Document:

Exhibit

Exhibit 10.1

FIFTH AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT
DATED AS OF MARCH 25, 2016
BY AND AMONG
P&L RECEIVABLES COMPANY, LLC, 
as Seller,
PEABODY ENERGY CORPORATION, 
as initial Servicer,
PEABODY ARCLAR MINING, LLC, 
PEABODY MIDWEST MINING, LLC, 
TWENTYMILE COAL, LLC, 
PEABODY CABALLO MINING, LLC, 
COALSALES II, LLC, 
PEABODY WESTERN COAL COMPANY, 
PEABODY POWDER RIVER MINING, LLC, 
PEABODY HOLDING COMPANY, LLC,
PEABODY BEAR RUN MINING, LLC,
PEABODY WILD BOAR MINING, LLC,
PEABODY GATEWAY NORTH MINING, LLC, 
PEABODY COALTRADE, LLC,
and 
PEABODY COALSALES, LLC, 
as Sub-Servicers,
THE VARIOUS CONDUIT PURCHASERS FROM TIME TO TIME PARTY HERETO,
THE VARIOUS COMMITTED PURCHASERS FROM TIME TO TIME PARTY HERETO,
THE VARIOUS PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO,
THE VARIOUS LC PARTICIPANTS FROM TIME TO TIME PARTY HERETO,
and
PNC BANK, NATIONAL ASSOCIATION, 
as Administrator and as LC Bank

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TABLE OF CONTENTS
Page

		
	ARTICLE I.
	AMOUNTS AND TERMS OF THE INVESTMENTS    2

		
	Section 1.1
	Investment Facility.    2

		
	Section 1.2
	Making Investments; Initial Investment; Joinders; Related Agreements.    4

		
	Section 1.3
	Transfer of Receivables and Other Purchased Assets    4

		
	Section 1.4
	Terms and Conditions for Sale, Assignment and Transfer    5

		
	Section 1.5
	Purchased Assets Coverage Percentage Computation.    9

		
	Section 1.6
	Settlement Procedures.    9

		
	Section 1.7
	Fees.    14

		
	Section 1.8
	Payments and Computations, Etc.    14

		
	Section 1.9
	Increased Costs.    15

		
	Section 1.10
	Requirements of Law.    16

		
	Section 1.11
	Inability to Determine Euro-Rate.    17

		
	Section 1.12
	Extension of the Facility Termination Date.    18

		
	Section 1.13
	Letters of Credit.    19

		
	Section 1.14
	Issuance of Letters of Credit.    19

		
	Section 1.15
	Requirements For Issuance of Letters of Credit.    20

		
	Section 1.16
	Disbursements, Reimbursement.    20

		
	Section 1.17
	Repayment of Participation Advances.    21

		
	Section 1.18
	Documentation.    22

		
	Section 1.19
	Determination to Honor Drawing Request.    22

		
	Section 1.20
	Nature of Participation and Reimbursement Obligations.    22

		
	Section 1.21
	Indemnity    24

		
	Section 1.22
	Liability for Acts and Omissions.    24

		
	ARTICLE II.
	REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS    26

		
	Section 2.1
	Representations and Warranties; Covenants.    26

		
	Section 2.2
	Termination Events.    26

		
	ARTICLE III.
	INDEMNIFICATION    26

		
	Section 3.1
	Indemnities by the Seller.    26

		
	Section 3.2
	Indemnities by the Servicer.    28

		
	ARTICLE IV.
	ADMINISTRATION AND COLLECTIONS    28

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TABLE OF CONTENTS
(continued)
Page

		
	Section 4.1
	Appointment of the Servicer.    28

		
	Section 4.2
	Duties of the Servicer.    29

		
	Section 4.3
	Lock-Box Arrangements.    31

		
	Section 4.4
	Enforcement Rights.    31

		
	Section 4.5
	Responsibilities of the Seller.    32

		
	Section 4.6
	Servicing Fee.    33

		
	Section 4.7
	Agents    33

		
	ARTICLE V.
	MISCELLANEOUS    38

		
	Section 5.1
	Amendments, Etc.    38

		
	Section 5.2
	Notices, Etc.    39

		
	Section 5.3
	Successors and Assigns; Assignability; Participations.    40

		
	Section 5.4
	Costs, Expenses and Taxes.    43

		
	Section 5.5
	No Proceedings; Limitation on Payments.    47

		
	Section 5.6
	Confidentiality.    47

		
	Section 5.7
	GOVERNING LAW AND JURISDICTION    48

		
	Section 5.8
	Execution in Counterparts    48

		
	Section 5.9
	Survival of Termination; Non-Waiver    49

		
	Section 5.10
	WAIVER OF JURY TRIAL    49

		
	Section 5.11
	Entire Agreement    49

		
	Section 5.12
	Headings    49

		
	Section 5.13
	Sharing of Recoveries    49

		
	Section 5.14
	Purchaser Groups’ Liabilities    50

		
	Section 5.15
	Right of Setoff    50

		
	Section 5.16
	USA Patriot Act    50

		
	Section 5.17
	Severability    51

		
	Section 5.18
	Mutual Negotiations    51

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TABLE OF CONTENTS
(continued)
Page

EXHIBIT I    DEFINITIONS
EXHIBIT II    CONDITIONS PRECEDENT
EXHIBIT III    REPRESENTATIONS AND WARRANTIES
EXHIBIT IV    COVENANTS
EXHIBIT V    TERMINATION EVENTS

SCHEDULE I    CREDIT AND COLLECTION POLICY
SCHEDULE II    LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS
SCHEDULE III    TRADE NAMES
SCHEDULE IV    OFFICE LOCATIONS
SCHEDULE V    GROUP COMMITMENTS
SCHEDULE VI    NOTICE ADDRESSES
SCHEDULE VII    SELLER ACCOUNT
SCHEDULE VIII    CLOSING MEMORANDUM

ANNEX A    FORM OF INFORMATION PACKAGE
ANNEX B    FORM OF INVESTMENT NOTICE
ANNEX C    FORM OF PAYDOWN NOTICE
ANNEX D    FORM OF COMPLIANCE CERTIFICATE
ANNEX E    FORM OF LETTER OF CREDIT APPLICATION
ANNEX F    FORM OF ASSUMPTION AGREEMENT
ANNEX G    FORM OF TRANSFER SUPPLEMENT
ANNEX H    FORM OF INTERIM REPORT

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This FIFTH AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (as amended, supplemented or otherwise modified from time to time, this “Agreement”) is entered into as of March 25, 2016, by and among P&L RECEIVABLES COMPANY, LLC, a Delaware limited liability company, as seller (the “Seller”), PEABODY ENERGY CORPORATION, a Delaware corporation (“Peabody”), as initial servicer (in such capacity, collectively, together with its successors and permitted assigns in such capacity, the “Servicer”), PEABODY ARCLAR MINING, LLC, an Indiana limited liability company, PEABODY MIDWEST MINING, LLC, an Indiana limited liability company, TWENTYMILE COAL, LLC, a Delaware limited liability company, PEABODY CABALLO MINING, LLC, a Delaware limited liability company, COALSALES II, LLC, a Delaware limited liability company, PEABODY WESTERN COAL COMPANY, a Delaware corporation, PEABODY POWDER RIVER MINING, LLC, a Delaware limited liability company, PEABODY HOLDING COMPANY, LLC, a Delaware limited liability company, PEABODY COALTRADE, LLC, a Delaware limited liability company, PEABODY COALSALES, LLC, a Delaware limited liability company, PEABODY GATEWAY NORTH MINING, LLC, a Delaware limited liability company, PEABODY WILD BOAR MINING, LLC, a Delaware limited liability company, PEABODY BEAR RUN MINING, LLC, a Delaware limited liability company (each a “Sub-Servicer” and collectively the “Sub-Servicers”), the various CONDUIT PURCHASERS from time to time party hereto, the various COMMITTED PURCHASERS from time to time party hereto, the various LC PARTICIPANTS from time to time party hereto, the various PURCHASER AGENTS from time to time party hereto, and PNC BANK, NATIONAL ASSOCIATION, a national banking association (“PNC”), as administrator (in such capacity, together with its successors and assigns in such capacity, the “Administrator”) and as issuer of Letters of Credit (in such capacity, together with its successors and assigns in such capacity, the “LC Bank”).

PRELIMINARY STATEMENTS.  Certain terms that are capitalized and used throughout this Agreement are defined in Exhibit I.  References in the Exhibits hereto to the “Agreement” refer to this Agreement, as amended, supplemented or otherwise modified from time to time.
The Seller desires to sell, transfer and assign receivables, and the Purchasers desire to acquire such receivables from time to time on the terms and subject to the conditions set forth herein.
This Agreement amends and restates in its entirety, as of the Closing Date, the Fourth Amended and Restated Receivables Purchase Agreement, dated as of May 1, 2013 (as amended, restated, supplemented or otherwise modified prior to the Closing Date, the “Original Agreement”), among the Seller, the Servicer, the Sub-Servicers, the various Purchasers and Purchaser Agents party thereto and the Administrator.  Notwithstanding the amendment and restatement of the Original Agreement by this Agreement, (i) the Seller and Servicer shall continue to be liable to the Administrator, the Purchasers and Purchaser Agents party to the Original Agreement and any other Indemnified Party or Affected Person (as such terms are defined in the Original Agreement) for fees and expenses which are accrued and unpaid under the Original Agreement on the Closing Date (collectively, the “Original Agreement Outstanding Amounts”) and all agreements to indemnify such parties in connection with events or conditions arising or existing prior to the effective date 

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of this Agreement and (ii) the security interest created under the Original Agreement shall remain in full force and effect as security for such Original Agreement Outstanding Amounts until such Original Agreement Outstanding Amounts shall have been paid in full.  Upon the effectiveness of this Agreement, each reference to the Original Agreement in any other document, instrument or agreement shall mean and be a reference to this Agreement.  Nothing contained herein, unless expressly herein stated to the contrary, is intended to amend, modify or otherwise affect any other instrument, document or agreement executed and/or delivered in connection with the Original Agreement.  For the avoidance of doubt, all Capital, Discount, Letters of Credit, Fees and all other amounts outstanding or owing by the Seller under the Original Agreement remain outstanding or owing by the Seller (or the Servicer or Sub-Servicers, as the case may be) hereunder.  
In consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:
ARTICLE I.

AMOUNTS AND TERMS OF THE INVESTMENTS
		
	Section 1.1
	Investment Facility.

		
	(a)
	On the terms and subject to the conditions hereof, the Seller may, from time to time before the Facility Termination Date, (i) request that the Purchasers ratably make investments with regard to the Purchased Assets from time to time from the date hereof to the Facility Termination Date in accordance with Section 1.2.  Each investment requested by the Seller pursuant to Section 1.2(a) (each, an “Investment”) in the Purchased Assets shall be made ratably by the respective Purchaser Groups, and each Purchaser Group’s Ratable Share of each Investment shall be made and funded (x) if such Purchaser Group contains a Conduit Purchaser and such Conduit Purchaser elects (in its sole discretion) to make and fund such portion of such Investment, by such Conduit Purchaser, or (y) if such Purchaser Group does not contain a Conduit Purchaser or if the Conduit Purchaser in such Purchaser Group declines (in its sole discretion) to make or fund such portion of such Investment, by the Committed Purchaser in such Purchaser Group and (ii) request that the LC Bank issue or cause to issue Letters of Credit.  Subject to Section 1.6(b) concerning reinvestments, at no time will a Conduit Purchaser have any obligation to make an Investment.  Each Committed Purchaser severally hereby agrees, on the terms and subject to the conditions hereof, to make Investments from time to time from the Closing Date to the Facility Termination Date, based on the applicable Purchaser Group’s Percentage of each Investment requested pursuant to Section 1.2(a) (and, in the case of each Committed Purchaser, its Commitment Percentage of its Purchaser Group’s Percentage of such Investment) and, on the terms of and subject to the conditions of this Agreement, the LC Bank agrees to issue Letters of Credit in return for (and each LC Participant hereby severally agrees to make participation advances in connection with any draws under such Letters of Credit equal to such LC Participant’s Pro Rata Share of such draws), the Purchased Assets from time to time from the Closing Date to the Facility Termination Date; provided, that under no 

	
			
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circumstances shall any Purchaser make any Investment (including, without limitation, any mandatory deemed Investment pursuant to Section 1.1(b)) or issue any Letters of Credit hereunder, as applicable, if, after giving effect to such Investment or issuance, the (i) Group Capital of such Purchaser’s Purchaser Group would exceed (A) its Purchaser Group’s Group Commitment (as the same may be reduced from time to time pursuant to Section 1.1(c)) minus (B) the related LC Participant’s Pro Rata Share of the LC Participation Amount, (ii) the Aggregate Capital plus the LC Participation Amount would exceed the Purchase Limit, (iii) the LC Participation Amount would exceed the aggregate of the Commitments of the  LC Bank and the LC Participants or (iv) the Purchased Assets Coverage Percentage would exceed 100%.
The Seller may, subject to the requirements and conditions set forth herein, use the proceeds of any Investment or Reinvestment by the Purchasers hereunder, to satisfy its Reimbursement Obligation to the LC Bank and the LC Participants (ratably, based on the outstanding amounts funded by  the LC Bank and each such LC Participant) pursuant to Section 1.16 below.  
		
	(b)
	In addition, in the event the Seller fails to reimburse the LC Bank and each applicable LC Participant for the full amount of any drawing under any Letter of Credit on the applicable Drawing Date (out of its own funds available therefor, or otherwise, at such time), pursuant to Section 1.16, then the Seller shall, automatically (and without the requirement of any further action on the part of any Person hereunder), be deemed to have requested a new Investment from the Conduit Purchasers or Committed Purchasers, as applicable, on such date, pursuant to the terms hereof, in an amount equal to the amount of such Reimbursement Obligation at such time. Subject to the limitations on funding set forth in Section 1.1(a) above (and otherwise herein), the Conduit Purchasers or Committed Purchasers, as applicable, shall fund such deemed Investment request and deliver the proceeds thereof directly to the Administrator to be immediately distributed (ratably) to the LC Bank and the applicable LC Participants in satisfaction of the Seller’s Reimbursement Obligation pursuant to Section 1.16 below, to the extent of the amounts permitted to be funded by the Conduit Purchasers or Committed Purchasers, as applicable, at such time, hereunder.  Neither Peabody nor any of its Subsidiaries (including the Originators), other than the Seller, shall be liable for the Reimbursement Obligation.

		
	(c)
	The Seller may, upon at least 30 days’ written notice to the Administrator, irrevocably reduce the unused portion of the Purchase Limit in whole or in part (but not below the amount that would cause the Aggregate Capital plus the LC Participation Amount to exceed the Purchase Limit or would cause the Group Capital of any Purchaser Group to exceed its Group Commitment, in each  case, after giving effect to such reduction); provided, that each partial reduction shall be in the amount of at least $5,000,000, or an integral multiple of $1,000,000  in excess thereof, and that, unless terminated in whole, the Purchase Limit shall in no event be reduced below $50,000,000.  Each reduction in the Commitments hereunder shall be made ratably among the Purchasers in accordance with their respective Purchaser Group’s 

	
			
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Percentages and their respective Commitments. The Administrator shall promptly advise the Purchaser Agents of any notice pursuant to this Section 1.1(c); it being understood that (in addition to and without limiting any other requirements for termination, prepayment and/or the funding of the LC Collateral Account hereunder) no such reduction shall be effective unless and until (i) in the case of a reduction of the Purchase Limit in whole to zero ($0), the amount on deposit in the LC Collateral Account is at least equal to the then outstanding LC Participation Amount and (ii) in the case of a partial reduction, the amount on deposit in the LC Collateral Account is at least equal to the difference between the then outstanding LC Participation Amount and the Purchase Limit as so reduced by such partial reduction.
		
	Section 1.2
	Making Investments; Initial Investment; Joinders; Related Agreements.

		
	(a)
	Each request for any Investment hereunder may be made on any day upon the Seller’s irrevocable written notice in the form of Annex B (each, an “Investment Notice”) delivered to the Administrator and each Purchaser Agent in accordance with Section 5.2 (which notice must be received by the Administrator and each Purchaser Agent before 11:00 a.m., New York City time) at least one Business Day before the requested Investment Date, which notice shall specify: (A) the amount requested to be paid to the Seller (such amount, which shall not be less than $300,000 and shall be in integral multiples of $100,000, with respect to each Purchaser Group, (B) the requested date of such Investment (which shall be a Business Day) and (C) the pro forma calculation of the Purchased Assets Coverage Percentage after giving effect to the increase in the Capital.

		
	(b)
	On the date of each Investment hereunder, each applicable Purchaser (determined in accordance with Section 1.1(a)) shall, upon satisfaction of the applicable conditions set forth in Exhibit II, make available to the Seller in same day funds, at the account set forth on Schedule VII, an amount equal to the Capital of the Investment being funded by such Purchaser.

Section 1.3    Transfer of Receivables and Other Purchased Assets.
		
	(a)
	Sale of Receivables.  In consideration of the payment by each applicable Purchaser of the amount of the applicable Purchaser Group’s share of the initial Investment on the date of the initial Investment hereunder, the Committed Purchasers’ assumption of their respective Commitments and the Administrator’s agreement (on behalf of the applicable Purchasers) to make payments to the Seller from time to time in accordance with Section 1.4 and for other good and valuable consideration, the receipt and sufficiency of which the Seller hereby acknowledges, effective on the Closing Date (without limiting any prior sales pursuant to Section 1.3(a) of the Original Agreement, which prior sales are hereby ratified and affirmed), the Seller hereby sells, conveys, transfers and assigns to the Administrator, on behalf of the Purchasers, all of Seller’s right, title and interest in and to (i) all Pool Receivables existing on the Closing Date or thereafter arising or acquired by the Seller from time to time prior to the Facility Termination Date and (ii) all Related Security, whether 

	
			
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existing on the Closing Date or thereafter arising at any time and acquired by the Seller.
		
	(b)
	Purchase of Purchased Assets.  Subject to the terms and conditions hereof, the Administrator (on behalf of the Purchasers) hereby purchases and accepts from the Seller the Pool Receivables and all other Related Security sold, assigned and transferred pursuant to Section 1.3(a) (collectively, the “Purchased Assets”).

		
	(c)
	Obligations Not Assumed.  The foregoing sale, assignment and transfer does not constitute and is not intended to result in the creation, or an assumption by the Administrator, any Purchaser Agent or any Purchaser, of any obligation of the Seller, any Originator or any other Person under or in connection with the Receivables or any other Related Security, all of which shall remain the obligations and liabilities of the Seller, the Originator and/or such other Person, as applicable.

		
	Section 1.4
	Terms and Conditions for Sale, Assignment and Transfer.  Subject to the terms and conditions hereof, including Exhibit II, in consideration for the sale, assignment and transfer of the Purchased Assets by the Seller to the Administrator (on behalf of the Purchasers) hereunder:

		
	(a)
	Investments.  From time to time prior to the Facility Termination Date, on request of the Seller for an Investment in accordance with Section 1.2(a), the applicable Purchasers in each Purchaser Group (determined in accordance with Section 1.1(a)), in accordance with Section 1.2(b), shall pay to the Seller the applicable Purchaser Group’s Percentage of the amount requested by the Seller under Section 1.2(a).

		
	(b)
	Reinvestments. On each Business Day prior to the Facility Termination Date, the Servicer, on behalf of the Administrator, shall pay to the Seller, out of Collections of the Pool Receivables, the amount available for reinvestment in accordance with Section 1.6(b)(ii).  Each such payment is herein referred to as a “Reinvestment” (and “Reinvest” shall have the correlative meaning).  All Reinvestments with respect to the applicable Purchasers shall be made ratably on behalf of the applicable Purchasers in the relevant Purchaser Group in accordance with the respective outstanding portions of the Aggregate Capital funded by them.

		
	(c)
	Deferred Purchase Price.  The Servicer, on behalf of the Administrator and the Purchasers, shall pay to the Seller, from Collections, the amounts payable to the Seller from time to time pursuant to Section 1.6(b)(ii), Section 1.6(b)(iv) and clause sixth of Section 1.6(d)(ii) (such amounts, the “Deferred Purchase Price” with respect to the Purchased Assets) at the times specified in such Sections, which remittances shall satisfy the obligation (up to the amount actually received by the Seller or Servicer) of the Administrator on behalf of the Purchasers to pay the Deferred Purchase Price with respect to the Purchased Assets to the Seller.  The parties hereto acknowledge and agree that the Administrator and the Purchasers shall have the right to, and intend to, set off (i) the Seller’s obligation to pay (or cause to be paid) to the Purchasers (or to the Administrator on their behalf) all Collections on the portion of 

	
			
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the Purchased Assets attributable to the Deferred Purchase Price against (ii) the Administrator’s and the Purchasers’ obligations to pay (or cause to be paid) to the Seller the Deferred Purchase Price.
		
	(d)
	Seller Payments Limited to Collections.  Notwithstanding any provision contained in this Agreement to the contrary, none of the Administrator, the Purchaser Agents or the Purchasers shall be obligated to pay any amount to the Seller as the purchase price of the Purchased Assets pursuant to subsections (b) and (c) above except to the extent of Collections on Receivables available for distribution to the Seller in accordance with this Agreement.  Any amount that the Administrator, any Purchaser Agent or any Purchaser does not pay pursuant to the preceding sentence shall not constitute a claim (as defined in § 101 of the Bankruptcy Code) against or corporate obligation of such Person for any such insufficiency unless and until such amount becomes available for distribution to the Seller in accordance with Section 1.6(d)(ii).

		
	(e)
	Intent of the Parties.  The Seller, the Administrator, the Purchaser Agents and the Purchasers intend that the sale, assignment and transfer of Purchased Assets to the Administrator (on behalf of the Purchasers) shall be treated as a sale for all purposes (other than for federal, state and local income and franchise tax purposes as provided in the following paragraph of this clause (e)).  If notwithstanding the intent of the parties, such sale, transfer and assignment is not treated as a sale for such purposes, such sale, assignment and transfer shall be treated as the grant of, and the Seller does hereby grant to the Administrator (for the benefit of the Purchasers) a security interest in the following property to secure all of the Seller’s obligations (monetary or otherwise) under this Agreement and the other Transaction Documents to which it is a party, whether now or hereafter existing or arising, due or to become due, direct or indirect, absolute or contingent: all of the Seller’s right, title and interest in, to and under all of the following, whether now or hereafter owned, existing or arising: (i) all Pool Receivables, (ii) all Related Security with respect to such Pool Receivables, (iii) all Collections with respect to such Pool Receivables, (iv) (A) the Lock-Box Accounts and all amounts on deposit therein, and all certificates and instruments, if any, from time to time evidencing such Lock-Box Accounts and amounts on deposit therein and (B) the LC Collateral Account and all amounts on deposit therein, and all certificates and instruments, if any, from time to time evidencing such LC Collateral Account and amounts on deposit therein, (v) all rights (but none of the obligations) of the Seller, including any security interests granted to it, under the Sale Agreement and the Contribution Agreement, (vi) the Servicer Note and (vii) all proceeds of, and all amounts received or receivable under any or all of, the foregoing (collectively, the “Pool Assets”).  The Seller hereby authorizes the Administrator to file financing statements describing as the collateral covered thereby as “all assets of the debtor, whether now owned or hereafter created, acquired or arising, and all proceeds of the foregoing” or words to that effect, notwithstanding that such wording may be broader in scope than the collateral described in this Agreement.  The Administrator, for the benefit of the Purchasers, shall have, with 

	
			
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respect to the Pool Assets, and in addition to all the other rights and remedies available to the Administrator and the Purchasers, all the rights and remedies of a secured party under any applicable UCC.  The Seller hereby acknowledges and agrees that pursuant to the Original Agreement, the Seller granted to the Administrator a security interest in all of the Seller’s right, title and interest in, to and under the Purchased Assets (as defined in the Original Agreement).  The Seller hereby confirms such security interest and acknowledges and agrees that such security interest is continuing and is supplemented and restated by the security interest granted by the Seller pursuant to this Section 1.4(e). 
Notwithstanding the foregoing paragraph of this clause (e), the Seller, the Administrator, the Purchaser Agents, the Purchasers and all other parties to this Agreement intend and agree to treat, for U.S. federal, state and local income and franchise tax (in the nature of income tax) purposes only, the sale, assignment and transfer of the Purchased Assets to the Administrator (on behalf of the Purchasers) as a loan to the Seller secured by the Pool Assets.  The provisions of this Agreement and all related Transaction Documents shall be construed to further these intentions of the parties.
		
	(f)
	LC Participant Investments.  Whenever the LC Bank issues a Letter of Credit pursuant to Section 1.14 hereof, each LC Participant shall, automatically and without further action of any kind upon the effective date of issuance of such Letter of Credit, have irrevocably deemed to make an Investment hereunder in the event that such Letter of Credit is subsequently drawn and such drawn amount shall not have been reimbursed pursuant to Section 1.16 upon such draw.  All such Investments shall comprise Base Rate Portions of Capital in an amount equal to the amount of such draw (without regard to the numerical requirements set forth in Section 1.2(a)), shall be made ratably by the LC Participants according to their Pro Rata Shares and shall accrue Discount.  In the event that any Letter of Credit expires or is surrendered without being drawn (in whole or in part) then, in such event, the foregoing commitment to make Investments shall expire with respect to such Letter of Credit and the LC Participation Amount shall automatically reduce by the amount of the Letter of Credit which is no longer outstanding.

		
	(g)
	Additional Purchasers or Purchaser Groups.  The Seller may, with the written consent of the Administrator (and, in the case of a new LC Participant, the LC Bank), which consent may be granted or withheld in their sole discretion, add additional Persons as Purchasers (either to an existing Purchaser Group or by creating new Purchaser Groups) or cause an existing Committed Purchaser or related LC Participant to increase its Commitment in connection with a corresponding increase in the Purchase Limit; provided, that the Commitment of any Committed Purchaser or related LC Participant may only be increased with the prior written consent of such Committed Purchaser or related LC Participant.  Each new Conduit Purchaser, Committed Purchaser or related LC Participant (or Purchaser Group) shall become a party hereto, by executing and delivering to the Administrator, each Purchaser Agent and the Seller, an Assumption Agreement in the form of Annex F hereto (which Assumption Agreement shall, in the case of any new Conduit Purchaser, Committed Purchaser 

	
			
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or LC Participant, be executed by each Person in such new Purchaser’s Purchaser Group).
		
	(h)
	Nature of Obligations; Defaulting Purchasers.  Each Committed Purchaser’s and related LC Participant’s obligations hereunder shall be several, such that the failure of any Committed Purchaser or related LC Participant to make a payment in connection with any Investment or drawing under a Letter of Credit hereunder, as the case may be, shall not relieve any other Committed Purchaser or related LC Participant of its obligation hereunder to make payment for any such Investment or drawing.  Further, in the event any Committed Purchaser or related LC Participant fails to satisfy its obligation to make an Investment or payment with respect to such drawing as required hereunder, upon receipt of notice of such failure from the Administrator (or any relevant Purchaser Agent), subject to the limitations set forth herein, the non-defaulting Committed Purchasers or related LC Participants in such defaulting Committed Purchaser’s or related LC Participant’s Purchaser Group shall fund the defaulting Committed Purchaser’s or related LC Participant’s Commitment Percentage of the related Investment or drawing pro rata in proportion to their relative Commitment Percentages (determined without regard to the Commitment Percentage of the defaulting Committed Purchaser or related LC Participant; it being understood that a defaulting Committed Purchaser’s or related LC Participant’s Commitment Percentage of any such Investment or drawing shall be first funded by the Committed Purchasers or related LC Participants in such defaulting Committed Purchaser’s or related LC Participant’s Purchaser Group and thereafter if there are no other Committed Purchasers or related LC Participants in such Purchaser Group or if such other Committed Purchasers or related LC Participants are also defaulting Committed Purchasers or related LC Participants, then such defaulting Committed Purchaser’s or related LC Participant’s Commitment Percentage of such Investment or drawing shall be funded by each other Purchaser Group ratably and applied in accordance with this Section 1.4(h)).  Notwithstanding the foregoing and for the avoidance of doubt, each Committed Purchaser’s and LC Participant’s obligation to fund any such Investment or drawing pursuant to this Section 1.4(h) shall be subject in all respects to the limitations set forth in the proviso to Section 1.1(a).

		
	Section 1.5
	Purchased Assets Coverage Percentage Computation.

The Purchased Assets Coverage Percentage shall be initially computed under this Agreement on the Closing Date.  Thereafter, until the Facility Termination Date, such Purchased Assets Coverage Percentage shall be automatically recomputed (or deemed to be recomputed) on each Business Day other than a Termination Day.  From and after the occurrence of any Termination Day, the Purchased Assets Coverage Percentage shall (until the event(s) giving rise to such Termination Day are satisfied or are waived in accordance with Section 5.1) be deemed to be 100%.  The Purchased Assets Coverage Percentage shall become zero when the Final Payout Date has occurred and the Servicer shall have received the accrued Servicing Fee thereon.
		
	Section 1.6
	Settlement Procedures.

	
			
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	(a)
	The collection of the Pool Receivables shall be administered by the Servicer in accordance with this Agreement.  The Seller shall provide to the Servicer on a timely basis all information needed for such administration, including notice of the occurrence of any Termination Day and current computations of the Purchased Assets Coverage Percentage.

		
	(b)
	The Servicer shall, on each day on which Collections of Pool Receivables are received (or deemed received) by the Seller or the Servicer, including pursuant to Section 1.6(g):

(i)    set aside and hold in trust (and shall, at the request of the Administrator, segregate in a separate account approved by the Administrator) for the benefit of the Purchasers, out of such Collections, first, an amount equal to the Aggregate Discount accrued through such day for each Portion of Capital and not previously set aside, second, an amount equal to the Fees accrued and unpaid through such day, and third, to the extent funds are available therefor, an amount equal to the Servicing Fee accrued through such day and not previously set aside,
(ii)    subject to Section 1.6(f), if such day is not a Termination Day, remit to the Seller the remainder of such Collections.  Such remainder shall, (x) to the extent representing a return of the Aggregate Capital, be automatically reinvested (ratably among the Purchasers according to each Purchaser’s Capital) in Pool Receivables, and in the Related Security, Collections and other proceeds with respect thereto and (y) to the extent not representing a return of the Aggregate Capital, be paid to the Seller in respect of the Deferred Purchase Price for the Purchased Assets; provided, however, that if the Purchased Assets Coverage Percentage would exceed 100%, then the Servicer shall not reinvest or remit to the Seller, but shall set aside and hold in trust for the benefit of the Purchasers (and shall, at the request of the Administrator, segregate in a separate account approved by the Administrator) a portion of such Collections that, together with the other Collections set aside pursuant to this paragraph, shall equal the amount necessary to reduce the Purchased Assets Coverage Percentage to 100% (determined as if such Collections set aside had been applied to reduce the Aggregate Capital or Adjusted LC Participation Amount, as applicable, at such time), which amount shall either (A) be deposited ratably to the Administration Account (for the benefit of the Purchasers) or (B) be deposited in the LC Collateral Account, in each case, as applicable, on the next Settlement Date in accordance with Section 1.6(c); provided, further, that (x) in the case of any Purchaser that is a Conduit Purchaser, if such Purchaser has provided notice (a “Declining Notice”) to its Purchaser Agent, the Administrator, and the Servicer that such Purchaser (a “Declining Conduit Purchaser”) no longer wishes Collections with respect to any Portion of Capital funded or maintained by such Purchaser to be reinvested pursuant to this clause (ii), and (y) in the case of any Purchaser that has provided notice (an “Exiting Notice”) to its Purchaser Agent of its refusal, pursuant to Section 1.12, to extend its Commitment hereunder (an “Exiting Purchaser”) then in either case (x) or (y), above, such Purchaser’s ratable share (determined according to outstanding Capital) of such remaining Collections shall not be reinvested or remitted to the Seller and shall 

	
			
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instead be held in trust for the benefit of such Purchaser and applied in accordance with clause (iii) below,
(iii)    if such day is a Termination Day (or any day following the provision of a Declining Notice or an Exiting Notice), set aside, segregate and hold in trust (and shall, at the request of the Administrator, segregate in a separate account approved by the Administrator) for the benefit of the Purchasers the entire remainder of such Collections (or in the case of a Declining Conduit Purchaser or an Exiting Purchaser an amount equal to such Purchaser’s ratable share (determined according to outstanding Capital) of such Collections; provided, that solely for the purpose of determining such Purchaser’s ratable share of such Collections, such Purchaser’s Capital shall be deemed to remain constant from the date of the provision of a Declining Notice or an Exiting Notice, as the case may be, until the date such Purchaser’s Capital has been paid in full; it being understood that if such day is also a Termination Day, such Declining Conduit Purchaser’s or Exiting Purchaser’s Capital shall be recalculated taking into account amounts received by such Purchaser in respect of this parenthetical and thereafter Collections shall be set aside for such Purchaser ratably in respect of its Capital (as recalculated)); provided, further, that if amounts are set aside and held in trust on any Termination Day of the type described in clause (a) of the definition of “Termination Day” (or any day following the provision of a Declining Notice or an Exiting Notice) and, thereafter, the conditions set forth in Section 2 of Exhibit II are satisfied or waived by the Administrator and the Majority Purchaser Agents (or in the case of a Declining Notice or an Exiting Notice, such Declining Notice or Exiting Notice, as the case may be, has been revoked by the related Declining Conduit Purchaser or Exiting Purchaser, respectively and written notice thereof has been provided to the Administrator, the related Purchaser Agent and the Servicer), such previously set-aside amounts shall, to the extent representing a return of Aggregate Capital (or the Capital of the Declining Conduit Purchaser or Exiting Purchaser, as the case may be) and ratably (determined according to outstanding Capital), be reinvested and/or paid to the Seller in respect of the Deferred Purchase Price for the Purchased Assets in accordance with clause (ii) above on the day of such subsequent satisfaction or waiver of conditions or revocation of Declining Notice or Exiting Notice, as the case may be, and
(iv)    subject to Section 1.6(f), pay to the Seller (on behalf of the Administrator and the Purchasers) for the Seller’s own account and in payment of the Deferred Purchase Price for the Purchased Assets any Collections in excess of:  (x) amounts required to be reinvested in accordance with clause (ii) above or the last proviso to clause (iii) above, plus (y) the amounts that are required to be set aside pursuant to clause (i) above, the provisos to clause (ii) and clause (iii) above, plus (z) all reasonable and appropriate out-of-pocket costs and expenses of the Servicer for servicing, collecting and administering the Pool Receivables.
		
	(c)
	The Servicer shall, in accordance with the priorities set forth in Section 1.6(d), deposit into the Administration Account (or such other account designated by the Administrator), on each Settlement Date (or, solely with respect to Collections held for the Purchasers pursuant to Section 1.6(f)(iii), such other date approved by the 

	
			
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Administrator with at least five (5) Business Days prior written notice to the Administrator of such payment), Collections held for the Purchasers pursuant to Section 1.6(b)(i), (ii) or (iii) or 1.6(f); provided, that if Peabody or an Affiliate thereof is the Servicer, such day is not a Termination Day and the Administrator has not notified Peabody (or such Affiliate) that the right to retain the portion of Collections set aside pursuant to Section 1.6(b)(i) that represents the Servicing Fee is revoked, Peabody (or such Affiliate) may retain the portion of the Collections set aside pursuant to Section 1.6(b)(i) that represents the Servicing Fee in payment in full of the accrued Servicing Fees so set aside.  On the last day of each Settlement Period, each Purchaser (or its Purchaser Agent on its behalf) will notify the Servicer by electronic mail of the amount of Discount accrued with respect to each Portion of Capital during such Settlement Period or portion thereof.
		
	(d)
	Upon receipt of funds deposited into the Administration Account pursuant to clause (c) above, the Administrator shall cause such funds to be distributed as follows:

(i)    if such distribution occurs on a day that is not a Termination Day and the Purchased Assets Coverage Percentage does not exceed 100%, first to the Purchaser Agents (for the benefit of the Purchasers in their respective Purchaser Groups) in payment in full of all accrued Discount and Fees, and second, if the Servicer has set aside amounts in respect of the Servicing Fee pursuant to clause (b)(i) above and has not retained such amounts pursuant to clause (c) above, to the Servicer (payable in arrears on each Settlement Date) in payment in full of the accrued Servicing Fees so set aside, and
(ii)    if such distribution occurs on a Termination Day or on a day when the Purchased Assets Coverage Percentage exceeds 100%, first to the Purchaser Agents (for the benefit of the Purchasers in their respective Purchaser Groups) in payment in full of all accrued Discount and Fees, second to the Purchaser Agents (for the benefit of the Purchasers in their respective Purchaser Groups) in payment in full of Capital (or, if such day is not a Termination Day, the amount necessary to reduce the Purchased Assets Coverage Percentage to 100%) (determined as if such Collections had been applied to reduce the aggregate outstanding Capital), third, to the LC Collateral Account for the benefit of the LC Bank and the LC Participants, (x) the amount (if any) necessary to cause the amount of cash collateral held in the LC Collateral Account (other than amounts representing LC Fee Expectation) to equal the aggregate outstanding amount of the LC Participation Amount (or, if such day is not a Termination Day, the amount necessary to reduce the Purchased Assets Coverage Percentage to 100%) (determined as if such Collections had been applied to reduce the aggregate outstanding amount of the LC Participation Amount) and (y) if such day is a Termination Day or a Termination Event is continuing, an amount equal to the LC Fee Expectation at such time (or such portion thereof not currently on deposit in the LC Collateral Account), fourth, to the Servicer in payment in full of all accrued Servicing Fees, fifth, if all amounts owing under clauses first through fourth above have been paid in full, to the Purchaser Agents (for the benefit of such Purchaser Agent and the Purchasers in their respective Purchaser Groups), the Administrator and any other Indemnified Party or Affected Person in payment in full of any other amounts owed thereto by the Seller hereunder, and 

	
			
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sixth, after the occurrence of the Final Payout Date, all additional Collections with respect to the Purchased Assets shall be paid to the Seller for its own account in payment of the Deferred Purchase Price for such Purchased Assets.
		
	(e)
	For the purposes of this Section 1.6:

(i)    if on any day the Outstanding Balance of any Pool Receivable is reduced or adjusted as a result of any defective, rejected, returned, repossessed or foreclosed goods or services, or any revision, cancellation, allowance, rebate, discount or other adjustment made by the Seller or any Affiliate of the Seller, or any setoff or dispute between the Seller or any Affiliate of the Seller and an Obligor, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in the amount of such reduction or adjustment;
(ii)    if on any day any of the representations or warranties in Section l(g) or (m) of Exhibit III is not true with respect to any Pool Receivable, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in full;
(iii)    except as provided in clause (i) or (ii) above, or as otherwise required by Applicable Law or the relevant Contract, all Collections received from an Obligor of any Receivable shall be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting with the oldest such Receivable, unless such Obligor designates in writing its payment for application to specific Receivables; and
(iv)    if and to the extent the Administrator, any Purchaser Agent or any Purchaser shall be required for any reason to pay over to an Obligor (or any trustee, receiver, custodian or similar official in any Insolvency Proceeding) any amount received by it hereunder, such amount shall be deemed not to have been so received by the Administrator, such Purchaser Agent or such Purchaser but rather to have been retained by the Seller and, accordingly, the Administrator, such Purchaser Agent or such Purchaser, as the case may be, shall have a claim against the Seller for such amount, payable when and to the extent that any distribution from or on behalf of such Obligor is made in respect thereof.
		
	(f)
	If at any time the Seller shall wish to cause the reduction of Aggregate Capital (but not to commence the liquidation, or reduction to zero, of the entire Aggregate Capital), the Seller may do so as follows:

(i)    the Seller shall give the Administrator, each Purchaser Agent and the Servicer written notice in the form of Annex C (the “Paydown Notice”) at least two Business Days prior to the date of such reduction for any reduction of Aggregate Capital and such notice shall include the amount of such reduction and the proposed date on which such reduction shall commence;
(ii)    on the proposed date of the commencement of such reduction and on each day thereafter, the Servicer shall cause Collections not to be reinvested until the amount thereof not so reinvested shall equal the desired amount of reduction; and

	
			
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(iii)    the Servicer shall hold such Collections in trust for the benefit of the Administrator (for the benefit of each Purchaser), for payment to the Administrator by deposit into the Administration Account on the next Settlement Date immediately following the current Settlement Period or such other date approved by the Administrator and the Majority Purchaser Agents, and Capital shall be deemed reduced in the amount to be paid to the Administrator only when in fact finally so paid;
provided, that the amount of any such reduction shall be not less than $300,000 and shall be an integral multiple of $100,000.  Upon receipt by the Administrator in the Administration Account of any amount paid in reduction of the Aggregate Capital pursuant to sub-clause (iii) above, the Administrator shall cause such funds to be distributed to the Purchaser Agents (for the benefit of the Purchasers in their respective Purchaser Groups) in payment of each Purchaser’s outstanding Capital.
(g)    The Servicer may, in its sole discretion, and shall at the direction of the Administrator (which direction may be given no more than once per week unless a Termination Event has occurred and is then continuing), deliver an Interim Report to the Administrator on any Business Day other than a Settlement Date.  Upon receipt of such Interim Report, the Administrator shall promptly review such Interim Report to determine if such Interim Report constitutes a Qualifying Interim Report.  In the event that the Administrator reasonably determines that such Interim Report constitutes a Qualifying Interim Report, so long as no Termination Event or Unmatured Termination Event has occurred and is continuing and so long as the Facility Termination Date has not yet occurred, the Administrator shall promptly remit to the Servicer from the Lock-Box Account (or the LC Collateral Account, if applicable) the lesser of (i) the amount identified on such Qualifying Interim Report as Collections on deposit in the Lock-Box Account and/or LC Collateral Account in excess of the amount necessary to ensure that the Purchased Assets Coverage Percentage does not exceed 100% and (ii) the aggregate amount of available Collections then on deposit in the Lock-Box Accounts and the LC Collateral Account.  For purposes of this clause (g), “Qualifying Interim Report” shall mean any Interim Report that satisfies each of the following conditions: (A) the Purchased Assets Coverage Percentage as set forth in such Interim Report shall not exceed 100%; (B) such Interim Report is calculated as of the immediately prior Business Day and (C) all of the information and calculations set forth in such Interim Report are true and correct.  For the avoidance of doubt, the Administrator shall have no obligation to remit funds to the Seller or the Servicer or any Affiliate thereof from the Lock-Box Account (or the LC Collateral Account, if applicable) unless the Administrator shall have received a Qualifying Interim Report.
		
	Section 1.7
	Fees.

The Seller shall pay to the Administrator, the Purchasers and the Purchaser Agents the fees in the amounts and on the dates set forth in those certain fee letter agreements for each Purchaser Group, in each case, from time to time entered into among Peabody, the Seller and the applicable Purchaser Agent and/or the Administrator (as such letter agreements may be amended, supplemented or otherwise modified from time to time, the “Fee Letters”).
		
	Section 1.8
	Payments and Computations, Etc.

