Dates for Revolving Credit Loans and may at its option effect  settlement on any other Business Day.  These settlement procedures are established solely as a  matter of administrative convenience, and nothing contained in this Section 5.11 shall relieve the  Lenders of their obligations to fund Revolving Credit Loans on dates other than a Settlement Date  pursuant to Section 2.1(b) [Swing Loan Commitment].  The Administrative Agent may at any time  at its option for any reason whatsoever require each Lender to pay immediately to the  Administrative Agent such Lender’s Ratable Share of the outstanding Revolving Credit Loans and  each Lender may at any time require the Administrative Agent to pay immediately to such Lender  its Ratable Share of all payments made by the Borrower to the Administrative Agent with respect  to the Revolving Credit Loans.  6. REPRESENTATIONS AND WARRANTIES  The Borrower represents and warrants to the Administrative Agent and each of the Lenders  as follows:  6.1 Existence, Qualification and Power.  The Borrower (a) is duly organized, validly  existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation,  (b) has all requisite power and authority and all requisite governmental licenses, authorizations,  consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute,  

 

  65  165778087  deliver and perform its obligations under the Loan Documents, and (c) is duly qualified and is  licensed and, as applicable, in good standing under the Laws of each jurisdiction where its  ownership, lease or operation of properties or the conduct of its business requires such qualification  or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so  could not reasonably be expected to have a Material Adverse Effect.  6.2  Authorization; No Contravention.  The execution, delivery and performance by the  Borrower of each Loan Document, have been duly authorized by all necessary corporate action,  and do not and will not (a) contravene the terms of any of the Borrower’s Organization Documents;  (b) conflict with or result in any contravention of, or the creation of any Lien under, or require any  payment to be made under (i) any Contractual Obligation to which the Borrower is a party or the  Borrower or the properties of the Borrower or any of its Subsidiaries is bound or (ii) any order,  injunction, writ or decree of any Governmental Authority or any arbitral award to which the  Borrower or its property is subject; or (c) violate any Law, except in any case referred to in clause  (b) or (c), to the extent the failure to do so could not reasonably be expected to have a Material  Adverse Effect.  6.3 Governmental Authorization; Other Consents.  No approval, consent, exemption,  authorization, or other action by, or notice to, or filing with, any Governmental Authority or any  other Person is necessary or required in connection with the execution, delivery or performance  by, or enforcement against, the Borrower of this Agreement or any other Loan Document, except  for such approvals, consents, exemptions, authorizations, actions, notices and filings (a) that have  been obtained or made on or before the Closing Date and are in full force and effect, and (b) from  PUCO which are necessary or required annually in order to permit the Borrower to incur or keep  outstanding Obligations hereunder.  6.4 Binding Effect.  This Agreement has been, and each other Loan Document, when  delivered hereunder, will have been, duly executed and delivered by the Borrower.  This  Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal,  valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with  its terms, subject to Debtor Relief Laws and general equity and public policy principles.  6.5 Financial Statements; No Material Adverse Effect.  (a) The Audited Financial Statements (i) were prepared in accordance with  GAAP consistently applied throughout the period covered thereby, except as otherwise expressly  noted therein; (ii) fairly present in all material respects the financial condition of the Borrower and  its Subsidiaries as of the date thereof and their results of operations for the period covered thereby  in accordance with GAAP consistently applied throughout the period covered thereby, except as  otherwise expressly noted therein; and (iii) show all material indebtedness and other liabilities,  direct or contingent, of the Borrower and its Subsidiaries as of the date thereof, including liabilities  for Taxes, material commitments and Indebtedness (other than any liability incident to any  litigation, arbitration or proceeding that could not reasonably be expected to have a Material  Adverse Effect).  (b) The unaudited consolidated balance sheets of the Borrower and its  Subsidiaries dated September 30, 2022, and the related consolidated statements of income or  

 

  66  165778087  operations, shareholders’ equity and cash flows for the fiscal quarter ended on that date (i) were  prepared in accordance with GAAP consistently applied throughout the period covered thereby,  except as otherwise expressly noted therein, and (ii) fairly present in all material respects the  financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of  operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence  of footnotes and to normal year-end audit adjustments.  (c) Since the date of the Audited Financial Statements, there has been no event  or circumstance, either individually or in the aggregate, that has had or could reasonably be  expected to have a Material Adverse Effect.  6.6 Litigation.  (a) There are no actions, suits, proceedings, claims or disputes pending or, to  the knowledge of the Borrower, threatened, at law, in equity, in arbitration or before any  Governmental Authority, by or against the Borrower or any of its Subsidiaries that (i) question the  validity or the enforceability of the Loan Documents, or any of any action to be taken by the  Borrower pursuant to any of the Loan Documents, or (ii) either individually or in the aggregate,  could reasonably be expected to have a Material Adverse Effect.  (b) No action, suit, proceeding or investigation has been instituted, or to the  knowledge of the Borrower or any of its Subsidiaries, threatened, and no rule, regulation, order,  judgment or decree has been issued or proposed to be issued by any Governmental Authority that,  solely as a result of the incurrence of Obligations or the entering into this Agreement or any other  Loan Document or any transaction contemplated hereby or thereby, would cause or deem the  Administrative Agent, any Lenders or any of their respective Affiliates to be subject to, or not  exempted from, regulation under the FPA.  6.7 No Default.  The Borrower and each Subsidiary are in full compliance with all  material terms, covenants and conditions of each of its Contractual Obligations, except for any  noncompliance that could not, either individually or in the aggregate, reasonably be expected to  have a Material Adverse Effect.  No Potential Default has occurred and is continuing or would  result from the consummation of the transactions contemplated by this Agreement or any other  Loan Document.  6.8 Ownership of Property.  The Borrower and each Subsidiary has good record and  marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used  in the ordinary conduct of its business, except for such defects in title or interest as could not,  individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  6.9 Environmental Compliance.  The Borrower and each of its Subsidiaries is in  compliance with all Environmental Laws governing its business, except to the extent that any such  failure to comply (together with any resulting penalties, fines or forfeitures) would not reasonably  be expected to have a Material Adverse Effect.  All licenses, permits, registrations or approvals  required for the conduct of the business of the Borrower and each of its Subsidiaries under any  Environmental Law have been secured and the Borrower and each of its Subsidiaries is in  substantial compliance therewith, except for such licenses, permits, registrations or approvals the  

 

  67  165778087  failure to secure or to comply therewith is not reasonably likely to have a Material Adverse Effect.   Neither the Borrower nor any of its Subsidiaries has received written notice, or otherwise knows,  that it is in any respect in noncompliance with, breach of or default under any applicable writ,  order, judgment, injunction, or decree to which the Borrower or such Subsidiary is a party or that  would affect the ability of the Borrower or such Subsidiary to operate any real property and no  event has occurred and is continuing that, with the passage of time or the giving of notice or both,  would constitute noncompliance, breach of or default thereunder, except in each such case, such  noncompliance, breaches or defaults as would not reasonably be expected to, in the aggregate,  have a Material Adverse Effect.  There are no claims under any Environmental Law pending or,  to the best knowledge of the Borrower, threatened wherein an unfavorable decision, ruling or  finding would reasonably be expected to have a Material Adverse Effect.  There are no facts,  circumstances, conditions or occurrences on any real property now or at any time owned, leased  or operated by the Borrower or any of its Subsidiaries or on any property adjacent to any such real  property, that are known by the Borrower or as to which the Borrower or any such Subsidiary has  received written notice, that could reasonably be expected:  (i) to form the basis of an  environmental claim against the Borrower or any of its Subsidiaries or any real property of the  Borrower or any of its Subsidiaries; or (ii) to cause such real property to be subject to any  restrictions on the ownership, occupancy, use or transferability of such real property under any  Environmental Law, except in each such case where such claims or restrictions individually or in  the aggregate would not reasonably be expected to have a Material Adverse Effect.  6.10 Insurance.  The properties of the Borrower and its Subsidiaries are insured pursuant  to policies and other bonds which are valid and in full force and effect and which provide adequate  coverage from reputable and financially sound insurers in amounts sufficient to insure the assets  and risks of the Borrower and each such Subsidiary in accordance with prudent business practice  in the industry of such Borrower and Subsidiaries, except where the failure to do so could not  reasonably be expected to result in a Material Adverse Effect.  6.11 Taxes.  The Borrower and its Subsidiaries have filed all Federal, state and other  material tax returns and reports required to be filed, and have paid all material Taxes, assessments,  fees and other governmental charges levied or imposed upon them or their properties, income or  assets otherwise due and payable, except those which are being contested in good faith by  appropriate proceedings diligently conducted and for which adequate reserves have been provided  in accordance with GAAP or the non-payment of which, individually or in the aggregate, could  not reasonably be expected to result in a Material Adverse Effect.  To the Borrower’s knowledge,  there is no proposed tax assessment against the Borrower or any Subsidiary that would, if made,  have a Material Adverse Effect.  6.12 ERISA Compliance.  (a) Each Pension Plan of the Borrower and its Subsidiaries is in compliance in  all material respects with the applicable provisions of ERISA, the Code and other Federal or state  laws.  Neither the Borrower nor any Subsidiary has, or has at any time during the preceding six  years had, an obligation to contribute to a Multiemployer Plan.  Each Pension Plan of the Borrower  and its Subsidiaries that is intended to be a qualified plan under Section 401(a) of the Code has  received a favorable determination letter from the Internal Revenue Service to the effect that the  form of such Pension Plan is qualified under Section 401(a) of the Code and the trust related thereto  

 

  68  165778087  has been determined by the Internal Revenue Service to be exempt from federal income tax under  Section 501(a) of the Code, or an application for such a letter is currently being processed by the  Internal Revenue Service.  To the best knowledge of the Borrower, nothing has occurred that  would prevent or cause the loss of such tax-qualified status.  (b) There are no pending or, to the best knowledge of the Borrower, threatened  claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Pension  Plan of the Borrower and its Subsidiaries that could reasonably be expected to have a Material  Adverse Effect.  There has been no nonexempt prohibited transaction or violation of the fiduciary  responsibility rules with respect to any Pension Plan of the Borrower and its Subsidiaries that has  resulted or could reasonably be expected to result in a Material Adverse Effect.  (c) (i) No ERISA Event with respect to any Pension Plan of the Borrower or its  Subsidiaries has occurred, and neither the Borrower nor any Subsidiary is aware of any fact, event  or circumstance that could reasonably be expected to constitute or result in an ERISA Event with  respect to any such Pension Plan except as could reasonably be expected individually or in the  aggregate not to exceed $50,000,000; (ii) the Borrower and each Subsidiary has met in all material  respects all applicable requirements under the Pension Funding Rules in respect of each Pension  Plan of the Borrower and its Subsidiaries, and no waiver of the minimum funding standards under  the Pension Funding Rules has been applied for or obtained; (iii) as of the most recent valuation  date for any Pension Plan of the Borrower and its Subsidiaries, the funding target attainment  percentage (as defined in Section 430(d)(2) of the Code) is 60% or higher and neither the Borrower  nor any Subsidiary knows of any facts or circumstances that could reasonably be expected to cause  the funding target attainment percentage for any such Pension Plan to drop below 60% as of the  most recent valuation date; (iv) neither the Borrower nor any Subsidiary has incurred any liability  to the PBGC other than for the payment of premiums, and there are no premium payments which  have become due that are unpaid; (v) neither the Borrower nor any Subsidiary has engaged in a  transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (vi) no Pension  Plan of the Borrower and its Subsidiaries has been terminated by the plan administrator thereof  nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be  expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any  such Pension Plan.  (d) For the avoidance of doubt, references to “Pension Plan” and “Multiemployer Plan”  in this Section 6.12 refer only to Pension Plans and Multiemployer Plans of the Borrower and its  Subsidiaries and do not refer to the Pension Plans or Multiemployer Plans of other ERISA  Affiliates of the Borrower and its Subsidiaries.  6.13 Subsidiaries.  As of the Closing Date, the Borrower has no Subsidiaries.  6.14 Margin Regulations; Investment Company Act; Federal Power Act.  (a) The Borrower is not engaged and will not engage, principally or as one of  its important activities, in the business of purchasing or carrying margin stock (within the meaning  of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying  margin stock.  

 

  69  165778087  (b) None of the Borrower, any Person Controlling the Borrower, or any  Subsidiary is or is required to be registered as an “investment company” under the Investment  Company Act of 1940, as amended.  (c) None of the Borrower or any of its Subsidiaries, or any Affiliate of any of  them, is subject to regulation under the FPA or under applicable state or other Laws respecting the  rates or the financial or organizational regulation of electric utilities, as a result of the creation or  incurrence of the Obligations or entering into this Agreement or any other Loan Document or the  consummation of any transaction contemplated hereby or thereby.  6.15 Disclosure.  No report, financial statement, certificate or other information (other  than projections and forward-looking information and information of a general economic nature  or industry nature) furnished by or on behalf of the Borrower to the Administrative Agent or any  Lender in writing in connection with the transactions contemplated hereby or delivered hereunder  or under any other Loan Document (in each case, as modified or supplemented by other  information so furnished) contains any material misstatement of fact or omits to state any material  fact necessary to make the statements therein (when so furnished and taken as a whole), in the light  of the circumstances under which they were made, not materially misleading; provided that, with  respect to projected financial information, the Borrower represents only that such information was  prepared in good faith based upon assumptions believed to be reasonable at the time; it being  recognized by the Administrative Agent and the Lenders that such projections as to future events  are not to be viewed as facts and that actual results during the period or periods covered by any  such projections may differ materially from the projected results.  6.16 Compliance with Laws.  The Borrower and each Subsidiary is in compliance in all  material respects with the requirements of all Laws and all orders, writs, injunctions and decrees  applicable to it or to its properties, except in such instances in which (a) such requirement of Law  or order, writ, injunction or decree is being contested in good faith by appropriate proceedings  diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate,  could not reasonably be expected to have a Material Adverse Effect.  6.17 Intellectual Property; Licenses, Etc.  The Borrower and its Subsidiaries own, or  possess the right to use, all of the material trademarks, service marks, trade names, copyrights,  patents, patent rights, franchises, licenses and other intellectual property rights (collectively, “IP  Rights”) that are necessary for the operation of their respective businesses, without any known  conflict with the rights of any other Person, except for any IP Rights or any conflicts that, either  individually or in the aggregate, could not reasonably be expected to have a Material Adverse  Effect.  6.18 Solvency.  The Borrower is not insolvent as defined in any applicable state or  federal statute, nor will the Borrower be rendered insolvent by the execution and delivery of this  Agreement or any other Loan Document to the Administrative Agent and the Lenders or the  performance of its obligations hereunder or thereunder.  6.19 Employment Matters.  The Borrower is in compliance with all employment  agreements, employment contracts, collective bargaining agreements and other agreements  between the Borrower and its employees (collectively, “Labor Contracts”) and all applicable  

 

  70  165778087  Federal, state and local labor and employment Laws including those related to equal employment  opportunity and affirmative action, labor relations, minimum wage, overtime, child labor, medical  insurance continuation, worker adjustment and retraining notices, immigration controls and  worker and unemployment compensation, where the failure to comply would constitute a Material  Adverse Effect.  There are no outstanding grievances, arbitration awards or appeals therefrom  arising out of the Labor Contracts or current or threatened strikes, picketing, handbilling or other  work stoppages or slowdowns at facilities of the Borrower which in any case would constitute a  Material Adverse Effect.  6.20 OFAC.  Neither the Borrower, nor any of its Subsidiaries, nor, to the knowledge of  the Borrower and its Subsidiaries, any director, officer, employee, agent, affiliate or representative  thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that  is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially  Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment  Ban List, or any similar list enforced by any other relevant sanctions authority or (iii) located,  organized or resident in a Designated Jurisdiction.  The Borrower will not directly or, to the  knowledge of the Borrower, indirectly use the proceeds of the Loans or Letters of Credit or  otherwise make available such proceeds to any Person, for the purpose of financing activities or  business of or with any Person described in clauses (i), (ii) or (iii) above or in any country or  territory that, at the time of such financing, is a Designated Jurisdiction.  6.21 Anti-Corruption Laws.  The Borrower and its Subsidiaries have conducted their  businesses in compliance in all material respects with the United States Foreign Corrupt Practices  Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other  jurisdictions and have instituted and maintained policies and procedures designed to promote and  achieve compliance with such laws in all material respects.  No part of the proceeds of any Loan  or any Letter of Credit will be used, directly or, to the knowledge of the Borrower, indirectly, for  any payments to any governmental official or employee, political party, official of a political party,  candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain  or direct business or obtain any improper advantage, in violation of the U.S. Foreign Corrupt  Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in  other jurisdictions.  7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT  The effectiveness of this Agreement shall be subject to the satisfaction or waiver of the  following further conditions:  7.1 Conditions Precedent to Effectiveness of this Agreement.  (a) Deliveries.  On the Closing Date, the Administrative Agent shall have  received each of the following in form and substance reasonably satisfactory to the Administrative  Agent:  (i) A certificate of the Borrower signed by an Authorized Officer, dated  as of the Closing Date stating (v) all representations and warranties of the Borrower set forth in  this Agreement are true and correct in all material respects, (w) the Borrower is in compliance with  

 

  71  165778087  each of the covenants and conditions hereunder, (x) no Event of Default or Potential Default exists,  (y) no Material Adverse Effect has occurred since the date of the Audited Financial Statements of  the Borrower delivered to the Administrative Agent and (z) the Rating of the Borrower by each  Rating Agency (provided that no confirmation by the Rating Agencies shall be required);  (ii) A certificate dated the Closing Date and signed by the Secretary or  an Assistant Secretary of the Borrower, certifying as appropriate as to: (A) all action taken by the  Borrower in connection with this Agreement and the other Loan Documents; (B) the names of the  Authorized Officers authorized to sign the Loan Documents and their true signatures; and (C)  copies of its organizational documents as in effect on the Closing Date certified by the appropriate  state official where such documents are filed in a state office together with certificates from the  appropriate state officials as to the continued existence and good standing of the Borrower in the  state where organized;  (iii) This Agreement and each of the other Loan Documents signed by  an Authorized Officer;  (iv) A written opinion of counsel for the Borrower (which may be  inhouse counsel with respect to Ohio law), dated the Closing Date, addressed to the Administrative  Agent and each Lender;  (v) Evidence that adequate insurance required to be maintained under  this Agreement is in full force and effect;  (vi) All material governmental consents required to effectuate the  transactions contemplated hereby (or certification from the Borrower there are no such consents);  (vii) Such other documents in connection with such transactions as the  Administrative Agent or said counsel may reasonably request.  (b) Payment of Fees.  The Borrower shall have paid all fees and reasonable and  documented out-of-pocket expenses payable by the Borrower on or before the Closing Date as  required by this Agreement, the Administrative Agent’s Letter or any other Loan Document, in  each case, invoiced at least three (3) Business Days prior to the Closing Date.  (c) USA PATRIOT Act Diligence.  The Administrative Agent and each Lender  shall have received, in form and substance acceptable to the Administrative Agent and each Lender  such documentation and other information requested in connection with applicable “know your  customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act,  that has been requested by the Administrative Agent or any Lender at least ten (10) days prior to  the Closing Date.  7.2 Each Loan or Letter of Credit.  The obligation of each Lender and each Issuing  Lender to honor any Loan Request, Swing Loan Request or issuing, extending or increasing any  Letters of Credit (other than a Loan Request requesting only a conversion of Loans to another  Interest Rate Option, or a continuation of Term SOFR Rate Loans) is subject to the following  conditions precedent:  

 

  72  165778087  (a) The representations and warranties of the Borrower contained in Section 6  shall be true and correct in all material respects on and as of the date of such extension of credit,  except that (i) if a qualifier relating to materiality, Material Adverse Effect or a similar concept  applies, such representation or warranty shall be required to be true and correct in all respects, (ii)  to the extent that such representations and warranties specifically refer to an earlier date, in which  case they shall be true and correct in all material respects as of such earlier date (except that if a  qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such  representation or warranty shall be required to be true and correct in all respects), (iii) for purposes  of this Section 7.2, the representations and warranties contained in subsections (a) and (b) of  Section 6.5 shall be deemed to refer to the most recent statements furnished pursuant to clauses  (a)(i) and (a)(ii), respectively, of Section 8.1 and (iv) the representations and warranties contained  in Section 6.5(c) and 6.6(a)(ii) do not need to be true and correct for any extension of credit after  the initial extension of credit hereunder.  (b) No Potential Default shall exist, or would result from such proposed  extension of credit or from the application of the proceeds thereof.  (c) The Borrower has all approvals, consents and authorizations from PUCO  which are necessary or required in order to permit the Borrower to incur Obligations hereunder.  (d) The Administrative Agent and, if applicable, the applicable Issuing Lender  or the Swing Loan Lender shall have received a Loan Request, Swing Loan Request or Letter of  Credit application, as applicable, in accordance with the requirements hereof.  Each request for an extension of credit (other than a Loan Request requesting only a  conversion of Loans to another Interest Rate Option, or a continuation of Term SOFR Rate Loans)  submitted by the Borrower shall be deemed to be a representation and warranty that the conditions  specified in Sections 7.2(a), (b) and (c) have been satisfied on and as of the date of the applicable  extension of credit.  8. COVENANTS  8.1 Affirmative Covenants.    From the date hereof and thereafter for so long as any Obligations are outstanding or the  Borrower is indebted to the Lenders under any of the Loan Documents and until Payment In Full,  the Borrower shall, and shall (except in the case of the covenants set forth in Sections 8.1(a), (b),  and (c)) cause each of its Subsidiaries to comply with the following affirmative covenants:  (a) Financial Statements.  Deliver to the Administrative Agent and each  Lender:  (i) Quarterly Financial Statements.  As soon as available and in any  event within forty-five (45) calendar days after the end of each of the first three fiscal quarters in  each fiscal year, financial statements of the Borrower, consisting of a consolidated balance sheet  as of the end of such fiscal quarter and related consolidated statements of income, stockholders’  equity and cash flows for the fiscal quarter then ended and the fiscal year through that date, all in  reasonable detail and certified (subject to normal year-end audit adjustments) by the Chief  

 

  73  165778087  Executive Officer, President, any Vice President, Chief Financial Officer, Controller, Treasurer,  or Assistant Treasurer of the Borrower as having been prepared in accordance with GAAP,  consistently applied, and setting forth in comparative form the respective financial statements for  the corresponding date and period in the previous fiscal year;  (ii) Annual Financial Statements.  As soon as available and in any event  within one hundred twenty (120) days after the end of each fiscal year of the Borrower, audited  financial statements of the Borrower consisting of a consolidated balance sheet as of the end of  such fiscal year, and related consolidated statements of income, stockholders’ equity and cash  flows for the fiscal year then ended, all in reasonable detail and setting forth in comparative form  the financial statements as of the end of and for the preceding fiscal year, and certified by  independent certified public accountants of nationally recognized standing reasonably satisfactory  to the Administrative Agent.  The certificate or report of accountants shall be free of qualifications  (other than any consistency qualification that may result from a change in the method used to  prepare the financial statements as to which such accountants concur) and shall not indicate the  occurrence or existence of any event, condition or contingency which would materially impair the  payment or performance of any covenant, agreement or duty of any the Borrower under any of the  Loan Documents;  (b) Certificates; Other Information.  Concurrently with the financial statements  of the Borrower furnished to the Administrative Agent and to the Lenders pursuant to Sections  8.1(a)(i) [Quarterly Financial Statements] and 8.1(a)(ii) [Annual Financial Statements], a  Compliance Certificate of the Borrower signed by the Chief Executive Officer, President, any Vice  President, Chief Financial Officer, Controller, Treasurer, or Assistant Treasurer of the Borrower.  (c) Notices.  (i) Default.  Promptly after any officer of the Borrower has learned of  the occurrence of an Event of Default or Potential Default, a certificate signed by an Authorized  Officer setting forth the details of such Event of Default or Potential Default and the action which  the Borrower proposes to take with respect thereto;  (ii) Litigation.  Promptly after the commencement thereof, notice of all  actions, suits, proceedings or investigations before or by any Governmental Authority or any other  Person against the Borrower or any Subsidiary of the Borrower which involve a claim or series of  claims which could reasonably be expected to result in liability in excess of $25,000,000 or which  if adversely determined would constitute a Material Adverse Effect;  (iii) Organizational Documents.  Promptly and in any event within five  dates thereafter, any amendment to the Articles of Incorporation or Bylaws of the Borrower;  (iv) Erroneous Financial Information.  Promptly in the event that the  Borrower or its accountants conclude or advise that any previously issued financial statement,  audit report or interim review should no longer be relied upon or that disclosure should be made  or action should be taken to prevent future reliance;   (v) ERISA Event.  Promptly upon the occurrence of any ERISA Event;  

 

  74  165778087  (vi) Preferred Stock Filing.  Promptly, written notice of any filing with  the PUCO to seek authority to issue any preferred stock;  (vii) Ratings Change.  Promptly thereafter, any announcement by a  Rating Agency of any change in a Rating; and  (viii) Other Reports.  Promptly upon their becoming available to the  Borrower:  A. Management Letters.  Any reports including management  letters submitted to the Borrower by independent accountants in connection with any annual,  interim or special audit.  B. Other Information.  Such other reports and information as  any of the Lenders may from time to time reasonably request.  (d) Payment of Taxes and Claims.  Pay and discharge prior to the date on which  penalties attach thereto, (i) all material tax liabilities, assessments and governmental charges or  levies upon it or its properties or assets, and (ii) all lawful claims which, if unpaid, would by law  become a Lien upon its property not permitted hereunder, in each case unless the same are being  contested in good faith by appropriate proceedings diligently conducted and adequate reserves in  accordance with GAAP are being maintained by the Borrower or such Subsidiary or, in the case  of clause (ii), the failure to pay or discharge could not reasonably be expected to result in a Material  Adverse Effect.  (e) Preservation of Existence, Etc.  (i) Preserve, renew and maintain in full  force and effect its legal existence and good standing under the Laws of the jurisdiction of its  organization except in a transaction permitted by Section 8.2(c) or (d); (ii) take all reasonable  action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in  the normal conduct of its business, except to the extent that failure to do so could not reasonably  be expected to have a Material Adverse Effect; and (iii) preserve or renew all of its registered  patents, trademarks, trade names and service marks, the non-preservation of which could  reasonably be expected to have a Material Adverse Effect.  (f) Maintenance of Properties.  (i) Maintain, preserve and protect all of its  properties and equipment necessary in the operation of its business in good working order and  condition, ordinary wear and tear excepted; and (ii) make all necessary repairs thereto and renewals  and replacements thereof, except in the case of clauses (i) and (ii) where the failure to do so could  not reasonably be expected to have a Material Adverse Effect (it being understood that this  covenant relates to only to the good working order and repair of such property and equipment and  shall not be construed as a covenant not dispose of any such property or equipment by sale, lease,  transfer or otherwise or to discontinue operation thereof to the extent not prohibited under this  Agreement).  (g) Maintenance of Insurance.  Maintain insurance coverage by such insurers  and in such forms and amounts and against such risks as are generally consistent with the insurance  coverage maintained by the Borrower and its Subsidiaries at the date hereof, except where the  failure to do so could not reasonably be expected to result in a Material Adverse Effect.  

 

  75  165778087  (h) Compliance with Laws.  Comply in all material respects with the  requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its  property, except in such instances in which (i) such requirement of Law or order, writ, injunction  or decree is being contested in good faith by appropriate proceedings diligently conducted; or (ii)  the failure to comply therewith could not reasonably be expected to have a Material Adverse  Effect.  (i) Books and Records.  Maintain proper books of record and account, in which  full, true and correct entries in conformity with GAAP consistently applied shall be made in all  material respects of all financial transactions and matters involving the assets and business of the  Borrower or such Subsidiary, as the case may be.  (j) Inspection Rights.  Permit representatives and independent contractors of  the Administrative Agent and each Lender to visit and inspect (but not to conduct invasive  sampling of environmental media or building materials) any of its material properties, and to  discuss its affairs, finances and accounts with its executive officers and independent public  accountants (provided that the Borrower shall be permitted to attend any such discussions with  such accountants) and, if a Potential Default exists, to examine its books of records and account  and make copies thereof or abstracts therefrom, all at such reasonable times during normal business  hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower;  provided, however, that unless an Event of Default has occurred and is continuing, the Borrower  shall not be required to permit more than one such visit, inspection or examination during any  calendar year.  All costs and expenses incurred by the Administrative Agent or any Lender in  connection with any of the foregoing shall be paid by the Administrative Agent or such Lender, as  the case may be, unless an Event of Default shall have occurred and be continuing at the time such  costs and/or expenses are incurred, in which case all such costs and expenses shall be paid by the  Borrower.  Subject to the proviso above, in the event any Lender desires to visit and inspect the  Borrower or any of its Subsidiaries, such Lender shall make a reasonable effort to conduct such  visit and inspection contemporaneously with any visit and inspection to be performed by the  Administrative Agent or another Lender.  Notwithstanding anything to the contrary in this Section  8.1(j), neither the Borrower nor any of its Subsidiaries will be required to disclose, permit the  inspection, examination or making copies or abstracts of, or discussion of, any document,  information or other matter that (i) constitutes non-financial trade secrets or non-financial  proprietary information, (ii) in respect of which disclosure to the Administrative Agent (or its  representatives) or any Lender (or its representatives) is prohibited by Law or (iii) is subject to  attorney-client or similar privilege or constitutes attorney work product.  (k) Use of Proceeds.  Use the proceeds of the Loans and Letters of Credit for  general corporate purposes, including refinancing existing indebtedness, not in contravention of  any Law or of any Loan Document.  (l) Senior Debt.  Ensure that (i) the claims of the Administrative Agent and the  Lenders in respect of the Obligations of the Borrower will not be subordinate to, and will in all  respects rank at least pari passu with or senior to, the claims of every unsecured creditor of the  Borrower, and (ii) any Indebtedness of the Borrower that is subordinated in any manner to the  claims of any other senior creditor of the Borrower will be subordinated in like manner to such  claims of the Administrative Agent and the Lenders.  

