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SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”), dated as of October 4, 2021, is entered into by and among SunPower Corporation, a Delaware corporation (together with its successors, “SunPower”), Falcon Acquisition HoldCo, Inc., a Delaware corporation (together with its successors, “AcquisitionCo,” and collectively with SunPower, “Purchaser”), Peterson Partners VII, L.P., a Delaware limited partnership, Jenny Lynn Lee, as Trustee of The Keyhole Canyon Trust, dated July 28, 2021, Michael R. Cahill, as Trustee of The Skein Trust, dated July 13, 2021, Michael R. Cahill, as Trustee of The Gosling Trust, dated July 13, 2021, Jeffrey Lee, Benjamin Peterson and Michael Rands (collectively, “Principal Sellers”), The Church of Jesus Christ of Latter-day Saints, a Utah corporation sole (the “Charitable Seller,” and collectively with Principal Sellers, “Sellers”), and Peterson Partners VII, L.P., a Delaware limited partnership, solely in its capacity as Sellers’ representative (“Seller Representative”). Purchaser, Sellers and Seller Representative are each referred to individually as a “Party” and collectively as the “Parties.”

WHEREAS, Sellers collectively own all of the issued and outstanding membership interests (collectively, the “Blue Raven Interests”), of Blue Raven Solar Holdings, LLC, a Delaware limited liability company (“Blue Raven”), and each Seller owns that number of Blue Raven Interests set forth opposite such Seller’s name on Exhibit A;

WHEREAS, Peterson Partners VII, L.P., Benjamin Peterson, and Michael Rands collectively own all of the issued and outstanding membership interests of Albatross Software, LLC, a Delaware limited liability company (“Albatross” and together with Blue Raven and each of the subsidiaries of Blue Raven, the “Company”), and each such Seller desires to sell that number of membership interests of Albatross set forth opposite such Seller’s name on Exhibit A, such interests representing thirty-five percent (35%) of the issued and outstanding membership interests of Albatross (collectively, the “Albatross Interests” and together with the Blue Raven Interests, the “Interests”); and

WHEREAS, subject to the terms and conditions set forth herein, Sellers desire to sell and transfer to Purchaser all of the Interests in exchange for the consideration described herein, and Purchaser desires to acquire the Interests from Sellers.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1
CERTAIN INTERPRETIVE MATTERS

Section 1.1    Certain Definitions. In addition to the terms defined elsewhere herein, the following capitalized terms have the meanings specified or referred to in this Section 1.1:

“2022 Contingent Payment” has the meaning set forth in Section 2.5(b).

“Closing Statement” has the meaning set forth in Section 2.4(b).

“Accounting Principles” means the accounting principles, practices, policies, methodologies and illustrative calculations of Closing Net Working Capital and revenue set forth on Exhibit B hereto.

“Adjusted Closing Escrow Amount” means the Escrow Amount less the pro rata portions of the Escrow Account attributable to each of The Skein Trust, the Gosling Trust, and Michael Rands, as set
forth in the Funds Flow Memorandum.

“Adjustment Escrow Amount” means $1,000,000.

“Affiliate” means (a) with respect to any specified Person, any other Person that directly or indirectly controls, is controlled by, or is under common control with, such specified Person, or (b) as to any Person that is a natural Person, any such Person’s spouse, parents, children and siblings, whether by blood, adoption or marriage, or any trust or similar entity for the benefit of any of the foregoing Persons. For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

“Affordable Care Act” has the meaning set forth in Section 3.14(j).

“Agreement” has the meaning set forth in the Preamble.

“Albatross” has the meaning set forth in the Recitals.
“Albatross Interests” has the meaning set forth in the Recitals.

“Albatross IP License Agreement” means that certain intellectual property agreement to be entered into between Albatross and Purchaser in the form attached hereto as Exhibit C.

“Amended and Restated Albatross LLC Agreement” means that certain Amended and Restated Limited Liability Company Agreement to be entered into by and among Peterson Partners, Ben, Michael Rands and the Purchaser, in the form attached hereto as Exhibit J.

“Ancillary Agreements” means all Interest Assignments, the Escrow Agreement, the Escrow Contribution Agreements, the Albatross IP License Agreement and the Amended and Restated Albatross LLC Agreement.

“Anti-Corruption Laws” has the meaning set forth in Section 3.20(a).

“Ben” means Benjamin Peterson, an individual residing in Lehi, Utah.

“Blue Raven” has the meaning set forth in the Recitals.

“Blue Raven Interests” has the meaning set forth in the Recitals.

“BTJD” has the meaning set forth in Section 10.20(a).

“Business” means the distribution of photovoltaic power generation through the sale and/or installation of residential rooftop photovoltaic solar systems.

“Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in Salt Lake City, Utah.

“Cash” means the aggregate amount of all cash and cash equivalents of Blue Raven determined in accordance with the Accounting Principles, which shall be net of the aggregate amount of all issued but uncleared checks and drafts issued by Blue Raven to the extent such amounts are not included as current liabilities in the calculation of Closing Net Working Capital, whether or not historically accounted for in Cash in accordance with the Accounting Principles.

“Cause” will be deemed to exist, as to each of Ben or Michael Rands, respectively, upon: (i) any misuse or misappropriation by him of the funds, assets or property of SunPower, Blue Raven or its Affiliate for any personal or other improper purpose; (ii) any act of fraud, material dishonesty, theft or embezzlement by him in connection with the business of the Company; (iii) any act of moral turpitude, material dishonesty, fraud by or felony conviction of him whether or not such acts were committed in connection with the business of SunPower or Blue Raven or any of their Affiliates that would reasonably be expected to be materially injurious to the financial condition or business reputation of SunPower or Blue Raven or any of their Affiliates; (iv) any willful failure by him to substantially perform the lawful instructions of the person(s) to whom he reports that are consistent with and appropriate for his position (other than as a result of total or partial incapacity due to physical or mental illness) following written notice by SunPower or Blue Raven to him of such failure; (v) any willful or gross misconduct in connection with his duties to SunPower or Blue Raven which, in the reasonable good faith judgment of the SunPower Board, would reasonably be expected to be materially injurious to the financial condition or business reputation of SunPower or Blue Raven or any of their Affiliates; (vi) his failure to cooperate in any audit or investigation of the business or financial practices of SunPower or Blue Raven or any of their subsidiaries; (vii) any willful failure to follow any material policy of Blue Raven or SunPower; or (viii) any willful and material breach of any other agreement with SunPower or Blue Raven, or a willful and material violation of SunPower’s code of conduct or other written policy; provided that no termination shall be for “Cause” under subsections (iii), (iv), (v), (vi), (vii) or (viii) unless the employee to which it relates has been provided with written notice of the circumstances alleged to constitute “Cause” and fails to cure such circumstances within 10 days of receiving such written notice. No act or failure to act will be considered willful (A) unless it is done or omitted to be done based on the applicable employee’s reasonable belief that his action or omission was in the best interest of SunPower or (B) if done or omitted to be done based on advice of counsel or at the direction of, or with the written consent or approval of, the SunPower Board.

“Change in Control” means (i) a sale of all or substantially all of the assets of a Person, (ii) any merger, consolidation, or other business combination transaction of a Person with or into another corporation, entity, or person, other 
than a transaction in which the holders of at least a majority of the shares of voting capital stock of such Person outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity or a parent thereof) a majority of the total voting power represented by the shares of voting capital stock of such Person (or the respective surviving entity or parent thereof) outstanding immediately after such transaction, (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of a Person, (iv) one or more contested elections of members of the board of directors of a Person during a period of twenty-four (24) consecutive months, as a result of which or in connection with which the persons who were members of the board before the first of such elections or their nominees cease to constitute a majority of the board of directors of such Person, or (v) a dissolution or liquidation of a Person.

“Charitable Seller” has the meaning set forth in the Preamble.

“Charitable Transfer Agreement” means that certain Assignment of Membership Units, dated October 1, 2021, in which the Charitable Seller acquired membership units in Blue Raven.

“Closing” has the meaning set forth in Section 2.3.

“Closing Cash Payment” has the meaning set forth in Section 2.2(a).

“Closing Date” has the meaning set forth in Section 2.3.

“Closing Net Working Capital” means (a) the aggregate amount of current assets of Blue Raven (excluding intercompany receivables and deferred Tax assets, but including Cash), minus (b) the aggregate amount of current liabilities of Blue Raven (excluding intercompany payables, deferred Tax liabilities, the Deferred Service Provider Payments, the Contingent Purchase Consideration, and Transaction Expenses to the extent reducing the Initial Cash Payment). The current assets and current liabilities of Blue Raven, and all inclusions and exclusions with respect thereto, shall be determined as of the Reference Time in accordance with the Accounting Principles. Further, Closing Net Working Capital shall be adjusted in accordance with the Accounting Principles.

“Closing Statement” has the meaning set forth in Section 2.4(b).

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

“Collective Bargaining Agreement” has the meaning set forth in Section 3.15(c).

“Company” has the meaning set forth in the Recitals.

“Company Intellectual Property” means all Owned Intellectual Property and all Company Licensed IP.

“Company Licensed IP” means all Intellectual Property licensed to the Company pursuant to an IP License including the Albatross IP License Agreement.

“Company Products” means all products and services that have been or are currently offered, distributed, sold, leased, installed or under development in any material respect by the Company.

“Competition Authorities” means Governmental Authorities responsible for enforcing Competition Laws.

“Competition Laws” means the HSR Act and all other Laws regarding competition.

“Confidential Information” means, with respect to a Person, any information of a confidential or proprietary nature (whether or not specifically labeled or identified as “confidential”) that relates to such Person’s business, including any trade secrets or confidential business or technical information of such Person or its products, customers, licensees, suppliers or development or alliance partners or vendors, regardless of when or how such Person may have acquired such information, product development methods and business techniques, work plans, formulas, test results and information, applications, algorithms, technical information, manufacturing information, design information, cost or pricing information, know-how, technology, prototypes, ideas, inventions, improvements, training, sales volume service and business manuals, unpublished promotional materials, development partnerships and other alliances, customer lists, prospective customer lists and other business information, materials and property; provided, however, that Confidential Information will not include information 
that (a) has become generally available and publicly known through no wrongful act or breach of any obligation of confidentiality by any of the Parties or any of their Affiliates or any of their respective employees, officers, directors, managers, representatives or agents or (b) was approved in writing for release by the Person whose Confidential Information it otherwise would be.

“Confidentiality Agreement” means the Confidentiality Agreement, dated as of October 8, 2020, by and between SunPower and Blue Raven.

“Consent” means any notice to, any filing, registration, designation or declaration with, or any authorization, consent, waiver or approval of, any Governmental Authority or other Person.

“Contest” has the meaning set forth in Section 7.6.

“Contingent Purchase Consideration” means the payments to be made to The Skein Trust, The Gosling Trust, and Michael Rands, respectively, in accordance with the terms of this Agreement and in the amounts set forth on Exhibit E attached hereto.

“Contracts” means any agreement, contract, lease, license, commitment, obligation, mortgage, note, bond, guaranty, loan or credit agreement, promise, or undertaking (whether written or oral and whether express or implied) that is legally binding.

“Copyrights” has the meaning set forth in the definition of Intellectual Property.

“COVID-19 Measures” means (i) any Law, directive, guidelines or recommendations promulgated by any industry group or any Governmental Authority related to or in response to the COVID- 19 Pandemic, including any quarantine, “shelter in place,” “stay at home,” workforce reduction, social distancing, shut down, closure, sequester, safety or similar directives, guidelines or recommendations, and (ii) the reversal or discontinuation of any of the foregoing.

“COVID-19 Pandemic” means the novel strain of coronavirus (SARS-Cov-2) (including all additional variations and strains thereof) and its disease commonly known as COVID-19, which was declared to be a global pandemic by the World Health Organization on March 11, 2020.

“D&O Indemnified Persons” has the meaning set forth in Section 6.4.

“Data Protection Laws” means all applicable Laws pertaining to data protection, data privacy, data security, data breach notification, and cross-border data transfer in the United States of America, and elsewhere in the world, including but not limited to the Telephone Consumer Protection Act (“TCPA”), Gramm-Leach-Bliley Act (GLBA), and the Fair Credit Reporting Act (FCRA).

“Data Protection Requirements” means all applicable (i) Data Protection Laws; (ii) Privacy Policies; (iii) terms of any Contracts relating to the Company’s collection, use, storage, disclosure, or crossborder transfer of Personal Data; (iv) frameworks or obligations voluntarily adopted by the Company; and (v) industry standards and/or codes-of-conduct to which the Company is bound or apply in the respective industries in which Company operates, and which govern the collection, use, storage, disclosure, or crossborder transfer of Personal Data.

“Deal Communications” has the meaning set forth in Section 10.20(d).

“Deferred Service Provider Payments” means the payments to be made to individuals pursuant to the Retention Bonus Agreements in accordance with the terms of such agreement and in the amounts set forth on Exhibit D attached hereto. Deferred Service Provider Payments shall not be considered part of the Purchase Price except to the extent forfeited amounts are paid to Sellers pursuant to Section 2.5(a).

“Direct Claim” has the meaning set forth in Section 9.6.

“Disclosure Schedules” means the disclosure schedules attached hereto corresponding to the applicable sections hereof. References herein to “Schedule __” (with the applicable section number inserted in place of the “__”) refer to sections of the Disclosure Schedules.

“Dispute Notice” has the meaning set forth in Section 2.4(d).

“Environmental Claim” means (a) any claim, action, cause of action, suit, proceeding, investigation, order, demand or notice by any Governmental Authority or other Person alleging Environmental Liabilities, and (b) any written request for information by any Governmental Authority issued under the authority of an Environmental Law.

“Environmental Laws” means all Laws relating in any way to pollution or protection of the environment (including, without limitation, ambient air, vapor, surface water, ground water, land surface or subsurface strata), management, use, preservation or reclamation of natural resources, the presence, management or Release or threatened Releases of, or exposure to, Hazardous Materials, or to human health and safety, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. § 136 et seq.), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) (but only as such Law relates to or regulates workplace exposures to Hazardous Materials), each of their state and local counterparts or equivalents, each of their foreign and international equivalents, and any environmental transfer of ownership notification or approval statute, as each has been amended and the regulations promulgated pursuant thereto.

“Environmental Liabilities” means, with respect to any Person, all liabilities, obligations, responsibilities, remedial actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants and costs of investigation and feasibility studies, cleanup costs, governmental response costs, natural resources damages, property damages, or personal injuries), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other Person or in response to any violation of Environmental Law, whether known or unknown, accrued or contingent, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, to the extent based upon, related to, or arising under or pursuant to any Environmental Law, environmental permit, order or agreement with any Governmental Authority or other Person, which relates to any environmental, health or safety condition, violation of Environmental Law or a Release or threatened Release of or exposure to Hazardous Materials.

“Equity Securities” means any (a) shares of capital stock, membership interests, equity interests or other securities of a Person, (b) securities of a Person convertible into, exchangeable or exercisable for, shares of capital stock, membership interests, equity interests or other securities, or (c) options, warrants or other rights to purchase or acquire from a Person, or obligations of a Person to issue, any equity securities referred to in clauses (a) and (b).

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

“ERISA Affiliate” means any trade or business (whether or not incorporated) that together with the Company or any of its subsidiaries is treated as a single employer under Section 414 of the Code.

“Escrow Account” means a bank account designated in writing by the Escrow Agent, into which the Escrow Amount will be deposited at the Closing.

“Escrow Agent” means JPMorgan Chase Bank, N.A., as the Escrow Agent under the Escrow Agreement.

“Escrow Agreement” means the Escrow Agreement, substantially in the form attached hereto as Exhibit F, between the Parties and Escrow Agent.

“Escrow Amount” means an amount equal to the Adjustment Escrow Amount plus the Indemnification Escrow Amount.

“Escrow Contribution Agreements” means the Escrow Contribution Agreements, substantially in the form attached hereto as Exhibit K-1 and Exhibit K-2.

“Estimated Closing Statement” has the meaning set forth in Section 2.4(a).

“Estimated Closing Cash Payment” has the meaning set forth in Section 2.4(a).

“Estimated Net Working Capital” has the meaning set forth in Section 2.4(a).

“Estimated Transaction Expenses” has the meaning set forth in Section 2.4(a).

“Excess” has the meaning set forth in Section 2.4(f).

“Exported Control Laws” has the meaning set forth in Section 3.22(b).

“FCPA” has the meaning set forth in Section 3.20(a).

“Financial Statements” means (a) the audited consolidated financial statements (balance sheet, statement of operations and statement of cash flows) of Blue Raven and its subsidiaries for the fiscal years ended December 29, 2019 and January 3, 2021, and (b) the unaudited consolidated financial statements (balance sheet, statement of operations and statement of cash flows) of Blue Raven and its subsidiaries for the period beginning January 4, 2021 and ended on the Latest Balance Sheet Date (the financial statements described in clause (b), the “Unaudited Financial Statements”).

“FLSA” means the Fair Labor Standards Act of 1938, as amended.

“Fundamental Representations” means the representations and warranties contained in Section 3.1 (Existence and Power; Limited Liability Company Records), Section 3.3 (Capitalization; Subsidiaries), Section 3.5 (Taxes), Section 3.24 (Finders’ Fees), Section 4.1 (Representations of Principal Sellers) (other than Section 4.1(b)(ii), Section 4.1(d) and Section 4.1(f)), and Section 4.2 (Representations of Chartable Seller) (other than Section 4.2(b)(ii) and Section 4.2(d)).

“Funds Flow Memorandum” has the meaning set forth in Section 2.2.

“GAAP” means generally accepted accounting principles in the United States of America, applied on a consistent basis.

“Good Reason” shall mean, in the absence of the prior written consent of Ben or Michael Rands, as applicable, (i) a material diminution in such person’s position, duties, authority, or responsibilities (other than temporarily while physically or mentally incapacitated, while being investigated by Blue Raven or SunPower, or as required by applicable law); (ii) a material reduction of base salary or bonus opportunity, excluding a reduction that is applied to substantially all of SunPower’s other similarly situated employees; provided however that for purposes of this clause (ii) whether a reduction in a bonus opportunity has occurred shall be determined without regard to any actual bonus payments made to such person; (iii) relocation of such person’s primary workplace (A) beyond a 25-mile radius from such workplace, and (B) no closer to their permanent residence immediately prior to such workplace relocation; provided however that being required to work from home or at another primary workplace due to a government mandated order shall not constitute a relocation for these purposes; or (iv) any material breach by SunPower of this Agreement or its offer letter with Ben or Michael Rands, as applicable; provided, however, that such person’s termination of employment shall not be deemed to be for Good Reason unless (A) he has notified SunPower in writing describing the occurrence of one or more Good Reason events within thirty (30) days of such occurrence, (B) SunPower fails to cure such Good Reason event within thirty (30) days after its receipt of such written notice and (C) the termination of employment occurs within twenty (20) days following the expiration of SunPower’s cure period described above. Otherwise, any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived.

“Governmental Authority” means any (a) federal, state, local, municipal, foreign, international, multinational or other government or government body (including any political and any governmental or quasi governmental authority of any nature (including any political subdivision, department, commission, board, agency, bureau, governmental agency, branch, department, official or entity, any court or other tribunal or any other regulatory, administrative or judicial authority thereof); (b) any public international organization (e.g. United Nations, World Bank or International Monetary Fund, (c) mediator, arbitrator or arbitral body; or (d) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature. For the purposes of Section 3.20, the definition of Governmental Authority includes any corporation, legal entity, or commercial enterprise owned or controlled (in whole or in part) by any Governmental Authority as defined above.