	
			
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	(a)
	All amounts to be paid or deposited by the Seller or the Servicer hereunder shall be made without reduction for offset or counterclaim and shall be paid or deposited no later than noon (New York City time) on the day when due in same day funds to the Administration Account.  All amounts received after noon (New York City time) will be deemed to have been received on the next Business Day.  Amounts payable hereunder to or for the benefit of the Administrator, the Purchasers or the Purchaser Agents (or their related Affected Persons or Indemnified Parties) shall be distributed as follows:

(i)    Any amounts to be distributed by or on behalf of the Administrator hereunder to any Purchaser Agent, Purchaser or Purchaser Group shall be distributed to the account specified in writing from time to time by the applicable Purchaser Agent to the Administrator, and the Administrator shall have no obligation to distribute any such amounts unless and until it actually receives payment of such amounts by the Seller or the Servicer, as applicable, in the Administration Account.  Except as expressly set forth herein (including, without limitation, as set forth in Section 1.6(b)(iii) with respect to Collections held in trust for Declining Conduit Purchasers and Exiting Purchasers), the Administrator shall distribute (or cause to be distributed) such amounts to the Purchaser Agents for the Purchasers within their respective Purchaser Groups ratably (x) in the case of such amounts paid in respect of Discount and Fees, according to the Discount and Fees payable to the Purchasers and (y) in the case of such amounts paid in respect of Capital (or in respect of any other obligations other than Discount and Fees), according to the outstanding Capital funded by the Purchasers.
(ii)    Except as expressly set forth herein (including, without limitation, as set forth in Section 1.6(b)(iii) with respect to Collections held in trust for Declining Conduit Purchasers and Exiting Purchasers), each Purchaser Agent shall distribute the amounts paid to it hereunder for the benefit of the Purchasers in its Purchaser Group to the Purchasers within its Purchaser Group ratably (x) in the case of such amounts paid in respect of Discount and Fees, according to the Discount and Fees payable to such Purchasers and (y) in the case of such amounts paid in respect of Capital (or in respect of any other obligations other than Discount and Fees), according to the outstanding Capital funded by such Purchasers.
		
	(b)
	The Seller or the Servicer, as the case may be, shall, to the extent permitted by law, pay interest on any amount not paid or deposited by the Seller or the Servicer, as the case may be, when due hereunder, at an interest rate equal to 2.0% per annum above the Base Rate, payable on demand.

		
	(c)
	All computations of interest under clause (b) above and all computations of Discount, fees and other amounts hereunder shall be made on the basis of a year of 360 (or 365 or 366, as applicable, with respect to Discount or other amounts calculated by reference to the Base Rate) days for the actual number of days elapsed.  Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made on the next Business Day and such extension of time shall be included in the computation of such payment or deposit.

	
			
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	Section 1.9
	Increased Costs.

		
	(a)
	If after the Closing Date the Administrator, the LC Bank, any Purchaser Agent, any Purchaser, any Liquidity Bank, any other Program Support Provider or any of their respective Affiliates (each an “Affected Person”) reasonably determines that any Change in Law affects or would affect the amount of capital required or expected to be maintained by such Affected Person, and such Affected Person determines that the amount of such capital is increased by or based upon the existence of any commitment to make Investments in (or otherwise to maintain the Investments in) Pool Receivables or issue any Letter of Credit related to this Agreement or any related liquidity facility, credit enhancement facility and other commitments of the same type, then, upon demand by such Affected Person or its related Purchaser Agent (with a copy to the Administrator), the Seller shall promptly pay to the Administrator, for the account of such Affected Person, from time to time as specified by such Affected Person or its related Purchaser Agent, additional amounts sufficient to compensate such Affected Person in the light of such circumstances, to the extent that such Affected Person reasonably determines such increase in capital to be allocable to the existence of any of such commitments.

		
	(b)
	If due to any Change in Law there shall be any increase after the Closing Date in the cost to any Affected Person of agreeing to purchase or purchasing, or maintaining the ownership of, the Purchased Assets (or its portion thereof and including, without limitation, funding or maintaining its Capital), then, upon demand by such Affected Person, the Seller shall promptly pay to such Affected Person, from time to time as specified by such Affected Person, additional amounts sufficient to compensate such Affected Person for such increased costs.

		
	(c)
	If such increased costs affect the related Affected Person’s portfolio of financing transactions, such Affected Person shall use reasonable averaging and attribution methods to allocate such increased costs to the transactions contemplated by this Agreement.

		
	(d)
	A certificate of an Affected Person (or its related Purchaser Agent) setting forth the amount or amounts necessary to compensate such Affected Person as specified in clause (a) or (b) of this Section and delivered to the Seller and the Administrator, shall be conclusive absent manifest error.  The Seller shall pay such Affected Person’s related Purchaser Agent (for the account of such Affected Person) the amount shown as due on the first Settlement Date occurring after the Seller’s receipt of such certificate.

		
	(e)
	Failure or delay on the part of any Affected Person to demand compensation pursuant to this Section 1.9 shall not constitute a waiver of such Affected Person’s right to demand such compensation; provided that the Seller shall not be required to compensate an Affected Person pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Affected Person, notifies the Seller of the Change in Law giving rise to such increased costs or 

	
			
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reductions and of such Affected Person’s intention to claim compensation therefor; provided, further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
		
	Section 1.10
	Requirements of Law.

(a)    If, after the Closing Date, any Affected Person determines that any Change in Law:
(i)    does or shall subject such Affected Person to any Tax of any kind whatsoever with respect to this Agreement, any purchase of or investment in the Purchased Assets or any increase in the amount of Capital relating thereto, or does or shall change the basis of taxation of payments to such Affected Person on account of Collections, Discount or any other amounts payable hereunder (excluding Indemnified Taxes and Excluded Taxes),
(ii)    does or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or for the account of, purchases, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Affected Person that are not otherwise included in the determination of the Euro-Rate hereunder, or
(iii)    does or shall impose on such Affected Person any other condition, 
and the result of any of the foregoing is:  (A) to increase the cost to such Affected Person of agreeing to purchase or purchasing or maintaining the ownership of, or issuing any Letter of Credit in respect of, the Purchased Assets (or interests therein) or any Portion of Capital, or (B) to reduce any amount receivable hereunder (whether directly or indirectly), then, in any such case, upon demand by such Affected Person, the Seller shall promptly pay to such Affected Person additional amounts necessary to compensate such Affected Person for such additional cost or reduced amount receivable.  All such amounts shall be payable as incurred.  
(b)    A certificate of an Affected Person (or its related Purchaser Agent) setting forth the amount or amounts necessary to compensate such Affected Person as specified in clause (a) of this Section and delivered to the Seller and the Administrator, shall be conclusive absent manifest error; provided, however, that no Affected Person shall be required to disclose any confidential or tax planning information in any such certificate.  The Seller shall pay such Affected Person’s related Purchaser Agent (for the account of such Affected Person) the amount shown as due on each Settlement Date occurring after the Seller’s receipt of such certificate.
(c)    Failure or delay on the part of any Affected Person to demand compensation pursuant to this Section 1.10 shall not constitute a waiver of such Affected Person’s right to demand such compensation; provided that the Seller shall not be required to compensate an Affected Person pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Affected Person, notifies the Seller of the Change in Law giving rise to such increased costs or reductions and of such Affected Person’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is 

	
			
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retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
		
	Section 1.11
	Inability to Determine Euro-Rate.

		
	(a)
	If the Administrator (or any Purchaser Agent) determines on any day (which determination shall be final and conclusive) that, by reason of circumstances affecting the interbank eurodollar market generally, deposits in dollars (in the relevant amounts for such Settlement Period) are not being offered to banks in the interbank eurodollar market on such day, or adequate means do not exist for ascertaining the Euro-Rate on such day, then, the Administrator or such Purchaser Agent, as applicable, shall give notice thereof to the Seller.  Thereafter, until the Administrator or such Purchaser Agent notifies the Seller that the circumstances giving rise to such suspension no longer exist, (i) no Portion of Capital shall be funded at the Alternate Rate determined by reference to the Euro-Rate and (ii) the Discount for any outstanding Portions of Capital then funded at the Alternate Rate determined by reference to the Euro-Rate shall be converted to the Alternate Rate determined by reference to the Base Rate.

		
	(b)
	If, on any day, the Administrator shall have been notified by any Affected Person that, such Affected Person has determined (which determination shall be final and conclusive) that, any enactment, promulgation or adoption of or any change in any Applicable Law or any change in the interpretation or administration thereof by a governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by such Affected Person with any guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for such Affected Person to fund or maintain any Portion of Capital at the Alternate Rate and based upon the Euro-Rate, the Administrator shall notify the Seller thereof.  Upon receipt of such notice, until the Administrator notifies the Seller that the circumstances giving rise to such determination no longer apply, (i) no Portion of Capital shall be funded at the Alternate Rate determined by reference to the Euro-Rate and (ii) the Discount for any outstanding Portions of Capital then funded at the Alternate Rate determined by reference to the Euro-Rate shall immediately be converted to the Alternate Rate determined by reference to the Base Rate.

		
	Section 1.12
	Extension of the Facility Termination Date.

Provided that no Termination Event or Unmatured Termination Event exists and is continuing, the Seller may request the extension of the Facility Termination Date set forth in clause (a) of the definition thereof by providing written notice to the Administrator and each Purchaser Agent; provided such request is made not more than 120 days prior to, and not less than 60 days prior to, the then current Facility Termination Date scheduled to occur pursuant to clause (a) of the definition thereof.  In the event that the Purchasers are all agreeable to such extension, the Administrator shall so notify the Seller and the Servicer in writing (it being understood that each 

	
			
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Purchaser may accept or decline such a request in its sole discretion and on such terms as it may elect) not less than 30 days prior to the then current Facility Termination Date scheduled to occur pursuant to clause (a) of the definition thereof, and the Seller, the Servicer, the Sub-Servicers, the Administrator, the Purchaser Agents and the Purchasers shall enter into such documents as the Administrator, the Purchaser Agents and the Purchasers may deem necessary or appropriate to reflect such extension, and all reasonable costs and expenses incurred by the Purchasers, the Purchaser Agents and the Administrator in connection therewith (including reasonable Attorney Costs) shall be paid by the Seller.  In the event any Purchaser declines the request for such extension, such Purchaser (or its Purchaser Agent) shall so notify the Administrator and the Administrator shall so notify the Seller of such determination; provided, that the failure of the Administrator to notify the Seller of the determination to decline such extension shall not affect the understanding and agreement that the applicable Purchasers shall be deemed to have refused to grant the requested extension in the event the Administrator fails to affirmatively notify the Seller, in writing, of their agreement to accept the requested extension.  If the Facility Termination Date is extended with respect to one or more, but less than all Purchasers, then the Purchase Limit shall be reduced ratably with respect to the Purchasers in each Purchaser Group by an amount equal to the Commitment(s) of the Exiting Purchaser(s) and the Commitment Percentages and Group Commitments of the Purchasers within each Purchaser Group shall be appropriately adjusted.
		
	Section 1.13
	Letters of Credit.

Subject to the terms and conditions hereof (including the satisfaction of the applicable conditions set forth in Exhibit II), the LC Bank shall issue or cause the issuance of standby Letters of Credit (“Letters of Credit”), at the Seller’s direction, for the account of the Servicer or any Sub-Servicer (or such of the Servicer’s or any Sub-Servicer’s designee, which designee shall be a Subsidiary of such Sub-Servicer or the Servicer, as applicable)).  All amounts drawn upon Letters of Credit shall accrue Discount.  Letters of Credit that have not been drawn upon shall not accrue Discount.
		
	Section 1.14
	Issuance of Letters of Credit.

		
	(a)
	The Seller may request the LC Bank, upon two (2) Business Days’ prior written notice submitted on or before 11:00 a.m., New York time, to issue a Letter of Credit by delivering to the Administrator an Investment Notice substantially in the form of Annex B attached hereto and the LC Bank’s form of Letter of Credit Application (the “Letter of Credit Application”), substantially in the form of Annex E attached hereto completed to the satisfaction of the Administrator and the LC Bank; and, such other certificates, documents and other papers and information as the Administrator may reasonably request.  The Seller also has the right to give instructions and make agreements with respect to any Letter of Credit Application and the disposition of documents, and to agree with the Administrator upon any amendment, extension or renewal of any Letter of Credit.

		
	(b)
	Each Letter of Credit shall, among other things, (i) provide for the payment of sight drafts or other written demands for payment when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents 

	
			
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described therein and (ii) have an expiry date not later than twelve (12) months after such Letter of Credit’s date of issuance, extension or renewal, as the case may be, and in no event later than twelve (12) months after the Facility Termination Date.  Each Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600, and any amendments or revisions thereof adhered to by the LC Bank (“UCP 600”) or the International Standby Practices (ISP98-International Chamber of Commerce Publication Number 590), and any amendments or revisions thereof adhered to by the LC Bank (the “ISP98 Rules”), as determined by the LC Bank.
		
	(c)
	The Administrator shall promptly notify the LC Bank and the LC Participants, at such Person’s address for notices hereunder, of the request by the Seller for a Letter of Credit hereunder, and shall provide the LC Bank and the LC Participants with the Letter of Credit Application delivered to the Administrator by the Seller pursuant to paragraph (a), above, by the close of business on the day received or if received on a day that is not a Business Day or on any Business Day after 11:00 a.m. New York time on such day, on the next Business Day.

		
	Section 1.15
	Requirements For Issuance of Letters of Credit.

The Seller shall authorize and direct the LC Bank to name the Seller, the Servicer or any Sub-Servicer (or such the Servicer’s or any Sub-Servicer’s, as applicable, designee, which designee shall be a Subsidiary of such Sub-Servicer or the Servicer, as applicable) as the “Applicant” or “Account Party” of each Letter of Credit.
		
	Section 1.16
	Disbursements, Reimbursement.

		
	(a)
	Immediately upon the issuance of each Letter of Credit, each LC Participant shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the LC Bank a participation in such Letter of Credit and each drawing thereunder in an amount equal to such LC Participant’s Pro Rata Share of the face amount of such Letter of Credit and the amount of such drawing, respectively.  

		
	(b)
	In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the LC Bank will promptly notify the Administrator and the Seller of such request.  Provided that it shall have received such notice, the Seller shall reimburse (such obligation to reimburse the LC Bank shall sometimes be referred to as a “Reimbursement Obligation” and the required date of reimbursement, the “Reimbursement Date”) the LC Bank prior to 12:00 p.m., New York time on each date that an amount is paid by the LC Bank under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount so paid by the LC Bank.  Such Reimbursement Obligation shall be satisfied by the Seller (i) first, by the remittance by the Administrator to the LC Bank of any available amounts then on deposit in the LC Collateral Account and (ii) second, by the remittance by or on behalf of the Seller to the LC Bank of any other funds of the Seller then available 

	
			
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for disbursement.  In the event the Seller fails to reimburse the LC Bank for the full amount of any drawing under any Letter of Credit by 12:00 p.m., New York time, on the Reimbursement Date, the LC Bank will promptly notify each LC Participant thereof, and the Seller shall be deemed to have requested that an Investment be made by the Purchasers in the Purchaser Groups for the LC Bank and the LC Participants to be disbursed on the Drawing Date under such Letter of Credit in accordance with Section 1.1(b), subject to the amount of the unutilized portion of the Purchase Limit.  Any notice given by the LC Bank pursuant to this Section 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 oral notice.
		
	(c)
	Each LC Participant shall upon any notice pursuant to clause (b) above make available to the LC Bank an amount in immediately available funds equal to its Pro Rata Share of the amount of the drawing, whereupon the LC Participants shall  each be deemed to have made an Investment in that amount.  If any LC Participant so notified fails to make available to the LC Bank the amount of such LC Participant’s Pro Rata Share of such amount by no later than 2:00 p.m., New York time on the Drawing Date, then interest shall accrue on such LC Participant’s obligation to make such payment, from the Drawing Date to the date on which such LC Participant makes such payment (i) at a rate per annum equal to the Federal Funds Rate during the first three days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Capital on and after the fourth day following the Drawing Date.  The LC Bank will promptly give notice of the occurrence of the Drawing Date, but failure of the LC Bank to give any such notice on the Drawing Date or in sufficient time to enable any LC Participant to effect such payment on such date shall not relieve such LC Participant from its obligation under this clause (c), provided that such LC Participant shall not be obligated to pay interest as provided in subclauses (i) and (ii) above until and commencing from the date of receipt of notice from the LC Bank or the Administrator of a drawing.  Each LC Participant’s Commitment shall continue until the last to occur of any of the following events:  (A) the LC Bank ceases to be obligated to issue or cause to be issued Letters of Credit hereunder; (B) no Letter of Credit issued hereunder remains outstanding and uncancelled or (C) all Persons (other than the Seller) have been fully reimbursed for all payments made under or relating to Letters of Credit. 

		
	Section 1.17
	Repayment of Participation Advances.

		
	(a)
	Upon (and only upon) receipt by the LC Bank for its account of immediately available funds from the Seller (i) in reimbursement of any payment made by the LC Bank under a Letter of Credit with respect to which any LC Participant has made a participation advance to the LC Bank, or (ii) in payment of Discount on the Investments made or deemed to have been made in connection with any such draw, the LC Bank will pay to each LC Participant, ratably (based on the outstanding drawn amounts funded by each such LC Participant in respect of such Letter of Credit), in the same funds as those received by the LC Bank; it being understood, that the LC 

	
			
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Bank shall retain a ratable amount of such funds that were not the subject of any payment in respect of such Letter of Credit by any LC Participant.
		
	(b)
	If the LC Bank is required at any time to return to the Seller, or to a trustee, receiver, liquidator, custodian, or any official in any insolvency proceeding, any portion of the payments made by the Seller to the LC Bank pursuant to this Agreement in reimbursement of a payment made under the Letter of Credit or interest or fee thereon, each LC Participant shall, on demand of the LC Bank, forthwith return to the LC Bank the amount of its Pro Rata Share of any amounts so returned by the LC Bank plus interest at the Federal Funds Rate from the date the payment was first made to such LC Participant through, but not including, the date the payment is returned by such LC Participant.

		
	(c)
	If any Letters of Credit are outstanding and undrawn on the Facility Termination Date, the LC Collateral Account shall be funded from Collections (or, in the Seller’s sole discretion, by other cash available to the Seller) in an amount equal to the aggregate undrawn face amount of such Letters of Credit plus all applicable fees to accrue through the stated expiration dates thereof (such fees to accrue, as reasonably estimated by the LC Bank, the “LC Fee Expectation”).

		
	Section 1.18
	Documentation.

The Seller agrees to be bound by and shall cause the Servicer or any Sub-Servicer (or such the Servicer’s or any Sub-Servicer’s, as applicable, designee, which designee shall be a Subsidiary of such Sub-Servicer or the Servicer, as applicable) named as the “Applicant” or “Account Party” of any Letter of Credit to agree to be bound by the terms of the Letter of Credit Application and by the LC Bank’s interpretations of any Letter of Credit issued for the Seller and by the LC Bank’s written regulations and customary practices relating to letters of credit, though the LC Bank’s interpretation of such regulations and practices may be different from the Seller’s own.  In the event of a conflict between the Letter of Credit Application and this Agreement, this Agreement shall govern.  It is understood and agreed that, except in the case of gross negligence or willful misconduct by the LC Bank, the LC Bank shall not be liable for any error, negligence and/or mistakes, whether of omission or commission, in following the Seller’s instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto.
		
	Section 1.19
	Determination to Honor Drawing Request.

In determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, the LC Bank 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 and that any other drawing condition appearing on the face of such Letter of Credit has been satisfied in the manner so set forth.

	
			
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	Section 1.20
	Nature of Participation and Reimbursement Obligations.

Each LC Participant’s obligation in accordance with this Agreement to make participation advances as a result of a drawing under a Letter of Credit, and the obligations of the Seller to reimburse the LC Bank 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 Article I  under all circumstances, including the following circumstances:
(i)    any set-off, counterclaim, recoupment, defense or other right which such LC Participant may have against the LC Bank, the Administrator, any Purchaser Agent, any Purchaser, the Seller or any other Person for any reason whatsoever;
(ii)    the failure of the Seller or any other Person to comply with the conditions set forth in this Agreement for the making of an Investment, Reinvestments, requests for Letters of Credit or otherwise, it being acknowledged that such conditions are not required for the making of participation advances hereunder;
(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 Seller, the LC Bank or any LC Participant against the beneficiary of a Letter of Credit, or the existence of any claim, set-off, defense or other right which the Seller, the LC Bank or any LC Participant may have at any time against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), the LC Bank, any LC Participant, any Purchaser Agent, any Purchaser or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Seller or any Subsidiaries of the Seller or any Affiliates of the Seller and the beneficiary for which any Letter of Credit was procured);
(v)    the lack of power or authority of any signer of, or lack of validity, sufficiency, accuracy, enforceability or genuineness of, any draft, demand, instrument, certificate or other document presented under any Letter of Credit, or any such draft, demand, instrument, certificate or other document proving to be forged, fraudulent, invalid, defective or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, even if the Administrator or the LC Bank has been notified thereof;
(vi)    payment by the LC Bank 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 other than as a result of the gross negligence or willful misconduct of the LC Bank;
(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;

	
			
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(viii)    any failure by the LC Bank or any of the LC Bank’s Affiliates to issue any Letter of  Credit in the form requested by the Seller, unless the LC Bank has received written notice from the Seller of such failure within three Business Days after the LC Bank shall have furnished the Seller 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 Material Adverse Effect on the Seller, any Originator or any Affiliates thereof;
(x)    any breach of this Agreement or any Transaction Document by any party thereto;
(xi)    the occurrence or continuance of an Insolvency Proceeding with respect to the Seller, any Originator or any Affiliate thereof;
(xii)    the fact that a Termination Event or an Unmatured Termination Event shall have occurred and be continuing; 
(xiii)    the fact that this Agreement or the obligations of Seller or Servicer hereunder shall have been terminated; and 
(xiv)    any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.
Nothing in this Section 1.20 shall relieve the LC Bank from liability for its gross negligence or willful misconduct, as determined by a final non-appealable judgment of a court of competent jurisdiction.
		
	Section 1.21
	Indemnity. 

In addition to other amounts payable hereunder, the Seller hereby agrees to protect, indemnify, pay and save harmless the Administrator, the LC Bank, each LC Participant and any of the LC Bank’s Affiliates that have issued a Letter of Credit from and against any and all claims, demands, liabilities, damages, penalties, interest, judgments, losses, costs, charges and expenses (including Attorney Costs) which the Administrator, the LC Bank, any LC Participant or any of their respective 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 party to be indemnified as determined by a final judgment of a court of competent jurisdiction or (b) the wrongful dishonor by the LC Bank 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 Governmental Authority (all such acts or omissions herein called “Governmental Acts”).  This Section 1.21 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim pursuant to this Section 1.21.

	
			
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	Section 1.22
	Liability for Acts and Omissions.

As between the Seller, on the one hand, and the Administrator, the LC Bank, the LC Participants, the Purchaser Agents and the Purchasers, on the other, the Seller assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, (x) the respective beneficiaries or (y) the Servicer or any Sub-Servicer (or such the Servicer’s or any Sub-Servicer’s, as applicable, designee, which designee shall be a Subsidiary of such Sub-Servicer or the Servicer, as applicable) named as the “Applicant” or “Account Party” of such Letters of Credit.  In furtherance and not in limitation of the respective foregoing, none of the Administrator, the LC Bank, the LC Participants, the Purchaser Agents or the Purchasers shall be responsible for: (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 LC Bank 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 Seller against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among the Seller 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 Administrator, the LC Bank, the LC Participants, the Purchaser Agents and the Purchasers, including any Governmental Acts, and none of the above shall affect or impair, or prevent the vesting of, any of the LC Bank’s rights or powers hereunder. Nothing in the preceding sentence shall relieve the LC Bank from liability for its gross negligence or willful misconduct, as determined by a final non-appealable judgment of a court of competent jurisdiction, in connection with actions or omissions described in such clauses (i) through (viii) of such sentence.  In no event shall the Administrator, the LC Bank, the LC Participants, the Purchaser Agents, the Purchasers or their respective Affiliates, be liable to the Seller or any other Person 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 Administrator, the LC Bank, the LC Participants, the Purchaser Agents, the Purchasers and each of their respective Affiliates (i) may rely on any written communication believed in good faith by such Person 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 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 

	
			
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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 LC Bank or its Affiliates; (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 Administrator, the LC Bank, the LC Participants, the Purchaser Agents, the Purchasers or their respective Affiliates, 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 LC Bank under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith and without gross negligence or willful misconduct, as determined by a final non-appealable judgment of a court of competent jurisdiction, shall not put the LC Bank under any resulting liability to the Seller, any LC Participant or any other Person.
ARTICLE II.     
REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS
		
	Section 2.1
	Representations and Warranties; Covenants.

Each of the Seller, Peabody and the Servicer hereby makes the representations and warranties, and hereby agrees to perform and observe the covenants, applicable to it set forth in Exhibits III and IV, respectively.
		
	Section 2.2
	Termination Events.

If any of the Termination Events set forth in Exhibit V shall occur, the Administrator may (with the consent of the Majority Purchasers) or shall (at the direction of the Majority Purchasers), by notice to the Seller, declare the Facility Termination Date to have occurred (in which case the Facility Termination Date shall be deemed to have occurred); provided, that automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of notice) described in paragraph (f) of Exhibit V, the Facility Termination Date shall occur.  Upon any such declaration, occurrence or deemed occurrence of the Facility Termination Date, the Administrator, the Purchaser Agents and the Purchasers shall have, in addition to the rights and remedies that they may have under this Agreement, all other rights and remedies provided after default under the New York UCC and under other Applicable Law, which rights and remedies shall be cumulative.

	
			
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ARTICLE III.     
INDEMNIFICATION
		
	Section 3.1
	Indemnities by the Seller.

Without limiting any other rights that the Administrator, the Purchaser Agents, the Purchasers, the Liquidity Banks, any Program Support Provider or any of their respective Affiliates, employees, officers, directors, agents, counsel, successors, transferees or permitted assigns (each, an “Indemnified Party”) may have hereunder or under Applicable Law, the Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims, damages, expenses, costs, losses and liabilities (including Attorney Costs) (all of the foregoing being collectively referred to as “Indemnified Amounts”) arising out of or resulting from this Agreement (whether directly or indirectly), the use of proceeds of Investments or Reinvestments, the ownership of any portion of the Purchased Assets, or any interest therein, or in respect of any Receivable, Related Security or Contract, excluding, however:  (a) Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Indemnified Party or its employees, officers, directors, agents, counsel, successors, transferees or permitted assigns or (b) any indemnification which has the effect of recourse for the non-payment of the Receivables to any indemnitor (except as otherwise specifically provided in this Agreement).  Without limiting or being limited by the foregoing, and subject to the exclusions set forth in the preceding sentence, the Seller shall pay on demand (which demand shall be accompanied by documentation of the Indemnified Amounts, in reasonable detail) to each Indemnified Party any and all amounts necessary to indemnify such Indemnified Party from and against any and all Indemnified Amounts relating to or resulting from any of the following:
(i)    the failure of any Receivable included in the calculation of the Net Receivables Pool Balance as an Eligible Receivable to be an Eligible Receivable, the failure of any information contained in an Information Package to be true and correct on the date thereof (or, if such information is stated therein to be as of a different date, on such different date), or the failure of any other information provided to any Purchaser or the Administrator with respect to Receivables or this Agreement to be true and correct on the date so provided (or, if such information is stated therein to be as of a different date, on such different date),
(ii)    the failure of any representation, warranty or statement made or deemed made by the Seller (or any of its officers) under or in connection with this Agreement to have been true and correct as of the date made or deemed made in all respects when made,
(iii)    the failure by the Seller to comply with any Applicable Law with respect to any Pool Receivable or the related Contract, or the failure of any Pool Receivable or the related Contract to conform to any such Applicable Law,
(iv)    the failure to vest in the Administrator (on behalf of the Purchasers) a valid and enforceable first priority perfected ownership or security interest in the Pool Assets, free and clear of any Adverse Claim,

	
			
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(v)    the failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other Applicable Laws with respect to any Receivables in, or purporting to be in, the Receivables Pool and the other Pool Assets, whether at the time of any Investment or Reinvestment or at any subsequent time,
(vi)    any dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool (including a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of the goods or services related to such Receivable or the furnishing or failure to furnish such goods or services or relating to collection activities with respect to such Receivable (if such collection activities were performed by the Seller or any of its Affiliates acting as Servicer or by any agent or independent contractor retained by the Seller or any of its Affiliates),
(vii)    any failure of the Seller (or any of its Affiliates acting as the Servicer) to perform its duties or obligations in accordance with the provisions hereof or under the Contracts,
(viii)    any products liability or other claim, investigation, litigation or proceeding arising out of or in connection with merchandise, insurance or services that are the subject of any Contract,
(ix)    the commingling of Collections at any time with other funds,
(x)    the use of proceeds of Investments or Reinvestments, or
(xi)    any reduction in Capital as a result of the distribution of Collections pursuant to Section 1.6(d), if all or a portion of such distributions shall thereafter be rescinded or otherwise must be returned for any reason.
This Section 3.1 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim pursuant to this Section 3.1.
		
	Section 3.2
	Indemnities by the Servicer.

Without limiting any other rights that any Indemnified Party may have hereunder or under Applicable Law, the Servicer hereby agrees to indemnify each Indemnified Party from and against any and all Indemnified Amounts arising out of or resulting from (whether directly or indirectly):  (a) the failure of any information contained in an Information Package to be true and correct on the date thereof (or, if such information is stated therein to be as of a different date, on such different date), or the failure of any other information provided to any such Indemnified Party by, or on behalf of, the Servicer to be true and correct on the date so provided (or, if such information is stated therein to be as of a different date, on such different date), (b) the failure of any representation, warranty or statement made or deemed made by the Servicer (or any of its officers) under or in connection 

	
			
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with this Agreement to have been true and correct as of the date made or deemed made in all respects when made, (c) the failure by the Servicer to comply with any Applicable Law with respect to any Pool Receivable or the related Contract, (d) any dispute, claim, offset or defense of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool resulting from or related to the collection activities with respect to such Receivable, or (e) any failure of the Servicer to perform its duties or obligations in accordance with the provisions hereof.
ARTICLE IV.     
ADMINISTRATION AND COLLECTIONS
		
	Section 4.1
	Appointment of the Servicer.

		
	(a)
	The servicing, administering and collection of the Pool Receivables shall be conducted by the Person so designated from time to time as the Servicer in accordance with this Section.  Until the Administrator gives notice to Peabody (in accordance with this Section) of the designation of a new Servicer, Peabody is hereby designated as, and hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof.  Upon the occurrence of a Termination Event, the Administrator may designate as Servicer any Person (including itself) to succeed Peabody or any successor Servicer, on the condition in each case that any such Person so designated shall agree to perform the duties and obligations of the Servicer pursuant to the terms hereof.

		
	(b)
	Upon the designation of a successor Servicer as set forth in clause (a) above, Peabody agrees that it will terminate its activities as Servicer hereunder in a manner that the Administrator determines will facilitate the transition of the performance of such activities to the new Servicer, and Peabody shall cooperate with and assist such new Servicer.  Such cooperation shall include access to and transfer of related records and use by the new Servicer of all licenses, hardware or software necessary or desirable to collect the Pool Receivables and the Related Security.

		
	(c)
	Peabody acknowledges that, in making their decision to execute and deliver this Agreement, the Administrator and the Purchasers have relied on Peabody’s agreement to act as Servicer hereunder.  Accordingly, Peabody agrees that it will not voluntarily resign as Servicer.

		
	(d)
	The Servicer may and hereby does delegate its duties and obligations hereunder to the Originators as subservicer (each a “Sub-Servicer”); provided, that, in such delegation:  (i) each such Sub-Servicer shall and hereby does agree in writing to perform the duties and obligations of the Servicer pursuant to the terms hereof, (ii) the Servicer shall remain primarily liable for the performance of the duties and obligations so delegated, (iii) the Seller, the Administrator, the Purchaser Agents and the Purchasers shall have the right to look solely to the Servicer for performance, and (iv) the terms of any agreement with any Sub-Servicer shall and hereby do provide that the Administrator may terminate such agreement upon the termination of the Servicer hereunder by giving notice of its desire to terminate such agreement 

	
			
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to the Servicer (and the Servicer shall provide appropriate notice to each such Sub-Servicer); provided, however, that if any such delegation is to any Person other than Peabody Arclar Mining, LLC, Peabody Midwest Mining, LLC, Twentymile Coal, LLC, Peabody Caballo Mining, LLC, COALSALES II, LLC, Peabody Western Coal Company, Peabody Gateway North Mining, LLC, Peabody Wild Boar Mining, LLC, Peabody Bear Run Mining, LLC, Peabody Powder River Mining, LLC, Peabody Holding Company, LLC, PEABODY COALTRADE, LLC or PEABODY COALSALES, LLC, the Administrator shall have consented in writing in advance to such delegation.
		
	Section 4.2
	Duties of the Servicer.

		
	(a)
	The Servicer shall take or cause to be taken all such action as may be necessary or advisable to administer and collect each Pool Receivable from time to time, all in accordance with this Agreement and all Applicable Laws, with reasonable care and diligence, and in accordance with the Credit and Collection Policy.  The Servicer shall set aside, for the accounts of the Seller, the Administrator, the Purchaser Agents and the Purchasers, the amount of the Collections to which each is entitled in accordance with Article I.  The Servicer may, in accordance with the applicable Credit and Collection Policy, extend the maturity of any Pool Receivable and extend the maturity or adjust the Outstanding Balance of any Defaulted Receivable as the Servicer may determine to be appropriate to maximize Collections thereof; provided, however, that: for the purposes of this Agreement, (i) such extension shall not change the number of days such Pool Receivable has remained unpaid from the date of the invoice date related to such Pool Receivable, (ii) such extension or adjustment shall not alter the status of such Pool Receivable as a Delinquent Receivable or a Defaulted Receivable or limit the rights of any of the Purchasers, the Purchaser Agents or the Administrator under this Agreement and (iii) if a Termination Event has occurred and is continuing and Peabody or an Affiliate thereof is serving as the Servicer, Peabody or such Affiliate may make such extension or adjustment only upon the prior approval of the Administrator.  The Seller shall deliver to the Servicer and the Servicer shall hold for the benefit of the Seller and the Administrator (individually and for the benefit of the Purchasers), in accordance with their respective interests, all records and documents (including computer tapes or disks) with respect to each Pool Receivable.  Notwithstanding anything to the contrary contained herein, the Administrator may direct the Servicer (whether the Servicer is Peabody or any other Person) to commence or settle any legal action to enforce collection of any Pool Receivable or to foreclose upon or repossess any Related Security.

		
	(b)
	The Servicer shall, as soon as practicable following actual receipt of collected funds, turn over to the Seller the collections of any indebtedness that is not a Pool Receivable, less, if Peabody or an Affiliate thereof is not the Servicer, all reasonable and appropriate out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering such collections.  The Servicer, if other than Peabody or an Affiliate thereof, shall, as soon as practicable upon demand, deliver to the Seller 

	
			
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all records in its possession that evidence or relate to any indebtedness that is not a Pool Receivable, and copies of records in its possession that evidence or relate to any indebtedness that is a Pool Receivable.
		
	(c)
	The Servicer’s obligations hereunder shall terminate on the Final Payout Date.

After such termination, if Peabody or an Affiliate thereof was not the Servicer on the date of such termination, the Servicer shall promptly deliver to the Seller all books, records and related materials that the Seller previously provided to the Servicer, or that have been obtained by the Servicer, in connection with this Agreement.
		
	Section 4.3
	Lock-Box Arrangements.

Prior to the Closing Date, the Seller shall have entered into Lock-Box Agreements with all of the Lock-Box Banks and delivered original counterparts thereof to the Administrator.  At all times on and after the Closing Date, the Administrator shall exercise exclusive dominion and control (for the benefit of the Purchasers) over each of the Lock-Box Accounts and all funds on deposit therein; provided, that such control shall be subject to the provisions of Section 1.6(g) and amounts on deposit therein shall be applied in accordance with the order of priorities set forth in Section 1.6.  The Seller, the Servicer and each Sub-Servicer each hereby agrees that the Administrator shall have exclusive control (for the benefit of the Purchasers) of the proceeds (including Collections) of all Pool Receivables and the Seller and the Servicer hereby further agree to take any other action that the Administrator may reasonably request to ensure that the Administrator maintains such control.  Neither the Seller nor any Affiliate of Peabody shall have any control over any Lock-Box Account or any right to withdraw or direct the Administrator, any Lock-Box Bank or any other Person to withdraw any funds on deposit in any Lock-Box Account.  
The Administrator shall have exclusive dominion and control, including the exclusive right of withdrawal, over the LC Collateral Account and the Seller hereby grants the Administrator a security interest in the LC Collateral Account and all money or other assets on deposit therein or credited thereto.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrator and at the Seller’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in the LC Collateral Account.  Moneys in the LC Collateral Account shall be applied by the Administrator to reimburse the LC Bank for each drawing under a Letter of Credit and for repayment of amounts owing by the Seller hereunder and under each of the other Transaction Documents to each of the other Purchasers, it being understood and agreed that certain amounts on deposit in the LC Collateral Account may, from time to time, be remitted to the Servicer pursuant to Section 1.6(g).  Amounts, if any, on deposit in the LC Collateral Account on the Final Payout Date shall be remitted by the Administrator to the Seller.
The Administrator shall, on each Settlement Date (if such date occurs on a Termination Day or on a date that any Capital is then outstanding), remove any available amounts then on deposit in the Lock-Box Accounts and the LC Collateral Account and deposit such amounts into each Purchaser Agent’s account in accordance with the priorities set forth in Section 1.6(d), to the extent that any 

	
			
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amounts are then due and owing under clauses first through second of Section 1.6(d)(ii) after giving effect to the distribution, if any, by the Servicer on such date in accordance with Section 1.6(d).
		
	Section 4.4
	Enforcement Rights.

		
	(a)
	At any time following the occurrence and during the continuation of a Termination Event:

(i)    the Administrator may direct the Obligors that payment of all amounts payable under any Pool Receivable is to be made directly to the Administrator or its designee (on behalf of the Purchasers),
(ii)    the Administrator may instruct the Seller or the Servicer to give notice of the Purchasers’ interest in Pool Receivables to each Obligor, which notice shall direct that payments be made directly to the Administrator or its designee (on behalf of the Purchasers), and the Seller or the Servicer, as the case may be, shall give such notice at the expense of the Seller or the Servicer, as the case may be; provided, that if the Seller or the Servicer, as the case may be, fails to so notify each Obligor within two (2) Business Days following instruction by the Administrator, the Administrator (at the Seller’s or the Servicer’s, as the case may be, expense) may so notify the Obligors, and
(iii)    the Administrator may request the Servicer to, and upon such request the Servicer shall:  (A) assemble all of the records necessary or desirable to collect the Pool Receivables and the Related Security, and transfer or license to a successor Servicer the use of all software necessary or desirable to collect the Pool Receivables and the Related Security, and make the same available to the Administrator or its designee (for the benefit of the Purchasers) at a place selected by the Administrator, and (B) segregate all cash, checks and other instruments received by it from time to time constituting Collections in a manner acceptable to the Administrator and, promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with duly executed instruments of transfer, to the Administrator or its designee (on behalf of the Purchasers); and
(iv)    the Administrator may replace the Person then acting as Servicer.
		
	(b)
	The Seller hereby authorizes the Administrator, and irrevocably appoints the Administrator as its attorney-in-fact with full power of substitution and with full authority in the place and stead of the Seller, which appointment is coupled with an interest, to take any and all steps in the name of the Seller and on behalf of the Seller necessary or desirable following the occurrence and during the continuation of a Termination Event, in the determination of the Administrator, to collect any and all amounts or portions thereof due under any and all Pool Assets, including endorsing the name of the Seller on checks and other instruments representing Collections and enforcing such Pool Assets.  Notwithstanding anything to the contrary contained in this subsection, none of the powers conferred upon such attorney-in-fact pursuant to the preceding sentence shall subject such attorney-in-fact to any liability if any 

	
			
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action taken by it shall prove to be inadequate or invalid, nor shall they confer any obligations upon such attorney-in-fact in any manner whatsoever.
		
	Section 4.5
	Responsibilities of the Seller.

		
	(a)
	Anything herein to the contrary notwithstanding, the Seller shall:  (i) perform all of its obligations, if any, under the Contracts related to the Pool Receivables to the same extent as if such Pool Receivables had not been transferred hereunder, and the exercise by the Administrator, any Purchaser Agent or any Purchaser of their respective rights hereunder shall not relieve the Seller from such obligations, and (ii) pay when due any taxes, including any sales taxes payable in connection with the Pool Receivables and their creation and satisfaction.  Neither the Administrator nor any Purchaser Agent nor any Purchaser shall have any obligation or liability with respect to any Pool Asset, nor shall any of them be obligated to perform any of the obligations of the Seller, Peabody or any Originator thereunder.

		
	(b)
	Peabody hereby irrevocably agrees that if at any time it shall cease to be the Servicer hereunder, it shall act (if the then-current Servicer so requests) as the data-processing agent of the Servicer and, in such capacity, Peabody shall conduct the data-processing functions of the administration of the Receivables and the Collections thereon in substantially the same way that Peabody conducted such data-processing functions while it acted as the Servicer.

		
	Section 4.6
	Servicing Fee.

		
	(a)
	Subject to clause (b), the Servicer shall be paid a fee equal to 1.00% per annum (the “Servicing Fee Rate”) of the daily average aggregate Outstanding Balance of the Pool Receivables.  Such fee shall be paid through the distributions contemplated by Section 1.6(d).

		
	(b)
	If the Servicer ceases to be Peabody or an Affiliate thereof, the servicing fee shall be the greater of:  (i) the amount calculated pursuant to clause (a), and (ii) an alternative amount specified by the successor Servicer not to exceed 110% of the aggregate reasonable costs and expenses incurred by such successor Servicer in connection with the performance of its obligations as Servicer.

		
	Section 4.7
	Agents.

		
	(a)
	Appointment and Authorization.

(i)    Each Purchaser and Purchaser Agent hereby irrevocably designates and appoints PNC Bank, National Association, as the “Administrator” hereunder and authorizes the Administrator to take such actions and to exercise such powers as are delegated to the Administrator hereby and to exercise such other powers as are reasonably incidental thereto.  The Administrator shall hold, in its name, for the benefit of each Purchaser, ratably, the Purchased Assets.  The Administrator shall not have any duties other than those expressly 

	
			
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set forth herein or any fiduciary relationship with any Purchaser or Purchaser Agent, and no implied obligations or liabilities shall be read into this Agreement, or otherwise exist, against the Administrator.  The Administrator does not assume, nor shall it be deemed to have assumed, any obligation to, or relationship of trust or agency with, the Seller, the Servicer or any Sub-Servicer.  Notwithstanding any provision of this Agreement or any other Transaction Document to the contrary, in no event shall the Administrator ever be required to take any action which exposes the Administrator to personal liability or which is contrary to the provision of any Transaction Document or Applicable Law.
(ii)    Each Purchaser hereby irrevocably designates and appoints the respective institution identified as the Purchaser Agent for such Purchaser’s Purchaser Group on the signature pages hereto or in the Assumption Agreement or Transfer Supplement pursuant to which such Purchaser becomes a party hereto, and each authorizes such Purchaser Agent to take such action on its behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to such Purchaser Agent by the terms of this Agreement, if any, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Purchaser or other Purchaser Agent or the Administrator, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of such Purchaser Agent shall be read into this Agreement or otherwise exist against such Purchaser Agent.
(iii)    Except as otherwise specifically provided in this Agreement, the provisions of this Section 4.7 are solely for the benefit of the Purchaser Agents, the Administrator and the Purchasers, and none of the Seller, the Servicer or any Sub-Servicer shall have any rights as a third‐party beneficiary or otherwise under any of the provisions of this Section 4.7, except that this Section 4.7 shall not affect any obligations which any Purchaser Agent, the Administrator or any Purchaser may have to the Seller, the Servicer or any Sub-Servicer under the other provisions of this Agreement.  Furthermore, no Purchaser shall have any rights as a third-party beneficiary or otherwise under any of the provisions hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such Purchaser.
(iv)    In performing its functions and duties hereunder, the Administrator shall act solely as the agent of the Purchasers and the Purchaser Agents and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the Seller, the Servicer or any Sub-Servicer or any of their successors and assigns.  In performing its functions and duties hereunder, each Purchaser Agent shall act solely as the agent of its respective Purchaser and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the Seller, the Servicer, any Sub-Servicer any other Purchaser, any other Purchaser Agent or the Administrator, or any of their respective successors and assigns.
		
	(b)
	Delegation of Duties.  The Administrator may execute any of its duties through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all 

	
			
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matters pertaining to such duties.  The Administrator shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.
		