 

  76  165778087  (m) Anti-Corruption Laws.  Conduct its businesses in compliance with the  United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar  anti-corruption legislation in other jurisdictions, and maintain policies and procedures designed to  promote and achieve compliance with such laws.  8.2 Negative Covenants.  From the date hereof and thereafter for so long as any  Obligations are outstanding or the Borrower is indebted to the Lenders under any of the Loan  Documents and until Payment in Full, the Borrower shall not, and shall not permit any of its  Subsidiaries to:  (a) Liens.  Create, incur, assume or suffer to exist any Lien upon any of its  property, assets or revenues, whether now owned or hereafter acquired, other than the following:   (i) Liens pursuant to any Loan Document;  (ii) Liens existing on the date hereof and listed on Schedule 8.2(a) and  any renewals, refinancings or extensions thereof, provided that the principal amount secured or  benefited thereby is not increased;  (iii) Liens for Taxes, assessments or charges or levies on property not  yet delinquent or which are being contested in good faith and by appropriate proceedings diligently  conducted, if adequate reserves with respect thereto are maintained in accordance with GAAP;  (iv) Liens imposed by law, such as carriers’, warehousemen’s,  mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of  business which do not secure obligations overdue for a period of more than 60 days or which are  being contested in good faith and by appropriate proceedings diligently conducted, if adequate  reserves with respect thereto are maintained;  (v) Liens, pledges or deposits in the ordinary course of business in  connection with workers’ compensation, unemployment insurance and other social security  legislation, other than Liens imposed by ERISA;  (vi) deposits to secure the performance of bids, trade contracts and leases  (other than Indebtedness), statutory obligations, surety and appeal bonds, indemnity or  performance bonds and other obligations of a like nature incurred in the ordinary course of  business;  (vii) easements, rights-of-way, zoning, restrictions or other similar  encumbrances or imperfections in title and obligations contained in similar instruments and prior  rights of other Persons which, do not materially interfere with the ordinary conduct of the business  of the Borrower and its Subsidiaries or could not reasonably be expected to have a Material  Adverse Effect;  (viii) Liens securing judgments, decrees or attachments not constituting  an Event of Default under Section 9.1(i);  

 

  77  165778087  (ix) Liens on property of the Borrower securing the DP&L First  Mortgage Bonds and, any amendment, modification, refinancing, replacement or renewal thereof;  (x) Liens on property of the Borrower in connection with collateralized  pollution control bonds;   (xi) Liens on property of the Borrower and its Subsidiaries in connection  with (A) any construction project or generating plant as security for any Indebtedness incurred for  the purpose of financing all or part of such construction project or generating plant, and in each  case, Liens and charges incidental thereto; provided that the aggregate amount of Indebtedness  secured by Liens permitted pursuant to this clause (xi)(A) shall not exceed $50,000,000 at any  time outstanding and (B) security for any Indebtedness incurred for the purpose of financing  capital improvements for any generating plant owned by the Borrower or its Subsidiaries which  the Borrower or such Subsidiary reasonably deems as necessary or advisable in order to comply  with Laws; provided that the aggregate amount of Indebtedness secured by Liens pursuant to  clause (xi)(A) and this clause (xi)(B) shall not exceed $150,000,000 at any time outstanding;  (xii) banker’s liens and rights of setoff arising by operation of law and  contractual rights of setoff;  (xiii) leases or subleases granted in the ordinary course of business to  others not interfering in any material respect with the business of the Borrower or its Subsidiaries  and any interest or title of a lessee under any lease not in violation of this Agreement;  (xiv) purported Liens evidenced by the filing of precautionary Uniform  Commercial Code financing statements relating solely to operating leases of personal property  entered into in the ordinary course of business;  (xv) the right reserved to, or vested in, any municipality or public  authority by the terms of any right, power, franchise, grant, license or permit, or any provision of  law, to purchase or capture or designate a purchaser of any property;  (xvi) Liens with respect to cash collateral deposited by the Borrower and  its Subsidiaries with counterparties in the ordinary course of the Borrower and its Subsidiaries’  purchase and sale of energy, power, Swap Contracts, coal and other commodities;  (xvii) Liens arising from the rights of lessors under leases (including  financing statements regarding property subject to such lease) permitted under this Agreement;  provided that such Liens are only in respect of property subject to, and secure only, the respective  lease (and any other lease with the same or affiliated lessor);  (xviii) any (A) Lien existing on any property at the time such property is  acquired by the Borrower or any of its Subsidiaries or on any property of any Person at the time  such Person becomes, or is merged into, a Subsidiary of the Borrower; provided that (x) such Lien  is not created in contemplation of or in connection with such acquisition or such Person becoming,  or being merged into, such Subsidiary, as the case may be, (y) such Lien shall not attach or apply  to any other property or assets of the Borrower or any of its Subsidiaries, and (z) such Lien shall  secure only those obligations that it secures on the date of such acquisition or the date such Person  

 

  78  165778087  becomes, or is merged into, such Subsidiary, as the case may be, and any extension, renewal,  refunding or refinancing thereof, so long as the aggregate principal amount so extended, renewed,  refunded or refinanced is not increased, and (B) Lien securing Indebtedness in respect of purchase  money obligations for the acquisition, lease, construction or improvement of fixed assets or Capital  Lease obligations, provided that (x) such Lien only attaches to such fixed assets being acquired,  leased, constructed or improved and (y) the Indebtedness secured by such Lien does not exceed  the cost or fair market value, whichever is lower, of the fixed assets being acquired, leased,  constructed or improved on the date of acquisition, lease, construction or improvement; provided  that the aggregate principal amount of Indebtedness at any time outstanding secured by a Lien  described in this subsection (xviii) shall not exceed an amount equal to 5% of the Consolidated  Tangible Assets at such time;  (xix) Liens incurred in connection with an obligation to cash collateralize  letters of credit or swing line loans;   (xx) Liens, in addition to those listed above, securing Indebtedness and  other obligations in an aggregate amount at any time not exceeding $25,000,000; and   (xxi) Liens, in addition to those listed above, provided that any such lien  secures the Indebtedness under this Agreement on an equal and ratable basis.  (b) Investments.  Make any Investments, except:  (i) Investments held by the Borrower or such Subsidiary in the form of  cash or Cash Equivalent or Short-Term Investments;  (ii) loans and advances to officers, directors and employees of the  Borrower or any of its Subsidiaries in an aggregate amount not to exceed $10,000,000 at any time  outstanding, for travel, entertainment, relocation, payroll, office equipment, tuition and analogous  ordinary business purposes;  (iii) Investments of the Borrower in any Subsidiary and Investments of  any Subsidiary in the Borrower or in another Subsidiary;  (iv) Permitted Acquisitions in an amount not to exceed $150,000,000 in  the aggregate during the term of this Agreement;  (v) Investments consisting of extensions of credit in the nature of  accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course  of business, and Investments received in satisfaction or partial satisfaction thereof from financially  troubled account debtors and Investments in account debtors received in connection with a  proceeding under any Debtor Relief Laws in settlement of the obligations of account debtors;  (vi) promissory notes, earn-outs, other contingent payment obligations  and other non-cash consideration received by the Borrower or any of its Subsidiaries as partial  payment of the total consideration of any Disposition made in accordance with Section 8.2(d)(vii);  

 

  79  165778087  (vii) Guaranties of the Borrower or any Subsidiary in respect of (i)  Indebtedness of the Borrower or any Subsidiary permitted under this Section 8.2(b) and (ii)  ordinary course of business obligations of the Borrower or any Subsidiary that do not constitute  Indebtedness;  (viii) Investments comprised of the purchase of receivables from other  energy marketers as required from time to time by one or more applicable Official Bodies;  (ix) Investments existing on the date hereof and set forth on Schedule  8.2(b);  (x) Investments in investment-grade issuers that are held by the  Borrower or any Subsidiary not longer than eighteen months;  (xi) other Investments not otherwise permitted hereunder in an amount  not to exceed $25,000,000, in the aggregate at any time outstanding;  (xii) Guaranties, in addition to those listed above, provided that, this  Agreement is also Guarantied on an equal and ratable basis;   (xiii) so long as no Potential Default shall have occurred and be  continuing, the Borrower may make intercompany loans to any of its Affiliates (other than a direct  or indirect Subsidiary), if at the time of such action (and taking into account such action), either  (A) (x) the ratio of Consolidated Total Debt to Consolidated Total Capitalization of Parent is not  greater than 0.67 to 1.00 and (y) the ratio of Consolidated EBITDA to Consolidated Interest  Charges of Parent is not less than 2.5 to 1.00, or (B) Parent’s senior unsecured long-term debt at  the time of such action shall be at least Investment Grade; and  (xiv) any Investment made by a captive insurance company Subsidiary  that is a legal investment for an insurance company under the laws of the jurisdiction in which  such captive insurer is formed and made in the ordinary course of business.  (c) Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into  another Person, or Dispose of (whether in one transaction or in a series of transactions, including  by way of an LLC Division) all or substantially all of its assets (whether now owned or hereafter  acquired) to or in favor of any Person, except that:  (i) any Subsidiary may merge, dissolve, liquidate or consolidate with  or into (A) the Borrower, provided that the Borrower shall be the continuing or surviving Person,  or (B) any one or more other Subsidiaries;  (ii) any Subsidiary may Dispose of all or substantially all of its assets  (upon voluntary liquidation or otherwise) to the Borrower or to another Subsidiary; provided that  if the transferor in such a transaction is a wholly-owned Subsidiary, then the transferee must either  be the Borrower or a wholly-owned Subsidiary;  (iii) any Subsidiary may merge with any Person (other than the Borrower  or a Subsidiary) in a transaction permitted by Section 8.2(b)(iv); provided that (A) the Subsidiary  

 

  80  165778087  shall be the continuing or surviving Person and (B) immediately before and after such merger there  shall not exist any Potential Default or Event of Default;  (iv) the Borrower and any Subsidiary may liquidate or dissolve (A)  Immaterial Subsidiaries and (B) Persons whose assets are sold in a Disposition permitted by  Section 8.2(d);   (v) the Borrower may merge with any Person (other than a Subsidiary)  in a transaction permitted by Section 8.2(b)(iv); provided that (A) the Borrower shall be the  continuing or surviving Person and (B) immediately before and after such merger there shall not  exist any Potential Default or Event of Default; and  (vi) the Borrower and any Subsidiary may make dispositions of all or  substantially all of the assets of a Subsidiary that do not constitute all or substantially all of the  assets of the Borrower and its Subsidiaries taken as a whole in a transaction permitted by Section  8.2(d).  (d) Dispositions.  Make any Disposition or enter into any agreement to make  any Disposition, except:  (i) Dispositions of surplus, obsolete or worn out property, whether now  owned or hereafter acquired, in the ordinary course of business;  (ii) Dispositions of inventory in the ordinary course of business;  (iii) Dispositions of equipment or real property to the extent that (A)  such property is exchanged for credit against the purchase price of similar replacement property  or (B) the proceeds of such Disposition are reasonably promptly applied to the purchase price of  such replacement property;  (iv) Dispositions of property by any Subsidiary to the Borrower or to a  wholly-owned Subsidiary;   (v) Dispositions permitted by Sections 8.2(a), (b) and (c);   (vi) Dispositions of property having a fair market value of less than  $5,000,000 individually;  (vii) Dispositions by the Borrower and its Subsidiaries not otherwise  permitted under this Section 8.2(d) so long as (A) the aggregate amount (based upon the fair market  value of the assets) of all property sold or otherwise disposed pursuant to all such Dispositions on  and after the Closing Date at the time of and after giving effect to any such Disposition does not  constitute a Substantial Portion of the property of the Borrower and its Subsidiaries and (B) at least  75% of the total consideration received by the Borrower or any of its Subsidiaries, as applicable,  for such Disposition or series of Dispositions consists of cash or cash equivalents; and  

 

  81  165778087  (viii) Dispositions of interests held by the Borrower and its Subsidiaries  in electricity generating units to tenants-in-common (or Affiliates thereof) in exchange for  reasonably equivalent tenants-in-common interests in other electricity generating units.  provided, however, that any Disposition pursuant to clauses (i) through (vii) shall be for fair market  value.  (e) Change in Nature of Business.  Engage in any business if, as a result, the  general nature of the business, taken on a consolidated basis, that would then be engaged in by the  Borrower and its Subsidiaries would be substantially changed from the general nature of the  business engaged in by the Borrower and its Subsidiaries on the Closing Date.  (f) Transactions with Affiliates.  Enter into any transaction of any kind with  any Affiliate of the Borrower, whether or not in the ordinary course of business, other than on fair  and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be  obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction  with a Person other than an Affiliate; provided that the foregoing restriction shall not apply to (i)  transactions between or among the Borrower and any of its Subsidiaries or between and among  any Subsidiaries, (ii) sales of goods by the Borrower or any of its Subsidiaries to an Affiliate for  use or distribution outside the United States that in the good faith judgment of the Borrower  complies with any applicable legal requirements of the Code, (iii) agreements and transactions  with and payments to officers, directors and shareholders that are either (A) entered into in the  ordinary course of business and not prohibited by any of the provisions of this Agreement or (B)  entered into outside the ordinary course of business, approved by the directors or shareholders of  the Borrower, and not prohibited by any of the provisions of this Agreement, (iv) the issuances of  securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the  funding of, employment arrangements, stock option and stock ownership plans or similar  employee benefit plans and other compensation arrangements with respect to the procurement of  services with their respective officers and employees, and any employment agreements entered  into by Borrower or any Subsidiary, in each case approved by the Borrower or any Subsidiary in  good faith, or (v) that certain Services Agreement, dated December 23, 2013 (effective January 1,  2014), among AES US Services, LLC, Parent, and certain affiliates thereof, for the provision of  various services to the Borrower including accounting, legal, human resources, information  technology and similar services, and any amendment thereto.   (g) [Reserved].  (h) Swap Agreements.  Enter into any Swap Contract other than any Swap  Contract entered into by such Person pursuant to which such Person has hedged its reasonably  estimated interest rate, foreign currency or power and other commodity exposure, and not for  speculative purposes.  (i) Use of Proceeds.  Use the proceeds of any Letters of Credit and the proceeds  of the Loans, whether directly or indirectly, and whether immediately, incidentally or ultimately,  to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend  credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness  originally incurred for such purpose.  

 

  82  165778087  (j) Accounting Changes.  Make any change in its fiscal year.  (k) Financial Covenants.  Permit the ratio of Consolidated Total Debt to  Consolidated Total Capitalization at any time to be greater than 0.67 to 1.00.  9. DEFAULT  9.1 Events of Default.  An Event of Default shall mean the occurrence or existence of  any one or more of the following events or conditions:  (a) Non-Payment.  The Borrower fails to pay (i) when and as required to be  paid herein, any amount of principal of any Loan or any Letter of Credit Obligation or (ii) within  five days after the same becomes due, any interest on any Loan or on any Letter of Credit  Obligation, any fee due hereunder or under any other Loan Document or any other amount payable  hereunder or under any other Loan Document; or  (b) Specific Covenants.  The Borrower fails to perform or observe any term,  covenant or agreement contained in any of Section 8.1(a), 8.1(c)(i) or (ii), 8.1(e) (solely with  respect to the Borrower), 8.1(k) or 8.1(l) or Section 8.2; or  (c) Additional Covenants.  The Borrower fails to perform or observe any term,  covenant or agreement contained in any of Section 8.1(b) or 8.1(j) and such failure continues for  fifteen (15) days; or  (d) Other Defaults.  The Borrower fails to perform or observe any other  covenant or agreement (not specified in subsection (a), (b) or (c) above) contained in any Loan  Document on its part to be performed or observed and such failure continues for 30 days after  notice thereof from the Administrative Agent to the Borrower; or  (e) Representations and Warranties.  Any representation, warranty,  certification or statement of fact made or deemed made by or on behalf of the Borrower herein, in  any other Loan Document, or in any document delivered in connection herewith or therewith shall  be incorrect or misleading in any material respect (except that if a qualifier relating to materiality,  Material Adverse Effect or a similar concept applies, such representation or warranty shall be  required to be true and correct in all respects) when made or deemed made; or  (f) Cross-Default.  (i) The Borrower or any Subsidiary (A) defaults in any  payment (whether by scheduled maturity, required prepayment, acceleration, demand, or  otherwise and after applicable notices have been given and grace periods have expired) in respect  of any Indebtedness or Guaranty (other than Indebtedness hereunder and Indebtedness under Swap  Contracts) having an aggregate outstanding principal amount (including amounts owing to all  creditors under any combined or syndicated credit arrangement) of more than $50,000,000, or (B)  defaults in the performance of any other agreement or condition relating to any such Indebtedness  or Guaranty or contained in any instrument or agreement evidencing, securing or relating thereto  (after all applicable notices have been given and grace periods have expired), or any other event  occurs, the effect of which default or other event is to cause, or to permit the holder or holders of  such Indebtedness or the beneficiary or beneficiaries of such Guaranty (or a trustee or agent on  behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice  

 

  83  165778087  if required and after all applicable grace periods have expired, such Indebtedness to be demanded  or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise),  or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its  stated maturity, or such Guaranty to become payable or cash collateral in respect thereof to be  demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in  such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which  the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B)  any Termination Event (as so defined) under such Swap Contract as to which the Borrower or any  Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value  owed by the Borrower or such Subsidiary as a result thereof is greater than $50,000,000; or   (g) Insolvency Proceedings, Etc.  The Borrower or any of its Subsidiaries  institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes  an assignment for the benefit of creditors; or applies for or consents to the appointment of any  receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all  or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator,  rehabilitator or similar officer is appointed without the application or consent of such Person and  the appointment continues undischarged or unstayed for 60 consecutive calendar days; or any  proceeding under any Debtor Relief Law relating to any such Person or to all or any material part  of its property is instituted without the consent of such Person and continues undismissed or  unstayed for 60 consecutive calendar days, or an order for relief is entered in any such proceeding;  or  (h) Inability to Pay Debts.  The Borrower or any Subsidiary becomes unable or  admits in writing its inability to pay its debts as they become due; or  (i) Judgments.  There is entered against the Borrower or any Subsidiary one or  more final judgments or orders for the payment of money in an aggregate amount (as to all such  judgments or orders) exceeding $50,000,000 (to the extent not covered by third-party insurance as  to which the insurer does not dispute coverage), and (i) enforcement proceedings are commenced  by any creditor upon such judgment or order, or (ii) there is a period of 30 consecutive days during  which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not  in effect; or   (j) ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or  Multiemployer Plan which has resulted in liability of the Borrower under Title IV of ERISA to the  Pension Plan, a Multiemployer Plan or the PBGC in an aggregate amount in excess of $50,000,000,  and the Borrower or any ERISA Affiliate fails to make any payment in satisfaction of such liability  after the expiration of any applicable grace period, in accordance with applicable law or any  agreement entered into in respect thereof, (ii) the Borrower or any ERISA Affiliate fails to pay  when due, after the expiration of any applicable grace period, any installment payment with respect  to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an  aggregate amount in excess of $50,000,000 or (iii) an ERISA Event occurs with respect to a  Pension Plan or Multiemployer Plan which could reasonably be expected to result in a Material  Adverse Effect; or  

 

  84  165778087  (k) Invalidity of Loan Documents.  Any Loan Document, at any time after its  execution and delivery and for any reason other than as expressly permitted hereunder or  thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or the  Borrower or any of its Affiliates contests in any manner the validity or enforceability of any Loan  Document; or the Borrower denies that it has any or further liability or obligation under any Loan  Document, or purports to revoke, terminate or rescind any Loan Document; or  (l) Change of Control.  There occurs any Change of Control, other than a  Change of Control resulting from the pledge (but not the foreclosure, any transfer-in-lieu of  foreclosure or any other transfer except as collateral security) by AES or a subsidiary of AES of  any equity interest in the Parent or the Borrower to secure its corporate obligations.  9.2 Consequences of Event of Default.  (a) Events of Default Other Than Bankruptcy, Insolvency or Reorganization  Proceedings.  If an Event of Default specified under Sections 9.1(a) through 9.1(l) (other than  Sections 9.1(g) and 9.1(h)) shall occur and be continuing, the Lenders and the Administrative  Agent shall be under no further obligation to make Loans and the Issuing Lender shall be under  no obligation to issue Letters of Credit and the Administrative Agent may, and upon the request  of the Required Lenders, shall (i) by written notice to the Borrower, declare the unpaid principal  amount of the Notes then outstanding and all interest accrued thereon, any unpaid fees and all other  Indebtedness of the Borrower to the Lenders hereunder and thereunder to be forthwith due and  payable, and the same shall thereupon become and be immediately due and payable to the  Administrative Agent for the benefit of each Lender without presentment, demand, protest or any  other notice of any kind, all of which are hereby expressly waived, and (ii) require the Borrower  to, and the Borrower shall thereupon, deposit in a non-interest-bearing account with the  Administrative Agent, as cash collateral for its Obligations under the Loan Documents, an amount  equal to the maximum amount currently or at any time thereafter available to be drawn on all  outstanding Letters of Credit, and the Borrower hereby pledges to the Administrative Agent and  the Lenders, and grants to the Administrative Agent and the Lenders a security interest in, all such  cash as security for such Obligations; and   (b) Bankruptcy, Insolvency or Reorganization Proceedings.  If an Event of  Default specified under Section 9.1(g) or 9.1(h) shall occur, the Lenders shall be under no further  obligations to make Loans hereunder and the Issuing Lender shall be under no obligation to issue  Letters of Credit and the unpaid principal amount of the Loans then outstanding and all interest  accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to the Lenders  hereunder and thereunder shall be immediately due and payable, without presentment, demand,  protest or notice of any kind, all of which are hereby expressly waived; and  (c) Set-off.  If an Event of Default shall have occurred and be continuing, each  Lender, the Issuing Lender, and each of their respective Affiliates and any participant of such  Lender or Affiliate which has agreed in writing to be bound by the provisions of Section 5.3  [Sharing of Payments] is hereby authorized at any time and from time to time, to the fullest extent  permitted by applicable Law, to set off and apply any and all deposits (general or special, time or  demand, provisional or final, in whatever currency) at any time held and other obligations (in  whatever currency) at any time owing by such Lender, the Issuing Lender or any such Affiliate or  

 

  85  165778087  participant to or for the credit or the account of the Borrower against any and all of the Obligations  of the Borrower now or hereafter existing under this Agreement or any other Loan Document to  such Lender, the Issuing Lender, Affiliate or participant, irrespective of whether or not such  Lender, Issuing Lender, Affiliate or participant shall have made any demand under this Agreement  or any other Loan Document and although such Obligations of the Borrower may be contingent or  unmatured or are owed to a branch or office of such Lender or the Issuing Lender different from  the branch or office holding such deposit or obligated on such Indebtedness.  The rights of each  Lender, the Issuing Lender and their respective Affiliates and participants under this Section are  in addition to other rights and remedies (including other rights of setoff) that such Lender, the  Issuing Lender or their respective Affiliates and participants may have.  Each Lender and the  Issuing Lender agrees to notify the Borrower and the Administrative Agent promptly after any  such setoff and application; provided that the failure to give such notice shall not affect the validity  of such setoff and application; and  (d) Application of Proceeds.  From and after the date on which the  Administrative Agent has taken any action pursuant to this Section 9.2 and until all Obligations of  the Borrower have been Paid In Full, any and all proceeds received by the Administrative Agent  from the exercise of any other remedy by the Administrative Agent, shall be applied as follows:  (i) first, to reimburse the Administrative Agent and the Lenders for out- of-pocket costs, expenses and disbursements, including reasonable attorneys’ and paralegals’ fees  and legal expenses, incurred by the Administrative Agent or the Lenders in connection with  collection of any Obligations of the Borrower under any of the Loan Documents, including  advances made by the Administrative Agent for the reasonable maintenance, preservation,  protection or enforcement of, or realization upon, the assets of the Borrower;  (ii) second, to the repayment of all Obligations then due and unpaid of  the Borrower to the Lenders or their Affiliates incurred under this Agreement, whether of principal,  interest, fees, expenses or otherwise and to cash collateralize the Letter of Credit Obligations, in  such manner as the Administrative Agent may determine in its discretion; and  (iii) the balance, if any, as required by Law.  (e) Enforcement of Rights and Remedies.  Notwithstanding anything to the  contrary contained herein or in any other Loan Document, the authority to enforce rights and  remedies hereunder and under the other Loan Documents against the Borrower shall be vested  exclusively in, and all actions and proceedings at law in connection with such enforcement shall  be instituted and maintained exclusively by, the Administrative Agent in accordance with this  Section 9.2 for the benefit of all the Lenders and the Issuing Lender; provided that the foregoing  shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and  remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and  under the other Loan Documents, (ii) the Issuing Lender or the Swing Loan Lender from exercising  the rights and remedies that inure to its benefit (solely in its capacity as the Issuing Lender or  Swing Loan Lender, as the case may be) hereunder and under the other Loan Documents, (iii) any  Lender from exercising setoff rights in accordance with Section 9.2(c) (subject to the terms of  Section 5.3 [Sharing of Payments by Lenders]), or (iv) any Lender from filing proofs of claim or  appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to  

 

  86  165778087  the Borrower under any Insolvency Proceeding; and provided, further, that if at any time there is  no Person acting as Administrative Agent hereunder and under the other Loan Documents, then  (1) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent  pursuant to this Section 9.2(e), and (2) in addition to the matters set forth in clauses (ii), (iii) and  (iv) of the preceding proviso and (subject to Section 5.3 [Sharing of Payments by Lenders]), any  Lender may, with the consent of the Required Lenders, enforce any rights and remedies available  to it and as authorized by the Required Lenders.  10. THE ADMINISTRATIVE AGENT  10.1 Appointment and Authority.  Each of the Lenders and the Issuing Lender hereby  irrevocably appoints PNC to act on its behalf as the Administrative Agent hereunder and under the  other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf  and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or  thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions  of this Section 10 are solely for the benefit of the Administrative Agent, the Lenders and the Issuing  Lender, and the Borrower shall not have rights as a third party beneficiary of any of such  provisions.  10.2 Rights as a Lender.  The Person serving as the Administrative Agent hereunder  shall have the same rights and powers in its capacity as a Lender as any other Lender and may  exercise the same as though it were not the Administrative Agent and the term “Lender” or  “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such  Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or  in any other advisory capacity for and generally engage in any kind of business with the Borrower  or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent  hereunder and without any duty to account therefor to the Lenders.  10.3 Exculpatory Provisions.  The Administrative Agent shall not have any duties or  obligations except those expressly set forth herein and in the other Loan Documents.  Without  limiting the generality of the foregoing, the Administrative Agent:  (a) shall not be subject to any fiduciary or other implied duties, regardless of  whether a Potential Default or Event of Default has occurred and is continuing;  (b) shall not have any duty to take any discretionary action or exercise any  discretionary powers, except discretionary rights and powers expressly contemplated hereby or by  the other Loan Documents that the Administrative Agent is required to exercise as directed in  writing by the Required Lenders (or such other number or percentage of the Lenders as shall be  expressly provided for herein or in the other Loan Documents); provided that the Administrative  Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may  expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable  Law; and  (c) shall not, except as expressly set forth herein and in the other Loan  Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any  

 

  87  165778087  information relating to the Borrower or any of its Affiliates that is communicated to or obtained  by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken by it (i) with  the consent or at the request of the Required Lenders (or such other number or percentage of the  Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be  necessary, under the circumstances as provided in Sections 11.1 [Modifications, Amendments or  Waivers] and 9.2 [Consequences of Event of Default]) or (ii) in the absence of its own gross  negligence or willful misconduct.  The Administrative Agent shall be deemed not to have  knowledge of any Potential Default or Event of Default unless and until notice describing such  Potential Default or Event of Default is given to the Administrative Agent by the Borrower, a  Lender or the Issuing Lender.  The Administrative Agent shall not be responsible for or 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 Loan Document, (ii) the contents of any certificate, report or other  document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the  performance or observance of any of the covenants, agreements or other terms or conditions set  forth herein or therein or the occurrence of any Potential Default or Event of Default, (iv) the  validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document  or any other agreement, instrument or document or (v) the satisfaction of any condition set forth  in Section 7 [Conditions of Lending and Issuance of Letters of Credit] or elsewhere herein, other  than to confirm receipt of items expressly required to be delivered to the Administrative Agent.  10.4 Reliance by Administrative Agent.  The Administrative Agent shall be entitled to  rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,  statement, instrument, document or other writing (including any electronic message, Internet or  intranet website posting or other distribution) believed by it to be genuine and to have been signed,  sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely  upon any statement made to it orally or by telephone and believed by it to have been made by the  proper Person, and shall not incur any liability for relying thereon.  In determining compliance  with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that  by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, the  Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing  Lender unless the Administrative Agent shall have received notice to the contrary from such  Lender or the Issuing Lender prior to the making of such Loan or the issuance of such Letter of  Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the  Borrower), independent accountants and other experts selected by it, and shall not be liable for any  action taken or not taken by it in accordance with the advice of any such counsel, accountants or  experts.  10.5 Delegation of Duties.  The Administrative Agent may perform any and all of its  duties and exercise its rights and powers hereunder or under any other Loan Document by or  through any one or more sub agents appointed by the Administrative Agent.  The Administrative  Agent and any such sub agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Related Parties.  The exculpatory provisions of this Section  10 shall apply to any such sub agent and to the Related Parties of the Administrative Agent and  

 