“Government Official” means: (i) any officer, director, or employee (elected, appointed, or career) of any Governmental Authority, or any person acting in an official capacity for or on behalf of any Governmental Authority, or any Close Family Member thereof; and (ii) any political party, party official, or candidate for political office, or any Close Family Member thereof. The term “Close Family Member” refers to any immediate relative (any spouse, civil union partner, parent, child, sibling, grandparent, or grandchild).

“Hazardous Materials” means any chemical, material, substance or waste that is regulated, classified, or otherwise characterized under or pursuant to any Environmental Law as “hazardous,” “toxic,” a “pollutant,” a “contaminant,” “radioactive,” “harmful” or words of similar meaning or effect, including petroleum and its by-products, asbestos or materials containing same, polychlorinated biphenyls or materials containing same, radon, mold, urea formaldehyde insulation, chlorofluorocarbons and all other ozone-depleting substances.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indebtedness” means, without duplication, the following obligations of the Company (a) the principal, accrued interest and other payment obligations (including any prepayment premiums, penalties or termination fees payable as a result of the consummation of the transactions contemplated herein) in respect of (i) indebtedness of the Company for borrowed money and (ii) any indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which the Company is responsible or liable, (b) all obligations of the Company for the reimbursement of any obligor on any letter of credit, surety bond, performance bond, banker’s acceptance or similar credit transaction that has been drawn and not paid, (c) all obligations of the Company to pay the deferred purchase price of property, assets or services, except trade accounts payable in the Ordinary Course, (d) all liabilities arising out of interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are obligated to be made by the Company, (e) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by the Company, (f) all obligations of the Company under leases which have been or should be, in accordance with GAAP, recorded as capital leases, and (g) all guarantees by the Company of any indebtedness of any other Person of the type described in the foregoing clauses (a) through (f); provided that none of the following shall be deemed to be Indebtedness: (v) the amount of any item to the extent included in Closing Net Working Capital as a current liability, (w) trade payables and accrued expenses incurred in the Ordinary Course, (x) Transaction Expenses with respect to which the Closing Cash Payment has been correspondingly reduced, and (y) the amount of any item actually paid by Sellers under ARTICLE 7 and (z) any indebtedness of the type described in the foregoing clauses (a) through (g) owed between or among Blue Raven and any of its subsidiaries.

“Indemnification Escrow Amount” means the amount set forth on Schedule 9.2(a)(v).

“Indemnified Party” means a Person seeking indemnity under ARTICLE 9.

“Indemnifying Party” means a Person against whom claims are asserted under ARTICLE 9.

“Independent Accountant” has the meaning set forth in Section 2.4(e).

“Independent Contractor” means any Person who is not an employee of the Company and who performs services for Blue Raven, including but not limited to “setter,” “closer” or related services for the Company; provided, however, Independent Contractor shall not include the Company’s accountants, lawyers, financial advisors or other similar professional service providers.

“Initial Cash Payment” means an amount equal to (a) $145,000,000, plus, (i) the amount, if any, by which the Closing Net Working Capital exceeds the NWC Target, minus (ii) the amount, if any, by which the NWC Target exceeds the Closing Net Working Capital, and (b) decreased by (i) the amount of the Deferred Service Provider Payments that are not part of the 2022 Contingent Payment, (ii) the amount of the Contingent Purchase Consideration, and (iii) the amount of the Transaction Expenses to be paid at the Closing by Purchaser pursuant to Section 2.2(c) or unpaid by the Company prior to or at the Closing.

“Initial Press Release” has the meaning set forth in Section 10.5.

“Intellectual Property” means all worldwide rights, title and interests associated with or arising out of any intellectual property, including the following: (a) all domestic and foreign issued patents and patent applications, together with all reissuances, divisionals, continuations, continuations-in-part, revisions, renewals, extensions, and reexaminations thereof, and any identified invention disclosures (collectively “Patents”); (b) all trade secret rights and corresponding rights in Confidential Information and other non-public information or proprietary information (whether or not patentable), including ideas, formulas, compositions, inventor’s notes, discoveries and improvements, know-how, manufacturing and production processes and techniques, testing information, research and development information, inventions, invention disclosures, unpatented blueprints, drawings, specifications, designs, plans, proposals and technical data, business and marketing plans, market surveys, market know-how and customer lists and information (“Trade Secrets”); (c) all copyrights, whether in published or unpublished works, copyrightable works, rights in databases, data collections, “moral” rights, mask works, copyright registrations and applications therefore and corresponding rights in works of authorship (“Copyrights”); (d) all 
trademarks, service marks, logos, trade dress, brand names, corporate names, trade styles, trade names indicating the source of goods or services, and other indicia of commercial source or origin (whether registered, common law, statutory or otherwise), all registrations and applications to register the foregoing anywhere in the world and all goodwill associated therewith (“Trademarks”); (e) all internet domain names, electronic addresses, uniform resource locators and alphanumeric designations associated therewith registered with or assigned by any domain name registrar, domain name registry or other domain name registration authority as part of an electronic address on the internet and all applications for any of the foregoing, internet blogs, social media pages and accounts and identifiers, usernames, registrations and passwords related to any of the foregoing (collectively, “Internet Resources”); (f) all other intellectual property rights arising from Software and Technology; (g) all rights of privacy and publicity; and (h) any and all similar, corresponding or equivalent intellectual or proprietary rights anywhere in the world (including but not limited to rights to limit the use or disclosure thereof by any Person and the right to bring suit, pursue past, current and future violations, infringements, or misappropriations, and collections).

“Interest Assignment” means a Membership Interest Assignment to be executed by each Seller in favor of Purchaser, substantially in the form attached hereto as Exhibit G.

“Interests” has the meaning set forth in the Recitals.

“Internet Resources” has the meaning set forth in the definition of Intellectual Property.

“IP License” means (a) any grant (or covenant not to assert) by the Company to another Person of or regarding any right relating to or under the Owned Intellectual Property, and (b) any grant (or covenant not to assert) by another Person to the Company of or regarding any right relating to or under any third Person’s Intellectual Property rights.

“IRS” means the U.S. Internal Revenue Service.

“Key Employee” means Ben, Joshua Neves, Michael Rands, Trevor Weed, Kent Shumway and Dane Nielsen.

“Latest Balance Sheet Date” means August 15, 2021.

“Law” means any federal, state, county, city, municipal, foreign or other governmental statute, law, rule, regulation, ordinance, order, code or requirement (including pursuant to any settlement agreement or consent decree) and any permit or license granted under any of the foregoing, or any requirement under the common law.

“Leased Real Property” has the meaning set forth in Section 3.12.

“Legal Proceeding” means any judicial, administrative, arbitration or other action, suit, proceeding (public, private, civil or criminal), demand, hearing, claim, charge, complaint, dispute, examination, inquiry, audit, investigation, injunction, hearing, Order, settlement, or enforcement proceeding, by or before any Governmental Authority.

“Liability” means any debt, liability, Tax or obligation of any kind whatsoever, whether known or unknown, asserted or unasserted, matured or unmatured, conditional or unconditional, patent or latent, liquidated or unliquidated, determined or determinable, absolute or contingent, accrued or unaccrued and whether due or to become due, including those arising under any Law, Contract or undertaking, whether written or oral.

“Lien” means, with respect to any property or asset, any mortgage, deed of trust, lien, pledge, hypothecation, charge, option, preemptive purchase right, easement, encumbrance, encroachment, right of way or other title defect, security interest, voting agreement or other adverse claim of any kind in respect of such property or asset.

“LLC Agreement” means (i) with respect to Blue Raven, the Fourth Amended and Restated Limited Liability Company Agreement of Blue Raven dated October 1, 2020, as amended and/or restated from time to time, and (ii) with respect to Albatross, the Amended and Restated Limited Liability Company Agreement of Albatross dated April 29, 2020, as amended and/or restated from time to time.

“Losses” means any and all out-of-pocket losses, reasonable costs, settlement payments, Liabilities, deficiencies, awards, judgments, fines, penalties, damages, reasonable expenses, deficiencies or other charges and amounts paid in settlement; provided that Losses shall not include any punitive damages, except to the extent a third party is awarded such damages (in respect of any third-party claim for which indemnification hereunder is otherwise required).

“Material Adverse Effect” means any event, change, circumstance, effect, development or state of facts (collectively, “Effects”) that has had or would reasonably be expected to have, individually or in the aggregate, (a) a material adverse effect on the financial condition or business, assets, liabilities or results of operations of the business of the Company, taken as a whole, or (b) a material adverse effect on the ability of Sellers to perform their respective obligations under the Agreement, other than such Effects reasonably attributable to (i) to the extent that such conditions or changes do not disproportionately adversely affect the business of the Company relative to other participants in the industries and geographic locations in which the Company participate: (A) economic conditions generally in the United States, conditions in the financial or securities markets in general or conditions in general in the industries or markets in which the Company operate; (B) changes in Laws of general applicability or interpretations thereof by courts or Governmental Authorities; (C) changes in GAAP; (D) changes in global or national political conditions, including the outbreak or escalation of war, acts of terrorism or natural disasters; or (E) the COVID-19 Pandemic or any Law, directive or guidance issued by a Governmental Authority or industry group related thereto or any change in such Law, directive or guidance or interpretation thereof following the date hereof or the Company’s compliance therewith; (ii) the announcement of this Agreement, or the consummation of the transactions contemplated by this Agreement, including the impact thereof on relationships, contractual or otherwise, with customers, suppliers, licensors, distributors, partners, providers or employees; (iii) any failure to meet projected financial performance for any period (provided that the underlying causes of such failure may be considered in determining whether there has been, or is reasonably likely to be, a Material Adverse Effect); or (iv) any action taken by (or at the request of) Purchaser or any of its Affiliates.

“Material Contracts” has the meaning set forth in Section 3.7(a).

“Material Permits” has the meaning set forth in Section 3.10(b).

“Material Suppliers” has the meaning set forth in Section 3.17.

“NWC Target” means negative Fifteen Million Four Hundred Forty-Four Thousand Six Hundred Eighty-Three and 77/100 Dollars (-$15,444,683.77).

“OFAC” has the meaning set forth in Section 3.22(a).

“Open Source Software” means any Software that contains, or is derived in whole or in part from, any Software that is generally available in source code form and that is distributed under a license which, by its terms, (a) does not prohibit licensees of such Software from licensing or otherwise distributing such Software in source code form, (b) does not prohibit licensees of such Software from making modifications thereto, and (c) does not require a royalty or other payment for the licensing or other distribution, or the modification, of such Software (other than a reasonable charge to compensate the provider for the cost of providing a copy thereof), including but not limited to Software distributed under such licenses as the GNU General Public License, the GNU Lesser General Public License, the BSD License, the MIT License, the Mozilla Public License, the Apache License, the Common Public License and any other licenses approved as Open Source licenses under the Open Source Definition of the Open Source Initiative (see https://opensource.org/osd and http://opensource.org/licenses/alphabetical).

“Order” means any judgment, injunction, award, order, ruling, charge, writ, settlement (including any Assurance of Voluntary Compliance), stipulation, penalty, determination, assessment or decree (including a consent decree) that is issued by or involves a Governmental Authority.

“Ordinary Course” means the ordinary course of the business of the Company, as applicable, consistent with past practices and customs, and shall be deemed to include reasonable actions (or inactions) taken by the Company in response to conditions arising from the COVID-19 Pandemic, including in response to any COVID-19 Measures.

“Organizational Documents” means the certificate of incorporation and the bylaws of a corporation, the certificate of formation and the limited liability company agreement of a limited liability company or any charter or similar organizational or formation document adopted or filed in connection with the creation, formation or organization of a Person and any amendment to any of the foregoing.

“Owned Intellectual Property” means all Intellectual Property that is owned or purported to be owned by, or exclusively licensed to, the Company.

“Party(ies)” has the meaning set forth in the Preamble.

“Patents” has the meaning set forth in the definition of Intellectual Property.

“Permit” means any permit, license, approval, order, concession, clearance, registration, certificate, franchise, qualification, consent or authorization issued by a Governmental Authority or accrediting organization.

“Permitted Liens” means (a) Liens for Taxes, assessments or other similar governmental charges that are not yet due or that are being contested in good faith by appropriate proceedings by the Company and, in each case, for which adequate reserves have been established in the Financial Statements in accordance with GAAP, consistent with past practice (b) any mechanics’, workmen’s, repairmen’s and other similar statutory Liens arising or incurred in the Ordinary Course in respect of obligations that are not overdue, (c) Liens affecting the Leased Real Property arising from easements, easement agreements, rightsof- way, restrictions, or minor title defects (whether or not recorded) that do not detract materially from the value of the property subject thereto or materially impair the use of the property subject thereto, (d) Liens, trusts or deposits under worker’s compensation, unemployment insurance and other similar statutory obligations; (e) Liens or deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the Ordinary Course, and (f) Liens set forth on Schedule 1.1.

“Person” means an individual, a corporation, a partnership, a limited liability company, an association, a trust, a joint stock company, a joint venture, an unincorporated organization, any Governmental Authority or other entity or organization.

“Personal Data” has the same meaning as the terms “personal data,” “personal information,” or the equivalent under the applicable Data Protection Requirement.

“Peterson Partners” means Peterson Partners VII, L.P., a Delaware limited partnership, and its Affiliates, employees, officers, directors, co-investors, managers, general partners, limited partners, operating partners, financing sources or lenders (each a “Peterson Representative”).
“Plans” has the meaning set forth in Section 3.14(a).

“Post-Closing Tax Period” means any Tax period (or portion thereof) that is not a Pre- Closing Tax Period or a Straddle Period.

“PPP Loan” means that certain Promissory Note, dated April 15, 2020, by and between JP Morgan Chase Bank, N.A. and Blue Raven, pursuant to which Blue Raven borrowed $3,166,330 through the U.S. Small Business Administration’s Paycheck Protection Program.

“Pre-Closing Tax Period” means any Tax period ending before the Closing Date (and the portion of any Straddle Period ending before the Closing Date).

“Principal Sellers” has the meaning set forth in the Preamble.

“Privacy Policies” means all published, posted and internal policies, procedures, agreements and notices relating to the Company’s collection, use, storage, disclosure, or cross-border transfer of Personal Data.

“Privileged Deal Communications” has the meaning set forth in Section 10.20(d).

“Purchase Price” means an amount equal to (a) the Initial Cash Payment, plus (b) the forfeited amount of the Deferred Service Provider Payments paid to Sellers pursuant to Section 2.5(a), plus (c) the Contingent Purchase Consideration, plus (d) the 2022 Contingent Payment, if any.

“Purchaser Material Adverse Effect” means any Effects that has had or would reasonably be expected to have, individually or in the aggregate, (a) a material adverse effect on the financial condition or business, assets, liabilities or results of operations of the business of Purchaser, taken as a whole, or (b) a material adverse effect on the ability of Purchaser to perform its obligations under the Agreement, other than such Effects reasonably attributable to (i) to the extent that such conditions or changes do not disproportionately adversely affect the business of Purchaser relative to other participants in the industries and geographic locations in which Purchaser participate: (A) economic conditions generally in the United States, conditions in the financial or securities markets in general or conditions in general in the industries or markets in which Purchaser operate; (B) changes in Laws of general applicability or interpretations thereof by courts or Governmental Authorities; (C) changes in GAAP; (D) changes in global or national political conditions, including the outbreak or escalation of war, acts of terrorism or natural disasters; or (E) the COVID-19 Pandemic or any Law, directive or guidance issued by a 
Governmental Authority or industry group related thereto or any change in such Law, directive or guidance or interpretation thereof following the date hereof or Purchaser’s compliance therewith; (ii) the announcement of this Agreement, or the consummation of the transactions contemplated by this Agreement, including the impact thereof on relationships, contractual or otherwise, with customers, suppliers, licensors, distributors, partners, providers or employees; (iii) any failure to meet projected financial performance for any period (provided that the underlying causes of such failure may be considered in determining whether there has been, or is reasonably likely to be, a Purchaser Material Adverse Effect); or (iv) any action taken by (or at the request of) Principal Sellers.

“Purchaser” has the meaning set forth in the Preamble.

“Purchaser Indemnified Parties” has the meaning set forth in Section 9.2(a).

“Purchaser Return” has the meaning set forth in Section 7.2(b).

“Real Property Leases” has the meaning set forth in Section 3.12.

“Reference Date” has the meaning set forth in Section 2.3.

“Registered Intellectual Property” means all of the following Intellectual Property, which is included in the Owned Intellectual Property: (a) issued Patents and pending applications for Patents, (b) domain names and social media accounts, (c) registered Trademarks and pending applications for registration of Trademarks, and material unregistered Trademarks, and (d) registered Copyrights and pending applications for registration of Copyrights.

“Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing of or migrating into or through the environment (including, without limitation, ambient air, vapor, surface water, groundwater and surface or subsurface strata) or any natural or man-made structure or into or out of any property, including the movement of Hazardous Materials through or in the air, soil, surface water, groundwater or property.

“Representative Losses” has the meaning set forth in Section 10.1(e).
“R&W Insurance Policy” means the representations and warranties insurance policy (together with all incremental layers and policies, as applicable) obtained by Purchaser in connection with the transactions contemplated hereby, substantially in the form attached hereto as Exhibit I.

“Retention Bonus Agreements” means those certain Retention Bonus Agreements provided to the Blue Raven employees and service providers listed on Exhibit D providing for payments in the amounts set forth next to such individuals’ names on Exhibit D.

“Returns” means any report, return, document, declaration or other information or filing, including any amendments thereto, supplied or required to be supplied to any Taxing Authority with respect to Taxes, including information returns, claims for refund and any documents with respect to or accompanying payments of estimated Taxes, or with respect to or accompanying requests for the extension of time in which to file any such report, return, document, declaration or other information.

“Revenue Statement” has the meaning set forth in Section 2.5(b).

“Review Period” has the meaning set forth in Section 2.4(c).

“Sanctioned Country” has the meaning set forth in Section 3.22(a).

“Sanctioned Persons” has the meaning set forth in Section 3.22(a).

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom, or (c) any successor Governmental Authority to the Governmental Authorities described in clauses (a) and (b) of this definition or any other relevant sanctions authority.

“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended.

“Scheduled Intellectual Property” has the meaning set forth in Section 3.13(a).

“Securities Act” means the Securities Act of 1933, as amended.

“Seller Indemnified Parties” has the meaning set forth in Section 9.3.

“Seller Representative” has the meaning set forth in the Preamble.

“Seller Representative Expense Fund” has the meaning set forth in Section 10.1(d).

“Seller Representative Expense Fund Amount” means an amount in cash equal to $250,000.

“Seller Tax Obligations” means (a) the Taxes of Sellers and (b) the Taxes of Blue Raven and its subsidiaries for any Pre-Closing Tax Period, including any Taxes of Blue Raven and its subsidiaries as a result of the transactions contemplated by this Agreement (other than Taxes described in Section 7.7(a)); provided that Seller Tax Obligations shall not include any such Taxes that were taken into account in the final determination of the Closing Net Working Capital.

“Sellers” has the meaning set forth in the Preamble.

“Shortfall” has the meaning set forth in Section 2.4(f).

“Software” means any and all (a) computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source or object code; (b) databases and compilations in any form, including any and all data and collections of data, whether machine readable or otherwise; (c) descriptions, flow-charts and other work product used to design, plan, organize and develop any of the foregoing, including Internet web sites, web content and links, source code, object code, operating systems and specifications, data, databases, database management code, utilities, graphical user interfaces, menus, images, icons, forms, methods of processing, software engines, platforms, development tools, library functions, compilers, and data formats, all versions, updates, corrections, enhancements and modifications thereof, and (d) all related documentation, user manuals, training materials, developer notes, comments and annotations related to any of the foregoing.

“Straddle Period” means any taxable year or period beginning before the Closing Date and ending on or after the Closing Date.

“SunPower” has the meaning set forth in the Preamble.

“SunPower Board” means the Board of Directors of SunPower.