	(c)
	Exculpatory Provisions.  None of the Purchaser Agents, the Administrator or any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted (i) with the consent or at the direction of the Majority Purchaser Agents (or in the case of any Purchaser Agent, the Purchasers within its Purchaser Group that have a majority of the aggregate Commitment of such Purchaser Group) or (ii) in the absence of such Person’s gross negligence or willful misconduct.  The Administrator shall not be responsible to any Purchaser, Purchaser Agent or other Person for (i) any recitals, representations, warranties or other statements made by the Seller, the Servicer, any Sub-Servicer, any Originator or any of their Affiliates, (ii) the value, validity, effectiveness, genuineness, enforceability or sufficiency of any Transaction Document, (iii) any failure of the Seller, the Servicer, any Sub-Servicer, any Originator or any of their Affiliates to perform any obligation hereunder or under the other Transaction Documents to which it is a party (or under any Contract), or (iv) the satisfaction of any condition specified in Exhibit II.  The Administrator shall not have any obligation to any Purchaser or Purchaser Agent to ascertain or inquire about the observance or performance of any agreement contained in any Transaction Document or to inspect the properties, books or records of the Seller, the Servicer, any Sub-Servicer, any Originator or any of their respective Affiliates.

		
	(d)
	Reliance by Agents.

(i)    Each Purchaser Agent and the Administrator shall in all cases be entitled to rely, and shall be fully protected in relying, upon any document or other writing or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person and upon advice and statements of legal counsel (including counsel to the Seller or the Servicer), independent accountants and other experts selected by the Administrator.  Each Purchaser Agent and the Administrator shall in all cases be fully justified in failing or refusing to take any action under any Transaction Document unless it shall first receive such advice or concurrence of the Majority Purchaser Agents (or in the case of any Purchaser Agent, the Purchasers within its Purchaser Group that have a majority of the aggregate Commitment of such Purchaser Group), and assurance of its indemnification, as it deems appropriate.
(ii)    The Administrator shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Majority Purchaser Agents or the Purchaser Agents, and such request and any action taken or failure to act pursuant thereto shall be binding upon all Purchasers, the Administrator and Purchaser Agents.
(iii)    The Purchasers within each Purchaser Group with a majority of the Commitment of such Purchaser Group shall be entitled to request or direct the related 

	
			
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Purchaser Agent to take action, or refrain from taking action, under this Agreement on behalf of all of the Purchasers within such Purchaser Group.  Each Purchaser Agent also shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Majority Purchaser Agents, and such request and any action taken or failure to act pursuant thereto shall be binding upon all of such Purchaser Agent’s Purchasers.
(iv)    Unless otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose behalf such Purchaser Agent is purportedly acting, each party to this Agreement may assume that (i) such Purchaser Agent is acting for the benefit of each of the Purchasers in respect of which such Purchaser Agent is identified as being the “Purchaser Agent” in the definition of “Purchaser Agent” hereto, as well as for the benefit of each assignee or other transferee from any such Person, and (ii) each action taken by such Purchaser Agent has been duly authorized and approved by all necessary action on the part of the Purchasers on whose behalf it is purportedly acting.  Each Purchaser Agent and its Purchaser(s) shall agree amongst themselves as to the circumstances and procedures for removal, resignation and replacement of such Purchaser Agent.  Each Purchaser shall promptly notify the Seller, the Servicer and the Administrator in writing of any removal, resignation or replacement of such Purchaser’s Purchaser Agent.
		
	(e)
	Notice of Termination Events.  Neither any Purchaser Agent nor the Administrator shall be deemed to have knowledge or notice of the occurrence of any Termination Event or Unmatured Termination Event unless such Purchaser Agent or the Administrator, as applicable, has received notice from any Purchaser, Purchaser Agent, the Servicer, any Sub-Servicer or the Seller stating that a Termination Event or an Unmatured Termination Event has occurred hereunder and describing such Termination Event or Unmatured Termination Event.  In the event that the Administrator receives such a notice, it shall promptly give notice thereof to each Purchaser Agent whereupon each such Purchaser Agent shall promptly give notice thereof to its related Purchasers.  In the event that a Purchaser Agent receives such a notice (other than from the Administrator), it shall promptly give notice thereof to the Administrator.  The Administrator shall take such action concerning a Termination Event or an Unmatured Termination Event as may be directed by the Majority Purchaser Agents (unless such action otherwise requires the consent of all Purchasers, the LC Bank and/or the Required LC Participants), but until the Administrator receives such directions, the Administrator may (but shall not be obligated to) take such action, or refrain from taking such action, as the Administrator deems advisable and in the best interests of the Purchasers and the Purchaser Agents.

		
	(f)
	Non-Reliance on Administrator, Purchaser Agents and Other Purchasers.  Each Purchaser expressly acknowledges that none of the Administrator, the Purchaser Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the Administrator, or any Purchaser Agent hereafter taken, including any review of the affairs of the Seller, the Servicer, any Sub-Servicer, any Originator or any of 

	
			
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their respective Affiliates, shall be deemed to constitute any representation or warranty by the Administrator or such Purchaser Agent, as applicable.  Each Purchaser represents and warrants to the Administrator and the Purchaser Agents that, independently and without reliance upon the Administrator, Purchaser Agents or any other Purchaser and based on such documents and information as it has deemed appropriate, it has made and will continue to make its own appraisal of and investigation into the business, operations, property, prospects, financial and other conditions and creditworthiness of the Seller, the Servicer, the Sub-Servicers, the Originators and the Receivables and its own decision to enter into this Agreement and to take, or omit, action under any Transaction Document.  Except for items specifically required to be delivered hereunder, the Administrator shall not have any duty or responsibility to provide any Purchaser Agent or any Purchaser with any information concerning the Seller, the Servicer, the Sub-Servicers, the Originators or any of their Affiliates that comes into the possession of the Administrator or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.
		
	(g)
	Administrators and Affiliates.  Each of the Purchasers, the Purchaser Agents and the Administrator and any of their respective Affiliates may extend credit to, accept deposits from and generally engage in any kind of banking, trust, debt, entity or other business with the Seller, the Servicer, any Sub-Servicer, any Originator or any of their Affiliates.  With respect to the acquisition of the Eligible Receivables pursuant to this Agreement, each of the Purchaser Agents and the Administrator shall have the same rights and powers under this Agreement as any Purchaser and may exercise the same as though it were not such an agent, and the terms “Purchaser” and “Purchasers” shall include, to the extent applicable, each of the Purchaser Agents and the Administrator in their individual capacities.

		
	(h)
	Indemnification.  Each LC Participant and Committed Purchaser shall indemnify and hold harmless the Administrator (solely in its capacity as Administrator) and the LC Bank (solely in its capacity as LC Bank) and their respective officers, directors, employees, representatives and agents (to the extent not reimbursed by the Seller, the Servicer, any Sub-Servicer or any Originator and without limiting the obligation of the Seller, the Servicer, any Sub-Servicer or any Originator to do so), ratably (based on its Commitment) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, settlements, costs, expenses or disbursements of any kind or nature whatsoever (including in connection with any investigative or threatened proceeding, whether or not the Administrator, the LC Bank or such Person shall be designated a party thereto) that may at any time be imposed on, incurred by or asserted against the Administrator, the LC Bank or such Person as a result of, or related to, any action taken or omitted by the Administrator or the LC Bank under the Transaction Documents, any of the transactions contemplated by the Transaction Documents or the execution, delivery or performance of the Transaction Documents or any other document furnished in connection therewith (but excluding any such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, settlements, costs, expenses or 

	
			
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disbursements resulting solely from the gross negligence or willful misconduct of the Administrator, the LC Bank or such Person as determined by a final non-appealable judgment of a court of competent jurisdiction).  Without limiting the generality of the foregoing, each LC Participant agrees to reimburse the Administrator and the LC Bank, ratably according to its Pro Rata Share, promptly upon demand, for any out of pocket expenses (including reasonable counsel fees) incurred by the Administrator or the LC Bank in connection with the administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of, its rights and responsibilities under this Agreement.
		
	(i)
	Successor Administrator.  The Administrator may, upon at least thirty (30) days’ notice to the Seller, the Servicer and each Purchaser Agent, resign as Administrator.  Such resignation shall not become effective until a successor Administrator is appointed by the Majority Purchaser Agents, with the consent of the Seller (which consent shall not be unreasonably withheld or delayed and which consent shall not be required if a Termination Event shall have occurred and is continuing), and has accepted such appointment.  Upon such acceptance of its appointment as Administrator hereunder by a successor Administrator, such successor Administrator shall succeed to and become vested with all the rights and duties of the retiring Administrator, and the retiring Administrator shall be discharged from its duties and obligations under the Transaction Documents.  After any retiring Administrator’s resignation hereunder, the provisions of Sections 3.1 and 3.2 and this Section 4.7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrator.

		
	(j)
	UCC Filings.  Each of the Seller, the Purchaser Agents and the Purchasers expressly recognizes and agrees that the Administrator may be listed as the assignee or secured party of record on the various UCC filings required to be made hereunder in order to perfect the sale of the Purchased Assets from the Seller to the Purchasers, that such listing shall be for administrative convenience only in creating a record or nominee owner to take certain actions hereunder on behalf of the Purchasers and that such listing will not affect in any way the status of the Purchasers as the owners of the Purchased Assets.  In addition, such listing shall impose no duties on the Administrator other than those expressly and specifically undertaken in accordance with this clause (j).

ARTICLE V.     
MISCELLANEOUS
		
	Section 5.1
	Amendments, Etc.

		
	(a)
	Subject to clause (b) of this Section, no amendment or waiver of any provision of this Agreement or any other Transaction Document, or consent to any departure by the Seller, the Servicer or any Sub-Servicer therefrom, shall be effective unless in a writing signed by the Administrator, the LC Bank, the Majority Purchaser Agents 

	
			
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and the Majority LC Participants; provided, however, that no such amendment shall (i) decrease the outstanding amount of, or extend the repayment of or any scheduled payment date for the payment of, any Discount in respect of any Portion of Capital or any Fees owed to a Purchaser without the prior written consent of such Purchaser; (ii) forgive or waive or otherwise excuse any repayment of Capital without the prior written consent of each Purchaser affected thereby; (iii) increase the Commitment of any Purchaser without its prior written consent; (iv) amend or modify the Pro Rata Share of any LC Participant without its prior written consent; (v) amend or modify the provisions of this Section 5.1 or the definition of “Majority Purchaser Agents”, “Majority LC Participants” or “Required LC Participants” without the prior written consent of all Purchaser Agents, the LC Bank and all LC Participants; (vi) waive any Termination Event arising from an Event of Bankruptcy with respect to Seller, the Servicer, any Sub-Servicer or any Originator; (vii) without the prior written consent of all Purchasers affected thereby, extend the Facility Termination Date or waive, amend or otherwise modify the definition of Facility Termination Date; (viii) amend, modify or otherwise affect the rights or duties of the Administrator, any Purchaser Agent or the LC Bank hereunder without the prior written consent of the Administrator, such Purchaser Agent or the LC Bank, as the case may be; and (ix) amend, waive or modify any definition or provision expressly requiring the consent of the Required LC Participants without the prior written consent of the LC Bank and the Required LC Participants, and, in the case of any amendment, by the other parties thereto; and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  No failure on the part of the Administrator, any Purchaser Agent or any Purchaser to exercise, and no delay in exercising any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.
		
	(b)
	At any time during the thirty (30) days following the date on which the Administrator completes its review of the results of an audit described in Section 5.4, Section 1(h) of Exhibit IV to this Agreement or Section 2(f) of Exhibit IV to this Agreement (such audit, a “Field Examination”), the consent of the Seller, the Servicer or any Sub-Servicer shall not be required for any amendment to the definitions of “Net Receivables Pool Balance”, “Eligible Receivables”, “Total Reserves” or any of their components if such amendment is deemed necessary by the Administrator in its sole and reasonable discretion after consultation with the Servicer in order to adjust such definitions and their components to meet the credit standards applied by the Administrator and the Purchasers when they entered into this Agreement in connection with any changes in the composition or characteristics (including, without limitation, credit quality, dilution and loss experience, tenor and terms) of the Pool Receivables since the preceding Field Examination.  The Administrator agrees to provide a copy of the final results of the Field Examination to the Servicer within two (2) Business Days of its receipt thereof.    

	
			
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	Section 5.2
	Notices, Etc.

All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (including facsimile or electronic mail communication) and shall be personally delivered or sent by facsimile or electronic mail, or by overnight mail, to the intended party at the mailing address, e-mail address or facsimile number of such party set forth on Schedule VI hereto (or in any other document or agreement pursuant to which it is or became a party hereto), or at such other mailing address, e-mail address or facsimile number as shall be designated by such party in a written notice to the other parties hereto.  All such notices and communications shall be effective (i) if delivered by overnight mail, when received, and (ii) if transmitted by facsimile or electronic mail, when sent, receipt confirmed by telephone or electronic means.
		
	Section 5.3
	Successors and Assigns; Assignability; Participations.

		
	(a)
	Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Except as otherwise provided in Section 4.1(d), neither the Seller nor the Servicer may assign or transfer any of its rights or delegate any of its duties hereunder or under any Transaction Document without the prior consent of the Administrator, the LC Bank, the Required LC Participants and the Purchaser Agents.

		
	(b)
	Participations.  (i) Except as otherwise specifically provided herein, any Purchaser may sell to one or more Persons (each a “Participant”) participating interests in the interests of such Purchaser hereunder.  Such Purchaser shall remain solely responsible for performing its obligations hereunder, and the Seller, the Servicer, each Purchaser Agent and the Administrator shall continue to deal solely and directly with such Purchaser in connection with such Purchaser’s rights and obligations hereunder.  A Purchaser shall not agree with a Participant to restrict such Purchaser’s right to agree to any amendment or waiver of this Agreement or any other Transaction Document, except such amendments or waivers that require the consent of all Purchasers; provided, that no such agreement between any Purchaser and any such Participant shall be binding upon the other parties hereto.  (ii) Notwithstanding anything contained in paragraph (a) or clause (i) of paragraph (b) of this Section 5.3, each of the LC Bank and each LC Participant may sell participations in all or any part of any Investment made by such LC Participant to another bank or other entity so long as (i) no such sale of a participation shall, without the consent of the Seller, require the Seller to file a registration statement with the SEC and (ii) no holder of any such participation shall be entitled to require such LC Participant to take or omit to take any action hereunder except that such LC Participant may agree with such participant that, without such Participant’s consent, such LC Participant will not consent to an amendment, modification or waiver referred to in Section 5.1.  Any such Participant shall not have any rights hereunder or under the Transaction Documents.  Each Purchaser that sells a participation shall, acting solely for this purpose as an agent of the Seller, maintain a register on which it enters the name and address of each Participant and the Purchases (and Discount, fees and other similar 

	
			
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amounts under this Agreement) of each Participant’s interest in the interests of such Purchaser under the Transaction Documents (the “Participant Register”); provided that no Purchaser 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 interest of a Purchaser hereunder or other obligations under any Transaction Document) to any Person except to the extent that such disclosure is necessary to establish that such interest 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 Purchaser 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 Administrator (in its capacity as the Administrator) shall have no responsibility for maintaining a Participant Register.
		
	(c)
	Assignments by Certain Committed Purchasers.  Any Committed Purchaser may assign to one or more Persons (each a “Purchasing Committed Purchaser”), reasonably acceptable to the Administrator, the LC Bank and the related Purchaser Agent in its sole discretion, any portion of its Commitment (which shall be inclusive of its Commitment as an LC Participant) pursuant to a supplement hereto, substantially in the form of Annex G with any changes as are reasonably acceptable to the Administrator (each, a “Transfer Supplement”), executed by each such Purchasing Committed Purchaser, such selling Committed Purchaser, such related Purchaser Agent and the Administrator and with the consent of the Seller (provided, that the consent of the Seller shall not be unreasonably withheld or delayed and that no such consent shall be required if a Termination Event or Unmatured Termination Event has occurred and is continuing; provided, further, that no consent of the Seller shall be required if the assignment is made by any Committed Purchaser to the Administrator, to any Purchaser Agent, to any other Committed Purchaser, to any Affiliate of the Administrator or any Committed Purchaser, to any Program Support Provider or any Person which (i) is in the business of issuing commercial paper notes and (ii) is associated with or administered by the Administrator or any Affiliate of the Administrator).  Any such assignment by Committed Purchaser may not be for an amount less than $10,000,000.  Upon (i) the execution of the Transfer Supplement, (ii) delivery of an executed copy thereof to the Seller, the Servicer, such related Purchaser Agent and the Administrator and (iii) payment by the Purchasing Committed Purchaser to the selling Committed Purchaser of the agreed purchase price, if any, such selling Committed Purchaser shall be released from its obligations hereunder to the extent of such assignment and such Purchasing Committed Purchaser shall for all purposes be a Committed Purchaser party hereto and shall have all the rights and obligations of a Committed Purchaser hereunder to the same extent as if it were an original party hereto.  The amount of the Commitment of the selling Committed Purchaser allocable to such Purchasing Committed Purchaser shall be equal to the amount of the Commitment of the selling Committed Purchaser transferred regardless of the purchase price, if any, paid therefor.

	
			
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	(d)
	Assignments to Liquidity Banks and other Program Support Providers.  Any Conduit Purchaser may at any time grant to one or more of its Liquidity Banks or other Program Support Providers, interests in its portion of the Purchased Assets.  In the event of any such grant by such Conduit Purchaser of an interest to a Liquidity Bank or other Program Support Provider, such Conduit Purchaser shall remain responsible for the performance of its obligations hereunder.  The Seller agrees that each Liquidity Bank and Program Support Provider of any Conduit Purchaser hereunder shall be entitled to the benefits of Sections 1.9 and 1.10.

		
	(e)
	Other Assignment by Conduit Purchasers.  Each party hereto agrees and consents (i) to any Conduit Purchaser’s assignment, grant of security interests in or other transfers of any portion of its interest in the Purchased Assets, including without limitation to any collateral agent in connection with its commercial paper program and (ii) to the complete assignment by any Conduit Purchaser of all of its rights and obligations hereunder to any other Person, and upon such assignment such Conduit Purchaser shall be released from all obligations and duties, if any, hereunder; provided, that such Conduit Purchaser may not, without the prior consent of its Committed Purchasers, make any such transfer of its rights hereunder unless the assignee (i) is principally engaged in the purchase of assets similar to the assets being purchased hereunder, (ii) has as its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and (iii) issues commercial paper or other Notes with credit ratings substantially comparable to the ratings of the assigning Conduit Purchaser.  Any assigning Conduit Purchaser shall deliver to any assignee a Transfer Supplement with any changes as have been approved by the parties thereto, duly executed by such Conduit Purchaser, assigning any portion of its interest in the Purchased Assets to its assignee.  Such Conduit Purchaser shall promptly (i) notify each of the other parties hereto of such assignment and (ii) take all further action that the assignee reasonably requests in order to evidence the assignee’s right, title and interest in such interest in the Purchased Assets and to enable the assignee to exercise or enforce any rights of such Conduit Purchaser hereunder.  Upon the assignment of any portion of its interest in the Purchased Assets, the assignee shall have all of the rights hereunder with respect to such interest (except that the Discount therefor shall thereafter accrue at the rates determined with respect to the assigning Conduit Purchaser unless the Seller, the related Purchaser Agent and the assignee shall have agreed upon a different Discount).

		
	(f)
	Opinions of Counsel.  If required by the Administrator or the applicable Purchaser Agent, each Transfer Supplement or other assignment and acceptance agreement must be accompanied by an opinion of counsel of the assignee as to such matters as the Administrator or such Purchaser Agent may reasonably request.

		
	(g)
	In addition to the foregoing and notwithstanding any otherwise applicable limitations on, or requirements for, pledges, assignments and participations set forth in this Section 5.3, any Purchaser may pledge, participate or assign any of its rights (including, without limitation, rights to payment of Capital and Discount) 

	
			
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under this Agreement or the other Transaction Documents to any Federal Reserve Bank (including any grant of a security interest in such rights to secure such Purchaser’s obligations to such Federal Reserve Bank) without notice to or consent of any other party to this Agreement or to the other Transaction Documents; provided that no such pledge, participation or assignment shall release such Purchaser from any of its obligations hereunder or substitute any such pledge, participant or assignee for such Purchaser as a party hereto.
		
	Section 5.4
	Costs, Expenses and Taxes.

		
	(a)
	In addition to the rights of indemnification granted under Sections 1.21 and 3.1, the Seller agrees to pay on demand (which demand shall be accompanied by documentation thereof in reasonable detail) all reasonable costs and expenses in connection with the preparation, execution, delivery and administration (including periodic internal audits by the Administrator of Pool Receivables, provided that at any time when no Termination Event exists and is continuing, the Seller shall not be required to pay the costs and expenses of more than two such audits per year) of this Agreement, the other Transaction Documents and the other documents and agreements to be delivered hereunder (and all reasonable costs and expenses in connection with any amendment, waiver or modification of any thereof), including:  (i) Attorney Costs for the Administrator, the Purchaser Agents, the Purchasers and their respective Affiliates and agents with respect thereto and with respect to advising the Administrator, the Purchaser Agents, the Purchasers and their respective Affiliates and agents as to their rights and remedies under this Agreement and the other Transaction Documents, (ii) fees, costs and expenses payable by the Conduit Purchasers or their Affiliates to any nationally recognized statistical rating agency in connection with the transactions contemplated by the Transaction Documents and (iii) all reasonable costs and expenses (including Attorney Costs), if any, of the Administrator, the Purchaser Agents, the Purchasers and their respective Affiliates and agents in connection with the enforcement of this Agreement and the other Transaction Documents.

(b)    
(i)    The Seller agrees that any and all payments by the Seller under this Agreement shall be made free and clear of and without deduction for any and all current or future taxes, stamp or other taxes, levies, imposts, deductions, charges or withholdings, and all penalties, interest and other liabilities with respect thereto (collectively, “Taxes”), except as required by Applicable Law.  If the Seller shall be required by Applicable Law to withhold or deduct any Taxes from or in respect of any sum payable hereunder to any Recipient (as determined in the good faith discretion of the Seller or the Administrator) and such Tax is an Indemnified Tax, then the sum payable shall be increased by the amount necessary to yield to such Recipient (after payment of all Taxes) an amount equal to the sum it would have received had no such withholding or deductions been made. Whenever any taxes are payable by the Seller, the Seller agrees that, as promptly as possible thereafter, the Seller shall send to the Administrator for its own account or for the account 

	
			
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of any Purchaser or Purchaser Agent a certified copy of an original official receipt showing payment thereof or such other evidence of such payment as may be available to the Seller and acceptable to the taxing authorities having jurisdiction over such Recipient. If any such Recipient pays or is liable for any Indemnified Taxes, the Seller shall reimburse such Recipient for that payment or indemnify such Recipient for such liability, as applicable (increased in either case by Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section), within 10 days after demand therefor, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant tax authority.  A certificate as to the amount of such payment or liability delivered to the Seller by a Purchaser or Purchaser Agent (with a copy to the Administrator), or by the Administrator on its own behalf or on behalf of a Purchaser or Purchaser Agent, shall be conclusive absent manifest error.  If the Seller fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Administrator the required receipts or other required documentary evidence, the Seller shall indemnify the Administrator and/or any other Affected Person, as applicable, for any Indemnified Taxes that may become payable by such party as a result of any such failure.
(ii)     Any Recipient that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Transaction Document shall deliver to the Servicer (on behalf of the Seller), at the time or times reasonably requested by the Seller or the Administrator and at the time or times required by Applicable Law, such properly completed and executed documentation reasonably requested by the Servicer as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Recipient, if reasonably requested by the Servicer, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by such Recipient as will enable the Servicer to determine whether or not such Recipient 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 5.4(b)(ii)(A), (B) and (D)) shall not be required if in the Recipient’s reasonable judgment such completion, execution or submission would subject such Recipient to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Recipient.  Without limiting the generality of the foregoing,
(A)    any Recipient that is a “United States Person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to the Servicer and the Administrator on or prior to the date on which such Purchaser becomes a Purchaser under this Agreement (and from time to time thereafter upon the reasonable request of the Servicer or the Administrator and at the time or times required by Applicable Law), executed copies of IRS Form W-9 certifying that such Recipient is exempt from U.S. federal backup withholding tax; 
(B)     any Recipient that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall, to the extent it is legally entitled to do so, deliver to the Servicer and the Administrator (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Recipient becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of the Seller or the Administrator and at the time or times required by Applicable Law),

	
			
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(1)    in the case of a Recipient 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 Transaction Document, executed copies of IRS Form W-8BEN or W-8BEN-E, as applicable, 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 or W-8BEN-E, as applicable, 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 copies of IRS Form W-8ECI;
(3)    in the case of a Recipient claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such Recipient is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of Peabody within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and (y) executed copies of IRS Form W-8BEN or W-8BEN-E, as applicable; or
(4)    to the extent a Recipient is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, as applicable, certifications as to the matters in Section 5.4(b)(ii)(B)(3) on its own behalf and on behalf of its direct or indirect partners claiming the portfolio interest exemption, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable;
(C)     any Recipient shall, to the extent it is legally entitled to do so, deliver to the Seller and the Administrator (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Recipient becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of the Seller or the Administrator and at the time or times required by Applicable Law), executed copies 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 Servicer or the Administrator to determine the withholding or deduction required to be made; and
(D)     if a payment made to a Recipient under any Transaction Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Recipient 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 Recipient shall deliver to the Servicer and the Administrator at the time or times prescribed by Applicable and at such time or times reasonably requested by the Servicer or the Administrator such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Seller or the Administrator as may be necessary for the Seller and the Administrator to comply with their obligations under FATCA and to determine that such Recipient has complied with such Recipient’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 5.4(b)(ii)(D), “FATCA” shall include any amendments made to FATCA after the 

	
			
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date of this Agreement.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Closing Date, the Seller and the Administrator shall treat (and the Purchasers hereby authorize the Administrator to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).
(E)    Each Recipient 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 Seller and the Administrator in writing of its legal inability to do so.
(iii)    The Seller shall pay on demand any and all stamp and other taxes and fees payable in connection with the execution, delivery, filing and recording of this Agreement or the other documents or agreements to be delivered hereunder, and shall save each Indemnified Party harmless from and against any liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees.
(iv)    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 indemnified pursuant to this Section 5.4(b) (including by the payment of additional amounts pursuant to this Section 5.4(b)), 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 5.4(b) 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 taxing authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this Section 5.4(b)(iii) (plus any penalties, interest or other charges imposed by the relevant taxing authority) in the event that such indemnified party is required to repay such refund to such taxing authority.  Notwithstanding anything to the contrary in this Section 5.4(b)(iii), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 5.4(b)(iii) 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.
(v)    If any Recipient requests compensation under Section 1.10, or requires the Seller to pay any Indemnified Taxes or additional amounts to any Recipient or any taxing authority for the account of any Recipient pursuant to this Section 5.4(b), then such Recipient shall (at the request of the Seller) use reasonable efforts to designate a different lending office for funding or booking its Investments hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Recipient, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 1.10 or this Section 5.4(b), as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Recipient.  The Seller hereby 

	
			
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agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(vi)    The Administrator, on Seller’s behalf, shall maintain a register for the recordation of the names and addresses of the Purchasers, and the Investments (and Discount, fees and other similar amounts under this Agreement) pursuant to the terms hereof from time to time (the “Register”), including any participant and/or assignee. The entries in the Register shall be conclusive absent manifest error, and to the extent applicable, the parties hereto shall treat each person whose name is recorded in the Register pursuant to the terms hereof as a lender solely for U.S. federal income tax purposes. The Register shall be available for inspection by the Purchaser, from time to time upon reasonable prior notice.
		
	Section 5.5
	No Proceedings; Limitation on Payments.

Each of the Seller, Peabody, the Servicer, the Administrator, each Purchaser Agent, the Purchasers and each assignee of the Purchased Assets or any interest therein, and each Person that enters into a commitment to purchase or make Investments in the Purchased Assets or any interest therein, hereby covenants and agrees that it will not institute against, or join any other Person in instituting against, any Conduit Purchaser any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after the latest maturing Note issued by such Conduit Purchaser is paid in full.  The provision of this Section 5.5 shall survive any termination of this Agreement.
		
	Section 5.6
	Confidentiality.

Each of the Seller and the Servicer agrees to maintain the confidentiality of this Agreement and the other Transaction Documents (and all drafts thereof) in communications with third parties and otherwise; provided, that this Agreement and the other Transaction Documents may be disclosed to:  (a) third parties to the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory to the Administrator, (b) the Seller’s legal counsel and auditors if they agree to hold it confidential, and (c) as otherwise required by Applicable Law (including applicable SEC requirements); and provided, further, however, that the Seller and the Servicer may disclose this Agreement and the other Transaction Documents (other than the Fee Letters or any such Transaction Document that discloses the Fees) to other financial institutions and their affiliates in connection with a replacement of the receivables securitization facility represented by this Agreement and the other Transaction Documents with a new receivables securitization facility.  The Seller and the Servicer shall cause any financial institution and its affiliates described in the foregoing proviso to maintain the confidentiality of the Transaction Documents in accordance with the Seller’s and the Servicer’s obligations under this Section 5.6; provided, however, that any such financial institution and its affiliates may disclose this Agreement and the other Transaction Documents it receives in accordance with the immediately preceding sentence to their legal counsel and auditors if they agree to hold them confidential and to any regulatory authorities having jurisdiction over such financial institution or its affiliates.  Unless otherwise required by Applicable Law, each of the Administrator, the Purchaser Agents and the Purchasers agrees to maintain the confidentiality of non-public financial information regarding Peabody and its Subsidiaries and Affiliates; provided, that such information may be disclosed to:  

	
			
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(i) third parties to the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory to Peabody, (ii) legal counsel and auditors of the Administrator, the Purchaser Agents and the Purchasers if they agree to hold it confidential, (iii) the rating agencies rating the Notes, (iv) any Program Support Provider or potential Program Support Provider (if they agree to hold it confidential), (v) any placement agent placing the Notes (if they agree to hold it confidential) and (vi) any regulatory authorities having jurisdiction over PNC, any Purchaser Agent, any Purchaser or any Program Support Provider.
		
	Section 5.7
	GOVERNING LAW AND JURISDICTION.

		
	(a)
	THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

		
	(b)
	ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.  EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

		
	Section 5.8
	Execution in Counterparts.

This Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original, and all of which, when taken together, shall constitute one and the same agreement.
		
	Section 5.9
	Survival of Termination; Non-Waiver.

The provisions of Sections 1.9, 1.10, 1.21, 1.22, 3.1, 3.2, 4.7, 5.4, 5.5, 5.6, 5.7, 5.10 and 5.14 shall survive any termination of this Agreement. 

	
			
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	Section 5.10
	WAIVER OF JURY TRIAL.

EACH OF THE PARTIES HERETO WAIVES THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE.  EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.
		
	Section 5.11
	Entire Agreement.

This Agreement and the other Transaction Documents embody the entire agreement and understanding between the parties hereto, and supersede all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof.
		
	Section 5.12
	Headings.

The captions and headings of this Agreement and any Exhibit, Schedule or Annex hereto are for convenience of reference only and shall not affect the interpretation hereof or thereof.
		
	Section 5.13
	Sharing of Recoveries.  

Each Purchaser agrees that if it receives any recovery, through set-off, judicial action or otherwise, on any amount payable or recoverable hereunder in a greater proportion than should have been received hereunder or otherwise inconsistent with the provisions hereof (including, without limitation, Section 1.8(a) hereof), then the recipient of such recovery shall purchase for cash an interest in amounts owing to the other Purchasers (as return of Capital or otherwise), without representation or warranty except for the representation and warranty that such interest is being sold by each such other Purchaser free and clear of any Adverse Claim created or granted by such other Purchaser, in the amount necessary to create proportional participation by the Purchaser in such recovery.  If all or any portion of such amount is thereafter recovered from the recipient, such purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest.

	
			
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	Section 5.14
	Purchaser Groups’ Liabilities.

The obligations of each Purchaser Agent and each Purchaser under the Transaction Documents are solely the corporate obligations of such Person.  Except with respect to any claim arising out of the willful misconduct or gross negligence of the Administrator, any Purchaser Agent or any Purchaser, no claim may be made by the Seller or the Servicer or any other Person against the Administrator, any Purchaser Agent or any Purchaser or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any other Transaction Document or any act, omission or event occurring in connection therewith; and each of Seller and Servicer hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.
		
	Section 5.15
	Right of Setoff.

Each Purchaser is hereby authorized (in addition to any other rights it may have) to setoff, appropriate and apply (without presentment, demand, protest or other notice which are hereby expressly waived) any deposits and any other indebtedness held or owing by such Purchaser (including by any branches or agencies of such Purchaser) to, or for the account of, (i) the Seller against amounts owing by the Seller hereunder (even if contingent or unmatured) and (ii) the Servicer against amounts owing by the Servicer hereunder (even if contingent or unmatured).
		
	Section 5.16
	USA Patriot Act.  

Each of the Administrator and each of the other Purchasers hereby notifies the Seller, the Servicer and each Sub-Servicer that pursuant to the requirements of the USA Patriot Act, the Administrator and the other Purchasers may be required to obtain, verify and record information that identifies the Seller, the Originators, the Contributor, the Servicer, the Sub-Servicer and the Performance Guarantor, which information includes the name, address, tax identification number and other information regarding the Seller, the Originators, the Contributor, the Servicer, the Sub-Servicer and the Performance Guarantor that will allow the Administrator and the other Secured Parties to identify the Seller, the Originators, the Contributor, the Servicer, the Sub-Servicer and the Performance Guarantor in accordance with the USA Patriot Act. This notice is given in accordance with the requirements of the USA Patriot Act.  Each of the Seller, the Servicer and Sub-Servicers agrees to provide the Administrator and each other Purchaser, from time to time, with all documentation and other information required by bank regulatory authorities under “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA Patriot Act.
		
	Section 5.17
	Severability.  

Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability 

	
			
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in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
		
	Section 5.18
	Mutual Negotiations.

This Agreement and the other Transaction Documents are the product of mutual negotiations by the parties thereto and their counsel, and no party shall be deemed the draftsperson of this Agreement or any other Transaction Document or any provision hereof or thereof or to have provided the same.  Accordingly, in the event of any inconsistency or ambiguity of any provision of this Agreement or any other Transaction Document, such inconsistency or ambiguity shall not be interpreted against any party because of such party’s involvement in the drafting thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	
			
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
THE SELLER:

P&L RECEIVABLES COMPANY, LLC,
as Seller

By:/s/ James A. Tichenor    
Name:  James A. Tichenor
Title:  Vice President & Treasurer

THE SERVICER:

PEABODY ENERGY CORPORATION,
as initial Servicer

By:    /s/ James A. Tichenor    
Name:  James A. Tichenor
Title:  Vice President & Treasurer

	
			
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	Amended and Restated
Receivables Purchase Agreement

THE SUB-SERVICERS:

PEABODY ARCLAR MINING, LLC;
PEABODY MIDWEST MINING, LLC;
TWENTYMILE COAL, LLC;
PEABODY CABALLO MINING, LLC;
COALSALES II, LLC;
PEABODY POWDER RIVER MINING, LLC;
PEABODY HOLDING COMPANY, LLC;
PEABODY BEAR RUN MINING, LLC;
PEABODY WILD BOAR MINING, LLC;
PEABODY GATEWAY NORTH MINING, LLC;
PEABODY COALTRADE, LLC; and
PEABODY COALSALES, LLC,
each, as a Sub-Servicer

By:    /s/ James A. Tichenor    
Name:  James A. Tichenor
Title:  Vice President & Treasurer of each of the foregoing Sub-Servicers

PEABODY WESTERN COAL COMPANY,
as a Sub-Servicer

By:    /s/ Douglas D. Loucks    
Name:  Douglas D. Loucks
Title:  Treasurer

	
			
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	2
	Fifth Amended and Restated
Receivables Purchase Agreement

PNC’S PURCHASER GROUP:

PNC BANK, NATIONAL ASSOCIATION,
as Purchaser Agent for its Purchaser Group and as Committed Purchaser

By:    /s/ Michael Brown    
Name:  Michael Brown
Title:   Senior Vice President

	
			
	719921903 05109795

	3
	Fifth Amended and Restated
Receivables Purchase Agreement

PNC BANK, NATIONAL ASSOCIATION,
as an LC Participant for its Purchaser Group and as the LC Bank

By:    /s/ Michael Brown    
Name: Michael Brown
Title: Senior Vice President

	
			
	719921903 05109795

	4
	Fifth Amended and Restated
Receivables Purchase Agreement

THE ADMINISTRATOR:

PNC BANK, NATIONAL ASSOCIATION,
as Administrator 

By:    /s/ Michael Brown    
Name: Michael Brown
Title: Senior Vice President

	
			
	719921903 05109795

	5
	Fifth Amended and Restated
Receivables Purchase Agreement

EXHIBIT I 
DEFINITIONS
As used in the Agreement (including its Exhibits, Schedules and Annexes), the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined).  Unless otherwise indicated, all Section, Annex, Exhibit and Schedule references in this Exhibit are to Sections of and Annexes, Exhibits and Schedules to the Agreement.
“Adjusted LC Participation Amount” means, at any time, the greater of (i) LC Participation Amount less the amount of cash collateral held in the LC Collateral Account at such time and (ii) zero ($0).
“Administration Account” means the account from time to time designated in writing by the Administrator to the Seller and the Servicer. 
“Administrator” has the meaning set forth in the preamble to the Agreement.
“Adverse Claim” means a lien, security interest or other charge or encumbrance, or any other type of preferential arrangement; it being understood that any thereof in favor of, or assigned to, the Administrator (for the benefit of the Purchasers) shall not constitute an Adverse Claim.
“Affected Person” has the meaning set forth in Section 1.9 of the Agreement.
“Affiliate” means, as to any Person:  (a) any Person that, directly or indirectly, is in control of, is controlled by or is under common control with such Person, or (b) who is a director or officer:  (i) of such Person or (ii) of any Person described in clause (a), except that, with respect to each Conduit Purchaser, Affiliate shall mean the holder(s) of its capital stock or membership interests, as the case may be.  For purposes of this definition, control of a Person shall mean the power, direct or indirect:  (x) to vote 25% or more of the securities having ordinary voting power for the election of directors or managers of such Person, or (y) to direct or cause the direction of the management and policies of such Person, in either case whether by ownership of securities, contract, proxy or otherwise.
“Aggregate Capital” means at any time the aggregate outstanding Capital of all Purchasers at such time.
“Aggregate Discount” at any time, means the sum of the aggregate for each Purchaser of the accrued and unpaid Discount with respect to each such Purchaser’s Capital at such time.
“Agreement” has the meaning set forth in the preamble to the Agreement.
“Alternate Rate” for any day or for any Portion of Capital on such day means an interest rate per annum equal to: (a) except as otherwise provided in clause (b) below and in the proviso to this definition, the Euro-Rate for such day or (b) when required pursuant to Section 1.11, the Base Rate in effect on such day; provided, that the “Alternate Rate” for any day while a Termination 

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Event exists shall be an interest rate equal to the greater of (i) 3.00% per annum above the Base Rate in effect on such day and (ii) the Euro-Rate on such day.
“Anti-Terrorism Laws” means any Applicable Law or regulation 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 Applicable Laws, all as amended, supplemented or replaced from time to time.
“Applicable Law” means, with respect to any Person, (x) all provisions of law, statute, treaty, constitution, ordinance, rule, regulation, ordinance, requirement, restriction, permit, executive order, certificate, decision, directive or order of any Governmental Authority applicable to such Person or any of its property and (y) all judgments, injunctions, orders, writs, decrees and awards of all courts and arbitrators in proceedings or actions in which such Person is a party or by which any of its property is bound.
“Assumption Agreement” means an agreement substantially in the form set forth in Annex F to this Agreement.
“Attorney Costs” means and includes all reasonable fees and disbursements of any law firm or other external counsel.
“Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C.  § 101, et seq.), as amended from time to time.
“Base Rate” means, for any day, a fluctuating interest rate per annum as shall be in effect from time to time, which rate shall be at all times equal to the higher of:
(a)    the rate of interest in effect for such day as publicly announced from time to time by the applicable Purchaser Agent (or the applicable Committed Purchaser or, in the case of determining the Base Rate for purposes of calculating the Yield Reserve, the Administrator) as its “reference rate” or “prime rate”, as applicable.  Such “reference rate” (or “prime rate”, as applicable) is set by the applicable Purchaser Agent (or the applicable Committed Purchaser or the Administrator) based upon various factors, including the applicable Purchaser Agent’s (or the applicable Committed Purchaser’s or the Administrator’s) costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above or below such announced rate; and
(b)    0.50% per annum above the latest Federal Funds Rate.
“Base Rate Portion of Capital” shall mean a Portion of Capital, the Discount with respect to which is calculated at a per annum rate based on the interest rate determined by reference to the Base Rate.

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“Benefit Plan” means any employee benefit pension plan as defined in Section 3(2) of ERISA in respect of which the Seller, any Originator, Peabody or any ERISA Affiliate is, or at any time during the immediately preceding six years was, an “employer” as defined in Section 3(5) of ERISA.
“Business Day” means any day (other than a Saturday or Sunday) on which:  (a) banks are not authorized or required to close in New York City, New York, or Pittsburgh, Pennsylvania and (b) if this definition of “Business Day” is utilized in connection with the Euro-Rate, dealings are carried out in the London interbank market.
“Capital” means, with respect to any Purchaser, the aggregate amount paid to (or for the benefit of) the Seller in respect of Investments by such Purchaser (including, without limitation, pursuant to Section 1.4(f)), as reduced from time to time by Collections distributed and applied on account of such Capital pursuant to Section 1.6(d) of the Agreement; provided, that if such Capital shall have been reduced by any distribution and thereafter all or a portion of such distribution is rescinded or must otherwise be returned for any reason, such Capital shall be increased by the amount of such rescinded or returned distribution as though it had not been made.
“Change in Control” means (a) Peabody ceases to own, directly or indirectly, 100% of the membership interests of the Seller free and clear of all Adverse Claims; (b) a “Change in Control” as defined in the Senior Notes Indenture; (c) with respect to any Material Originator, Peabody ceases to be the beneficial owner (as defined in Rules 13(d)-3 and 13(d)-5 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of at least 75% of the outstanding shares of voting securities of such Material Originator without the prior written consent of the Administrator, such consent not to be unreasonably withheld; or (d) Peabody ceases to have beneficial ownership (as defined in clause (c)), directly or indirectly, of 100% of the outstanding shares of voting securities of Peabody Holding Company, LLC.  For purposes of this definition, “Senior Notes Indenture” shall have the meaning assigned to such term in the Credit Agreement.
“Change in Law” means the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
“Closing Date” means March 25, 2016.
“Collections” means, with respect to any Pool Receivable:  (a) all funds that are received by any Originator, Peabody, the Seller or the Servicer in payment of any amounts owed in respect of such Receivable (including purchase price, finance charges, interest and all other charges), or 

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applied to amounts owed in respect of such Receivable (including insurance payments and net proceeds of the sale or other disposition of repossessed goods or other collateral or property of the related Obligor or any other Person directly or indirectly liable for the payment of such Pool Receivable and available to be applied thereon), (b) all amounts deemed to have been received pursuant to Section 1.6(e) of the Agreement and (c) all other proceeds of such Pool Receivable.
“Commitment” means, with respect to any Committed Purchaser, LC Participant or LC Bank, as applicable, the maximum aggregate amount which such Purchaser is obligated to pay hereunder on account of all Investments and all drawings under all Letters of Credit, on a combined basis, as set forth on Schedule V hereto or in the Assumption Agreement or other agreement pursuant to which it became a Purchaser, as such amount may be modified in connection with any subsequent assignment pursuant to Section 5.3(c) or in connection with a change in the Purchase Limit pursuant to Section 1.1(c).  As the context so requires, “Commitment” with respect to any Committed Purchaser, LC Participant or LC Bank, as applicable, shall also be deemed to include such Committed Purchaser’s, LC Participant’s or LC Bank’s obligation hereunder to make Investments, Reinvestments or participation advances to the LC Bank or, in the case of the LC Bank, to issue Letters of Credit, as applicable, on the terms and subject to the conditions set forth herein.
“Commitment Percentage” means, for each Committed Purchaser or related LC Participant in a Purchaser Group, the Commitment of such Committed Purchaser or related LC Participant, as the case may be, divided by the total of all Commitments of all Committed Purchasers or related LC Participants, as the case may be, in such Purchaser Group.
“Committed Purchaser” means each Person listed as such on the signature pages of this Agreement or in any Assumption Agreement or Transfer Supplement.
“Company Note” has the meaning set forth in Section 3.1 of the Sale Agreement.
“Concentration Percentage” means:  (a) for any Group A Obligor, 15%, (b) for any Group B Obligor, 12%, (c) for any Group C Obligor, 5.0% and (d) for any Group D Obligor, 3.0%.
“Concentration Reserve” means the product of (a) the Aggregate Capital plus the Adjusted LC Participation Amount, and (b)(i) the Concentration Reserve Percentage divided by (ii) 1 minus the Concentration Reserve Percentage.
“Concentration Reserve Percentage” means, at any time, the largest of: (a) the sum of the five (5) largest Obligor Percentages of the Group D Obligors at such time, (b) the sum of the three (3) largest Obligor Percentages of the Group C Obligors at such time, (c) the two (2) largest Obligor Percentage of the Group B Obligors at such time and (d) the one (1) largest Obligor Percentage of the Group A Obligors at such time.
“Conduit Purchaser” means each commercial paper conduit that is a party to this Agreement, as a purchaser, or that becomes a party to this Agreement, as a purchaser pursuant to an Assumption Agreement or otherwise.