  88  165778087  any such sub agent, and shall apply to their respective activities in connection with the syndication  of the credit facilities provided for herein as well as activities as Administrative Agent.  10.6 Resignation of Administrative Agent.  The Administrative Agent may at any time  give notice of its resignation to the Lenders, the Issuing Lender and the Borrower.  Upon receipt  of any such notice of resignation, the Required Lenders shall have the right, with approval from  the Borrower (so long as no Event of Default has occurred and is continuing), to appoint a  successor, such approval not to be unreasonably withheld or delayed.  If no such successor shall  have been so appointed by the Required Lenders and shall have accepted such appointment within  thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the  retiring Administrative Agent may on behalf of the Lenders and the Issuing Lender, appoint a  successor Administrative Agent; provided that if the Administrative Agent shall notify the  Borrower and the Lenders that no qualifying Person has accepted such appointment, then such  resignation shall nonetheless become effective in accordance with such notice and (i) the retiring  Administrative Agent shall be discharged from its duties and obligations hereunder and under the  other Loan Documents, and (ii) all payments, communications and determinations provided to be  made by, to or through the Administrative Agent shall instead be made by or to each Lender and  the Issuing Lender directly, until such time as the Required Lenders appoint a successor  Administrative Agent as provided for above in this Section 10.6.  Upon the acceptance of a  successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and  become vested with all of the rights, powers, privileges and duties of the retiring (or retired)  Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its  duties and obligations hereunder or under the other Loan Documents (if not already discharged  therefrom as provided above in this Section).  The fees payable by the Borrower to a successor  Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed  between the Borrower and such successor.  After the retiring Administrative Agent’s resignation  hereunder and under the other Loan Documents, the provisions of this Section 10 and Section 11.3  [Expenses; Indemnity; Damage Waiver] shall continue in effect for the benefit of such retiring  Administrative Agent, its sub agents and their respective Related Parties in respect of any actions  taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as  Administrative Agent.  If PNC resigns as Administrative Agent under this Section 10.6, PNC shall also resign as  an Issuing Lender.  Upon the appointment of a successor Administrative Agent hereunder, such  successor shall (i) succeed to all of the rights, powers, privileges and duties of PNC as the retiring  Issuing Lender and Administrative Agent and PNC shall be discharged from all of its respective  duties and obligations as Issuing Lender and Administrative Agent under the Loan Documents,  and (ii) issue letters of credit in substitution for the Letters of Credit issued by PNC, if any,  outstanding at the time of such succession or make other arrangement satisfactory to PNC to  effectively assume the obligations of PNC with respect to such Letters of Credit.  10.7 Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the  Issuing Lender acknowledges that it has, independently and without reliance upon the  Administrative Agent or any other Lender or any of their Related Parties and based on such  documents and information as it has deemed appropriate, made its own credit analysis and decision  to enter into this Agreement.  Each Lender and the Issuing Lender also acknowledges that it will,  independently and without reliance upon the Administrative Agent or any other Lender or any of  

 

  89  165778087  their Related Parties and based on such documents and information as it shall from time to time  deem appropriate, continue to make its own decisions in taking or not taking action under or based  upon this Agreement, any other Loan Document or any related agreement or any document  furnished hereunder or thereunder. Each Lender and each Issuing Lender represents and warrants  that (i) the Loan Documents set forth the terms of a commercial lending facility and certain other  facilities as set forth herein and (ii) it is engaged in making, acquiring or holding commercial loans,  issuing or participating in letters of credit or providing other similar facilities in the ordinary course  and is entering into this Agreement as a Lender or Issuing Lender for the purpose of making,  acquiring or holding commercial loans, issuing or participating in letters of credit and providing  other facilities as set forth herein and not for the purpose of purchasing, acquiring or holding any  other type of financial instrument, and each Lender and each Issuing Lender agrees not to assert a  claim in contravention of the foregoing. Each Lender and each Issuing Lender represents and  warrants that it is sophisticated with respect to decisions to make, acquire or hold commercial  loans, issue or participate in letters of credit and to provide other facilities set forth herein, as may  be applicable to such Lender or such Issuing Lender, and either it, or the Person exercising  discretion in making its decision to make, acquire or hold such commercial loans, issue or  participate in letters of credit or to provide such other facilities, is experienced in making, acquiring  or holding commercial loans, issuing or participating in letters of credit or providing such other  facilities.  10.8 No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of the  Joint Bookrunner, Joint Lead Arranger and Syndication Agent listed on the cover page hereof shall  have any powers, duties or responsibilities under this Agreement or any of the other Loan  Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the  Issuing Lender hereunder.  10.9 Administrative Agent’s Fee.  The Borrower shall pay to the Administrative Agent  a nonrefundable fee (the “Administrative Agent’s Fee”) under the terms of a letter (the  “Administrative Agent’s Letter”) between the Borrower, Administrative Agent and PNC Capital  Markets LLC, as amended or otherwise modified from time to time.  10.10 No Reliance on Administrative Agent’s Customer Identification Program.  Each  Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or  assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,  participant’s or assignee’s customer identification program, or other obligations required or  imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the  regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP  Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the  following items relating to or in connection with any of the Borrower, its Affiliates or their agents,  the Loan Documents or the transactions hereunder or contemplated hereby: (i) any identity  verification procedures, (ii) any recordkeeping, (iii) comparisons with government lists, (iv)  customer notices or (v) other procedures required under the CIP Regulations or such other Laws.  10.11 Erroneous Payments.  (a) If the Administrative Agent notifies a Lender, Issuing Lender or any Person  who has received funds on behalf of a Lender or Issuing Lender (any such Lender, Issuing Lender  

 

  90  165778087  or other recipient, a “Payment Recipient”) that the Administrative Agent has determined in its  sole discretion (whether or not after receipt of any notice under immediately succeeding clause  (b)) that any funds received by such Payment Recipient from the Administrative Agent or any of  its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by,  such Payment Recipient (whether or not known to such Lender, Issuing Lender or other Payment  Recipient on its behalf)  (any such funds, whether received as a payment, prepayment or repayment  of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous  Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such  Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be  segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent,  and such Lender or Issuing Lender shall (or, with respect to any Payment Recipient who received  such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later  than two Business Days thereafter, return to the Administrative Agent the amount of any such  Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds  (in the currency so received), together with interest thereon in respect of each day from and  including the date such Erroneous Payment (or portion thereof) was received by such Payment  Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the  greater of the Overnight Bank Funding Rate and a rate determined by the Administrative Agent in  accordance with banking industry rules on interbank compensation from time to time in effect. A  notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be  conclusive, absent manifest error.  (b) Without limiting immediately preceding clause (a), each Lender, Issuing  Lender or any Person who has received funds on behalf of a Lender or Issuing Lender hereby  further agrees that if it receives a payment, prepayment or repayment (whether received as a  payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the  Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a  different date from, that specified in a notice of payment, prepayment or repayment sent by the  Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or  repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or  repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender,  Issuing Lender or other such recipient, otherwise becomes aware was transmitted, or received, in  error or by mistake (in whole or in part) in each case:  (i) (A) in the case of immediately preceding clauses (x) or (y), an error  shall be presumed to have been made (absent written confirmation from the Administrative Agent  to the contrary) or (B) an error has been made (in the case of immediately preceding clause (z)),  in each case, with respect to such payment, prepayment or repayment; and  (ii) such Lender or Issuing Lender shall (and shall cause any other  recipient that receives funds on its respective behalf to) promptly (and, in all events, within one  Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such  payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so  notifying the Administrative Agent pursuant to this Section 10.11(b).  (c) Each Lender or Issuing Lender hereby authorizes the Administrative Agent  to set off, net and apply any and all amounts at any time owing to such Lender or Issuing Lender  

 

  91  165778087  under any Loan Document, or otherwise payable or distributable by the Administrative Agent to  such Lender or Issuing Lender from any source, against any amount due to the Administrative  Agent under immediately preceding clause (a) or under the indemnification provisions of this  Agreement.  (d) In the event that an Erroneous Payment (or portion thereof) is not recovered  by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in  accordance with immediately preceding clause (a), from any Lender or Issuing Lender that has  received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who  received such Erroneous Payment (or portion thereof) on its respective behalf)  (such unrecovered  amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice  to such Lender or Issuing Lender at any time, (i) such Lender or Issuing Lender shall be deemed  to have assigned its Loans (but not its Commitments) with respect to which such Erroneous  Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the  Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may  specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment  Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and  unpaid interest (with the assignment fee to be waived by the Administrative Agent in such  instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment  and Assumption with respect to such Erroneous Payment Deficiency Assignment, and such Lender  or Issuing Lender shall deliver any Notes evidencing such Loans to the Borrower or the  Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to  acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the  Administrative Agent as the assignee Lender shall become a Lender or Issuing Lender, as  applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the  assigning Lender or assigning Issuing Lender shall cease to be a Lender or Issuing Lender, as  applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding,  for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement  and its applicable Commitments which shall survive as to such assigning Lender or assigning  Issuing Lender and (iv) the Administrative Agent may reflect in the Register its ownership interest  in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent  may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency  Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return  Deficiency owing by the applicable Lender or Issuing Lender shall be reduced by the net proceeds  of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other  rights, remedies and claims against such Lender or Issuing Lender (and/or against any recipient  that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment  Deficiency Assignment will reduce the Commitments of any Lender or Issuing Lender and such  Commitments shall remain available in accordance with the terms of this Agreement.  In addition,  each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan  (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and  irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative  Agent shall be contractually subrogated to all the rights and interests of the applicable Lender or  Issuing Lender under the Loan Documents with respect to each Erroneous Payment Return  Deficiency (the “Erroneous Payment Subrogation Rights”).  

 

  92  165778087  (e) The parties hereto agree that an Erroneous Payment shall not pay, prepay,  repay, discharge or otherwise satisfy any Obligations owed by the Borrower, except, in each case,  to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous  Payment that is, comprised of funds received by the Administrative Agent from the Borrower for  the purpose of making such Erroneous Payment.  This Section 10.11 [Erroneous Payments] shall  not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or  accelerating the due date for), the Obligations of the Borrower relative to the amount (and/or timing  for payment) of the Obligations that would have been payable had such Erroneous Payment not  been made by the Administrative Agent.  (f) To the extent permitted by applicable Law, no Payment Recipient shall  assert any right or claim to  an Erroneous Payment, and hereby waives, and is deemed to waive,  any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand,  claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment  received, including without limitation waiver of any defense based on “discharge for value” or any  similar doctrine.  (g) Each party’s obligations, agreements and waivers under this Section 10.11  shall survive the resignation or replacement of the Administrative Agent, the termination of the  Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion  thereof) under any Loan Document.  11. MISCELLANEOUS  11.1 Modifications, Amendments or Waivers.  With the written consent of the Required  Lenders (or as expressly provided by Section 2.13 [Increases in Revolving Credit Commitments]),  the Administrative Agent, acting on behalf of all the Lenders, and the Borrower, may from time to  time enter into written agreements amending or changing any provision of this Agreement or any  other Loan Document or the rights of the Lenders or the Borrower hereunder or thereunder, or may  grant written waivers or consents hereunder or thereunder.  Any such agreement, waiver or consent  made with such written consent shall be effective to bind all the Lenders and the Borrower;  provided, that no such agreement, waiver or consent may be made which will:  (a) Increase of Commitment.  Extend or increase the amount of the Revolving  Credit Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section  9.2) hereunder without the consent of such Lender;  (b) Extension of Payment; Modification of Terms of Payment.  Whether or not  any Loans are outstanding, extend the Expiration Date or the time for payment of principal or  interest of any Loan, the Commitment Fee, any other fee or other amounts payable to any Lender,  without the consent of each Lender directly affected thereby;  (c) Reduction of Principal, Interest or Fees.   Reduce the principal amount of  or the rate of interest borne by any Loan or reduce the Commitment Fee, any other fee or any other  amounts payable to any Lender, without the consent of each Lender directly affected thereby;  provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend  the definition of Default Rate or to waive any obligation of the Borrower to pay interest or Letter  

 

  93  165778087  of Credit Fees at the Default Rate pursuant to Section 4.3 [Interest After Default] or (ii) to amend  or waive compliance with any covenant hereunder (or any defined term used therein) even if the  effect of such amendment or waiver would be to reduce the rate of interest on any Loan or Letter  of Credit Borrowing or to reduce any fee payable hereunder; or  (d) Miscellaneous.  Amend Section 5.2 [Pro Rata Treatment of Lenders], 10.3  [Exculpatory Provisions, Etc.] or 5.3 [Sharing of Payments by Lenders] or this Section 11.1, alter  any provision regarding the pro rata treatment of the Lenders or requiring all Lenders to authorize  the taking of any action or reduce any percentage specified in the definition of Required Lenders,  in each case without the consent of all of the Lenders;  provided that no agreement, waiver or consent which would modify the interests, rights or  obligations of the Administrative Agent, the Swing Loan Lender or an Issuing Lender may be  made without the written consent of the Administrative Agent, the Swing Loan Lender or such  Issuing Lender, as applicable, and provided, further that (i) if in connection with any proposed  waiver, amendment or modification referred to in Sections 11.1(a) through 11.1(d) above, the  consent of the Required Lenders is obtained but the consent of one or more of such other Lenders  whose consent is required is not obtained (each a “Non-Consenting Lender”), then the Borrower  shall have the right to replace any such Non-Consenting Lender with one or more replacement  Lenders pursuant to Section 5.6(b) [Replacement of a Lender] and (ii) the Administrative Agent’s  Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by  the parties thereto.    Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to  approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver  or consent which by its terms requires the consent of all Lenders or each affected Lender may be  effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x)  the Commitment of any Defaulting Lender may not be increased or extended without the consent  of such Lender, and (y) any waiver, amendment or modification requiring the consent of all  Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately  adversely relative to other affected Lenders shall require the consent of such Defaulting Lender.  Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably  authorizes the Administrative Agent on its behalf, and without further consent of any Lender (but  with the consent of the Borrower and the Administrative Agent), to amend and restate this  Agreement and the other Loan Documents if, upon giving effect to such amendment and  restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated),  the Commitments of such Lender shall have terminated, such Lender shall have no other  commitment or other obligation hereunder and shall have been paid in full all principal, interest  and other amounts owing to it or accrued for its account under this Agreement and the other Loan  Documents.  11.2 No Implied Waivers; Cumulative Remedies.  No course of dealing and no delay or  failure of the Administrative Agent or any Lender in exercising any right, power, remedy or  privilege under this Agreement or any other Loan Document shall affect any other or future  exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof  preclude any further exercise thereof or of any other right, power, remedy or privilege.  The rights  

 

  94  165778087  and remedies of the Administrative Agent and the Lenders under this Agreement and any other  Loan Documents are cumulative and not exclusive of any rights or remedies which they would  otherwise have.  11.3 Expenses; Indemnity; Damage Waiver.  (a) Costs and Expenses.  The Borrower shall pay (i) all reasonable, documented  out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the  reasonable fees, charges and disbursements of a single counsel for the Administrative Agent, and,  if reasonably required, one local and/or regulatory counsel as necessary in each appropriate  jurisdiction), in connection with the syndication of the credit facilities provided for herein, the  preparation, negotiation, execution, delivery and administration of this Agreement and the other  Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof  (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all  reasonable, documented out-of-pocket expenses incurred by the Issuing Lender (including the  reasonable fees, charges and disbursements of a single counsel for the Issuing Lenders, taken as a  whole and, if reasonably required, one local and/or regulatory counsel as necessary in each  appropriate jurisdiction and, solely in the case of any actual or perceived conflict of interest, one  additional counsel to the affected Persons taken as a whole) in connection with the issuance,  amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder,  and (iii) all reasonable, documented out-of-pocket expenses incurred by the Administrative Agent,  any Lender or the Issuing Lender (including the reasonable fees, charges and disbursements of a  single counsel for the Administrative Agent, any Lender or any Issuing Lender, taken as a whole  and, if reasonably required, one local and/or regulatory counsel as necessary in each appropriate  jurisdiction and, solely in the case of any actual or perceived conflict of interest, one additional  counsel to the affected Persons taken as a whole), in connection with the enforcement or protection  of its rights (A) in connection with this Agreement and the other Loan Documents, including its  rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued  hereunder, including all such reasonable out-of-pocket expenses incurred during any workout,  restructuring or negotiations in respect of such Loans or Letters of Credit.  (b) Indemnification by the Borrower.  The Borrower shall indemnify the  Administrative Agent (and any sub-agent thereof), each Joint Lead Arranger, each Lender and the  Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being  called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,  claims, damages, liabilities and related expenses (including the fees, charges and disbursements of  a single counsel for the Indemnitees, taken as a whole and, if reasonably required, one local and/or  regulatory counsel as necessary in each appropriate jurisdiction and, solely in the case of any actual  or perceived conflict of interest, one additional counsel to the affected Persons taken as a whole),  incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the  Borrower arising out of, in connection with, or as a result of (i) the execution or delivery of this  Agreement, any other Loan Document or any agreement or instrument contemplated hereby or  thereby, the performance or nonperformance by the parties hereto of their respective obligations  hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby,  (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including  any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the  documents presented in connection with such demand do not strictly comply with the terms of  

 

  95  165778087  such Letter of Credit), (iii) breach of representations, warranties or covenants of the Borrower  under the Loan Documents, or (iv) any actual or prospective claim, litigation, investigation or  proceeding relating to any of the foregoing, including any such items or losses relating to or arising  under Environmental Laws or pertaining to environmental matters, whether based on contract, tort  or any other theory, whether brought by a third party or by the Borrower, and regardless of whether  any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be  available to the extent that such losses, claims, damages, liabilities or related expenses (x) are  determined by a court of competent jurisdiction by final and nonappealable judgment to have  resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a  claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s  obligations hereunder or under any other Loan Document, if the Borrower has obtained a final and  nonappealable judgment in its favor on such claim as determined by a court of competent  jurisdiction or (z)  arise out of any claim, litigation, investigation or proceeding that does not  involve an act or omission by the Borrower or any of its Affiliates and that is brought by an  Indemnitee against any other Indemnitee (other than any claim, litigation, investigation or  proceeding involving an Indemnitee acting in its capacity or fulfilling its role as Administrative  Agent, arranger or any similar role).  This Section 11.3(b) [Indemnification by the Borrower] shall  not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc.  arising from any non-Tax claim.  (c) Reimbursement by Lenders.  To the extent that the Borrower for any reason  fails to indefeasibly pay any amount required under Sections 11.3(a) [Costs and Expenses] or  11.3(b) [Indemnification by the Borrower] to be paid by it to the Administrative Agent (or any  sub-agent thereof), the Issuing Lender or any Related Party of any of the foregoing, each Lender  severally agrees to pay to the Administrative Agent (or any such sub-agent), the Issuing Lender or  such Related Party, as the case may be, such Lender’s Ratable Share (determined as of the time  that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount,  provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related  expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any  such sub-agent) or the Issuing Lender in its capacity as such, or against any Related Party of any  of the foregoing acting for the Administrative Agent (or any such sub-agent) or Issuing Lender in  connection with such capacity.  (d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by  applicable Law, each party hereto and each Indemnitee shall not assert, and hereby waives, any  claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or  punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as  a result of, this Agreement, any other Loan Document or any agreement or instrument  contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of  Credit or the use of the proceeds thereof; provided that this provision shall not limit the Borrower’s  indemnity obligations under Section 11.3(b) for claims asserted against any Indemnitee by any  third party.  No Indemnitee referred to in Section 11.3(b) [Indemnification by Borrower] shall be  liable for any damages arising from the use by unintended recipients of any information or other  materials distributed by it through telecommunications, electronic or other information  transmission systems in connection with this Agreement or the other Loan Documents or the  transactions contemplated hereby or thereby, except to the extent such damages are determined by  

 

  96  165778087  a court of competent jurisdiction by final and nonappealable judgment to have resulted from the  gross negligence or willful misconduct of such Indemnitee.  (e) Payments.  All amounts due under this Section shall be payable not later  than ten (10) days after demand therefor.  11.4 Holidays.  Whenever payment of a Loan to be made or taken hereunder shall be  due on a day which is not a Business Day such payment shall be due on the next Business Day  (except as otherwise set forth herein) and such extension of time shall be included in computing  interest and fees, except that the Loans shall be due on the Business Day preceding the Expiration  Date if the Expiration Date is not a Business Day.  Whenever any payment or action to be made  or taken hereunder (other than payment of the Loans) shall be stated to be due on a day which is  not a Business Day, such payment or action shall be made or taken on the next following Business  Day, and such extension of time shall not be included in computing interest or fees, if any, in  connection with such payment or action.  11.5 Notices; Effectiveness; Electronic Communication.  (a) Notices Generally.  Except in the case of notices and other communications  expressly permitted to be given by telephone (and except as provided in Section 11.5(b) [Electronic  Communications]), all notices and other communications provided for herein shall be in writing  and shall be delivered by hand or overnight courier service, mailed by certified or registered mail  or sent by telecopier (i) if to a Lender, to it at its address set forth in its administrative questionnaire,  or (ii) if to any other Person, to it at its address set forth on Schedule 1.1(B).  Notices sent by hand or overnight courier service, or mailed by certified or  registered mail, shall be deemed to have been given when received; notices sent by telecopier shall  be deemed to have been given when sent (except that, if not given during normal business hours  for the recipient, shall be deemed to have been given at the opening of business on the next  Business Day for the recipient).  Notices delivered through electronic communications to the  extent provided in Section 11.5(b) [Electronic Communications], shall be effective as provided in  such Section.  (b) Electronic Communications.  Notices and other communications to the  Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic  communication (including e-mail and Internet or intranet websites) pursuant to procedures  approved by the Administrative Agent; provided that the foregoing shall not apply to notices to  any Lender or the Issuing Lender if such Lender or the Issuing Lender, as applicable, has notified  the Administrative Agent that it is incapable of receiving notices under such Article by electronic  communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept  notices and other communications to it hereunder by electronic communications pursuant to  procedures approved by it; provided that approval of such procedures may be limited to particular  notices or communications.  Unless the Administrative Agent otherwise prescribes, (i) notices and  other communications sent to an e-mail address shall be deemed received upon the sender’s receipt  of an acknowledgement from the intended recipient (such as by the “return receipt requested”  function, as available, return e-mail or other written acknowledgement); provided that if such  notice or other communication is not sent during the normal business hours of the recipient, such  

 

  97  165778087  notice or communication shall be deemed to have been sent at the opening of business on the next  Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet  website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail  address as described in the foregoing clause (i) of notification that such notice or communication  is available and identifying the website address therefor.  (c) Change of Address, Etc.  Any party hereto may change its address, e mail  address or telecopier number for notices and other communications hereunder by notice to the  other parties hereto.  11.6 Severability.  The provisions of this Agreement are intended to be severable.  If any  provision of this Agreement shall be held invalid or unenforceable in whole or in part in any  jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such  invalidity or unenforceability without in any manner affecting the validity or enforceability thereof  in any other jurisdiction or the remaining provisions hereof in any jurisdiction.  11.7 Duration; Survival.  All representations and warranties of the Borrower contained  herein or made in connection herewith shall survive the execution and delivery of this Agreement,  the completion of the transactions hereunder and Payment In Full.  All covenants and agreements  of the Borrower contained herein relating to the payment of principal, interest, premiums,  additional compensation or expenses and indemnification, including those set forth in the Notes,  Section 5 [Payments] and Section 11.3 [Expenses; Indemnity; Damage Waiver], shall survive  Payment In Full.  All other covenants and agreements of the Borrower shall continue in full force  and effect from and after the date hereof and until Payment In Full.  11.8 Successors and Assigns.  (a) Successors and Assigns Generally.  The provisions of this Agreement shall  be binding upon, and inure to the benefit of, the parties hereto and their respective successors and  assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its  rights or obligations hereunder (including by way of an LLC Division) without the prior written  consent of the Administrative Agent and each Lender and no Lender may assign or otherwise  transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the  provisions of Section 11.8(b) [Assignments by Lenders], (ii) by way of participation in accordance  with the provisions of Section 11.8(d) [Participations], or (iii) by way of pledge or assignment of  a security interest subject to the restrictions of Section 11.8(e) [Certain Pledges; Successors and  Assigns Generally] (and any other attempted assignment or transfer by any party hereto shall be  null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon  any Person (other than the parties hereto, their respective successors and assigns permitted hereby,  Participants to the extent provided in Section 11.8(d) [Participations] and, to the extent expressly  contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders)  any legal or equitable right, remedy or claim under or by reason of this Agreement.  (b) Assignments by Lenders.  Any Lender may at any time assign to one or  more assignees all or a portion of its rights and obligations under this Agreement (including all or  a portion of its Commitment and the Loans at the time owing to it); provided that any such  assignment shall be subject to the following conditions:  

 

  98  165778087  (i) Minimum Amounts.  A. in the case of an assignment of the entire remaining amount  of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an  assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need  be assigned; and  B. in any case not described in clause (i)(A) of this Section  11.8(b), the aggregate amount of the Commitment (which for this purpose includes Loans  outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal  outstanding balance of the Loans of the assigning Lender subject to each such assignment  (determined as of the date the Assignment and Assumption Agreement with respect to such  assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the  Assignment and Assumption Agreement, as of the Trade Date) shall not be less than $5,000,000,  in the case of any assignment in respect of the Revolving Credit Commitment of the assigning  Lender, unless each of the Administrative Agent and, so long as no Event of Default has occurred  and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably  withheld or delayed).  (ii) Proportionate Amounts.  Each partial assignment shall (a) be made  as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under  this Agreement with respect to the Loan or the Commitment assigned, and (b) be made on a pro- rata basis relating to such Lender’s Revolving Credit Commitment.  (iii) Required Consents.  No consent shall be required for any  assignment except for the consent of the Administrative Agent (which shall not be unreasonably  withheld or delayed) and:  A. the consent of the Borrower (such consent not to be  unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred  and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate  of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented  to any such assignment unless it shall object thereto by written notice to the Administrative Agent  within five (5) Business Days after having received notice thereof;  B. the consent of the Issuing Lender (such consent not to be  unreasonably withheld or delayed) shall be required for any assignment that increases the  obligation of the assignee to participate in exposure under one or more Letters of Credit (whether  or not then outstanding); and  C. the consent of the Swing Loan Lender (such consent not to  be unreasonably withheld or delayed) shall be required for any assignment.  (iv) Assignment and Assumption Agreement.  The parties to each  assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption  Agreement, together with a processing and recordation fee of $3,500, and the assignee, if it is not  a Lender, shall deliver to the Administrative Agent an administrative questionnaire provided by  the Administrative Agent.  

 

  99  165778087  (v) No Assignment to Certain Persons.  No such assignment shall be  made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) to any  Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender  hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.  (vi) No Assignment to Natural Persons.  No such assignment shall be  made to a natural person.  Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section  11.8(c) [Register], from and after the effective date specified in each Assignment and Assumption  Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the  interest assigned by such Assignment and Assumption Agreement, have the rights and obligations  of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the  interest assigned by such Assignment and Assumption Agreement, be released from its obligations  under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all  of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to  be a party hereto) but shall continue to be entitled to the benefits of Sections 4.4 [Rate  Unascertainable; Increased Costs; Illegality; Benchmark Replacement Setting], 5.8 [Increased  Costs], and 11.3 [Expenses, Indemnity; Damage Waiver] with respect to facts and circumstances  occurring prior to the effective date of such assignment.  Any assignment or transfer by a Lender  of rights or obligations under this Agreement that does not comply with this Section 11.8(b) shall  be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights  and obligations in accordance with Section 11.8(d) [Participations].  (c) Register.  The Administrative Agent, acting solely for this purpose as an  agent of the Borrower, shall maintain a record of the names and addresses of the Lenders, and the  Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms  hereof from time to time (the “Register”).  Such register shall be conclusive, and the Borrower,  the Administrative Agent and the Lenders may treat each Person whose name is in such register  pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,  notwithstanding notice to the contrary.  Such register shall be available for inspection by the  Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior  notice.  (d) Participations.  Any Lender may at any time, without the consent of, or  notice to, the Borrower or the Administrative Agent, the Swing Loan Lender or any Issuing Lender,  sell participations to any Person (other than a natural person or the Borrower or any of the  Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s  rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or  the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall  remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for  the performance of such obligations and (iii) the Borrower, the Administrative Agent and the  Lenders, Issuing Lender and Swing Loan Lender shall continue to deal solely and directly with  such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation  shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve  

 

  100  165778087  any amendment, modification or waiver of any provision of this Agreement; provided that such  agreement or instrument may provide that such Lender will not, without the consent of the  Participant, agree (other than as is already provided for herein) to any amendment, modification  or waiver with respect to Sections 11.1(a) [Increase of Commitment] or 11.1(b) [Extension of  Payment, Etc.] that affects such Participant.  The Borrower agrees that each Participant shall be  entitled to the benefits of Sections 4.4 [Rate Unascertainable; Increased Costs; Illegality;  Benchmark Replacement Setting], 5.8 [Increased Costs], 5.10 [Indemnity] and 5.9 [Taxes] (subject  to the requirements and limitations therein, including the requirements under Section 5.9(g) [Status  of Lenders] (it being understood that the documentation required under Section 5.9(g) [Status of  Lenders] shall be delivered to the participating Lender)) to the same extent as if it were a Lender  and had acquired its interest by assignment pursuant to Section 11.8(b) [Assignments by Lenders];  provided that such Participant (A) agrees to be subject to the provisions of Section 5.6(b)  [Replacement of a Lender] and Section 5.6(c) [Designation of a Different Lending Office] as if it  were an assignee under Section 11.8(b) [Assignments by Lenders]; and (B) shall not be entitled to  receive any greater payment under Sections 5.8 [Increased Costs] or 5.9 [Taxes], with respect to  any participation, than its participating Lender would have been entitled to receive, except to the  extent such entitlement to receive a greater payment results from a Change in Law that occurs after  the Participant acquired the applicable participation.  Each Lender that sells a participation agrees,  at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to  effectuate the provisions of Section 5.6(b) [Replacement of a Lender] and Section 5.6(c)  [Designation of Different Lending Office] with respect to any Participant.  To the extent permitted  by law, each Participant also shall be entitled to the benefits of Section 9.2(c) [Set-off] as though  it were a Lender; provided that such Participant agrees to be subject to Section 5.3 [Sharing of  Payments by Lenders] as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a  nonfiduciary agent of the Borrower, maintain a register on which it enters the name and address  of each Participant and the principal amounts (and stated interest) of each Participant’s interest in  the Loans or other obligations under the Loan Documents (the “Participant Register”); provided  that no Lender shall have any obligation to disclose all or any portion of the Participant Register  (including the identity of any Participant or any information relating to a Participant’s interest in  any commitments, loans, letters of credit or its other obligations under any Loan Document) to any  Person except to the extent that such disclosure is necessary to establish that such commitment,  loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United  States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent  manifest error, and such Lender shall treat each Person whose name is recorded in the Participant  Register as the owner of such participation for all purposes of this Agreement notwithstanding any  notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as  Administrative Agent) shall have no responsibility for maintaining a Participant Register.  (e) Certain Pledges; Successors and Assigns Generally.  Any Lender may at  any time pledge or assign a security interest in all or any portion of its rights under this Agreement  to secure obligations of such Lender, including any pledge or assignment to secure obligations to  a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender  from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender  as a party hereto.  