“Tax” means (a) any and all federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Section 59A of the Code), customs duties, tariffs, capital, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, gross margins, personal property, payment in lieu of or other tax of any kind whatsoever (including any fee or penalty for the failure to file or timely file any Return), and sales, use, transfer, ad valorem, registration, value added, alternative or add-on minimum, goods and services, municipal, estimated, or other tax, import duty, fee, levy or other assessment of any kind whatsoever imposed by any Governmental Authority, including any interest, penalty, or addition thereto, (b) liability for the payment of any amounts of the type described in clause (a) of this sentence as a result of being a member of an affiliated, consolidated, combined, unitary or aggregate group for any taxable period, (c) Liability under any state abandonment or unclaimed property, escheat or similar Law, and (d) Liability for the payment of any amounts of the type described in clause (a), (b) or (c) of this sentence as a result of being a transferee of or successor to any person, as a result of any express or implied obligation to indemnify any other person, as a result of the operation of applicable Law or otherwise.

“Tax Statement” has the meaning set forth in Section 7.2(b).

“Taxing Authority” means any Governmental Authority responsible for the imposition of any Tax.

“Technology” means, collectively, all Software, information, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development, technical data, programs, subroutines, tools, materials, specifications, processes, inventions (whether patentable or unpatentable and whether or not reduced to practice), apparatus, 
creations, improvements, works of authorship and other similar materials, and all recordings, graphs, drawings, reports, analyses, and other writings, and other tangible embodiments of the foregoing, in any form whether or not specifically listed herein, and all related technology, that are used in, incorporated in, embodied in, displayed by or relate to, or are used in connection with the foregoing.

“Third Party Claims” has the meaning set forth in Section 9.5(a).

“Trademarks” has the meaning set forth in the definition of Intellectual Property.

“Transaction Expenses” means any and all (whether or not disclosed) of the following: (a) unpaid costs, fees, charges and expenses incurred by the Company in connection with or related to the authorization, preparation, negotiation, execution, consummation and performance of this Agreement and the transactions contemplated hereby or the auction or similar process that resulted in or preceded the execution and delivery of this Agreement, including all legal fees, accounting, management, professional or other similar fees and investment banking fees and expenses, (b) sale, transaction, retention, change in control or similar bonuses, severance payments and other employee-related change in control payments payable by the Company as of or after the Closing Date (including the employer portion of any withholding, payroll, employment or similar Taxes associated therewith) as a result of, or in connection with, the consummation of the transactions contemplated by this Agreement, other than the Deferred Service Provider Payments, (c) one half of any fee of the Escrow Agent, (d) the Transaction Insurance Premiums and (e) the Seller Representative Expense Fund Amount.

“Transaction Insurance Premiums” means $534,005.00.

“Treasury Regulations” means the Treasury Regulations promulgated under the Code, as such regulations may be amended from time to time.

“WARN” has the meaning set forth in Section 3.15(a).

Section 1.2    Certain Interpretive Matters.

(a)    Unless the context requires otherwise, (i) all references to Sections, Articles, Exhibits, or Schedules are to the Sections, Articles, Exhibits, or Schedules of or to this Agreement, (ii) each accounting term not otherwise defined in this Agreement has the meaning commonly applied to it in accordance with GAAP, (iii) words in the singular include the plural and vice versa, (iv) all references to $ or dollar amounts will be to lawful currency of the United States, (v) to the extent the term “day” or “days” is used, it will mean calendar days unless Business Days are specified, (vi) the pronoun “his” refers to the masculine, feminine and neuter (and vice versa), the words “herein,” “hereby,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section, Article, or other subdivision, (vii) the term “including” means “including without limitation,” and (viii) any reference to any Law is a reference to it as amended, modified and supplemented from time to time and to (A) any successor provision and (B) the rules and regulations promulgated thereunder).

(b) All references to the “Knowledge of Sellers” or to words of similar import will be deemed to mean the actual knowledge of the Persons listed on Schedule 1.2(b), and the knowledge such Person would reasonably be expected to have had after reasonable investigation.

(c) All references to the “Knowledge of Purchaser” or to words of similar import will be deemed to mean the actual knowledge of the Persons listed on Schedule 1.2(c), and the knowledge such Person would reasonably be expected to have had after reasonable investigation.

ARTICLE 2
SALE AND PURCHASE; CLOSING

Section 2.1    Purchase and Sale of Interests. In reliance upon the representations and warranties contained herein, and subject to the terms and conditions hereof, at the Closing each Seller shall sell, assign, transfer, convey and deliver to AcquisitionCo the Interests owned by such Seller, and Purchaser shall purchase from each Seller the Interests owned by such Seller.

Section 2.2    Purchase Price; Closing Payments. In consideration of the sale of the Interests to Purchaser, on the Closing Date, Purchaser shall pay the following:

(a)    pay or deliver (or cause to be paid or delivered) to Sellers the Estimated Closing Cash Payment (as defined below) less the Adjusted Closing Escrow Amount (the “Closing Cash Payment”), by wire transfer of immediately available funds in accordance with the wiring instructions provided by Sellers at least one (1) Business Day prior to the Closing Date. The Closing Cash Payment shall be allocated among Sellers and Transaction Expenses shall be paid as set forth in the Funds Flow Memorandum attached hereto as Exhibit H (the “Funds Flow Memorandum”);

(b)    deposit (or cause to be deposited) the Adjusted Closing Escrow Amount with the Escrow Agent to be held in escrow in accordance with the terms of the Escrow Agreement; and

(c)    pay or deliver (or cause to be paid or delivered) all Transaction Expenses, to be paid by Purchaser as specified in the Estimated Closing Statement.

Section 2.3    Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) will take place at the offices of Bennett Tueller Johnson & Deere in Salt Lake City, Utah or at such other location (or virtually through electronic transfer) as the parties hereto may agree on the date of this Agreement (the “Closing Date”) simultaneously with the execution of this Agreement. The Closing shall be deemed to have occurred at 12:01 a.m. Mountain Time on the Closing Date (the “Reference Time”).

Section 2.4    Initial Cash Payment Adjustment.

(a)    Seller Representative shall prepare and deliver to Purchaser an estimated closing statement of the Company as of the Closing Date (the “Estimated Closing Statement”), which Estimated Closing Statement sets forth Principal Sellers’ good faith calculation, together with all schedules and data as may be appropriate to support such calculation of its good faith estimate of: (i) the Closing Net Working Capital (the “Estimated Net Working Capital”), prepared in accordance with the Accounting Principles and in the same manner as was used to prepare the illustrative calculation set forth thereon, and (ii) the Transaction Expenses to be paid by Purchaser pursuant to Section 2.2(c) or unpaid by the Company prior to or at the Closing (the “Estimated Transaction Expenses”); and, based on such estimates, a calculation of the Initial Cash Payment (the “Estimated Closing Cash Payment”).

(b)    No later than sixty (60) days following the Closing Date, Purchaser will prepare and deliver, or cause to be prepared and delivered, to Seller Representative a statement (the “Closing Statement”) showing, in reasonable detail, its good faith calculation of: (i) the actual Closing Net Working Capital, prepared in accordance with the Accounting Principles, and (ii) actual Transaction Expenses.

(c)    Following receipt of the Closing Statement, Seller Representative and his accountants will be afforded a period of thirty (30) days to review the Closing Statement and related calculations of the items set forth therein (the “Review Period”). Purchaser will provide Seller Representative and his accountants reasonable access, at reasonable times during normal business hours and following reasonable notice to Purchaser, to all books, records, work papers, written procedures and applicable personnel used to prepare the Closing Statement to the extent reasonably necessary to enable Seller Representative to conduct a sufficient review of the Closing Statement and verify Purchaser’s calculations of the items set forth on the Closing Statement.

(d)    If Seller Representative disagrees with Purchaser’s calculation of any items set forth in the Closing Statement, Seller Representative may, within the Review Period, deliver a written notice (the “Dispute Notice”) to Purchaser providing reasonable detail of the reason for any disagreement, and setting forth Seller Representative’s calculation of such amount. If no Dispute Notice is received by Purchaser on or prior to the expiration of the Review Period, then the Closing Statement (and the items set forth therein) as originally delivered by Purchaser will be deemed to have been accepted by Seller Representative and will become final and binding upon the Parties.

(e)    If a Dispute Notice has been properly and timely delivered pursuant to Section 2.4(d), Seller Representative and Purchaser will, during the thirty (30) calendar days following such delivery, use their commercially reasonable efforts to reach an agreement on the disputed items or amounts in order to resolve any disputed items in the Dispute Notice. If during such period, Seller Representative and Purchaser are unable to reach such an agreement, they will promptly thereafter cause a nationally recognized, mutually acceptable third-party accounting firm (the “Independent Accountant”) to review the relevant portions of this Agreement and the disputed items or amounts set forth in the Dispute Notice. Such calculation will be made by the Independent Accountant in accordance with this Agreement. The Independent Accountant will deliver to Seller Representative and Purchaser, as promptly as practicable (and Seller Representative and Purchaser will use their respective reasonable efforts to cause the Independent Accountant to deliver such report no later than thirty (30) calendar days from the date of engagement of the Independent Accountant), a report setting forth its calculation of the items in dispute; 
provided that the Independent Accountant may not assign a value to any item greater than the greatest value for such item claimed by either Party or less than the smallest value for such item claimed by either Party. Such report will be final and binding upon the Parties, absent manifest error. The cost of any such review and report by the Independent Accountant will be paid on a proportionate basis by Seller Representative, on the one hand, and Purchaser on the other hand, based on the percentage which the portion of the contested amount not awarded to such Party bears to the amount contested by such Party, as finally determined by the Independent Accountant.

(f)    If, after the final determination of all of the items set forth in the Closing Statement pursuant to the terms of this Section 2.4, the actual Closing Cash Payment calculated using the actual Closing Net Working Capital and the actual Transaction Expenses as so finally determined is less than the Estimated Closing Cash Payment (the amount equal to such difference, the “Shortfall”), Purchaser shall be entitled to a payment from the Escrow Account in an amount equal to the Shortfall. Purchaser and Seller Representative shall promptly execute joint written instructions to the Escrow Agent instructing the Escrow Agent to pay such amount to Purchaser out of the Escrow Account and to release the remainder of the funds held in the Escrow Account, if any, to Sellers in accordance with their respective pro rata share as set forth in the Funds Flow Memorandum pursuant to the joint written instructions. To the extent the Shortfall is in excess of the funds held in the Escrow Account, Principal Sellers, in accordance with their respective pro rata shares as set forth in the Funds Flow Memorandum, shall promptly pay the difference to Purchaser in immediately available funds to an account designated by Purchaser at such time. If, after the final determination pursuant to the foregoing, the actual Closing Cash Payment calculated using the actual Closing Net Working Capital and actual Transaction Expenses as so finally determined is greater than or equal to the Estimated Closing Cash Payment (the amount equal to such difference, the “Excess”), (i) Purchaser and Seller Representative shall promptly execute joint written instructions to the Escrow Agent instructing the Escrow Agent to release the entire Adjustment Escrow Amount to Sellers in accordance with their respective pro rata shares as set forth in the Funds Flow Memorandum and (ii) Purchaser shall promptly pay the Excess to Sellers in immediately available funds in accordance with their respective pro rata shares as set forth in the Funds Flow Memorandum. Any amounts paid to any Party pursuant to this Section 2.4(f) will be deemed adjustments to the Purchase Price.

(g)    Any payment pursuant to this Section 2.4 will be made as soon as practicable, but in no event more than five (5) Business Days after the amounts in respect of such payments have been finally determined.

Section 2.5    Deferred Service Provider Payments; Contingent Purchase Consideration; 2022 Contingent Payment. In addition to the Closing Cash Payment, Purchaser agrees to pay the Deferred Service Provider Payments, the Contingent Purchase Consideration, and the 2022 Contingent Payment in accordance with this Section 2.5, as follows:

(a)    Deferred Service Provider Payments. Purchaser shall pay to Blue Raven and Blue Raven shall pay or cause to be paid the Deferred Service Provider Payments to each individual entitled to payment thereof in the amounts, on the dates and subject to the terms set forth in the respective Retention Bonus Agreements. In the event that any such individual is no longer providing services to Blue Raven such individual shall forfeit the right to receive any payments that otherwise would have been made subsequent to the date such individual ceased being employed by Blue Raven. All such forfeited amounts shall be owed to Sellers (and treated as part of the Purchase Price) and paid by Blue Raven on behalf of Purchaser (with funds provided by Purchaser) to Sellers Representative (for distribution to Sellers in their respective pro rata shares as set forth in the Funds Flow Memorandum) within five (5) days after the date such amounts would have otherwise been payable to such individuals, if any. Notwithstanding the foregoing, Purchaser agrees that Blue Raven may accelerate payment of the Deferred Service Provider Payments to one or more individuals upon the prior written approval of Purchaser.

(b)    Contingent Purchase Consideration. Purchaser shall pay to The Skein Trust, The Gosling Trust, and Michael Rands, respectively, the Contingent Purchase Consideration subject to the terms set forth on Exhibit E. Interest shall accrue at a rate of eight and one-half percent (8.5%) per annum on the unpaid amount of the Contingent Purchase Consideration until the full amount of the Contingent Purchase Consideration has been paid to The Skein Trust, The Gosling Trust, and Michael Rands, respectively. Interest shall begin to accrue on the Closing Date, subject to the last sentence of this Section 2.5(b). If the full amount of the Contingent Purchase Consideration is not paid on or before the eighteen (18) month anniversary of the Closing Date, default interest shall accrue on the unpaid amount of the Contingent Purchase Consideration at a rate of eighteen percent (18%) per annum and shall compound on the first day of each month beginning immediately after the eighteen (18) month anniversary of the Closing Date until the full amount of the Contingent Purchase Consideration has been paid in full in accordance herewith. Payments of the Contingent Purchase Consideration will be applied first to accrued and unpaid interest and second to the amount of the unpaid Contingent Purchase Consideration. Subject to Section 2.5(d), in the event that the employment of any such executive by Blue Raven ends on or prior to the eighteen (18) month anniversary of the Closing Date, such executive shall forfeit any payments (including any accrued, but unpaid interest) that otherwise would be made on or subsequent to the date such executive ceased being employed by Blue Raven and such payment shall be retained by Purchaser.

(c)    2022 Contingent Payment.

(i)    Purchaser shall pay, and Sellers shall be entitled to receive, an additional cash payment of up to $20,000,000 (the “2022 Contingent Payment”) based on Blue Raven’s revenue for the period beginning on September 13, 2021 and ending June 19, 2022 (the “Contingent Payment Period”). The 2022 Contingent Payment will increase linearly from $0 up to a maximum of $20,000,000 upon Blue Raven’s achievement of a minimum of 75% of the aggregate revenue amount set forth on Schedule 2.5(c) for the Contingent Payment Period in the same manner as the illustrative calculation set forth on Schedule 2.5(c). Not later than July 31, 2022, Purchaser will deliver a report (the “Revenue Statement”) to the Seller Representative of the revenue of Blue Raven during the Contingent Payment Period, including a calculation of the 2022 Contingent Payment (or a calculation that the 2022 Contingent Payment is not due) prepared in accordance with Blue Raven’s historical accounting policies and practices as described in the Accounting Principles. The Parties shall use the same procedures set forth in Section 2.4(c) through (g) to review and finalize the calculations set forth in the Revenue Statement. Purchaser shall pay to the Sellers Representative (for distribution to Sellers in their respective pro rata shares as set forth in the Funds Flow Memorandum) an amount equal to the difference of (i) the 2022 Contingent Payment minus (ii) the amount of the 2022 Contingent Payment allocated to employees and service providers pursuant to the Retention Bonus Agreements (the “Sellers 2022 Contingent Payment Amount”) within two (2) Business Days following the final determination of the amount of the 2022 Contingent Payment in accordance with this Section 2.5.

(ii)    It is expressly acknowledged and understood by the Parties that the inclusion of the 2022 Contingent Payment as part of this Agreement is a principal term hereof and the opportunity to achieve the same constitutes substantial consideration for Sellers’ willingness to execute this Agreement and consummate the transactions contemplated herein. In light of the foregoing, during the Contingent Payment Period, Purchaser shall use commercially reasonable efforts to operate Blue Raven in good faith and in the Ordinary Course, in compliance with applicable laws and in accordance with Purchaser’s reasonable business judgment; provided, that during the Contingent Payment Period, so long as he remains employed by Blue Raven or SunPower or any of their Affiliates, Ben shall operate the Company’s business in the Ordinary Course and in accordance with applicable Law. Sellers acknowledge and agree that after the Closing, Purchaser shall have discretion with regard to matters relating to the operation of Blue Raven and its business, including, but not limited to, the changes set forth on Schedule 2.5(c)(ii); provided, that Purchaser shall not act in an arbitrary or commercially unreasonable manner with respect to Blue Raven’s business if any such action would be reasonably likely to materially and adversely interfere with the achievement of the full amount of the 2022 Contingent Payment. For purposes of calculating the 2022 Contingent Payment, Purchaser shall maintain separate books and records and have a separate statement of revenue for Blue Raven. Notwithstanding the foregoing, if as a direct result of actions outside the ordinary course of business taken by Purchaser the 2022 Contingent Payment is reduced or avoided, the Purchaser and Sellers agree to negotiate in good faith potential adjustments to the calculation of the 2022 Contingent Payment.

(d)    Acceleration.

(i)    Without limiting the foregoing in this Section 2.5 and notwithstanding anything to the contrary herein, the maximum 2022 Contingent Payment of $20,000,000 shall be accelerated upon any of the following events: (A) the consummation of a Change in Control of SunPower or Blue Raven (or the subsidiary or division of SunPower that operates Blue Raven’s business following the Closing) during the Contingent Payment Period (other than the Change in Control of Blue Raven pursuant to this Agreement); or (B) the termination by SunPower or Blue Raven of Ben’s employment with SunPower or Blue Raven without Cause or by Ben for Good Reason. Within five (5) Business Days following the effectiveness of either of such events, (1) SunPower shall pay Sellers’ 2022 Contingent Payment Amount to Sellers Representative (for distribution to Sellers in their respective pro rata shares as set forth in the Funds Flow Memorandum) by wire transfer of immediately available funds to the account designated by Sellers Representative, and (2) Purchaser shall cause Blue Raven to deliver the amount of the Deferred Service Provider Payments that are part of the 2022 Contingent Payment to each individual entitled to payment thereof and, with respect to any forfeited amounts, to Sellers Representative (for distribution to Sellers in their respective pro rata shares as set forth in the Funds Flow Memorandum).

(ii)    Without limiting the foregoing in this Section 2.5 and notwithstanding anything to the contrary herein, all of the Deferred Service Provider Payments shall be accelerated upon the consummation of a Change in Control of SunPower or Blue Raven (or the subsidiary or division of SunPower that operates Blue Raven’s business following the Closing) during the period beginning on the Closing and ending on the date on which the Deferred Service Provider Payments would be otherwise due and payable (other than the Change in Control of Blue Raven pursuant to this Agreement). Within five (5) Business Day following the effectiveness of such event, SunPower shall cause Blue Raven to deliver the Deferred Service Provider Payments to each individual entitled to payment thereof and, with respect to any forfeited amounts, 
to Sellers Representative (for distribution to Sellers in their respective pro rata shares as set forth in the Funds Flow Memorandum).

(iii)    Without limiting the foregoing in this Section 2.5 and notwithstanding anything to the contrary herein, all of the Contingent Purchase Consideration shall be accelerated upon the consummation of a Change in Control of SunPower or Blue Raven (or the division of Purchaser that operates Blue Raven’s business following the Closing) during the period beginning on the Closing and ending on the date on which the Contingent Purchase Consideration is paid or forfeited pursuant to Section 2.5(b) (other than the Change in Control of Blue Raven pursuant to this Agreement). Within five (5) Business Days following the effectiveness of such event, Purchaser shall deliver the Contingent Purchase Consideration to each of The Skein Trust, The Gosling Trust, and Michael Rands by wire transfer of immediately available funds to the accounts designated in writing by The Skein Trust, The Gosling Trust, and Michael Rands, respectively.