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“Contract” means, with respect to any Receivable, any and all contracts, instruments, agreements, leases, invoices, notes or other writings pursuant to which such Receivable arises or that evidence such Receivable or under which an Obligor becomes or is obligated to make payment in respect of such Receivable.
 “Contribution Agreement” means that certain Contribution Agreement dated as of February 20, 2002 by and between the Contributor and the Seller, as the same may be amended from time to time.
“Contribution Indemnified Amounts” has the meaning set forth in Section 7.1 of the Contribution Agreement.
“Contribution Indemnified Party” has the meaning set forth in Section 7.1 of the Contribution Agreement.
“Contribution Termination Date” has the meaning set forth in Section 1.3 of the Contribution Agreement.
“Contribution Termination Event” has the meaning set forth in Section 6.1 of the Contribution Agreement.
“Contributor” means Peabody Energy Corporation, a Delaware corporation.
“Conveyed Assets” has the meaning set forth in Section 1.1 of the Sale Agreement.
“Covered Entity” means (a) the Seller, the Servicer, each Sub-Servicer, the Performance Guarantor, the Contributor and each Originator and (b) each Person that, directly or indirectly, is in control of a Person described in clause (a) above.  For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.
“CP Rate” means, for any Conduit Purchaser and for any Settlement Period for any Portion of Capital, (a) the per annum rate equivalent to the weighted average cost (as determined by the applicable Purchaser Agent and which shall include commissions of placement agents and dealers, incremental carrying costs incurred with respect to Notes of such Person maturing on dates other than those on which corresponding funds are received by such Conduit Purchaser, other borrowings by such Conduit Purchaser (other than under any Program Support Agreement) and any other costs associated with the issuance of Notes) of or related to the issuance of Notes that are allocated, in whole or in part, by the applicable Purchaser Agent to fund or maintain such Portion of Capital (and which may be also allocated in part to the funding of other assets of such Conduit Purchaser); provided, that if any component of such rate is a discount rate, in calculating the “CP Rate” for such Portion of Capital for such Settlement Period, the applicable Purchaser Agent shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent 

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rate per annum; provided, further, that notwithstanding anything in the Agreement or the other Transaction Documents to the contrary, the Seller agrees that any amounts payable to the Purchasers in respect of Discount for any Settlement Period with respect to any Portion of Capital funded by such Purchaser at the CP Rate shall include an amount equal to the portion of the face amount of the outstanding Notes issued to fund or maintain such Portion of Capital that corresponds to the portion of the proceeds of such Notes that was used to pay the interest component of maturing Notes issued to fund or maintain such Portion of Capital, to the extent that such Purchaser had not received payments of interest in respect of such interest component prior to the maturity date of such maturing Notes (for purposes of the foregoing, the “interest component” of Notes equals the excess of the face amount thereof over the net proceeds received by such Purchaser from the issuance of Notes, except that if such Notes are issued on an interest-bearing basis its “interest component” will equal the amount of interest accruing on such Notes through maturity) or (b) any other rate designated as the “CP Rate” for such Conduit Purchaser in an Assumption Agreement or Transfer Supplement pursuant to which such Person becomes a party as a Conduit Purchaser to this Agreement, or any other writing or agreement provided by such Conduit Purchaser to the Seller, the Servicer and the applicable Purchaser Agent from time to time.  Notwithstanding the foregoing, the “CP Rate” for any day while a Termination Event exists shall be an interest rate equal to the greater of (i) 3.00% above the Base Rate in effect on such day and (ii) the Alternate Rate as calculated in the definition thereof.
“Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of September 24, 2013, among Peabody, as the borrower, the several lenders and other parties from time to time parties thereto, and Citibank, N.A., as administrative agent, swing line lender and l/c issuer, as amended by that certain Omnibus Amendment Agreement, dated as of February 5, 2015, and shall include, except as otherwise expressly provided herein, such agreement as further amended, restated and/or otherwise modified from time to time in accordance with the terms thereof, and any extension, replacement, substitution, and/or refinancing thereof.
“Credit and Collection Policy” means, as the context may require, those receivables credit and collection policies and practices of the Originators in effect on the date of the Agreement and described in Schedule I to the Agreement, as modified in compliance with the Agreement.
“Cut-off Date” has the meaning set forth in the Sale Agreement.
“Days’ Sales Outstanding” means, at any time, an amount computed as of the last day of each calendar month equal to:  (a) the average of the Outstanding Balance of all Pool Receivables as of the last day of each of the three most recent calendar months ended on the last day of such calendar month divided by (b) (i) the aggregate credit sales made by the Originators during the three calendar months ended on or before the last day of such calendar month divided by (ii) 90.
“Debt” means:  (a) indebtedness for borrowed money, (b) obligations evidenced by bonds, debentures, notes or other similar instruments, (c) obligations to pay the deferred purchase price of property or services, (d) obligations as lessee under leases that shall have been or should be, in accordance with generally accepted accounting principles, recorded as capital leases, and (e) obligations under direct or indirect guaranties in respect of, and obligations (contingent or 

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otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (a) through (d) above.
“Declining Conduit Purchaser” has the meaning set forth in Section 1.6(b)(ii) of the Agreement.
“Declining Notice” has the meaning set forth in Section 1.6(b)(ii) of the Agreement.
“Defaulted Receivable” means a Receivable:
(a)    as to which any payment, or part thereof, remains unpaid for more than 60 days from the due date for such payment (which shall be determined without regard to any credit memos or credit balances available to the Obligor); or
(b)    without duplication (i) as to which an Insolvency Proceeding shall have occurred with respect to the Obligor thereof or any other Person obligated thereon or owning any Related Security with respect thereto, or (ii) that has been written off the Seller’s books as uncollectible.
“Default Ratio” means the ratio (expressed as a percentage and rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each calendar month by dividing:  (a) the aggregate Outstanding Balance of all Pool Receivables that became Defaulted Receivables during such month (other than Receivables that became Defaulted Receivables as a result of an Event of Bankruptcy with respect to the Obligor thereof during such month), by (b) the aggregate credit sales made by the Originators during the month that is three calendar months before such month.
“Deferred Purchase Price” has the meaning set forth in Section 1.4(c) of the Agreement.
“Delinquency Ratio” means the ratio (expressed as a percentage and rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each calendar month by dividing:  (a) the aggregate Outstanding Balance of all Pool Receivables that were Delinquent Receivables on such day by (b) the aggregate Outstanding Balance of all Pool Receivables on such day.
“Delinquent Receivable” means a Receivable as to which any payment, or part thereof, remains unpaid for more than 60 days from the due date for such payment.
“Dilution Component Reserve” means at any time the product of (a) the sum of the Aggregate Capital and the Adjusted LC Participation Amount multiplied by (b) (i) the Dilution Component Reserve Percentage on such date divided by (ii) 100% minus the Dilution Component Reserve Percentage.
“Dilution Component Reserve Percentage” means on any date, the product of (a) the average Dilution Ratio for the twelve preceding calendar months multiplied by (b) the Dilution Horizon.

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“Dilution Horizon” means, for any calendar month, the ratio (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/l000th of 1% rounded upward) computed as of the last day of such calendar month of:  (a) the aggregate credit sales made by the Originators during the two most recent calendar months to (b) the Net Receivables Pool Balance at the last day of the most recent calendar month.
“Dilution Ratio” means the ratio (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward), computed as of the last day of each calendar month by dividing:  (a) the aggregate amount of payments required to be made by the Seller pursuant to Section 1.6(e)(i) of the Agreement during such calendar month by (b) the aggregate credit sales made by the Originators during the month that is one month prior to the current month.
“Dilution Reserve” means, on any date, an amount equal to:  (a) the sum of the Aggregate Capital plus the Adjusted LC Participation Amount at the close of business of the Seller on such date multiplied by (b) (i) the Dilution Reserve Percentage on such date, divided by (ii) 100% minus the Dilution Reserve Percentage on such date.
“Dilution Reserve Percentage” means on any date, the product of (i) the Dilution Horizon multiplied by (ii) the sum of (x) 2.50 times the average of the Dilution Ratio for the twelve most recent calendar months and (y) the Spike Factor.
“Discount” means, with respect to any Purchaser, the amount determined pursuant to the applicable formula below:
(a)    for any Portion of Capital of such Purchaser for any Settlement Period to the extent such Purchaser will be funding such Portion of Capital during such Settlement Period through the issuance of Notes:
CPR x C x (ED/360)
(b)    for any Portion of Capital of such Purchaser for any Settlement Period to the extent such Purchaser will not be funding such Portion of Capital during such Settlement Period through the issuance of Notes or, to the extent the LC Bank and/or any LC Participant has made an Investment in connection with any drawing under a Letter of Credit, which Investment accrues Discount pursuant to Section 1.4(f) of the Agreement:
TF + the sum of the following amounts calculated for each 
day in such Settlement Period:
AR x C x (1/Year)
where:
		
	AR
	=    the Alternate Rate for such Portion on such day;

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	C
	=    such Portion of Capital (i) for purposes of clause (a) above, for such Settlement Period, or (ii) for purposes of clause (b) above, on such day;

		
	CPR
	=    the CP Rate for such Portion of Capital for such Settlement Period;

		
	ED
	=    the actual number of days during such Settlement Period;

		
	Year
	=    if such Portion of Capital is funded based upon:  (i) the Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366 days, as applicable; and

		
	TF
	=    the Termination Fee, if any, for the Portion of Capital for such Settlement Period;

provided, that no provision of the Agreement shall require the payment or permit the collection of Discount in excess of the maximum permitted by Applicable Law; and provided further, that Discount for any Portion of Capital shall not be considered paid by any distribution to the extent that at any time all or a portion of such distribution is rescinded or must otherwise be returned for any reason.
“Drawing Date” has the meaning set forth in Section 1.16 of the Agreement.
“Eligible Assignee” means any bank or financial institution acceptable to the LC Bank and the Administrator.
“Eligible Foreign Obligor” means an Obligor which is a resident of any country (other than the United States) that has (i) a foreign currency rating of at least “A” by Standard and Poor’s and “A2” by Moody’s, and (ii) a transfer and convertibility assessment of at least “A” by Standard and Poor’s.
“Eligible Receivable” means, at any time, a Pool Receivable:
(a)the Obligor of which is (i) a United States resident or if such Obligor is not a United States resident: (A) such Pool Receivable results from goods sold and shipped from an Originator in the United States and payment for such goods is denominated and payable only in U.S. dollars to an Originator at a Lock-Box Account, and (B) such Obligor is an Eligible Foreign Obligor, (ii) not subject to any action of the type described in paragraph (f) of Exhibit V to the Agreement, (iii) not an Affiliate of Peabody or any other Originator, (iv) not a Sanctioned Obligor and (v) not an Obligor as to which the Administrator, in its reasonable business judgment, has notified the Seller that such Obligor is not acceptable,
(b)that is denominated and payable only in U.S. dollars in the United States to the Originator at a Lockbox Account,

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(c)that does not have a stated maturity which is more than 30 days after the original invoice date of such Receivable,
(d)that arises under a duly authorized Contract for the sale and delivery of goods or services in the ordinary course of the Originator’s business,
(e)that arises under a duly authorized Contract that is in full force and effect and that is a legal, valid and binding obligation of the related Obligor, enforceable against such Obligor in accordance with its terms,
(f)that conforms in all material respects with all Applicable Law in effect,
(g)that is not the subject of any asserted dispute, offset, hold back defense, Adverse Claim or other claim, provided, that, with respect to any Receivable which is subject to any such a claim, the amount of such Receivable which shall be treated as an Eligible Receivable shall equal the excess of the amount of such Receivable over the amount of such claim asserted by or available to the account party or other obligor,
(h)that satisfies all applicable requirements of the applicable Credit and Collection Policy,
(i)that has not been modified, waived or restructured since its creation, except as permitted pursuant to Section 4.2 of the Agreement,
(j)in which the Seller owns good and marketable title, free and clear of any Adverse Claims, and that is freely assignable by the Seller (including without any consent of the related Obligor),
(k)for which the Administrator (on behalf of the Purchasers) shall have a valid and enforceable ownership or security interest and a valid and enforceable first priority perfected ownership or security interest therein and in the Related Security and Collections with respect thereto, in each case free and clear of any Adverse Claim,
(l)that constitutes an account as defined in the UCC, and that is not evidenced by instruments or chattel paper,
(m)that is neither a Defaulted Receivable nor a Delinquent Receivable,
(n)for which neither the Originator thereof, the Seller nor the Servicer has established any offset arrangements with the related Obligor,
(o)for which Defaulted Receivables of the related Obligor do not exceed 25% of the Outstanding Balance of all such Obligor’s Receivables,
(p)that represents amounts earned and payable by the Obligor that are not subject to the performance of additional services by the Originator thereof,

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(q)that if such Receivable has not yet been billed, the related coal has been shipped within the last 60 days, and
(r)the Obligor of which is not the Mohave Project.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute of similar import, together with the regulations thereunder, in each case as in effect from time to time.  References to sections of ERISA also refer to any successor sections.
“ERISA Affiliate” means:  (a) any corporation that is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as the Seller, any Originator or Peabody, (b) a trade or business (whether or not incorporated) under common control (within the meaning of Section 414(c) of the Internal Revenue Code) with the Seller, any Originator or Peabody, or (c) a member of the same affiliated service group (within the meaning of Section 414(m) of the Internal Revenue Code) as the Seller, any Originator, Peabody, any corporation described in clause (a) or any trade or business described in clause (b).
“Euro-Rate” means with respect to any day, the greater of (a) 0.00% and (b)the interest rate per annum determined by the applicable Purchaser Agent (which determination shall be conclusive absent manifest error) by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the one-month Eurodollar rate for U.S. dollar deposits as reported by Bloomberg Finance L.P. and shown on US0001M Screen as the composite offered rate for London interbank deposits for such period (or on any successor or substitute page of such service, or any successor or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by such Purchaser Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market, as of 11:00 a.m. (London time) on such date, or if such day is not a Business Day, then the immediately preceding Business Day, in each case, changing when and as such rate changes, by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage.  The Euro-Rate determined pursuant to this clause (a) for any day may also be expressed by the following formula:
		
	Euro-Rate =
	Composite of London interbank offered rates 

shown on Bloomberg Finance L.P. Screen     
US0001M or appropriate successor
1.00 - Euro-Rate Reserve Percentage
As used in this definition, “Euro-Rate Reserve Percentage” for any day means the maximum effective percentage in effect on such day 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 eurocurrency funding (currently referred to as “Eurocurrency Liabilities”).
 “Event of Bankruptcy” means (a) any case, action or proceeding before any court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, 

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dissolution, winding-up or relief of debtors or (b) any general assignment for the benefit of creditors of a Person or any composition, marshalling of assets for creditors of a Person, or other similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each of cases (a) and (b) undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.
“Excess Concentration” means the sum of the following, without duplication:
(a)    the sum of the amounts (if any) by which the aggregate Outstanding Balance of Eligible Receivables of each Obligor then in the Receivables Pool exceeds an amount equal to the product of (i) Concentration Percentage for such Obligor, multiplied by (ii) the Outstanding Balance of all Eligible Receivables then in the Receivables Pool; plus
(b)    the amount (if any) by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool, the Obligors of which are residents of any single country (other than United States of America), exceeds 10.00% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool; plus
(c)    the amount (if any) by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool, the Obligors of which are Eligible Foreign Obligors, exceeds 15.00% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool; provided that upon 5 days notice in writing by the Administrator to Seller, the Administrator may reduce such percentage from 15.00% to 5.00%; for the avoidance of doubt, any Purchaser may require that the Administrator provide notice of such reduction to Servicer; plus
(d)    the amount (if any) by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool, the Obligors of which are governments, governmental subdivisions, affiliates or agencies other than the TVA, exceeds 5.00% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool; plus
(e)    the amount (if any) by which the aggregate Outstanding Balance of all Eligible Receivables considered to be “quality accruals” (as reported on the monthly Information Package), exceeds 5.00% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool; plus
(f)    the amount (if any) by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool the coal with respect to which has been shipped but not yet billed, exceeds 15.00% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to any Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having 

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its principal office or, in the case of any Purchaser, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Purchaser, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Purchaser with respect to an applicable interest in an Investment or Commitment pursuant to a law in effect on the date on which (i) such Purchaser acquires such interest in the Investment or Commitment or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.4, amounts with respect to such Taxes were payable either to such Purchaser’s assignor immediately before such Purchaser became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 5.4(b)(ii) and (d) any U.S. federal withholding Taxes imposed under FATCA.
“Exiting Notice” has the meaning set forth in Section 1.6(b)(ii) of the Agreement.
“Exiting Purchaser” has the meaning set forth in Section 1.6(b)(ii) of the Agreement.
“Facility Termination Date” means the earliest to occur of:  (a) with respect to each Purchaser, March 23, 2018, subject to any extension thereof pursuant to Section 1.12, (b) the date determined pursuant to Section 2.2 of the Agreement, (c) the date the Purchase Limit reduces to zero pursuant to Section 1.1(c) of the Agreement and (d) with respect to each Purchaser Group, the date that the commitment of all of the Committed Purchasers of such Purchaser Group terminate pursuant to Section 1.12.
“FATCA” means Sections 1471 through 1474 of the Internal Revenue 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, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code, and any intergovernmental agreement between the United States of America and any non-U.S. jurisdiction with respect to the foregoing and any law, regulation, or practice adopted pursuant to such intergovernmental agreement.
“Federal Funds Rate” means, for any day, the per annum rate set forth in the weekly statistical release designated as H.15(519), or any successor publication, published by the Federal Reserve Board (including any such successor, “H.15(519)”) for such day opposite the caption “Federal Funds (Effective).”  If on any relevant day such rate is not yet published in H. 15(519), the rate for such day will be the rate set forth in the daily statistical release designated as the Composite 3:30 p.m. Quotations for U.S. Government Securities, or any successor publication, published by the Federal Reserve Bank of New York (including any such successor, the “Composite 3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective Rate.”  If on any relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such day will be the arithmetic mean as determined by the Administrator of the rates for the last transaction in overnight Federal funds arranged before 9:00 a.m. (New York time) on that day by each of three leading brokers of Federal funds transactions in New York City selected by the Administrator.

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“Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any entity succeeding to any of its principal functions.
“Fee Letters” has the meaning set forth in Section 1.7 of the Agreement.
“Fees” means the fees payable by the Seller pursuant to the Fee Letters.  For the avoidance of doubt, “Fees” excludes any Servicing Fees.
“Final Payout Date” means the date on or after the Facility Termination Date on which (i) the Purchase Limit and all Commitments have been reduced to zero ($0), (ii) the Aggregate Capital has been reduced to zero ($0), (iii) the Aggregate Discount has been paid in full, (iv) all accrued Fees have been paid in full, (v) the Adjusted LC Participation Amount has been reduced to zero ($0) and no Letters of Credit issued hereunder remain outstanding and undrawn (unless backstopped or cash-collateralized in a manner agreed to in writing by the LC Bank and the Majority LC Participants in their sole and absolute discretion) and (vi) all other amounts owing by the Seller and the Servicer to the Administrator, the Purchaser Agents, the Purchasers, the Indemnified Parties and the other Affected Persons hereunder and under the other Transaction Documents have been paid in full.
“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any agency, authority, instrumentality, body or entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, including any court and any supra-national bodies such as the European Union or the European Central Bank.
“Group A Obligor” means any Obligor with a short-term rating of at least:  (a) “A1” by Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “A+” or better by Standard & Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P‐1” by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “Al” or better by Moody’s on its long-term senior unsecured and uncredit-enhanced debt securities, and any Special Group A Obligor.
“Group B Obligor” means an Obligor, not a Group A Obligor, with a short-term rating of at least:  (a) “A‐2” by Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “BBB+” to “A” by Standard & Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P‐2” by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “Baal” to “A2” by Moody’s on its long-term senior unsecured and uncredit-enhanced debt securities, and any Special Group B Obligor.
“Group C Obligor” means an Obligor, not a Group A Obligor or a Group B Obligor, with a short-term rating of at least:  (a) “A‐3” by Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a rating of “BBB-” to “BBB” by Standard & Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P‐3” by Moody’s, or if such Obligor does not have a short-term rating from Moody’s, “Baa3” to “Baa2” by Moody’s on its long-term senior unsecured and uncredit-enhanced debt securities, and any Special Group C Obligor.

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“Group Capital” means with respect to any Purchaser Group, an amount equal to the aggregate of all Capital of the Purchasers within such Purchaser Group.
“Group Commitment” means, with respect to any Purchaser Group at any time, the aggregate Commitments of all Committed Purchasers (solely in such capacity) within such Purchaser Group.
“Group D Obligor” means any Obligor that is not a Group A Obligor, Group B Obligor or Group C Obligor, and any Special Group D Obligor.
“Indemnified Amounts” has the meaning set forth in Section 3.1 of the Agreement.
“Indemnified Party” has the meaning set forth in Section 3.1 of the Agreement.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment or disbursement by the Seller or Servicer under any Transaction Document and (b) any incremental U.S. federal income or withholding Taxes or state or local Taxes arising because an Investment or the Purchased Assets is not treated for U.S. federal, state and local income and franchise Tax purposes as intended under Section 1.4(e) and any reasonable expenses (other than Taxes) arising out of, relating to, or resulting from, the foregoing.
“Independent Director” has the meaning set forth in paragraph 3(c) of Exhibit IV to the Agreement.
“Information Package” means a report, in substantially the form of Annex A to the Agreement, furnished to the Administrator and each Purchaser Agent pursuant to the Agreement.
“Insolvency Proceeding” means:  (a) any case, action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors of a Person, composition, marshaling of assets for creditors of a Person, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors, in each of cases (a) and (b) undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.
“Interim Report” means a report substantially in the form of Annex H, furnished to the Administrator pursuant to Section 1.6(g) on any Business Day as of the date that is one Business Day prior to such date.
“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute of similar import, together with the regulations thereunder, in each case as in effect from time to time.  References to sections of the Internal Revenue Code also refer to any successor sections.
“Investment” has the meaning set forth in Section 1.1(a) of the Agreement.
“Investment Date” means the date on which an Investment or a Reinvestment is made pursuant to this Agreement.

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“Investment Notice” has the meaning set forth in Section 1.2(a) of this Agreement.
“ISP98 Rules” has the meaning set forth in Section 1.14 of the Agreement.
“LC Bank” has the meaning set forth in the preamble to the Agreement.
“LC Collateral Account” means the account designated as the LC Collateral Account established and maintained by the Administrator (for the benefit of the LC Bank and the LC Participants), or such other account as may be so designated as such by the Administrator.
“LC Commitment” means the “Commitment” of each LC Participant party hereto as set forth on Schedule V hereto or as set forth in any Assumption Agreement pursuant to which it became a party hereto.
“LC Fee Expectation” has the meaning set forth in Section 1.17(c) of the Agreement.
“LC Participant” means each Person listed as such (and its respective Commitment) for each Purchaser Group as set forth on the signature pages of this Agreement or in any Assumption Agreement or Transfer Supplement.
“LC Participation Amount” shall mean, at any time, the then aggregate face amount of the outstanding Letters of Credit.
“Letter of Credit” shall mean any stand-by letter of credit issued by the LC Bank for the account of the Seller pursuant to the Agreement.
“Letter of Credit Application” has the meaning set forth in Section 1.14 of the Agreement.
“Liquidity Agreement” means any agreement entered into in connection with this Agreement pursuant to which a Liquidity Bank agrees to make purchases or advances to, or purchase assets from, any Conduit Purchaser in order to provide liquidity for such Conduit Purchaser’s Investments.
“Liquidity Bank” means each bank or other financial institution that provides liquidity support to any Conduit Purchaser pursuant to the terms of a Liquidity Agreement.
“LLC Agreement” means the Second Amended and Restated Limited Liability Company Agreement of P&L Receivables Company, LLC.
“Lock-Box Account” means an account in the name of the Seller and maintained by the Seller at a bank or other financial institution for the purpose of receiving Collections.
“Lock-Box Agreement” means an agreement, in form and substance satisfactory to the Administrator, among the Seller, the Servicer, the Administrator and a Lock-Box Bank.
“Lock-Box Bank” means any of the banks or other financial institutions holding one or more Lock-Box Accounts; provided, however, that such bank or other financial institution shall be a Permitted Lock-Box Bank.

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“Loss Reserve” means, on any date, an amount equal to:  (a) the sum of the Aggregate Capital plus the Adjusted LC Participation Amount at the close of business of the Seller on such date multiplied by (b) (i) the Loss Reserve Percentage on such date divided by (ii) 100% minus the Loss Reserve Percentage on such date.
“Loss Reserve Percentage” means, on any date, the product of (i) 2.50 times (ii) the highest average of the Default Ratios for any three consecutive calendar months during the twelve most recent calendar months and (iii) (A) the aggregate credit sales made by the Originators during the five most recent calendar months divided by (B) the Net Receivables Pool Balance as of such date.
“Majority LC Participants” means, at any time, LC Participants whose Pro Rata Shares aggregate 51% or more.
“Majority Purchaser Agents” means, at any time, the Purchaser Agents which in their related Purchaser Group have Committed Purchasers whose Commitments aggregate more than 50% of the aggregate of the Commitments of all Committed Purchasers in all Purchaser Groups; provided, that so long as any one Committed Purchaser’s Commitment is greater than 50% of the aggregate Commitments and there is more than one Purchaser Group, then “Majority Purchaser Agents” shall mean a minimum of two Purchaser Agents which in their related Purchaser Group have Committed Purchasers whose Commitments aggregate more than 50% of the aggregate Commitment of all Committed Purchasers in all Purchaser Groups.
“Material Adverse Effect” means with respect to any event or circumstance, a material adverse effect on:
(a)the assets, operations, business or financial condition of (i) the Seller, or (ii) Peabody and its Subsidiaries taken as a whole,
(b)the ability of any of the Originators, the Contributor, the Servicer, any of the Sub-Servicers, the Transferee or the Seller to perform its obligations under the Agreement or any other Transaction Document to which it is a party,
(c)the validity or enforceability of the Agreement or any other Transaction Document, or the validity, enforceability or collectibility of a material portion of the Pool Receivables, or
(d)the status, perfection, enforceability or priority of the Administrator’s, the Purchasers’ or the Seller’s interest in the Pool Assets.
“Material Originator” means any of the following at any time, so long as such Person is an Originator:  (i) Peabody Western Coal Company, a Delaware corporation, and (ii) Peabody COALSALES, LLC, a Delaware limited liability company and (iii) any other Originator now or hereafter party to the Sale Agreement whose Receivables represent 15% or more of the aggregate Receivables originated by the Originators in any calendar month during the immediately preceding 12 Settlement Periods.

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“Member” shall have the meaning set forth in Schedule A to the LLC Agreement.
“Mohave Project” means that certain joint venture that developed, built and operates the Mohave Generating Station located in Laughlin, Nevada, which joint venture is owned by Southern California Edison (56%), Nevada Power Company (14%), Salt River Project Agricultural Improvement and Power District (10%), and Department of Water and Power of Los Angeles (20%). 
“Monthly Settlement Date” means the twenty-third day of each calendar month occurring after the Closing Date (or the next succeeding Business Day if such day is not a Business Day).
“Moody’s” means Moody’s Investors Service, Inc.
“Navajo Project” means that certain joint venture that developed, built and operates the Navajo Electric Generating Station located in Page, Arizona, which joint venture is owned by Nevada Power Company, Salt River Project Agricultural Improvement and Power District, Department of Water and Power of Los Angeles, Arizona Public Service Co., and Tucson Gas and Electric Co. 
“Net Receivables Pool Balance” means, at anytime:  (a) the Outstanding Balance of Eligible Receivables then in the Receivables Pool minus (b) Excess Concentration.
“Notes” means short-term promissory notes issued, or to be issued, by any Conduit Purchaser to fund its investments in accounts receivable or other financial assets.
“Obligor” means, with respect to any Receivable, the Person obligated to make payments pursuant to the Contract relating to such Receivable.
“Obligor Group” means any of the following:  Group A Obligor, Group B Obligor, Group C Obligor  or Group D Obligor.
“Obligor Percentage” means, at any time, for each Obligor, a fraction, expressed as a percentage, (a) the numerator of which is the aggregate Outstanding Balance of the Eligible Receivables of such Obligor at such time less the amount (if any) then included in the calculation of the Excess Concentration pursuant to clause (a) of the definition thereof with respect to such Obligor, and (b) the denominator of which is the aggregate Outstanding Balance of all Eligible Receivables at such time.
“Order” has the meaning set forth in Section 1.22 of the Agreement.
“Original Agreement” has the meaning set forth in the preliminary statements of the Agreement.
“Original Agreement Outstanding Amounts” has the meaning set forth in the preliminary statements of the Agreement.
“Originator” and “Originators” have the meaning set forth in the Sale Agreement, as the same may be modified from time to time by adding new Originators or removing Originators, in each case with the prior written consent of the Administrator.

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“Originator Assignment Certificate” means the assignment by each Originator to the Contributor, and subsequently to the Seller, in substantially the form of Exhibit C to the Sale Agreement, evidencing Seller’s ownership of the Receivables generated by the Originators, as the same may be amended, supplemented, amended and restated, or otherwise modified from time to time in accordance with the Sale Agreement.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising 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 Transaction Document, or sold or assigned an interest in any Investment or Transaction Document).
“Other Material Financing Agreement” has the meaning set forth in paragraph (j) of Exhibit V of the Agreement.
“Outstanding Balance” of any Receivable at any time means the then outstanding principal balance thereof.
“Participant” has the meaning set forth in Section 5.3(b) of this Agreement.
“Participant Register” has the meaning set forth in Section 5.3(b) of this Agreement.
“Paydown Notice” has the meaning set forth in Section 1.6(f)(i) of the Agreement.
“Payment Date” has the meaning set forth in Section 2.1 of the Sale Agreement.
“Peabody” has the meaning set forth in the preamble to the Agreement.
“Percentage” means, for each Purchaser Group, a fraction (expressed as a percentage), (a) the numerator of which is such Purchaser Group’s Group Commitment and (b) the denominator of which is the aggregate Group Commitments of all Purchaser Groups.
“Performance Guarantor” means Peabody.
“Performance Guaranty” means the Performance Guaranty, dated as of the Closing Date, by the Performance Guarantor and each Originator in favor of the Administrator for the benefit of the Purchasers, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“Performance Reserve” means the sum of the Loss Reserve and the Dilution Reserve.
“Permitted Lock-Box Bank” means PNC or an Affiliate thereof.  
“Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof.

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“PNC” has the meaning set forth in the preamble to the Agreement.
“Pool Assets” has the meaning set forth in Section 1.4(e) of the Agreement.
“Pool Receivable” means a Receivable in the Receivables Pool.
“Portion of Capital” means, with respect to any Purchaser and its Capital, any separate portion of such Capital being funded or maintained by such Purchaser (or its successors or permitted assigns) by reference to a particular interest rate basis.  In addition, at any time when such Capital is not divided into two or more such portions, “Portion of Capital” means 100% of such Capital.
“Program Support Agreement” means and includes any Liquidity Agreement and any other agreement entered into by any Program Support Provider providing for:  (a) the issuance of one or more letters of credit for the account of any Conduit Purchaser, (b) the issuance of one or more surety bonds for which any Conduit Purchaser is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, (c) the sale by any Conduit Purchaser to any Program Support Provider of the Purchased Assets (or portions thereof) and/or (d) the making of loans and/or other extensions of credit to any Conduit Purchaser in connection with such Conduit Purchaser’s securitization program contemplated in the Agreement, together with any letter of credit, surety bond or other instrument issued thereunder.
“Program Support Provider” means and includes, with respect to any Conduit Purchaser, any Liquidity Bank and any other Person (other than any customer of such Conduit Purchaser) now or hereafter extending credit or having a commitment to extend credit to or for the account of, or to make purchases from, such Conduit Purchaser pursuant to any Program Support Agreement.
“Pro Rata Share” means, as to any LC Participant, a fraction, the numerator of which equals the Commitment of such LC Participant at such time and the denominator of which equals the aggregate of the Commitments of all LC Participants at such time.
“Purchase and Sale Indemnified Amounts” has the meaning set forth in Section 9.1 of the Sale Agreement.
“Purchase and Sale Indemnified Party” has the meaning set forth in Section 9.1 of the Sale Agreement.
“Purchase and Sale Termination Date” has the meaning set forth in Section 1.4 of the Sale Agreement.
“Purchase and Sale Termination Event” has the meaning set forth in Section 8.1 of the Sale Agreement.
“Purchased Assets” has the meaning set forth in Section 1.3(b) of the Agreement.
“Purchased Assets Coverage Percentage” means, at any time and subject to Section 1.5 of the Agreement, the percentage computed as:

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Aggregate Capital + Adjusted LC Participation Amount + Total Reserves        
Net Receivables Pool Balance
The Purchased Assets Coverage Percentage shall be determined from time to time in accordance with Section 1.5 of the Agreement.
“Purchase Limit” means $180,000,000, as such amount may be reduced pursuant to Sections 1.1(c) or 1.12 of the Agreement.  References to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit minus the sum of the Aggregate Capital plus the LC Participation Amount.
“Purchase Price” has the meaning set forth in Section 2.1 of the Sale Agreement.
“Purchase Report” has the meaning set forth in Section 2.1 of the Sale Agreement.
“Purchasers” means each Conduit Purchaser, each Committed Purchaser, the LC Bank and each LC Participant.
“Purchaser Agent” means each Person acting as agent on behalf of a Purchaser Group and designated as a Purchaser Agent for such Purchaser Group on the signature pages to this Agreement or any other Person who becomes a party to this Agreement as a Purchaser Agent pursuant to an Assumption Agreement or a Transfer Supplement.
“Purchaser Group” means, (i) for any Conduit Purchaser, such Conduit Purchaser, together with such Conduit Purchaser’s Committed Purchasers, related Purchaser Agent and related LC Participants and (ii) for any other Purchaser that does not have a related Conduit Purchaser, such Purchaser, together with its Purchaser Agent and each other Purchaser for which such Purchaser Agent acts as a Purchaser Agent hereunder and, in the case of PNC as a Purchaser, the LC Bank.  
“Purchasing Committed Purchaser” has the meaning set forth in Section 5.3(c) of the Agreement.
“Receivable” means any indebtedness and other obligations owed to the Seller (as assignee of the Contributor and each Originator), the Contributor  or any Originator by, or any right of the Seller, the Contributor or any Originator to payment from or on behalf of, an Obligor, whether constituting an account, chattel paper, instrument or general intangible, arising in connection with the sale of goods or the rendering of services by any Originator, and includes the obligation to pay any finance charges, fees and other charges with respect thereto.  Indebtedness and other obligations arising from any one transaction, including indebtedness and other obligations represented by an individual invoice or agreement, shall constitute a Receivable separate from a Receivable consisting of the indebtedness and other obligations arising from any other transaction.
“Receivables Pool” means, at any time, all of the then outstanding Receivables purchased by the Contributor pursuant to the Sale Agreement prior to the Facility Termination Date.
“Recipient” means any Administrator, Purchaser or Purchaser Agent, as applicable.

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“Reimbursement Obligation” has the meaning set forth in Section 1.16 of the Agreement.
“Reinvestment” has the meaning set forth in Section 1.4(b) of the Agreement.
“Related Rights” has the meaning set forth in Section 1.1 of the Sale Agreement.
“Related Security” means, with respect to any Receivable:
(a)all of the Seller’s, the Contributor’s and each Originator’s interest in any goods (including returned goods), and documentation of title evidencing the shipment or storage of any goods (including returned goods), relating to any sale giving rise to such Receivable,
(b)all instruments and chattel paper that may evidence such Receivable,
(c)all other security interests or liens and property subject thereto from time to time purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, together with all UCC financing statements or similar filings relating thereto, and
(d)all of the Seller’s, the Contributor’s and each Originator’s rights, interests and claims under the Contracts and all guaranties, indemnities, insurance and other agreements (including the related Contract) or arrangements of whatever character from time to time supporting or securing payment of such Receivable or otherwise relating to such Receivable, whether pursuant to the Contract related to such Receivable or otherwise.
“Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations is in actual or probable violation of any Anti-Terrorism Law.
“Required LC Participants” means, at any time, the LC Participants whose Pro Rata Shares aggregate 662⁄3% or more.
“Responsible Officer” means, with respect to each Originator, the Contributor, the Servicer, the Transferee and the Seller, any president, vice president, treasurer, assistant treasurer, secretary, assistant secretary, chief financial officer, controller or any other officer of any such Person charged with the responsibility for administration of any Transaction Document.
“Restricted Payments” has the meaning set forth in Section 1(n) of Exhibit IV of the Agreement.
“Sale Agreement” means the Purchase and Sale Agreement, dated as of February 20, 2002, between the Contributor and the Originators as such agreement may be amended, amended and restated, supplemented or otherwise modified from time to time.

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“Sanctioned Country” means a country subject to a sanctions program maintained under any Anti-Terrorism Law.
“Sanctioned Obligor” means an Obligor which (i) if a natural person, is either (A) a resident of a Sanctioned Country or (B) a Sanctioned Person or (ii) if a corporation or other business organization, is organized under the laws of a Sanctioned Country or any political subdivision thereof.
“Sanctioned Person” means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Law.
“Seller” has the meaning set forth in the preamble to the Agreement.
“Servicer” has the meaning set forth in the preamble to the Agreement.
“Servicer Note” means that certain Amended and Restated Promissory Note, dated as of January 25, 2010, made by Peabody in favor of the Seller, as the same may be amended from time to time.
“Servicing Fee” means the fee referred to in Section 4.6 of the Agreement.
“Servicing Fee Rate” means the rate referred to in Section 4.6 of the Agreement.
“Settlement Date” means with respect to any Portion of Capital for any Settlement Period, (i) prior to the Facility Termination Date, the Monthly Settlement Date and (ii) on and after the Facility Termination Date, each day selected from time to time by the Administrator (with the consent or at the direction of the Majority Purchaser Agents); it being understood that the Administrator may select such Settlement Date to occur as frequently as daily, or, in the absence of such selection, the Monthly Settlement Date.
“Settlement Period” means:  (a) before the Facility Termination Date, each period commencing on the second Business Day prior to each Monthly Settlement Date and ending on (but not including) the second Business Day prior to the next Monthly Settlement Date, and (b) on and after the Facility Termination Date, such period (including a period of one day) as shall be selected from time to time by the Administrator or, in the absence of any such selection, each period of 30 days from the last day of the preceding Settlement Period.
“Solvent” means, with respect to any Person at any time, a condition under which:
(i)the fair value and present fair saleable value of such Person’s total assets is, on the date of determination, greater than such Person’s total liabilities (including contingent and unliquidated liabilities) at such time;
(ii)the fair value and present fair saleable value of such Person’s assets is greater than the amount that will be required to pay such Person’s probable liability on its existing 

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debts as they become absolute and matured (“debts,” for this purpose, includes all legal liabilities, whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent);
(iii)such Person is and shall continue to be able to pay all of its liabilities as such liabilities mature; and
(iv)such Person does not have unreasonably small capital with which to engage in its current and in its anticipated business.
For purposes of this definition:
(A)the amount of a Person’s contingent or unliquidated liabilities at any time shall be that amount which, in light of all the facts and circumstances then existing, represents the amount which can reasonably be expected to become an actual or matured liability;
(B)the “fair value” of an asset shall be the amount which may be realized within a reasonable time either through collection or sale of such asset at its regular market value;
(C)the “regular market value” of an asset shall be the amount which a capable and diligent business person could obtain for such asset from an interested buyer who is willing to purchase such asset under ordinary selling conditions; and
(D)the “present fair saleable value” of an asset means the amount which can be obtained if such asset is sold with reasonable promptness in an arm’s-length transaction in an existing and not theoretical market.
“Special Member” has the meaning set forth in Schedule A to the LLC Agreement.
“Special Obligor” means the Navajo Project, for so long as, with respect to such Navajo Project, (a) the agreement among the project participants requires that upon the default of any participant, the non-defaulting participants are required to cure any such default, and (b) Peabody represents and warrants that, to its knowledge, the statement set forth in subsection (a) above is true, complete and correct.  The Navajo  Project shall be deemed to be a “Special Group A Obligor” hereunder for so long as such Navajo Project has at least one project participant with the rating of a Group A Obligor; the Navajo Project shall be deemed to be a “Special Group B Obligor” hereunder for so long as such Navajo Project has at least one project participant with the rating of a Group B Obligor (but no project participants with the rating of a Group A Obligor); the Navajo Project shall be deemed to be a “Special Group C Obligor” hereunder for so long as such Navajo Project has at least one project participant with the rating of a Group C Obligor (but no project participants with the rating of a Group A Obligor or a Group B Obligor); and the Navajo Project shall be deemed to be a “Special Group D Obligor” hereunder for so long as such Navajo Project has no project participants with the rating of a Group A Obligor, a Group B Obligor or a Group C Obligor. 
“Special Obligor Group” means any one of the following:  Special Group A Obligor, Special Group B Obligor, Special Group C Obligor, or Special Group D Obligor.