 

  101  165778087  11.9 Confidentiality.  (a) General.  Each of the Administrative Agent, the Lenders and the Issuing  Lender agrees to maintain the confidentiality of the Information, except that Information may be  disclosed (i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,  employees, agents, advisors and other representatives (it being understood that the Persons to  whom such disclosure is made will be informed of the confidential nature of such Information and  instructed to keep such Information confidential), (ii) to the extent requested by any regulatory  authority purporting to have jurisdiction over it (including any self-regulatory authority, such as  the National Association of Insurance Commissioners), (iii) to the extent required by applicable  Laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v)  in connection with the exercise of any remedies hereunder or under any other Loan Document or  any action or proceeding relating to this Agreement or any other Loan Document or the  enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions  substantially the same as those of this Section, to (A) any assignee of or Participant in, or any  prospective assignee of or Participant in, any of its rights or obligations under this Agreement or  (B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction  relating to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the  extent such Information (Y) becomes publicly available other than as a result of a breach of this  Section or (Z) becomes available to the Administrative Agent, any Lender, the Issuing Lender or  any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower.  Any Person required to maintain the confidentiality of Information as provided in this Section shall  be considered to have complied with its obligation to do so if such Person has exercised the same  degree of care to maintain the confidentiality of such Information as such Person would accord to  its own confidential information.  In addition, the Administrative Agent and the Lenders may  disclose the existence of this Agreement and information about this Agreement to market data  collectors, similar service providers to the lending industry and service providers to the  Administrative Agent and the Lenders in connection with the administration of this Agreement,  the other Loan Documents, and the Commitments.  (b) Sharing Information With Affiliates of the Lenders.  The Borrower  acknowledges that from time to time financial advisory, investment banking and other services  may be offered or provided to the Borrower or one or more of its Affiliates (in connection with  this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of such  Lender and the Borrower hereby authorizes each Lender to share any information delivered to such  Lender by the Borrower and its Subsidiaries pursuant to this Agreement to any such Subsidiary or  Affiliate subject to the provisions of Section 11.9(a) [General].  11.10 Counterparts; Integration; Effectiveness; Electronic Execution.  (a) Counterparts; Integration; Effectiveness.  This Agreement may be executed  in counterparts (and by different parties hereto in different counterparts), each of which shall  constitute an original, but all of which when taken together shall constitute a single contract.  This  Agreement and the other Loan Documents, and any separate letter agreements with respect to fees  payable to the Administrative Agent, constitute the entire contract among the parties relating to  the subject matter hereof and supersede any and all previous agreements and understandings, oral  or written, relating to the subject matter hereof including any prior confidentiality agreements and  

 

  102  165778087  commitments.  Except as provided in Section 7 [Conditions Of Lending And Issuance Of Letters  Of Credit], this Agreement shall become effective when it shall have been executed by the  Administrative Agent and when the Administrative Agent shall have received counterparts hereof  that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an  executed counterpart of a signature page of this Agreement by telecopy or e mail shall be effective  as delivery of a manually executed counterpart of this Agreement.  (b) Electronic Execution. The words “execution,” “signed,” “signature,” and  words of like import in any Loan Document shall be deemed to include electronic signatures or  the keeping of records in electronic form, each of which shall be of the same legal effect, validity  or enforceability as a manually executed signature or the use of a paper-based recordkeeping  system, as the case may be, to the extent and as provided for in any applicable Law, including the  Federal Electronic Signatures in Global and National Commerce Act, the New York State  Electronic Signatures and Records Act, or any other similar state Laws based on the Uniform  Electronic Transactions Act.  11.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE;   SERVICE OF PROCESS; WAIVER OF JURY TRIAL.  (a) Governing Law.  This Agreement shall be deemed to be a contract under  the Laws of the State of New York without regard to its conflict of laws principles.  Each standby  Letter of Credit issued under this Agreement shall be subject either to the rules of the Uniform  Customs and Practice for Documentary Credits, as most recently published by the International  Chamber of Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the  International Standby Practices (ICC Publication Number 590) (“ISP98”), as determined by the  Issuing Lender, and each trade Letter of Credit shall be subject to UCP, and in each case to the  extent not inconsistent therewith, the Laws of the State of New York without regard to is conflict  of laws principles.  (b) SUBMISSION TO JURISDICTION.  THE BORROWER  IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS  PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE  OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES  DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN NEW  YORK COUNTY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY  ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR  ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY  JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND  UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH  ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK  STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN  SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL  JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND  MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN  ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN  ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE  ADMINISTRATIVE AGENT, ANY LENDER OR THE ISSUING LENDER MAY  

 

  103  165778087  OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS  PROPERTIES IN THE COURTS OF ANY JURISDICTION.  (c) WAIVER OF VENUE.  THE BORROWER IRREVOCABLY AND  UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO  THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR  RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT  REFERRED TO IN THIS SECTION 11.11.  EACH OF THE PARTIES HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF  SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT ASSERT  ANY SUCH DEFENSE.  (d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN  SECTION 11.5 [NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION].   NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO  TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.  (e) WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING  DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT  OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED  HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER  THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,  ADMINISTRATIVE AGENT OR ATTORNEY OF ANY OTHER PERSON HAS  REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD  NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER  AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN  INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS  BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS  SECTION.  11.12 USA Patriot Act Notice.  Each Lender that is subject to the USA Patriot Act and  the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower  that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record  information that identifies the Borrower, which information includes the name and address of the  Borrower and other information that will allow such Lender or Administrative Agent, as  applicable, to identify the Borrower in accordance with the USA Patriot Act.  11.13 Certain ERISA Matters.  (a) Each Lender (x) represents and warrants, as of the date such Person became  a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party  

 

  104  165778087  hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the  Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit  of the Borrower, that at least one of the following is and will be true:  (i) such Lender is not using “plan assets” (within the meaning of  Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters  of Credit, the Commitments or this Agreement,  (ii) the transaction exemption set forth in one or more PTEs, such as  PTE 84-14 (a class exemption for certain transactions determined by independent qualified  professional asset managers), PTE 95-60 (a class exemption for certain transactions involving  insurance company general accounts), PTE 90-1 (a class exemption for certain transactions  involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain  transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for  certain transactions determined by in-house asset managers), is applicable with respect to such  Lender’s entrance into, participation in, administration of and performance of the Loans, the  Letters of Credit, the Commitments and this Agreement,  (iii) (A) such Lender is an investment fund managed by a “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified  Professional Asset Manager made the investment decision on behalf of such Lender to enter into,  participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this  Agreement, (C) the entrance into, participation in, administration of and performance of the Loans,  the Letters of Credit, the Commitments and this Agreement satisfies the requirements of  subsections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender,  the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s  entrance into, participation in, administration of and performance of the Loans, the Letters of  Credit, the Commitments and this Agreement, or  (iv) such other representation, warranty and covenant as may be agreed  in writing between the Administrative Agent, in its sole discretion, and such Lender.  (b) In addition, unless either subclause (a)(i) in the immediately preceding  Section 11.13(a) is true with respect to a Lender or such Lender has not provided another  representation, warranty and covenant as provided in subclause (a)(iv) in the immediately  preceding Section 11.13(a), such Lender further (x) represents and warrants, as of the date such  Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a  Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of,  the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit  of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such  Lender involved in such Lender’s entrance into, participation in, administration of and  performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including  in connection with the reservation or exercise of any rights by the Administrative Agent under this  Agreement, any Loan Document or any documents related to hereto or thereto).  11.14 Acknowledgment and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding anything to the contrary in any Loan Document or in any other agreement,  

 

  105  165778087  arrangement or understanding among any such parties, each party hereto acknowledges that any  liability of any Affected Financial Institution arising under any Loan Document, to the extent such  liability is unsecured, may be subject to the write-down and conversion powers of the applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:   (a) the application of any Write-Down and Conversion Powers by the  applicable Resolution Authority to any such liabilities arising hereunder which may be payable to  it by any party hereto that is an Affected Financial Institution; and   (b) the effects of any Bail-in Action on any such liability, including, if  applicable, (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion  of all, or a portion of, such liability into shares or other instruments of ownership in such Affected  Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or  otherwise conferred on it, and that such shares or other instruments of ownership will be accepted  by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan  Document; or (iii) the variation of the terms of such liability in connection with the exercise of the  write-down and conversion powers of the applicable Resolution Authority.  11.15 Amendment and Restatement.   (a) THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT  REPLACES THE EXISTING CREDIT AGREEMENT.  THIS SECOND AMENDED AND  RESTATED CREDIT AGREEMENT IS NOT INTENDED TO CONSTITUTE, AND DOES  NOT CONSTITUTE, A NOVATION OR SATISFACTION OF THE OBLIGATIONS  REPRESENTED BY THE EXISTING CREDIT AGREEMENT.  (b) Simultaneously with the effectiveness of this Agreement on the Closing  Date, the parties hereby agree that, notwithstanding the provisions regarding assignments set forth  in Section 11.8 hereof and Section 11.8 of the Existing Credit Agreement, the Commitments and  Ratable Shares shall be as set forth in Schedule 1.1(B), and the portion of the outstanding Loans  and participations with respect to Letters of Credit and Swing Loans outstanding under the Existing  Credit Agreement shall be reallocated in accordance with such Ratable Shares and the requisite  assignments shall be deemed to be made in such amounts by and between the Lenders and from  each Lender to each other Lender, with the same force and effect as if such assignments were  evidenced by applicable Assignment and Assumption Agreements (as defined in the Existing  Credit Agreement) under the Existing Credit Agreement.Notwithstanding anything to the contrary  in Section 11.8 of the Existing Credit Agreement or Section 11.8 of this Agreement, no other  documents or instruments, including any Assignment and Assumption Agreements, shall be  executed in connection with these assignments (all of which requirements are hereby waived), and  such assignments shall be deemed to be made with all applicable representations, warranties and  covenants as if evidenced by an Assignment and Assumption Agreement.  On the Closing Date  and substantially concurrently with the effectiveness of this Agreement,  to the extent necessary,  the Lenders shall make full cash settlement with each other either directly or through the  Administrative Agent, as the Administrative Agent may direct or approve, with respect to all such  assignments and reallocations such that after giving effect to such settlements each Lender’s  Ratable Shares with respect to the Commitments shall be as set forth on Schedule 1.1(B) of this  

 

  106  165778087  Agreement, and the outstanding Loans and participations with respect to Letters of Credit and  Swing Loans shall be held by the Lenders in accordance with such Ratable Shares.  (c) Notwithstanding anything in this Agreement, the terms of the Existing  Credit Agreement applicable to existing Loans at the LIBOR Rate Option (as defined in the  Existing Credit Agreement) (the “Existing LIBOR Rate Loans”) shall continue in full force and  effect and shall continue to apply to each Existing LIBOR Rate Loan with an Interest Period (as  defined in the Existing Credit Agreement) that commenced prior to the Closing Date solely until  the expiration of the then current Interest Period for such Existing LIBOR Rate Loan; provided  that from and after the Closing Date, (i) the Borrower shall not be permitted to request any Lender  to fund, and no Lender shall fund, any Loan at the LIBOR Rate Option and (ii) no Loan may be  continued as, or converted to, a Loan at the LIBOR Rate Option.  11.16 Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan  Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other  agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC  a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution  power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and  Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the  regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such  Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding  that the Loan Documents and any Supported QFC may in fact be stated to be governed by the  Laws of the State of New York and/or of the United States or any other state of the United  States):In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”)  becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such  Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or  under such Supported QFC and such QFC Credit Support, and any rights in property securing such  Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the  same extent as the transfer would be effective under the U.S. Special Resolution Regime if the  Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in  property) were governed by the Laws of the United States or a state of the United States.  In the  event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding  under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might  otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against  such Covered Party are permitted to be exercised to no greater extent than such Default Rights  could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan  Documents were governed by the Laws of the United States or a state of the United States.  Without  limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with  respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect  to a Supported QFC or any QFC Credit Support.  (b) As used in this Section 11.16, the following terms have the following  meanings:  “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined  under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.  

 

  107  165778087  “Covered Entity” means any of the following:  (i) a “covered entity” as that term  is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b), (ii) a  “covered bank” as that term is defined in, and interpreted in accordance with, 12  C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted  in accordance with, 12 C.F.R. § 382.2(b).  “Default Right” has the meaning assigned to that term in, and shall be interpreted  in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.  “QFC” has the meaning assigned to the term “qualified financial contract” in, and  shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).  11.17 No Advisory or Fiduciary Responsibility.    (a) In connection with all aspects of each transaction contemplated hereby, the  Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (i) the  facilities provided for hereunder and any related arranging or other services in connection  therewith (including in connection with any amendment, waiver or other modification hereof or of  any other Loan Document) are an arm’s-length commercial transaction between the Borrower and  its Affiliates, on the one hand, and the Administrative Agent, the Joint Lead Arrangers and the  Lenders, on the other hand, and the Borrower is capable of evaluating and understanding and  understands and accepts the terms, risks and conditions of the transactions contemplated hereby  and by the other Loan Documents (including any amendment, waiver or other modification hereof  or thereof), (ii) in connection with the process leading to such transaction, each of the  Administrative Agent, the Joint Lead Arrangers and the Lenders is and has been acting solely as a  principal and is not the financial advisor, agent or fiduciary, for the Borrower or any of its  Affiliates, stockholders, creditors or employees or any other Person, (iii) none of the  Administrative Agent, the Joint Lead Arrangers or the Lenders has assumed or will assume an  advisory, agency or fiduciary responsibility in favor of the Borrower with respect to any of the  transactions contemplated hereby or the process leading thereto, including with respect to any  amendment, waiver or other modification hereof or of any other Loan Document (irrespective of  whether any Joint Lead Arranger or Lender has advised or is currently advising the Borrower or  any of its Affiliates on other matters) and none of the Administrative Agent, the Joint Lead  Arrangers or the Lenders has any obligation to the Borrower or any of its Affiliates with respect  to the financing transactions contemplated hereby except those obligations expressly set forth  herein and in the other Loan Documents, (iv) the Joint Lead Arrangers and the Lenders and their  respective Affiliates may be engaged in a broad range of transactions that involve interests that  differ from, and may conflict with, those of the Borrower and its Affiliates, and none of the  Administrative Agent, the Joint Lead Arrangers or the Lenders has any obligation to disclose any  of such interests by virtue of any advisory, agency or fiduciary relationship and (v) the  Administrative Agent, the Joint Lead Arrangers and the Lenders have not provided and will not  provide any legal, accounting, regulatory or tax advice with respect to any of the transactions  contemplated hereby (including any amendment, waiver or other modification hereof or of any  other Loan Document) and the Borrower has consulted its own legal, accounting, regulatory and  tax advisors to the extent it has deemed appropriate.  

 

  108  165778087  (b) The Borrower acknowledges and agrees that each Lender, each Joint Lead  Arranger and any Affiliate thereof may lend money to, invest in, and generally engage in any kind  of business with, any of the Borrower, any Affiliate thereof or any other person or entity that may  do business with or own securities of any of the foregoing, all as if such Lender, Joint Lead  Arranger or Affiliate thereof were not a Lender or Joint Lead Arranger or an Affiliate thereof (or  an agent or any other person with any similar role under the facilities provided for hereunder) and  without any duty to account therefor to any other Lender or Joint Lead Arranger, the Borrower or  any Affiliate of the foregoing.  Each Lender, each Joint Lead Arranger and any Affiliate thereof  may accept fees and other consideration from the Borrower or any Affiliate thereof for services in  connection with this Agreement, the facilities provided for hereunder or otherwise without having  to account for the same to any other Lender or Joint Lead Arranger, the Borrower or any Affiliate  of the foregoing.  [SIGNATURE PAGES FOLLOW]  

 

 

 

 

 

 

 

  THE DAYTON POWER AND LIGHT COMPANY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  SIGNATURE PAGE  BANK OF AMERICA, N.A., as a Lender  By:     Name: Christopher J. Heitker   Title:   Director      

 

THE DAYTON POWER AND LIGHT COMPANY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  SIGNATURE PAGE  JPMORGAN CHASE BANK, N.A., as a Lender  By:     Name: Arina Mavilian  Title: Executive Director       

 

  THE DAYTON POWER AND LIGHT COMPANY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  SIGNATURE PAGE  MORGAN STANLEY BANK, N.A., as a Lender  By:     Name: Michael King  Title:    Authorized Signatory  

 

THE HUNTINGTON NATIONAL BANK, as a Lender  By:M.-� Name: Nolan Wo�  Title: Assistant Vice President  THE DAYTON POWER AND LIGHT COMPANY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  SIGNATURE PAGE  

 

M&T BANK, as a Lender  By:    Name: Stephen Hoffman  Title:   Senior Vice President  THE DAYTON POWER AND LIGHT COMPANY  SECOND AMENDED AND RESTATED CREDIT AGREEMENT  SIGNATURE PAGE  

 

 

 

  165778087  SCHEDULE 1.1(A)  PRICING GRID—  VARIABLE PRICING AND FEES BASED ON BORROWER’S RATING  The “Applicable Margin”, “Applicable Commitment Fee Rate” and “Applicable Letter of  Credit Fee Rate” for any day are the respective rates per annum, set forth below corresponding to  the Rating that exists on such day:  Level Borrower’s   Rating  (Fitch/Moody’s/S &P)  Applicable  Margin for  Term SOFR  Rate Loans  and Daily  SOFR Loans  Applicable  Margin for  Base Rate  Loans  Applicable  Commitment   Fee Rate  Applicable  Letter of  Credit Fee  Rate  1 > A-/A3/A- 1.000% 0.000% 0.125% 1.000%  2  BBB+/Baa1/BBB+ 1.125% 0.125% 0.150% 1.125%  3 BBB/Baa2/BBB 1.250% 0.250% 0.175% 1.250%  4 BBB-/Baa3/BBB- 1.500% 0.500% 0.200% 1.500%  5 ≤ BB+/Ba1/BB+ 1.875% 0.875% 0.250% 1.875%    For purposes of this Schedule, the following terms have the following meanings:   “Fitch” means Fitch, Inc.  “Fitch Rating” means the rating assigned to the senior unsecured long-term debt securities  of the Borrower without third-party credit enhancement, and any rating assigned to any other debt  security of the Borrower shall be disregarded.  If Fitch does not maintain a senior unsecured debt  rating for the Borrower, “Fitch Rating” shall mean the corporate credit rating assigned by Fitch to  the Borrower.  The rating in effect on any date is that in effect on the close of business on such  date.  “Moody’s” means Moody’s Investors Service, Inc.  “Moody’s Rating” means the rating assigned to the senior unsecured long-term debt  securities of the Borrower without third-party credit enhancement, and any rating assigned to any  other debt security of the Borrower shall be disregarded.  If Moody’s does not maintain a senior  unsecured debt rating for the Borrower, “Moody’s Rating” shall mean the corporate credit rating  assigned by Moody’s to the Borrower.  The rating in effect on any date is that in effect on the close  of business on such date.  “Rating” means a Fitch Rating, Moody’s Rating or S&P Rating, as appropriate.  

 

  165778087  “Rating Agency” means Fitch, Moody’s or S&P, as appropriate.  “S&P” means Standard & Poor’s Ratings Group.  “S&P Rating” means the rating assigned to the senior unsecured long-term debt securities  of the Borrower without third-party credit enhancement, and any rating assigned to any other debt  security of the Borrower shall be disregarded.  If S&P does not maintain a senior unsecured debt  rating for the Borrower, “S&P Rating” shall mean the corporate credit rating assigned by S&P to  the Borrower.  The rating in effect on any date is that in effect on the close of business on such  date.  If each of the respective Ratings issued by the Rating Agencies differs by at least one level,  then the Pricing Level for the intermediate of such Ratings shall apply.  If two of the Rating  Agencies issue a Rating at the same level and one of the Rating Agencies issues a Rating at a  different level, then the Pricing Level for the Ratings at the same level shall apply.  If only two of  the Rating Agencies issue a Rating and there is a split in Ratings of more than one level, then the  intermediate Pricing Level that is the midpoint between the two Ratings shall apply (or if there is  no midpoint, then the highest intermediate Pricing Level shall apply (with the Rating for Pricing  Level 1 being the highest and the Rating for Pricing Level 5 being the lowest)).  If only two of the  Rating Agencies issue a Rating and such Ratings differ by one level, then the Pricing Level for the  higher of such Ratings shall apply.  If the Borrower has only one Rating, the Pricing Level for such  Rating shall apply.  If the Borrower does not have any Rating, Pricing Level 5 shall apply.  

 

168457793_2  SCHEDULE 1.1(B)    COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES    Part 1 - Commitments of Lenders      Lender Revolving Credit Commitment Ratable Share    PNC Bank, National Association   $40,000,000   16.000000000%    U.S. Bank National Association   $40,000,000   16.000000000%    Bank of America, N.A.    $35,000,000   14.000000000%    JPMorgan Chase Bank, N.A.   $35,000,000   14.000000000%    Morgan Stanley Bank, N.A.    $35,000,000   14.000000000%    The Huntington National Bank   $25,000,000   10.000000000%    M&T Bank      $20,000,000   8.000000000%    Old National Bank     $20,000,000   8.000000000%    Total :      $250,000,000   100.000000000%  

 

168457793_2     Part 2 - Addresses for Notices to Administrative Agent and Borrower:   ADMINISTRATIVE AGENT    Name: PNC Bank, National Association  Address: One PNC Center, Suite 400E  Indianapolis, IN 46255  Attention: Tracy J. Venable  Telephone: (317) 267-7066  Telecopy: (317) 267-7399  With a Copy To:  Agency Services, PNC Bank, National Association  Mail Stop: P7-PFSC-04-I  Address: 500 First Avenue  Pittsburgh, PA 15219  Attention: Agency Services  Telephone:  (412) 762-6442  Telecopy: (412) 762-8672    BORROWER:    Name: The Dayton Power and Light Company (d/b/a AES Ohio)  Address: 1065 Woodman Drive  Dayton, OH 45432  Attention: Dustin Illyes  Telephone: (317) 864-5307    With a Copy to Legal:    Brian Hylander  1065 Woodman Drive  Dayton, OH 45432        

 

  SCHEDULE 8.2(a)  Schedule 8.2(a)  Existing Liens    EXISTING LIENS    None.                                                                                                      

 

  SCHEDULE 8.2(b)  Schedule 8.2(b)  Existing Investments    EXISTING INVESTMENTS    The Borrower owns a 4.9% equity ownership interest in Ohio Valley Electric Corporation  (OVEC), an electric generation company. In connection with such ownership, the Borrower  guarantees certain obligations and indebtedness of OVEC which are reflected in footnotes of the  Borrower’s financial statements.                                                                                          

 

166023985  EXHIBIT 1.1(A)  FORM OF  ASSIGNMENT AND ASSUMPTION AGREEMENT    THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment and  Assumption”) is dated as of the Effective Date set forth below and is entered into by and between  [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit  Agreement identified below (as the same may be amended, restated, modified, or supplemented,  the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and  incorporated herein by reference and made a part of this Assignment and Assumption as if set forth  herein in full.  For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the  Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject  to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the  Effective Date inserted by the Administrative Agent as contemplated below (i) all of the  Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any  other documents or instruments delivered pursuant thereto to the extent related to the amount and  percentage interest identified below of all of such outstanding rights and obligations of the  Assignor under the respective facilities identified below, and (ii) to the extent permitted to be  assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor  (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in  connection with the Credit Agreement, any other documents or instruments delivered pursuant  thereto or the loan transactions governed thereby or in any way based on or related to any of the  foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory  claims and all other claims at law or in equity related to the rights and obligations sold and assigned  pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i)  and (ii) above being referred to herein collectively as, the “Assigned Interest”). Such sale and  assignment is without recourse to the Assignor and, except as expressly provided in this  Assignment and Assumption, without representation or warranty by the Assignor.  1. Assignor:    2. Assignee:    [and is an Affiliate of [identify Lender]]  [and is an Approved Fund of [identify Lender]]  3. Borrower: THE DAYTON POWER AND LIGHT COMPANY  4. Administrative Agent: PNC BANK, NATIONAL ASSOCIATION  5. Credit Agreement: That Second Amended and Restated Credit Agreement  dated as of December 22, 2022, among The Dayton  Power and Light Company, the Lenders party thereto,  

 

  2  166023985  and PNC Bank, National Association, as Administrative  Agent.  6. Assigned Interest:  Facility Assigned Aggregate  Amount of  Revolving Credit  Commitments /  Revolving Credit  Loans for all  Lenders  Amount of  Revolving Credit  Commitments /  Revolving Credit  Loans Assigned  Percentage  Assigned of  Revolving  Credit  Commitments  / Revolving  Credit Loans  CUSIP Number   $ $ %     7. [Trade Date: ______________]1         1 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined  as of the Trade Date.  

 

  3  166023985  Effective Date: _______________________, 20___ [TO BE INSERTED BY  ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF  RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]2  The terms set forth in this Assignment and Assumption are hereby agreed to:  ASSIGNOR         By:    Name:    Title:        ASSIGNEE         By:    Name:    Title:      Consented to and Accepted:    PNC BANK, NATIONAL ASSOCIATION,   as Administrative Agent, Issuing Lender   and Swing Loan Lender      By:    Name:    Title:        [Consented to:    THE DAYTON POWER AND LIGHT COMPANY    By:    Name:    Title:  ]3      2 Assignor shall pay a fee of $3,500 to the Administrative Agent in connection with the Assignment and  Assumption.  3 If applicable.  

 

  4  166023985  Consented to:    U.S. BANK, NATIONAL ASSOCIATION,  as Issuing Lender      By:    Name:    Title:   

 

  5  166023985  ANNEX 1  THE DAYTON POWER AND LIGHT COMPANY  CREDIT FACILITY  STANDARD TERMS AND CONDITIONS  FOR ASSIGNMENT AND ASSUMPTION AGREEMENT  1. Representations and Warranties.  1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and  beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,  encumbrance or other adverse claim, and (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any  statements, warranties or representations made in or in connection with the Credit Agreement or  any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,  sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial  condition of the Borrower, any of its Subsidiaries or any other Person obligated in respect of any  Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or  any other Person of any of their respective obligations under any Loan Document.  1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and  authority, and has taken all action necessary, to execute and deliver this Assignment and  Assumption and to consummate the transactions contemplated hereby and to become a Lender  under the Credit Agreement, (ii) it meets all requirements of an eligible assignee under the Credit  Agreement (subject to receipt of such consents as may be required under the Credit Agreement),  (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement  as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a  Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the  most recent financial statements delivered pursuant to Section 8.1(a) [Financial Statements]  thereof, as applicable, and such other documents and information as it has deemed appropriate to  make its own credit analysis and decision to enter into this Assignment and Assumption and to  purchase the Assigned Interest on the basis of which it has made such analysis and decision  independently and without reliance on the Administrative Agent or any other Lender, and (v) if  Assignee is not incorporated or organized under the Laws of the United States of America or a  state thereof, attached to the Assignment and Assumption is any documentation required to be  delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the  Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative  Agent, the Assignor or any other Lender, and based on such documents and information as it shall  deem appropriate at the time, continue to make its own credit decisions in taking or not taking  action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the  obligations which by the terms of the Loan Documents are required to be performed by it as a  Lender.  

 

  6  166023985  2. Payments. From and after the Effective Date, the Administrative Agent shall make  all payments in respect of the Assigned Interest (including payments of principal, interest, fees and  other amounts) to the Assignor for amounts which have accrued to but excluding the Effective  Date and to the Assignee for amounts which have accrued from and after the Effective Date.  3. General Provisions. This Assignment and Assumption shall be binding upon, and  inure to the benefit of, the parties hereto and their respective successors and assigns. This  Assignment and Assumption may be executed in any number of counterparts, which together shall  constitute one instrument. Delivery of an executed counterpart of a signature page of this  Assignment and Assumption by telecopy, or other electronic transmission shall be effective as  delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment  and Assumption shall be governed by, and construed in accordance with, the internal laws of the  State of New York without regard to its conflict of laws principles.    