(iv)    Without limiting the foregoing in this Section 2.5 and notwithstanding anything to the contrary herein, the Contingent Purchase Consideration owed to The Skein Trust and The Gosling Trust shall be accelerated upon the termination by the board of directors (or similar governing body) of Purchaser or Blue Raven of Ben’s employment with Purchaser or Blue Raven without Cause or by Ben for Good Reason. Within five (5) Business Days following the effectiveness of such event, Purchaser shall deliver the applicable Contingent Purchase Consideration to each of The Skein Trust and The Gosling Trust by wire transfer of immediately available funds to the account designated in writing by The Skein Trust and The Gosling Trust, respectively.

(v)    Without limiting the foregoing in this Section 2.5 and notwithstanding anything to the contrary herein, the Contingent Purchase Consideration owed to Michael Rands shall be accelerated upon the termination by the board of directors (or similar governing body) of Purchaser or Blue Raven of Michael Rands’ employment with Purchaser or Blue Raven without Cause or by Michael Rands for Good Reason. Within five (5) Business Days following the effectiveness of such event, Purchaser shall deliver the applicable Contingent Purchase Consideration to Michael Rands by wire transfer of immediately available funds to the account designated in writing by Michael Rands.

(vi)    Without limiting the foregoing in this Section 2.5(d), Sellers expressly confirm and agree that nothing herein shall give Sellers any rights to prevent a Change in Control of Purchaser, any Affiliate of Purchaser (including Blue Raven) or any third Person.

Section 2.6    Withholding. As between Purchaser and Sellers, Purchaser agrees to pay the employer portion of payroll taxes associated with the Deferred Service Provider Payments made to individuals (that are not Sellers) pursuant to Retention Bonus Agreements. Purchaser acknowledges that it does not intend, based on applicable legal requirements as of the date of this Agreement, to withhold any amounts required to be deducted and withheld under the Code, or any provision of any U.S. federal, state, local or foreign Tax Law, from any consideration payable pursuant to this Agreement other than the Deferred Service Provider Payments made to individuals (that are not Sellers) pursuant to Retention Bonus Agreements. Notwithstanding the foregoing, Purchaser shall be entitled to deduct and withhold from the Purchase Price payable hereunder, or other payment otherwise payable pursuant to this Agreement, the amounts required to be deducted and withheld under the Code, or any provision of any U.S. federal, state, local or foreign Tax Law. Any amounts so withheld shall be paid over to the appropriate Taxing Authority. To the extent that amounts are so deducted and withheld, such deducted and withheld amounts shall be treated for all purposes of this Agreement as having been paid to Sellers, employees and/or executives, as applicable. Except as described above with respect to the Deferred Service Provider Payments, if Purchaser becomes aware of any withholding requirement which shall become applicable to any payment of consideration hereunder, it shall promptly give notice of the same to Seller Representative.

ARTICLE 3
REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY

Except as set forth in the Disclosure Schedules, Principal Sellers, severally and not jointly, hereby represent and warrant to Purchaser as follows as of the Closing Date (except for representations and warranties made as of a specific date, which shall be made as of such date only):

Section 3.1    Existence and Power; Limited Liability Company Records. The Company is an entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and has all requisite power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted. The Company is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is necessary, except where the failure to be so qualified has not had, and would not reasonably be expected to have, a Material Adverse Effect. Principal Sellers have made available to Purchaser true, correct and complete copies of the Company’s Organizational 
Documents. As of the Closing Date, all such Organizational Documents will be in full force and effect, and each Company will not be in violation of any material provisions therein.

Section 3.2    No Conflicts; Consents. The execution, delivery and performance of this Agreement by Sellers does not, and the execution, delivery and performance by Sellers of each Ancillary Agreement and the Charitable Transfer Agreements, will not: (a) contravene, conflict with or result in a violation of or default (with or without notice or lapse of time, or both) under any provision of: (i) the Organizational Documents of the Company; (ii) any material provision of applicable Law or any Order to which the Company or any of the properties or assets owned or used by the Company may be subject; (iii) the material terms or requirements of any Permit that is held by the Company; or (iv) any Material Contract; or (b) result in the imposition or creation of any Lien upon or with respect to any of the assets owned or used by the Company, except in the case of clauses (a)(ii) through (a)(iv) above where such contraventions, conflicts, violations or defaults would not reasonably be expected to affect the ability of the Sellers or the Company to consummate the transactions contemplated by this Agreement in any material way. Except with respect to filings that may be required under the HSR Act or as set forth in Schedule 3.2, the Company is not and will not be required to obtain any Consent from any Person (other than Sellers and the Company) in connection with (a) the execution, delivery and performance of this Agreement or any Ancillary Agreement by Sellers or the consummation of the transactions contemplated hereby or thereby, or (b) the continuing validity and effectiveness immediately following the Closing of any Material Contract or Material Permit (as defined below).

Section 3.3    Capitalization; Subsidiaries. All of the issued and outstanding Equity Securities of Blue Raven and Albatross are held of record by Sellers, free and clear of all Liens other than transfer restrictions imposed by securities Laws or set forth in the Organizational Documents of Blue Raven or Albatross, as applicable, with the number of Equity Securities held by each Seller set forth across from such Seller’s name on Exhibit A, and upon the consummation of the transactions contemplated hereby, such Equity Securities (or portion thereof with respect to the Albatross Interests) will be transferred to Purchaser as set forth on Exhibit A, free and clear of all Liens other than transfer restrictions imposed by securities Laws. All of the issued and outstanding Equity Securities of Blue Raven and Albatross are duly authorized, validly issued, fully paid and non-assessable, and such Equity Securities have not been issued in violation of any preemptive rights or similar rights. Except as set forth in the Organization Documents of Blue Raven or Albatross or on Schedule 3.3, there are no voting trust agreements or other Contracts, options, equity appreciation, incentive equity awards, phantom equity rights, equity equivalents, profit participation rights, proxies, pledges, rights of first refusal, or understandings, including any Contracts restricting or otherwise relating to the ownership, voting rights, distribution rights or disposition of the Equity Securities of Blue Raven or Albatross. There are no subscription rights, conversion rights, exchange rights or other Contracts or commitments that could require Blue Raven or Albatross to issue, sell or otherwise cause to become outstanding any Equity Security except as set forth herein. Except as set forth on Schedule 3.3, Blue Raven and Albatross do not have any subsidiaries or, directly or indirectly, own or hold any equity or other interest or right to any Equity Securities in any other Person.

Section 3.4    Financial Statements; Liabilities; Indebtedness.

(a)    True, correct and complete copies of the Financial Statements have been made available to Purchaser, which Financial Statements have been prepared from, and are in accordance with, the books and records of Blue Raven and its subsidiaries, and each balance sheet included in the Financial Statements fairly presents, in all material respects, the financial position of Blue Raven and its subsidiaries as of the respective dates thereof, and the statements of operations and statements of cash flows included in the Financial Statements fairly present, in all material respects, the results of operations and cash flows of Blue Raven and its subsidiaries for the respective periods indicated therein. The Financial Statements were prepared in accordance with GAAP applied on a consistent basis throughout the period involved, except (i) as may be disclosed therein, or (ii) with respect to the Unaudited Financial Statements, (A) for normal year-end adjustments (none of which will be (1), individually or in the aggregate, material to Blue Raven or its subsidiaries or (2) outside the Ordinary Course), and (B) for the omission of notes and schedules permitted by GAAP. Blue Raven maintains a system of internal accounting controls sufficient to (i) comply with all material legal and accounting requirements applicable to Blue Raven and (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in conformity with the Blue Raven’s historical practices and to maintain asset accountability. Albatross does not maintain books and records or prepare financial statements and has not assets other than the Software.

(b) Blue Raven has not identified or become aware of (i) any significant deficiency or material weakness in the internal accounting controls utilized by Blue Raven or its subsidiaries, or (ii) any fraud or material theft or misuse of corporate assets that involves the management of Blue Raven or its subsidiaries or any other current or former employee, consultant, contractor or manager of Blue Raven or its subsidiaries.

(c) Schedule 3.4(c) sets forth a correct and complete list of all outstanding Indebtedness of Blue Raven and its subsidiaries in an amount over $50,000, individually, as of the Closing Date.

(d) Blue Raven and its subsidiaries have no Liabilities other than Liabilities (i) set forth in the Financial Statements, (ii) incurred in the Ordinary Course subsequent to the Latest Balance Sheet Date; or (iii) of a type or nature not required under GAAP to be reflected in the Financial Statements. Neither Blue Raven nor any of its subsidiaries is a guarantor of or otherwise liable for any Liability of any other Person.

(e) Albatross has no Liabilities and is not a guarantor of or otherwise liable for any Liability of any other Person.

Section 3.5    Taxes. Except as disclosed on Schedule 3.5:

(a)    all Returns filed or required to be filed with any Taxing Authority by or on behalf of the Company prior to the Closing Date have been filed when due (taking into account all applicable extensions) in accordance with all applicable Laws and all such Returns are true, complete, and correct in all material respects;

(b)    all Taxes due and payable by or on behalf of the Company as of the Closing (whether or not shown as due and payable on the Returns that have been filed) have been timely paid in accordance with applicable Law;

(c)    all required estimated Tax payments sufficient to avoid any underpayment penalties have been made by or on behalf the Company and the Company has made full and adequate provision in its books and records and Financial Statements for all Taxes related to Pre-Closing Tax Periods which are not yet due and payable;

(d)    there are no Tax audits or Tax examinations by any Taxing Authority in connection with assessing additional Taxes against or in respect of the Company for any past period, nor has the Company received any notice from any Governmental Authority that it intends to conduct any such audit or examination with respect to Taxes;

(e)    all deficiencies asserted or assessments for Taxes made as a result of any audits or examinations by any Taxing Authority with respect to the Company have been fully paid or settled;

(f)    the Company (i) is not currently the beneficiary of any extension of time within which to file any Return and (ii) has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency;

(g)    there are no Liens, other than Permitted Liens, for Taxes upon the assets of the Company;

(h)    to the Knowledge of Sellers, no written claim has ever been made by a Governmental Authority in a jurisdiction where the Company does not file Returns that the Company is or may be subject to taxation by, or required to file any Return in, that jurisdiction;

(i)    the Company (i) is not subject to any private letter ruling of the IRS or comparable rulings of any other Taxing Authority, (ii) does not have and has never had a permanent establishment in any country other than the country of its organization, nor is it or has it ever been subject to Tax in a foreign jurisdiction outside the country of its organization, (iii) has not granted to any Person any power of attorney that is currently in force with respect to any Tax matter, (iv) has never been a member of an affiliated, consolidated, combined, unitary or similar Tax group, (v) has no Liability for any unpaid Taxes of any other Person pursuant to Treasury Regulations Section 1.1502-6 (or any similar provision of Law), as a transferee or successor, by assumption, by Contract, by operation of Law or otherwise, (vi) is not and has not been a party to or a promoter of a “reportable transaction” within the meaning of Section 6707A(c)(1) of the Code and Treasury Regulations Section 1.6011-4(b), or (vii) has not constituted either a “distributing corporation” or a “controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution of stock intended to qualify for tax-free treatment under Section 355 or Section 361 of the Code;

(j)    the Company has not entered into any agreement or arrangement with any Taxing Authority that requires it to take any action or to refrain from taking any action, and the Company is not a party to any agreement with any Taxing Authority that would be terminated or adversely affected as a result of the transactions contemplated by this Agreement;

(k)    the Company is not a party to or bound by any Tax-indemnity, Tax sharing, or Tax-allocation agreement other than customary commercial Contracts not primarily related to Taxes;

(l)    the Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any Post-Closing Tax Period which taxable income was realized (and reflects economic income arising) prior to the Closing Date as a result of any: (i) change in method of accounting for a Pre-Closing Tax Period, including by reason of the application of Section 481 of the Code (or any analogous provision of state, local or foreign Law), (ii) “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign Law) executed prior to the Closing Date, (iii) installment sale or open transaction disposition made prior to the Closing Date, (iv) prepaid amount received, or deferred revenue realized, prior to the Closing Date, or (v) election under Section 108(i) of the Code;

(m)    Effective on the date of its formation, the Company was treated as a partnership for U.S. federal income tax purposes and has been so treated in all Tax years since the date of formation. The Company has never made an election to be treated as a corporation for U.S. federal, state, local or foreign tax purposes;

(n)    Principal Sellers have made available to Purchaser copies of all federal, state, local, and foreign income, franchise and similar Tax Returns, information returns, examination reports, and statements of deficiencies assessed against, or agreed to by, the Company for all Tax periods ending after December 31, 2017; and

(o)    The Company has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, customer, member or other party, and complied with all information reporting and backup withholding provisions of applicable Law.

Section 3.6    Absence of Certain Changes.

(a)    Subject to Section 3.6(b), since January 3, 2021, the business of the Company has been conducted in the Ordinary Course and there has not been any event, occurrence, development, circumstance, or state of facts that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

(b)    Without limiting the generality of Section 3.6(a), and except as set forth on Schedule 3.6, since the January 3, 2021, the Company has not:

(i)    made any change in financial or Tax accounting methods or practices, except as required by a concurrent change in applicable Law or GAAP;

(ii)    issued, sold or redeemed any Equity Securities, bonds or debt securities of the Company or made any other changes in the capital structure of the Company;

(iii)    acquired (by merger, consolidation, or acquisition of stock or assets) any business, corporation, partnership or other business organization or division thereof;

(iv)    made any capital expenditures or capital commitments in excess of $50,000 individually, other than in the Ordinary Course;

(v)    issued, incurred, assumed or guaranteed any Indebtedness in excess of $50,000 individually;

(vi)    sold, assigned, transferred, conveyed, covenanted not to assert, abandoned, allowed to lapse, leased or otherwise disposed of any Company Intellectual Property, other than in the Ordinary Course;

(vii)    adopted, amended or terminated any Plan, or made any material change to the benefits of any managers, officers or employees pursuant to any Plan;

(viii)    entered into any Collective Bargaining Agreement (as defined below), except as required by applicable Law or Order;

(ix)    amended, modified, or waived any provision of its Organizational Documents;

(x)    mortgaged, pledged or subjected any material portion of its assets or any material asset to any Lien, except Permitted Liens;

(xi)    sold, assigned or transferred any material portion of any of its assets and has maintained the assets of the Company in good repair, order and condition, except in the Ordinary Course;

(xii)    authorized, declared, set aside or paid any dividend on, or made any other distributions with respect to, the Company’s Equity Securities;

(xiii)    abandoned, modified, waived, terminated, failed to renew, let lapse or otherwise changed any Material Permit;

(xiv)    failed to maintain its insurance policies, and in the event of casualty, loss or damages to any material assets of the Company, failed to have repaired or replaced such assets with assets of comparable quality, as the case may be;

(xv)    adopted any plan of complete or partial liquidation or dissolution or otherwise failed to maintain its existence;

(xvi)    waived any material claim or right of payment, discharge, compromise or satisfaction of any material liabilities, other than the payment, discharge, compromise or satisfaction of liabilities in the Ordinary Course;

(xvii)    entered into or amended any employment, severance, bonus, retirement, loan, or other Contract with any manager, officer or employee of the Company other than in the Ordinary Course;

(xviii)    other than as required under applicable Law, adopted, amended, increased or decreased the payments to or benefits provided under, any Plans;

(xix)    increased any compensation, benefits or fringe benefits payable or to become payable to any current or former employee, officer, or manager;

(xx)    entered into or amended any Material Contracts; or

(xxi)    committed to do any of the actions set forth in this Section 3.6(b) above.

Section 3.7    Contracts.

(a)    Except for this Agreement, the Ancillary Agreements, or as disclosed on Schedule 3.7, each Company is neither a party to nor has its material assets or properties bound by any of the following Contracts (the “Material Contracts”):

(i)    other than as set forth in Schedule 3.7(a)(i), any employment or consulting Contract (other than those terminable by the applicable Company upon no more than thirty (30) days’ prior notice without liability to the Company) with any employee, Independent Contractor or consultant;

(ii)    (A) loan or credit agreements, indentures, notes or other Contracts or instruments evidencing Indebtedness by the Company, (B) any mortgages, pledges, security agreements, deeds of trust or other Contracts imposing a Lien on the Company’s assets, (C) any guaranties by the Company of the performance or payment obligation of any third party, or (D) any Contracts under which the Company has made advances or loans to any other Person (other than advances of reasonable business expenses up to $15,000 per Person at any given time);

(iii)    any Contract pursuant to which a Company has agreed to provide indemnification to any third party or to any officers or managers;

(iv)    any Real Property Lease (as defined below);

(v)    any lease, license or use agreement for tangible personal property under which the aggregate payments thereunder during the twelve (12) month period ended on the Latest Balance Sheet Date are in excess of $250,000;

(vi)    any IP License, excluding licenses to off-the-shelf Software commercially  available on standard, non-discriminatory terms;

(vii)    any Contract or series of related Contracts with a vendor or supplier for the purchase of products or services by a Company under which the aggregate payments thereunder during the twelve (12) month period ended on the Latest Balance Sheet Date are in excess of $1,000,000;

(viii)    any Contract with any customer, dealer, sales representative or distributor for the sale, distribution, marketing or advertising of the Company’s products and services under which the aggregate payments thereunder during the twelve (12) month period ended on the Latest Balance Sheet Date are in excess of $250,000;

(ix)    any Contract under which the aggregate payments by or to the Company during the twelve (12) month period ended on the Latest Balance Sheet Date are in excess of $250,000 and that is not terminable by the Company on notice of sixty (60) days or less without penalty;

(x)    any Contract relating to capital expenditures by the Company pursuant to which the Company has in excess of $250,000 in financial obligations following the Closing;

(xi)    any Contract relating to the (A) disposition of any material portion of the properties or assets of the Company or (B) acquisition by the Company of any operating business, properties or assets, whether by merger, purchase or sale of stock or assets or otherwise (other than Contracts for the purchase of inventory or supplies entered into in the Ordinary Course);

(xii)    any Contract that (A) restricts the ability of the Company to freely engage in  the Business anywhere in the world or (B) grants to any Person other than the Company any (1) “most favored nation” rights, (2) rights of first refusal or similar rights or (3) exclusive rights to purchase or supply the Company’s products or services;

(xiii)    Contracts for joint ventures, strategic alliances, partnerships or similar arrangements;

(xiv)    any settlement agreement regarding any Legal Proceeding, whether filed or 
threatened (other than a separation and release agreement entered into with a departing employee or consultant) which contains any ongoing obligations of the Company;

(xv)    any Contract with any Governmental Authority;

(xvi)    any Contract under which the Company has made advances or loans to any other Person;

(xvii)    any Contract with an Affiliate (other than another Company), shareholder, member, manager, employee, officer or director of the Company or any Seller other than Contracts governing an employee’s services to the Company and employee benefits; and

(xviii)    any Collective Bargaining Agreement.

(b)    Each Material Contract to which the Company is a party or is bound or to which any of its 
assets or properties is subject is a legal, valid and binding Contract of the Company and is in full force and effect, and neither of the Company nor, to the Knowledge of Sellers, any other party thereto, is in default or breach in any material respect under the terms of any such Material Contract. To the Knowledge of Sellers, there is no event, occurrence, condition, or act (including the consummation of the transactions contemplated hereby) that, with the giving of notice or the passage of time (or both), could reasonably be expected to become a material default or breach under any Material Contract. Principal Sellers have made available to Purchaser true, correct and complete copies of each Material Contract. Neither the Company nor any Principal Seller has received any written notice of termination or cancellation under any Material Contract, received any written notice alleging any breach or default in any material respect of any Material Contract, or granted to any third party any rights, adverse or otherwise, that would constitute a breach of any Material Contract.