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“Spike Factor” means, for any calendar month, (a) the positive difference, if any, between:  (i) the highest Dilution Ratio for any one calendar month during the twelve most recent calendar months and (ii) the arithmetic average of the Dilution Ratios for such twelve months times (b) (i) the highest Dilution Ratio for any one calendar month during the twelve most recent calendar months divided by (ii) the arithmetic average of the Dilution Ratios for such twelve months.
“Standard & Poor’s” means Standard & Poor’s Ratings Services, a Standard and Poor’s Financial Services LLC business.
“Sub-Servicer” has the meaning set forth in Section 4.1 of the Agreement.
“Subsidiary” means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock of each class or other interests having ordinary voting power (other than stock or other interests having such power only by reason of the happening of a contingency) to elect a majority of the Board of Directors or other managers of such entity are at the time owned, or management of which is otherwise controlled:  (a) by such Person, (b) by one or more Subsidiaries of such Person or (c) by such Person and one or more Subsidiaries of such Person.
“Taxes” has the meaning set forth in Section 5.4(b)(i) of this Agreement.
“Termination Day” means:  (a) each day on which the conditions set forth in Section 2 of Exhibit II to the Agreement are not satisfied or (b) each day that occurs on or after the Facility Termination Date.
“Termination Event” has the meaning specified in Exhibit V to the Agreement.
“Termination Fee” means, for any Settlement Period during which a Termination Day occurs, the amount, if any, by which:  (a) the additional Discount (calculated without taking into account any Termination Fee or any shortened duration of such Settlement Period pursuant to the definition thereof) that would have accrued during such Settlement Period on the reductions of Capital relating to such Settlement Period had such reductions not been made, exceeds (b) the income, if any, received by the applicable Purchaser from investing the proceeds of such reductions of Capital, as determined by the applicable Purchaser Agent, which determination shall be binding and conclusive for all purposes, absent manifest error.
“Total Reserves” means, at any time the sum of:  (a) the Yield Reserve, plus the greater of (b) (i) the Performance Reserve, or (ii) the sum of the Concentration Reserve plus the Dilution Component Reserve.
“Transaction Documents” means the Agreement, the Lock-Box Agreements, the Fee Letters, the Sale Agreement, the Contribution Agreement, the Performance Guaranty, the Servicer Note, and all other certificates, instruments, UCC financing statements, reports, notices, agreements and documents executed or delivered under or in connection with the Agreement, in each case as the same may be amended, supplemented or otherwise modified from time to time in accordance with the Agreement.

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“Transfer Supplement” has the meaning set forth in Section 5.3(c) of the Agreement.
“TVA” means Tennessee Valley Authority, an Obligor of the Originators.
“UCC” means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction.
“UCP 600” has the meaning set forth in Section 1.14 of the Agreement.
“Unmatured Contribution Termination Event” means any event which, with the giving of notice or lapse of time, or both, would become a Contribution Termination Event.
“Unmatured Purchase and Sale Termination Event” means any event which, with the giving of notice or lapse of time, or both, would become a Purchase and Sale Termination Event.
“Unmatured Termination Event” means an event that, with the giving of notice or lapse of time, or both, would constitute a Termination Event.
“USA Patriot Act” means 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.
“Yield Reserve” means, on any date, an amount equal to:  (a) the sum of the Aggregate Capital plus the Adjusted LC Participation Amount at the close of business of the Seller on such date multiplied by (b) (i) the Yield Reserve Percentage on such date divided by (ii) 100% minus the Yield Reserve Percentage on such date.
“Yield Reserve Percentage” means at any time:
(BR+SFR)     x l.5 x     DSO 
    360
where:
		
	BR
	=    the Base Rate computed for the most recent Settlement Period,

		
	DSO
	=    Days’ Sales Outstanding, and

		
	SFR
	=    the Servicing Fee Rate

Other Terms.  All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles.  All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9.  Unless the context otherwise requires, “or” means “and/or,” and “including” (and with correlative meaning “include” and “includes”) means including without limiting the generality of any description preceding such term.

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EXHIBIT II 
CONDITIONS PRECEDENT
1.Conditions Precedent to Effectiveness of this Agreement.  The effectiveness of  this Agreement is subject to the Administrator’s receipt of each of the documents, instruments and opinions listed on the closing memorandum attached to this Agreement as Schedule VIII.
2.Conditions Precedent to All Investments, Issuances of Letters of Credit and Reinvestments.  Each Investment (including any deemed Investment pursuant to Section 1.4(f) of the Agreement) and the issuance of any Letters of Credit and each Reinvestment shall be subject to the further conditions precedent that:
(a)in the case of each Investment and the issuance of any Letters of Credit, the Servicer shall have delivered to the Administrator and each Purchaser Agent on or before such Investment or issuance, as the case may be, in form and substance satisfactory to the Administrator and each Purchaser Agent, a completed pro forma Information Package to reflect the level of Aggregate Capital, the LC Participation Amount and related reserves and the calculation of the Purchased Asset Coverage Percentage after such subsequent Investment or issuance, as the case may be, and a completed Investment Notice in the form of Annex B; and
(b)on the date of such Investment, issuance or Reinvestment, as the case may be, the following statements shall be true (and acceptance of the proceeds of such Investment, issuance or Reinvestment shall be deemed a representation and warranty by the Seller that such statements are then true):
(i)the representations and warranties contained in Exhibit III to the Agreement are true and correct in all material respects on and as of the date of such Investment, issuance or Reinvestment as though made on and as of such date (except to the extent that such representations and warranties expressly relate to an earlier date, and in which case such representations and warranties shall be true and correct in all material respects as of such earlier date);
(ii)no event has occurred and is continuing, or would result from such Investment, issuance or Reinvestment, that constitutes a Termination Event;
(iii)solely in the case of any Investment (but not Reinvestment) or any such issuance, no Unmatured Termination Event shall exist and be continuing;
(iv)the sum of the Aggregate Capital plus the LC Participation Amount, after giving effect to any such Investment, issuance or Reinvestment, as the case may be, shall not exceed the Purchase Limit;
(v)after giving effect to any such Investment, issuance or Reinvestment, as the case may be, the Purchased Assets Coverage Percentage shall not exceed 100%; and
(vi)the Facility Termination Date shall not have occurred.
EXHIBIT III 
REPRESENTATIONS AND WARRANTIES
1.Representations and Warranties of the Seller.  The Seller represents and warrants as follows:
(a)The Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to do business and is in good standing as a foreign limited liability company in every jurisdiction where the nature of its business requires it to be so qualified, except where the failure to be so qualified would not have a Material Adverse Effect.
(b)The execution, delivery and performance by the Seller of the Agreement and the other Transaction Documents to which it is a party, including its use of the proceeds of Investments and Reinvestments:  (i) are within its organizational powers; (ii) have been duly authorized by all necessary organizational action; (iii) do not contravene or result in a default under or conflict with:  (A) its certificate of formation or any other organizational document of the Seller, (B) any law, rule or regulation applicable to it, (C) any indenture, loan agreement, mortgage, deed of trust or other material agreement or instrument to which it is a party or by which it is bound, or (D) any order, writ, judgment, award, injunction or decree binding on or affecting it or any of its property; and (iv) do not result in or require the creation of any Adverse Claim upon or with respect to any of its properties.  The Agreement and the other Transaction Documents to which it is a party have been duly executed and delivered by the Seller.
(c)No authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or other Person is required for its due execution, delivery and performance by the Seller of the Agreement or any other Transaction Document to which it is a party, other than the Uniform Commercial Code filings referred to in Exhibit II to the Agreement, all of which shall have been filed on or before the Closing Date.
(d)Each of the Agreement and the other Transaction Documents to which the Seller is a party constitutes its legal, valid and binding obligation enforceable against the Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws from time to time in effect affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.
(e)There is no pending or, to Seller’s best knowledge, threatened action or proceeding affecting Seller or any of its properties before any Governmental Authority or arbitrator.
(f)No proceeds of any Investment or Reinvestment will be used to acquire any equity security of a class that is registered pursuant to Section 12 of the Securities Exchange Act of 1934.
(g)The Seller is the legal and beneficial owner of, and has good and marketable title to, the Pool Receivables, the Lock-Box Accounts (and related lock-boxes) and Related Security, free and clear of any Adverse Claim.  Upon each Investment or Reinvestment, the Administrator (on behalf of the Purchasers) shall acquire a valid and enforceable perfected ownership or security interest in each Pool Receivable then existing or thereafter arising and in the Related Security, Collections and other proceeds with respect thereto, free and clear of any Adverse Claim.  The Agreement creates a valid and continuing ownership or security interest (as defined in the applicable UCC) in favor of the Administrator in the Pool Assets and the Lock-Box Accounts (and related lock-boxes), which ownership or security interest is prior to all other Adverse Claims, and is enforceable as such against creditors of and purchasers from the Seller.  The Pool Assets constitute “accounts”, “general intangibles” or “tangible chattel paper” within the meaning of the applicable UCC.  Each Lock-Box Account constitutes a “deposit account” within the meaning of the applicable UCC.  The Seller has caused or will have caused, within ten (10) days, the filing of all appropriate UCC financing statements in the proper filing offices in the appropriate jurisdictions under Applicable Laws in order to perfect the ownership or security interest in the Pool Assets and the Lock-Box Accounts (and related lock-boxes) granted to the Administrator (on behalf of the Purchasers) hereunder.  Other than the ownership or security interest granted to the Administrator (on behalf of the Purchasers) pursuant to this Agreement, Seller has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Pool Assets or the Lock-Box Accounts (and related lock-boxes).  Seller has not authorized the filing of and is not aware of any UCC financing statements against Seller that include a description of collateral covering the Pool Assets, other than any UCC financing statement relating to the security interest granted to the Administrator (on behalf of the Purchasers) hereunder or that has been terminated.  Seller is not aware of any judgment, ERISA or tax lien filings against the Seller.   With respect to any Pool Receivable that constitutes “tangible chattel paper”, the Servicer is in possession of the original copies of the tangible chattel paper that constitutes or evidences such Pool Receivables, and the Seller has filed the financing statements described in this section above, each of which will contain a statement that “A purchase of or a grant of a security interest in any property described in this financing statement will violate the rights of the Administrator.”  The Pool Receivables to the extent they are evidenced by “tangible chattel paper” do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Seller or the Administrator (on behalf of the Purchasers).
(h)Each Information Package (if prepared by the Seller or one of its Affiliates, or to the extent that information contained therein is supplied by the Seller or one of its Affiliates), information, exhibit, financial statement, document, book, record or report furnished or to be furnished at any time by or on behalf of the Seller to the Administrator or any Purchaser Agent in connection with the Agreement or any other Transaction Document to which it is a party is or will be complete and accurate in all material respects as of its date or (except as otherwise disclosed to the Administrator or such Purchaser Agent, as applicable, at such time) as of the date so furnished.
(i)The Seller’s principal place of business, chief executive office and state of formation (as such terms are used in the UCC) and the office where it keeps its records concerning the Receivables are located at the address referred to in Sections l(b) and 2(b) of Exhibit IV to the Agreement.
(j)The names and addresses of all the Lock-Box Banks, together with the account numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Schedule II to the Agreement (or at such other Lock-Box Banks and/or with such other Lock-Box Accounts as have been notified to the Administrator in accordance with the Agreement) and all Lock-Box Accounts are subject to Lock-Box Agreements.  With respect to all Lock-Box Accounts (and related lock-boxes), the Seller has delivered to the Administrator, on behalf of the Purchasers, a fully executed Lock-Box Agreement pursuant to which the applicable Lock-Box Bank has agreed to comply with all instructions given by the Administrator with respect to all funds on deposit in such Lock-Box Account (and all funds sent to the respective lock-box), without further consent by the Seller or the Servicer.  None of the Lock-Box Accounts (and the related lock-boxes) are in the name of any Person other than the Seller or the Administrator (on behalf of the Purchasers).  The Seller has not consented to any Lock-Box Bank’s complying with instructions of any person other than the Administrator.
(k)The Seller is not in violation of any order of any court, arbitrator or Governmental Authority.
(l)No proceeds of any Investment or Reinvestment will be used for any purpose that violates any Applicable Law, including Regulations T, U or X of the Federal Reserve Board.
(m)Each Pool Receivable included as an Eligible Receivable in the calculation of the Net Receivables Pool Balance is an Eligible Receivable.
(n)No event has occurred and is continuing, or would result from an Investment or Reinvestment or from the application of the proceeds therefrom, that constitutes a Termination Event or an Unmatured Termination Event.
(o)The Seller has accounted for each sale of the Receivables and the other Purchased Assets in its books and financial statements as sales, consistent with generally accepted accounting principles.
(p)The Seller has complied in all material respects with the Credit and Collection Policy of the Originators with regard to each Receivable originated by the Originators.
(q)The Seller has complied in all material respects with all of the terms, covenants and agreements contained in the Agreement and the other Transaction Documents that are applicable to it.
(r)The Seller’s complete organizational name is set forth in the preamble to the Agreement, and it does not use and has not during the last six years used any other organizational name, trade name, doing-business name or fictitious name, except as set forth on Schedule III to the Agreement and except for names first used after the date of the Agreement and set forth in a notice delivered to the Administrator pursuant to Section 1(1)(iv) of Exhibit IV to the Agreement.
(s)The Seller  is not (i) required to register as an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”), or (ii) a “covered fund” under Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder.  In reaching such determination, the Seller is entitled to rely on the exemption from the definition of “investment company” set forth in Section 3(c)(5) of the Investment Company Act.
(t)No Covered Entity is a Sanctioned Person.  No Covered Entity, either in its own right or through any third party, (i) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (ii) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (iii) engages in any dealings or transactions prohibited by any Anti-Terrorism Law.
(u)The Seller has not, does not and will not (x) issue any obligations that (A) constitute asset-backed commercial paper, or (B) are securities required to be registered under the Securities Act of 1933 (the “33 Act”) or that may be offered for sale under Rule 144A or a similar exemption from registration under the 33 Act or the rules promulgated thereunder, or (y) issue any other debt obligations or equity interests other than the Company Note or debt obligations substantially similar to the obligations of such Borrower under this Agreement that are (A) issued to other banks or asset-backed commercial paper conduits in privately negotiated transactions, and (B) subject to transfer restrictions substantially similar to the transfer restrictions set forth in this Agreement.  The Seller further represents and warrants that its assets and liabilities are consolidated with the assets and liabilities of Peabody for purposes of generally accepted accounting principles.
(v)There are no mortgages that are effective as financing statements covering as-extracted collateral that constitutes Purchased Assets and that name any Originator (or, if such Originator is not the “record owner” of the underlying property, any “record owner” with respect to such as-extracted collateral, as such term is used in the UCC) as grantor, debtor or words of similar effect filed or recorded in any jurisdiction.
2.Representations and Warranties of Peabody (including in its capacity as the Servicer).  Peabody, individually and in its capacity as the Servicer, represents and warrants jointly and severally as follows:
(a)Peabody is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to do business and is in good standing as a foreign corporation  in every jurisdiction where the nature of its business requires it to be so qualified, except where the failure to be so qualified would not have a Material Adverse Effect.
(b)The execution, delivery and performance by Peabody of the Agreement and the other Transaction Documents to which it is a party, including the Servicer’s use of the proceeds of Investments and Reinvestments:  (i) are within its organizational powers; (ii) have been duly authorized by all necessary organizational action; (iii) do not contravene or result in a default under or conflict with:  (A) its certificate of incorporation or any other organizational document of Peabody, (B) any law, rule or regulation applicable to it, (C) any indenture, loan agreement, mortgage, deed of trust or other material agreement or instrument to which it is a party or by which it is bound, or (D) any order, writ, judgment, award, injunction or decree binding on or affecting it or any of its property; and (iv) do not result in or require the creation of any Adverse Claim upon or with respect to any of its properties.  The Agreement and the other Transaction Documents to which Peabody is a party have been duly executed and delivered by Peabody.
(c)No authorization, approval or other action by, and no notice to or filing with any Governmental Authority or other Person, is required for the due execution, delivery and performance by Peabody of the Agreement or any other Transaction Document to which it is a party.
(d)Each of the Agreement and the other Transaction Documents to which Peabody is a party constitutes the legal, valid and binding obligation of Peabody enforceable against Peabody in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws from time to time in effect affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.
(e)The consolidated balance sheets of Peabody and its Subsidiaries as at September 30, 2015, and the related consolidated statements of operations, comprehensive income, change in stockholders’ equity, and cash flows for the fiscal year then ended, copies of which have been furnished to the Administrator, fairly present in all material respects the consolidated financial position of Peabody and its Subsidiaries as at such date and the consolidated results of operations of Peabody and its Subsidiaries for the period ended on such date, all in accordance with United States generally accepted accounting principles consistently applied.
(f)Except as disclosed in the most recent audited financial statements of Peabody furnished to the Administrator, there is no pending or, to its best knowledge, threatened action or proceeding affecting it or any of its Subsidiaries before any Governmental Authority or arbitrator that is reasonably likely to have a Material Adverse Effect.
(g)No proceeds of any Investment or Reinvestment will be used to acquire any equity security of a class that is registered pursuant to Section 12 of the Securities Exchange Act of 1934.  No proceeds of any Investment or Reinvestment will be used for any purpose that violates any Applicable Law, including Regulations T, U or X of the Federal Reserve Board.
(h)Each Information Package (if prepared by Peabody or one of its Affiliates, or to the extent that information contained therein is supplied by Peabody or an Affiliate), information, exhibit, financial statement, document, book, record or report furnished or to be furnished at any time by or on behalf of the Servicer to the Administrator or any Purchaser Agent in connection with the Agreement is or will be complete and accurate in all material respects as of its date or (except as otherwise disclosed to the Administrator or such Purchaser Agent, as applicable, at such time) as of the date so furnished.
(i)The principal place of business, chief executive office and state of formation (as such terms are used in the UCC) of Peabody and the office where it keeps its records concerning the Receivables are located at the address referred to in Section 2(b) of Exhibit IV to the Agreement.
(j)Peabody is not in violation of any order of any court, arbitrator or Governmental Authority, which is reasonably likely to have a Material Adverse Effect.
(k)The Servicer has complied in all material respects with the Credit and Collection Policy of the Originators with regard to each Receivable originated by the Originators.
(l)Peabody has complied in all material respects with all of the terms, covenants and agreements contained in the Agreement and the other Transaction Documents that are applicable to it.
(m)Peabody is not an “investment company,” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
(n)No Covered Entity is a Sanctioned Person.  No Covered Entity, either in its own right or through any third party, (i) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (ii) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (iii) engages in any dealings or transactions prohibited by any Anti-Terrorism Law.  
(o)The agreement among the project participants of the Navajo Project requires that upon the default of any participant, the non-defaulting participants are required to cure any such default.
(p)There are no mortgages that are effective as financing statements covering as-extracted collateral that constitutes Purchased Assets and that name any Originator (or, if such Originator is not the “record owner” of the underlying property, any “record owner” with respect to such as-extracted collateral, as such term is used in the UCC) as grantor, debtor or words of similar effect filed or recorded in any jurisdiction.

EXHIBIT IV 
COVENANTS
1.Covenants of the Seller.  Until the Final Payout Date:
(a)Compliance with Laws, Etc.  The Seller shall comply in all material respects with all Applicable Laws and preserve and maintain its organizational existence, rights, franchises, qualifications and privileges, except to the extent that the failure so to comply with such laws, rules, regulations and orders or the failure so to preserve and maintain such rights, franchises, qualifications and privileges would not have a Material Adverse Effect.
(b)Offices, Records and Books of Account, Etc.  The Seller:  (i) shall keep its principal place of business, chief executive office and state of formation (as such terms or similar terms are used in the UCC) and the office where it keeps its records concerning the Receivables at the address of the Seller set forth on Schedule IV or, pursuant to clause (1)(iv) below, at any other locations in jurisdictions where all actions reasonably requested by the Administrator to protect and perfect the interest of the Administrator in the Receivables and related items (including the Pool Assets) have been taken and completed and (ii) shall provide the Administrator with at least 30 days’ written notice before making any change in the Seller’s name or making any other change in the Seller’s identity or organizational structure (including a Change in Control) that could render any UCC financing statement filed in connection with this Agreement “seriously misleading” as such term (or similar term) is used in the UCC; each notice to the Administrator pursuant to this sentence shall set forth the applicable change and the effective date thereof.  The Seller also will maintain and implement (or cause the Servicer to maintain and implement) administrative and operating procedures (including an ability to recreate records evidencing Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain (or cause the Servicer to keep and maintain) all documents, books, records, computer tapes and disks and other information reasonably necessary or advisable for the collection of all Receivables (including records adequate to permit the daily identification of each Receivable and all Collections of and adjustments to each existing Receivable).  Notwithstanding the above, in no event shall the Seller have or maintain, or be a partner in any partnership that has or maintains, its jurisdiction of organization, principal place of business or principal assets in any of the states of Colorado, Kansas, New Mexico, Oklahoma, Utah or Wyoming.
(c)Performance and Compliance with Contracts and Credit and Collection Policy.  The Seller shall (and shall cause the Servicer to), at its expense, timely and fully perform and comply with all material provisions, covenants and other promises required to be observed by it under the Contracts related to the Receivables, and timely and fully comply in all material respects with the applicable Credit and Collection Policy with regard to each Receivable and the related Contract.
(d)Ownership Interest, Etc.  The Seller shall (and shall cause the Servicer to), at its expense, take all action necessary or desirable to establish and maintain a valid and enforceable ownership or security interest in the Pool Receivables, the Related Security and Collections with respect thereto, and a first priority perfected ownership or security interest in the Pool Assets, in each case free and clear of any Adverse Claim, in favor of the Administrator (on behalf of the Purchasers), including taking such action to perfect, protect or more fully evidence the interest of the Administrator (on behalf of the Purchasers), as the Administrator, may reasonably request.  The Seller shall from time to time and within the time limits established by law prepare and present to the Administrator for the Administrator’s authorization and approval all financing statements, amendments, continuations or initial financing statements in lieu of a continuation statement, or other filings necessary to continue, maintain and perfect the Administrator’s (on behalf of the Purchasers) ownership or security interest in the Pool Assets as a first-priority interest.  The Administrator’s approval of such filings shall authorize the Seller to file such financing statements under the UCC without the signature of the Seller, or the Administrator, any Purchaser Agent or any Purchaser where allowed by Applicable Law.  Notwithstanding anything else in the Transaction Documents to the contrary, neither the Seller, the Servicer nor any other Person shall have any authority to file a termination, partial termination, release or partial release or any amendment that deletes the name of a debtor or excludes collateral of any such financing statements without the prior written consent of the Administrator.
(e)Sales, Liens, Etc.  The Seller shall not sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect to, any or all of its right, title or interest in, to or under any Pool Assets (including the Seller’s interest in any Receivable, Related Security or Collections, or upon or with respect to any account to which any Collections of any Receivables are sent), or assign any right to receive income in respect of any items contemplated by this paragraph.
(f)Extension or Amendment of Receivables.  Except as provided in the Agreement, the Seller shall not, and shall not permit the Servicer to, alter the delinquency status or adjust the Outstanding Balance or otherwise modify the terms of any Pool Receivable in any material respect, or amend, modify or waive, in any material respect, any term or condition of any related Contract (which term or condition relates to payments under, or the enforcement of, such Contract).
(g)Change in Business or Credit and Collection Policy. Without the prior written consent of the Administrator and each Purchaser Agent, the Seller shall not make (or permit the Originators to make) any material change in the character of its business or in any Credit and Collection Policy, or any change in any Credit and Collection Policy that would have a Material Adverse Effect with respect to the Receivables.  The Seller shall not make (or permit the Originators to make) any other change in any Credit and Collection Policy without giving 30 days’ prior written notice thereof to the Administrator and each Purchaser Agent.
(h)Audits.  The Seller shall (and shall cause the Originators to), from time to time during regular business hours as reasonably requested in advance (unless a Termination Event or Unmatured Termination Event exists) by the Administrator, permit the Administrator or its agents or representatives:  (i) to examine and make copies of and abstracts from all books, records and documents (including computer tapes and disks) in the possession or under the control of the Seller (or the Originators) relating to Receivables and the Related Security, including the related Contracts, (ii) to visit the offices and properties of the Seller and the Originators for the purpose of examining such materials described in clause (i) above, and to discuss matters relating to Receivables and the Related Security or the Seller’s, Peabody’s or any Originator’s performance under the Transaction Documents or under the Contracts with any of the officers, employees, agents or contractors of the Seller, Peabody or any Originator having knowledge of such matters and (iii) without limiting the clauses (i) and (ii) above, to engage certified public accountants or other auditors acceptable to the Seller and the Administrator to conduct, at the Seller’s expense, a review of the Seller’s books and records with respect to such Receivables, provided, that at any time when no Termination Event exists and is continuing, the Seller shall be required to reimburse the Administrator for only two (2) such audit per year.
(i)Change in Lock-Box Banks, Lock-Box Accounts and Payment Instructions to Obligors.  The Seller shall not, and shall not permit the Servicer or any Originator to, add or terminate any bank as a Lock-Box Bank or any account as a Lock-Box Account from those listed in Schedule II to the Agreement, or make any change in its instructions to Obligors regarding payments to be made to the Seller, any Originator, the Servicer or any Lock-Box Account (or related post office box), unless the Administrator shall have received ten (10) days prior written notice of assignment to a Permitted Lock-Box Bank  and the Administrator shall have received copies of all agreements and documents (including Lock-Box Agreements) that it may request in connection therewith.
(j)Deposits to Lock-Box Accounts.  The Seller shall (or shall cause the Servicer to):  (i) instruct all Obligors to make payments of all Receivables to one or more Lock-Box Accounts or to post office boxes to which only Lock-Box Banks have access (and shall instruct the Lock-Box Banks to cause all items and amounts relating to such Receivables received in such post office boxes to be removed and deposited into a Lock-Box Account on a daily basis), and (ii) deposit, or cause to be deposited, any Collections received by it, the Servicer or any Originator into Lock-Box Accounts not later than two (2) Business Days after receipt thereof.  Each Lock-Box Account shall at all times be subject to a Lock-Box Agreement.  The Seller will not (and will not permit the Servicer to) deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Lock-Box Account cash or cash proceeds other than Collections.
(k)Marking of Records.  At its expense, the Seller shall:  (i) mark (or cause the Servicer to mark) its master data processing records relating to Pool Receivables and related Contracts, including with a legend evidencing that the Receivables and related Contracts included in the Purchased Assets have been sold in accordance with the Agreement, and (ii) cause each Originator so to mark its master data processing records pursuant to the Sale Agreement.
(l)Reporting Requirements.  The Seller will provide to the Administrator and each Purchaser Agent (in multiple copies, if requested by the Administrator or any Purchaser Agent) the following:
(i)as soon as available and in any event within 120 days after the end of each fiscal year of the Seller, a copy of the financial statements for such year for the Seller, certified as to accuracy by a Responsible Officer of the Seller;
(ii)as soon as possible and in any event within five days after the occurrence of each Termination Event or Unmatured Termination Event, a statement of a Responsible Officer of the Seller setting forth details of such Termination Event or Unmatured Termination Event and the action that the Seller has taken and proposes to take with respect thereto;
(iii)promptly after the filing or receiving thereof, copies of all reports and notices that the Seller or any ERISA Affiliate files under ERISA with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that the Seller or any ERISA Affiliate receives from any of the foregoing or from any multiemployer plan (within the meaning of Section 400l(a)(3) of ERISA) to which the Seller or any of its ERISA Affiliates is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of withdrawal liability or an event or condition that could, in the aggregate, result in the imposition of liability on the Seller and/or any such ERISA Affiliate;
(iv)at least thirty days before any change in the Seller’s name or any other change requiring the amendment of UCC financing statements, a notice setting forth such changes and the effective date thereof;
(v)promptly after any Responsible Officer of the Seller obtains knowledge thereof, notice of any:  (A) material litigation, investigation or proceeding that may exist at any time between the Seller and any Person or (B) material litigation or proceeding relating to any Transaction Document;
(vi)promptly after the occurrence thereof, notice of a material adverse change in the business, operations, property or financial or other condition of the Seller, the Servicer or the Originator; and
(vii)such other information respecting the Receivables or the condition or operations, financial or otherwise, of the Seller or any of its Affiliates as the Administrator or any Purchaser Agent may from time to time reasonably request.
(m)Certain Agreements.  Without the prior written consent of the Administrator and the Majority Purchaser Agents, the Seller will not (and will not permit the Originators to) amend, modify, waive, revoke or terminate any Transaction Document to which it is a party or any provision of Seller’s certificate of formation or other organizational document of the Seller.
(n) Restricted Payments. (i) Except pursuant to clause (ii) below, the Seller will not:  (A) purchase or redeem any shares of its capital stock, (B) declare or pay any dividend or set aside any funds for any such purpose, (C) prepay, purchase or redeem any Debt, (D) lend or advance any funds or (E) repay any loans or advances to, for or from any of its Affiliates (the amounts described in clauses (A) through (E) being referred to as “Restricted Payments”).
(ii)Subject to the limitations set forth in clause (iii) below, the Seller may make Restricted Payments so long as such Restricted Payments are made only in the following way:  the Seller may declare and pay distributions and make loans and advances to Peabody (provided that any such loans and advances shall be treated as a dividend within no less than 30 days following the making thereof).
(iii)The Seller may make Restricted Payments only out of the funds it receives pursuant to Sections 1.6(b)(ii) and (iv) and 1.6(d) of the Agreement.  Furthermore, the Seller shall not pay, make or declare:  (A) any distributions, loans or advances if, after giving effect thereto, the Seller’s tangible net worth would be less than $10,000,000, or (B) any Restricted Payment (including any dividend) if, after giving effect thereto, any Termination Event or Unmatured Termination Event shall have occurred and be continuing.
(o)Other Business.  The Seller will not:  (i) engage in any business other than the transactions contemplated by the Transaction Documents; (ii) create, incur or permit to exist any Debt of any kind (or cause or permit to be issued for its account any letters of credit or bankers’ acceptances) other than pursuant to this Agreement or any Company Note; or (iii) form any Subsidiary or make any investments in any other Person; provided, however, that the Seller shall be permitted to incur minimal obligations to the extent necessary for the day-to-day operations of the Seller (such as expenses for stationery, audits, maintenance of legal status, etc.).
(p)Use of Collections.  The Seller shall apply the Collections that are available to the Seller in accordance with the Agreement to make payments in the following order of priority:  (i) the payment of its expenses (including all obligations payable to the Purchasers, the Purchaser Agents and the Administrator under the Agreement and under the Fee Letters); (ii) the payment of accrued and unpaid interest on any Company Note; and (iii) other legal and valid organizational purposes.
(q)Tangible Net Worth.  The Seller will not permit its tangible net worth, at any time, to be less than $10,000,000.
(r)Anti-Money Laundering/International Trade Law Compliance.  No Covered Entity will become a Sanctioned Person. No Covered Entity, either in its own right or through any third party, will (a) have any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (b) do business in or with, or derive any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (c) engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (d) use the proceeds of any Investment to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law. The funds used to repay Seller’s obligations under this Agreement and each of the other Transaction Documents will not be derived from any unlawful activity. Each Covered Entity shall comply with all Anti-Terrorism Laws. Seller shall promptly notify the Administrator in writing upon the occurrence of a Reportable Compliance Event.
2.Covenants of the Servicer and Peabody.  Until the Final Payout Date:
(a)Compliance with Laws, Etc.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody shall comply (and shall cause the Originators to comply) in all material respects with all Applicable Law and preserve and maintain its organizational existence, rights, franchises, qualifications and privileges, except to the extent that the failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such existence, rights, franchises, qualifications and privileges would not have a Material Adverse Effect.
(b)Offices, Records and Books of Account, Etc.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, (i) shall keep its principal place of business, chief executive office and state of formation (as such terms or similar terms are used in the applicable UCC) and the office where it keeps its records concerning the Receivables at the address of the Servicer set forth on Schedule IV and (ii) shall cause Peabody Holding Company, LLC and each Originator to keep its state of formation (as such term is defined in the applicable UCC) and the office where it keeps its records concerning the Receivables at the applicable address set forth on Schedule IV, in the case of Peabody Holding Company, LLC, and Exhibit E to the Sale Agreement, in the case of any Originator or, in the case of either sub-clause (i) or (ii) of this clause (b), upon at least 30 days’ prior written notice of a proposed change to the Administrator, at any other locations in jurisdictions where all actions reasonably requested by the Administrator to protect and perfect the interest of the Administrator in the Receivables and related items (including the Pool Assets) have been taken and completed.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, also will (and will cause the Originators to) maintain and implement administrative and operating procedures (including an ability to recreate records evidencing Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records, computer tapes and disks and other information reasonably necessary or advisable for the collection of all Receivables (including records adequate to permit the daily identification of each Receivable and all Collections of and adjustments to each existing Receivable).
(c)Performance and Compliance with Contracts and Credit and Collection Policy.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall (and shall cause the Originators to), at its expense, timely and fully perform and comply with all material provisions, covenants and other promises required to be observed by it under the Contracts related to the Receivables, and timely and fully comply in all material respects with the Credit and Collection Policy with regard to each Receivable and the related Contract.
(d)Extension or Amendment of Receivables.  Except as provided in the Agreement, the Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall not alter the delinquency status or adjust the Outstanding Balance or otherwise modify the terms of any Pool Receivable in any material respect, or amend, modify or waive, in any material respect, any term or condition of any related Contract (which term or condition relates to payments under, or the enforcement of, such Contract).
(e)Change in Business or Credit and Collection Policy.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall not make (and shall not permit the Originators to make) any material change in the character of its business, other than Similar Businesses, or any change in any Credit and Collection Policy that would have a Material Adverse Effect.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall not make (and shall not permit the Originators to make) any other change in any Credit and Collection Policy without giving prior written notice thereof to the Administrator and each Purchaser Agent.
(f)Audits.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall (and shall cause the Originators to), from time to time during regular business hours as reasonably requested in advance (unless a Termination Event or Unmatured Termination Event exists) by the Administrator or any Purchaser Agent, permit the Administrator or its agents or representatives:  (i) to examine and make copies of and abstracts from all books, records and documents (including computer tapes and disks) in its possession or under its control relating to Receivables and the Related Security, including the related Contracts; (ii) to visit its offices and properties for the purpose of examining such materials described in clause (i) above, and to discuss matters relating to Receivables and the Related Security or its performance hereunder or under the Contracts with any of its officers, employees, agents or contractors having knowledge of such matters and (iii), without limiting the clauses (i) and (ii) above, to engage certified public accountants or other auditors acceptable to the Servicer and the Administrator to conduct, at the Servicer’s expense, a review of the Servicer’s books and records with respect to such Receivables, provided, that at any time when no Termination Event exists and is continuing, the Servicer shall be required to reimburse the Administrator for only two (2) such audit per year.
(g)Change in Lock-Box Banks, Lock-Box Accounts and Payment Instructions to Obligors.  The Servicer and, to the extent that it ceases to be the Servicer, Peabody, shall not (and shall not permit the Originators to) add or terminate any bank as a Lock-Box Bank or any account as a Lock-Box Account from those listed in Schedule II to the Agreement, or make any change in its instructions to Obligors regarding payments to be made to the Servicer or any Lock-Box Account (or related post office box), unless the Administrator shall have received ten (10) days advance written notice of assignment to a Permitted Lock-Box Bank and the Administrator shall have received copies of all agreements and documents (including Lock-Box Agreements) that it may request in connection therewith.
(h)Deposits to Lock-Box Accounts.  The Servicer shall:  (i) instruct all Obligors to make payments of all Receivables to one or more Lock-Box Accounts or to post office boxes to which only Lock-Box Banks have access (and shall instruct the Lock-Box Banks to cause all items and amounts relating to such Receivables received in such post office boxes to be removed and deposited into a Lock-Box Account on a daily basis); and (ii) deposit, or cause to be deposited, any Collections received by it into Lock-Box Accounts not later than two (2) Business Days after receipt thereof.  Each Lock-Box Account shall at all times be subject to a Lock-Box Agreement.
(i)Preservation of Security Interest.  The Servicer shall (and shall cause the Seller to) take any and all action as the Administrator may require to preserve and maintain the perfection and priority of the ownership or security interest of the Administrator in the Pool Assets pursuant to this Agreement.
(j)Marking of Records.  At its expense, the Servicer shall mark its master data processing records relating to Pool Receivables and related Contracts with a legend evidencing that such Receivables and related Contracts have been sold in accordance with the Agreement.
(k)Navajo Project.  Peabody shall notify the Administrator and each Purchaser Agent if a Responsible Officer of Peabody obtains actual knowledge that the documents and agreements governing the Navajo Project are amended in any manner which would cause the representations and warranties set forth in Section 2(o) of Exhibit III to be incorrect or untrue in any respect.
(l)Reporting Requirements. Peabody shall provide to the Administrator and each Purchaser Agent (in multiple copies, if requested by the Administrator or any Purchaser Agent) the following:
(i)as soon as available and in any event within 60 days  after the end of the first three quarters of each fiscal year of Peabody balance sheets of Peabody and the consolidated Subsidiaries of Peabody as of the end of such quarter and statements of income, retained earnings and cash flow of Peabody and the consolidated Subsidiaries of Peabody for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of Peabody; provided, that any financial statements or other material required to be delivered pursuant to this Section (2)(l)(i) shall be deemed to have been furnished to each of the Administrator and each Purchaser Agent on the date that such financial statements or other material is posted on the SEC’s website at www.sec.gov;
(ii)as soon as available and in any event within 120 days after the end of each fiscal year of Peabody, a copy of the annual report for such year for Peabody and its consolidated Subsidiaries, containing financial statements for such year audited by independent certified public accountants of nationally recognized standing; provided, that any such material required to be delivered pursuant to this Section (2)(l)(ii) shall be deemed to have been furnished to each of the Administrator and each Purchaser Agent on the date that such material are posted on the SEC’s website at www.sec.gov;
(iii)together with the financial statements required in (i) and (ii) above, a compliance certificate in substantially the form of Annex D signed by the senior financial officer of the Seller or Peabody, or such other Person as may be acceptable to the Administrator;
(iv)as to the Servicer only, as soon as available and in any event not later than two Business Days prior to the Monthly Settlement Date, an Information Package as of the most recently completed calendar month or, if in the opinion of the Administrator  reasonable grounds for insecurity exist with respect to the collectibility of the Pool Receivables or with respect to the Seller or Servicer’s performance or ability to perform its obligations under the Agreement, within six Business Days of a request by the Administrator, an Information Package for such periods as is specified by the Administrator (but in no event more frequently than weekly);
(v)as soon as possible and in any event within five days after becoming aware of the occurrence of each Termination Event or Unmatured Termination Event, a statement of the chief financial officer of Peabody setting forth details of such Termination Event or Unmatured Termination Event and the action that such Person has taken and proposes to take with respect thereto;
(vi)promptly after the sending or filing thereof, copies of all reports that Peabody sends to any of its security holders, and copies of all reports and registration statements that Peabody or any Subsidiary files with the Securities and Exchange Commission or any national securities exchange; provided, that any filings with the Securities and Exchange Commission that have been granted “confidential” treatment shall be provided promptly after such filings have become publicly available; provided, that any material required to be delivered pursuant to this Section (2)(l)(vi) shall be deemed to have been furnished to each of the Administrator and each Purchaser Agent on the date that such material is posted on the SEC’s website at www.sec.gov;
(vii)promptly after the filing or receiving thereof notice of and, upon the request of the Administrator, copies of all reports and notices that Peabody or any ERISA Affiliate of Peabody files under ERISA with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that such Person or any of its ERISA Affiliates receives from any of the foregoing or from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which such Person or any ERISA Affiliate of Peabody is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of withdrawal liability or an event or condition that could, in the aggregate, result in the imposition of liability on Peabody and/or any such ERISA Affiliate;
(viii)at least thirty days before any change in Peabody or any Originator’s name or any other change requiring the amendment of UCC financing statements, a notice setting forth such changes and the effective date thereof;
(ix)promptly after a Responsible Officer of Peabody obtains knowledge thereof, notice of any:  (A) litigation, investigation or proceeding that may exist at any time between Peabody or any of its Subsidiaries and any Governmental Authority that is reasonably likely to have a Material Adverse Effect; (B) litigation or proceeding adversely affecting such Person or any of its Subsidiaries that is reasonably likely to have a Material Adverse Effect; or (C) litigation or proceeding relating to any Transaction Document;
(x)promptly after the occurrence thereof, notice of a material adverse change in the business, operations, property or financial or other condition of Peabody and its Subsidiaries taken as a whole, or any individual Material Originator;
(xi)    the occurrence of a default or any event of default under any other financing arrangement evidencing $50,000,000 or more of indebtedness pursuant to which Peabody is a debtor or an obligor; and 
(xii)    such other information respecting the Receivables or the condition or operations, financial or otherwise, of Peabody or any of its Affiliates as the Administrator or any Purchaser Agent may from time to time reasonably request.
(m)Anti-Money Laundering/International Trade Law Compliance. No Covered Entity will become a Sanctioned Person. No Covered Entity, either in its own right or through any third party, will (i) have any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (ii) do business in or with, or derive any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; (iii) engage in any dealings or transactions prohibited by any Anti-Terrorism Law or (iv) use the proceeds of any Investment to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law.  The funds used to repay Servicer’s obligations under this Agreement and each of the other Transaction Documents will not be derived from any unlawful activity. Each Covered Entity shall comply with all Anti-Terrorism Laws. Servicer shall promptly notify the Administrator in writing upon the occurrence of a Reportable Compliance Event.
3.Separate Existence.  Each of the Seller and Peabody hereby acknowledges that the Purchasers, the Purchaser Agents and the Administrator are entering into the transactions contemplated by this Agreement and the other Transaction Documents in reliance upon the Seller’s identity as a legal entity separate from Peabody and its Affiliates.  Therefore, from and after the date hereof, each of the Seller and Peabody shall take all steps specifically required by the Agreement or reasonably required by the Administrator to continue the Seller’s identity as a separate legal entity and to make it apparent to third Persons that the Seller is an entity with assets and liabilities distinct from those of Peabody and any other Person, and is not a division of Peabody, its Affiliates or any other Person.  Without limiting the generality of the foregoing and in addition to and consistent with the other covenants set forth herein, each of the Seller and Peabody shall take such actions as shall be required in order that:
(a)The Seller will be a limited purpose limited liability company whose activities are restricted in its certificate of formation to:  (i) purchasing or otherwise acquiring from the Originators or Peabody (or their Affiliates), owning, holding, granting security interests or selling interests in Pool Assets (or other receivables originated by the Originators or their Affiliates, and certain related assets), (ii) entering into agreements for the selling and servicing of the Receivables Pool (or other receivables pools originated by the Originators or their Affiliates), and (iii) conducting such other activities as are necessary or appropriate to carry out such activities;
(b)The Seller shall not engage in any business or activity except as set forth in this Agreement nor incur any indebtedness or liability, other than as expressly permitted by the Transaction Documents;
(c)Not less than one of the Seller’s Directors (the “Independent Director”) shall be a natural person who (A) for the five-year period prior to his or her appointment as Independent Director has not been, and during the continuation of his or her service as Independent Director is not: (i) an employee, director, stockholder, member, manager, partner or officer of the Seller, Peabody or any of their respective Affiliates (other than his or her service as an Independent Director of the Seller); (ii) a customer or supplier of the Seller, Peabody or any of their respective Affiliates (other than his or her service as an Independent Director of Seller); or (iii) any member of the immediate family of a person described in clause (i) or (ii) above, and (B) has, (i) prior experience as an Independent Director for a corporation or limited liability company whose charter documents required the unanimous consent of all independent directors thereof before such corporation or limited liability company could consent to the institution of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under any applicable federal or state law relating to bankruptcy and (ii) at least three years of employment experience with one or more entities that provide, in the ordinary course of their respective businesses, advisory, management or placement services to issuers of securitization or structured finance instruments, agreements or securities.  Such Independent Director of the Seller shall have been appointed as such in strict compliance with the Seller’s LLC Agreement.  The Seller’s LLC Agreement shall provide that (i) the Seller’s Board of Directors shall not approve, or take any other action to cause the filing of, or join in any filing of, a voluntary bankruptcy or insolvency petition, dissolution, liquidation, consolidation, merger, sale of all or substantially all of its assets, assignment for the benefit of creditors, admit in writing its inability to pay its debts generally as they become due, or to engage in any other business or activity with respect to the Seller unless (x) there is at least one Independent Director then serving as a director of the Seller and appointed pursuant to and in strict compliance with the Seller’s LLC Agreement, and (y) all such Independent Directors of the Seller shall have approved the taking of such action in writing prior to the taking of such action and (ii) such provision cannot be amended without the prior written consent of the Independent Director and the Administrator;
(d)Upon the occurrence of any event that causes the Member to cease to be a member of the Seller (other than (i) upon an assignment by the Member of all of its limited liability company interest in the Seller and the admission of the transferee pursuant to Sections 21 and 23 of the LLC Agreement, or (ii) the resignation of the Member and the admission of an additional member of the Seller pursuant to Sections 22 and 23 of the LLC Agreement), each person acting as an Independent Director pursuant to Section 10 of the LLC Agreement shall, without any action of any Person and simultaneously with the Member ceasing to be a member of the Seller, automatically be admitted to the Seller as a Special Member and shall continue the Seller without dissolution.  No Special Member may resign from the Seller or transfer its rights as a Special Member unless (i) a successor Special Member has been admitted to the Seller as Special Member by executing a counterpart to the LLC Agreement, and (ii) such successor has also accepted its appointment as Independent Director pursuant to Section 10 of the LLC Agreement; provided, however, the Special Members shall automatically cease to be members of the Seller upon the admission to the Seller of a substitute Member.
(e)The Independent Director shall not at any time serve as a trustee in bankruptcy for the Seller, Peabody or any Affiliate thereof;
(f)Any employee, consultant or agent of the Seller will be compensated from the Seller’s funds for services provided to the Seller.  The Seller will not engage any agents other than its attorneys, auditors and other professionals, and a servicer and any other agent contemplated by the Transaction Documents for the Receivables Pool, which servicer will be fully compensated for its services by payment of the Servicing Fee, and a manager, which manager will be fully compensated from the Seller’s funds;
(g)The Seller will contract with the Servicer to perform for the Seller all operations required on a daily basis to service the Receivables Pool.  The Seller will pay the Servicer the Servicing Fee pursuant hereto.  The Seller will not incur any material indirect or overhead expenses for items shared with Peabody (or any other Affiliate thereof) that are not reflected in the Servicing Fee.  To the extent, if any, that the Seller (or any Affiliate thereof) shares items of expenses not reflected in the Servicing Fee or the manager’s fee, such as legal, auditing and other professional services, such expenses will be allocated to the extent practical on the basis of actual use or the value of services rendered, and otherwise on a basis reasonably related to the actual use or the value of services rendered; it being understood that Peabody shall pay all expenses relating to the preparation, negotiation, execution and delivery of the Transaction Documents, including legal, agency and other fees;
(h)The Seller’s operating expenses will be paid by the Seller and not by Peabody or any other Affiliate thereof;
(i)All of the Seller’s business correspondence and other communications shall be conducted in the Seller’s own name and on its own separate stationery;
(j)The Seller’s books and records will be maintained separately from those of Peabody and any other Affiliate thereof and any other Person;
(k)All financial statements of Peabody or any Affiliate thereof that are consolidated to include Seller will contain detailed notes clearly stating that:  (i) a special purpose limited liability company  exists as a Subsidiary of Peabody, and (ii) the Originators have sold receivables and other related assets to the Contributor, which has contributed such receivables and other related assets to such special purpose Subsidiary that, in turn, has sold such receivables and other related assets to certain financial institutions and other entities;
(l)The Seller’s assets will be maintained in a manner that facilitates their identification and segregation from those of Peabody or any Affiliate thereof and any other Person;
(m)The Seller will strictly observe organizational formalities in its dealings with Peabody or any Affiliate thereof, and funds or other assets of the Seller will not be commingled with those of Peabody or any Affiliate thereof except as permitted by the Agreement in connection with servicing the Pool Receivables.  The Seller shall not maintain joint bank accounts or other depository accounts to which Peabody or any Affiliate thereof or any other Person has independent access, and the Seller shall use separate invoices and checks from any other Person.  The Seller is not named, and has not entered into any agreement to be named, directly or indirectly, as a direct or contingent beneficiary or loss payee on any insurance policy with respect to any loss relating to the property of Peabody or any Subsidiary or other Affiliate of Peabody (other than the Seller).  The Seller will pay to the appropriate Affiliate the marginal increase or, in the absence of such increase, the market amount of its portion of the premium payable with respect to any insurance policy that covers the Seller and such Affiliate;
(n)The Seller will maintain arm’s-length relationships with Peabody (and any Affiliate thereof).  Any Person that renders or otherwise furnishes services to the Seller will be compensated by the Seller at market rates for such services it renders or otherwise furnishes to the Seller.  Neither the Seller nor Peabody will be or will hold itself out to be responsible for the debts of the other or the decisions or actions respecting the daily business and affairs of the other.  The Seller and Peabody will immediately correct any known misrepresentation with respect to the foregoing, and they will not operate or purport to operate as an integrated single economic unit with respect to each other or in their dealing with any other entity; 
(o)Peabody shall not pay the salaries of Seller’s employees, if any;
(p)The Seller does not and will not hold itself responsible for the obligations of any other Person, and shall not guarantee or become liable for the debts of any other Person;
(q)The Seller will conduct its business in its own name and shall hold itself out as a separate entity from any other Person;
(r)The Seller shall maintain a sufficient number of employees and adequate capital in light of its contemplated business activities;
(s)The Seller shall not acquire the obligations or securities of any of its members; 
(t)The Seller will remain a wholly-owned subsidiary of a United States person (within the meaning of Section 7701(a)(30) of the Internal Revenue Code) and not be subject to withholding under Section 1446 of the Internal Revenue Code, and no action will be taken that would cause the Seller to (i) be treated other than as a “disregarded entity” within the meaning of U.S. Treasury Regulation § 301.7701-3 for U.S. federal income tax purposes or (ii) become an association taxable as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes; and
(u)The Seller shall not pledge its assets for the benefit of any other Person or make any loans or advances to any other Person, except pursuant to the Transaction Documents.