 

  166023985  EXHIBIT 1.1(N)(1)  FORM OF  REVOLVING CREDIT NOTE  $____________________  New York, New York   __________, 20__  FOR VALUE RECEIVED, the undersigned, THE DAYTON POWER AND LIGHT  COMPANY, an Ohio corporation (herein called the “Borrower”), hereby unconditionally  promises to pay to the order of [_________________________________] (the “Lender”), the  lesser of (i) the principal sum of [__________________________ Dollars (US$___________)],  or (ii) the aggregate unpaid principal balance of all Revolving Credit Loans made by the Lender  to the Borrower pursuant to the Second Amended and Restated Credit Agreement, dated as of the  date hereof, among the Borrower, the Lenders now or hereafter party thereto and PNC Bank,  National Association, as administrative agent (hereinafter referred to in such capacity as the  “Administrative Agent”) (as amended, restated, modified, or supplemented from time to time,  the “Credit Agreement”), together with all outstanding interest thereon on the Expiration Date.  The Borrower shall pay interest on the unpaid principal balance hereof from time to time  outstanding from the date hereof at the rate or rates per annum specified by the Borrower pursuant  to, or as otherwise provided in, the Credit Agreement. Subject to the provisions of the Credit  Agreement, interest on this Revolving Credit Note will be payable pursuant to Section 5.5 [Interest  Payment Dates] of, or as otherwise provided in, the Credit Agreement. If any payment or action to  be made or taken hereunder shall be stated to be or become due on a day which is not a Business  Day, such payment or action shall be made or taken on the next following Business Day, unless  otherwise provided in the Credit Agreement, and such extension of time shall be included in  computing interest or fees, if any, in connection with such payment or action. Upon the occurrence  and during the continuation of an Event of Default, the Borrower shall pay interest on the entire  principal amount of the then outstanding Revolving Credit Loans evidenced by this Revolving  Credit Note and all other obligations due and payable to the Lender pursuant to the Credit  Agreement and the other Loan Documents at a rate per annum as set forth in Section 4.3 [Interest  After Default] of the Credit Agreement. Such interest rate will accrue before and after any  judgment has been entered.  Subject to the provisions of the Credit Agreement, payments of both principal and interest  shall be made without setoff, counterclaim or other deduction of any nature at the office of the  Administrative Agent located at 500 First Avenue, Pittsburgh, Pennsylvania 15219 unless  otherwise directed in writing by the Administrative Agent, in lawful money of the United States  of America in immediately available funds.  This Revolving Credit Note is one of the Notes referred to in, and is entitled to the benefits  of, the Credit Agreement and the other Loan Documents, including the representations, warranties,  covenants, conditions contained therein. The Credit Agreement among other things contains  provisions for acceleration of the maturity hereof upon the happening of certain stated events and  also for prepayments, in certain circumstances, on account of principal hereof prior to maturity  upon the terms and conditions therein specified. The Borrower waives presentment, demand,  

 

  8  166023985  notice, protest and all other demands and notices in connection with the delivery, acceptance,  performance, default or enforcement of this Revolving Credit Note and the Credit Agreement.  This Revolving Credit Note shall bind the Borrower and its successors and assigns, and the  benefits hereof shall inure to the benefit of the Lender and its successors and assigns. All references  herein to the “Borrower” and the “Lender” shall be deemed to apply to the Borrower and the  Lender, respectively, and their respective successors and assigns as permitted under the Credit  Agreement.  This Revolving Credit Note and any other documents delivered in connection herewith and  the rights and obligations of the parties hereto and thereto shall for all purposes be governed, by  and construed and enforced in accordance with, the internal laws of the State of New York without  giving effect to its conflicts of law principles.  [This Revolving Credit Note amends and restates, but does not constitute a novation  of the indebtedness evidenced by, that certain [Revolving Credit Note] in the maximum  principal amount of $[________], dated as of [________], issued by the Borrower in favor of  the Lender.]    All capitalized terms used herein shall, unless otherwise defined herein, have the same  meanings given to such terms in the Credit Agreement and Section 1.2 [Construction] of the Credit  Agreement shall apply to this Revolving Credit Note.  [SIGNATURE PAGE FOLLOWS]      

 

  THE DAYTON POWER AND LIGHT COMPANY  REVOLVING CREDIT NOTE  SIGNATURE PAGE  IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned has  executed this Revolving Credit Note by its duly authorized officer with the intention that it  constitute a sealed instrument.  THE DAYTON POWER AND LIGHT  COMPANY      By:    Name:    Title:    

 

  1    166023985  EXHIBIT 1.1(N)(2)  FORM OF  SWING LOAN NOTE  $25,000,000 New York, New York   __________, 20__  FOR VALUE RECEIVED, the undersigned, THE DAYTON POWER AND LIGHT  COMPANY, an Ohio corporation (herein called the “Borrower”), hereby unconditionally  promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the “Lender”), the  lesser of (i) the principal sum of Twenty Five Million Dollars (US$25,000,000), or (ii) the  aggregate unpaid principal balance of all Swing Loans made by the Lender to the Borrower  pursuant to the Second Amended and Restated Credit Agreement, dated as of the date hereof  among the Borrower, the Lenders now or hereafter party thereto, and the Lender, as administrative  agent (hereinafter referred to in such capacity as the “Administrative Agent”) (as amended,  restated, modified, or supplemented from time to time, the “Credit Agreement”), payable with  respect to each Swing Loan evidenced hereby on the earlier of (i) demand by the Lender or (ii) on  the Expiration Date.  The Borrower shall pay interest on the unpaid principal balance of each Swing Loan from  time to time outstanding from the date hereof at the rate per annum and on the date(s) provided in  the Credit Agreement. Subject to the provisions of the Credit Agreement, interest on this Swing  Loan Note will be payable pursuant to Section 5.5 [Interest Payment Dates] of, or as otherwise  provided in, the Credit Agreement. If any payment or action to be made or taken hereunder shall  be stated to be or become due on a day which is not a Business Day, such payment or action shall  be made or taken on the next following Business Day, unless otherwise provided in the Credit  Agreement, and such extension of time shall be included in computing interest or fees, if any, in  connection with such payment or action. Upon the occurrence and during the continuation of an  Event of Default, the Borrower shall pay interest on the entire principal amount of the then  outstanding Swing Loans evidenced by this Swing Loan Note at a rate per annum as set forth in  Section 4.3 [Interest After Default] of the Credit Agreement. Such interest rate will accrue before  and after any judgment has been entered.  Subject to the provisions of the Credit Agreement, payments of both principal and interest  shall be made without setoff, counterclaim or other deduction of any nature at the office of the  Administrative Agent located at 500 First Avenue, Pittsburgh, Pennsylvania 15219, unless  otherwise directed in writing by the holder hereof, in lawful money of the United States of America  in immediately available funds.  This Swing Loan Note is one of the Notes referred to in, and is entitled to the benefits of,  the Credit Agreement and the other Loan Documents, including the representations, warranties,  covenants, conditions contained therein. The Credit Agreement among other things contains  provisions for acceleration of the maturity hereof upon the happening of certain stated events and  also for prepayments, in certain circumstances, on account of principal hereof prior to maturity  upon the terms and conditions therein specified. The Borrower waives presentment, demand,  

 

  2    166023985  notice, protest and all other demands and notices in connection with the delivery, acceptance,  performance, default or enforcement of this Swing Loan Note and the Credit Agreement.  The Borrower acknowledges and agrees that the Lender may at any time and in its sole  discretion demand payment of all amounts outstanding under this Swing Loan Note without prior  notice to the Borrower.  This Swing Loan Note shall bind the Borrower and its successors and assigns, and the  benefits hereof shall inure to the benefit of the Lender and its successors and assigns. All references  herein to the “Borrower” and the “Lender” shall be deemed to apply to the Borrower and the  Lender, respectively, and their respective successors and assigns as permitted under the Credit  Agreement.  This Swing Loan Note and any other documents delivered in connection herewith and the  rights and obligations of the parties hereto and thereto shall for all purposes be governed, by and  construed and enforced in accordance with, the internal laws of the State of New York without  giving effect to its conflicts of law principles.  [This Swing Loan Note amends and restates, but does not constitute a novation of the  indebtedness evidenced by, that certain [Swing Loan Note] in the maximum principal  amount of $[________], dated as of [________], issued by the Borrower in favor of the  Lender.]  All capitalized terms used herein shall, unless otherwise defined herein, have the same  meanings given to such terms in the Credit Agreement and Section 1.2 [Construction] of the Credit  Agreement shall apply to this Swing Loan Note.  [SIGNATURE PAGE FOLLOWS]  

 

  THE DAYTON POWER AND LIGHT COMPANY  SWING LOAN NOTE  SIGNATURE PAGE  IN WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned  has executed this Swing Loan Note by its duly authorized officers with the intention that it  constitute a sealed instrument.  THE DAYTON POWER AND LIGHT  COMPANY      By:    Name:    Title:      

 

  166023985  EXHIBIT 2.6(A)  FORM OF  LOAN REQUEST  TO: PNC Bank, National Association, as Administrative Agent  PNC Firstside Center  500 First Avenue,  Pittsburgh, PA 15219  Telephone No.: (412) 768-2307  Telecopier No.: (412) 762-8672  Attn: The Dayton Power and Light Company Account Manager    FROM: The Dayton Power and Light Company, an Ohio corporation (the “Borrower”)    RE: Second Amended and Restated Credit Agreement (as it may be amended, restated,  modified or supplemented, the “Credit Agreement”), dated as of December 22,  2022, by and among the Borrower, the Lenders party thereto and PNC Bank,  National Association, as administrative agent for the Lenders, (the  “Administrative Agent”).    Capitalized terms not otherwise defined herein shall have the respective meanings given to  them by the Credit Agreement.  A. Pursuant to Section 2.6(a) [Revolving Credit Loan Requests; Loan Conversions and  Renewals] of the Credit Agreement, the undersigned Borrower irrevocably requests [check  one line under 1(a) below and fill in blank space next to the line as appropriate]:  1(a)   A new Loan, OR     Renewal of the Term SOFR Rate Option applicable to an  outstanding Loan originally made on ______________, 20__, OR     Conversion of the Base Rate Option applicable to an outstanding  Loan originally made on ________________, 20__ to a Loan to  which the Term SOFR Rate Option applies, OR     Conversion of the Term SOFR Rate Option applicable to an  outstanding Loan originally made on ____________ __, 20__ to a  Loan to which the Base Rate Option applies.  SUCH NEW, RENEWED OR CONVERTED LOAN SHALL BEAR INTEREST:  [Check one line under 1(b) below and fill in blank spaces in line next to line]:  1(b)(i)   Under the Base Rate Option. Such Loan shall have a Borrowing  Date of _______________, 20___ (which date shall be the same  Business Day of receipt by the Administrative Agent by 11:00 a.m.  

 

  5  166023985  eastern time of this Loan Request for making a new Loan to which  the Base Rate Option applies, or the last day of the preceding Interest  Period if a Loan to which the Term SOFR Rate Option applies is  being converted to a Loan to which the Base Rate Option applies).  OR  1(b)(ii)   Under the Term SOFR Rate Option. Such Loan shall have a  Borrowing Date of _________________, 20__ (which date shall be  three (3) Business Days subsequent to the Business Day of receipt  by the Administrative Agent by 11:00 a.m. eastern time of this Loan  Request for making a new Loan to which the Term SOFR Rate  Option applies, renewing a Loan to which the Term SOFR Rate  Option applies, or converting a Loan to which the Base Rate Option  applies to a Loan to which the Term SOFR Rate Option applies).  2 Such Loan is in the principal amount of U.S. $___________ or the principal amount  to be renewed or converted is U.S. $________________  [in increments of $100,000 and not less than $500,000 for each Borrowing Tranche  under the Term SOFR Rate Option and the Base Rate Option]  3 [Complete blank below if the Borrower is selecting the Term SOFR Rate Option]:  Such Loan shall have an Interest Period of one, three, or six month(s):  ________________________________  B. As of the date hereof and the date of making the above-requested Loan (and after giving  effect thereto):   1 The representations and warranties of the Borrower contained in Section 6 of the  Credit Agreement are true and correct in all material respects, except that (a) if a  qualifier relating to materiality, Material Adverse Change or a similar concept  applies, such representation or warranty is true and correct in all respects, (b) to the  extent that such representations and warranties specifically refer to an earlier date,  in which case they are true and correct in all material respects as of such earlier date  (except that if a qualifier relating to materiality, Material Adverse Change or a  similar concept applies, such representation or warranty is true and correct in all  respects), (c) the representations and warranties contained in subsections (a) and  (b) of Section 6.5 of the Credit Agreement shall be deemed to refer to the most  recent statements furnished pursuant to clauses (a)(i) and (a)(ii), respectively, of  Section 8.1 of the Credit Agreement and (d) the representations and warranties  contained in Section 6.5(c) and 6.6(a)(ii) of the Credit Agreement do not need to  be true and correct for any extension of credit after the Closing Date.  2 No Potential Default exists, or would result from such proposed extension of credit  or from the application of the proceeds thereof.  

 

  6  166023985  3 The Borrower has all approvals, consents and authorizations from PUCO which are  necessary or required in order to permit the Borrower to incur the Obligations  attributable to the above-requested Loan.  C. The undersigned hereby irrevocably requests [check one line below and fill in blank spaces  next to the line as appropriate]:  1   Funds to be deposited into a PNC Bank account per our current  standing instructions. Complete amount of deposit if not full loan  advance amount:                       U.S. $_____________.   2   Funds to be wired per the following wire instructions:  U.S. $________________________ Amount of Wire Transfer  Bank Name:    ABA:    Account Number:    Account Name:    Reference:    3   Funds to be wired per the attached Funds Flow (multiple wire  transfers).  [SIGNATURE PAGE FOLLOWS]      

 

  THE DAYTON POWER AND LIGHT COMPANY  LOAN REQUEST  SIGNATURE PAGE  The Borrower certifies to the Administrative Agent for the benefit of the Lenders as to the  accuracy of the foregoing on ____________________, 20___.  BORROWER:    THE DAYTON POWER AND LIGHT COMPANY       By:   Name:   Title:       

 

  1    166023985  EXHIBIT 2.6(B)  FORM OF  SWING LOAN REQUEST  TO: PNC Bank, National Association, as Administrative Agent  PNC Firstside Center  500 First Avenue, Mail-Stop: P7PFSC-05-W  Pittsburgh, PA 15219  Telephone No.: (412) 768-5439  Telecopier No.: (412) 705-2006  Attn: The Dayton Power and Light Company Account Manager    FROM: The Dayton Power and Light Company, an Ohio corporation (the “Borrower”)    RE: Second Amended and Restated Credit Agreement (as it may be amended, restated,  modified or supplemented, the “Credit Agreement”), dated as of December 22,  2022, by and among the Borrower, the Lenders party thereto and PNC Bank,  National Association, as administrative agent for the Lenders, (the  “Administrative Agent”).  Capitalized terms not otherwise defined herein shall have the respective meanings given to  them by the Credit Agreement.  Pursuant to Section 2.6(b) of the Agreement, the Borrower hereby makes the following  Swing Loan Request:  A. Aggregate principal amount of such Swing Loan (may not be less than $100,000)    U.S. $     B. Such Swing Loan shall be at the [Base Rate Option] [Daily SOFR Option]    C. Proposed Borrowing Date (which date shall be on or after the date on which the  Administrative Agent receives this Swing Loan Request, with such Swing Loan Request  to be received no later than 12:00 p.m. eastern time on the Borrowing Date)      D. As of the date hereof and the date of making the above-requested Swing Loan (and after  giving effect thereto):   1 The representations and warranties of the Borrower contained in Section 6 of the  Credit Agreement are true and correct in all material respects, except that (a) if a  qualifier relating to materiality, Material Adverse Change or a similar concept  applies, such representation or warranty is true and correct in all respects, (b) to the  extent that such representations and warranties specifically refer to an earlier date,  in which case they are true and correct in all material respects as of such earlier date  (except that if a qualifier relating to materiality, Material Adverse Change or a  similar concept applies, such representation or warranty is true and correct in all  

 

  2    166023985  respects), (c) the representations and warranties contained in subsections (a) and  (b) of Section 6.5 of the Credit Agreement shall be deemed to refer to the most  recent statements furnished pursuant to clauses (a)(i) and (a)(ii), respectively, of  Section 8.1 of the Credit Agreement and (d) the representations and warranties  contained in Section 6.5(c) and 6.6(a)(ii) of the Credit Agreement do not need to  be true and correct for any extension of credit after the Closing Date.  2 No Potential Default exists, or would result from such proposed extension of credit  or from the application of the proceeds thereof.  3 The Borrower has all approvals, consents and authorizations from PUCO which are  necessary or required in order to permit the Borrower to incur the Obligations  attributable to the above-requested Swing Loan.  E. The undersigned hereby irrevocably requests [check one line below and fill in blank spaces  next to the line as appropriate]:  1   Funds to be deposited into a PNC Bank account per our current  standing instructions. Complete amount of deposit if not full loan  advance amount:                       U.S. $_____________.   2   Funds to be wired per the following wire instructions:  U.S. $________________________ Amount of Wire Transfer  Bank Name:    ABA:    Account Number:    Account Name:    Reference:    3   Funds to be wired per the attached Funds Flow (multiple wire  transfers).  [SIGNATURE PAGE FOLLOWS]      

 

  THE DAYTON POWER AND LIGHT COMPANY  SWING LOAN REQUEST  SIGNATURE PAGE  The Borrower certifies to the Administrative Agent for the benefit of the Lenders as to  the accuracy of the foregoing on ____________________, 20___.  THE DAYTON POWER AND LIGHT  COMPANY      By:   Name:    Title:     

 

  1    166023985  EXHIBIT 2.13  FORM OF  LENDER JOINDER  THIS LENDER JOINDER AND ASSUMPTION AGREEMENT (the “Joinder”) is made  as of __________________, 20__ (the “Effective Date”) by _______________________, (the  “New Lender”).  BACKGROUND  Reference is made to the Second Amended and Restated Credit Agreement dated as of  December 22, 2022 among The Dayton Power and Light Company, an Ohio corporation (the  “Borrower”), the Lenders now or hereafter party thereto and PNC Bank, National Association, as  administrative agent for the Lenders (in such capacity, the “Administrative Agent”) (as the same  has been and may hereafter be amended, restated, modified or supplemented, from time to time,  the “Credit Agreement”). Capitalized terms defined in the Credit Agreement are used herein as  defined therein.  AGREEMENT  In consideration of the Lenders permitting the undersigned New Lender to become a  Lender under the Credit Agreement, the New Lender agrees that effective as of the Effective Date  it shall become, and shall be deemed to be, a Lender under the Credit Agreement and each of the  other Loan Documents and agrees that from the Effective Date and so long as the New Lender  remains a party to the Credit Agreement, such New Lender shall assume the obligations of a  Lender under and perform, comply with and be bound by each of the provisions of the Credit  Agreement which are stated to apply to a Lender and shall be entitled (in accordance with its  Ratable Share) to the benefits, rights and remedies set forth therein and in each of the other Loan  Documents. The New Lender hereby acknowledges that it has heretofore received (i) a true and  correct copy of the Credit Agreement (including any modifications thereof or supplements or  waivers thereto) as in effect on the Effective Date, and (ii) if requested by the New Lender, the  executed copy of its Revolving Credit Note dated the Effective Date issued by the Borrower under  the Credit Agreement in the face amount of $_______________.  The Commitments and Ratable Shares of the New Lender and each of the other Lenders  are as set forth on Schedule 1.1(B) to the Credit Agreement. Schedule 1.1(B) to the Credit  Agreement is being amended and restated effective as of the Effective Date hereof to read as set  forth on Schedule 1.1(B) hereto. Schedule 1 hereto lists as of the date hereof the amount of Loans  under each outstanding Borrowing Tranche. [Notwithstanding the foregoing on the date hereof,  the Borrower shall repay all outstanding Loans to which either the Base Rate Option or the Term  SOFR Rate Option applies and simultaneously reborrow a like amount of Loans under each such  Interest Rate Option from the Lenders (including the New Lender) according to the Ratable Shares  set forth on attached Schedule 1.1(B) and shall be subject to breakage fees and other indemnities  provided in Section 5.10 [Indemnity].]1    1 If applicable.  

 

  2    166023985  The New Lender is executing and delivering this Joinder as of the Effective Date and  acknowledges that it shall: (A) participate in all new Revolving Credit Loans borrowed by the  Borrower on and after the Effective Date according to its Ratable Share; and (B) participate in all  Letters of Credit outstanding on and after the Effective Date according to its Ratable Share.  This Joinder shall constitute a “Loan Document” for all purposes of the Credit Agreement.  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]      

 

    THE DAYTON POWER AND LIGHT COMPANY  LENDER JOINDER  SIGNATURE PAGE  IN WITNESS WHEREOF, the New Lender has duly executed and delivered this Joinder  as of the Effective Date.  [NEW LENDER]    By:        Name:        Title:            

 

      THE DAYTON POWER AND LIGHT COMPANY  LENDER JOINDER  SIGNATURE PAGE  ACKNOWLEDGED:  PNC BANK, NATIONAL ASSOCIATION,   as Administrative Agent      By:        Name:        Title:              BORROWER:  THE DAYTON POWER AND LIGHT COMPANY      By:        Name:        Title:          

 

      166023985  SCHEDULE 1.1(B)   COMMITMENTS OF LENDERS    

 

      166023985  SCHEDULE 1  OUTSTANDING TRANCHES    

 

      166023985  EXHIBIT 2.14(A)  FORM OF EXTENSION REQUEST1   ________________, 20__    PNC Bank, National Association, as Administrative Agent  Reference is made to the Second Amended and Restated Credit Agreement, dated as of  December 22, 2022 (as amended, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among The Dayton Power and Light Company, an Ohio corporation (the  “Borrower”), the Lenders party thereto and PNC Bank, National Association, as administrative  agent for the Lenders (in such capacity, the “Administrative Agent”). Unless otherwise defined  herein, terms defined in the Credit Agreement and used herein shall have the meanings given to  them in the Credit Agreement.  Pursuant to Section 2.14(a) of the Credit Agreement, the Borrower hereby requests that the  Lenders extend the Existing Expiration Date now in effect by a period of one year, to  [__________], 20__.   Very truly yours,  THE DAYTON POWER AND LIGHT  COMPANY      By:         Name:        Title:             1 Extension Request may be given at any time after the first anniversary of the Closing Date but prior to the date  which is 30 days prior to the Existing Expiration Date then in effect.  

 

      166023985  EXHIBIT 2.14(B)  FORM OF CONTINUATION NOTICE1   ________________, 20__    PNC Bank, National Association, as Administrative Agent  Reference is made to the Second Amended and Restated Credit Agreement, dated as of  December 22, 2022 (as amended, supplemented or otherwise modified from time to time, the  “Credit Agreement”), among The Dayton Power and Light Company, an Ohio corporation (the  “Borrower”), the Lenders party thereto and PNC Bank, National Association, as administrative  agent for the Lenders (in such capacity, the “Administrative Agent”). Unless otherwise defined  herein, terms defined in the Credit Agreement and used herein shall have the meanings given to  them in the Credit Agreement.  The undersigned Lender is delivering this Continuation Notice in response to the Extension  Request dated ________________, 20__. Pursuant to Section 2.14(b) of the Credit Agreement,  the undersigned Lender hereby consents, in its sole discretion, to the extension of the Existing  Expiration Date to ________________, 20__, as requested by the Borrower in the Extension  Request.  Very truly yours,  [NAME OF LENDER]      By:         Name:        Title:             1 Continuation Notice must be received by the Administrative Agent no later than the date that is 15 days after  receiving the applicable Extension Request from the Administrative Agent. Any Lender that fails to submit a  Continuation Notice by such date shall be deemed not to have consented to the requested extension and shall  constitute a Non-Extending Lender.  

 

      166023985  EXHIBIT 5.9(g)(A)   FORM OF U.S. TAX COMPLIANCE CERTIFICATE   (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Second Amended and Restated Credit Agreement  dated as of December 22, 2022 (as amended, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among The Dayton Power and Light Company, an Ohio  corporation (the “Borrower”), the Lenders party thereto and PNC Bank, National Association, as  administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as  well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,  (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten  percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and  (iv) it is not a controlled foreign corporation related to the Borrower as described in Section  881(c)(3)(C) of the Code.  The undersigned has furnished the Administrative Agent and the Borrower with a  certificate of its non-U.S. Person status on IRS Form W-8BEN. By executing this certificate, the  undersigned agrees that (1) if the information provided on this certificate changes, the undersigned  shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall  have at all times furnished the Borrower and the Administrative Agent with a properly completed  and currently effective certificate in either the calendar year in which each payment is to be made  to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF LENDER]    By:        Name:   Title:    Date:_______________, 20[__]    

 

      166023985  EXHIBIT 5.9(g)(B)   FORM OF U.S. TAX COMPLIANCE CERTIFICATE   (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Second Amended and Restated Credit Agreement  dated as of December 22, 2022 (as amended, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among The Dayton Power and Light Company, an Ohio  corporation (the “Borrower”), the Lenders party thereto and PNC Bank, National Association, as  administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation  in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section  881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the  meaning of Section 881(c)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation  related to the Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished its participating Lender with a certificate of its non- U.S. Person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees  that (1) if the information provided on this certificate changes, the undersigned shall promptly so  inform such Lender in writing, and (2) the undersigned shall have at all times furnished such  Lender with a properly completed and currently effective certificate in either the calendar year in  which each payment is to be made to the undersigned, or in either of the two calendar years  preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]    By:        Name:   Title:    Date:_______________, 20[__]    

 

      166023985  EXHIBIT 5.9(g)(C)   FORM OF U.S. TAX COMPLIANCE CERTIFICATE   (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Second Amended and Restated Credit Agreement  dated as of December 22, 2022 (as amended, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among The Dayton Power and Light Company, an Ohio  corporation (the “Borrower”), the Lenders party thereto and PNC Bank, National Association, as  administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the  undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of  which it is providing this certificate, (ii) its direct or indirect partners/members are the sole  beneficial owners of such participation, (iii) with respect such participation, neither the  undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant  to a loan agreement entered into in the ordinary course of its trade or business within the meaning  of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten  percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and  (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the  Borrower as described in Section 881(c)(3)(C) of the Code.  The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by one of the following forms from each of its partners/members that is claiming the  portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied  by an IRS Form W-8BEN from each of such partner’s/member’s beneficial owners that is claiming  the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if  the information provided on this certificate changes, the undersigned shall promptly so inform  such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly  completed and currently effective certificate in either the calendar year in which each payment is  to be made to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF PARTICIPANT]    By:        Name:   Title:    Date:___________________, 20[__]    

 

      166023985  EXHIBIT 5.9(g)(D)   FORM OF U.S. TAX COMPLIANCE CERTIFICATE   (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)  Reference is hereby made to the Second Amended and Restated Credit Agreement  dated as of December 22, 2022 (as amended, supplemented or otherwise modified from time to  time, the “Credit Agreement”), among The Dayton Power and Light Company, an Ohio  corporation (the “Borrower”), the Lenders party thereto and PNC Bank, National Association, as  administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  Pursuant to the provisions of Section 5.9 [Taxes] of the Credit Agreement, the  undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any  Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct  or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s)  evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit  Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect  partners/members is a bank extending credit pursuant to a loan agreement entered into in the  ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,  (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower  within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect  partners/members is a controlled foreign corporation related to the Borrower as described in  Section 881(c)(3)(C) of the Code.  The undersigned has furnished the Administrative Agent and the Borrower with  IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members  that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W- 8IMY accompanied by an IRS Form W-8BEN from each of such partner’s/member’s beneficial  owners that is claiming the portfolio interest exemption. By executing this certificate, the  undersigned agrees that (1) if the information provided on this certificate changes, the undersigned  shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall  have at all times furnished the Borrower and the Administrative Agent with a properly completed  and currently effective certificate in either the calendar year in which each payment is to be made  to the undersigned, or in either of the two calendar years preceding such payments.  Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.  [NAME OF LENDER]    By:        Name:   Title:    Date:___________________, 20[__]  

 

166023985  EXHIBIT 8.1(c)  FORM OF COMPLIANCE CERTIFICATE  Financial Statement Date:              _______, 20__    To: PNC Bank, National Association, as Administrative Agent  Ladies and Gentlemen:  Reference is made to that certain Second Amended and Restated Credit Agreement, dated  as of December 22, 2022 (as amended, restated, extended, supplemented or otherwise modified in  writing from time to time, the “Credit Agreement;” the terms defined therein being used herein as  therein defined), among The Dayton Power and Light Company, an Ohio corporation (the  “Borrower”), the Lenders party thereto and PNC Bank, National Association, as administrative  agent for the Lenders (in such capacity, the “Administrative Agent”).  The undersigned Authorized Officer, solely in his/her capacity as an Authorized Officer of  the Borrower and not in his/her individual capacity and without personal liability to the  Administrative Agent or the Lenders with respect hereto, on behalf of the Borrower, hereby  certifies as of the date hereof that he/she is the [  ] of the Borrower, and that, as such, he/she is authorized to execute and deliver this  Certificate to the Administrative Agent on behalf of the Borrower, and that:  [Use following paragraph 1 for fiscal year-end financial statements]  1. The Borrower has delivered the year-end audited financial statements required by Section 8.1(a)(ii) of the Credit Agreement for the fiscal year of the Borrower ended as of the above  date, together with the report and opinion of an independent certified public accountant required  by such section.  [Use following paragraph 1 for fiscal quarter-end financial statements]  1. The Borrower has delivered the unaudited financial statements required by Section 8.1(a)(i) of the Credit Agreement for the fiscal quarter of the Borrower ended as of the above date.  Such financial statements fairly present the financial condition, results of operations, shareholder’s  equity and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such  date and for such period, subject only to normal year-end audit adjustments and the absence of  footnotes.  2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a reasonably detailed review of the  

 

      166023985  transactions and condition (financial or otherwise) of the Borrower during the accounting period  covered by such financial statements, and     [select one:]    [to the knowledge of the undersigned, as of the date hereof no Potential Default has occurred  and is continuing.]  --or—    [to the knowledge of the undersigned, the following is a list of each such Potential  Default and its nature and status:]  3. The representations and warranties of the Borrower contained in Section 6 of the  Agreement are true and correct in all material respects on and as of the date hereof, except that (i)  if a qualifier relating to materiality, Material Adverse Change or a similar concept applies, such  representation or warranty is true and correct in all respects, (ii) to the extent that such  representations and warranties specifically refer to an earlier date, in which case they are true and  correct in all material respects as of such earlier date (except that if a qualifier relating to  materiality, Material Adverse Change or a similar concept applies, such representation or warranty  is true and correct in all respects), (iii) for purposes of this Compliance Certificate, the  representations and warranties contained in subsections (a) and (b) of Section 6.5 of the Credit  Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses  (a)(i) and (a)(ii), respectively, of Section 8.1 of the Credit Agreement, including the statements in  connection with which this Compliance Certificate is delivered, and (iv) the representations and  warranties contained in Section 6.5(c) and 6.6(a)(ii) of the Credit Agreement do not need to be  true and correct for any reporting period after the Closing Date.    4. The financial covenant analyses and information set forth on Schedule 1 attached  hereto are true and accurate in all material respects on and as of the date of this Compliance  Certificate.  IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of     ,   .  THE DAYTON POWER AND LIGHT  COMPANY    By:     Name:     Title:     

 

      166023985  For the Quarter/Year ended ___________________(“Statement Date”)    SCHEDULE 1  to the Compliance Certificate  ($ in 000’s)    Section 8.2(k) – Consolidated Total Debt to Consolidated Total  Capitalization  I. Consolidated Total Debt at Statement Date2:  $   II. Consolidated Total Capitalization at Statement Date:  A. Consolidated Total Debt (Line I above): $   B. + Consolidated Net Worth (less Redeemable Stocks): $   C. + Preferred stock of the Borrower (that is not Redeemable  Stock):    $   D.  = Consolidated Total Capitalization: $   III. Ratio (Line I ÷ Line II.D):     to 1.00  Maximum permitted (see Section 8.2(k))  0.67 to 1.00          2  Such amount not to include the Borrower’s guarantee of any debt obligation of Ohio Valley Electric Corporation.Exhibit
10.1

 

EXECUTION
VERSION

 

PURCHASE
AGREEMENT

 

THIS
PURCHASE AGREEMENT (the “Agreement”), dated as of December 22, 2022, is made by and between INDAPTUS THERAPEUTICS,
INC., a Delaware corporation (the “Company”), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability
company (the “Investor”).