Section 3.8    Insurance Coverage. Principal Sellers have made available to Purchaser true, correct and complete copies of all insurance policies covering the assets, operations, employees, officers and managers, as applicable, of the Company, a list of which is set forth on Schedule 3.8. There is no material claim by the Company pending under any such 
policies as to which coverage has been questioned, denied, or disputed by the issuers or underwriters of such policies. Such policies of insurance are in full force and effect. Such policies of insurance are of a scope and coverage consistent with customary practice in the Business in which the Company operate. No written notice of cancellation, termination or non-renewal has been received by the Company with respect to any of such insurance policies.

Section 3.9    Litigation. Except as set forth on Schedule 3.9, (a) there are no pending or, to the Knowledge of Sellers, threatened Legal Proceedings against the Company or any of its properties or assets, or managers, officers or employees of the Company arising from or relating to (i) their actions, (ii) or the actions of those acting or purporting to act on their behalf or with their authority, (iii) or the Company’s obligations, or liabilities as such, and, to the Knowledge of Sellers, no facts exist that would reasonably be expected to form the basis for any such Legal Proceeding, (b) there are no pending or, to the Knowledge of Sellers, threatened Legal Proceedings by any Governmental Authority against the Company or any of its properties or assets, or any of the managers or officers of the Company with regard to their actions, or the actions of those acting or purporting to act on their behalf or with their authority, or the Company’s obligations, or liabilities, as such, and, to the Knowledge of Sellers, no facts exist that would reasonably be expected to form the basis for any such Legal Proceeding, (c) there is no Order imposed or, to the Knowledge of Sellers, threatened to be imposed upon the Company or any of its properties or assets, or any of the managers or officers of the Company with regard to their actions, obligations, or liabilities, as such, and (d) Company has in all respects complied with all settlement agreements and Assurances of Voluntary Compliance entered into by the Company as a means of resolving any previously filed or threatened litigations or governmental actions such that an actual or alleged breach of such agreements cannot, to the Knowledge of the Sellers, reasonably be expected to form the basis for any future Legal Proceeding.

Section 3.10    Compliance with Laws; Permits.

(a)    The Company is in compliance in all material respects with all Laws and Orders applicable to the Company, its operations, or its properties or assets. The Company has not received any written notice to the effect that a Governmental Authority claimed or alleged that the Company was not in compliance in all material respects with all Laws or Orders applicable to the Company and any of its properties or assets. In the last twenty-four months, the Company has not commissioned, nor has it conducted, or is it in the process of conducting, and is not aware of, any assessments, whether conducted internally or by a third party, finding any material non-compliance by the Company with any Laws or Orders applicable to the Company, its operations, or its properties or assets.

(b)    The Company has been granted and has maintained in effect all Permits necessary for the conduct of the business of the Company, except for such Permits as to which the failure to so own, hold or possess would not, individually or in the aggregate, be material to the Company (collectively, the “Material Permits”). Each Material Permit is valid and in full force and effect, and the Company is not in breach of or default under any material requirement of any such applicable Material Permit. To the extent required by applicable Laws, applications for renewal of the Material Permits have been timely submitted. Schedule 3.10 sets forth a true, complete and accurate list of the Material Permits.

Section 3.11    Tangible Personal Property. The Company has good and marketable title to, or, in the case of leased properties and assets, valid leasehold interests in, all of the material items of tangible personal property used or held for use in the business of the Company, free and clear of any and all Liens, other than the Permitted Liens and such imperfections of title, if any, that do not materially interfere with the present value of such property (and, with respect to leases and licenses, the right of the other parties specified therein). All such items of tangible personal property that are necessary for or used in the operation of the business of the Company are in good condition and in a state of good maintenance and repair (ordinary wear and tear excepted) and are suitable for the purposes used and to be used following the consummation of the transactions contemplated herein. The tangible assets owned or leased by the Company constitute all of the tangible assets necessary for or used by the Company to carry on its business in the Ordinary Course.

Section 3.12    Real Property. The Company does not own any real property nor has the Company ever owned any real property, and the Company is not a party to any Contract to purchase any real property or any interest therein. The real property demised by the leases, subleases, licenses, occupancy agreements, or other agreements (including all modifications, amendments, supplements, waivers, side letters, and guaranties thereto, collectively, the “Real Property Leases”) described on Schedule 3.12 (the “Leased Real Property”) (which Schedule 3.12 also sets forth the street address of each Leased Real Property) constitutes all of the real property leased, licensed, occupied, used or held for use by the Company in the operation of its business (in each case whether as landlord, tenant, sublandlord, subtenant, or by other occupancy arrangement). Each Real Property Lease conveys a valid and enforceable leasehold interest in the respective Leased Real Property, free and clear of all Liens, except Permitted Liens. With respect to each Real Property Lease: (i) such Real Property Lease is valid, binding, enforceable and in full force and effect; (ii) the Company is not in material breach or default under such Real Property Lease 
and the Company has paid all rent and other amounts due and payable under such Real Property Lease; and (iii) the Company has not received nor given any notice of any default under such Real Property Lease.

Section 3.13    Intellectual Property.

(a)    Schedule 3.13(a) sets forth a true, complete and accurate list of all Registered Intellectual Property of the Company, including, as applicable, the application number, application date, registration/issue number, registration/issue date, title or mark, country or other jurisdiction and record owner(s) thereof if other than the Company (the “Scheduled Intellectual Property”). All Scheduled Intellectual Property is valid, subsisting and enforceable, and all necessary documents and certificates in connection therewith have been timely filed with the relevant Patent, Trademark, Copyright, domain name, or other authorities in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining the Scheduled Intellectual Property in full force and effect.

(b)    To the Knowledge of Sellers (without having conducted any special investigation or patent search), the Company is the sole and exclusive owner of the Owned Intellectual Property, free and clear of all Liens other than Permitted Liens, and the Company has valid and continuing rights pursuant to a valid written IP License to use, sell, and license (as the case may be) all other Intellectual Property used in or necessary for the conduct of its business. The Owned Intellectual Property, along with the Company Licensed IP (when used within the scope of the applicable IP License), constitutes all of the Intellectual Property necessary and sufficient for the conduct and operation of the business of the Company, and the transactions contemplated by this Agreement will not have an adverse effect on the Company’s right, title or interest in and to the Owned Intellectual Property (other than to transfer it to Purchaser) or the Company’s valid and continuing rights pursuant to a valid written IP License to use, sell, and license (as the case may be) all other Intellectual Property used in or necessary for the conduct of its business (other than to transfer such rights to Purchaser), and all such Owned Intellectual Property shall continue to be owned by the Company immediately following the Closing. To the Knowledge of Sellers, neither the use, possession, nor practice of the Owned Intellectual Property nor the business and operations of the Company infringe upon, misappropriate, or otherwise violate any Intellectual Property rights of any Person. Notwithstanding anything herein to the contrary, this Section 3.13(b) contains the only representations or warranties made by Principal Sellers with respect to infringement, misappropriation or other violation by the Company of the Intellectual Property of any third Person.

(c)    To the Knowledge of Sellers, no Person is currently infringing upon, misappropriating or otherwise violating any Owned Intellectual Property. The Company has not made any such claims or allegations against any Person alleging any of the foregoing, and no such claims or Legal Proceedings are pending against a third Person. The Company has not received notice of, and to the Knowledge of Sellers, there are not, any facts or circumstances that would constitute grounds for any such claims or allegations.

(d)    Blue Raven or its applicable subsidiary has executed valid and enforceable written agreements with each Key Employee pursuant to which each such Person has agreed to (i) hold all confidential and proprietary information and/or Trade Secrets of Blue Raven or its applicable subsidiary in confidence both during and after such Person’s employment, (ii) assign all intellectual property created during the scope of their employment to Blue Raven or its applicable subsidiary. Principal Sellers have made available to Purchaser true and complete copies of all such agreements (or all standard Blue Raven forms thereof), and to the Knowledge of Sellers, no party thereto is in default, violation, or breach of any such agreements. To the Knowledge of Sellers, no Key Employee has claimed in writing to have an ownership interest in any Owned Intellectual Property.

(e)    The Company has taken commercially reasonable measures to protect the confidentiality of all material trade secrets owned by the Company which are primarily used in or held for use in the conduct of its business. The Company maintains administrative, technical, and physical safeguards to protect the privacy and security of personally identifiable information and the conduct of its business as currently conducted complies in all material respects with applicable Laws pertaining to privacy and security of personally identifiable information.

(f)    All Software and any Technology owned or purported to be owned by the Company was created solely by employees of the Company within the scope of their employment, or consultants or other third Persons under valid written agreements assigning all ownership right in and to such Software and Technology to the applicable Company.

(g)    The Company has not incorporated any Open Source Software in, or used any Open Source Software in connection with, any Software developed, licensed, distributed, used or otherwise exploited by the Company in a manner that requires the contribution, licensing, attribution or disclosure to any third Person of any portion of the source code of any Software developed, licensed, distributed, used or otherwise exploited by or for the Company or that would otherwise diminish or transfer the rights of ownership in any Intellectual Property rights or Software of the Company to any third Person. 
The Company is in compliance in all material respects with the terms and conditions of all relevant licenses for Open Source Software used in the business of the Company.

Section 3.14    Employee Benefit Plans.

(a)    Schedule 3.14(a) sets forth a correct and complete list of all of the Company’s “employee benefit plans” (as defined in Section 3(3) of ERISA), and any other retirement, supplemental retirement, deferred compensation, executive compensation, employment, consulting, bonus, incentive compensation, stock purchase, employee stock ownership, equity or equity-based, severance, retention, salary continuation, vacation or sick pay policy, termination, change in control, employee loan, medical, welfare, retiree medical or life insurance, disability, death benefit, group insurance, hospitalization, Code Section 125 “cafeteria” or “flexible” benefit, educational, employee assistance, fringe benefit or other employee benefit plan, policy, agreement, program or arrangement, whether or not subject to ERISA, that the Company sponsors, maintains, contributes to or is required to contribute to, or in which the Company has any current, contingent or potential Liability (collectively, the “Plans”).

(b)    With respect to each Plan, Principal Sellers have made available to Purchaser a true, correct and complete copy of the following documents, to the extent applicable: (i) all Plans and all sub-plans and trust documents, insurance contracts or other funding arrangements, and all amendments thereto, (ii) for the three most recent plan years, (A) the IRS Form 5500 and all schedules thereto, (B) actuarial or other valuation reports, and (C) material communications with any Governmental Authority (other than routine communications), (iii) the most recent IRS determination letters or opinion letters, as applicable, and (iv) the most recent summary plan descriptions and other material
communications to employees regarding the Plans.

(c)    The Plans have been established and administered, funded and maintained, in all material respects, in accordance with their terms and with all applicable provisions of ERISA, the Code and other applicable Laws. Neither the Company nor any of its ERISA Affiliates has at any time maintained, sponsored, contributed to or had an obligation to contribute to, or had any Liability in respect of, a (i) “defined benefit plan” as defined in Section 3(35) of ERISA, (ii) a pension plan subject to the funding standards of Section 302 of ERISA or Section 412 of the Code, (iii) a “multiemployer plan” as defined in Section 3(37) of ERISA or Section 414(f) of the Code, (iv) a “multiple employer plan” within the meaning of Section 210(a) of ERISA or Section 413(c) of the Code, or (v) a “multiple employer welfare
arrangement” within the meaning of Section 3(40) of ERISA. There are no pending or, to the Knowledge of Sellers, threatened actions, claims or lawsuits against or relating to the Plans, the assets of any of the trusts under such plans or the plan sponsor or the plan administrator, or against any fiduciary of the Plans with respect to the operation of such plans (other than routine benefits claims). No Plan is presently under audit or examination (nor has written notice been received of a potential audit or examination) by any Governmental Authority.

(d)    All contributions required to be made to any Plan by applicable Law, any plan document or other contractual undertaking, and all premiums due or payable with respect to insurance policies funding any Plan as of the Business Day prior to the Closing Date have been timely made or paid in full or, to the extent not required to be made or paid on or before the Business Day prior to the Closing Date, have been fully reflected on the Financial Statements.

(e)    Neither the Company, any Plan, nor, to the Knowledge of Sellers, any trustee, administrator or other fiduciary and/or party-in-interest thereof has engaged in any material breach of fiduciary responsibility or any “prohibited transaction” (as such term is defined in Section 406 of ERISA or Section 4975 of the Code) to which Section 406 of ERISA or Section 4975 of the Code applies and which would reasonably be expected to subject the Company, any ERISA Affiliate or any Plan to any Tax or penalty on prohibited transactions imposed by Section 4975 of the Code (or any corresponding provisions of Law).

(f)    None of the Plans provide for post-employment health, welfare or life insurance benefits or coverage for any participant or any beneficiary of a participant, except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or similar state Law and at the sole expense of such participant or the participant’s beneficiary.

(g)    With respect to each Plan that is intended to qualify under Section 401(a) of the Code, such plan, and its related trust, has received a determination letter (or opinion letters in the case of any prototype plans) from the IRS that it is so qualified and that its trust is exempt from tax under Section 501(a) of the Code, and, nothing has occurred with respect to the operation of any such plan which could cause the loss of such qualification or exemption or the imposition of any material penalty, Tax, or other Liability under ERISA or the Code. No stock or other security issued by the Company forms or has formed any part of the assets of any Plan that is intended to qualify under Section 401(a) of the Code.

(h)    Except as set forth on Schedule 3.14(h), neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby shall (i) result in any payment or benefit becoming due to any current or former employee, officer, manager or independent contractor of the Company under any Plan, (ii) result in the acceleration of the time of payment, funding or vesting of any benefits to any current or former employee, officer, manager or independent contractor of the Company under any Plan, or (iii) create any limitation or restriction on the right of the Company to merge, amend or terminate any Plan (except any limitations imposed by applicable Law, if any).

(i)    Each Plan that is a “nonqualified deferred compensation plan” (as defined in Section 409A(d)(1) of the Code) that is subject to Section 409A of the Code is in compliance in all material respects with Section 409A of the Code.

(j)    Each Plan that is a “group health plan” for purposes of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act, as amended (the “Affordable Care Act”), has been maintained and administered in compliance, in all material respects, with the Affordable Care Act.

(k)    (i) Each Plan and its related trust, insurance contract or other funding vehicle has been established, registered, amended, funded, invested, maintained and administered in accordance with its terms and is, in all material respects, in compliance with ERISA (if applicable), the Code and all other Laws applicable to such Plan; and (ii) the Company is, in all material respects, in compliance in all material respects with ERISA, the Code and all other Laws applicable to the Plans.

Section 3.15    Employee Matters.

(a)    The Company is in compliance, in all material respects, with all applicable Laws with respect to employment and employment practices in the jurisdictions within which the Company operate, as applicable, including, without limitation, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, ERISA, state fair employment practices laws, with respect to applicable Laws regarding wage and hour requirements, immigration status, civil rights, discrimination in employment, employee health and safety, collective bargaining, workers’ compensation and the collection and payment of withholding and/or social security taxes. There are no complaints, charges or claims against the Company pending or, to the Knowledge of Sellers, threatened by any Governmental Authority based on, arising out of, in connection with or otherwise relating to the employment or termination of employment or failure to employ by the Company, of any individual. The Company has complied with the Worker Adjustment and Retraining Notification Act (“WARN”) and any similar state or local “mass layoff” or “plant closing,” and there has been no “mass layoff” or “plant closing” (as defined by WARN) with respect to the Company within the six (6) months prior to the Closing Date. The Company has withheld all amounts required by applicable Law to be withheld from the wages, salaries and other payments to employees, and are not, to the Knowledge of Sellers, liable for any arrears of wages or any taxes or penalty for failure to comply with any of the foregoing. The Company is not liable for any outstanding payment to any trust or other fund or to any Governmental Authority, with respect to unemployment compensation benefits, social security or other benefits for employees (other than routine payments to be made in the Ordinary Course).

(b)    All individuals in the United States who perform or have performed services for the Company has been properly classified under applicable Law as (i) employees or independent contractors and (ii) for employees, as an “exempt” employee or a “non-exempt” employee (within the meaning of the FLSA and state Law), and no such individual has been improperly included or excluded from any Plan, except for non-compliance or exclusions which would not reasonably be expected to result in material liability to the Company, and the Company is not in notice of any pending or, to the Knowledge of Sellers, threatened inquiry or audit from any Governmental Authority concerning any such classifications.

(c)    Except as set forth in Schedule 3.7(a)(xviii), the Company is not party to any collective bargaining agreement, labor union contract, or trade union (each a “Collective Bargaining Agreement”) which pertains to employees of the Company, and there are no (i) labor strikes, disputes, arbitrations, grievances, slowdowns, stoppages, lockouts, picketing organizational efforts, or unfair labor practice charges or proceedings by or with any employee or former employee of the Company or any labor union pending or, to the Knowledge of Sellers, threatened against the Company, or (ii) Collective Bargaining Agreements being negotiated by the Company.

(d)    Schedule 3.15 sets forth a true, correct and complete list of all employees and sales representatives of Blue Raven and its subsidiaries as of a recent date (as identified on such schedule) showing date of hire, hourly rate or salary or other basis of compensation, full-time or part-time status, exempt or non-exempt status, paid-time-off accrued as of a recent date and job function. To the Knowledge of Sellers, no manager, officer, or Key Employee of Blue Raven 
or any of its subsidiaries presently intends to terminate his or her employment relationship with Blue Raven or its subsidiaries. Schedule 3.15 sets forth a true, correct and complete list of all employees who were terminated in the six month period preceding a recent date (as identified on such schedule). Albatross does not have and has never had any employees, sales representatives or independent contractors.

(e)    The Company is not delinquent in payment to any of its current or former managers, officers, employees, consultants or other service providers for any wages, fees, salaries, commissions, bonuses, or other direct compensation for service performed by them or amounts required to be reimbursed to such managers, officers, employees, consultants and other service providers or in payments owed upon any termination of such person’s employment or service. 

(f)    Since January 1, 2019, no allegations of sexual harassment have been made to the Company against any Key Employee or manager of the Company.

(g)    No Key Employee is bound by any Contract or subject to any judgment, decree or order of any Governmental Authority that would materially interfere with the use of such Key Employee’s best efforts to promote the interest of the Company or that would materially conflict with the Company’s business as currently conducted.

(h)    Notwithstanding anything to the contrary herein, the representations and warranties set forth in this Section 3.15 are the sole and exclusive representations in this Agreement regarding matters relating to employee matters.

Section 3.16    Environmental Matters. The Company is, and since January 1, 2017, has been, in compliance in all material respects with all applicable Environmental Laws. There is no Environmental Claim pending or, to the Knowledge of Sellers, threatened against, affecting or relating to the Company or, to the Knowledge of Sellers, any real property formerly leased or operated by the Company, and all past Environmental Claims have been finally and fully resolved. The Company has not received any notice of or entered into or assumed by Contract or operation of Law or otherwise, any obligation, Liability, order, settlement, judgment, injunction or decree relating to or arising under Environmental Laws, and no facts, circumstances or conditions exist with respect to the Company or any property currently (or, to the Knowledge of Sellers, formerly) leased by the Company that would reasonably be expected to result in the Company incurring Environmental Liabilities. There (a) has been no Release at the Leased Real Property and (b) was no Release at any real property formerly leased or operated by the Company during the time that the Company leased or operated such real property. There are no underground storage tanks located at any of the Leased Real Property. Principal Sellers have made available to Purchaser complete and correct copies of all existing environmental reports, reviews, assessments, surveys, claims and audits and all written information in its possession or control pertaining to (i) environmental conditions of the real properties and operations of the Company, and (ii) actual or potential Environmental Liabilities asserted against the Company. Notwithstanding anything to the contrary herein, the representations and warranties set forth in this Section 3.16 and in Section 3.10(b) are the sole and exclusive representations in this Agreement regarding matters relating to environmental matters.