EXHIBIT V 
TERMINATION EVENTS
Each of the following shall be a “Termination Event”:
(a)(i) the Seller, Peabody, any Originator or the Servicer (if Peabody or any of its Affiliates) shall fail to perform or observe any term, covenant or agreement under the Agreement (other than those terms, covenants or agreements contained in Exhibit IV, Sections 1(a), 1(l) (except clause (iv) thereof), 2(a), and 2(l) (except clause (viii) thereof)) or any other Transaction Document and, except as otherwise provided herein, such failure shall continue for five consecutive Business Days after knowledge or notice thereof, (ii) the Seller or the Servicer shall fail to make when due any payment or deposit to be made by it under the Agreement and such failure shall continue unremedied for one Business Day, (iii) Peabody shall resign as Servicer, and no successor Servicer reasonably satisfactory to the Administrator shall have been appointed, or (iv) the Seller, Peabody, any Originator or the Servicer (if Peabody or any of its Affiliates) shall fail to perform or observe any term covenant or agreement in any of Exhibit IV, Sections 1(a), 1(l) (except clause (iv) thereof), 2(a), or 2(l) (except clause (viii) thereof) and, except as otherwise provided herein, such failure shall continue for thirty days after knowledge or notice thereof;
(b)Peabody (or any Affiliate thereof) shall fail to transfer to any successor Servicer when required any rights pursuant to the Agreement that Peabody (or such Affiliate) then has as Servicer;
(c)any representation or warranty made or deemed made by the Seller, Peabody or any Originator (or any of their respective officers) under or in connection with the Agreement or any other Transaction Document, or any information or report delivered by the Seller, Peabody or any Originator or the Servicer pursuant to the Agreement or any other Transaction Document, shall prove to have been incorrect or untrue in any material respect when made or deemed made or delivered, and shall remain incorrect or untrue for 10 Business Days after notice to the Seller or the Servicer of such inaccuracy;
(d)the Seller or the Servicer shall fail to deliver the Information Package pursuant to the Agreement, and such failure shall remain unremedied for two Business Days;
(e)the Agreement or any Investment or Reinvestment pursuant to the Agreement shall for any reason:  (i) cease to create a valid and enforceable perfected ownership or security interest in each Pool Receivable, the Related Security and Collections with respect thereto, free and clear of any Adverse Claim, or (ii) cease to create with respect to the Pool Assets, or the interest of the Administrator with respect to such Pool Assets shall cease to be, a valid and enforceable first priority perfected ownership or security interest, free and clear of any Adverse Claim;
(f)the Seller, Peabody or any Originator shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Seller, Peabody or any Originator seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Seller, Peabody or any Originator shall take any corporate or organizational action to authorize any of the actions set forth above in this paragraph;
(g)(i) the (A) Default Ratio shall exceed 2.25% or (B) the Delinquency Ratio shall exceed 4.50% or (ii) the average for three consecutive calendar months of:  (A) the Default Ratio shall exceed 1.75%, (B) the Delinquency Ratio shall exceed 3.50% or (C) the Dilution Ratio shall exceed 2.50%;
(h)a Change in Control shall occur;
(i)at any time the Purchased Assets Coverage Percentage exceeds 100%, and such circumstance shall not have been cured within two Business Days;
(j)(i) the occurrence of any Event of Default under and as defined in the Credit Agreement, provided that if the Credit Agreement is terminated but not replaced, the covenants in effect in the Credit Agreement immediately prior to termination of the Credit Agreement shall be deemed to be effective for the purposes of the Agreement; (ii) any other event shall occur or condition shall exist under the Credit Agreement and shall continue after the applicable grace period, if any, specified in such Credit Agreement if, in either case:  (a) the effect of such non-payment, event or condition is to give the applicable debtholders the right (whether acted upon or not) to accelerate the maturity of such Debt, or (b) any such Debt shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall be required to be made, in each case before the stated maturity thereof; or (iii) in the event that the Credit Agreement shall have terminated, and there exists any other financing arrangement evidencing $25,000,000 or more of indebtedness pursuant to which Peabody is a debtor or an obligor (an “Other Material Financing Agreement”); either (A) the occurrence of  any event of default under such Other Material Financing Agreement, or (B) any other event shall occur or condition shall exist under and shall continue after the applicable grace period, if any, specified in such Other Material Financing Agreement, if, in either case of (A) or (B): (i) the effect of such non-payment, event or condition is to give the applicable debtholders the right (whether acted upon or not) to accelerate the maturity of such Other Material Financing Agreement, or (b) any such Other Material Financing Agreement shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall be required to be made, in each case before the stated maturity thereof; 
(k)except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, either:  (i) a contribution failure shall occur with respect to any Benefit Plan sufficient to give rise to a lien on any of the assets of Seller, any Originator, Peabody or any ERISA Affiliate under Section 303(k) of ERISA, (ii) the Internal Revenue Service shall file a notice of lien asserting a claim or claims pursuant to the Internal Revenue Code with regard to any of the assets of Seller, any Originator, Peabody or any ERISA Affiliate and such lien shall have been filed and not released within 10 days, or (iii) the Pension Benefit Guaranty Corporation shall, or shall indicate its intention in writing to the Seller, any Originator, Peabody or any ERISA Affiliate to, either file a notice of lien asserting a claim pursuant to ERISA with regard to any assets of the Seller, any Originator, Peabody or any ERISA Affiliate or terminate any Benefit Plan that has unfunded benefit liabilities, or any steps shall have been taken to terminate any Benefit Plan subject to Title IV of ERISA so as to result in any liability and such lien shall have been filed and not released within 10 days;
(l)the Days’ Sales Outstanding exceed 40.0 days;
(m)[RESERVED]; or
(n)any Letter of Credit is drawn upon and, unless as a result of the LC Bank’s failure to provide the notice required by Section 1.16(b), not fully reimbursed pursuant to Section 1.16 (including, if applicable, with the proceeds of any funding by any Purchaser) within two Business Days from the date of such draw.

ANNEX A
to Receivables Purchase Agreement
FORM OF INFORMATION PACKAGE

(Attached)

ANNEX B
to Receivables Purchase Agreement
FORM OF INVESTMENT NOTICE

____________________, [20_____]
PNC Bank, National Association 
Three PNC Plaza, 4th Floor 
255 Fifth Avenue 
Pittsburgh, PA 15222‐2707
[Each Purchaser Agent]
Ladies and Gentlemen:
Reference is hereby made to the Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016 (as heretofore amended or supplemented, the “Receivables Purchase Agreement”), among P&L Receivables Company, LLC (“Seller”), Peabody Energy Corporation, as Servicer, the Persons from time to time party thereto as Sub-Servicers, the Persons from time to time party thereto as Conduit Purchasers, Committed Purchasers, Purchaser Agents and LC Participants, and PNC Bank National Association, as administrator (in such capacity, the “Administrator”) and as the issuer of letters of credit thereunder (in such capacity, the “LC Bank”).  Capitalized terms used in this Investment Notice and not otherwise defined herein shall have the meanings assigned thereto in the Receivables Purchase Agreement.
[This letter constitutes an Investment Notice pursuant to Section 1.2(a) of the Receivables Purchase Agreement.  Seller requests that the Purchasers make an Investment in a pool of receivables on ____________________, [20_____], in the amount of $____________________.  Subsequent to this Investment, the Aggregate Capital will be $____________________.]
[This letter constitutes a notice pursuant to Section 1.14(a) of the Receivables Purchase Agreement.  Seller desires that LC Bank issue a Letter of Credit with a face amount of $_____.  Subsequent to this issuance, the LC Participation Amount will be $_______ and the Aggregate Capital will be $_____.]
Seller hereby represents and warrants as of the date hereof, and as of the date of such [Investment] [issuance], as follows:
		
	(i)
	the representations and warranties contained in Exhibit III to the Receivables Purchase Agreement are true and correct in all material respects (except to the extent that such representations and warranties expressly relate to an earlier date, and in which case such representations and warranties are true and correct in all material respects as of such earlier date);

		
	(ii)
	no event has occurred and is continuing, or would result from the Investment or issuance requested hereby that constitutes a Termination Event;

		
	(iii)
	no Unmatured Termination Event exists and is continuing;

		
	(iv)
	the sum of the Aggregate Capital plus the LC Participation Amount, after giving effect to the Investment or issuance requested hereby, will not exceed the Purchase Limit;

		
	(v)
	after giving effect to the Investment or issuance requested hereby, the Purchased Assets Coverage Percentage shall not exceed 100%; and

		
	(vi)
	the Facility Termination Date has not occurred.

IN WITNESS WHEREOF, the undersigned has caused this Investment Notice to be executed by its duly authorized officer as of the date first above written.
P&L RECEIVABLES COMPANY, LLC 
 
 
By:     
Name:     
Title:    

ANNEX C
to Receivables Purchase Agreement
FORM OF PAYDOWN NOTICE

____________________, 20_____
PNC Bank, National Association 
Three PNC Plaza, 4th Floor 
255 Fifth Avenue 
Pittsburgh, Pennsylvania 15222‐2707
[Each Purchaser Agent]
Ladies and Gentlemen:
Reference is hereby made to the Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016 (as amended, supplemented or otherwise modified, the “Receivables Purchase Agreement”), among P&L Receivables Company, LLC, as Seller, Peabody Energy Corporation, as Servicer, the Persons from time to time party thereto as Sub-Servicers, the Persons from time to time party thereto as Conduit Purchasers, Committed Purchasers, Purchaser Agents and LC Participants, and PNC Bank, National Association, as Administrator and as the LC Bank.  Capitalized terms used in this paydown notice and not otherwise defined herein shall have the meanings assigned thereto in the Receivables Purchase Agreement.
This letter constitutes a paydown notice pursuant to Section 1.6(f)(i) of the Receivables Purchase Agreement.  The Seller desires to reduce the Aggregate Capital on ________________________, _____ by the application of $____________________ in cash to pay Capital and Discount to accrue (until such cash can be used to pay commercial paper notes) with respect to such Capital, together with all costs related to such reduction of the Aggregate Capital.  Subsequent to this Paydown, the Aggregate Capital will be $________________.
IN WITNESS WHEREOF, the undersigned has caused this paydown notice to be executed by its duly authorized officer as of the date first above written.
P&L RECEIVABLES COMPANY, LLC 
 
 
By:     
Name:     
Title:    

ANNEX D 
to Receivables Purchase Agreement
FORM OF COMPLIANCE CERTIFICATE
To:  PNC Bank, National Association, as Administrator, and [each Purchaser Agent]
This Compliance Certificate is furnished pursuant to that certain Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016, by and among P&L Receivables Company, LLC (“Seller”), Peabody Energy Corporation (the “Servicer”), the Persons from time to time party thereto as Sub-Servicers, the Persons from time to time party thereto as Conduit Purchasers, Committed Purchasers, Purchaser Agents and LC Participants, and PNC Bank, National Association (the “Administrator”) and as the LC Bank (the “Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1.    I am the duly elected ____________________ of Seller.
2.    I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and condition of Seller during the accounting period covered by the attached financial statements.
3.    The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes a Termination Event or an Unmatured Termination Event, as each such term is defined under the Agreement, during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth in paragraph 5 below.
4.    Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which Seller has taken, is taking, or proposes to take with respect to each such condition or event:
The foregoing certifications, together with the computations set forth in the financial statements delivered with this Certificate in support hereof, are made and delivered this _____ day of ____________________, 20___.
P&L RECEIVABLES COMPANY, LLC
By:____________________________ 
Name:__________________________ 
Title:___________________________

ANNEX E 
to Receivables Purchase Agreement

FORM OF LETTER OF CREDIT APPLICATION

(Attached)

ANNEX F 
to Receivables Purchase Agreement

FORM OF ASSUMPTION AGREEMENT
Dated as of [__________ __, 20__]
THIS ASSUMPTION AGREEMENT (this “Agreement”), dated as of [______ __, ____], is among P&L RECEIVABLES COMPANY, LLC (the “Seller”),  [________], as purchaser (the “[_____] Conduit Purchaser”), [________], as the related committed purchaser (the “[______] Committed Purchaser”), [________], as related lc participant (the “[_____] LC Participant” and together with the Conduit Purchaser and the Committed Purchaser, the “[_____] Purchasers”), and [________], as agent for the [_____] Purchasers (the “[______] Purchaser Agent” and together with the [_____] Purchasers, the “[_______] Purchaser Group”).
BACKGROUND
The Seller and various others are parties to that certain Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Purchase Agreement”). Capitalized terms used and not otherwise defined herein have the respective meaning assigned to such terms in the Receivables Purchase Agreement.    
NOW, THEREFORE, the parties hereto hereby agree as follows:
SECTION 1. This Agreement constitutes an Assumption Agreement pursuant to Section 1.4(g) of the Receivables Purchase Agreement.  The Seller desires [the [_____] Purchasers] [the [______] Committed Purchaser] [the [______] related LC Participant] to [become  Purchasers under] [increase its existing Commitment under] the Receivables Purchase Agreement and upon the terms and subject to the conditions set forth in the Receivables Purchase Agreement, the [________] Purchasers agree to [become Purchasers thereunder] [increase its Commitment in an amount equal to the amount set forth as the “Commitment” under the signature of such [______] Committed Purchaser hereto] [increase its Commitment in an amount equal to the amount set forth as the “Commitment” under the signature of such [______] related LC Participant hereto].    
Seller hereby represents and warrants to the [________] Purchasers as of the date hereof, as follows:
(i)  the representations and warranties of the Seller contained in Exhibit III of the Receivables Purchase Agreement are true and correct in all material respects on and as the date hereof as though made on and as of such date (except for representations and warranties which apply as to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date);
(ii)  no event has occurred and is continuing that constitutes a Termination Event or an Unmatured Termination Event; and
(iii)  the Facility Termination Date has not occurred.
SECTION 2.  Upon execution and delivery of this Agreement by the Seller and each member of the [______] Purchaser Group, satisfaction of the other conditions to assignment specified in Section 1.4(g) of the Receivables Purchase Agreement (including the written consent of the Administrator and each Purchaser Agent) and receipt by the Administrator and Seller of counterparts of this Agreement (whether by electronic mail or otherwise) executed by each of the parties hereto, [the [_____] Purchasers shall become a party to, and have the rights and obligations of Purchasers under, the Receivables Purchase Agreement][the [______] Committed Purchaser shall increase its Commitment in the amount set forth as the “Commitment” under the signature of the [______] Committed Purchaser hereto][the [______] related LC Participant shall increase its Commitment in the amount set forth as the “Commitment” under the signature of the [______] related LC Participant hereto].
SECTION 3.  Each party hereto hereby covenants and agrees that it will not institute against, or join any other Person in instituting against,  any Conduit Purchaser, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after the latest maturing Note issued by such Conduit Purchaser is paid in full. The covenant contained in this paragraph shall survive any termination of the Receivables Purchase Agreement.
SECTION 4.  THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.  This Agreement may not be amended, supplemented or waived except pursuant to a writing signed by the party to be charged.  This Agreement may be executed in counterparts, and by the different parties on different counterparts, each of which shall constitute an original, but all together shall constitute one and the same agreement.
(continued on following page)

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers as of the date first above written.

[___________], as a Conduit Purchaser
By:    
Name Printed:
Title:

[Address]
[___________], as a Committed Purchaser
By:    
Name Printed:
Title:
[Address]
[Commitment]

[___________], as a related LC Participant
By:    
Name Printed:
Title:
[Address]
[Commitment]
[_____________], as Purchaser Agent for [_________]
By:    
Name Printed:
Title:

[Address]    

P&L RECEIVABLES COMPANY, as Seller
By:____________________________
Name Printed:
Title:

Consented and Agreed:
PNC BANK, NATIONAL ASSOCIATION, as Administrator
By:____________________________
Name Printed:  
Title:

Address:    PNC Bank, National Association
Three PNC Plaza
255 Fifth Avenue
Pittsburgh, Pennsylvania 15222-2707

PNC BANK, NATIONAL ASSOCIATION, as LC Bank
By:____________________________
Name Printed:  
Title:

Address:    PNC Bank, National Association
500 First Avenue
Third Floor
Pittsburgh, Pennsylvania 15219

[THE PURCHASER AGENTS]

By:___________________________
Name Printed:
Title:

[Address]

 
ANNEX G 
to Receivables Purchase Agreement

FORM OF TRANSFER SUPPLEMENT
Dated as of [_______ __, 20__]
Section 1.
Commitment assigned:    $_________
Assignor’s remaining Commitment:    $_________
Capital allocable to Commitment assigned:    $_________
Assignor’s remaining Capital:    $_________
Discount (if any) allocable to
Capital assigned:    $_________
Discount (if any) allocable to Assignor’s
remaining Capital:    $_________

Section 2.
Effective Date of this Transfer Supplement:   [__________]
Upon execution and delivery of this Transfer Supplement by transferee and transferor and the satisfaction of the other conditions to assignment specified in Section 5.3(c) of the Receivables Purchase Agreement (as defined below), from and after the effective date specified above, the transferee shall become a party to, and have the rights and obligations of a Committed Purchaser under, the Fifth Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2016 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Purchase Agreement”), among P&L Receivables Company, LLC, as Seller, Peabody Energy Corporation, as initial Servicer, the various Sub-Servicers, Purchasers and Purchaser Agents from time to time party thereto, and PNC Bank, National Association, as Administrator and as LC Bank.
ASSIGNOR:    [_________], as a Committed Purchaser

By:______________________  Name:____________________
Title:___________________     
ASSIGNEE:    [_________], as a Purchasing Committed Purchaser

By:___________________
Name:_________________
Title:________________     
[Address]
Accepted as of date first above
written:
[___________], as Purchaser Agent for
the [______] Purchaser Group
By:_________________________     
Name:____________________     
Title:___________________

II-1
719921903 05109795

ANNEX H 
to Receivables Purchase Agreement

FORM OF INTERIM REPORT
(attached)

Annex H-1
719921903 05109795EX-10.1

 Exhibit 10.1 

PURCHASE AND SALE AGREEMENT 

This Purchase and Sale Agreement (“Agreement”), made by and between Nob Hill Storage Limited Partnership, a Florida limited
partnership (referred to herein as the “Seller”), having its principal office at 280 NE 2nd Avenue, Delray Beach, Florida 33444 and SST II Acquisitions, LLC, a Delaware limited
liability company (herein called “Buyer”), having its principal office at 111 Corporate Drive, Suite 120, Ladera Ranch, CA 92694, Attn: H. Michael Schwartz, or its permitted assigns. Buyer and Seller are collectively referred to
herein as the “Parties”. 
 W I T N E S S E T H: 

WHEREAS, Seller owns a certain self-storage facility together with adjacent land located at 10325 W. Broward Blvd., Plantation, Florida,
33324, known as “Security Self Storage” (the “Project”). 
 WHEREAS, Seller wishes to sell the Property (as
hereinafter defined) to Buyer; 
 WHEREAS, Buyer desires to acquire the Property upon the happening of certain events contained herein; 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good and valuable consideration, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereby agree as follows: 
 1. PROPERTY. The purchase and sale shall include all of Seller’s
right, title and interest in and to the following (collectively referred to as the “Property”): 
 A. The Project, including:
(i) the land occupied by such self-storage facility (the “Land”), as more particularly described on Exhibit A attached hereto, together with (a) all and singular the easements, rights-of-way, rights (including,
without limitation, all development rights, declarant’s rights, air rights, water rights and riparian rights, if any), strips and gores, privileges, benefits, tenements, hereditaments and appurtenances thereunto belonging or in anywise
appertaining, and (b) all right, title and interest of Seller in and to any land lying in the bed of any street, road, avenue or alley, open or proposed, public or private, in front of, behind, or otherwise adjoining the Land, or any part of
the Land, and (ii) all buildings, structures, fixtures, facilities, installations and other improvements of every kind and description now or hereafter in, on, over and under the Land (the “Improvements”), including, without
limitation, any and all plumbing, air conditioning, heating, ventilating, mechanical, electrical and other utility systems, and fixtures, parking lots and facilities, landscaping, roadways, fences, sidewalks, maintenance buildings, security devices,
signs and light fixtures (the Land and Improvements are collectively referred to as the “Real Property”). 
 B. All
furniture, furnishings, vehicles, equipment, machinery and other tangible personal property and fixtures of every kind and description owned by Seller located on the Real Property and used in connection with the operation, ownership or management of
the Real Property (the “Personal Property”), including without limitation the items set forth on Schedule 1 attached hereto, but specifically excluding the items noted as excluded on Schedule 1. 

 C. All present and subsequent leases of the Real Property with tenants and/or other occupancy
agreements, together with all pending applications for tenancy (collectively, the “Leases”), i.e., those leases, a list of which is set forth on Schedule 9 attached hereto, and all tenant guarantees, if any, and security
deposits under the Leases except to the extent applied by Seller pursuant to the terms of the Leases. 
 D. To the extent assignable, all
service and maintenance contracts and equipment leases affecting the Real Property, i.e., those contracts and equipment leases listed on Schedule 2 attached hereto (the “Service Contracts”), excluding any Service Contracts
rejected by Buyer as set forth in Section 4(E) below. 
 E. To the extent assignable and to the extent same exists, all of
Seller’s rights in and to all warranties and guaranties made by or received from any person or entity with respect to any building component, machinery, equipment, fixture or material comprising a part of any Improvement or with respect to any
Personal Property (collectively, “Warranties”); 
 F. All current on-site books and records exclusively pertaining to the
current operation of the Property, to the extent in Seller’s possession or in the possession of the management agent of the Property (collectively, “Books and Records”), excluding any “Privileged Materials” (i.e.,
(i) all communications between the Seller or any party affiliated with the Seller in connection with the Seller’s ownership and operation of the Property (a “Seller Party”) and any attorney for such Seller Party or any
other Seller Party, and (ii) evaluations, analyses and communications among any Seller Party and any person regarding the Property, Buyer, the transaction evidenced by this Agreement, or Seller’s marketing of the Property, which
evaluations, analyses and communications are intended by any Seller Party to be confidential; 
 G. All of Seller’s interest, if any,
in the right to the use of all existing telephone numbers used by Seller at the Property, together with any rights of the Seller to the use of the transferable telephone exchange numbers, logos, designs, trade names, including but not limited to
trade name: Security Self Storage Boxes & Packaging Supplies Inc., trademarks, service marks, copyrights, and other intellectual property, including the website presently being used by the Seller or assigns, including any domain
registrations and administrator rights in connection therewith (collectively, “Intangible Property”); except Seller makes no warranty of title or usage with respect to any of the above listed Intangible Property. 

H. To the extent assignable and available, all licenses, permits, building inspection approvals, certificates of occupancy, approvals,
subdivision maps and entitlements, if any, issued, approved or granted by Governmental Authorities (as defined below) in connection with the Real Property (collectively, “Licenses and Permits”). 

I. All of Seller’s interest in, if any, and to the extent available or in Seller’s possession, all plans and specifications,
engineering plans and studies, as-built drawings, floor plans, and landscape plans pertaining to the Real Property in Seller’s actual possession (the “Plans and Specs”). 

  
 2 

 The Property does not include Seller’s cash, cash equivalents, deposit accounts, prepaid
insurance or other items, amounts held in escrow by Seller’s lender or deposits with utility or service providers, except to the extent a credit is provided to Buyer at Closing. 

2. PURCHASE PRICE; DEPOSIT. 
 A. The purchase
price for the Property shall be Thirty Six Million Three Hundred Eighteen Thousand Seven Hundred Eighty Two and 50/100 Dollars ($36,318,782.50) (the “Purchase Price”). 

In addition to all other terms and provisions hereunder regarding Closing, it shall be a condition to Closing for the Buyer and its
affiliates, on the one hand, and Seller and its affiliates on the other hand, to close simultaneously under those certain companion purchase and sale agreements listed on Schedule 10 attached hereto (the “Companion Agreements”),
except as may be otherwise expressly set forth herein. Nothing herein referencing the obligations of the Buyer to close under the Companion Agreements shall in any way modify or abrogate the Buyer’s absolute obligation to close under this
Agreement strictly in accordance with the terms and provisions hereof. 
 The Purchase Price including the Deposit (hereinafter referred to,
payable in accordance with this provision) and all other payments hereunder shall be payable by wire transfer of immediately available federal funds to the “Escrow Agent” (as defined in Section 5(B) below). 

B. Within three (3) business days following the Effective Date, Buyer shall deposit the sum of Three Million and No/100 Dollars
($3,000,000.00) (the “Initial Deposit”) with the Escrow Agent, covering the initial earnest money deposit obligations of Buyer under this Agreement, the Companion Agreements and the “Asheville Contract” (as defined below),
which Initial Deposit shall be allocated among the properties covered by such Purchase and Sale Agreements as set forth on Exhibit “B” attached hereto. For the avoidance of doubt, it is understood and agreed that the Initial Deposit
consists of an aggregate of Three Million and No/100 Dollars ($3,000,000.00), which will constitute the required initial earnest money deposits under this Agreement, the Companion Agreements and the Asheville Contract. Within two (2) business
days after expiration of the Due Diligence Period (as defined in Section 4(B), provided Buyer has not terminated this Agreement in accordance with the terms hereof, Buyer shall deposit an additional Three Million and No/100 Dollars
($3,000,000.00) with Escrow Agent (the “Additional Deposit”) covering the Additional Deposit obligations of Buyer for this Agreement and the additional deposit obligations of Buyer under the Companion Agreements and the Asheville
Contract, which Additional Deposit shall be allocated among the properties covered by such Purchase and Sale Agreements as set forth on Exhibit “B” attached hereto. For the avoidance of doubt, it is understood and agreed that the
Additional Deposit consists of an aggregate of Three Million and No/100 Dollars ($3,000,000.00), which will constitute the required additional earnest money deposits under this Agreement, the Companion Agreements and the Asheville Contract. The
Initial Deposit and the Additional Deposit, if made, with any interest earned thereon, if any, are hereinafter referred to collectively as the “Deposit”. If this Agreement is not terminated during the Due Diligence Period, the
Deposit shall be non-refundable except in the event of a Seller default, casualty, condemnation or environmental issue as more particularly set forth herein, or except as may be otherwise expressly set forth in this Agreement. 

  
 3 

 C. By executing the Receipt as provided herein, Escrow Agent hereby acknowledges receipt by
Escrow Agent of the Initial Deposit paid by Buyer to be applied to the Purchase Price of the Property as set forth on Exhibit “B” and in accordance with Paragraph 9 herein. The Escrow Agent also acknowledges that the Initial Deposit
constitutes the required earnest money deposits under this Agreement, the Companion Agreements and the Asheville Contract under the terms hereof and thereof. Escrow Agent agrees to hold, keep and deliver said Deposit and all other sums delivered to
it pursuant hereto in accordance with the terms and provisions of this Agreement. Upon receipt of the Deposit, Escrow Agent shall invest the Deposit in an interest-bearing account with a federally-insured financial institution acceptable to Buyer,
which will be applied at Closing to the Purchase Price. Any interest earned on the Deposit shall be considered part of the Deposit and shall be deemed to have been earned by and constitute taxable income of Buyer. At Closing of this Agreement, and
the simultaneous closing under each of the Companion Agreements, Escrow Agent shall (i) release the portion of the Deposit to Seller, as set forth on Exhibit “B”, which portion shall be credited against the Purchase Price due
hereunder at Closing, and (ii) release the earnest money deposits under each of the Companion Agreements to the respective sellers thereunder in accordance with the terms of each of the Companion Agreements, and in accordance with Exhibit
“B”, which earnest money deposits shall be credited against the purchase price owed by Buyer to the sellers under each of the Companion Agreements, respectively. At such time, the remainder of the Deposit shall continue to be held by
Escrow Agent pursuant to the terms of the Asheville Contract, to be applied as provided therein. 
 Escrow Agent may charge such customary
and usual fees for its services in holding the Deposit hereunder, which fees shall be equally split among Seller and Buyer. Escrow Agent shall be liable only to hold said sums and deliver the same to the parties named herein in accordance with the
provisions of this Agreement, it being expressly understood that by acceptance of this Agreement, Escrow Agent is acting in the capacity of a depository only and shall not be liable or responsible to anyone for any damages, losses or expenses unless
same shall have been caused by the negligence or willful malfeasance of Escrow Agent. In the event of any disagreement between Buyer and Seller resulting in any adverse claims and demands being made in connection with or for the monies involved
herein or affected hereby, Escrow Agent shall be entitled to refuse to comply with any such claims or demands so long as such disagreement may continue; and in so refusing Escrow Agent shall make no delivery or other disposition of any of the monies
then held by it under the terms of this Agreement, and in so doing Escrow Agent shall not become liable to anyone for such refusal; and Escrow Agent shall be entitled to continue to refrain from acting until (a) the rights of the adverse
claimants shall have been finally adjudicated in a court of competent jurisdiction of the monies involved herein or affected hereby, or (b) all differences shall have been adjusted by agreement between Seller and Buyer, and Escrow Agent shall
have been notified in writing of such agreement signed by the parties hereto. Provided Buyer has not terminated this Agreement in accordance with the terms hereof, following Buyer’s deposit of the Additional Deposit, Escrow Agent shall not be
required to disburse any of the monies held by it under this Agreement unless in accordance with either a joint written instruction of Buyer and Seller or an Escrow Demand from either Buyer or Seller in accordance with the provisions hereinafter.
Except as provided below, other than a joint closing 

  
 4 

 
direction from the Buyer and Seller to disburse monies upon Closing, upon receipt by Escrow Agent from either Buyer or Seller (the “Notifying Party”) of any notice or request
(the “Escrow Demand”) to perform any act or disburse any portion of the monies held by Escrow Agent under the terms of this Agreement, Escrow Agent shall give written notice to the other party (the “Notified
Party”). If within five (5) days after the giving of such notice, Escrow Agent does not receive any written objection to the Escrow Demand from the Notified Party, Escrow Agent shall comply with the Escrow Demand. If Escrow Agent does
receive written objection from the Notified Party in a timely manner, Escrow Agent shall take no further action until the dispute between the parties has been resolved pursuant to either clause (a) or (b) above. Further Escrow Agent shall
have the right at all times to pay all sums held by it (i) to the appropriate party under the terms hereof, or (ii) into any court of competent jurisdiction after a dispute between or among the parties hereto has arisen, whereupon Escrow
Agent’s obligations hereunder shall terminate. 
 Notwithstanding the foregoing to the contrary, in the event Buyer timely exercises Buyer’s right
to terminate this Agreement during the Due Diligence Period, the Deposit shall be immediately returned to Buyer, without the consent or joinder of Seller being required and notwithstanding any instructions to the contrary which might be provided by
Seller, and Seller shall not have any right to object thereto and, pursuant hereto, all Companion Agreements (by this provision incorporated into each Companion Agreement) shall also terminate (whereupon all earnest money deposits under each
Companion Agreement similarly shall be returned to Buyer, without the consent or joinder of the seller under such Companion Contract being required and notwithstanding any instructions to the contrary which might be provided by such seller), and no
party hereto shall have any further obligation under this Agreement except for such obligations which, by their terms, expressly survive the termination of this Agreement. In the event Buyer terminates this Agreement for any other reason then,
except as may be otherwise expressly set forth in this Agreement, Escrow Agent may only release the Deposit upon the joint mutual written instructions of Seller and Buyer. 

Seller and Buyer jointly and severally agree to indemnify and hold harmless said Escrow Agent from any and all costs, damages and expenses, including
reasonable attorneys’ fees, that said Escrow Agent may incur in its compliance of and in good faith with the terms of this Agreement; provided, however, this indemnity shall not extend to any act of negligence or willful malfeasance on the part
of the Escrow Agent. 
 3. COSTS. Upon Closing, Seller shall pay (a) all documentary stamp taxes, excise taxes, surtaxes, transfer taxes or similar
taxes due on recording the Deed or otherwise payable in connection with the transfer of the Property, (b) all costs and expenses relating to retirement of any and all indebtedness secured by the Property, including without limitation prepayment
penalties, yield maintenance fees, defeasance costs and the costs of recording all mortgage cancellations, and (c) all costs relating to the base owner’s policy of title insurance (the “Title Policy”) to be delivered by Seller to
Buyer at Closing pursuant to the terms hereof. However, at Closing, Buyer shall contribute an aggregate amount of $100,000 (the “Contribution”) to the Seller’s cost of title insurance. The Contribution shall be allocated amongst this
Agreement and the Companion Agreements in Seller’s discretion. Buyer shall pay (r) all recordation or similar mortgage taxes due on any Buyer financing, (s) all recording fees relating to the Deed, (t) all of Buyer’s
attorneys’ fees, (u) all costs in connection with Buyer’s due diligence (including the cost of all environmental studies conducted by Buyer), (v) all costs relating to extended coverage

  
 5 

 
and/or any endorsements desired by Buyer with respect to the Title Policy, (w) all survey costs, (x) all Buyer’s financing costs, (y) any sales tax due on the Personal
Property, and (z) all other costs and expenses incidental to or in connection with closing this transaction customarily paid for by the buyer of similar property. Upon Closing, Seller additionally shall pay all of Seller’s attorneys’
fees, and all other costs and expenses incidental to or in connection with closing this transaction customarily paid for by the seller of similar property. 

4. DUE DILIGENCE PERIOD; TERMINATION RIGHT.  

A. From and after the date hereof, and until the sooner of Closing or the termination of this Agreement, Buyer may cause one or more
surveyors, attorneys, engineers, auditors, architects, and/or other experts of its choice to undertake an investigation into all aspects of the Property including, by way of illustration and not of limitation, title, structural integrity, evaluation
of physical condition and mechanical, plumbing, electrical and HVAC systems, existence of hazardous substances or other environmental contamination concerns, surveys, engineering, economic feasibility, rent rolls, fitness for Buyer’s intended
purposes and permits and approvals required for operation or future development. Seller shall give Buyer access and entry on the Property at all reasonable times. 

Seller Deliverables. On or before the fifth (5th) business day following the
Effective Date, Seller shall deliver to Buyer or shall make available at the Property (to the extent not already provided to Buyer), for Buyer’s examination and copying (at Buyer’s expense), copies of all of the following listed on
Schedule 3 hereto (collectively, “Seller Deliverables”) to the extent in the possession of Seller or its agent. After the expiration of the Due Diligence Period, Buyer shall not have any option to condition its obligation to
close the transaction based on a claim that the Seller Deliverables are deficient or incomplete. 
 During the Due Diligence Period, and until Closing, for
any entry onto the Property, subject to the rights of tenants under the Leases, Buyer shall give Seller twenty four hours’ written or telephonic notice prior to any entry onto the Property by Buyer or any of its representatives or agents.
Seller shall have the right to have one or more representatives accompany Buyer on all such inspections and Buyer shall not be permitted to enter the Property without a representative of Seller unless Seller has declined to have a representative
present. After the expiration of the Due Diligence Period and the posting of its Additional Deposit Buyer may enter the Property without a Seller representative provided that Buyer provides Seller twenty-four hours’ notice. Notwithstanding
anything to the contrary herein, Seller shall have no liability whatsoever to Buyer with respect to any matter disclosed in the Seller’s Deliverables, or actually known by Buyer or its agents or counsel prior to the end of the Due Diligence
Period, subject to Seller’s representations and warranties set forth in this Agreement and in the documents delivered at Closing. 
 B.
Unless Buyer shall give Seller written notice that Buyer has elected to terminate this Agreement on or before 5:00 p.m. Eastern Time on the forty fifth (45th) day following the Effective Date
(the “Due Diligence Period”), then the Agreement shall proceed to Closing and the Deposit shall be non-refundable to Buyer, except in the event of a Seller default or as otherwise expressly set forth in this Agreement. If Buyer
timely terminates this Agreement as set 

  
 6 

 
forth above, then this Agreement, and all Companion Agreements shall, thereafter, be deemed null, void and of no further force or effect, the Deposit shall be returned to Buyer, without the
consent or joinder of Seller being required and notwithstanding any instructions to the contrary which might be provided by Seller, and neither party shall have any further rights or obligations under this Agreement, or under any Companion
Agreement, except for those provisions that expressly survive the termination of this Agreement and the Companion Agreements. If not so terminated by Buyer, then this Agreement shall continue in full force and effect according to its terms, Buyer
shall deposit the Additional Deposit within two (2) business days after the expiration of the Due Diligence Period in accordance with Section 2B, and the Deposit shall be nonrefundable except as otherwise expressly set forth herein.
If Buyer terminates as set forth above, Buyer shall provide all written reports (whether hard copies or electronic) obtained by Buyer during its Due Diligence to the Seller and in Buyer’s possession or control within ten (10) business days
after termination, provided the preparer of such report consents to such delivery to Seller, which reports shall be provided without representation or warranty of any kind, and shall return to Seller all Seller Deliverables provided to the Buyer at
no cost and all other electronic and hard copies of any Due Diligence information and Seller Deliverables shall be destroyed by the Buyer. 

C. Buyer shall be responsible for payment of all of the costs of its due diligence activities, including without limitation all engineering
and environmental reports and surveys, and all financial and Lease audits. Buyer shall be liable for all damage or injury to any person or property resulting solely from or arising solely out of any such inspection, testing, investigation or survey
by Buyer, except for any liability arising out of any (i) pre-existing conditions at the Property, (ii) environmental conditions which exist on the Property not as a result of the actions of Buyer, (iii) diminution in value resulting
from the discovery by Buyer of any conditions which exist on the Property not as a result of Buyer’s acts, and (iv) Seller’s or Seller’s agents’ employees’ or representatives’ negligence, intentional acts, or
willful misconduct, and Buyer shall indemnify, defend and hold harmless Seller and its agents, employees, officers, directors, affiliates, advisors, and management company from any loss, liability or damage resulting therefrom, excluding liabilities
arising out of the matters described in subparagraphs (i) through (iv) above. Buyer shall indemnify and hold Seller harmless from and against any and all loss, claims, damage and expense arising out of entry by Buyer or its agents onto the
Property and any testing performed thereon, other than with respect to the items set forth in (i)-(iv) above. Buyer shall restore the Property to substantially its condition existing immediately prior to Buyer’s inspection, testing,
investigation and survey thereof. Buyer shall take reasonable efforts to cause its entry, inspections and testing (if any) to be conducted in a manner so as to minimize disruption to staff and tenants at the Property, but in no event shall Buyer
cause any disruption to any tenant which would violate any tenant’s lease. Buyer shall conduct no invasive tests upon the Real Property or the Improvements without the prior, written permission of the Seller. 

D. Buyer shall maintain commercial general liability insurance with broad form contractual and personal injury liability endorsements with
respect to Buyer’s activities on the Property pursuant to this Section 4, naming Seller and Mindful Management, LLC as additional named insureds. Such liability insurance shall be on an occurrence basis and shall provide combined single
limit coverage of not less than Two Million Dollars ($2,000,000.00) (per occurrence and in the aggregate) for bodily injury, death and property damage, by water or otherwise. The provisions of this Section 4D shall survive the Closing or
termination of this Agreement. 