 

WHEREAS:

 

Subject
to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Investor, and the Investor wishes to buy from
the Company, up to Twenty Million Dollars ($20,000,000) of the Company’s common stock, $0.01 par value per share (the “Common
Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

NOW
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.
CERTAIN DEFINITIONS.

 

For
purposes of this Agreement, the following terms shall have the following meanings:

 

(a)
“Accelerated Purchase Date” means,
with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the Business Day immediately following the applicable
Purchase Date with respect to the corresponding Regular Purchase referred to in Section 2(b) hereof.

 

(b)
 “Accelerated Purchase Minimum Price Threshold”
means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, any minimum per share price threshold set
forth by the Company in the applicable Accelerated Purchase Notice.

 

(c)
“Accelerated Purchase Notice” means,
with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, an irrevocable written notice from the Company
to the Investor directing the Investor to purchase the applicable Accelerated Purchase Share Amount at the Accelerated Purchase Price
on the Accelerated Purchase Date for such Accelerated Purchase in accordance with this Agreement, and specifying any Accelerated Purchase
Minimum Price Threshold determined by the Company.

 

(d)
“Accelerated Purchase Price” means,
with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the lower of ninety-seven percent (97%) of (i)
the VWAP for the period beginning at 9:30:01 a.m., Eastern time, on the applicable Accelerated Purchase Date, or such other time publicly
announced by the Principal Market as the official open (or commencement) of trading on the Principal Market on such applicable Accelerated
Purchase Date (the “Accelerated Purchase Commencement Time”), and ending at the earliest of (A) 4:00:00 p.m., Eastern
time, on such applicable Accelerated Purchase Date, or such other time publicly announced by the Principal Market as the official close
of trading on the Principal Market on such applicable Accelerated Purchase Date, (B) such time, from and after the Accelerated Purchase
Commencement Time for such Accelerated Purchase, that the total number (or volume) of shares of Common Stock traded on the Principal
Market has exceeded the applicable Accelerated Purchase Share Volume Maximum, and (C) such time, from and after the Accelerated Purchase
Commencement Time for such Accelerated Purchase, that the Sale Price has fallen below the applicable Accelerated Purchase Minimum Price
Threshold (such earliest of (i)(A), (i)(B) and (i)(C) above, the “Accelerated Purchase Termination Time”), and (ii)
the Closing Sale Price of the Common Stock on such applicable Accelerated Purchase Date (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	 

     

    

 

(e)
“Accelerated Purchase Share Amount”
means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, the number of Purchase Shares directed by
the Company to be purchased by the Investor in an Accelerated Purchase Notice, which number of Purchase Shares shall not exceed the lesser
of (i) 300% of the number of Purchase Shares directed by the Company to be purchased by the Investor pursuant to the corresponding Regular
Purchase Notice for the corresponding Regular Purchase referred to in Section 2(b) hereof (subject to the Purchase Share limitations
contained in Section 2(a) hereof) and (ii) an amount equal to (A) the Accelerated Purchase Share Percentage multiplied by (B)
the total number (or volume) of shares of Common Stock traded on the Principal Market during the period on the applicable Accelerated
Purchase Date beginning at the Accelerated Purchase Commencement Time for such Accelerated Purchase and ending at the Accelerated Purchase
Termination Time for such Accelerated Purchase.

 

(f)
“Accelerated Purchase Share Percentage”
means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, thirty percent (30%).

 

(g)
“Accelerated Purchase Share Volume Maximum”
means, with respect to any Accelerated Purchase made pursuant to Section 2(b) hereof, a number of shares of Common Stock equal
to (i) the applicable Accelerated Purchase Share Amount properly directed by the Company to be purchased by the Investor in the applicable
Accelerated Purchase Notice for such Accelerated Purchase, divided by (ii) the Accelerated Purchase Share Percentage (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(h)
“Additional Accelerated Purchase Date”
means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, the Business Day (i) that is
the Accelerated Purchase Date with respect to the corresponding Accelerated Purchase referred to in Section 2(b) hereof and (ii)
on which the Investor receives, prior to 1:00 p.m., Eastern time, on such Business Day, a valid Additional Accelerated Purchase Notice
for such Additional Accelerated Purchase in accordance with this Agreement.

 

(i)
 “Additional Accelerated Purchase Minimum Price
Threshold” means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, any minimum
per share price threshold set forth by the Company in the applicable Additional Accelerated Purchase Notice.

 

(j)
“Additional Accelerated Purchase Notice”
means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, an irrevocable written notice
from the Company to the Investor directing the Investor to purchase the applicable Additional Accelerated Purchase Share Amount at the
Additional Accelerated Purchase Price for such Additional Accelerated Purchase in accordance with this Agreement, and specifying any
Additional Accelerated Purchase Minimum Price Threshold determined by the Company.

 

(k)
“Additional Accelerated Purchase Price”
means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, the lower of ninety-seven percent
(97%) of (i) the VWAP for the period on the applicable Additional Accelerated Purchase Date, beginning at the latest of (A) the applicable
Accelerated Purchase Termination Time with respect to the corresponding Accelerated Purchase referred to in Section 2(c) hereof
on such Additional Accelerated Purchase Date, (B) the applicable Additional Accelerated Purchase Termination Time with respect to the
most recently completed prior Additional Accelerated Purchase on such Additional Accelerated Purchase Date, as applicable, and (C) the
time at which all Purchase Shares subject to all prior Accelerated Purchases and Additional Accelerated Purchases (as applicable), including,
without limitation, those that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with
respect to which the applicable Additional Accelerated Purchase relates, have theretofore been received by the Investor as DWAC Shares
in accordance with this Agreement (such latest of (i)(A), (i)(B) and (i)(C) above, the “Additional Accelerated Purchase Commencement
Time”), and ending at the earliest of (X) 4:00 p.m., Eastern time, on such Additional Accelerated Purchase Date, or such other
time publicly announced by the Principal Market as the official close of trading on the Principal Market on such Additional Accelerated
Purchase Date, (Y) such time, from and after the Additional Accelerated Purchase Commencement Time for such Additional Accelerated Purchase,
that the total number (or volume) of shares of Common Stock traded on the Principal Market has exceeded the applicable Additional Accelerated
Purchase Share Volume Maximum, and (Z) such time, from and after the Additional Accelerated Purchase Commencement Time for such Additional
Accelerated Purchase, that the Sale Price has fallen below the applicable Additional Accelerated Purchase Minimum Price Threshold (such
earliest of (i)(X), (i)(Y) and (i)(Z) above, the “Additional Accelerated Purchase Termination Time”), and (ii) the
Closing Sale Price of the Common Stock on such Additional Accelerated Purchase Date (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	-2-

     

    

 

(l)
“Additional Accelerated Purchase Share Amount”
means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, the number of Purchase Shares
directed by the Company to be purchased by the Investor on an Additional Accelerated Purchase Notice, which number of Purchase Shares
shall not exceed the lesser of (i) 300% of the number of Purchase Shares directed by the Company to be purchased by the Investor pursuant
to the corresponding Regular Purchase Notice for the corresponding Regular Purchase referred to in Section 2(c) hereof (subject
to the Purchase Share limitations contained in Section 2(a) hereof) and (ii) an amount equal to (A) the Additional Accelerated
Purchase Share Percentage multiplied by (B) the total number (or volume) of shares of Common Stock traded on the Principal Market during
the period on the applicable Additional Accelerated Purchase Date beginning at the Additional Accelerated Purchase Commencement Time
for such Additional Accelerated Purchase and ending at the Additional Accelerated Purchase Termination Time for such Additional Accelerated
Purchase.

 

(m)
“Additional Accelerated Purchase Share Percentage”
means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, thirty percent (30%).

 

(n)
“Additional Accelerated Purchase Share Volume
Maximum” means, with respect to any Additional Accelerated Purchase made pursuant to Section 2(c) hereof, a number of
shares of Common Stock equal to (i) the applicable Additional Accelerated Purchase Share Amount properly directed by the Company to be
purchased by the Investor in the applicable Additional Accelerated Purchase Notice for such Additional Accelerated Purchase, divided
by (ii) the Additional Accelerated Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

(o)
“Additional Commitment
Shares” has the meaning set forth in Section 5(e).

 

(p)
“Additional Commitment Shares Number”
means $125,000 divided by the arithmetic average of the ten (10) Nasdaq Official Closing Prices for the Common Stock immediately preceding
the date that the Company has sold over $10,000,000 Purchase Shares to the Investor, provided that the Additional Commitment Shares Number
shall be no greater than 76,220.

 

(q)
“Alternate Adjusted
Regular Purchase Share Limit” means, with respect to a Regular Purchase made pursuant to Section 2(a) hereof, the maximum
number of Purchase Shares which, taking into account the applicable per share Purchase Price therefor calculated in accordance with this
Agreement, would enable the Company to deliver to the Investor, on the applicable Purchase Date for such Regular Purchase, a Regular
Purchase Notice for a Purchase Amount equal to, or as closely approximating without exceeding, One Hundred Fifty Thousand Dollars $150,000.

 

    	-3-

     

    

 

(r)
“Applicable Laws” means, with respect
to any Person, the common law and any federal, provincial, state, territorial, local, foreign, multinational or international laws, statutes,
codes, treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments, writs, injunctions, decrees or settlement
agreements (including administrative or judicial precedents or authorities) and the interpretation or administration thereof by, and
other determinations, directives, requirements or requests of, any governmental authority, in each case whether or not having the force
of law and, in each case, that are applicable to or binding upon such Person or any of its property or to which such Person or any of
its property is subject.

 

(s)
“Available Amount” means, initially,
Twenty Million Dollars ($20,000,000) in the aggregate, which amount shall be reduced by the Purchase Amount each time the Investor purchases
shares of Common Stock pursuant to Section 2 hereof.

 

(t)
“Bankruptcy Law” means Title 11,
U.S. Code, or any similar federal or state law for the relief of debtors.

 

(u)
“Business Day” means any day on which
the Principal Market is open for trading, including any day on which the Principal Market is open for trading for a period of time less
than the customary time.

 

(v)
“Bylaws” means the Company’s
Amended and Restated Bylaws.

 

(w)
“Charter” means the Company’s
Certificate of Incorporation, as amended.

 

(x)
“Closing Sale Price” means, for any
security as of any date, the last closing sale price for such security on the Principal Market as reported by the Principal Market.

 

(y)
“Commitment Shares” has the meaning
set forth in Section 5(e).

 

(z)
“Confidential Information” means
any information disclosed by either party to the other party, either directly or indirectly, in writing, orally or by inspection of tangible
objects (including, without limitation, documents, prototypes, samples, plant and equipment), which is designated, either orally or in
writing, as “Confidential,” “Proprietary” or some similar designation. Information communicated orally shall
be considered Confidential Information if such information is confirmed in writing as being Confidential Information within ten (10)
Business Days after the initial disclosure. Confidential Information may also include information disclosed to a disclosing party by
third parties. Confidential Information shall not, however, include any information which (i) was publicly known and made generally available
in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly known and made generally available
after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving party; (iii) is already
in the possession of the receiving party without confidential restriction at the time of disclosure by the disclosing party as shown
by the receiving party’s files and records; (iv) is obtained by the receiving party from a third party and is not known by the
receiving party to be a breach of such third party’s obligations of confidentiality; or (v) is independently developed by the receiving
party without use of or reference to the disclosing party’s Confidential Information, as shown by documents and other competent
evidence in the receiving party’s possession.

 

(aa)
“Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

 

(bb)
“DTC” means The Depository Trust
Company, or any successor performing substantially the same function for the Company.

 

    	-4-

     

    

 

(cc)
“DWAC Shares” means shares of Common
Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely
credited by the Company, once a DWAC notice is received, to the Investor’s or its designee’s specified Deposit/Withdrawal
at Custodian (DWAC) account with DTC under its Fast Automated Securities Transfer (FAST) Program, or any similar program hereafter adopted
by DTC performing substantially the same function.

 

(dd)
“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(ee)
 “Fully Adjusted Regular Purchase Share Limit”
means, with respect to any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction from and after
the date of this Agreement, the Regular Purchase Share Limit (as defined in Section 2(a) hereof) in effect on the applicable date
of determination, after giving effect to the full proportionate adjustment thereto made pursuant to Section 2(a) hereof for or
in respect of such reorganization, recapitalization, non-cash dividend, stock split or other similar transaction.

 

(ff)
“Initial Commitment Shares” has the
meaning set forth in Section 5(e).

 

(gg)
“Material Adverse Effect” means any
material adverse effect on (i) the enforceability of any Transaction Document, (ii) the results of operations, operations, assets, business
or financial condition of the Company and its Subsidiaries, taken as a whole, other than any material adverse effect that resulted exclusively
from (A) any change in the United States or foreign economies or securities or financial markets in general that does not have a disproportionate
effect on the Company and its Subsidiaries, taken as a whole, (B) any change that generally affects the industry in which the Company
and its Subsidiaries operate that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (C)
any change arising in connection with earthquakes, a pandemic, hostilities, acts of war, sabotage or terrorism or military actions or
any escalation or material worsening of any such pandemic, hostilities, acts of war, sabotage or terrorism or military actions existing
as of the date hereof that does not have a disproportionate effect on the Company and its Subsidiaries, taken as a whole, (D) any action
taken by the Investor, its affiliates or its or their successors and assigns with respect to the transactions contemplated by this Agreement,
(E) the effect of any change in applicable laws or accounting rules that does not have a disproportionate effect on the Company and its
Subsidiaries, taken as a whole, or (F) any change resulting from compliance with terms of this Agreement or the consummation of the transactions
contemplated by this Agreement, or (iii) the Company’s ability to perform in any material respect on a timely basis its obligations
under any Transaction Document to be performed as of the date of determination.

 

(hh)
“Maturity Date” means the first day
of the month immediately following the thirty-six (36) month anniversary of the Commencement Date; provided that the Company may, upon
written notice delivered by the Company to the Investor not more than 60 and not fewer than 30 days prior to the thirty six (36) month
anniversary of the Commencement Date, extend the Maturity Date to the first day of the month immediately following the forty-eight (48)
month anniversary of the Commencement Date, provided that the conditions set forth in Section 8 hereof shall have been satisfied
as of the date of such notice, as certified by the Company in such notice.

 

(ii)
“PEA Period” means the period commencing
at 9:30 a.m., Eastern time, on the tenth (10th) Business Day immediately prior to the filing of any post-effective amendment
to the Registration Statement (as defined herein) or New Registration Statement (as such term is defined in the Registration Rights Agreement),
and ending at 9:30 a.m., Eastern time, on the Business Day immediately following, the effective date of any post-effective amendment
to the Registration Statement (as defined herein) or New Registration Statement (as such term is defined in the Registration Rights Agreement).

 

    	-5-

     

    

 

(jj)
“Person” means an individual or entity
including but not limited to any limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

(kk)
 “Principal Market” means The Nasdaq
Capital Market (or any nationally recognized successor thereto); provided, however, that in the event the Company’s Common Stock
is at any time not listed on The Nasdaq Capital Market (or any nationally recognized successor thereto) but is listed or traded on The
Nasdaq Global Select Market, The Nasdaq Global Market, the New York Stock Exchange, the NYSE American, the NYSE Arca, the OTC Bulletin
Board, or the OTCQX or OTCQB operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing),
then the “Principal Market” shall mean such other market or exchange which then constitutes the principal trading market
for the Company’s Common Stock.

 

(ll)
“Purchase Amount” means, with respect
to any Regular Purchase, any Accelerated Purchase, or any Additional Accelerated Purchase made hereunder, as applicable, the portion
of the Available Amount to be purchased by the Investor pursuant to Section 2 hereof.

 

(mm)
“Purchase Date” means, with respect
to a Regular Purchase made pursuant to Section 2(a) hereof, the Business Day on which the Investor receives, after 4:00 p.m.,
Eastern time, but prior to 6:00 p.m., Eastern time, on such Business Day, a valid Regular Purchase Notice for such Regular Purchase in
accordance with this Agreement.

 

(nn)
“Purchase Price” means, with respect
to a Regular Purchase made pursuant to Section 2(a) hereof, the lower of: (i) the lowest Sale Price on the Purchase Date for such
Regular Purchase or (ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10)
consecutive Business Days ending on the Business Day immediately preceding such Purchase Date for such Regular Purchase (in each case,
to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that
occurs on or after the date of this Agreement).

 

(oo)
“Registration Rights Agreement” means
that certain Registration Rights Agreement, of even date herewith between the Company and the Investor.

 

(pp)
“Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

 

(qq)
“Regular Purchase Notice” means,
with respect to a Regular Purchase pursuant to Section 2(a) hereof, an irrevocable written notice from the Company to the Investor
directing the Investor to buy a specified number of Purchase Shares (subject to the Purchase Share limitations contained in Section
2(a) hereof) at the applicable Purchase Price for such Regular Purchase in accordance with this Agreement.

 

(rr)
“Sale Price” means any trade price
for the shares of Common Stock on the Principal Market as reported by the Principal Market.

 

(ss)
“SEC” means the U.S. Securities and
Exchange Commission.

 

(tt)
“Securities” means, collectively,
the Purchase Shares and the Commitment Shares (as defined below).

 

(uu)
“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

    	-6-

     

    

 

(vv)
“Subsidiary” means any Person the
Company wholly-owns or controls, or in which the Company, directly or indirectly, owns a majority of the voting stock or similar voting
interest, in each case that would be disclosable pursuant to Item 601(b)(21) of Regulation S-K promulgated under the Securities Act.

 

(ww)
 “Transaction Documents” means, collectively,
this Agreement and the schedules and exhibits hereto, the Registration Rights Agreement and the schedules and exhibits thereto.

 

(xx)
“Transfer Agent” means VStock Transfer,
LLC, or such other Person who is then serving as the transfer agent for the Company in respect of the Common Stock.

 

(yy)
“VWAP” means in respect of an Accelerated
Purchase Date and an Additional Accelerated Purchase Date, as applicable, the volume weighted average price of the Common Stock on the
Principal Market, as reported on the Principal Market.

 

2.
PURCHASE OF COMMON STOCK.

 

Subject
to the terms and conditions set forth in this Agreement, the Company has the right, but not the obligation to sell to the Investor, in
the Company’s sole and absolute discretion, and the Investor has the obligation to purchase from the Company, Purchase Shares as
follows:

 

(a)
Commencement of Regular Sales of Common Stock.
Beginning one (1) Business Day following the satisfaction of the conditions set forth in Sections 7 and 8 hereof (the “Commencement”
and the date of satisfaction of such conditions the “Commencement Date”) and thereafter, the Company shall have the
right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Regular Purchase Notice from time to time,
to purchase up to One Hundred Thousand (100,000) Purchase Shares, provided that the Closing Sale Price of the Common Stock on the applicable
Purchase Date is not below $0.50 and subject to adjustment as set forth below in this Section 2(a) (such maximum number of Purchase Shares,
as may be adjusted from time to time, the “Regular Purchase Share Limit”), at the Purchase Price on the Purchase Date (each
such purchase a “Regular Purchase”); provided, however, that the Regular Purchase Share Limit shall
be increased to: (i) up to One Hundred Fifty Thousand (150,000) Purchase Shares, if the Closing Sale Price of the Common Stock on the
applicable Purchase Date is not below $3.00, and (ii) up to Two Hundred Thousand (200,000) Purchase Shares, if the Closing Sale Price
of the Common Stock on the applicable Purchase Date is not below $4.00 (all of which share and dollar amounts shall be appropriately
proportionately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction); provided
that if, after giving effect to the full proportionate adjustment to the Regular Purchase Share Limit therefor, the Fully Adjusted
Regular Purchase Share Limit then in effect would preclude the Company from delivering to the Investor a Regular Purchase Notice hereunder
for a Purchase Amount (calculated by multiplying (X) the number of Purchase Shares equal to the Fully Adjusted Regular Purchase Share
Limit, by (Y) the Purchase Price per Purchase Share covered by such Regular Purchase Notice on the applicable Purchase Date therefor)
equal to or greater than the Alternate Adjusted Regular Purchase Share Limit, the Regular Purchase Share Limit for such Regular Purchase
Notice shall not be fully adjusted to equal the applicable Fully Adjusted Regular Purchase Share Limit, but rather the Regular Purchase
Share Limit for such Regular Purchase Notice shall be adjusted to equal the applicable Alternate Adjusted Regular Purchase Share Limit
as of the applicable Purchase Date for such Regular Purchase Notice; and provided, further, however, that the Investor’s
committed obligation under any single Regular Purchase, other than any Regular Purchase with respect to which an Alternate Adjusted Regular
Purchase Share Limit shall apply, shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000), provided, however,
that the parties may agree to the sale and purchase of up to 400,000 Purchase Shares at any time at the regular Purchase Price. If the
Company delivers any Regular Purchase Notice for a Purchase Amount in excess of the limitations contained in the immediately preceding
sentence, such Regular Purchase Notice shall be void ab initio only with respect to the extent of the amount by which the number of Purchase
Shares set forth in such Regular Purchase Notice exceeds the number of Purchase Shares which the Company is permitted to include in such
Purchase Notice in accordance herewith, and the Investor shall have no obligation to purchase such excess Purchase Shares in respect
of such Regular Purchase Notice; provided, however, that the Investor shall remain obligated to purchase the number of Purchase Shares
which the Company is permitted to include in such Regular Purchase Notice. The Company may deliver a Regular Purchase Notice to the Investor
multiple times on the same Business Day, provided the Company has not failed to deliver Purchase Shares for the most recent prior Regular
Purchase. Notwithstanding the foregoing, the Company shall not deliver any Regular Purchase Notices during the PEA Period.

 

    	-7-

     

    

 

(b)
Accelerated Purchases. Subject to the terms and
conditions of this Agreement, from and after one (1) Business Day following the Commencement Date, in addition to purchases of Purchase
Shares as described in Section 2(a) above, the Company shall also have the right, but not the obligation, to direct the Investor,
by its delivery to the Investor of an Accelerated Purchase Notice from time to time in accordance with this Agreement, to purchase the
applicable Accelerated Purchase Share Amount at the Accelerated Purchase Price on the Accelerated Purchase Date therefor in accordance
with this Agreement (each such purchase, an “Accelerated Purchase”). The Company may deliver an Accelerated Purchase
Notice to the Investor only on a Purchase Date on which the Company also properly submitted a Regular Purchase Notice providing for a
Regular Purchase of a number of Purchase Shares not less than the Regular Purchase Share Limit then in effect on such Purchase Date in
accordance with this Agreement (including, without limitation, giving effect to any automatic increase to the Regular Purchase Share
Limit as a result of the Closing Sale Price of the Common Stock exceeding certain thresholds set forth in Section 2(a) above on
such Purchase Date and any other adjustments to the Regular Purchase Share Limit, in each case pursuant to Section 2(a) above).
If the Company delivers any Accelerated Purchase Notice directing the Investor to purchase an amount of Purchase Shares that exceeds
the Accelerated Purchase Share Amount that the Company is then permitted to include in such Accelerated Purchase Notice, such Accelerated
Purchase Notice shall be void ab initio only with respect to the extent of the amount by which the number of Purchase Shares set
forth in such Accelerated Purchase Notice exceeds the Accelerated Purchase Share Amount that the Company is then permitted to include
in such Accelerated Purchase Notice (which shall be confirmed in an Accelerated Purchase Confirmation), and the Investor shall have no
obligation to purchase such excess Purchase Shares in respect of such Accelerated Purchase Notice; provided, however, that
the Investor shall remain obligated to purchase the Accelerated Purchase Share Amount which the Company is permitted to include in such
Accelerated Purchase Notice. Within one (1) Business Day after completion of each Accelerated Purchase Date for an Accelerated Purchase,
the Investor will provide to the Company a written confirmation of such Accelerated Purchase setting forth the applicable Accelerated
Purchase Share Amount and Accelerated Purchase Price for such Accelerated Purchase (each, an “Accelerated Purchase Confirmation”).
Notwithstanding the foregoing, the Company shall not deliver any Accelerated Purchase Notices during the PEA Period.

 

(c)
Additional Accelerated Purchases. Subject to
the terms and conditions of this Agreement, from and after one (1) Business Day following the Commencement Date, in addition to purchases
of Purchase Shares as described in Section 2(a) and Section 2(b) above, the Company shall also have the right, but not
the obligation, to direct the Investor, by its timely delivery to the Investor of an Additional Accelerated Purchase Notice on an Additional
Accelerated Purchase Date in accordance with this Agreement, to purchase the applicable Additional Accelerated Purchase Share Amount
at the applicable Additional Accelerated Purchase Price therefor in accordance with this Agreement (each such purchase, an “Additional
Accelerated Purchase”). The Company may deliver multiple Additional Accelerated Purchase Notices to the Investor on an Additional
Accelerated Purchase Date; provided, however, that the Company may deliver an Additional Accelerated Purchase Notice to
the Investor only (i) on a Business Day that is also the Accelerated Purchase Date for an Accelerated Purchase with respect to which
the Company properly submitted to the Investor an Accelerated Purchase Notice in accordance with this Agreement on the applicable Purchase
Date for a Regular Purchase of a number of Purchase Shares not less than the Regular Purchase Share Limit then in effect in accordance
with this Agreement (including, without limitation, giving effect to any automatic increase to the Regular Purchase Share Limit as a
result of the Closing Sale Price of the Common Stock exceeding certain thresholds set forth in Section 2(a) above on such Purchase
Date and any other adjustments to the Regular Purchase Share Limit, in each case pursuant to Section 2(a) above), and (ii) if
all Purchase Shares subject to all prior Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, including, without
limitation, those that have been effected on the same Business Day as the applicable Additional Accelerated Purchase Date with respect
to which the applicable Additional Accelerated Purchase relates, in each case have theretofore been received by the Investor as DWAC
Shares in accordance with this Agreement. If the Company delivers any Additional Accelerated Purchase Notice directing the Investor to
purchase an amount of Purchase Shares that exceeds the Additional Accelerated Purchase Share Amount that the Company is then permitted
to include in such Additional Accelerated Purchase Notice, such Additional Accelerated Purchase Notice shall be void ab initio only
with respect to the extent of the amount by which the number of Purchase Shares set forth in such Additional Accelerated Purchase Notice
exceeds the Additional Accelerated Purchase Share Amount that the Company is then permitted to include in such Additional Accelerated
Purchase Notice (which shall be confirmed in an Additional Accelerated Purchase Confirmation), and the Investor shall have no obligation
to purchase such excess Purchase Shares in respect of such Additional Accelerated Purchase Notice; provided, however, that
the Investor shall remain obligated to purchase the Additional Accelerated Purchase Share Amount which the Company is permitted to include
in such Additional Accelerated Purchase Notice. Within one (1) Business Day after completion of each Additional Accelerated Purchase
Date, the Investor will provide to the Company a written confirmation of each Additional Accelerated Purchase on such Additional Accelerated
Purchase Date setting forth the applicable Additional Accelerated Purchase Share Amount and Additional Accelerated Purchase Price for
each such Additional Accelerated Purchase on such Additional Accelerated Purchase Date (each, an “Additional Accelerated Purchase
Confirmation”). Notwithstanding the foregoing, the Company shall not deliver any Additional Accelerated Purchase Notices during
the PEA Period.

 

    	-8-

     

    

 

(d)
Compliance with Principal Market Rules. Notwithstanding
anything in this Agreement to the contrary, and in addition to the limitations set forth in Section 2(e), the Company shall not
issue more than 1,650,893 shares (including the Commitment Shares) of Common Stock (the “Exchange Cap”) under this
Agreement, which equals 19.99% of the Company’s outstanding shares of Common Stock as of the date hereof, unless stockholder approval
is obtained to issue in excess of the Exchange Cap; provided, however, that the foregoing limitation shall not apply if
at any time the Exchange Cap is reached and at all times thereafter the average price paid for all shares of Common Stock issued under
this Agreement is equal to or greater than $1.64 (the “Minimum Price”), a price equal to the lower of (i) the Nasdaq
Official Closing Price immediately preceding the execution of this Agreement and (ii) the arithmetic average of the five (5) Nasdaq Official
Closing Prices for the Common Stock immediately preceding the execution of this Agreement, as calculated in accordance with the rules
of the Principal Market (in such circumstance, for purposes of the Principal Market, the transaction contemplated hereby would not be
“below market” and the Exchange Cap would not apply). Notwithstanding the foregoing, the Company shall not be required or
permitted to issue, and the Investor shall not be required to purchase, any shares of Common Stock under this Agreement if such issuance
would violate the rules or regulations of the Principal Market. The Company may, in its sole discretion, determine whether to obtain
stockholder approval to issue more than 19.99% of its outstanding shares of Common Stock hereunder if such issuance would require stockholder
approval under the rules or regulations of the Principal Market. The Exchange Cap shall be reduced, on a share-for-share basis, by the
number of shares of Common Stock issued or issuable that may be aggregated with the transactions contemplated by this Agreement under
applicable rules of the Principal Market.

 

(e)
Payment for Purchase Shares. For each Regular
Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with respect to such Regular Purchase, as applicable,
as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Investor
receives such Purchase Shares, if such Purchase Shares are received by the Investor before 1:00 p.m., Eastern time, or, if such Purchase
Shares are received by the Investor after 1:00 p.m., Eastern time, the next Business Day. For each Accelerated Purchase and each Additional
Accelerated Purchase, the Investor shall pay to the Company an amount equal to the Purchase Amount with respect to such Accelerated Purchase
and Additional Accelerated Purchase, respectively, as full payment for such Purchase Shares via wire transfer of immediately available
funds on the second Business Day following the date that the Investor receives such Purchase Shares. If the Company or the Transfer Agent
shall fail for any reason or for no reason to electronically transfer any Purchase Shares as DWAC Shares with respect to any Regular
Purchase, Accelerated Purchase or Additional Accelerated Purchase (as applicable) within two (2) Business Days following the receipt
by the Company of the Purchase Price, Accelerated Purchase Price or Additional Accelerated Purchase Price, respectively, therefor in
compliance with this Section 2(e), and if on or after such Business Day the Investor purchases (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Investor of such Purchase Shares that the Investor anticipated
receiving from the Company in respect of such Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase (as applicable),
then the Company shall, within two (2) Business Days after the Investor’s request, either (i) pay cash to the Investor in an amount
equal to the Investor’s total purchase price (including customary brokerage commissions, if any) for the shares of Common Stock
so purchased (the “Cover Price”), at which point the Company’s obligation to deliver such Purchase Shares as
DWAC Shares shall terminate, or (ii) promptly honor its obligation to deliver to the Investor such Purchase Shares as DWAC Shares and
pay cash to the Investor in an amount equal to the excess (if any) of the Cover Price over the total Purchase Amount paid by the Investor
pursuant to this Agreement for all of the Purchase Shares to be purchased by the Investor in connection with such purchases. The Company
shall not issue any fraction of a share of Common Stock upon any Regular Purchase, Accelerated Purchase or Additional Accelerated Purchase.
If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share
of Common Stock up or down to the nearest whole share (with 0.5 rounded up). All payments made under this Agreement shall be made in
lawful money of the United States of America or wire transfer of immediately available funds to such account as the Company may from
time to time designate by written notice in accordance with the provisions of this Agreement. Whenever any amount expressed to be due
by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day
that is a Business Day.