Section 3.17    Material Suppliers. Schedule 3.17 lists the names of the five largest suppliers (by dollar volume) of the Company (the “Material Suppliers”) during the twelve months ended on the Latest Balance Sheet Date. Since the Latest Balance Sheet Date, (a) no Material Supplier has notified the Company, in writing, of the cancellation, termination or material modification of its business relationship with the Company or materially modified the commercial terms of its relationship with the Company and (b) to the Knowledge of Sellers, no Material Supplier has threatened, in writing, to cancel, terminate, not renew, materially modify or otherwise reduce the volume of business that it is presently conducting with the Company or the commercial terms of its relationship with the Company. There is no material dispute between the Company and any Material Supplier. Since the Latest Balance Sheet Date, to the Knowledge of Sellers, no Material Supplier has provided written notice of such Material Supplier’s intent to increase the price charged to the Company for goods or services.

Section 3.18    Interests in Counterparties and Others.

(a)    Except as set forth on Schedule 3.18, other than investments constituting less than one (1%) percent of the outstanding voting stock of a publicly traded company, no Principal Seller nor any officer or manager of the Company or any of their respective Affiliates (i) possesses, directly or indirectly, any ownership interest in any Person that is a seller to, or customer, supplier, lessor, lessee, licensor, distributor, landlord, tenant, creditor, debtor or direct competitor of the Company, including any counterparty to any Material Contract, or (ii) is party to any Material Contract.

(b)    There are no loans, advances or Indebtedness incurred by the Company from any Affiliate (other than another Company), shareholder, member, manager, employee, officer or director of the Company or any Principal Seller. None of Principal Sellers or any Affiliate, shareholder, member, manager, employee, officer or director of the Company 
or Principal Sellers (i) owns any material asset, property or right, tangible or intangible, which is used or held for use by the Company in connection with the business of the Company or (ii) provides, or has provided, within the last 12 months, material services to the Company, other than in the capacity of a manager, officer or employee of the Company.

Section 3.19    Bank Accounts. Set forth in Schedule 3.19 is a true, correct and complete list of each bank account or safe deposit box of the Company and the names and locations of all banks in which the Company has accounts or safe deposit boxes.

Section 3.20    Anti-Corruption Compliance.

(a)    The Company, and all of its managers, officers, employees, and agents, and, to the Knowledge of Sellers, all other Persons acting on behalf of the Company, are and have been in compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), any other applicable U.S., including state and local, or non-U.S. anti-corruption or anti-bribery laws, and all rules and regulations promulgated thereunder (the “Anti-Corruption Laws”).

(b)    The Company has in place a system of policies, procedures, and internal controls, including trainings and financial controls, designed to prevent and detect fraud and corruption. 

(c)    Neither the Company, nor any of its managers, officers, employees, or agents, nor, to the Knowledge of Sellers, any other Person acting on behalf of the Company, has: (i) been charged with or convicted of violating any Anti-Corruption Laws; (ii) received any notice, request, or citation, or been made aware of any allegation, investigation (formal or informal), inquiry, action, charge, or proceeding with regard to a potential violation of any Anti-Corruption Law; (iii) established or maintained any unrecorded or improperly recorded fund of corporate monies or other properties or assets or made any false entries on any books of account or other record for any purpose; (iv) directly or indirectly, offered, paid, promised, authorized, or given a financial or other advantage to any Person (A) while intending the advantage to induce a Person to perform improperly a relevant function or activity, or to reward a Person for the improper performance of such a function or activity, or (B) while knowing or believing that the acceptance of the advantage would itself constitute the improper performance of a relevant function or activity; or (v) directly or indirectly, offered, paid, promised, or authorized, or caused to be offered, paid, promised, or authorized, any money, offer, gift, or other thing of value, regardless of form, to any Government Official, or to any Person while knowing or having reason to know that such Person has or will offer, pay, promise, or authorize, or cause to be offered, paid, promised, or authorized, any money, offer, gift, or other thing of value to any Government Official, in furtherance of, or with the intent or purpose of, (A) corruptly influencing any act or decision of such Government Official in his or her official capacity, (B) inducing such Government Official to do or omit to do any act in violation of a lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official to use his or her influence with a Governmental Authority, or instrumentality thereof, to affect or influence any act or decision of such Governmental Authority or instrumentality thereof.
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Section 3.21    Company Products; Warranties.

(a)    Each Company Product sold, licensed, distributed or installed by the Company has been in conformity in all material respects with all applicable standards for quality, product safety and workmanship prescribed by Law and Contracts. The Company has not provided any guaranty, warranty or other indemnity with respect to a Company Product beyond the applicable standard terms and conditions of sale in any material respect. Copies of the Company’s standard terms and conditions for each such Company Product (containing applicable guaranty, warranty, return policy and indemnity provisions) have been made available to Purchaser. All Company Product held by the Company as inventory (whether or not reflected on the consolidated balance sheet of Blue Raven and irrespective of its geographic location) (i) consists of a quality and quantity usable and salable in the Ordinary Course (including with respect to any requirements of Law (including product safety) in any jurisdiction in which the Company sells, licenses, distributes or delivers Company Product), and (ii) is in good and merchantable condition, except for slow moving, obsolete, damaged or defective items for which adequate reserves have been established in the Financial Statements. All inventory is owned by the Company free and clear of all Liens other than Permitted Liens and has not been pledged as collateral. Schedule 3.21(a) sets forth a list of all inventory held on a consignment basis by a third party for the benefit of the Company (including the identity of such third party, the location where such inventory is held and the nature of such inventory) as of the Latest Balance Sheet Date.

(b)    Since January 1, 2020, there has been no material Liability of the Company, or incident that could reasonably lead to a material Liability of the Company, for bodily injury to any person, death, property damages as a result of the ownership, possession or use of any Company Product.

(c)    No Governmental Authority has alleged to the Company in writing or, to the Knowledge of the Sellers, otherwise, that any Company Product designed, manufactured, held in inventory, marketed, distributed, or delivered by the Company is defective or unsafe or fails to meet any product warranty or any standards promulgated by any such Governmental Authority. None of the Company’s Company Products is, or has been since January 1, 2020, subject to any product recall, withdrawal, seizure, sequestration or quarantine, whether voluntarily or at the discretion or order of any Governmental Authority or otherwise (and to the Knowledge of Sellers, there is no reasonable basis for any recall, withdrawal, seizure, sequestration or quarantine).

Section 3.22    Export Controls.

(a)    Neither the Company, nor to the Knowledge of Sellers, any representative of the Company, is (i) a Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), the U.S. Department of State, the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom, (ii) a Person operating, organized or resident in a country or region which is itself the subject of any Sanctions (“Sanctioned Country”) (including Cuba, Iran, North Korea, Syria and the Crimea region of Ukraine), or (iii) any Person owned or controlled by any Person or Persons specified in (i) or (ii) above ((i) – (iii) together “Sanctioned Persons”). The Company, and to the Knowledge of Sellers, any representative of the Company when acting on behalf of the Company, are in compliance with applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in the Company or any representative of the Company being designated as a Sanctioned Person. Neither the Company, nor any representative of the Company when acting on behalf of the Company, are, or have since January 1, 2019, engaged directly in any business or transactions with any Sanctioned Person or in any Sanctioned Country, or knowingly engaged in any indirect business or transactions with any Sanctioned Person or in any Sanctioned Country in any manner that would result in the violation of Sanctions by the Company. There are no pending or, to the Knowledge of Sellers, threatened claims against the Company with respect to Sanctions.

(b)    The Company and representatives of the Company are, and have been since January 1, 2019, in compliance in all material respects with applicable export and reexport control laws, regulations, permits, licenses, agreements, and orders, including the Export Administration Act of 1979; the Arms Export Control Act; the Export Administration Regulations maintained by the U.S. Department of Commerce; the International Traffic in Arms Regulations maintained by the U.S. Department of State; regulations, orders and restrictions administered by OFAC (collectively “Export Control Laws”); and any other Export Control Laws administered by a U.S. Governmental Authority, or by any foreign Governmental Authority to the extent applicable and to the extent compliance with such laws is not prohibited or penalized by applicable U.S. Laws. To the Knowledge of Sellers, there are no inquiries or investigations pending or threatened against the Company or its representatives by any Governmental Authority with respect to Export Control Laws. To the Knowledge of Sellers, the Company and their representatives have not been subject to any such inquiries or investigations since January 1, 2019 and since then have not made and do not intend to make any disclosure (voluntary or otherwise) to any Governmental Authority with respect to any violation, potential violation, or Liability arising under or relating to any Export Control Laws.

Section 3.23    Privacy and Data Security.

(a)    The Company is in compliance in all material respects with all Data Protection Requirements, including any regulatory and consumer reporting or notification obligations. The Company has not received any subpoenas, demands, or other written notices from any person or Governmental Authority investigating, inquiring into, or otherwise relating to any actual or potential violation of any Data Protection Law and, to the Knowledge of Sellers, the Company is not under investigation by any Governmental Authority for any actual or potential violation of any Data Protection Requirements. No written notice, complaint, claim, enforcement action, or litigation of any kind has been served on, or initiated against, the Company under any Data Protection Requirement. There are no past, pending or, to the Knowledge of Sellers, threatened, complaints, actions, fines, or other penalties facing the Company in connection with any Data Protection Requirements.

(b)    The Company has taken commercially reasonable steps, compliant with applicable Data Protection Requirements, to (i) develop, implement, and maintain a comprehensive, written information security program that includes administrative, technical, and physical safeguards to protect the operation, confidentiality, integrity, and security of Personal Data and other sensitive data held by the Company, the Company’s Software, systems, applications, code, including any applications it develops or has developed on its behalf, and websites that are involved in the collection and/or processing of Personal Data, sufficient to insure the security and confidentiality of Personal Data, protected against any anticipated threats or hazards to the security or integrity of such information, and protect against unauthorized access to or use of such information 
that could result in substantial harm or inconvenience to any customer, consumer or employee; and (ii) protect Personal Data in the Company’ possession and/or control from unauthorized use, access, disclosure, and modification.

(c)    The Company has taken commercially reasonable steps to ensure that third parties from which it receives Personal Data comply with applicable Data Protection Requirements, including any Laws around notice and consent before sharing or selling Personal Data to the Company. The Company has taken commercially reasonable steps to ensure that third parties to which it discloses the Personal Data of consumers, customers or employees comply with applicable Data Protection Requirements, including having in place contracts with adequate data protection undertakings to ensure that such third parties have in place adequate or appropriate administrative, technical and physical safeguards to protect the confidentiality, integrity and security of Personal Data disclosed by the Company.

(d)    The Company has not experienced any failures, crashes, security breaches, unauthorized access, use, or disclosure, or other adverse events or incidents related to Personal Data maintained by or on behalf of the Company, including any that would require notification of individuals, law enforcement, or any Governmental Authority, any remedial action under any applicable Data Protection Requirement, or that have caused any substantial disruption of or interruption in the use of the Company’s Software, equipment or systems. There are no past, pending or, to the Knowledge of Sellers, threatened, complaints, actions, government investigations, fines, or other penalties facing the Company in connection with any such failures, crashes, security breaches, unauthorized access, use, or disclosure, or other adverse events or incidents. The Company has not experienced any material financial losses associated with a data security attack, incident or breach, e.g., ransomware, phishing, whaling, spear phishing, false president schemes, false payment instruction schemes.

Section 3.24    Finders’ Fees. Except as set forth on Schedule 3.24, there is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of any Seller, the Company, or any of their respective Affiliates, who would be entitled to any fee or commission in connection with the transactions contemplated by this Agreement or any of the Ancillary Agreements.

Section 3.25    PPP Loan. Blue Raven was eligible to participate in the PPP loan program, the certifications made by Blue Raven in applying for the PPP Loan were true and correct and made in good faith, and Blue Raven is in compliance with all conditions and other applicable requirements under the terms of the CARES Act and related guidance, including, but not limited to, the use of the PPP Loan proceeds. Blue Raven has applied for and has been granted forgiveness of the PPP Loan. Such application for forgiveness was true and correct and made in good faith, and Blue Raven is in compliance with all conditions and other applicable requirements under the terms of the CARES Act and related guidance.

ARTICLE 4
REPRESENTATIONS AND WARRANTIES RELATING TO SELLERS

Section 4.1    Representations of Principal Sellers. Except as set forth in the Disclosure Schedules, each Principal Seller, severally and not jointly, hereby represents and warrants to Purchaser as follows as of the Closing Date (except for representations and warranties made as of a specific date, which shall be made as of such date only):

(a)    Existence and Power. If such Principal Seller is an entity, such Principal Seller is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has all requisite power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted. If such Principal Seller is an entity, such Principal Seller is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is necessary because of the property owned, leased or operated by it or because of the nature of its business as now being conducted, except for any failure to so qualify or be in good standing that, individually or in the aggregate, would not reasonably be expected to have a material and adverse effect on such Principal Seller’s ability to perform its obligations under this Agreement.

(b)    Authority; No Conflict.

(i)    This Agreement and each Ancillary Agreement to which such Principal Seller is a party constitute legal, valid, and binding obligations of such Principal Seller, enforceable against such Principal Seller in accordance with their respective terms, subject, in each case, to (A) the due authorization and execution and delivery by the other parties to such agreements and (B) bankruptcy, insolvency, reorganization, moratorium and similar Laws of general application relating to or affecting creditors’ rights and to general principles of equity. Such Principal Seller has the right, power and authority and capacity to execute and deliver this Agreement and each Ancillary Agreement to which it is a party and to perform its obligations under this Agreement and such other documents. To the extent such Principal Seller is an entity, the 
execution and delivery by such Principal Seller of this Agreement and each Ancillary Agreement to which it is a party and the performance by such Principal Seller of its obligations hereunder and thereunder have been duly authorized by all requisite corporate or other organizational action.

(ii)    The execution and delivery by such Principal Seller of this Agreement and each Ancillary Agreement to which it will be a party do not and the performance by such Principal Seller of its obligations hereunder and thereunder will not (with or without notice or passage of time, or both) contravene, conflict with or result in a violation of (with or without notice or passage of time, or both) contravene, conflict with or result in a violation of (A) if such Principal Seller is an entity, the Organizational Documents of such Principal Seller, (B) any material provision of applicable Law or any Order to which such Principal Seller or any of its assets relevant to the Company may be subject, or (C) any Contract to which such Principal Seller is a party.

(c)    Title to Interests. As of the Closing Date, such Principal Seller is the record and beneficial owner of the number of Interests as set forth opposite such Principal Seller’s name on Exhibit A, which number of Interests represents such Principal Seller’s entire equity interest in the Company and the Charitable Seller is the record and beneficial owner of the number of Interests as set forth opposite its name on Exhibit A. Except as set forth in the LLC Agreement or on Schedule 3.3, such Principal Seller is not a party to any shareholder agreement, investors’ rights agreement, voting agreement, voting trust, right of first refusal and co-sale agreement, management rights agreement or other similar Contract with respect to the voting, registration, redemption, sale, transfer or other disposition of Equity Securities of the Company. Upon delivery of and payment for such Interests and the Interests to be sold by the Charitable Seller as herein provided, Purchaser will acquire good and valid title thereto, free and clear of any Liens, other than transfer restrictions imposed by the LLC Agreement or securities Laws.

(d)    Litigation. There are no Legal Proceedings pending or, to the knowledge of such Principal Seller, threatened relating to or involving such Principal Seller (i) seeking to restrain, enjoin or prevent the consummation of or otherwise challenge this Agreement or any of the transactions contemplated hereby or (ii) that would reasonably be expected to have a material and adverse effect on such Principal Seller’s ability to perform its obligations under this Agreement.

(e)    Finder’s Fees. Except as set forth on Schedule 3.24, there is no investment banker, broker, finder, or other intermediary that has been retained by or is authorized on behalf of such Principal Seller or any Affiliate thereof, who would be entitled to any fee or commission in connection with the transactions contemplated by this Agreement or any of the Ancillary Agreements.

(f)    Foreign Person. Principal Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

Section 4.2    Representations of Charitable Seller. Except as set forth in the Disclosure Schedules, the Charitable Seller hereby represents and warrants to Purchaser as follows as of the Closing Date (except for representations and warranties made as of a specific date, which shall be made as of such date only):

(a)    Existence and Power. The Charitable Seller is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has all requisite power and authority to own, lease and operate its properties and assets and to conduct its affairs as now being conducted. The Charitable Seller is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is necessary because of the property owned, leased or operated by it or because of the nature of its activities as now being conducted, except for any failure to so qualify or be in good standing that, individually or in the aggregate, would not reasonably be expected to have a material and adverse effect on the Charitable Seller’s ability to perform its obligations under this Agreement.

(b)    Authority; No Conflict.

(i)    This Agreement and each Ancillary Agreement to which the Charitable Seller is a party constitute legal, valid, and binding obligations of the Charitable Seller, enforceable against the Charitable Seller in accordance with their respective terms, subject, in each case, to (A) the due authorization and execution and delivery by the other parties to such agreements and (B) bankruptcy, insolvency, reorganization, moratorium and similar Laws of general application relating to or affecting creditors’ rights and to general principles of equity. The Charitable Seller has the right, power and authority and capacity to execute and deliver this Agreement and each Ancillary Agreement to which it is a party and to perform its obligations under this Agreement and such other documents. The execution and delivery by the Charitable Seller of this Agreement and each Ancillary Agreement to which it is a party and the performance by the Charitable Seller of its obligations hereunder and thereunder have been duly authorized by all requisite corporate or other organizational action.

(ii)    The execution and delivery by the Charitable Seller of this Agreement and each Ancillary Agreement to which it will be a party do not, and the performance by the Charitable Seller of its obligations hereunder and thereunder will not (with or without notice or passage of time, or both), contravene, conflict with or result in a violation of (A) the Organizational Documents of the Charitable Seller, (B) any material provision of applicable Law or any Order to which the Charitable Seller or any of its assets may be subject, or (C) any Contract to which the Charitable Seller is a party.

(c)    Title to Interests. To the best of its knowledge, as of the Closing Date, the Charitable Seller is the record and beneficial owner of the number of Interests set forth opposite the Charitable Seller’s name on Exhibit A, which number of Interests represents the Charitable Seller’s entire equity interest in the Company. Except as set forth in the LLC Agreement, the Charitable Transfer Agreements, or on Schedule 3.3, the Charitable Seller is not a party to any shareholder agreement, investors’ rights agreement, voting agreement, voting trust, right of first refusal and co-sale agreement, management rights agreement or other similar Contract with respect to the voting, registration, redemption, sale, transfer or other disposition of Equity Securities of the Company. The Charitable Seller has not taken any action that would cause or permit its Interests to be subject to any Liens or transfer restrictions of any kind, other than transfer restrictions imposed by the LLC Agreement or securities Laws.

(d)    Foreign Person. The Charitable Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

ARTICLE 5
REPRESENTATIONS AND WARRANTIES RELATING TO PURCHASER

Purchaser represents and warrants to each Seller as follows as of the Closing Date:

Section 5.1    Organization and Existence. Each of SunPower and AcquisitionCo is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own, lease and operate its properties and assets and to carry on its business as now being conducted. Each of SunPower and AcquisitionCo is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is necessary, except for any failure to so qualify or be in good standing that would not reasonably be expected to have a material and adverse effect on such Purchaser’s ability to perform its obligations under this Agreement.

Section 5.2    Authority; No Conflict.