  
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 E. Buyer will notify Seller of any Service Contracts it wishes to terminate within two
(2) business days prior to the expiration of the Due Diligence Period, and Seller will provide timely notification under the notice provisions of such Service Contracts to any such service contract provider whose contract is capable of being
terminated without cancellation or termination payment thereunder, that such contract is terminated effective as of the date of the Closing. If any such service contract is not capable of being terminated without payment of a cancellation fee, Buyer
agrees, during the Due Diligence Period to either accept such Service Contract, or provide Seller a credit for such cancellation fee at Closing, in which latter event Seller shall cause such Service Contract to be terminated effective as of the date
of the Closing. 
 5. TITLE; TITLE EXAMINATION; OBJECTIONS TO TITLE. 

A. Seller shall convey to Buyer good and marketable fee simple title to the Real Property by the Deed (defined in Section 11
(A)(1) below), together with the benefit of all easements that benefit the Real Property, subject to the following (collectively items (i) – (iii), the “Permitted Exceptions”): (i) the Leases (but without any party under
the Leases having any right or option to purchase all or any portion of the Property); (ii) ad valorem real estate taxes for the current year and subsequent years which are not yet due and payable; and (iii) any other exceptions not
objected to by Buyer under Section 5C. Buyer shall have an opportunity to review the foregoing Permitted Exceptions and make objections in accordance with Section 5C below. Title to the Personal Property purchased herein
shall be conveyed to Buyer by Bill of Sale in their “as is” condition as of Closing, free and clear of all liens and encumbrances. 

B. Seller shall deliver to Buyer within five (5) days after the Effective Date (to the extent not already delivered) a copy of its most
recent policy for title insurance in its actual possession. Within ten (10) business days after execution of this Agreement by both parties, Seller will deliver to Buyer a current title commitment (the “Title Commitment”)
relating to the Property showing Buyer as the proposed insured in the amount of the Purchase Price from First American Title Insurance Company, Attention: Yessie A. Gonzalez, 2121 Ponce de Leon Boulevard, Suite 710, Coral Gables, Florida 33134;
phone: 1-305-908-6253; yegonzalez@firstam.com (herein referred to as “Escrow Agent” or the “Title Company”), together with legible copies of all title exceptions listed therein. Seller will provide to Buyer its most recent
survey of the Real Property (if not already delivered) within five (5) days of execution of this Agreement, if any such survey is available. Buyer may order an updated survey (the “Survey”) at its sole cost and expense. 

C. If the Title Commitment or the Survey of the Real Property discloses exceptions to title other than those Permitted Exceptions listed in
Section 5(A)(i) and (ii) above, and any such exception is not acceptable to Buyer, in its sole discretion, then Buyer shall be entitled to object to same (all items so objected to being hereinafter collectively referred to as the
“Title Objections”), pursuant to a written notice to Seller (the “Title Objection Notice”), which Title Objection Notice shall be provided to Seller not later than thirty (30) days following Buyer’s
receipt of the Title Commitment, legible copies of all title exceptions listed therein and the Survey (the “Title Review Period”). In the event Buyer fails to deliver a Title Objection Notice

  
 8 

 
prior to the end of the Title Review Period then Buyer shall be deemed to have accepted all specific title exceptions set forth in the Title Commitment and all of such items shall be deemed
included among the Permitted Exceptions. 
 D. Seller shall have the right, but not the obligation, within ten (10) business days
following the receipt by Seller of the Title Objection Notice (the “Correction Period”) to remove any such Title Objections, or otherwise cure such Title Objections or provide written assurances reasonably satisfactory to Buyer that
such Title Objections will be removed or otherwise cured on or before the Closing Date. If Seller is unwilling or unable to cure or remove any of the Title Objections, Seller shall give notice to Buyer within the Correction Period, but if no such
notice is given, Seller shall be deemed to be unwilling or unable to cure the Title Objections. 
 E. If Seller is unwilling or unable to
remove or otherwise cure any of the Title Objections to Buyer’s sole satisfaction, then Buyer, in its sole discretion, shall have the right to terminate this Agreement and all Companion Agreements by written notice to Seller given within five
(5) business days following the expiration of the Correction Period (the “Buyer Response Period”), in which event the Deposit shall be returned to Buyer, without the consent or joinder of Seller being required and notwithstanding any
instructions to the contrary which might be provided by Seller. If Buyer fails to terminate this Agreement within the Buyer Response Period, then Buyer shall be deemed to have waived all Title Objections, other than those which Seller has agreed to
cure, and all Title Objections shall be deemed included among the Permitted Exceptions, other than those Title Objections which Seller has agreed to remove or cure during the Correction Period. If Seller elects during the Correction Period to remove
any Title Objections or to cure any Title Objections on or before the Closing Date, and Seller fails to remove or cure such Title Objections at the time of the Closing, but has undertaken the necessary steps to remove or cure same, but through no
fault of Seller the removal or cure cannot be accomplished by Closing, then Closing shall be extended for a reasonable time (but no longer than thirty (30) days) to permit Seller to effectuate the removal or cure, however such extension of the
Closing shall not result in an extension of the closing under the Companion Agreements. If after such extension period Seller is still not able to deliver title clear of such Title Objections, then Seller shall be in default under this Agreement.

 F. Notwithstanding anything to the contrary contained herein, Seller shall be obligated to remove (or to cause the Title Company to
affirmatively insure over in a manner satisfactory to Buyer, in its sole discretion) at the expense of Seller: (a) any mortgages, deeds of trust or financing statements to secure debt; (b) any mechanic’s or materialman’s lien for
work done on the Real Property on behalf of Seller; and (c) any other monetary lien against the Real Property or other title matter resulting from any act or omission of Seller, its agents, employees and/or contractors. 

G. In the event that any update to the Title Commitment or Survey indicates the existence of any liens, encumbrances or other defects or
exceptions (the “Unacceptable Encumbrances”) which were not shown in the initial title commitment or Survey and that are unacceptable to Buyer, in its sole discretion, Buyer shall within five (5) days after receipt of any such
update to the Title Commitment or Survey notify Seller in writing of its objection to any such Unacceptable Encumbrance (the “Unacceptable Encumbrance Notice”). Notwithstanding 

  
 9 

 
anything to the contrary contained herein, Seller shall have no obligation to take any steps or bring any action or proceeding or otherwise to incur any expense whatsoever to eliminate or modify
any of the Unacceptable Encumbrances; provided, however, that Seller shall, prior to Closing, eliminate by paying, bonding around or otherwise discharging in a manner satisfactory to Buyer any Unacceptable Encumbrances described in
Section 5(F)(a) through (c) above. In the event Seller is unable, unwilling or for any reason fails to eliminate or modify all of the Unacceptable Encumbrances to the sole satisfaction of Buyer (other than the Unacceptable Encumbrances
required to be removed by Seller in accordance with the preceding sentence), Buyer may terminate this Agreement and all Companion Agreements by delivering notice thereof in writing to Seller by the earliest to occur of (i) the Closing Date,
(ii) five (5) days after Seller’s written notice to Buyer of Seller’s intent to not cure one or more of such Unacceptable Encumbrances, or (iii) ten (10) days after the Unacceptable Encumbrance Notice, in the event
Seller does not timely respond thereto, whereupon the Deposit shall be returned to Buyer, without the consent or joinder of Seller being required and notwithstanding any instructions to the contrary which might be provided by Seller. 

6. SECTION 1031 EXCHANGE. Seller may convey the Property as part of a tax deferred exchange for the benefit of Seller pursuant to Section 1031 of
the Internal Revenue Code. With respect thereto, Seller may assign all of Seller’s contract rights and obligations hereunder to an exchange accommodation titleholder or a qualified intermediary, as part of, and in furtherance of, such tax
deferred exchange. Seller shall have the right to direct the application of the portion of the Deposit allocable to the Property held by the Escrow Agent to the Qualified Intermediary as directed by the Qualified Intermediary as part of the
exchange. Buyer agrees to assist and cooperate in such exchange for the benefit of Seller at no cost, expense or liability to Buyer and without reduction or alteration of the rights of Buyer under this Agreement; and Buyer further agrees to execute
any and all documents (subject to the reasonable approval of Buyer’s legal counsel) as are reasonably necessary in connection with such exchange at Seller’s sole expense provided that Buyer shall not be required to undertake any liability
or obligation in so doing and provided that such exchange does not extend the Closing Date. As part of such exchange, Seller shall convey the Property directly to Buyer and Buyer shall not be obligated to acquire or convey any other property as part
of such exchange. Further, in order for Seller’s owners/partners to accomplish a Section 1031 exchange, Seller may, immediately prior to Closing, assign this Agreement to such related parties, pursuant to an instrument of assignment in
form reasonably satisfactory to Buyer, pursuant to which such assignee assumes Seller’s obligations under this Agreement. Notwithstanding the foregoing, Seller shall remain liable for all obligations hereunder notwithstanding such assignment.
Seller shall indemnify, hold harmless and defend Buyer from and against any and all claims, demands, causes of action, liabilities, losses, costs, damages and expenses (including reasonable attorneys’ fees and expenses and court costs incurred
in defending any such claim or in enforcing this indemnity) that may be incurred by Buyer and arising out of Buyer’s participation in such exchange for the benefit of Seller, which obligation shall survive the Closing. Notwithstanding the
foregoing, should Seller fail to effect a tax deferred exchange as contemplated in this Section 6 for any reason, then the sale by Seller of the Property shall be consummated in accordance with terms and conditions of this Agreement just as
though the provisions of this Section 6 had been omitted from this Agreement, except that Buyer shall be reimbursed and indemnified from resulting costs and expenses as provided in this Section. Nothing contained in this Section 6 shall
release Seller of any of its obligations or 

  
 10 

 
liabilities under this Agreement, whether accruing before, at or after Closing, nor shall anything contained in this Section 6 impose any liability or obligation on Buyer with respect to the
tax consequences of this transaction to Seller. 
 7. REPRESENTATIONS AND WARRANTIES OF SELLER; SELLER’S AUTHORITY. 

A. Representations of the Seller. Seller represents and warrants to Buyer the following: 

1. The Seller has been duly organized and is validly existing as a limited partnership under the laws of the State of Florida and is, if
required, qualified to transact business in the state where the Land is located, Seller has the full right and authority to enter into this Agreement and to sell the Property pursuant hereto and to consummate or cause to be consummated the
transactions contemplated herein. The person signing this Agreement on behalf of Seller is authorized to do so. Neither the execution and delivery of this Agreement nor any other documents executed and delivered, or to be executed and delivered, by
Seller in connection with the transactions described herein, will violate any provision of Seller’s organizational documents or of any agreements, regulations, or laws to or by which Seller is bound. This Agreement has been duly authorized,
executed and delivered by Seller, is a valid and binding obligation of Seller and is enforceable against Seller in accordance with its terms subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting
the rights of creditors generally; and (ii) the exercise of judicial discretion in accordance with general principles of equity. 
 2
Seller has obtained all consents and permissions (if any) related to the transactions herein contemplated and required under any covenant, agreement, encumbrance, law or regulation by which Seller is bound. 

3. There is no existing or pending (or to Seller’s knowledge threatened) litigation affecting Seller or the Property except: NONE. 

4. The list of tenants, as shown in the rent roll (the “Rent Roll”) attached hereto as Schedule 9 (which rent roll is true,
correct, and complete in all material respects) is a true and complete list of tenants leasing space in the Property and all security deposits under the Leases in effect as of the Effective Date. Seller has provided a true, complete and correct copy
of its standard form of lease and has made available to Buyer at the Real Property true and correct copies of all Leases. Except as set forth in the Rent Roll or the Unpaid Charges Report (provided to Buyer), neither Seller nor any tenant is in
default under any of the Leases. Except as otherwise set forth in the Rent Roll, Prepaid Rent Report or the Prepaid Rent Liability Report (A) all of the Leases are in full force and effect in accordance with their respective terms; (B) no
tenant has paid rent more than thirty (30) days in advance; and (C) there are no tenant inducement costs payable to or for the benefit of any tenant under the Leases, nor is any tenant entitled to any free rent or abated rent except as set
forth in the Sitelink lease files and manual lease files made available to Buyer during the Due Diligence Period. There are no oral understandings or side agreements with any tenant under any Lease that have not been reduced to writing and which are
not set forth among the Leases. 

  
 11 

 5. Seller has not received written notice from any governmental agency of any violation by Seller
of and Seller has no actual knowledge that the Property or the use thereof is currently in violation of any law, rule or regulation affecting the Property, or the current use, occupation or condition thereof, which has not been cured except for a
written code violation for required power washing or painting of back side perimeter wall between the Property and Plantation Racquet Club (for which Seller is in the process of arranging a time with the Plantation Racquet Club to complete the
washing or painting), but same shall be cured by Seller as of Closing to Buyer’s sole satisfaction. 
 6. All of the Service Contracts
provided to the Buyer are current and in good standing, and that there are no service contracts other than those set forth on Schedule 2 hereto, and, to Seller’s actual knowledge, (i) all such Service Contracts are in full force and
effect, (ii) Seller is not in breach of, or default under, any such Service Contract, (iii) no other party to any such Service Contract is in breach thereof or default thereunder; and (iv) Seller has not received any written notice
from any party asserting that Seller is in default under any such Service Contract (which default remains uncured). 
 7. Seller has no
knowledge of, and has not received, with respect to the Property, written notice from any governmental authority regarding, any change to the zoning classification, any condemnation proceedings or proceedings to widen or realign any street or
highway adjacent to the Property or that otherwise affects the Land or the Improvements. 
 8. Seller is not a “foreign person,”
“foreign partnership,” “foreign trust” or “foreign estate” as those terms are defined in Section 1445 of the Internal Revenue Code. 

9. To the best of Seller’s knowledge, (i) there are no Hazardous Conditions affecting the Property, (ii) no Hazardous Materials
have been deposited on the Property or removed from the Property, (iii) there are no underground storage tanks located on or under the Property, and (iv) the Property is in compliance with all Environmental Laws. During Seller’s
ownership of the Property there have been no, and there are no pending or to Seller’s actual knowledge, threatened claims, complaints, notices, or requests for information received by Seller with respect to any alleged violation of any
Environmental Law with respect to the Property. 
 As used in this Agreement: 

(a) “Environmental Law” shall mean: (i) the Comprehensive Environmental Response, Compensation, and Liability
Act (42 U.S.C. §§ 9601 et seq.), as amended; (ii) the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (42 U.S.C. §§ 6901 et seq.), as
amended; (iii) the Emergency Planning and Community Right to Know Act (42 U.S.C. §§ 11001 et seq.), as amended; (iv) the Clean Air Act (42 U.S.C. §§ 7401 et seq.), as
amended; (v) the Clean Water Act (33 U.S.C. §§ 1251 et seq.), as amended; (vi) the Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.), as amended; (vii) the
Hazardous Materials Transportation Act (49 U.S.C. §§ 1801 et seq.), as amended; (viii) the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §§ 136 et seq.), as
amended; (ix) the Safe Drinking Water Act (42 U.S.C. §§ 300f 

  
 12 

 
et seq.), as amended; (x) any state, county, municipal or local statutes, laws or ordinances similar or analogous to the Buyer statutes listed in parts
(i) – (ix) of this Section (a); (xi) any amendments to the statutes, laws or ordinances listed in parts (i) – (x) of this Section 1(a), regardless of whether the same are in existence on the date hereof;
(xii) any rules, regulations, guidelines, directives, orders or the like adopted pursuant to or to implement the statutes, laws, ordinances and amendments listed in parts (i) – (xi) of this Section (a); and (xiii) any
other law, statute, ordinance, amendment, rule, regulation, guideline, directive, order or the like relating to environmental, health or safety matters. 

(b) “Governmental Authorities” shall mean any board, bureau, commission, department or body of any municipal,
township, county, city, state or federal governmental unit, or any subdivision thereof, having or acquiring jurisdiction over any of the Property or the ownership, management, operation, use or improvement thereof. 

(c) “Hazardous Conditions” shall mean the presence on, in or about the Property (including ground water) of Hazardous
Materials, the concentration, condition, quantity, location or other characteristic of which fails to comply with the standards applicable, relevant or appropriate under applicable Environmental Laws. 

(d) “Hazardous Material” shall mean any chemical, substance, waste, material, equipment or fixture defined as or
deemed hazardous, toxic, a pollutant, a contaminant, or otherwise regulated under any Environmental Law, including but not limited to, petroleum and petroleum products, waste oil, halogenated and non-halogenated solvents, PCBs, asbestos and asbestos
containing materials, except for non-material amounts stored in approved containers. 
 10. Neither Seller nor any of Seller’s
affiliates, nor, to the knowledge of Seller, any of their respective brokers or other agents acting in any capacity in connection with the transactions contemplated by this Agreement, is or will be (a) conducting any business or engaging in any
transaction or dealing with any person appearing on the U.S. Treasury Department’s OFAC list of prohibited countries, territories, “specifically designated nationals” or “blocked person” (each, a “Prohibited
Person”) (which lists can be accessed at the following web address: http://www.ustreas.gov/offices/enforcement/ofac/), including the making or receiving of any contribution of funds, goods or services to or for the benefit of any such
Prohibited Person; (b) engaging in certain dealings with countries and organizations designated under Section 311 of the USA PATRIOT Act as warranting special measures due to money laundering concerns; (c) dealing in, or otherwise
engaging in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 dated September 24, 2001, relating to “Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism”; (d) a foreign shell bank or any person that a financial institution would be prohibited from transacting with under the USA PATRIOT Act; or (e) engaging in or conspiring to engage in
any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempting to violate, any of the 

  
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prohibitions set forth in (i) any U.S. anti-money laundering law, (ii) the Foreign Corrupt Practices Act, (iii) the U.S. mail and wire fraud statutes, (iv) the Travel Act,
(v) any similar or successor statutes or (vi) any regulations promulgated under the foregoing statutes; 
 11. Seller is not (and,
throughout the period transactions are occurring pursuant to this Agreement, will not be) an entity deemed to hold plan assets of any “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title I of ERISA or
“plan” as defined in and subject to Section 4975 of the Code pursuant to 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. None of the transactions contemplated by this Agreement are in violation of any
statutes applicable to Seller that regulate investments of, and fiduciary obligations with respect to, governmental plans and that are similar to the provisions of Section 406 of ERISA or Section 4975 of the Code. As used herein,
“ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended; 
 12. Each insurance policy
maintained by Seller with respect to the Property is in full force and effect and all premiums due thereunder have been paid, and Seller has received no notice from any insurance company alleging any claim that there are defects or inadequacies in
any portion of the Property. 
 13. The tangible personal property that comprises the Property is owned by Seller free and clear of all
liens and other existing financing except those that will be paid off at Closing; 
 14. Seller has no knowledge of any pending real
property tax petitions relating to the Property; 
 15. Seller has not granted, and has no knowledge of, any option, right of first refusal,
right of first opportunity, or other similar option or right, in favor of any person or entity to acquire any interest in any portion of the Property; 

16. Except for those tenants in possession of the Property under written leases for space in the Property, as shown on the Rent Roll, there
are no parties in possession of, or claiming any possession to, any portion of the Property; 
 17. At Closing there will be no unpaid bills
or claims in connection with any repair of the Property by or on behalf of Seller that could result in the filing of a lien against the Property; 

18. To the best of Seller’s knowledge, the Seller Deliverables are true, correct and complete in all material respects; 

19. Seller has not received any written or verbal notice or request from any insurance company or board of fire underwriters (or any
organization exercising functions similar thereto) requesting the performance of any work or alterations with respect to the Property, except those as to which Seller has completed remedial action which has been formally accepted as sufficient by
such authority or insurer; 

  
 14 

 20. There are no employment agreements of any kind to which Seller is a party, including union or
collective bargaining agreements, which will be binding on Buyer after the Closing; 
 21. Seller has no knowledge of any material defects
in the drainage systems, foundations, roofs, walls, superstructures, plumbing, air conditioning and heating equipment, electrical wiring, boilers, hot water heaters or other portions of the Property, except for the following: None; 

22. To the best of Seller’s knowledge, and without investigation or inquiry, the Improvements are free from the presence or suspected
presence of any form of mold, including those producing mycotoxins, specifically including, but not limited to, Aspergillus, Penicillium, and Stachybotry. 

23. To the best of Seller’s knowledge, Seller has obtained all necessary certificates, licenses and other approvals, governmental and
otherwise, necessary for the operation of the Property and the conduct of its business and all required zoning, building code, land use, environmental and other similar permits or approvals, all of which are in full force and effect as of the date
hereof and not subject to revocation, suspension, forfeiture or modification; and additionally, the Property is legally compliant and conforming with all applicable zoning laws, rules and regulations. However, Buyer acknowledges that some minor
improvements or repairs may have been made to the Property without permits. 
 B. Seller represents and warrants that all of the
representations and warranties of Seller set forth in this Agreement are true and correct in all respects at the date of this Agreement, and (except as disclosed in writing by Seller to Buyer at or before Closing and approved in writing by Buyer),
all shall be deemed to be repeated at, and as of the Closing Date, and shall be true and correct in all respects as at the Closing Date, and the accuracy of such representations and warranties shall be a condition of the Buyer’s obligation to
close hereunder. 
 C. As used in this Agreement, the phrase “to the knowledge of Seller” or phrases of similar import mean and
are limited to the actual current knowledge, without duty of inquiry or investigation, of Stephen Block and Jeffrey Pechter (collectively, the “Representing Parties”) and not to any constructive knowledge of the foregoing individuals or of
Seller or any affiliates thereof, or to any officer, agent, representative, or employee of Seller or any affiliates thereof. Seller represents and warrants that the Representing Parties are familiar with the day to day operations of the Property,
and are the individuals within the Seller’s business organization that are most familiar with such operations of the Property. 
 D. AS
IS/WHERE IS. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT CLOSING, SELLER HAS NOT MADE ANY REPRESENTATIONS AND/OR WARRANTIES REGARDING THE PROPERTY, AND, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE
DOCUMENTS DELIVERED AT CLOSING, BUYER SHALL, AT CLOSING, ACCEPT THE PROPERTY IN “AS IS” CONDITION, WITH ALL FAULTS, AND WITHOUT ANY 

  
 15 

 
OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER AS TO MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE, OR OTHERWISE. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE
DOCUMENTS DELIVERED AT CLOSING, NO REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE OR ARE MADE AND NO RESPONSIBILITY HAS BEEN OR IS ASSUMED BY SELLER OR BY ANY PARTNER, OFFICER, PERSON, FIRM, AGENT OR REPRESENTATIVE ACTING OR PURPORTING TO ACT ON
BEHALF OF SELLER AS TO THE CONDITION OR REPAIR OF THE PROPERTY OR THE VALUE, EXPENSE OF OPERATION, OR INCOME POTENTIAL THEREOF OR AS TO ANY OTHER FACT OR CONDITION WHICH HAS OR MIGHT AFFECT THE PROPERTY OR THE CONDITION, REPAIR, VALUE, EXPENSE OF
OPERATION OR INCOME POTENTIAL OF THE PROPERTY OR ANY PORTION THEREOF. THE PARTIES AGREE THAT ALL UNDERSTANDINGS AND AGREEMENTS HERETOFORE MADE BETWEEN THEM OR THEIR RESPECTIVE AGENTS OR REPRESENTATIVES ARE MERGED IN THIS AGREEMENT AND THE SCHEDULES
AND EXHIBITS HERETO ANNEXED, WHICH ALONE FULLY AND COMPLETELY EXPRESS THEIR AGREEMENT, AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO AFTER FULL INVESTIGATION, OR WITH THE PARTIES SATISFIED WITH THE OPPORTUNITY AFFORDED FOR INVESTIGATION, NEITHER
PARTY RELYING UPON ANY STATEMENT OR REPRESENTATION BY THE OTHER UNLESS SUCH STATEMENT OR REPRESENTATION IS SPECIFICALLY EMBODIED IN THIS AGREEMENT OR THE EXHIBITS ANNEXED HERETO. THIS PROVISION SHALL SURVIVE CLOSING. 

E. All of the representations and warranties of Seller set forth in this Agreement shall survive the Closing for a period of six
(6) months following Closing (“Survival Period”); except with respect to any claims relating to intentional misrepresentation or fraud by Seller or any employee or agent thereof, to which no such limitation shall apply. 

F. Covenants of Seller. Seller hereby covenants with Buyer, until the Closing or earlier termination of this Agreement, as follows: 

1. Seller shall operate and maintain the Property in a commercially reasonable manner generally consistent with the manner in which Seller has
operated and maintained the Property prior to the date hereof. 
 2. Seller shall continue its efforts to negotiate new leases for unrented
storage units on the Property and/or Lease renewals for storage units on the Property. Except for amendments or leases entered into pursuant to renewal notices mailed prior to the execution of this Agreement, unless Buyer agrees otherwise in
writing, any new leases or renewals of existing leases for such storage units entered into by Seller after the Effective Date until the Closing or earlier termination of this Agreement shall be on Seller’s standard lease form for the Property.
In all cases, Seller shall set rent rates, concessions and other terms of occupancy in a commercially reasonable manner, and Seller shall only enter into new leases or renewals in the ordinary course of business taking into account Seller’s
then-current good faith evaluation of market conditions. Each such new lease or renewal entered into by Seller shall constitute a “Lease” for purposes of this Agreement. 

  
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 3. Seller shall keep the Improvements insured against loss or damage (including rental loss) by
fire and all risks covered by the Seller’s insurance that is currently in force, provided that Seller may make adjustments in Seller’s insurance coverage for the Property which are consistent with Seller’s general insurance program
for Seller’s other self-storage properties as in effect from time to time. 
 4 Seller shall perform the landlord’s obligations to
the tenants under the Leases and enforce the obligations of the tenants under the Leases, in each case in accordance with the current management standards of Seller for its self-storage properties. 

5. Seller shall not remove any tangible Personal Property except as may be required for necessary repair or replacement (which repair and
replacement shall be of equal quality and quantity as existed as of the time of the removal), or otherwise in accordance with current inventory and management standards of Seller for its self-storage properties. 

6. Seller shall not, without Buyer’s prior written consent in each instance (which consent will not be unreasonably withheld, conditioned
or delayed), amend or terminate any of the Service Contracts, except as provided for in this Agreement, nor enter into any contract or agreement that will be an obligation affecting the Property or binding on Buyer after the Closing, except that
(i) Seller may enter into, amend or enforce (including enforcement by termination) Service Contracts in the ordinary course of business as reasonably necessary for the continued operation and maintenance of the Property, provided any new
Service Contracts are terminable without cause or penalty on thirty (30) days’ notice, and (ii) Seller may conduct leasing activity in accordance with its normal course of business. 

8. REPRESENTATIONS AND WARRANTIES OF BUYER. 
 A.
Buyer’s Representations. Buyer represents and warrants to Seller the following: 
 1. Buyer has been duly organized and is validly
existing as a Delaware limited liability company under the laws of the State of Delaware, and is or will be prior to the Closing qualified to transact business in the state where the Land is located. Buyer has the full right and authority to enter
into this Agreement and to purchase the Property pursuant hereto and to consummate or cause to be consummated the transactions contemplated herein. The person signing this Agreement on behalf of Buyer is authorized to do so. Neither the execution
and delivery of this Agreement nor any other documents executed and delivered, or to be executed and delivered, by Buyer in connection with the transactions described herein, will violate any provision of Buyer’s organizational documents or of
any agreements, regulations, or laws to or by which Buyer is bound. This Agreement has been duly authorized, executed and delivered by Buyer, is a valid and binding obligation of Buyer and is enforceable against Buyer in accordance with its terms
subject to (i) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws affecting the rights of creditors generally; and (ii) the exercise of judicial discretion in accordance with general principles of equity. 

  
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 2. Buyer has obtained all consents and permissions (if any) related to the transactions herein
contemplated and required under any covenant, agreement, encumbrance, law or regulation by which Buyer is bound. 
 3. To Buyer’s
knowledge, there is no action, suit, arbitration, administrative or judicial administrative proceeding, or unsatisfied order or judgment pending or threatened against Buyer or the transaction contemplated by this Agreement, which, if adversely
determined, could individually or in the aggregate have a material adverse effect on Buyer’s ability to consummate the transaction contemplated herein 

4. Buyer is not (i) an “employee benefit plan” within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), (ii) a “governmental plan” under Section 3(32) of ERISA, (iii) any plan described in Section 4975 of the Internal Revenue Code, or (iv) an entity whose
underlying assets include “plan assets” by reason of the application of the ERISA “plan assets” regulation (29 C.F.R. 2510.3-101). 

5. PATRIOT ACT AND RELATED MATTERS REPRESENTATIONS: Buyer hereby represents, warrants, covenants and agrees, as of the date hereof and as of
the Closing Date, as follows: 
 (a) Buyer is familiar with the source of funds for the purchase price of the Property and
represents that all such funds are and will be derived from legitimate business activities within the United States of America and/or from loans from a banking or financial institution chartered or organized within the United States of America. To
the extent Seller is required to obtain such information in order to comply with applicable law, regulation or official government request, and to the extent providing such information does not violate applicable law, regulation or official
government request, Buyer agrees to provide to Seller such documents, certifications or other evidence as may be reasonably requested from time to time by Seller, confirming the source of funds for the Purchase Price (and that such funds derived
from legitimate business activities). 
 (b) Buyer has been in compliance in all material respects for the last five years
and will continue to be in compliance in all material respects through the Closing Date with (a) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the Money Laundering Control Act
of 1986, and laws relating to the prevention and detection of money laundering in 18 U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the International Emergency Economic Powers
Act (50 U.S.C. § 1701, et seq.), the Arms Export Control Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and 13 U.S.C. Chapter 9; (c) the Foreign Asset
Control Regulations contained in 31 C.F.R., Subtitle B, Chapter V; and (d) any other civil or criminal federal or state laws, regulations, or orders of similar import. 

  
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 (c) None of the Buyer Parties (as defined below) is now or shall at any time
until the Closing Date be a person who has been listed on (a) the Specially Designated Nationals and Blocked Persons List contained in Appendix A to 31 C.F.R., Subtitle B, Part V; (b) the Denied Persons List, the Entity List, and the
Unverified Parties List maintained by the United States Department of Commerce; (c) the List of Terrorists and List of Debarred Parties maintained by the United States Department of State; and (d) any other similar list maintained by any
federal or state agency or pursuant to any Executive Order of the President of the United States of America. “Buyer Parties” means, collectively, (A) Buyer, (B) its executive officers, directors, managers, agents and employees,
(C) its shareholders, members, partners, and other investors, or any other person that owns or controls Buyer, and (D) any entity on whose behalf Buyer acts. 

6. BUYER ACKNOWLEDGES THAT IT HAS INSPECTED OR WILL FULLY INSPECT THE PROPERTY AND INVESTIGATE ALL MATTERS RELEVANT THERETO AND, WITH RESPECT
TO THE CONDITION OF THE PROPERTY, AND EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT CLOSING, WILL RELY SOLELY UPON THE RESULTS OF BUYER’S OWN INSPECTIONS OR OTHER INFORMATION OBTAINED OR OTHERWISE AVAILABLE TO
BUYER, RATHER THAN ANY INFORMATION THAT MAY HAVE BEEN PROVIDED BY THE SELLER TO BUYER. BUYER ACKNOWLEDGES THAT IT AND ITS REPRESENTATIVES (INCLUDING ENVIRONMENTAL CONSULTANTS, ARCHITECTS AND ENGINEERS) HAVE BEEN OR ARE TO BE AFFORDED THE RIGHT AND
OPPORTUNITY TO ENTER UPON THE REAL PROPERTY AND TO MAKE SUCH INSPECTIONS OF THE REAL PROPERTY AND MATTERS RELATED THERETO, INCLUDING THE CONDUCT OF SOIL, ENVIRONMENTAL AND ENGINEERING TESTS, AS BUYER AND ITS REPRESENTATIVES DESIRE, SUBJECT TO THE
PROVISIONS OF SECTION 4 OF THIS AGREEMENT. BUYER REPRESENTS THAT IT IS KNOWLEDGEABLE IN REAL ESTATE MATTERS AND THAT UPON COMPLETION OF THE INSPECTIONS CONTEMPLATED OR PERMITTED BY THIS AGREEMENT, BUYER WILL HAVE MADE ALL OF THE INVESTIGATIONS AND
INSPECTIONS BUYER DEEMS NECESSARY IN CONNECTION WITH ITS PURCHASE OF THE PROPERTY, AND THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT CLOSING, APPROVAL BY BUYER OF SUCH INSPECTIONS OR FAILURE TO TERMINATE THIS
AGREEMENT PURSUANT TO THE TERMS HEREOF WILL BE DEEMED TO BE APPROVAL OF BUYER WITHOUT RESERVATION OF ALL ASPECTS OF THIS TRANSACTION, INCLUDING BUT NOT LIMITED TO THE PHYSICAL CONDITION OF THE REAL PROPERTY. THIS PROVISION SHALL SURVIVE CLOSING.

 B. Buyer represents and warrants to Seller that all of the representations and warranties of Buyer set forth in this Agreement shall be
true and correct in all respects at the date of this Agreement, and (except as disclosed in writing by Buyer at or before Closing and approved in writing by Seller), all shall be deemed to be repeated at, and as of the Closing Date, and shall be
true and correct in all respects as at the Closing Date. 

  
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 C. All of the representations and warranties of Buyer set forth in this Agreement shall survive
the Closing for a period of six (6) months. 
 9. CLOSING DATE. Unless this Agreement is terminated as provided herein, the closing of the transactions
described herein (“Closing”) shall occur on the twentieth (20th) day following the expiration of the Due Diligence Period or if said
20th day is on a weekend or holiday, then on the next business day (the “Closing Date”). Notwithstanding the above, the Closing Date shall be scheduled in order to permit compliance with
the requirements set forth in Paragraph 10 below. Further, in the event the Closing Date falls on a day in May that is other than the first (1st) day of that month, at Seller’s election,
the Closing Date may be changed so that it occurs on June 1. However, if the Closing Date falls on a date in June that is other than the 1st day of the month, the Seller shall not be
permitted to move the date and closing shall occur on the actual Closing Date. At the Closing, $4,000,000.00 of the Deposit shall be applied against the Purchase Price under this Agreement and the Companion Agreements, as set forth on Exhibit
“B” attached hereto. The balance of the Deposit, in the amount of $2,000,000.00, plus accrued interest, shall then be applied to the deposit for the purchase and sale agreement described on Exhibit “C” attached hereto (the
“Asheville Contract”). 
 10. LOAN DEFEASANCE 
 The
Buyer acknowledges that the Property is or may be presently encumbered by a deed of trust lien securing a loan on the Property subject to certain defeasance requirements necessary in order to obtain a release of the deed of trust and other documents
encumbering the Property. The defeasance process requires that the borrower deliver a minimum of thirty (30) days’ prior written notice of its intent to defease the loan. Seller and Buyer hereunder agree that they will cooperate to
coordinate Closing hereunder with standard three (3) consecutive business day closing process under the defeasance of such loans with the third day of such three (3) day period being the date of closing hereunder; provided, that the
foregoing shall not be construed in any manner to accelerate the Closing Date to be a date prior to a date that Buyer has approved or is required to close hereunder, and the closing of this Agreement and all of the Companion Agreements shall
nevertheless occur on the same date. Nothing contained in this Section 10 shall in any manner affect Seller’s obligation under Section 5(F)(a) above to remove all mortgage or deed of trust liens from the Property at Closing. 

11. CLOSING DOCUMENTS. 
 A. At the time of
Closing, Seller shall deliver (or shall have delivered to the Escrow Agent as noted below) the following duly executed documents: 
 1. Two
(2) business days prior to Closing, a special warranty deed (the “Deed”), conveying the Property to the Buyer, subject only to the Permitted Exceptions, in the forms attached hereto as Schedule 4. 

2. Two (2) business days prior to Closing, two counterparts of an assignment of personal property, service contracts, warranties and
leases, in the form attached hereto as Schedule 6 and by this reference made a part hereof, duly executed by Seller, pursuant to which 

  
 20 

 
(i) Seller shall convey the tangible Personal Property, the Intangible Property, the Warranties, the Licenses and Permits, the Books and Records and the Plans and Specs to Buyer, and
(ii) Seller shall assign to Buyer, and Buyer shall assume from and after the date of Closing, Seller’s interest in and to the Leases and Designated Service Contracts, as amended or supplemented pursuant to this Agreement (the “Bill
of Sale and Assignment”); 
 3. Two (2) business days prior to Closing, a notice, countersigned with Buyer (the
“Tenant Notice”) in the form of Schedule 7 attached hereto, which Buyer shall send to each tenant under each of the Leases informing such tenant of the sale of the Property and of the assignment to Buyer of Seller’s
interest in, and obligations under, the Leases (including, if applicable any security deposits) and directing that all rent and other sums payable after the Closing under each such Lease shall be paid as set forth in the notice. 

4. Two (2) business days prior to Closing, a certificate (“Seller’s Closing Certificate”), dated as of the date of
Closing and duly executed by Seller, in the form of Schedule 8 attached hereto, stating that the representations and warranties of Seller contained in Section 7 of this Agreement are true and correct in all respects as of
the date of Closing. 
 5. Two (2) business days prior to Closing, such evidence as the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Seller; 
 6. Two (2) business days prior to Closing, an affidavit
duly executed by Seller stating that Seller is not a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act and a title insurance affidavit and GAP Indemnity, if required
by the Title Company, duly executed by Seller or a representative of Seller, in form and content reasonably satisfactory to Seller and the Title Company; 

7. To Buyer, at the Property, possession of the Leases together with such leasing and property files and records which are material in
connection with the continued operation, leasing and maintenance of the Property, all to the extent not previously delivered; together with a copy of the Rent Roll for the Property dated not more than two (2) Business Days prior to Closing
showing all categories of information shown in the rent roll attached hereto as Schedule 9, certified by Seller to be true, correct and complete in all material respects; 

8 Possession and occupancy of the Property, subject to the Permitted Exceptions; 

9. A Seller’s closing statement evidencing the transaction contemplated by this Agreement. 

10. Evidence of the termination of any and all management agreements affecting the Property, effective as of the Closing Date, and duly
executed by Seller and the property manager. 

  
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 11. The Title Policy, issued by the Title Company, in the form required by this Agreement and
subject only to the Permitted Exceptions; provided that in the event the Title Policy is not available at Closing, then the Title Company shall provide Buyer at Closing, at Buyer’s option, with either (i) a “marked title
commitment”, committing to issue the Title Policy in the form required by this Agreement, or (ii) a proforma owner’s title policy, with the Title Policy to be delivered to Buyer as promptly after Closing as reasonably possible. 

12. Any and documents required to transfer to Buyer or its designee the URL and website www.mindfulstorage.com 

B. At the time of Closing, (or at the time noted below), Buyer shall deliver the following to the Escrow Agent: 

1. The full amount of the Purchase Price as increased or decreased by prorations and adjustments as herein provided, prior to the Closing
Date, in immediately available federal funds wire transferred to Escrow Agent’s escrow account, and deliver to Escrow Agent instructions to immediately release the full amount of the Purchase Price, as increased or decreased by prorations and
adjustments as herein provided, to Seller, contemporaneously with the consummation of the transaction contemplated hereby; 
 2. Two
(2) business days prior to Closing, join Seller in the execution of all counterparts of the Bill of Sale and Assignment and the Tenant Notice. In connection with the Tenant Notice, immediately after Closing, Buyer shall deliver to each and
every tenant of the Property under a Lease thereof a signed statement acknowledging Buyer’s receipt and responsibility for each tenant’s security deposit (to the extent credited or delivered by Seller to Buyer at Closing), if any, all in
compliance with and to the extent required by the applicable law. The provisions of this sub-section shall survive Closing; 
 3. Two
(2) business days prior to Closing, such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Buyer; 

4. Two (2) business days prior to Closing, a certificate dated as of the date of Closing and duly executed by Buyer, in the form of
Schedule 8 attached hereto (but for Buyer),stating that the representations and warranties of Buyer contained in Section 8 of this Agreement are true and correct in all respects as of the date of Closing; 

5. Two (2) business days prior to Closing, information for 1099-S Report Filing in accordance with Section 6045 of the Code.
Pursuant to Section 6045 of the Code, the Escrow Agent is hereby designated to be the person responsible for complying with such reporting requirements; 

6. A Buyer’s closing statement evidencing the transaction contemplated by this Agreement. 

  
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 C. Seller and Buyer shall each deliver to the other such other documents or instruments as shall
be reasonably required by such party, its counsel or the Title Company to consummate the transaction contemplated herein and/or, with respect to Seller, to cause the issuance of the policy of title insurance without the so-called “standard
exceptions” which, in all events, shall not increase such party’s liability hereunder or decrease such party’s rights hereunder. 
 12.
ADJUSTMENTS AT CLOSING. 
 A. All income and expenses in connection with the operation of the Property shall be apportioned, as of 11:59
p.m. (Eastern time) on the day prior to the Closing Date, as if Buyer were vested with title to the Property during the entire Closing Date, such that, except as otherwise expressly provided to the contrary in this Agreement, Seller shall have the
benefit of income and the burden of expenses for the day preceding the Closing Date and the Buyer shall have the benefit of income and the burden of expenses for the Closing Date and thereafter. Items (1)-(6) below will be prorated at Closing
utilizing the information available to Seller and Buyer on the day preceding the Closing Date, such that Seller and Buyer shall be able to finalize the closing statements on such date in time sufficient for Buyer to wire the closing proceeds to the
Title Company prior to the Closing Date. A post-closing “true-up” shall take place within thirty (30) days of the Closing Date to adjust the prorations of said items (1), (3), (4),(5) and (6) below. Such prorated items shall
include the following: 
 1. rents paid for the month of Closing, if any, based on the amount collected for the current month. The term
“rents” as used in this Agreement includes all payments received from tenants under the Leases other than (a) refundable deposits, which shall be treated as set forth in Section 12 (B)(1), and (b) the following items,
which may be retained by Seller if received prior to Closing: (i) application fees, (ii) reimbursement payments, (iii) late charges, (iv) pet and cleaning charges, and (v) termination payments; 

2. ad valorem taxes and assessments levied against the Property (including personal property taxes on the tangible Personal Property), which
shall be prorated as set forth in Section 12 (B)(2) hereof; 
 3. payments or amounts due under the Service Contracts elected to
be retained by the Buyer. To the extent any rebate, concession or commission payable to Seller under any such Service Contract has accrued before Closing but has not been paid to Seller, Seller shall be entitled to pursue payment of such amount from
the applicable service provider under any such Service Contract. Seller shall retain, without proration, any signing bonus or similar payments received by Seller before Closing; 

4. gas, electricity, water and other utility charges for which Seller is liable, if any, such charges to be apportioned at Closing on the
basis of the most recent meter reading occurring prior to Closing or the most recent utility bill received by Seller, as applicable, including, without limitation, water charges not yet due and payable to such utility provider at Closing,; and 

  
 23 

 5. property owners association fees reflected of record and any other operating expenses or other
items pertaining to the Property which are customarily prorated between a buyer and a seller in comparable commercial transactions in the area in which the Property is located. 

6. rents under cell tower and billboard leases, if any. 

The agreements set forth in this Section 12A shall survive the Closing for a period of 30 days. 

Notwithstanding anything contained in the foregoing provisions: 

B. 1. At Closing, (a) Seller shall credit the account of Buyer with an amount equal to all prepaid rents and refundable security deposits
under the Leases (together with any interest accrued thereon only if interest is specifically required to be paid thereon under applicable law or under the terms of a specific Lease), and (b) Buyer shall credit to the account of Seller an
amount equal to all refundable cash or other deposits posted with utility companies serving the Property or, at either party’s option, Buyer shall contract directly with the utility companies and Seller shall be entitled to receive and retain
such refundable cash and deposits; provided that Buyer and Seller will cooperate so that utility service to the Property is not interrupted. 