 

    	-9-

     

    

 

(f)
Beneficial Ownership Limitation. Notwithstanding
anything to the contrary contained in this Agreement, the Company shall not issue or sell, and the Investor shall not purchase or acquire,
any shares of Common Stock under this Agreement which, when aggregated with all other shares of Common Stock then beneficially owned
by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder),
would result in the beneficial ownership by the Investor and its affiliates of more than 9.99% of the then issued and outstanding shares
of Common Stock (the “Beneficial Ownership Limitation”). Upon the written or oral request of the Investor, the Company
shall promptly (but not later than one Business Day) confirm orally or in writing to the Investor the number of shares of Common Stock
then outstanding. The Investor and the Company shall each cooperate in good faith in the determinations required hereby and the application
hereof. The Investor’s written certification to the Company of the applicability of the Beneficial Ownership Limitation, and the
resulting effect thereof hereunder at any time, shall be conclusive with respect to the applicability thereof and such result absent
manifest error.

 

3.
INVESTOR’S REPRESENTATIONS AND WARRANTIES.

 

The
Investor represents and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

(a)
Organization, Authority. Investor is an entity
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with the requisite power
and authority to enter into and to consummate the transactions contemplated by this Agreement and the other Transaction Documents to
which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
Investment Purpose. The Investor is acquiring
the Securities as principal for its own account for investment only and not with a view to or for distributing or reselling such Securities
or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement
or understandings with any other Persons to distribute or regarding the distribution of such Securities in violation of the Securities
Act or any applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Securities
at any time pursuant to the Registration Statement described herein or otherwise in compliance with applicable federal and state securities
laws). The Investor is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)
Accredited Investor Status. The Investor is an
“accredited investor” as that term is defined in Rule 501(a)(3) of Regulation D promulgated under the Securities Act.

 

(d)
Information. The Investor understands that its
investment in the Securities involves a high degree of risk. The Investor (i) is able to bear the economic risk of an investment in the
Securities including a total loss thereof, (ii) has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of the proposed investment in the Securities and (iii) has had an opportunity to ask questions of
and receive answers from the officers of the Company concerning the financial condition and business of the Company and other matters
related to an investment in the Securities. Neither such inquiries nor any other due diligence investigations conducted by the Investor
or its representatives shall modify, amend or affect the Investor’s right to rely on the Company’s representations and warranties
contained in Section 4 below. The Investor has sought such accounting, legal and tax advice as it has considered necessary to
make an informed investment decision with respect to its acquisition of the Securities and is not relying on any accounting, legal tax
or other advice from the Company or its officers, employees or representatives. The Investor acknowledges and agrees that the Company
neither makes nor has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 4 hereof.

 

(e)
No Governmental Review. The Investor understands
that no U.S. federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement
of the Securities or the fairness or suitability of an investment in the Securities nor have such authorities passed upon or endorsed
the merits of the offering of the Securities.

 

(f)
Transfer or Sale. The Investor understands that
(i) the Securities may not be offered for sale, sold, assigned or transferred unless (A) registered pursuant to the Securities Act (pursuant
to the Registration Statement or otherwise) or (B) an exemption exists permitting such Securities to be sold, assigned or transferred
without such registration; and (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms
of Rule 144.

 

(g)
Validity; Enforcement. This Agreement and the
other Transaction Documents have been duly and validly authorized, executed and delivered on behalf of the Investor and each is a valid
and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to
general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

    	-10-

     

    

 

(h)
Residency. The Investor’s principal place
of business is located in of the State of Illinois.

 

(i)
No Short Selling. The Investor represents and
warrants to the Company that at no time prior to the date of this Agreement has any of the Investor, its agents (in their capacities
as such), representatives or affiliates (in their capacities as such) engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) “short sale” (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii)
hedging transaction that establishes a net short position with respect to the Common Stock.

 

4.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investor that, as of the date hereof and as of the Commencement Date:

 

(a)
Organization and Qualification. The Company and
each of its Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization, with the requisite corporate power and authority to own and use its properties
and assets and to carry on its business as currently conducted. Neither the Company nor any of its Subsidiaries is in violation or default
of any of the provisions of its respective certificate or articles of formation or incorporation, bylaws or other organizational or charter
documents except as would not be expected to result in a Material Adverse Effect. Each of the Company and its Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary, and no proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification, except where the failure
to be so qualified or in good standing or such proceeding, as the case may be, would not reasonably be expected to result in a Material
Adverse Effect. The Company has no subsidiaries, except for the subsidiaries set forth on Exhibit 21.1 to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2021.

 

(b)
Authorization; Enforcement; Validity. (i) The
Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement and each of the
other Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery
of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including
without limitation, the issuance of the Commitment Shares (as defined below in Section 5(e)), the reservation for issuance and
the issuance of the Purchase Shares issuable under this Agreement, have been duly authorized by the Company’s board of directors,
or a validly authorized committee thereof (collectively, the “Board of Directors”), and no further consent or authorization
is required by the Company, its Board of Directors or any committee thereof, or its stockholders (save to the extent provided in this
Agreement), (iii) this Agreement has been, and each other Transaction Document shall be on the Commencement Date, duly executed and delivered
by the Company and (iv) this Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company,
shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except
as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. The Board of
Directors of the Company has approved the resolutions (the “Signing Resolutions”) substantially in the form as set
forth as Exhibit B attached hereto to authorize this Agreement and the transactions contemplated hereby. The Signing Resolutions
are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered to the Investor
a true and correct copy of a unanimous written consent adopting the Signing Resolutions executed by all of the members of the Board of
Directors of the Company. Except as set forth in this Agreement, no other approvals or consents of the Board of Directors, any other
authorized committee thereof, and/or stockholders is necessary under applicable laws and the Company’s Charter and/or Bylaws to
authorize the execution and delivery of this Agreement or any of the transactions contemplated hereby, including, but not limited to,
the issuance of the Commitment Shares and the issuance of the Purchase Shares.

 

    	-11-

     

    

 

(c)
Capitalization. As of the date hereof, the authorized
capital stock of the Company consists of 200,000,000 shares of $0.01 par value Common Stock and 5,000,000 shares of $0.01 par value preferred
stock. Except as disclosed in the SEC Documents (as defined below), (i) no shares of the Company’s capital stock are subject to
preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company, (ii) there are no outstanding
debt securities, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the
Company or any of its Subsidiaries, (iv) there are no agreements or arrangements under which the Company or any of its Subsidiaries is
obligated to register the sale of any of their securities under the Securities Act (except the Registration Rights Agreement and those
registration rights for which a registration statement has been filed), (v) there are no outstanding securities or instruments of the
Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of
its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by
the issuance of the Securities as described in this Agreement and (vii) the Company does not have any stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement. The Company has furnished to the Investor true and correct copies
of the Charter and the Bylaws, each as in effect on the date hereof, and copies of any documents containing the material rights of holders
of securities convertible or exercisable for Common Stock, to the extent not filed as an exhibit to the Company’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2021 or other Exchange Act reports.

 

(d)
Issuance of Securities. Upon issuance and payment
therefor in accordance with the terms and conditions of this Agreement, the Purchase Shares shall be validly issued, fully paid and nonassessable
and free from all taxes, liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof,
with the holders being entitled to all rights accorded to a holder of Common Stock. 3,781,330 shares of Common Stock have been duly authorized
and reserved for issuance upon purchase under this Agreement as Purchase Shares. 142,450 shares of Common Stock have been duly authorized
and reserved for issuance as Initial Commitment Shares, and 76,220 shares of Common Stock have been duly authorized and reserved for
issuance as Additional Commitment Shares in accordance with this Agreement (subject, in each case, to equitable adjustment for any reorganization,
recapitalization, non-cash dividend, stock split or other similar transaction). Upon issuance in accordance with the terms and conditions
of this Agreement, each of the Purchase Shares and the Commitment Shares shall be validly issued, fully paid and nonassessable and free
from all taxes, Liens, charges, restrictions, rights of first refusal and preemptive rights with respect to the issue thereof, with the
holders being entitled to all rights accorded to a holder of Common Stock. Upon receipt of the Purchase Shares and the Commitment Shares,
the Investor will have good and marketable title to such Securities and such Securities will be immediately freely tradeable on the Principal
Market by any holder who is not an “affiliate” of the Company under the Securities Act.

 

    	-12-

     

    

 

(e)
No Conflicts. The execution, delivery and performance
of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including,
without limitation, the reservation for issuance and issuance of the Purchase Shares and the Commitment Shares) will not (i) result in
a violation of the Charter, any certificate of designations, preferences and rights of any outstanding series of preferred stock of the
Company or the Bylaws or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company or any of its Subsidiaries is a party, or result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market
applicable to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is
bound or affected, except in the case of conflicts, defaults, terminations, amendments, accelerations, cancellations and violations under
clause (ii), which would not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries
is in violation of any term of or in default under its Charter, any certificate of designation, preferences and rights of any outstanding
series of preferred stock of the Company or Bylaws or their organizational charter or bylaws, respectively. Neither the Company nor any
of its Subsidiaries is in violation of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture,
instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible
conflicts, defaults, terminations or amendments that would not reasonably be expected to have a Material Adverse Effect. The business
of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, ordinance or regulation
of any governmental entity, except for possible violations, the sanctions for which either individually or in the aggregate would not
reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under
the Securities Act or applicable state securities laws and the rules and regulations of the Principal Market, the Company is not required
to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or any regulatory
or self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction
Documents in accordance with the terms hereof or thereof. Except as set forth elsewhere in this Agreement, (i) all consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence on or prior to the date
hereof or on or prior to the Commencement Date shall have been obtained or effected on or prior to the date hereof and on or prior to
the Commencement Date, respectively, and (ii) all consents, authorizations, orders, filings and registrations which the Company is required
to obtain pursuant to the preceding sentence with respect to the Commencement shall be obtained or effected on or prior to the Commencement
Date.

 

(f)
SEC Documents; Financial Statements. The Company
has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act
and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve months preceding the date hereof (or such
shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, together with the Registration Statement, being collectively referred to herein
as the “SEC Documents”) on a timely basis or has received a valid extension of such time of filing and has filed any
such SEC Documents prior to the expiration of any such extension. As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable. None of the SEC Documents, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the
Company included in the SEC Documents comply in all material respects with applicable accounting requirements and the rules and regulations
of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and
its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods presented,
subject, in the case of unaudited financial statements, to normal, immaterial, year-end audit adjustments. Except as publicly available
through the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (EDGAR), the Company has received no notices or correspondence
from the SEC for the one year preceding the date hereof other than SEC comment letters relating to the Company’s filings under
the Exchange Act and the Securities Act. There are no SEC comments that have not been resolved to the satisfaction of the SEC staff.
To the Company’s knowledge, the SEC has not commenced any enforcement proceedings against the Company or any of its Subsidiaries.

 

    	-13-

     

    

 

(g)
Absence of Certain Changes. Except as disclosed
in the SEC Documents filed prior to the date hereof, since September 30, 2022, there has been no material adverse change in the business,
properties, operations, financial condition or results of operations of the Company or its Subsidiaries. The Company has not taken any
steps, and does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any
of its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency
proceedings. The Company is financially solvent and is generally able to pay its debts as they become due.

 

(h)
Absence of Litigation. Except as disclosed in
the SEC Documents filed prior to the date hereof, there is no action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against the Company, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors in their
capacities as such, which could reasonably be expected to have a Material Adverse Effect.

 

(i)
Acknowledgment Regarding Investor’s Status.
The Company acknowledges and agrees that the Investor is acting solely in the capacity of arm’s length purchaser with respect to
the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is
not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its representatives or agents in
connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s
purchase of the Securities. The Company further represents to the Investor that the Company’s decision to enter into the Transaction
Documents has been based solely on the independent evaluation by the Company and its representatives and advisors.

 

(j)
No Aggregated Offering. Neither the Company,
nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any
security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated
or aggregated with prior offerings by the Company in a manner that would require stockholder approval pursuant to the rules of the Principal
Market on which any of the securities of the Company are listed or designated. The issuance and sale of the Commitment Shares hereunder
does not, and subject to the terms of this Agreement, the issuance and sale of the additional Purchase Shares will not, contravene the
rules and regulations of the Principal Market.

 

    	-14-

     

    

 

(k)
Intellectual Property Rights. The Company and
its Subsidiaries own or possess adequate rights or licenses to use all material trademarks, trade names, service marks, service mark
registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade
secrets and rights necessary to conduct their respective businesses as now conducted, except as such failure to own, possess or acquire
such rights would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. None of the Company’s
material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, government authorizations, trade secrets or other intellectual property rights have expired or terminated, or, by
the terms and conditions thereof, could expire or terminate within two years from the date of this Agreement, except as would not reasonably
be expected to have a Material Adverse Effect. Except as set forth in the SEC Documents filed prior to the date hereof, the Company and
its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any material trademark, trade name
rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret
or other similar rights of others, or of any such development of similar or identical trade secrets or technical information by others,
and there is no claim, action or proceeding that has been brought against, or to the Company’s knowledge, being threatened against,
the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names,
service marks, service mark registrations, trade secret or other infringement, which could reasonably be expected to have a Material
Adverse Effect.

 

(l)
Environmental Laws. To the Company’s knowledge,
the Company and its Subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit,
license or approval, except where, in each of the three foregoing clauses, the failure to so comply could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

(m)
Title. Except as set forth in the SEC Documents
filed prior to the date hereof, the Company and its Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and its
Subsidiaries, taken as a whole, in each case free and clear of all liens, encumbrances and defects (“Liens”) and,
except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed
to be made of such property by the Company and its Subsidiaries and Liens for the payment of federal, state or other taxes, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with which the Company and its Subsidiaries are in compliance with such
exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company
and its Subsidiaries, taken as a whole, except for such interference which would not reasonably be expected to have a Material Adverse
Effect.

 

(n)
Insurance. The Company and each of its Subsidiaries
are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the
Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged (including in respect
of directors and officers liability insurance). Neither the Company nor any such Subsidiary has been refused any insurance coverage sought
or applied for and neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings, business
or operations of the Company and its Subsidiaries, taken as a whole.

 

    	-15-

     

    

 

(o)
Regulatory Permits. Except as disclosed in the
SEC Documents filed prior to the date hereof, the Company and its Subsidiaries possess all material certificates, authorizations and
permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as
currently conducted, except where the failure to possess such certificates, authorizations or permits would not reasonably be expected
to have a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating
to the revocation or modification of any such material certificate, authorization or permit.

 

(p)
Compliance with Laws. The Company is not in violation
of any Applicable Law, except as would not reasonably be expected to have a Material Adverse Effect.

 

(q)
Tax Status. The Company and each of its Subsidiaries
has made or filed all federal, state, local or foreign income and all other material tax returns, reports and declarations required by
any jurisdiction to which it is subject or otherwise filed timely extensions (unless and only to the extent that the Company and each
of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and
has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate
for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply, and except as
would not reasonably be expected to have a Material Adverse Effect. To the Company’s knowledge, there are no unpaid taxes in any
material amount claimed to be due by the taxing authority of any jurisdiction.

 

(r)
Transactions With Affiliates. Except as disclosed
in the SEC Documents filed prior to the date hereof, none of the Company’s stockholders covered
by Item 403(a) of Regulation S-K, officers or directors or any family member or affiliate of any of the foregoing, has either directly
or indirectly an interest in, or is a party to, any transaction that would be required to be disclosed as a related party transaction
pursuant to Item 404 of Regulation S-K promulgated under the Securities Act.

 

(s)
Application of Takeover Protections. The Company
and its board of directors have taken or will take prior to the Commencement Date all necessary action, if any, in order to render inapplicable
any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Charter or the laws of the state of its incorporation which is or could become applicable to the Investor
as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities
and the Investor’s ownership of the Securities.

 

(t)
Disclosure. Except with respect to the material
terms and conditions of the transactions contemplated by the Transaction Documents or any other agreements to be entered into by the
Company and the Investor that, in each case, which shall be timely publicly disclosed by the Company, the Company confirms that neither
it nor any other Person acting on its behalf has provided the Investor or its agents or counsel with any information that the Company
believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Registration Statement
or the SEC Documents. The Company understands and confirms that the Investor will rely on the foregoing representation in effecting purchases
and sales of securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Investor regarding the
Company, its business and the transactions contemplated hereby, including the disclosure schedules to this Agreement, taken as a whole,
is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve (12) months preceding the date of this Agreement taken as a whole do
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges
and agrees that the Investor neither makes nor has made any representations or warranties with respect to the transactions contemplated
hereby other than those specifically set forth in Section 3 hereof.

 

    	-16-

     

    

 

(u)
Foreign Corrupt Practices. Neither the Company
nor any of its Subsidiaries nor any director or officer, nor, to the knowledge of the Company, any agent, employee or affiliate of the
Company or any Subsidiary is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons
of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including,
without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the
giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party
or official thereof or any candidate for foreign political office, in contravention of the FCPA; and the Company, each of its Subsidiaries
and, to the knowledge of the Company, its affiliates have conducted their businesses in compliance with the FCPA and have instituted
and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
therewith. The operations of the Company and each of its Subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements and the money laundering statutes and the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency, including,
without limitation, Title 18 U.S. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy Act, and international anti-money laundering
principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering,
of which the United States is a member and with which designation the United States representative to the group or organization continues
to concur, all as amended, and any Executive order, directive or regulation pursuant to the authority of any of the foregoing, or any
orders or licenses issued thereunder (collectively, the “Money Laundering Laws”), and no action, suit or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with
respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened. Neither the Company nor any of its Subsidiaries,
nor to the knowledge of the Company any of the directors, officers or employees, agents, affiliates or representatives of the Company
or each of its Subsidiaries, is an individual or entity that is, or is owned or controlled by an individual or entity that is: (i) the
subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”),
nor (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, the
Balkans, Belarus, Burma/Myanmar, Cote D’Ivoire, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, Libya, North Korea, Russia,
Sudan, Syria, Venezuela and Zimbabwe). Neither the Company nor any of its Subsidiaries will, directly or indirectly, use the proceeds
of the transactions contemplated hereby, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other individual or entity: (i) to fund or facilitate any activities or business of or with any individual or entity or in
any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions or (ii) in any other manner that
will result in a violation of Sanctions by any individual or entity (including any individual or entity participating in the transactions
contemplated hereby, whether as underwriter, advisor, investor or otherwise). For the past five years, neither the Company nor any of
its Subsidiaries has knowingly engaged in, and is not now knowingly engaged in, any dealings or transactions with any individual or entity,
or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

 

    	-17-

     

    

 

(v)
DTC Eligibility. The Company, through the Transfer
Agent, currently participates in the DTC Fast Automated Securities Transfer (FAST) Program and the Common Stock can be transferred electronically
to third parties via the DTC Fast Automated Securities Transfer (FAST) Program. The Common Stock is not subject to any DTC “chill,”
freeze or similar restriction with respect to any DTC services, including the clearing of shares of Common Stock through DTC.

 

(w)
Sarbanes-Oxley. The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002, as amended, which are applicable to it as of the date hereof.

 

(x)
Certain Fees. No brokerage or finder’s
fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Investor shall have no obligation
with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this
Section 4(x) that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(y)
Investment Company. The Company is not required
to be registered as, and immediately after receipt of any payment for the Purchase Shares will not be required to be registered as, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

(z)
Listing and Maintenance Requirements. The Common
Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge
is likely to have the effect of, terminating the registration of the Common Stock pursuant to the Exchange Act nor has the Company received
any notification that the SEC is currently contemplating terminating such registration. The Company has filed with The Nasdaq Stock Market
a Notification Form: Listing of Additional Shares for the listing of the Securities. The Company has taken no action designed to, or
likely to have the effect of, delisting the Common Stock from the Principal Market, nor has the Company received any notice from any
Person to the effect that the Company is not in compliance with the listing or maintenance requirements of the Principal Market. The
Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing
and maintenance requirements.

 

(aa)
Accountants. The Company’s accountants
are set forth in the SEC Documents and, to the knowledge of the Company, such accountants are an independent registered public accounting
firm as required by the Securities Act.

 

(bb)
No Market Manipulation. The Company has not,
and to its knowledge no Person acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result
in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities,
(ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed
to pay to any Person any compensation for soliciting another to purchase any other securities of the Company in connection with the transactions
contemplated in this Agreement.

 

(cc)
Shell Company Status. The Company has never been
an issuer identified in Rule 144(i)(1) under the Securities Act.

 

(dd)
No Disqualification Events. None of the Company,
any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering
contemplated hereby, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated on the
basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in
any capacity at the time of sale (each, an “Issuer Covered Person”) is subject to any of the “Bad Actor”
disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event.

 

    	-18-

     

    

 

(ee)
Absence of Schedules. In the event that on the
date hereof, or the Commencement Date, the Company does not deliver any disclosure schedule contemplated by this Agreement, the Company
hereby acknowledges and agrees that each such undelivered disclosure schedule shall be deemed to read as follows: “Nothing to Disclose.”

 

5.
COVENANTS.

 

(a)
Filing of Current Report and Registration Statement.
The Company agrees that it shall, within the time required under the Exchange Act, file with the SEC a report on Form 8-K relating to
the transactions contemplated by, and describing the material terms and conditions of, the Transaction Documents (the “Current
Report”). The Company shall also file with the SEC, as soon as practicable, and in any event within twenty (20) Business Days
of the date of this Agreement, a Registration Statement on Form S-1 covering the resale of the Purchase Shares and all of the Commitment
Shares in accordance with the terms of the Registration Rights Agreement. The Company shall permit the Investor to review and comment
upon the final pre-filing draft version of each of the Current Report and the Registration Statement at least two (2) Business Days prior
to their respective filing with the SEC and, with respect to information regarding the Investor or the transaction contemplated hereby,
the Company shall not file the Current Report or the Registration Statement with the SEC in a form to which the Investor reasonably objects.
The Investor shall use its reasonable best efforts to comment upon the final pre-filing draft version of the Current Report and the Registration
Statement within one (1) Business Day from the date the Investor receives it from the Company.

 

(b)
Blue Sky. The Company shall take all such action,
if any, as is reasonably necessary in order to obtain an exemption for or to register or qualify (i) the issuance and the sale of the
Securities to the Investor under this Agreement and (ii) any subsequent resale of all Commitment Shares and all Purchase Shares by the
Investor, in each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states
as is reasonably requested by the Investor from time to time, and shall provide evidence of any such action so taken to the Investor.

 

(c)
Listing/DTC. The Company shall use commercially
reasonable efforts to maintain, so long as any shares of Common Stock shall be so listed, such listing of all Purchase Shares and Commitment
Shares from time to time issuable hereunder. The Company shall use commercially reasonable efforts to maintain the listing of the Common
Stock on the Principal Market and shall use commercially reasonable efforts to comply in all respects with the Company’s reporting,
filing and other obligations under the Exchange Act, or rules and regulations of the Principal Market. The Company shall not take any
action that would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market. The Company
shall promptly, and in no event later than the following Business Day, provide to the Investor copies of any notices it receives from
any Person regarding the continued eligibility of the Common Stock for listing on the Principal Market; provided, however, that the Company
shall not be required to provide the Investor copies of any such notice that the Company reasonably believes constitutes material non-public
information that the Company would not be required to contemporaneously publicly disclose in any report or statement filed with the SEC
under the Exchange Act or the Securities Act. The Company shall pay all fees and expenses in connection with satisfying its obligations
under this Section 5(c). The Company shall take all commercially reasonable action necessary to ensure that its Common Stock can
be transferred electronically as DWAC Shares.

 

(d)
Prohibition of Short Sales and Hedging Transactions.
The Investor agrees that beginning on the date of this Agreement and ending on the date of termination of this Agreement as provided
in Section 11, the Investor and its agents (in their capacities as such), representatives (in their capacities as such) and affiliates
shall not in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position
with respect to the Common Stock.

 

(e)
Issuance of Commitment Shares. In consideration
for the Investor’s execution and delivery of this Agreement, the Company shall cause the Transfer Agent to (i) issue on the date
of this Agreement 142,450 shares of Common Stock (the “Initial Commitment Shares”) directly to the Investor in accordance
with Section 6 hereto and the Irrevocable Transfer Agent Instructions and (ii) issue a number of shares of Common Stock equal
to the Additional Commitment Shares Number, on the date the Company has sold over $10,000,000 Purchase Shares to the Investor, (to be
appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar
transaction) (the “Additional Commitment Shares” and, together with the Initial Commitment Shares, the “Commitment
Shares”) directly to the Investor in accordance with Section 6 hereto. For the avoidance of doubt, all of the Initial
Commitment Shares shall be fully earned as of the date of this Agreement, whether or not the Commencement shall occur or any Purchase
Shares are purchased by the Investor under this Agreement and irrespective of any termination of this Agreement.

 

    	-19-

     

    

 

(f)
Due Diligence; Non-Public Information. During
the term of this Agreement, the Investor shall have the right, from time to time as the Investor may reasonably deem appropriate, and
upon reasonable advance notice to the Company, to perform reasonable due diligence on the Company during normal business hours. The Company
and its officers and employees shall provide material information and reasonably cooperate with the Investor in connection with any reasonable
request by the Investor related to the Investor’s due diligence of the Company. Each party hereto agrees not to disclose any Confidential
Information of the other party to any third party and shall not use the Confidential Information for any purpose other than in connection
with, or in furtherance of, the transactions contemplated hereby. Each party hereto acknowledges that the Confidential Information shall
remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential
Information disclosed by the other party. The receiving party may disclose Confidential Information to the extent such information is
required to be disclosed by law, regulation or order of a court of competent jurisdiction or regulatory authority, provided that the
receiving party shall promptly notify the disclosing party when such requirement to disclose arises, and shall cooperate with the disclosing
party so as to enable the disclosing party to: (i) seek an appropriate protective order; and (ii) make any applicable claim of confidentiality
in respect of such Confidential Information; and provided, further, that the receiving party shall disclose Confidential Information
only to the extent required by the protective order or other similar order, if such an order is obtained, and, if no such order is obtained,
the receiving party shall disclose only the minimum amount of such Confidential Information required to be disclosed in order to comply
with the applicable law, regulation or order. In addition, any such Confidential Information disclosed pursuant to this section shall
continue to be deemed Confidential Information. Notwithstanding anything in this Agreement to the contrary, (x) the Company shall not
be obligated to provide the Investor with any information that constitutes or may reasonably be considered to constitute material, non-public
information pursuant to a request for information hereunder, and (y) the Company and the Investor agree that (A) neither the Company
nor any other Person acting on its behalf shall provide the Investor or its agents or counsel with any information that constitutes or
may reasonably be considered to constitute material, non-public information, unless a simultaneous public announcement thereof is made
by the Company in the manner contemplated by Regulation FD, and (B) in the event the Company believes that a notice or communication
to the Investor or any of its affiliates, attorneys, agents or representatives pursuant to this Agreement or any other Transaction Document
contains any material, nonpublic information, the Company shall so indicate to the Investor prior to delivery of such notice or communication,
and such indication shall provide the Investor the means to refuse to receive such notice or communication; and in the absence of any
such indication, the Investor and its affiliates, agents and representatives shall be allowed to presume that all matters relating to
such notice or communication do not constitute material, non-public information. In the event of any breach of the foregoing covenants
by the Company or any Person acting on its behalf (as determined in the reasonable good faith judgment of the Investor), in addition
to any other remedy provided herein or in the other Transaction Documents, if the Investor is holding any Securities at the time of the
disclosure of such material non-public information, the Investor shall have the right to make a public disclosure, in the form of a press
release, public advertisement or otherwise, of such material, non-public information without the prior approval by the Company; provided
the Investor shall have first provided notice to the Company that it believes it has received information that constitutes material,
non-public information; and the Company shall have at least two Business Days from such notice to either publicly disclose such material,
non-public information or to demonstrate to the Investor that such information does not constitute material, non-public information,
and (assuming the Investor and Investor’s counsel disagree in their reasonable good faith judgment with the Company’s determination)
prior to any such disclosure by the Investor; and the Company shall have failed to publicly disclose such material, non-public information.
The Investor shall not have any liability to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees,
stockholders or agents, for any such disclosure in accordance with this Section 5(f). The Company understands and confirms that
the Investor shall be relying on the foregoing covenants in effecting transactions in securities of the Company. The Company hereby acknowledges
and agrees that, notwithstanding the provisions of this Section 5(f), if there is a breach or violation of any representation,
covenant, provision or agreement of the Company set forth in this Section 5(f) or Section 5(a) resulting in the Investor
obtaining or otherwise possessing material nonpublic information, neither the Investor nor any of the Investor’s affiliates, attorneys,
agents or representatives shall have any duty of trust or confidence (including any obligation under any confidentiality or non-disclosure
agreement entered into by the Investor with the Company) with respect to, or obligation not to trade in any securities while aware of,
such material nonpublic information.

 

    	-20-

     

    

 

(g)
Purchase Records. The Investor and the Company
shall each maintain records showing the remaining Available Amount at any given time and the dates and Purchase Amounts for each Regular
Purchase, Accelerated Purchase and Additional Accelerated Purchase or shall use such other method, reasonably satisfactory to the Investor
and the Company.

 

(h)
Taxes. The Company shall pay any and all transfer,
stamp or similar taxes that may be payable with respect to the issuance and delivery of any shares of Common Stock to the Investor made
under this Agreement.