(a)    This Agreement and each Ancillary Agreement to which each of SunPower and AcquisitionCo is a party constitute legal, valid, and binding obligations of such Purchaser, enforceable against such Purchaser in accordance with their respective terms, subject, in each case, to (A) the due authorization and execution and delivery by the other parties to such agreements and (B) bankruptcy, insolvency, reorganization, moratorium and similar Laws of general application relating to or affecting creditors’ rights and to general principles of equity. Each of SunPower and AcquisitionCo has the right, power and authority and capacity to execute and deliver this Agreement and each Ancillary Agreement to which it is a party and to perform its obligations under this Agreement and such other documents. The execution and delivery by each of SunPower and AcquisitionCo of this Agreement and each Ancillary Agreement to which it is a party and the performance by such Purchaser of its obligations hereunder and thereunder have been duly authorized by all requisite corporate or other organizational action. Neither SunPower nor AcquisitionCo is required to obtain any consent or approval from any of its stockholders that has not previously obtained in order to consummate any of the transactions contemplated herein.

(b)    The execution and delivery by each of SunPower and AcquisitionCo of this Agreement and each Ancillary Agreement to which it will be a party do not, and the performance by such Purchaser of its obligations hereunder and thereunder will not (with or without notice or passage of time, or both), contravene, conflict with or result in a violation of (i) the Organizational Documents of such Purchaser, or (ii) any material provision of applicable Law or any Contract to which such Purchaser or any of its assets may be subject. Except with respect to filings that may be required under the HSR Act, neither SunPower nor AcquisitionCo is or will be required to obtain any Consent from any Person in connection with the execution, delivery and performance of this Agreement or any Ancillary Agreement by such Purchaser or the consummation of the transactions contemplated hereby or thereby.

Section 5.3    Litigation. Except as disclosed in SunPower’s public filings with the Securities and Exchange Commission, there is no Legal Proceeding pending or, to the Knowledge of Purchaser, threatened against or affecting 
SunPower or AcquisitionCo. Neither SunPower nor AcquisitionCo is subject to or bound by any Order that would prevent or otherwise interfere with the ability of such Purchaser to consummate the transactions contemplated by this Agreement or to otherwise perform its obligations under this Agreement or any of the Ancillary Agreements to which it is a party.

Section 5.4    Securities Laws Compliance. Each of SunPower and AcquisitionCo (a) is acquiring the Interests for its own account and not with a view to distribution, (b) is an “accredited investor” as such term is defined in Rule 501(a) under the Securities Act, (c) has sufficient knowledge and experience in financial and business matters so as to be able to evaluate the merits and risk of an investment in the Interests and is able financially to bear the risks thereof, and (d) understands that the Interests will, upon purchase, be characterized as “restricted securities” under state and federal securities Laws and that under such Laws and applicable regulations, the Interests may be resold without registration under such laws only in certain limited circumstances.

Section 5.5    Solvency. After giving effect to the consummation of all of the transactions contemplated in this Agreement, and assuming the accuracy of the representations and warranties of Sellers in this Agreement, each of SunPower and AcquisitionCo and their respective subsidiaries (including after the Closing, Blue Raven), taken as a whole, (a) will be able to pay their debts as they become due, (b) will have funds and capital sufficient to carry on their business, and (c) will own property having a value both at fair valuation and at fair saleable value in the ordinary course of business greater than the amount required to pay their debts as they become due. Neither SunPower nor AcquisitionCo will be rendered insolvent by the execution and delivery of this Agreement and/or the consummation of any transactions contemplated herein.

Section 5.6    Sufficient Funds. On the Closing Date, Purchaser will have sufficient unrestricted cash on hand and available assets and credit facilities to pay the Closing Cash Payment and all other amounts required to be paid by Purchaser at and following the Closing pursuant to the terms of this Agreement, and all of its and its representatives’ fees and expenses incurred in connection with the transactions contemplated by this Agreement and each of the Ancillary Agreements. Purchaser has no reason to believe that such cash shall not be available or that the debt under such credit facilities shall not be funded. In no event shall the receipt by, or the availability of any funds or financing to, Purchaser or any of its Affiliates or any other financing be a condition to Purchaser’s obligation to consummate the transactions contemplated hereunder.

Section 5.7    Finders’ Fees. Except as set forth on Schedule 5.6, there is no investment banker, broker, finder, or other intermediary that has been retained by or is authorized to act on behalf of SunPower or AcquisitionCo or any of their respective Affiliates, who would be entitled to any fee or commission in connection with the transactions contemplated by this Agreement or any of the Ancillary Agreements.

Section 5.8    No Other Representations. Each of SunPower and AcquisitionCo acknowledges that neither the Company nor Sellers has made or is making any representations or warranties whatsoever regarding the subject matter of this Agreement, express or implied, except as provided in this Agreement or any Ancillary Agreement, and that it is not relying and has not relied on any representations or warranties whatsoever regarding the subject matter of this Agreement, express or implied, except for the representations and warranties of Sellers in this Agreement or any Ancillary Agreement. Each of SunPower and AcquisitionCo confirms that it has made such further investigation of the business of the Company as was deemed appropriate to evaluate the merits and risks of this acquisition. Each of SunPower and AcquisitionCo further acknowledges that it has had the opportunity to ask questions of, and receive answers from, Principal Sellers, the officers and principals of the Company, and Persons acting on Principal Sellers’ behalf concerning the business of the Company and terms and conditions of the acquisition of the Interests.

ARTICLE 6
CERTAIN COVENANTS

Section 6.1    Further Assurances. Following the Closing, as and when requested by any Party to this Agreement, the other Parties will execute and deliver, or cause to be executed and delivered, all such documents and instruments, and will take, or cause to be taken, all such further or other actions, as the requesting Party may reasonably deem necessary or desirable to consummate the transactions contemplated by this Agreement.

Section 6.2    Non-Competition; Non-Solicitation.

(a)    Each Principal Seller on behalf of itself and its Affiliates covenants and agrees that for a period of three (3) years from and after the Closing, such Principal Seller will not and will cause its Affiliates not to, alone or in association with any other Person, directly or indirectly, own, manage, operate, control, participate in, provide advice or services to, invest in, or carry on a business which engages in the Business or a portion of the Business anywhere in the United States. Notwithstanding the foregoing or anything else herein to the contrary, each Principal Seller and its Affiliates may (i) 
hold less than three percent (3%) of the outstanding voting stock of a publicly traded company engaged in the Business, (ii) own a passive equity interest representing less than thirty-five percent (35%) of a private debt or equity investment fund in which such Principal Seller does not have the ability to control or exercise any managerial influence of such fund; (iii) serve on a governing board of, or otherwise act an advisory capacity to, any Person who does not engage in the Business; and (iv) engage in any other activity that would otherwise be prohibited under this Section 6.2(a) for which Purchaser provides prior written consent. For purposes of this Section 6.2(a), Principal Sellers shall not be considered Affiliates of each other. Notwithstanding the foregoing or anything else herein to the contrary, this Section 6.2(a) shall not apply to any portfolio company or other business in which Peterson Partners has a debt, equity or other economic interest, so long as such portfolio company or other business does not consult with or take direction from Peterson Partners VII, L.P., or any of its employees, officers, directors, managers or general partners with respect to any of the abovementioned prohibited forms of participation in a business which engages in the Business or a portion of the Business.

(b)    Each Principal Seller covenants and agrees that for a period of three (3) years from and after the Closing, such Principal Seller will not, whether for its own account or for the account of any Person, directly or indirectly, solicit, offer employment to or hire any individual that is employed by the Company on the Closing Date. Notwithstanding the foregoing or anything else herein to the contrary, (i) each Principal Seller may solicit, offer employment to or hire any such individual (A) through public advertising or general solicitations (including via print, broadcast media or Internet postings) that are not specifically targeted at employees of the Company, or (B) who voluntarily, on her or her own initiative, seeks employment or contracted engagement with such Principal Seller without solicitation by such Principal Seller (except as permitted herein); provided that, such individual was not employed by the Company during the three (3) months preceding their employment under clause (B); and (ii) this Section 6.2(b) shall not apply to the hiring or solicitation of any individual that is employed by the Company on the Closing Date by any portfolio company or other business in which Peterson Partners has a debt, equity or other economic interest, so long as such portfolio company or other business does not consult with or take direction from Peterson Partners VII, L.P., or any of its employees, officers, directors, managers or general partners with respect to such hiring or solicitation.

(c)    Each Principal Seller covenants and agrees that for a period of three (3) years from and after the Closing, such Principal Seller will not, whether for its own account or for the account of any Person, directly or indirectly, induce or attempt to induce any Person that is a customer or supplier of a Company on the Closing Date to cease doing business, reduce the volume of its business or otherwise change its relationship with the Company. Notwithstanding the foregoing or anything else herein to the contrary, this Section 6.2(c) shall not apply to the solicitation of any customer or supplier by any portfolio company or other business in which Peterson Partners has a debt, equity or other economic interest, so long as such portfolio company or other business does not consult with or take direction from Peterson Partners VII, L.P., or any of its employees, officers, directors, managers or general partners with respect to such inducement or solicitation.

(d)    Each Principal Seller acknowledges and agrees that the remedy at law for any breach, or threatened breach, of any of the covenants contained in this Section 6.2 would be inadequate and, accordingly, such Principal Seller agrees that Purchaser will, in addition to any other rights and remedies which Purchaser may have at law, be entitled to seek equitable relief, including injunctive relief, and to the remedy of specific performance with respect to any breach or threatened breach of any such covenant, as may be available from any court of competent jurisdiction. In addition, such Principal Seller agrees that the terms of the covenants contained in this Section 6.2 are fair, reasonable and necessary to protect the legitimate interests of Purchaser and constitute a material inducement to Purchaser to enter into this Agreement and consummate the transactions contemplated by this Agreement. In the event that any of the covenants contained in this Section 6.2 are determined by any court of competent jurisdiction to be unenforceable for any reason whatsoever, then such covenant will not be deemed void, and the Parties agree that the scope of such covenant may be modified by the court and that such covenant will be amended in accordance with such modification, it being specifically agreed by the Parties that it is their continuing desire that each covenant contained in this Section 6.2 be enforced to the full extent of its terms and conditions or if a court finds the scope of such covenant unenforceable, the court should redefine such covenant so as to comply with applicable Law.

Section 6.3    Confidentiality. Each Principal Seller covenants and agrees that for a period of three (3) years from and after the Closing, such Principal Seller shall not, and shall cause its Affiliates, agents and other representatives not to, directly or indirectly, disclose, divulge or make use of any Confidential Information related to the business of the Company except (a) to the extent required by Law or legal process (but only after such Principal Seller has provided Purchaser with reasonable notice and opportunity to take action against any legally required disclosure), (b) in connection with such Principal Seller’s compliance with the terms of this Agreement, the enforcement or exercise of such Principal Seller’s rights hereunder or the fulfillment of such Principal Seller’s obligations under this Agreement, (c) to the extent such Principal Seller or any Affiliate of such Principal Seller determines that such use or disclosure is reasonably necessary for the defense of any Legal Proceeding against such Principal Seller or any Affiliate of such Principal Seller, including in connection with challenging or 
defending any claim for indemnification under this Agreement, and (d) to the extent required by accounting requirements, including in connection with any accounting, audit, Tax or regulatory compliance of such Principal Seller or any Affiliate thereof. Notwithstanding the foregoing, following the Closing, Peterson Partners will be allowed to disclose the principal terms of this Agreement and the transactions contemplated hereby without the prior written consent of Purchaser to Peterson Partners’ agents, advisors, attorneys, consultants, auditors, limited partners, general partners, financing sources, potential investors, and any Peterson Representative so long as such persons have entered into a confidentiality agreement containing terms similar to this Section 6.3 or are subject to a similar obligation or duty; provided that Peterson Partners may disclose the acquisition of the Company by Purchaser, the Purchase Price, and other principal terms of this Agreement customarily included in investment teasers and similar investment marketing materials to any of the foregoing Persons without such Persons having entered into a confidentiality agreement containing terms similar to this Section 6.3 or being subject to a similar obligation or duty, provided, however, that such terms must have been publicly disclosed in SunPower’s public filings with the Securities and Exchange Commission.

Section 6.4    Indemnification of Officers and Managers. From the Closing until the sixth (6th) anniversary of the Closing Date, all rights to indemnification by the Company existing in favor of those Persons who were immediately prior to Closing, or at any time prior to the Closing Date, managers or officers of the Company (the “D&O Indemnified Persons”) for their acts and omissions occurring prior to the Closing, as provided in the Organizational Documents of the Company, as applicable, shall be observed by the Company, as applicable, to the fullest extent available pursuant to the Organizational Documents of the Company under applicable Law, and any claim made requesting indemnification pursuant to such indemnification rights shall continue to be subject to this Section 6.4 until disposition of such claim; provided, however, that no Principal Seller shall be entitled to any such indemnification in connection with any claim arising from or relating to the same facts and circumstances giving rise to a claim by Purchaser under Article 9. The provisions of this Section 6.4 are intended to be for the benefit of, and will be enforceable in accordance with their terms by, each of the D&O Indemnified Persons and their successors, assigns and heirs.

Section 6.5    Efforts and Cooperation Regarding Competition Law Filings.

(a)    Subject to the terms and conditions herein provided, if not made prior to the Closing, each of Purchaser and Principal Sellers will use, and Principal Sellers shall cause the Company to use, their respective commercially reasonable efforts and will cooperate fully with one another to comply as promptly as practicable with all governmental requirements applicable to the transactions contemplated by this Agreement and to obtain promptly all approvals, orders, permits or other consents of any applicable Competition Authorities necessary for the consummation of the transactions contemplated by this Agreement, including any notifications and expiration or termination of any waiting periods under the HSR Act and the satisfaction, but not the waiver, of the closing conditions set forth in Sections 8.1(d) and (e) and 8.2(d) and (e). Without limiting the generality of the foregoing, each of the Purchaser and Principal Sellers shall use, and Principal Sellers shall cause the Company to use, commercially reasonable efforts to obtain consents of all Competition Authorities necessary to consummate the transactions contemplated by this Agreement.

(b)    Each Party shall cooperate and promptly provide information to other Parties necessary to prepare filings and make appropriate filings, if necessary, pursuant to the Competition Laws with respect to the transactions contemplated by this Agreement, and shall supply as promptly as practicable to the appropriate Competition Authorities any additional information and documentary material that may be requested pursuant to the HSR Act or other Competition Laws.

(c)    Each Party shall keep the other Parties reasonably informed with respect to the status of any such submissions and filings to such Competition Authorities and reasonably cooperate with each other, including with respect to: (A) the receipt of any non-action, action, clearance, consent, approval or waiver; (B) the expiration or termination of any waiting period; (C) the utilization of any pull and refiling procedure; (D) communications and meetings with Competition Authorities; (E) any timing agreement with any Competition Authority; (F) the commencement or proposed or threatened commencement of any investigation, litigation or administrative or judicial action or Legal Proceeding under the Competition Laws or other applicable Laws; and (G) the nature and status of any objections raised or proposed or threatened to be raised under the Competition Laws or other applicable Laws with respect to the transactions contemplated under this Agreement.

(d)    Purchaser and Principal Sellers shall, subject to applicable Law relating to the exchange of information, do the following: (i) promptly notify the other Parties of (and if in writing, furnish the other Parties with copies of) any request, inquiry, objection, charge or other claim, actual or threatened, or other communication to such person from a third-person or any Competition Authority, including, without limitation, the Federal Trade Commission and the U.S. Department of Justice, regarding the filings and submissions described in this Section 6.5, or in connection with the transactions contemplated by this Agreement, and, to the extent reasonably feasible permit the others to review and discuss in advance (and to consider in good faith any comments made by the others in relation to) any proposed substantive written response to any communication 
from a Competition Authority regarding the filings and submissions described in this Section 6.5; (ii) keep the other Parties reasonably informed of any developments, meetings or discussions with any Competition Authority in respect of any filings, investigation or inquiry concerning the transactions contemplated by this Agreement, including, without limitation, the status of any request,inquiry, objection, or other claim by the Federal Trade Commission and the U.S. Department of Justice; and (iii) not independently participate in any meeting or discussions with a Competition Authority in respect of any filings, investigation or inquiry concerning the transactions contemplated by this Agreement without giving the other Parties prior notice of such meeting or discussions and, unless prohibited by such Competition Authority, the opportunity to attend or participate; provided, that the Parties shall be permitted to reasonably redact any correspondence, filing, submission or communication to the extent such correspondence, filing, submission or communication contains competitively or commercially sensitive information, including information relating to the valuation of the transactions, and, provided that all such sensitive information and documents pertinent to any competitive review, investigation or Legal Proceeding is provided to antitrust counsel for Purchaser, which may be designated as limited for “Outside Counsel Only” to the extent it includes competitively sensitive information.

(e)    Notwithstanding the foregoing, nothing in this Section 6.5 or otherwise in this Agreement including exercise of reasonable best efforts or any commercially reasonable efforts shall require any Party to propose, negotiate, effect or agree to, the sale, divestiture, license or other disposition of any assets or businesses of such Party or of the Company or any Affiliate of either, or otherwise take any action that limits the freedom of action with respect to, or its ability to retain any of the businesses, product lines or assets of such Party or the Company or any Affiliate of either.

(f)    In the event any claim, action, suit, investigation or other Legal Proceeding by any Competition Authority or other Person is commenced which questions the validity or legality of the transactions contemplated hereby or seeks damages in connection therewith, the Parties, at the expense of Purchaser, agree to cooperate and use commercially reasonable efforts to defend against such claim, action, suit, investigation or other Legal Proceeding and, if an injunction or other order is issued in any such action, suit or other Legal Proceeding, to use commercially reasonable efforts to have such injunction or other order lifted, and to cooperate reasonably regarding any other impediment to the consummation of the transactions contemplated hereby. Purchaser, at its expense, shall be entitled to direct the antitrust defense of transactions contemplated by this Agreement, or negotiations with, any Competition Authority or other third party relating to the transactions or regulatory filings under applicable Competition Laws, subject to the provisions of this Section 6.5. No Party shall make any offer, acceptance or counter-offer to or otherwise engage in negotiations or discussions with any Competition Authority with respect to any proposed settlement, consent decree, commitment or remedy, or, in the event of litigation, discovery, admissibility of evidence, timing or scheduling, except as Purchaser and Principal Sellers mutually agree.

ARTICLE 7
CERTAIN TAX MATTERS

Section 7.1    Consistent Tax Reporting. The Parties agree that unless otherwise required by applicable Law, for U.S. federal income tax purposes, the purchase and sale of the Interests shall be treated, from the perspective of the Sellers, as a sale of partnership interests and, from Purchaser’s perspective, as an asset acquisition, as provided for in Situation 1 of IRS Revenue Ruling 99-6, 1999-1 C.B. 432. The Parties further agree to (a) report the transactions contemplated by this Agreement in all respects consistently with this Section 7.1 and the other provisions of this Agreement for purposes of any federal, state, local or foreign Tax Return and (b) not take any actions or positions inconsistent with the obligations of the Parties set forth herein. The Parties also agree (x) that the Contingent Purchase Consideration paid (or to be paid) to The Skein Trust, The Gosling Trust, and Michael Rands constitutes a portion of the purchase consideration payable to them (in accordance with the provisions of this Agreement) in exchange for their Interests and not as compensation for services, (y) that the forfeited Deferred Service Provider Payments that are paid (or to be paid) to the Sellers pursuant to Section 2.5(a) constitute a portion of the purchase consideration payable to them (in accordance with the provisions of this Agreement) in exchange for their Interests and not as compensation for services, and (z) to report any and all payments of the Contingent Purchase Consideration and forfeited Deferred Service Provider Payments paid to Sellers as part of the Purchase Price and that Purchaser will not deduct or otherwise treat such payments as compensation.