2. Any ad valorem taxes for the current year paid at or prior to Closing shall be prorated based upon the amounts actually paid for the
current tax year. If all taxes and assessments for the current tax year have not been paid before Closing, then Seller shall be charged at Closing an amount equal to that portion of such taxes and assessments which relates to the period before
Closing (with the greatest discount amount to be used for early payment) and Buyer shall pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with respect to a tax year for which the tax rate or assessed
valuation, or both, have not yet been fixed shall be based upon 110% of the tax for the immediately preceding year (with the greatest discount amount applied). No post-Closing re-proration for such taxes shall take place. Any refunds
generated from appeal of ad valorem taxes for year(s) prior to the current year shall remain the property of Seller and paid to Seller by Buyer, if and to the extent received by Buyer. 

3. As to gas, electricity and other utility charges referred to in Section 12 (A)(4) above, Seller may upon notice to Buyer
provided at least two (2) days prior to Closing, elect to pay one or more of all of such items accrued to the Closing Date directly to the person or entity entitled thereto, and to the extent Seller so elects and the utility company agrees to
look solely to Seller for payment of any such item accrued prior to the Closing Date, such item shall not be apportioned hereunder, and Seller’s obligation to pay such item with respect to the period prior to Closing directly in such case shall
survive the Closing. 
 4. The tangible Personal Property is included in this sale, without further charge. 

  
 24 

 5. Unpaid and delinquent rent collected by Seller after the date of Closing shall be delivered to
Buyer within fifteen (15) days after the receipt thereof. If the Closing shall occur before all rents have actually been paid for the month in which the Closing occurs, the apportionment of such rents shall be upon the basis of such rents
actually received by Seller, with Buyer receiving the portion of all such rentals and other amounts attributable to the period from and after Closing, which proration obligation expressly shall survive Closing, and shall occur within ten
(10) business days following Closing. For a period of thirty (30) days following Closing, if any rents which are delinquent as of Closing are actually received by Buyer, in good funds, all such amounts shall first be applied to post-closing rents and other amounts due to Buyer for the period from and after Closing, and the balance shall be paid by Buyer to Seller within thirty (30) days following Buyer’s receipt thereof, to the
extent, and only to the extent of any rental delinquencies owed by any such tenant to Seller for the period prior to Closing. Notwithstanding the foregoing provisions of this Section 12(B)(5), all rentals that are received by Buyer more
than thirty (30) days following Closing shall be retained by Buyer, and Seller shall have no rights with respect thereto. 
 6. No
management fees shall be prorated at Closing. 
 The provisions of this Section 12 (B) shall survive Closing. 

C. Post-Closing Adjustments. Any proration which must be estimated at Closing and any error in the calculation of adjustments shall be
reprorated subsequent to Closing with appropriate credits to be given based upon reprorated adjustments, provided, however, that the adjustments (except if errors are caused by misrepresentations) shall be final upon expiration of thirty
(30) days after Closing. Taxes shall not be reprorated except in the event of an error. 
 D. Employees. Seller shall be
responsible for, and shall make arrangements for payment of, all amounts due for Seller’s or Seller’s management company’s employees, if any, including but not limited to salaries, accrued vacation pay, withholding and payroll taxes,
and other benefits. 
 E. Responsibility for Payment. It is the intention of the parties hereto that Seller shall be responsible for
the payment of all costs of operating the Property which accrued prior to the Closing Date and that Buyer shall be responsible for the payment of all such costs which accrue on or after the Closing Date. 

13. POSSESSION. Buyer shall have possession and occupancy of the Property from and after the date of Closing. After the execution of this Agreement, Buyer
may, subject to the prior notice and Seller accompaniment provisions set forth in Section 4A hereof, enter upon the Property and have reasonable access to the Seller’s property and rent file information stored onsite, at reasonable
times and upon prior notice to the Seller until Closing; provided that all such entries shall not unreasonably interfere with the Seller’s ongoing management operations, or with tenants on the Property. 

14. BROKER’S COMMISSION AND OTHER FEES. Seller and Buyer each represent to the other that there are no fees or commissions due as a result of their
employment of any broker, 

  
 25 

 
with the exception that any fees due to Jefferies LLC will be paid by Seller, and Seller hereby agrees to indemnify, defend and hold harmless Buyer therefrom. Each Party hereby agrees to
indemnify, protect and defend and hold harmless the other Party and their respective partners, members, managers, affiliates and advisors from and against any and all losses, claims, damages, and costs (including court costs and reasonable
attorneys’ fees) incurred by any of them in connection with a claim for a commission or finder’s fee by any third party, to the extent arising out of or resulting from any agreement, arrangement or understanding alleged to have been made
by such party or on such party’s behalf with any broker or finder in connection with this Agreement or the transaction contemplated hereby. This Section 14 shall survive the Closing or any earlier termination of this Agreement. 

15. RISK OF LOSS. If prior to the Closing all of the Real Property or any Material (as defined below) portion thereof is destroyed or damaged or if the Real
Property or any Material portion thereof shall be subjected to a bona fide threat of condemnation or becomes the subject of any proceedings, judicial, administrative or otherwise, with respect to the taking by eminent domain or condemnation, Seller
shall within two (2) days of learning of any such event, notify Buyer thereof. In such event, Buyer shall have the option to: (i) terminate this Agreement upon written notice to Seller, in which event the portion of the Deposit allocable
to the Property, as set forth on Exhibit “B” hereto, shall be returned to Buyer, without the consent or joinder of Seller being required and notwithstanding any instructions to the contrary which might be provided by Seller, and,
thereafter, this Agreement shall be deemed to be null, void and of no further force and effect other than those obligations which expressly survive a termination of this Agreement; or (ii) accept title to the Real Property with no adjustment of
the Purchase Price and upon the Closing, Seller shall assign, transfer and set over to Buyer all of the right, title and interest of Seller in and to any awards that have been or that may thereafter be made for any such taking, or Seller shall
assign, transfer and set over to Buyer any insurance proceeds that may have been or that may thereafter be made for any such damage or destruction giving Buyer a credit at Closing for any deductible under such policies as well as the amount of any
uninsured loss. Should the Buyer elect option (i) above to terminate this Agreement as a result of material loss or taking, the provision set forth in Section 40 hereof that such termination applies to all Companion Agreements shall
not apply, and such termination shall apply, solely to this Agreement, and all other Companion Agreements shall continue in full force and effect. In the event this Agreement is terminated pursuant to the provisions of this paragraph: (i) same
shall not violate the conditions set forth in Paragraph 40 herein and the remainder of the Companion Agreements shall proceed to Closing; and (ii) the Seller’s retention and operating of the Property as a result of the termination shall
not be deemed to violate any non-compete provisions contained herein. 
 In the event an immaterial part of the Real Property is damaged, destroyed or
taken, this Agreement shall remain in full force and effect with no adjustment of the Purchase Price and upon the Closing, Seller shall assign, transfer and set over to Buyer all of the right, title and interest of Seller in and to any awards that
have been or that may thereafter be made for any such taking, and Seller shall assign, transfer and set over to Buyer any insurance proceeds that may have been or that may thereafter be made for any such damage or destruction giving Buyer a credit
at Closing for any deductible under such policies as well as the amount of any uninsured loss. 

  
 26 

 A “Material” part of the Real Property shall be deemed to have been damaged, destroyed or taken if
(i) the financial impact of such casualty on the value of the Property is reasonably likely to exceed ten percent (10%) of the Purchase Price, or (ii) with respect to a casualty, the cost to repair any casualty equals or exceeds
$150,000, as estimated by an engineer or architect reasonably acceptable to Seller and Buyer, or (iii) with respect to a condemnation, such condemnation affects parking, access to the Property or otherwise materially or adversely affects the
continued operation of the Property as a self-storage facility (herein, a “Material Condemnation”). An “immaterial” part of the Real Property shall be deemed to have been damaged, destroyed or taken if (i) the
financial impact of such casualty on the value of the Property is reasonably likely to equal ten percent (10%) of the Purchase Price or less, or (ii) with respect to a casualty, the cost to repair any casualty is less than $150,000, as
estimated by an engineer or architect reasonably acceptable to Seller and Buyer, or (iii) with respect to a condemnation, any such condemnation or taking is other than a Material Condemnation. Seller shall have no additional obligation if such
insurance proceeds or condemnation awards are insufficient to repair such damage. 
 16. ASSIGNMENT. Neither party may assign its rights hereunder to any
other person or entity without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed, except that Buyer may assign its rights hereunder to an entity owned or controlled by or under common control
with the original Buyer; provided that the original Buyer shall not be released from its obligations hereunder and Buyer shall give Seller written notice of such assignment not less than five (5) business days prior to Closing. Notwithstanding
anything contained in this Agreement to the contrary, Buyer shall be entitled to assign this Agreement, without Seller’s consent, to (i) an affiliate of Buyer, (ii) an entity in which SS Growth Operating Partnership, L.P., a Delaware
limited partnership, Strategic Storage Growth Trust, Inc., a Maryland corporation, Strategic Storage Operating Partnership II, L.P., a Delaware limited partnership and/or Strategic Storage Trust II, Inc., a Maryland corporation, has a direct or
indirect ownership interest, (iii) a real estate investment trust of which Buyer or an affiliate of Buyer is the external advisor, or (iv) a Delaware statutory trust of which Buyer or an affiliate of Buyer is the signatory trustee. 

  
 27 

 17. NOTICE. All notices given pursuant to any provisions of this Agreement shall be in writing and shall be
effective only if delivered personally, sent by a national over-night carrier, or sent by telecopy, to the addresses set forth below. Any such notice shall be deemed to have been given (i) on the date of receipt, if personally delivered,
(ii) if sent by overnight courier, on the first business day after being deposited into the custody of such overnight courier, addressed to such party at the address specified below, and (iii) if sent by telecopy, on the date delivered by
facsimile to the respective numbers specified below, provided confirmation of facsimile is received and further provided any such facsimile notice shall be sent by one of the other permitted methods of providing notice on the next succeeding
business day. The addresses of the parties for all notices are as follows (unless changed by similar notice in writing given by the particular party whose address is to be changed): 

 

			
	To Buyer:	  	SST II Acquisitions, LLC
		  	111 Corporate Drive, Suite 120
		  	Ladera Ranch, CA 92694
		  	Attn: H. Michael Schwartz
		  	Phone: (949) 429-6600
		  	Fax: (949) 429-6606
		
	with copies to:	  	SST II Acquisitions, LLC
		  	8235 Douglas Avenue, #815
		  	Dallas, Texas 75225
		  	Attn: Wayne Johnson
		  	Phone: (214) 217-9797
		  	Fax: (949) 429-6606;
		
		  	and
		
		  	Mastrogiovanni Mersky & Flynn, P.C.
		  	2001 Bryan Street, Suite 1250
		  	Dallas, Texas 75201
		  	Attn: Charles Mersky, Esq.
		  	Phone: (214) 922-8800
		  	Fax: (214) 922-8801
		
	To Seller:	  	Nob Hill Storage Limited Partnership
		  	c/o Mindful Management LLC
		  	Attn: Jeffrey Pechter and Stephen Block
		  	280 NE 2nd Avenue
		  	Delray Beach, Florida 33444
		  	Phone: (561) 357-0121
		  	Fax: (561) 357-0141
		
	With a copy to:	  	Baritz & Colman LLP
		  	Attn: Nancy B. Colman, Esq.
		  	1075 Broken Sound Parkway NW, Suite 102
		  	Boca Raton, Florida 33487
		  	Phone: (561) 864-5100
		  	Fax: (561) 864-5101
		
	To Escrow Agent:	  	First American Title Insurance Company
		  	Attn: Yessie A. Gonzalez, Senior Commercial Escrow Officer
		  	2121 Ponce de Leon Boulevard, Suite 710
		  	Coral Gables, Florida 33134
		  	Phone: 305-908-6253
		  	Fax: (866) 908-6012

  
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 18. CONFIDENTIALITY. 

(A) Buyer acknowledges that it has had and prior to Closing will have access to certain confidential information of the Seller, including
client and supplier lists, operational policies and methods, marketing plans, and other confidential information with respect to Seller and the Seller’s business and assets (collectively, “Confidential Information”). Confidential
Information includes not only written information but also information transferred electronically or by any other means. Buyer agrees, at all times from the date hereof and all times thereafter through Closing, to, and shall cause its affiliates,
officers, directors, employees and agents to: (a) treat and hold as confidential (and not disclose or provide access to any person to or use), any Confidential Information; and (b) if Buyer or any such affiliate, officer, director,
employee or agent becomes legally compelled to disclose any such Confidential Information, provide the Seller with prompt written notice of such requirement so that the Seller may seek a protective order or other remedy. Further, from the date
hereof through Closing, Buyer and/or its affiliates and principals shall not disclose the terms or existence of this Agreement or the sale and purchase hereunder in any manner whatsoever, whether by press releases, public announcement or otherwise
without Seller’s written consent. Buyer acknowledges and agrees that the Seller’s remedies at law for any breach or threatened breach of this paragraph may be inadequate, and that in addition to such remedies, the Seller shall be entitled
to equitable relief, including injunctive relief and specific performance, in the event of any such breach or threatened breach without the need to demonstrate that monetary damages are inadequate. Buyer understands Seller has endeavored to include
in the Confidential Information those materials which it believes to be reliable and relevant for the purpose of Buyer evaluating whether or not to proceed to Closing. However, Buyer acknowledges that neither the Seller (except as may be otherwise
expressly set forth herein) or Jefferies LLC (on Seller’s behalf) nor any of their respective directors, officers, employees, agents or outside advisors makes any representation or warranty as to the accuracy or completeness of the Confidential
Information and, subject to Seller’s representations and warranties set forth herein, such persons shall have no liability to Buyer resulting from any use of the Confidential Information. Further, other than with respect to Seller’s
representations and warranties set forth in this Agreement, Buyer affirmatively waives any claim it might have against either the Seller, its principals, agents, officers, directors, affiliates, advisors and/or Jefferies LLC in connection with the
Confidential Information. Buyer acknowledges that, subject to Seller’s representations and warranties set forth herein, the Confidential Information is/was offered as a guide only and that Buyer is/was solely responsible for independently
verifying any Confidential Information provided. Buyer agrees that due and adequate consideration has been given for this waiver and that the waiver is a material inducement to Seller entering into this agreement. In the event of any conflict
between the terms contained herein and the original Non-Disclosure/Confidentiality Agreement signed between the parties, the provisions contained herein shall control. This provision shall survive Closing. 

(B) Seller and Buyer hereby covenants and agrees that, at all times after the Effective Date and continuing after the Closing, unless
consented to in writing by the other party (which consent may be granted or withheld in the sole discretion of such party), no press release or other public disclosure concerning this transaction may be made by either party which discloses the
Purchase Price or any other economic terms of this transaction, and Seller and Buyer agrees to use best efforts to prevent disclosure of any such restricted information by any third party. 

  
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 (C) Notwithstanding the foregoing, (i) Buyer or Seller shall be entitled to make disclosures
concerning this Agreement and materials provided hereunder to its lenders, attorneys, accountants, employees, agents and other service professionals as may be reasonably necessary in furtherance of the transactions contemplated hereby,
(ii) Buyer shall be entitled to make disclosures concerning this transaction and materials provided hereunder to its potential debt and equity sources; (iii) Seller shall be entitled to make disclosures concerning this transaction to its
current lenders in connection with any defeasance or yield maintenance; and to any partners or members of Seller; and (iii) Buyer and Seller shall be entitled to make such disclosures concerning this Agreement and materials provided hereunder
as may be necessary to comply with (a) any court order, (b) the directive of any applicable governmental authority, or (c) any applicable securities law, rule and/or regulation. 

The provisions of this Section 18 shall survive Closing or any termination of this Agreement. 

19. SELLER ONGOING OPERATIONS. Prior to the Closing Date, Seller shall continue to fulfill all of its obligations under the terms of the Leases and the
Service Contracts and the Seller shall maintain, repair, manage and operate the Property in substantially the same condition and manner as the Property is now maintained, repaired, managed and operated, and in accordance with the standards of a
professional property manager for the kind and type of self-storage facility project in the area where the Property is located. Until Closing, the Seller will continue to keep the Property insured in the amounts and with the coverages as of the date
hereof. 
 20. DEFAULT. 
 A. If Buyer fails or
refuses to perform in accordance with the terms of this Agreement, the Seller shall provide Buyer with written notice of such default with specificity, and the Buyer shall have five (5) business days from receipt of such notice to cure such
default, and if the default is monetary in nature, the Buyer shall have one two (2) business days from receipt of such notice to cure such default. No notice shall be required with respect to Buyer’s failure to timely close as and when
required under this Agreement. Any default by Buyer beyond the aforementioned cure period, or Buyer’s failure to timely close, shall result in the Deposit being forfeited to Seller as liquidated damages, which shall be Seller’s sole and
exclusive remedy. In that regard, Seller acknowledges and agrees that (i) the Deposit is a reasonable estimate of, and bears a reasonable relationship to, the damages suffered and costs incurred by Seller as a result of having subjected the
Property to the terms of this Agreement; (ii) the actual damages suffered and costs incurred by Seller as a result of such failure of Buyer to close under this Agreement would be extremely difficult and impractical to determine;
(iii) Buyer seeks to limit its liability under this Agreement to the amount of the Deposit in the event this Agreement is terminated and the transaction contemplated by this Agreement does not close due to a default of Buyer under this
Agreement; and (iv) the Deposit shall be and constitute valid liquidated damages. In the event of such termination, this Agreement shall become null and void other than the provisions which expressly survive Closing or termination of this
Agreement. 
 B. If Seller fails or refuses to perform in accordance with the terms of this Agreement, within five (5) business days
following Seller’s receipt of written notice from Buyer regarding a default by Seller hereunder (except that no such notice and cure period shall be 

  
 30 

 
applicable with respect to Seller’s failure to timely close as and when required under this Agreement) Buyer shall have the right, to either: (i) seek enforcement of this Agreement by
decree of specific performance, and if specific performance is granted, Seller shall reimburse Buyer for its costs and expenses (including without limitation reasonable attorneys’ fees and disbursements); or (ii) terminate this Agreement,
in which event (a) the Deposit shall be returned to Buyer, (b) Seller shall reimburse Buyer for all out of pocket expenses incurred by Buyer and/or any affiliate of Buyer in connection with this Agreement (including without
limitation, all fees, costs or expenses incurred by Buyer in connection with the financing of its intended acquisition of the Property, such as loan deposits, commitment fees, rate lock fees and similar lender expenses), and (c) this Agreement
shall be deemed null, void, and of no further force or effect between the parties other than any obligations which expressly survive a termination of this Agreement,. Notwithstanding the foregoing, if specific performance of Seller’s obligation
to convey the Property is not available to Buyer due to an intentional act of Seller, or, if upon the exercise of its right to specific performance, Buyer would not receive substantially the benefit of its bargain due to an intentional act by
Seller, then in either such case, in addition to terminating this Agreement and receiving the return of the Deposit, Buyer may seek actual damages. 

C. In no event shall either party be entitled to any remedies or damages for breach of this Agreement, except as set forth hereinabove. In no
event shall any party be entitled to punitive or consequential damages for the breach of this Agreement. 
 21. DISCLAIMERS AND WAIVERS 

A. No Reliance on Documents. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 7 HEREOF AND IN
THE CLOSING DOCUMENTS, SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR INFORMATION DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREBY. BUYER ACKNOWLEDGES
AND AGREES THAT ALL MATERIALS, DATA AND INFORMATION DELIVERED BY SELLER TO BUYER IN CONNECTION WITH THE TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED TO BUYER AS A CONVENIENCE ONLY AND THAT ANY RELIANCE ON OR USE OF SUCH MATERIALS, DATA OR
INFORMATION BY BUYER SHALL BE AT THE SOLE RISK OF BUYER, EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SUBJECT TO SELLER’S REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT AND IN THE
DOCUMENTS DELIVERED AT CLOSING, BUYER ACKNOWLEDGES AND AGREES THAT (A) ANY ENVIRONMENTAL OR OTHER REPORT WITH RESPECT TO THE PROPERTY WHICH IS DELIVERED BY SELLER TO BUYER SHALL BE FOR GENERAL INFORMATIONAL PURPOSES ONLY, (B) BUYER SHALL
NOT HAVE ANY RIGHT TO RELY ON ANY SUCH REPORT DELIVERED BY SELLER TO BUYER, BUT RATHER WILL RELY ON ITS OWN INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY AND ANY REPORTS COMMISSIONED BY BUYER WITH RESPECT THERETO, AND (C) NEITHER SELLER, ANY
AFFILIATE OF SELLER NOR THE PERSON OR ENTITY WHICH PREPARED ANY SUCH REPORT DELIVERED BY SELLER TO BUYER SHALL HAVE ANY LIABILITY TO BUYER FOR ANY INACCURACY IN OR OMISSION FROM ANY SUCH REPORT. 

  
 31 

 Disclaimers. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN SECTION 7
HEREOF AND IN THE CLOSING DOCUMENTS, BUYER UNDERSTANDS AND AGREES THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT
NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S LIMITED OR SPECIAL WARRANTY OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES,
LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH APPLICABLE LAWS, THE ABSENCE OR PRESENCE OF HAZARDOUS MATERIALS OR OTHER TOXIC
SUBSTANCES (INCLUDING WITHOUT LIMITATION MOLD OR ANY MOLD CONDITION) COMPLIANCE WITH ENVIRONMENTAL LAWS OR ACCESS LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO
BUYER, OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY. BUYER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO BUYER AND BUYER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT
EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT CLOSING. BUYER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE
PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT
CLOSING. 
 BUYER REPRESENTS TO SELLER THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT
NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS
MATERIALS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY OR WITH RESPECT TO ACCESS LAWS, AND WILL RELY 

  
 32 

 
SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF
SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE DOCUMENTS DELIVERED AT CLOSING. UPON CLOSING, BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, DESIGN, CONSTRUCTION DEFECTS, ADVERSE PHYSICAL OR
ENVIRONMENTAL CONDITIONS, OR NONCOMPLIANCE WITH ACCESS LAWS, MAY NOT HAVE BEEN REVEALED BY BUYER’S INVESTIGATIONS, AND BUYER, UPON CLOSING, SUBJECT TO SELLER’S REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT OR IN THE DOCUMENTS
DELIVERED AT CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S AND ITS PARTNERS’ RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AFFILIATES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT OR UNDER ANY ENVIRONMENTAL LAW), LOSSES, DAMAGES, LIABILITIES, FINES, PENALTIES (WHETHER BASED ON STRICT LIABILITY OR OTHERWISE), COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND
COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S AND ITS PARTNERS’ RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, AFFILIATES AND AGENTS) AT
ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS OR ACCESS LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS,
EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. THE FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY CLAIM OF BUYER WITH RESPECT TO ANY BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY SELLER THAT EXPRESSLY SURVIVE
CLOSING AS SET FORTH HEREIN OR IN THE DOCUMENTS DELIVERED AT CLOSING. 
 BUYER AGREES THAT SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION OR REMOVAL
OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS (INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION) ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE DATE OF CLOSING, SELLER SHALL HAVE NO LIABILITY TO BUYER TO PERFORM OR PAY FOR
SUCH INVESTIGATION, CLEAN-UP, REMOVAL OR REMEDIATION, AND BUYER EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY. BUYER FURTHER AGREES THAT SHOULD ANY INVESTIGATION OR CURATIVE ACTION ON OR RELATED TO THE PROPERTY BE REQUIRED AFTER THE DATE
OF CLOSING UNDER ANY ACCESS LAWS, SELLER SHALL HAVE NO LIABILITY TO BUYER TO PERFORM OR PAY FOR SUCH INVESTIGATION OR CURATIVE ACTION AND BUYER 

  
 33 

 
EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY. THE FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY SELLER HEREIN
THAT EXPRESSLY SURVIVE CLOSING PURSUANT HERETO OR OF ANY REPRESENTATIONS OR WARRANTIES SET FORTH IN THE DOCUMENTS DELIVERED AT CLOSING. 
 BUYER
REPRESENTS AND WARRANTS THAT THE TERMS OF THE RELEASE CONTAINED HEREIN AND ITS CONSEQUENCES HAVE BEEN COMPLETELY READ AND UNDERSTOOD BY BUYER, AND BUYER HAS HAD THE OPPORTUNITY TO CONSULT WITH, AND HAS CONSULTED WITH, LEGAL COUNSEL OF BUYER’S
CHOICE WITH REGARD TO THE TERMS OF THIS RELEASE. BUYER ACKNOWLEDGES AND WARRANTS THAT BUYER’S EXECUTION OF THIS RELEASE IS FREE AND VOLUNTARY. 

B. The term “Access Laws” means the Americans With Disabilities Act, the Fair Housing Act, the Rehabilitation Act and other federal
laws and all applicable state, regional, county, municipal and other local laws, regulations and ordinances governing access to handicapped or disabled persons or the construction or design of residential dwelling units, places of public
accommodation, or common areas which are at or on the Property. 
 C. Seller and Buyer acknowledge that the provisions of this
Section 21 are an integral part of the transactions contemplated in this Agreement and a material inducement to Seller to enter into this Agreement and that Seller would not enter into this Agreement but for the provisions of this
Section 21. Seller and Buyer agree that the provisions of this Section 21 shall survive Closing or any termination of this Agreement. 

22. MODIFICATIONS. This Agreement cannot be changed orally, and no agreement shall be effective to waive, change, modify or discharge it in whole or in part
unless such agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. Signatures inscribed on the signature pages of this Agreement or any formal amendment which are
transmitted by telecopy or email transmission (e.g., PDF files) shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver to the other party an executed original of this Agreement or any such formal
amendment with its actual signature, but a failure to do so shall not affect the enforceability of this Agreement or any such formal amendment, it being expressly agreed that each party to this Agreement or any formal amendment shall be bound by its
own telecopied or emailed signature and shall accept the telecopied or emailed signature of the other party to this Agreement or any formal amendment. 

23. CALCULATION OF TIME PERIODS. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after
which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Property is
located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 5:00 p.m., Eastern Time. 

  
 34 

 24. SUCCESSORS AND ASSIGNS. Subject to the limitations of assignment as provided for herein, the terms and
provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto. 
 25. ENTIRE AGREEMENT. This Agreement,
including the Schedules attached hereto contain the entire agreement between the Parties pertaining to the subject matter hereof and fully supersede all prior written or oral agreements and understandings between the Parties pertaining to such
subject matter. 
 26. FURTHER ASSURANCES. Each Party agrees that it will without further consideration execute and deliver such other documents and take
such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing, Buyer
shall, if requested by Seller, execute acknowledgments of receipt with respect to any materials delivered by Seller to Buyer with respect to the Property. The provisions of this Section 26 shall survive Closing. 

27. COUNTERPARTS. This Agreement may be executed in identical counterparts, and all such executed counterparts shall constitute the same agreement. It shall
be necessary to account for only one such counterpart in proving this Agreement. 
 28. SEVERABILITY. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 
 29.
APPLICABLE LAW. This Agreement is performable in the state in which the Property is located and shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United States and the laws of such state.
Seller and Buyer hereby irrevocably submit to the jurisdiction of any state or federal court sitting in the state and judicial district in which the Property is located in any action or proceeding arising out of or relating to this Agreement and
hereby irrevocably agree that all claims in respect of such action or proceeding shall be heard and determined in a state or federal court sitting in the state and judicial district in which the Property is located. Buyer and Seller agree that the
provisions of this Section 29 shall survive the Closing of the transaction contemplated by this Agreement. 
 30. NO THIRD PARTY BENEFICIARY.
The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Buyer only and are not for the benefit of any third party, and accordingly, no third party shall have the
right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 
 31. SELLER’S ACCESS TO RECORDS AFTER
CLOSING. Buyer shall reasonably cooperate with Seller for a period of two (2) years after Closing (or such lesser period as Buyer 

  
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may own the Property) to make available Buyer’s property records, as Seller may reasonably request, in case of Seller’s need in response to any legal requirement, tax audit, tax return
preparation, securities law filing, or litigation threatened or brought against Seller, by allowing Seller and its agents or representatives access, upon reasonable advance notice (which notice shall identify the nature of the information sought by
Seller), at all reasonable times to examine and make copies, at Seller’s expense, of any and all instruments, files and records which predate the Closing; provided, however, that nothing contained in this Section shall require Buyer to retain
any files or records for any particular period of time. This Section 31 shall survive Closing. 
 32. CAPTIONS. The section headings appearing
in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. 

33. CONSTRUCTION. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction
to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any schedules or amendments hereto. 

34. TERMINATION OF AGREEMENT. It is understood and agreed that if either Buyer or Seller terminates this Agreement pursuant to a right of termination granted
hereunder, such termination shall operate to relieve Seller and Buyer from all obligations under this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement. 

35. SURVIVAL. The provisions of the following Sections of this Agreement shall survive Closing and shall not be merged into the execution and delivery of the
Deed (4(C), 7(E), 8(C), 11(B)(2), 12(A), 12(B), 14, 18, 21, 26, and any other provisions contained herein that by their terms survive the Closing (the “Obligations Surviving Closing”). Except for the Obligations Surviving Closing,
all representations, warranties, covenants and agreements contained in this Agreement shall be merged into the instruments and documents executed and delivered at Closing. The Obligations Surviving Closing shall survive the Closing; provided,
however, that the representations and warranties of Seller contained in Section 7, as updated by Seller’s Closing Certificate, and the representations and warranties of Buyer contained in Section 8, shall survive for
the periods set forth herein. 
 36. TIME OF ESSENCE. Time is of the essence with respect to this Agreement. 

37. COVENANT NOT TO RECORD. Buyer shall not record this Agreement or any memorandum or other evidence thereof other than in connection with a specific
performance suit. Any such prohibited recording shall constitute a material default hereunder on the part of Buyer. 
 38. LIMITATION OF SELLER’S
LIABILITY. Buyer shall have no recourse against any of the past, present or future, direct or indirect, shareholders, partners, members, managers, principals, directors, officers, agents, incorporators, affiliates or representatives of Seller or its

  
 36 

 
general partner or of any of the assets or property of any of the foregoing for the payment or collection of any amount, judgment, judicial process, arbitral award, fee or cost or for any other
obligation or claim arising out of or based upon this Agreement and requiring the payment of money by Seller. This Section 38 shall survive the Closing. 

39. JURY WAIVER. IN ANY LAWSUIT OR OTHER PROCEEDING INITIATED BY SELLER OR BUYER UNDER OR WITH RESPECT TO THIS AGREEMENT, TO THE EXTENT ENFORCEABLE UNDER
APPLICABLE LAW, SELLER AND BUYER EACH WAIVE ANY RIGHT IT MAY HAVE TO TRIAL BY JURY. 
 40. TERMINATION OF COMPANION AGREEMENTS. The Closing under this
Agreement is expressly contingent upon a simultaneous closing of the Companion Agreements. If any term, provision or condition of this Agreement provides that the Buyer or Seller may terminate, or that this Agreement shall terminate upon the
happening of (or failure to happen of) any term, provision or condition of this Agreement (except a termination in accordance with paragraphs 15 and 49 herein), or upon an event of default by either the Buyer or the Seller which, by its terms,
terminates this Agreement (a “Termination Event”), then this Agreement and all Companion Agreements shall be deemed to be terminated, in which case the Deposit shall be delivered to the party entitled thereto under this Agreement,
and neither Seller nor Buyer shall have any further rights or obligations under this Agreement and the Companion Agreements, except to the extent such rights and obligations expressly survive a termination of this Agreement and the Companion
Agreements respectively. For avoidance of doubt, (i) a default by the seller under any Companion Agreement shall be deemed a default by Seller under this Agreement as well as a default by each of the sellers under all of the other Companion
Agreements, in which event Buyer shall have the rights and remedies set forth in Section 20(B) of this Agreement, (ii) a default by the seller under this Agreement shall constitute a default by each of the sellers under all of the
Companion Agreements, (iii) a default by the buyer under any Companion Agreement shall be deemed to be a default by Buyer under this Agreement as well as a default by each of the buyers under all of the other Companion Agreements, in which
event Seller shall have the rights and remedies set forth in Section 20(A) of this Agreement; and (iv) a default by Buyer under this Agreement shall constitute a default by each of the buyers under all of the Companion Agreements.

 41. EFFECTIVE DATE For purposes of this Agreement, the “Effective Date” shall mean the later of the dates that this Agreement has
been executed by Seller and Buyer, as indicated on the signature page hereof, unless this Agreement is executed by Seller and Buyer on the same date, in which event such same date shall constitute the Effective Date. 

42. NON-COMPETITION. Seller shall deliver a non-compete agreement (the “Non-Compete Agreement”) to Buyer at
Closing in form and content satisfactory to Buyer executed by Seller and the Representing Parties. The Non-Compete Agreement shall provide that neither Seller nor the Representing Parties nor any of their respective principals, partners, members,
managers, directors, officers, shareholders and/or affiliates may directly or indirectly develop, own, lease, manage or operate a self- storage facility for a period of three (3) years subsequent to the Closing within a three (3) mile
radius of the Property. 

  
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 43. COOPERATION WITH BUYER’S AUDITORS AND SEC FILING REQUIREMENTS. 

A. From the Effective Date through and including seventy five (75) days after the Closing Date, Seller shall provide to Buyer (at
Buyer’s expense) copies of, or shall provide Buyer access to, the books and records with respect to the ownership, management, maintenance and operation of the Property and shall furnish Buyer with such additional information concerning the
same as Buyer shall reasonably request and which is in the possession or control of Seller, or any of its affiliates, agents, or accountants, to enable Buyer (or Strategic Storage Trust II, Inc., a Maryland corporation and/or
Strategic Storage Growth Trust, Inc, a Maryland corporation or their respective affiliates), to file its or their Form 8-K, if, as and when such filing may be required by the Securities and Exchange Commission (“SEC”). At Buyer’s
sole cost and expense, Seller shall allow Buyer’s auditor (CohnReznick LLP or any successor auditor selected by Buyer) to conduct an audit of the income statements of the Property for the calendar year prior to Closing (or to the date of
Closing) and the two (2) prior years, and shall cooperate (at no cost to Seller) with Buyer’s auditor in the conduct of such audit. In addition, Seller agrees to provide to Buyer’s auditor a letter of representation substantially in
the form attached hereto as Schedule 13 (the “Representation Letter”), and, if requested by such auditor, will provide historical financial statements for the Property, including income and balance sheet data for the
Property, whether required before or after Closing. Without limiting the foregoing, (i) Buyer or its auditor may audit Seller’s operating statements of the Property, at Buyer’s expense, and Seller shall provide such documentation as
Buyer or its auditor may reasonably request in order to complete such audit, (ii) Seller shall furnish to Buyer such financial and other information as may be reasonably required by Buyer to make any required filings with the SEC or other
governmental authority; provided, however, that the foregoing obligations of Seller shall be limited to providing such information or documentation as may be in the possession of, or reasonably obtainable by, Seller, or its agents and
accountants, at no cost to Seller, and in the format that Seller (or its affiliates, agents or accountants) have maintained such information, and (iii) Seller and Buyer acknowledge and agree that the Representation Letter is not intended
to expand, extend, supplement or increase the representations and warranties made by Seller to Buyer pursuant to the terms and provisions of this Agreement or to expose Seller to any risk of liability to third parties. 

B. Although the Representation Letter is premised upon Seller utilizing generally accepted accounting principles (“GAAP”), Seller
has informed Buyer that Seller’s books and records are not kept in accordance with GAAP, but rather use the modified cash and accrual basis method of accounting. Inasmuch as the Representation Letter requires that Seller’s books and
records be kept in accordance with GAAP, Buyer has agreed, at its expense, to have its auditors convert Seller’s books and records to GAAP, prior to Seller executing the Representation Letter, and Seller agrees to so execute the Representation
Letter following the conversion of its books and records to GAAP by Buyer’s auditors, conditioned upon Seller being able to review the financials after conversion to GAAP. If Seller believes that an error or misrepresentation exists, the
parties will mutually agree to resolve same between the accountants for each party. Additionally, notwithstanding anything herein, Seller shall not be required to prepare any additional documents that do not already exist. 

The provisions of this Section 43 shall survive Closing. 

  
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 44. INDEPENDENT CONSIDERATION. Contemporaneously with the execution hereof, Buyer shall deliver to Seller the sum
of One Hundred and no/100 Dollars ($100.00), representing independent consideration for the Due Diligence Period and Buyer’s right to terminate this Agreement during the Due Diligence Period. 

45. OBLIGATION TO PROVIDE NOTICES. Seller agrees to promptly provide Buyer with copies of any and all notices which Seller receives from and after the
Effective Date concerning (i) any proposed or threatened condemnation of the Property, (ii) any alleged violations of the Property with respect to applicable governmental laws or requirements, (iii) any litigation filed or threatened
against Seller or the Property, or (iv) any other matter that adversely affects, or potentially could adversely affect, the Property. 
 46. AUCTION.
Seller will conduct an auction for all units seventy-five (75) days or more past due prior to Closing, in accordance with Seller’s current operating practices. All auctions shall be conducted in accordance with the laws of the state where
the Property is situated. Seller will indemnify and hold Buyer and Buyer’s agents and representatives harmless from any legal actions brought by any tenant as a result of any such auction or any other action of Seller with regard to the sale of
a tenant’s property during the period Seller owned the Property. Seller’s obligations under the immediately preceding sentence expressly shall survive Closing. 

47. PROPERTY APARTMENTS. In the event the Property contains one or more apartments (collectively, the “Property Apartments”, whether one or more),
whether for the use of the property manager or otherwise, Seller shall (i) cause all tenants and other occupants of the Property Apartments to vacate same not later than Closing, (ii) deliver possession of the Property Apartments to Buyer
at Closing, in good condition, free and clear of the claims of any tenants or other existing tenancies, and not otherwise subject to the rights or claims of any third party, and (iii) indemnify and hold Buyer harmless from and against any
claims, causes of action, loss, cost or expense incurred by Buyer with respect to the Property Apartments. Seller’s obligations contained in this Section 47 expressly shall survive Closing. 

48. CELL TOWER LEASES AND BILLBOARD LEASES. Seller shall transfer to Buyer at Closing all of Seller’s right, title and interest in and to all cell tower
leases, if any, relating to the Property, as set forth on Schedule 11 hereto, pursuant to an instrument of assignment in form reasonably acceptable to Seller and Buyer, Similarly, Seller shall transfer to Buyer at Closing all of Seller’s right,
title and interest in and to all billboard leases, if any, relating to the Property, as set forth on Schedule 12 hereto, pursuant to an instrument of assignment in form reasonably acceptable to Seller and Buyer, All rentals payable under any such
cell tower lease and billboard lease shall be prorated between Seller and Buyer at Closing. 
 49. ENVIRONMENTAL. Buyer shall conduct an environmental
inspection of the Property during the Due Diligence Period (the “Initial Report”). In the event that Buyer determines (as a result of a third party report commissioned by Buyer), after the date of the initial inspection set forth in the
Initial Report but prior to Closing, that there are conditions on, at or relating to the Property which arose after the inspection date set forth in the Initial Report and which are in non-compliance with any Environmental Law that will require
remediation under any applicable 

  
 39 

 
federal or state laws, and the cost of such remediation is greater than $150,000.00 and Seller has not agreed to remediate, and in fact such condition has not been remediated prior to Closing, at
Seller’s cost, then, notwithstanding anything to the contrary contained herein, Buyer may terminate this Agreement on or before the Closing Date upon written notice to Seller, in which event, the portion of the Deposit allocable to the
Property, as set forth on Exhibit “B” hereto, shall be immediately returned to Buyer, without the consent or joinder of Seller being required and notwithstanding any instructions to the contrary which might be provided by Seller, and
thereafter neither party hereto shall have any further rights or obligations under this Agreement except for such obligations which, pursuant to the terms of this Agreement, survive the termination hereof. In the event this Agreement is terminated
pursuant to the provisions of this paragraph: (i) same shall not violate the conditions set forth in Paragraph 40 herein and the remainder of the Companion Agreements shall proceed to Closing; and (ii) the Seller’s retention and
operating of the Property as a result of the termination shall not be deemed to violate any non-compete provisions contained herein. 
 50. MINDFUL
PROTECTION PLAN. Some of the Leases may have the Mindful Protection Plan addendum (the “Plan”). Upon expiration of the Due Diligence Period, if Buyer has not canceled this Agreement, Seller shall give notice to the tenants with the Plan
(the date of such notice being herein called the “Notice Date”) that the Plan is being canceled effective as of the Closing Date, and shall cause the Plan to so terminate on the Closing Date. After the Notice Date, Buyer may provide
information to the tenants of any new plan Buyer intends to put in place. 
 51. NON-SOLICITATION OF EMPLOYEES. Buyer may speak with Seller’s employees
during the Due Diligence Period about issues concerning the Property so long as a representative from Seller is present. However, Buyer may not solicit any employees of Seller’s for hire until after the Due Diligence Period has expired and so
long as Buyer has not elected to cancel this Agreement. 
 52. EXCLUSIVITY. So long as this Agreement is in full force and effect, Seller agrees not to
enter into another purchase and sale agreement relating to the Property with any other party. 
 53. NO RE-TRADE. The Buyer acknowledges that the terms
contained herein were a material inducement for the Seller to enter into this Agreement. Accordingly, subject to any matters that may be disclosed by Buyer’s property condition report and/or environmental studies, the Buyer agrees that the
terms contained herein shall not be re-negotiated and that the economic terms shall not be re-traded. 
 54. TRANSFER OF WEBSITE. At Closing, Seller shall
cause its affiliate, Mindful Management, LLC (“Mindful”) to transfer to Buyer or to such entity as Buyer may designate, the website and URL- www.mindfulstorage.com which is owned by Mindful. Mindful agrees to execute any and all
reasonable documents necessary to transfer the website and URL. Mindful shall join in the execution of this Agreement for the purpose of consenting to this provision. Within twenty four (24) hours of transferring the website, Buyer shall remove
any references to “Mindful” including any branding associated therewith. Buyer shall not be permitted to use the name “Mindful” in connection with its business in any capacity other than as part of the website address set forth
above. This provision shall survive Closing. 

  
 40 

 55. LIST OF EXHIBITS AND SCHEDULES. The following exhibits and schedules are attached to this Agreement and
incorporated herein for all purposes: 
  

			
	EXHIBIT A	  	Legal Description of the Real Property
	EXHIBIT B	  	Allocation of Purchase Price and Deposit to Florida, Maryland and Asheville Properties
	EXHIBIT C	  	Description of Contract for Purchase and Sale of Asheville Properties
	Schedule 1	  	List of Furniture, Fixtures and Equipment
	Schedule 2	  	List of Service Contracts
	Schedule 3	  	Deliverables List
	Schedule 4	  	Form of Deeds
	Schedule 5	  	Intentionally Omitted
	Schedule 6	  	Assignment of Personal Property, Service Contracts, Warranties and Leases
	Schedule 7	  	Tenant Notice
	Schedule 8	  	Seller Certificate
	Schedule 9	  	Rent Roll
	Schedule 10	  	Companion Agreements
	Schedule 11	  	Cell Tower Leases
	Schedule 12	  	Billboard Leases
	Schedule 13	  	Letter of Representation

 [signature page follows] 

  
 41 

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

					
	BUYER:
	
	SST II Acquisitions, LLC, a Delaware limited liability company
		
	By:	 	 /s/ H. Michael Schwartz

		 	H. Michael Schwartz, President
	Date:	 	March 25, 2016
	
	SELLER:
	
	Nob Hill Storage Limited Partnership, a Florida limited partnership
			
		 	By:	 	Nob Hill Storage, LLC, a Delaware limited liability company, its General Partner
		
	By:	 	 /s/ Jeffrey S. Pechter

		 	Jeffrey S. Pechter, Manager
		
	Date:	 	March 25, 2016
	
	Mindful Management, LLC, a Florida
	limited liability company
	(for the purpose of Paragraph 54 only)
		
	By:	 	 /s/ Jeffrey S. Pechter

	Name:	 	Jeffrey Pechter
	Title:	 	Manager
		
	Date:	 	March 25, 2016

  
 42

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