 

(i)
Use of Proceeds. The Company will use the net
proceeds from the offering for any corporate purpose at the sole discretion of the Company.

 

(j)
Other Transactions. The Company shall not enter
into, announce or recommend to its stockholders any agreement, plan, arrangement or transaction in or of which the terms thereof would
restrict, materially delay, conflict with or impair the ability or right of the Company to perform its obligations under the Transaction
Documents, including, without limitation, the obligation of the Company to deliver the Commitment Shares to the Investor in accordance
with the terms of the Transaction Documents.

 

(k)
Aggregation. From and after the date of this
Agreement, neither the Company, nor or any of its affiliates will, and the Company shall use its reasonable best efforts to ensure that
no Person acting on their behalf will, directly or indirectly, make any offers or sales of any security or solicit any offers to buy
any security, under circumstances that would cause this offering of the Securities by the Company to the Investor to be aggregated with
other offerings by the Company in a manner that would require stockholder approval pursuant to the rules of the Principal Market on which
any of the securities of the Company are listed or designated, unless stockholder approval is obtained before the closing of such subsequent
transaction in accordance with the rules of such Principal Market.

 

(l)
Limitation on Variable Rate Transactions. From
and after the date of this Agreement until the Maturity Date, the Company shall be prohibited from effecting or entering into an agreement
to effect any issuance by the Company or any of its Subsidiaries of Common Stock involving a Variable Rate Transaction other than with
the Investor. “Variable Rate Transaction” includes, without limitation, an “equity line of credit” or
any similar transaction whereby an investor is irrevocably bound to purchase securities over a period of time from the Company at a price
based on the market price of the Company’s Common Stock at the time of each such purchase; provided, however, that this Section
5(l) shall not be deemed to prohibit the issuance and sale of Common Stock pursuant to an “at-the-market offering” by the
Company exclusively through a registered broker-dealer acting as agent of the Company pursuant to a written agreement between the Company
and such registered broker-dealer.

 

    	-21-

     

    

 

6.
TRANSFER AGENT INSTRUCTIONS.

 

(a)
Initial Commitment Shares. On the date of this Agreement, the Company shall issue to the Transfer Agent (and any subsequent transfer
agent) irrevocable instructions, in the form agreed to prior to the date hereof (the “Irrevocable Transfer Agent Instructions”),
to issue the Initial Commitment Shares in accordance with the terms of this Agreement. The book-entry statement(s) representing the Initial
Commitment Shares shall bear the following restrictive legend (the “Restrictive Legend”) and no other legend whatsoever:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

The
Company warrants to the Investor that, while the Agreement is effective, no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 6 will be given by the Company to the Transfer Agent with respect to the Initial Commitment Shares,
and the Initial Commitment Shares shall otherwise be freely transferable on the books and records of the Company.

 

The
Company agrees that, following the effective date of the initial Registration Statement, it will, no later than two (2) Business Days
following the delivery by the Investor to the Company or the Transfer Agent of a certificate representing any Initial Commitment Shares
issued with the Restrictive Legend (or, in the case of Initial Commitment Shares represented by book entries, delivery by the Investor
to the Company or the Company’s transfer agent of a legend removal request) cause the Initial Commitment Shares to be delivered
to the Investor’s or its designee’s specified Deposit/Withdrawal at Custodian (DWAC) account with DTC under its Fast Automated
Securities Transfer (FAST) Program as DWAC Shares.

 

(b)
Additional Commitment Shares. On the first date the Company has sold over $10,000,000 Purchase Shares to the Investor, the Company
shall issue to the Transfer Agent (and any subsequent transfer agent) irrevocable instructions, in substantially the form agreed to prior
to the date hereof, to issue the Additional Commitment Shares in accordance with the terms of this Agreement (the “Irrevocable
Additional Transfer Agent Instructions”). All Additional Commitment Shares to be issued to or for the benefit of the Investor
pursuant to this Agreement shall be issued as DWAC Shares. The Company warrants to the Investor that, while the Agreement is effective,
no instruction other than the Irrevocable Additional Transfer Agent Instructions referred to in this Section 6 will be given by the Company
to the Transfer Agent with respect to the Additional Commitment Shares, and the Additional Commitment Shares shall otherwise be freely
transferable on the books and records of the Company.

 

    	-22-

     

    

 

(c)
Purchase Shares. Within two (2) Business Days from the date on which the Registration Statement is declared effective by the SEC,
the Company shall issue to the Transfer Agent, and any subsequent transfer agent, (i) irrevocable instructions in the form agreed to
prior to the date hereof (the “Commencement Irrevocable Transfer Agent Instructions”) and (ii) the notice of effectiveness
of the Registration Statement in a form acceptable to the Transfer Agent (the “Notice of Effectiveness of Registration Statement”),
in each case to issue the Purchase Shares in accordance with the terms of this Agreement and the Registration Rights Agreement. All Purchase
Shares to be issued from and after Commencement to or for the benefit of the Investor pursuant to this Agreement shall be issued only
as DWAC Shares. The Company represents and warrants to the Investor that, while this Agreement is effective, no instruction other than
as contemplated by the Commencement Irrevocable Transfer Agent Instructions and the Notice of Effectiveness of Registration Statement
will be given by the Company to the Transfer Agent with respect to the Purchase Shares from and after Commencement, and no instruction
or other communication to the Transfer Agent with respect to the issuance of the Purchase Shares shall be made without the approval of
the Investor. The Company shall provide confirmation of receipt by the Transfer Agent of all instructions pursuant to the Commencement
Irrevocable Transfer Agent Instructions with respect to Purchase Shares within one (1) Business Day of delivery of any Purchase Notice.
The Purchase Shares covered by the Registration Statement shall otherwise be freely transferable on the books and records of the Company.

 

7.
CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE
SALES OF SHARES OF COMMON STOCK.

 

The
right of the Company hereunder to commence sales of Purchase Shares is subject to the satisfaction, or where legally permissible, the
waiver of each of the following conditions:

 

(a)
The Investor shall have executed each of the Transaction
Documents and delivered the same to the Company;

 

(b)
The representations and warranties of the Investor shall
be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified
as to materiality in Section 3 above, in which case, such representations and warranties shall be true and correct without further qualification)
as of the date hereof and as of the Commencement Date as though made at that time; and

 

(c)
The Registration Statement covering the resale of all
of the Commitment Shares and the Purchase Shares shall have been declared effective under the Securities Act by the SEC and no stop order
with respect to the Registration Statement shall be pending or threatened by the SEC.

 

    	-23-

     

    

 

8.
CONDITIONS TO THE INVESTOR’S OBLIGATION TO PURCHASE
SHARES OF COMMON STOCK.

 

The
obligation of the Investor to buy Purchase Shares under this Agreement is subject to the satisfaction or, where legally permissible,
the waiver of each of the following conditions on or prior to the Commencement Date and, once such conditions have been initially satisfied,
there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred (except in the case of an extension
of the Maturity Date to the date that is the first day of the month immediately following the forty-eight (48) month anniversary of the
Commencement Date, in which case the Company shall be obligated to satisfy the conditions on the date of its delivery of the notice of
such extension):

 

(a)
The Company shall have executed each of the Transaction
Documents and delivered the same to the Investor;

 

(b)
The Company shall have issued or caused to be issued
to the Investor a number of shares of Common Stock equal to the number of Initial Commitment Shares, and, in the case of an extension
by the Company of the Maturity Date, the Company shall have issued or caused to be issued to the Investor a number of shares of Common
Stock equal to the Additional Commitment Shares Number as DWAC Shares, in each case subject to and in accordance with Section 6;

 

(c)
The Common Stock shall be listed on the Principal Market,
trading in the Common Stock shall not have been suspended by the SEC or the Principal Market within the last 365 days, and the Company
shall have filed with The Nasdaq Stock Market a Notification Form: Listing of Additional Shares for the listing of the Securities, and
Nasdaq shall have raised no objection to the consummation of the transactions contemplated by this Agreement;

 

(d)
The Investor shall have received the opinion and negative
assurances letter of the Company’s legal counsel dated as of the Commencement Date (and, in the case of an Extension of the Maturity
Date, the date of the Company’s written notice to the Investor of such extension) substantially in the forms agreed prior to the
date of this Agreement by the Company’s legal counsel and the Investor’s legal counsel;

 

(e)
The representations and warranties of the Company shall
be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified
as to materiality in Section 4 above, in which case, such representations and warranties shall be true and correct without further
qualification) as of the date hereof, as of the Commencement Date and, in the case of an Extension of the Maturity Date, the date of
the Company’s written notice to the Investor of such extension as though made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct in all material respects as of such date) and the Company shall have
performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by the Company at or prior to the Commencement Date (and, in the case of an Extension
of the Maturity Date, the date of the Company’s written notice to the Investor of such extension). The Investor shall have received
a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement Date (and, in the case of an Extension
of the Maturity Date, the date of the Company’s written notice to the Investor of such extension), to the foregoing effect in the
form attached hereto as Exhibit A;

 

(f)
The Board of Directors of the Company shall have adopted
Signing Resolutions, which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date
(and, in the case of an Extension of the Maturity Date, the date of the Company’s written notice to the Investor of such extension);

 

(g)
As of the Commencement Date (and, in the case of an
Extension of the Maturity Date, the date of the Company’s written notice to the Investor of such extension), the Company shall
have reserved out of its authorized and unissued Common Stock, (i) solely for the purpose of effecting purchases of Purchase Shares hereunder,
3,781,330 shares of Common Stock and (ii) solely for the purpose of effecting the issuance of Additional Commitment Shares hereunder,
76,220 shares of Common Stock;

 

    	-24-

     

    

 

(h)
The Commencement Irrevocable Transfer Agent Instructions
and the Notice of Effectiveness of Registration Statement, each shall have been delivered to and acknowledged in writing by the Company
and the Transfer Agent (or any successor transfer agent);

 

(i)
The Company shall have delivered to the Investor a certificate
of good standing of the Company in the State of Delaware issued by the Secretary of State of the State of Delaware and a certificate
or its equivalent evidencing the good standing of the Company as a foreign corporation in any other jurisdiction where the Company is
duly qualified to conduct business, in each case, as of a date within ten (10) Business Days of the Commencement Date (and, in the case
of an Extension of the Maturity Date, the date of the Company’s written notice to the Investor of such extension);

 

(j)
The Company shall have delivered to the Investor a certified
copy of the Charter as certified by the Secretary of State of the State of Delaware within ten (10) Business Days of the Commencement
Date (and, in the case of an Extension of the Maturity Date, the date of the Company’s written notice to the Investor of such extension);

 

(k)
The Company shall have delivered to the Investor a secretary’s
certificate executed by the Secretary of the Company, dated as of the Commencement Date (and, in the case of an Extension of the Maturity
Date, the date of the Company’s written notice to the Investor of such extension), in the form attached hereto as Exhibit
C;

 

(l)
The Registration Statement
covering the resale of the Commitment Shares and Purchase Shares shall have been declared effective under the Securities Act by the SEC
and no stop order with respect to the Registration Statement shall be pending or threatened by the SEC. The Company shall have prepared
and filed with the SEC, not later than one (1) Business Day after the effective date of the Registration Statement, a final and complete
prospectus (the preliminary form of which shall be included in the Registration
Statement) and shall have delivered to the Investor a true and complete copy thereof. Such prospectus shall be current and available
for the resale by the Investor of all of the Securities covered thereby. The Current Report shall have been filed with the SEC, as required
pursuant to Section 5(a). All reports, schedules, registrations, forms, statements, information and other documents required to have
been filed by the Company with the SEC at or prior to the Commencement Date (and, in the case of an Extension of the Maturity Date, the
date of the Company’s written notice to the Investor of such extension) pursuant to the reporting requirements of the Exchange
Act shall have been filed with the SEC within the applicable time periods prescribed for such filings under the Exchange Act;

 

(m)
No Event of Default (as defined below) shall have occurred,
and no event which, after notice and/or lapse of time, would reasonably be expected to become an Event of Default shall have occurred;

 

(n)
The Exchange Cap shall not have been reached (to the
extent the Exchange Cap is applicable pursuant to Section 2(d) hereof);

 

(o)
All federal, state and local governmental laws, rules
and regulations applicable to the transactions contemplated by the Transaction Documents and necessary for the execution, delivery and
performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with the terms thereof
shall have been complied with, and all consents, authorizations and orders of, and all filings and registrations with, all federal, state
and local courts or governmental agencies and all federal, state and local regulatory or self-regulatory agencies necessary for the execution,
delivery and performance of the Transaction Documents and the consummation of the transactions contemplated thereby in accordance with
the terms thereof shall have been obtained or made, including, without limitation, in each case those required under the Securities Act,
the Exchange Act, applicable state securities or “Blue Sky” laws or applicable rules and regulations of the Principal Market,
or otherwise required by the SEC, the Principal Market or any state securities regulators;

 

    	-25-

     

    

 

(p)
No statute, regulation, order, decree, writ, ruling
or injunction shall have been enacted, entered, promulgated, threatened or endorsed by any federal, state or local or foreign court or
governmental authority of competent jurisdiction which prohibits the consummation of or which would materially modify or delay any of
the transactions contemplated by the Transaction Documents;

 

(q)
No action, suit or proceeding before any federal, state,
local or foreign arbitrator or any court or governmental authority of competent jurisdiction shall have been commenced or threatened,
and no inquiry or investigation by any federal, state, local or foreign governmental authority of competent jurisdiction shall have been
commenced or threatened, against the Company, or any of the officers, directors or affiliates of the Company, seeking to restrain, prevent
or change the transactions contemplated by the Transaction Documents, or seeking material damages in connection with such transactions;
and

 

(r)
The Company shall have provided the Investor with the
information requested by the Investor in connection with its due diligence requests in accordance with the terms of Section 5(f) hereof.

 

9.
INDEMNIFICATION.

 

In
consideration of the Investor’s execution and delivery of the Transaction Documents and acquiring the Purchase Shares hereunder
and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless the Investor and all of its affiliates, equityholders, members, managers, officers, directors and employees and any
of the foregoing Person’s agents or other representatives (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions,
causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
and documented attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee
as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company
in the Transaction Documents or any other certificate, instrument or document executed by the Company contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate,
instrument or document executed by the Company contemplated hereby or thereby, (c) any cause of action, suit or claim brought or made
against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents
or any other certificate, instrument or document contemplated hereby or thereby, other than, in the case of clause (c) with respect to
Indemnified Liabilities which directly and primarily result from the fraud, gross negligence or willful misconduct of an Indemnitee.
The indemnity in this Section 9 shall not apply to amounts paid in settlement of any claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent that
the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Payment under this indemnification
shall be made within thirty (30) days from the date the Investor makes written request for it. A certificate containing reasonable detail
as to the amount of such indemnification submitted to the Company by the Investor shall be conclusive evidence, absent manifest error,
of the amount due from the Company to the Investor, provided that the Indemnitee shall undertake to repay any amounts paid to it hereunder
if it is ultimately determined, by a final and non-appealable order of a court of competent jurisdiction, that the Indemnitee is not
entitled to be indemnified against such Indemnified Liabilities by the Company pursuant to this Agreement. If any action shall be brought
against any Indemnitee in respect of which indemnity may be sought pursuant to this Agreement, such Indemnitee shall promptly notify
the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably
acceptable to the Indemnitee. Any Indemnitee shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnitee, except to the extent that (i)
the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period
of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel,
a material conflict on any material issue between the position of the Company and the position of such Indemnitee, in which case the
Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel (plus local counsel). The
Company shall not, without the consent of the Indemnitee, consent to the entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release
from all liability in respect to such claim or litigation or which includes any admission as to fault, culpability or failure to act
on the part of such Indemnitee.

 

    	-26-

     

    

 

10.
EVENTS OF DEFAULT.

 

An
“Event of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

(a)
the effectiveness of a Registration Statement registering
the sale or resale of the Securities lapses for any reason (including, without limitation, the issuance of a stop order or similar order)
or such registration statement (or the prospectus forming a part thereof) is unavailable to the Investor for sale or resale of any or
all of the Securities to be issued to the Investor under the Transaction Documents that are required to be included therein, and such
lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business
Days in any 365-day period, but excluding a lapse or unavailability where (i) the Company terminates a Registration Statement after the
Investor has confirmed in writing that all of the Securities covered thereby have been resold or (ii) the Company supersedes one Registration
Statement with another Registration Statement, including (without limitation) by terminating a prior Registration Statement when it is
effectively replaced with a new Registration Statement covering Securities (provided in the case of this clause (ii) that all of the
Securities covered by the superseded (or terminated) Registration Statement that have not theretofore been resold are included in the
superseding (or new) Registration Statement);

 

(b)
the suspension of the Common Stock from trading on the
Principal Market for a period of at least one (1) Business Day, provided that the Company may not direct the Investor to purchase any
shares of Common Stock during any such suspension;

 

(c)
the delisting of the Common Stock from The NASDAQ Capital
Market provided, however, that the Common Stock is not immediately thereafter trading on The NASDAQ Global Select Market, The NASDAQ
Global Market, the New York Stock Exchange, the NYSE American, the NYSE Arca, the OTC Bulletin Board, or the OTCQB or the OTCQX operated
by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing);

 

(d)
the failure for any reason by the Transfer Agent to
issue (i) the Additional Commitment Shares to the Investor within two (2) Business Days after the date on which the Investor is entitled
to receive such Additional Commitment Shares pursuant to Section 5(e) hereof and (ii) the Purchase Shares to the Investor within two
(2) Business Days after the applicable Purchase Date, Accelerated Purchase Date or Additional Accelerated Purchase Date (as applicable)
on which the Investor is entitled to receive such Purchase Shares;

 

    	-27-

     

    

 

(e)
the Company breaches any representation, warranty, covenant
or other term or condition under this Agreement, any other Transaction Document or any other certificate, instrument or document executed
by the Company contemplated hereby or thereby, if such breach would reasonably be expected to have a Material Adverse Effect and except,
in the case of a breach of a covenant which is reasonably curable, only if such breach continues for a period of at least five (5) Business
Days;

 

(f)
if any Person commences a proceeding against the Company
pursuant to or within the meaning of any Bankruptcy Law;

 

(g)
if the Company is at any time insolvent, or, pursuant
to or within the meaning of any Bankruptcy Law, (i) commences a voluntary case, (ii) consents to the entry of an order for relief against
it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, or
(iv) makes a general assignment for the benefit of its creditors or is generally unable to pay its debts as the same become due;

 

(h)
a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company
or for all or substantially all of its property, or (iii) orders the liquidation of the Company; or

 

(i)
if at any time the Company is not eligible to transfer
its Common Stock electronically as DWAC Shares or if the Company fails to maintain the service of its Transfer Agent (or a successor
Transfer Agent) with respect to the issuance of Purchase Shares under this Agreement, including but not limited to, maintaining the effectiveness
of the Commencement Irrevocable Transfer Instructions, payment of all fees owed to the Transfer Agent and satisfaction of all conditions
required by the Transfer Agent to issue Purchase Shares pursuant to the Commencement Irrevocable Transfer Agent Instructions.

 

In
addition to any other rights and remedies under applicable law and this Agreement, so long as (i) an Event of Default has occurred and
is continuing, or if any event that, after notice and/or lapse of time, would reasonably be expected to become an Event of Default, has
occurred and is continuing or (ii) if at any time after the Commencement Date, the Exchange Cap is reached (to the extent the Exchange
Cap is applicable pursuant to Section 2(d) hereof), the Company shall not deliver to the Investor any Regular Purchase Notice, Accelerated
Purchase Notice or Additional Accelerated Purchase Notice.

 

11.
TERMINATION

 

This
Agreement may be terminated only as follows:

 

(a)
If pursuant to or within the meaning of any Bankruptcy
Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the
Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors (any
of which would be an Event of Default as described in Sections 10(f), 10(g) and 10(h) hereof), this Agreement shall
automatically terminate without any liability or payment to the Company (except as set forth below) without further action or notice
by any Person.

 

(b)
In the event that the Commencement shall not have occurred
on or before March 15, 2023, due to the failure to satisfy the conditions set forth in Sections 7 and 8 above with respect
to the Commencement, then this Agreement may be terminated by any party at the close of business on March 15, 2023 or thereafter, in
each case without liability of such party to the other party (except as set forth below); provided, however, that the right to terminate
this Agreement under this Section 11(b) shall not be available to any party if such party is then in breach of any covenant or
agreement contained in this Agreement or any representation or warranty of such party contained in this Agreement fails to be true and
correct such that the conditions set forth in Section 7(b) or Section 8(e), as applicable, could not then be satisfied.

 

    	-28-

     

    

 

(c)
At any time after the Commencement Date, the Company
shall have the option to terminate this Agreement for any reason or for no reason by delivering notice (a “Company Termination
Notice”) to the Investor electing to terminate this Agreement without any liability whatsoever of any party to any other party
under this Agreement (except as set forth below). The Company Termination Notice shall not be effective until one (1) Business Day after
it has been received by the Investor.

 

(d)
This Agreement shall automatically terminate on the
date that the Company sells and the Investor purchases the full Available Amount as provided herein, without any action or notice on
the part of any party and without any liability whatsoever of any party to any other party under this Agreement (except as set forth
below).

 

(e)
If, for any reason or for no reason, the full Available
Amount has not been purchased in accordance with Section 2 of this Agreement by the Maturity Date, this Agreement shall automatically
terminate on the Maturity Date, without any action or notice on the part of any party and without any liability whatsoever of any party
to any other party under this Agreement (except as set forth below).

 

Except
as set forth in Sections 11(a) (in respect of an Event of Default under Sections 10(f), 10(g) and 10(h)),
and 11(d), any termination of this Agreement pursuant to this Section 11 shall be effected by written notice from the Company
to the Investor, or the Investor to the Company, as the case may be, setting forth the basis for the termination hereof. The representations
and warranties and covenants of the Company and the Investor contained in Sections 3, 4, 5, and 6 hereof,
the indemnification provisions set forth in Section 9 hereof and the agreements and covenants set forth in Sections 10,
11 and 12 shall survive the execution and delivery of this Agreement and any termination of this Agreement. No termination
of this Agreement shall (i) affect the Company’s or the Investor’s rights or obligations under (A) this Agreement with respect
to any pending Regular Purchases, Accelerated Purchases, or Additional Accelerated Purchases, and the Company and the Investor shall
complete their respective obligations with respect to any pending Regular Purchases, Accelerated Purchases and Additional Accelerated
Purchases under this Agreement and (B) the Registration Rights Agreement, which shall survive any such termination in accordance with
its terms, or (ii) be deemed to release the Company or the Investor from any liability for intentional misrepresentation or willful breach
of any of the Transaction Documents.

 

12.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. The
corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders. All
other questions concerning the construction, validity, enforcement and interpretation of this Agreement and the other Transaction Documents
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of and venue in the U.S. District
Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in
the City and County of New York, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection
herewith or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR
ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	-29-

     

    

 

(b)
Counterparts. This Agreement may be executed
in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. Signatures transmitted by Adobe Sign, DocuSign, RightSignature, electronic
mail, or other digital or electronic means will be treated as original signatures for all purposes hereunder, each of which shall be
of the same legal effect, validity, and enforceability as a manually executed signature.

 

(c)
Headings. The headings of this Agreement are
for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

(d)
Severability. If any provision of this Agreement
shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability
of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other
jurisdiction.

 

(e)
Entire Agreement. Except as to the Company’s
obligation in respect of fees and expenses due and payable in connection with the negotiation and entry into the Transaction Documents,
which are set forth in the Term Sheet dated November 17, 2022, the Transaction Documents supersede all other prior oral or written agreements
between the Investor, the Company, their affiliates and Persons acting on their behalf with respect to the subject matter thereof, and
this Agreement, the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor
the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees
that it has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly set
forth in the Transaction Documents. The Investor acknowledges and agrees that it has not relied on, in any manner whatsoever, any representations
or statements, written or oral, other than as expressly set forth in the Transaction Documents.

 

(f)
Notices. Any notices, consents or other communications
required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i)
upon receipt when delivered personally; (ii) upon receipt when sent by facsimile or email (provided confirmation of transmission is mechanically
or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to receive the same. The addresses for such communications shall
be:

 

If
to the Company:

 

Indaptus
Therapeutics, Inc.

3
Columbus Circle

15th
Floor

New
York, New York 10019

E-mail:
nir@indaptusrx.com

Attention:
Nir Sassi

 

    	-30-

     

    

 

With
a copy to (which shall not constitute notice or service of process):

 

Greenberg
Traurig LLP

One
Vanderbilt Avenue

New
York, NY 10017

Telephone:
212-801-9337

Email:
gary.emmanuel@gtlaw.com

Attention:
Gary Emmanuel, Esq.

 

If
to the Investor:

 

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago,
IL 60654

	 	Telephone:	312-822-9300
	 	Facsimile:	312-822-9301
	 	E-mail:	jscheinfeld@lpcfunds.com/jcope@lpcfunds.com
	 	Attention:	Josh
    Scheinfeld/Jonathan Cope

 

With
a copy to (which shall not constitute notice or service of process):

 

Katten
Muchin Rosenman LLP

525
W. Monroe St.

Chicago,
IL 60661

	 	Telephone:	(312)
    902-5493
	 	E-mail:
    	mark.wood@katten.com
	 	Attention:	Mark
    D. Wood, Esq.

 

If
to the Transfer Agent:

 

VStock
Transfer, LLC

18
Lafayette Pl.

Woodmere,
NY 11598.

	 	Telephone:	212-828-8436
	 	Facsimile:	646-536-3179
	 	Email:	info@vstocktransfer.com

 

or
at such other address, email address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent or other communication, (B) mechanically or electronically generated by
the sender’s facsimile machine or email account containing the time, date, and recipient facsimile number or email address, as
applicable, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or email or deposit with a nationally recognized overnight delivery service in accordance with clause (i), (ii)
or (iii) above, respectively.

 

    	-31-

     

    

 

(g)
Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the parties and their respective successors and assigns. The Company shall not assign this
Agreement or any rights or obligations hereunder without the prior written consent of the Investor, including by merger or consolidation.
The Investor may not assign its rights or obligations under this Agreement.

 

(h)
No Third Party Beneficiaries. This Agreement
is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person.

 

(i)
Publicity. The Company shall afford the Investor
and its counsel with the opportunity to review and comment upon, shall consult with the Investor and its counsel on the form and substance
of, and shall give due consideration to all such comments from the Investor or its counsel on, any press release, any Current Report
on Form 8-K, or any other public disclosure by or on behalf of the Company relating to the Investor, its purchases hereunder or any aspect
to the Transaction Documents or the transactions contemplated thereby, not less than 24 hours prior to the issuance, filing or public
disclosure thereof. The Investor must be provided with a final version of any such press release, Current Report or other public disclosure
at least 24 hours prior to any release, filing or use by the Company thereof.

 

(j)
Further Assurances. Each party shall do and perform,
or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order to consummate and make effective, as soon as reasonably
possible, the Commencement, and to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

(k)
No Financial Advisor, Placement Agent, Broker or
Finder. The Company represents and warrants to the Investor that it has not engaged any financial advisor, placement agent, broker
or finder in connection with the transactions contemplated hereby. The Investor represents and warrants to the Company that it has not
engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Company
shall be responsible for the payment of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder
relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless against, any
liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out of pocket expenses) arising in connection
with any such claim made by a third party for any such fees or commissions.

 

(l)
No Strict Construction; Rules of Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules
of strict construction will be applied against any party. For the purposes of this Agreement, except to the extent that the context otherwise
requires: (i) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article
or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated; (ii) headings for this Agreement are for reference
purposes only and do not affect in any way the meaning or interpretation of this Agreement; (iii) whenever the words “include,”
“includes” or “including” (or similar terms) are used in this Agreement, they are deemed to be followed by the
words “without limitation”; (iv) the words “hereof,” “herein” and “hereunder” and words
of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement;
(v) the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms;; (vi) references
to a Person are also to its permitted successors and assigns; and (vii) the use of “or” is not intended to be exclusive unless
expressly indicated otherwise.

 

    	-32-

     

    

 

(m)
Remedies, Other Obligations, Breaches and Injunctive
Relief. The Investor’s remedies provided in this Agreement, including, without limitation, the Investor’s remedies provided
in Section 9, shall be cumulative and in addition to all other remedies available to the Investor under this Agreement, at law
or in equity (including a decree of specific performance and/or other injunctive relief). No remedy of the Investor contained herein
shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Investor’s
right to pursue actual damages for any failure by the Company to comply with the terms of this Agreement. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Investor and that the remedy at law for any such breach
may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Investor shall be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss
and without any bond or other security being required.

 

(n)
Enforcement Costs. If: (i) this Agreement is
placed by the Investor in the hands of an attorney for enforcement or is enforced by the Investor through any legal proceeding; (ii)
an attorney is retained to represent the Investor in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’
rights and involving a claim under this Agreement; or (iii) subject to Section 9, an attorney is retained to represent the Investor
in any other proceedings whatsoever in connection with this Agreement, then the Company shall pay to the Investor, as incurred by the
Investor, all reasonable costs and expenses including attorneys’ fees incurred in connection therewith, in addition to all other
amounts due hereunder.

 

(o)
Amendment and Waiver; Failure or Indulgence Not Waiver.
No provision of this Agreement (i) may be amended other than by a written instrument signed by both parties hereto and (ii) may be waived
other than in a written instrument signed by the party against whom enforcement of such waiver is sought. No failure or delay in the
exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

*
* * * *

 

    	-33-

     

    

 

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

 

	 	THE
    COMPANY:
	 	 
	 	INDAPTUS
    THERAPEUTICS, INC. 
	 	 	 
	 	By:
    	/s/
    Nir Sassi            
	 	Name:
    	Nir
    Sassi
	 	Title:
    	CFO

 

	 	THE
    INVESTOR:
	 	 
	 	LINCOLN
    PARK CAPITAL FUND, LLC 
	 	BY:
    LINCOLN PARK CAPITAL, LLC
	 	BY:
    ROCKLEDGE CAPITAL CORPORATION
	 	 	 
	 	By:
    	/s/
    Josh Scheinfeld
	 	Name:
    	Josh
    Scheinfeld
	 	Title:
    	President

 

    	-34-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]