Section 7.2    Returns; Payment of Taxes.

(a)    Principal Sellers shall prepare and file, or cause to be prepared and filed, in accordance with past practice, all Returns of Sellers and the Company that are required to be filed before the Closing Date and pay or cause to be paid any Taxes due in respect of such Returns.

(b)    Purchaser shall prepare and file, or cause to be prepared and filed, all Returns of Blue Raven and its subsidiaries that are required to be filed after the Closing Date and timely remit any Taxes shown to be due on such Returns to the applicable Taxing Authorities, subject to Principal Sellers’ obligation to pay Purchaser the Seller Tax 
Obligations, if any. Before filing any income Tax Return with respect to a Pre-Closing Tax Period or Straddle Period (a “Purchaser Return”), Purchaser shall deliver, or cause to be delivered, to Seller Representative for review and comment, at least forty-five (45) days prior to the due date thereof (giving effect to any extensions thereto) a completed copy of such Purchaser Return along with a statement (the “Tax Statement”) identifying and summarizing the methodology used to calculate the amount of Seller Tax Obligations. If Seller Representative agrees with such Purchaser Return and the Tax Statement, then Seller Representative shall so notify Purchaser and Principal Sellers shall pay to (or as directed by) Purchaser the amount of Taxes shown on the Tax Statement as being Seller Tax Obligations, and such payments shall be made in each case no later than five (5) Business Days prior to the due date for paying such Taxes to the relevant Taxing Authority. If, however, within twenty (20) days after receipt of a Purchaser Return and Tax Statement, Seller Representative (i) notifies Purchaser that it disputes the accuracy of the Purchaser Return or amount of Taxes shown on the Tax Statement as being Seller Tax Obligations and (ii) provides Purchaser with a statement setting forth in reasonable detail its computation of the amount of Taxes that should be Seller Tax Obligations and/or any errors in such Purchaser Return, then Purchaser and Seller Representative shall attempt to resolve their disagreement within five (5) days following Seller Representative’s notification of Purchaser of such disagreement. If Purchaser and Seller Representative are not able to resolve their disagreement, the dispute shall be submitted to the Independent Accountant for resolution in accordance with the principles of Section 2.4(e). If the Independent Accountant is unable to resolve all objections before the due date for filing such Purchaser Tax Return, the Tax Return shall be filed as initially prepared by Purchaser and then amended, if necessary, to reflect the decision of the Independent Accountant. The determination of the Independent Accountant shall be binding on the Parties. The cost of the services of the Independent Accountant will be shared equally by Principal Sellers, on the one hand, and Purchaser, on the other hand. Notwithstanding the foregoing, Principal Sellers shall not be required to pay Seller Tax Obligations or any other Taxes pursuant to this Section 7.2(b) to the extent that such Seller Tax Obligations or other Taxes are taken into account in the final determination of the Closing Net Working Capital and result in a reduction to the final Purchase Price.

Section 7.3    Straddle Period Allocation; Refunds.

(a)    In the case of any Taxes that are imposed on a periodic basis and are payable for a Straddle Period, the portion of such Tax that relates to the Pre-Closing Tax Period shall (a) in the case of any property or ad valorem Taxes, be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the number of days in the taxable period ending on the Closing Date and the denominator of which is the number of days in the entire taxable period, and (b) in the case of any other Taxes, be deemed equal to the amount which would be payable if the relevant taxable period ended on the Closing Date; provided, however, that exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and amortization deductions) shall be allocated between the period ending on the Closing Date and the period after the Closing Date in proportion to the number of days in each such period. Any credits relating to a Straddle Period shall be allocated on a basis consistent with the allocations made pursuant to the preceding sentence.

(b)    Except to the extent taken into account in the final determination of the Closing Net Working Capital, Principal Sellers are entitled to receive any Tax refunds for Pre-Closing Tax Periods. Purchaser shall promptly deliver to Seller Representative the amount of any refund it receives to which Principal Sellers are entitled hereunder, without interest (other than interest received from the applicable Taxing Authority), net of reasonable expenses (including Taxes) with respect thereto or incurred in connection therewith.

Section 7.4    Allocation of Purchase Price. Purchaser shall prepare an allocation of the Final Purchase Price and liabilities that are amounts realized for U.S. federal income tax purposes among the assets of Blue Raven and its subsidiaries in accordance with Section 1060 of the Code and the Treasury Regulations thereunder (and any similar provisions of state, local or non-U.S. Law, as appropriate), which allocation shall made in accordance with the allocation set forth in Schedule 7.4 and be binding on Purchaser, Sellers, and Blue Raven and its subsidiaries. Purchaser shall deliver such allocation to Sellers Representative within ninety (90) days after the Closing for review. The Principal Sellers shall have ten (10) days from receipt of Purchaser’s allocation to notify Purchaser of an objection thereto. If the Principal Sellers timely object to such allocation and Purchaser agrees, Purchaser shall change such allocation and notify the Sellers Representative thereof. If the Parties fail to resolve a timely objection, they shall submit the dispute to the Independent Accountant in accordance with the principles of Section 2.4(e). Purchaser, Sellers, and Blue Raven and its subsidiaries agree to make all appropriate Tax filings on a basis consistent with the agreed allocation and to provide a draft of any required information Return to the other Parties, if requested, at least ten (10) days prior to the filing of any such Return. None of Sellers, Purchaser, or Blue Raven or its subsidiaries shall take any position (whether in audits, Tax Returns or otherwise) that is inconsistent with such allocation unless required to do so by applicable Law. The Parties shall timely file any required IRS Forms 8594 in a manner consistent with such asset allocation.

Section 7.5    Cooperation on Tax Matters. Purchaser and Sellers shall cooperate fully, to the extent reasonably requested by the other Parties, in connection with the filing of Returns and any audit or Legal Proceeding with respect to Taxes. 
Such cooperation shall include the retention and (upon another Party’s request) the provision of records and information which are reasonably relevant to any such Return filing, audit, litigation, or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. After the Closing, Purchaser shall make available to Sellers all of the books and records of Blue Raven and its subsidiaries to the extent reasonably necessary for Seller’s filing of Returns pursuant to Section 7.2(a) or for any other reasonable purpose related to Seller’s ownership of Blue Raven and its subsidiaries prior to the Closing.

Section 7.6    Control of Audits. After the Closing Date, except as set forth in the next sentence, Purchaser shall control the conduct, through counsel of its own choosing, of any audit, claim for refund, or administrative or judicial proceeding involving any asserted Tax liability or refund with respect to Blue Raven and its subsidiaries (each, a “Contest”), but Seller Representative shall have the right to participate in such Contest with respect to any Straddle Period at Principal Sellers’ expense, and Purchaser shall not settle, compromise and/or concede any portion of such Contest that could materially affect the Tax liability of Principal Sellers for any Straddle Period without the written consent of Seller Representative (which shall not be unreasonably withheld, conditioned or delayed). In the case of a Contest after the Closing Date that relates solely to Pre-Closing Tax Periods, Seller Representative, at Principal Sellers’ expense, shall control the conduct of such Contest, using counsel reasonably satisfactory to Purchaser, but Purchaser shall have the right to participate in such Contest at its own expense, and Seller Representative shall not settle, compromise and/or concede any portion of such Contest that could materially affect the Tax liability of Blue Raven or its subsidiaries for any taxable year (or portion thereof) after the Closing Date without the written consent of Purchaser (which shall not be unreasonably withheld, conditioned or delayed); provided that, if Seller Representative fails to assume control of the conduct of any such Contest within thirty (30) days following the receipt by Seller Representative of notice of such Contest, Purchaser shall have the right to assume control of such Contest and shall be entitled to settle, compromise and/or concede any portion of such Contest. Purchaser shall promptly notify Seller Representative of the commencement of any audit or examination by any Taxing Authority of Blue Raven and its subsidiaries that includes a Pre-Closing Tax Period or a Straddle Period. Seller Representative shall promptly notify Purchaser if he becomes aware of the commencement of any audit or examination by any Taxing Authority of Blue Raven and its subsidiaries for any taxable period. To the extent of any conflict between this Section 7.6 and Section 9.5, this Section 7.6 shall control.

Section 7.7    Transfer Taxes; Tax Sharing Agreements.

(a)    All transfer, documentary, sales, use, real property gains, stamp, registration, and other such Taxes and fees incurred in connection with this Agreement shall be paid by Purchaser when due, and Purchaser shall timely file or cause to be filed all necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, real property gains, stamp, registration, and other Taxes, fees and charges, as required to be filed by it under applicable Law, and Principal Sellers will reasonably cooperate with respect thereto as necessary and, if required by applicable Law, join in the execution of any such Returns and other documentation.

(b)    Principal Sellers shall cause any Tax allocation agreement, Tax indemnity agreement, Tax sharing agreement or similar Contract between Blue Raven and any other Person to be terminated as of the Closing Date such that, from and after the Closing Date, Blue Raven shall not be obligated to make any payment pursuant to any such agreement for any Tax period.

ARTICLE 8
OBLIGATIONS TO CLOSE; CLOSING DELIVERABLES

Section 8.1    Conditions Precedent to Purchaser’s Obligation to Close. Purchaser’s obligation to purchase the Interests and to take the other actions required to be taken by Purchaser at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Purchaser, in whole or in part):

(a)    Each of the representations and warranties contained in ARTICLE 3 and ARTICLE 4 shall be true and correct in all respects as of the Closing Date (except to the extent any representation or warranty expressly relates to a specific date, in which case as of that specific date);

(b)    Sellers shall have performed in all material respects and complied in all material respects with all agreements and covenants contained in this Agreement that are required to be performed or complied with by them prior to or at the Closing;

(c)    The provisions of Section 8.3 shall have been complied with in all respects;

(d)    All filings required pursuant to the HSR Act, if any, shall have been made and the 
applicable waiting period and any extensions thereof have expired or been terminated; and

(e)    None of the parties shall be subject to any Order of a court of competent jurisdiction that prohibits the consummation of the transactions contemplated by this Agreement.

Section 8.2    Conditions Precedent to Sellers’ Obligation to Close. Sellers’ obligation to sell the Interests and to take the other actions required to be taken by Sellers’ at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Seller Representative, in whole or in part):

(a)    Each of the representations and warranties contained in ARTICLE 5 shall be true and correct in all respects as of the Closing Date (except to the extent any representation or warranty expressly relates to a specific date, in which case as of that specific date);

(b)    Purchaser shall have performed in all material respects and complied in all material respects with all agreements and covenants contained in this Agreement that are required to be performed or complied with by Purchaser prior to or at the Closing;

(c)    The provisions of Section 8.4 shall have been complied with in all respects;

(d)    All filings required pursuant to the HSR Act, if any, shall have been made and the applicable waiting period and any extensions thereof have expired or been terminated; and

(e)    None of the parties shall be subject to any Order of a court of competent jurisdiction that prohibits the consummation of the transactions contemplated by this Agreement.

Section 8.3    Closing Deliverables of Sellers. On the Closing Date, Sellers will deliver or cause to be delivered to Purchaser (or to such other Person indicated below) the following:

(a)    Each of the Ancillary Agreements to which any Seller or the Company is a party, duly executed by such Seller or Company, as applicable;

(b)    All Consents set forth on Schedule 8.3(b), which Consents will be in full force and effect and not subject to any condition or waiver that has not been satisfied;

(c)    Evidence satisfactory to Purchaser, including payoff letters, evidencing the repayment in full of all Indebtedness;

(d)    Evidence satisfactory to Purchase, that the PPP Loan has been forgiven;

(e)    Evidence that the execution, delivery and performance by Sellers of this Agreement and the transactions contemplated hereby have been duly authorized and approved by all necessary action on the part of Sellers and the Company, and any vote, approval or consent required to be received or obtained in connection therewith has been received or obtained;

(f)    A good standing certificate (or equivalent) for the Company from the Governmental Authorities of its jurisdiction of formation, each as of a date within fifteen (15) days of the Closing Date;

(g)    A certificate from each Seller pursuant to Treasury Regulations Section 1.1445-2(b) certifying that such Seller is not a foreign person within the meaning of Section 1445 of the Code, in form and substance reasonably satisfactory to Purchaser;

(h)    Resignations, effective as of the Closing, of each manager and officer of Blue Raven and its subsidiaries set forth on Schedule 8.3(h); and

(i)    Such other agreements, consents, documents, instruments and writings as are reasonably requested by Purchaser to be delivered by Sellers in order to consummate the transactions contemplated by this Agreement and the Ancillary Agreements. 

Section 8.4    Closing Deliverables of Purchaser. On the Closing Date, Purchaser will deliver or cause to be delivered to Seller Representative (or to such other Person indicated below) the following:

(a)    The Estimated Closing Cash Payment in accordance with Section 2.2;

(b)    Each of the Ancillary Agreements to which Purchaser is a party, duly executed by Purchaser;

(c)    Evidence that the execution, delivery and performance by Purchaser of this Agreement and the transactions contemplated hereby have been duly authorized and approved by all necessary action on the part of Purchaser, and any vote, approval or consent required to be received or obtained in connection therewith has been received or obtained;

(d)    The R&W Insurance Policy, which shall be bound at or prior to the Closing; and

(e)    Such other agreements, consents, documents, instruments and writings as are reasonably requested by Seller Representative to be delivered by Purchaser in order to consummate the transactions contemplated by this Agreement and the Ancillary Agreements.

ARTICLE 9
SURVIVAL; INDEMNIFICATION

Section 9.1    Survival. The Fundamental Representations will survive until the later of the date that is six (6) years following the Closing Date or sixty (60) days following the expiration of the applicable statute of limitations. All other representations and warranties in this Agreement shall not survive the Closing. All covenants will survive until the date they otherwise expire, whether by their express terms or as a matter of applicable Law. Notwithstanding anything contained herein to the contrary, if, prior to the close of business on the last day a claim for indemnification may be asserted hereunder, an Indemnifying Party has been notified of a claim for indemnification in accordance with the terms of this ARTICLE 9 and such claim has not been finally resolved or disposed of as of such date, such claim for indemnification will continue to survive and will remain a basis for indemnification hereunder until such claim is finally resolved or disposed of in accordance with the terms hereof.

Section 9.2    Indemnification of Purchaser.

(a)    Subject to the limitations set forth in this ARTICLE 9, from and after the Closing, Principal Sellers, severally and not jointly, will indemnify and hold harmless and defend Purchaser, its Affiliates (including, following the Closing, Blue Raven and its subsidiaries) and its and their respective shareholders, officers, directors, members, managers, partners, employees, representatives and agents, and their respective successors and assigns of the foregoing (the “Purchaser Indemnified Parties”), from and against any and all Losses suffered or incurred by any such Purchaser Indemnified Party arising out of, relating to or resulting from:

(i)    any breach or inaccuracy of any Fundamental Representation set forth in ARTICLE 3;

(ii)    any breach of any of the covenants or agreements made by Sellers collectively (and not individually) in this Agreement or any Ancillary Agreement, other than breaches of Section 6.2 and Section 6.3;

(iii)    any Indebtedness with respect to a pre-Closing period, to the extent outstanding at the Closing and not included as a current liability in Closing Net Working Capital;

(iv)    any Transaction Expenses with respect to a pre-Closing period, to the extent unpaid at the Closing; or

(v)    the items set forth on Schedule 9.2(a)(v).

(b)    Subject to the limitations set forth in this ARTICLE 9, from and after the Closing, each Seller, severally for itself and not jointly, will indemnify and hold harmless and defend each Purchaser Indemnified Parties from and against any and all Losses suffered or incurred by any such Purchaser Indemnified Party arising out of, relating to or resulting from:

(i)    any breach or inaccuracy of any Fundamental Representation of such Seller set forth in ARTICLE 4; or

(ii)    any breach of any of the covenants or agreements made by such Seller individually (and not collectively) in this Agreement or any Ancillary Agreement, including breaches of Section 6.2 and Section 6.3.

Section 9.3    Indemnification of Sellers. From and after the Closing, Purchaser will indemnify and hold harmless and defend Sellers and their respective shareholders, directors, members, managers, partners, employees, trustees, representatives, agents, heirs, successors, and assigns (as applicable, the “Seller Indemnified Parties”) from and against any and all Losses suffered or incurred by or any such Seller Indemnified Party arising out of, relating to or resulting from (i) any breach or inaccuracy of any representation or warranty of Purchaser contained in ARTICLE 5 and (ii) any breach of any of the covenants or agreements of Purchaser contained in this Agreement.

Section 9.4    Certain Limitations.

(a)    Notwithstanding anything herein to the contrary, the maximum liability of each Principal Seller under Section 9.2(a)(i) shall be the pro rata share of the Purchase Price (ignoring for purposes of this Section 9.4, the pro rata share of the Charitable Seller) of such Principal Seller as set forth in the Funds Flow Memorandum; provided, however, that this Section 9.4(a) shall not apply to any Losses attributable to the breach of covenants or involving fraud.

(b)    No Principal Seller shall be liable to any Purchaser Indemnified Party for (i) breach or non-performance by any other Seller (other than the Charitable Seller) of the representations, warranties, covenants and agreements of such other Seller (other than the Charitable Seller) set forth in this Agreement or any Ancillary Agreement, or (ii) fraud by any other Person (in which case a claim for fraud may be asserted by any Purchaser Indemnified Party solely against the Seller (other than the Charitable Seller) who committed such fraud and no other Seller shall be liable for the fraud committed by any other Seller (other than the Charitable Seller)).

(c)    Notwithstanding anything herein to the contrary, the maximum liability of the Charitable Seller under this Agreement, including this ARTICLE 9, shall be the actual proceeds received hereunder by the Charitable Seller.

(d)    For purposes of the indemnity contained in this ARTICLE 9, all qualifications and limitations set forth in the parties’ representations and warranties as to “materiality,” “Material Adverse Effect” and words of similar import shall be disregarded in determining whether there shall have been any inaccuracy in or breach of any representations and warranties in this Agreement and the Losses arising therefrom.

Section 9.5    Procedure for Indemnification.

(a)    If any third party notifies any Indemnified Party with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against the Indemnifying Party under this ARTICLE 9, then the Indemnified Party must promptly, and in any event within thirty (30) days after receiving notice of such Third Party Claim, notify the Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party will relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party is actually and materially prejudiced thereby. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Losses that have been or may be sustained by the Indemnified Party.

(b)    The Indemnifying Party will have the right to defend the Indemnified Party against the Third Party Claim with counsel of the Indemnifying Party’s choice, reasonably satisfactory to the Indemnified Party, so long as the Indemnifying Party notifies the Indemnified Party, within 30 days after the Indemnified Party has given notice of the Third Party Claim to the Indemnifying Party (or, if earlier, 10 days before an answer is due in the applicable Legal Proceeding), that the Indemnifying Party is assuming the defense of such Third Party Claim and acknowledging that the Losses relating to such claim are the responsibility of the Indemnifying Party, provided, however, that, the Indemnifying Party shall not be entitled to defend the Indemnified Party if (i) such Third Party Claim (A) seeks injunctive relief, (B) seeks other equitable relief that, if such Third Party were to prevail on such equity claims, would result in material restrictions on the operation of the business of Blue Raven and its subsidiaries, or (C) is brought by a Governmental Authority, or (ii) the Indemnified Party has been advised by counsel that there is an actual conflict of interest between the Indemnifying Party and the indemnified Party. In the event that the Indemnifying Party fails to assume the defense of any Third Party Claim within the period required by this Section 9.5(b), 
the Indemnified Party will have the right to undertake the defense of such Third Party Claim at the expense and for the account of the Indemnifying Party. In the event the Indemnified Party undertakes defense of such Third Party Claim pursuant to this Section 9.5(b), (1) the Indemnifying Party may retain separate co-counsel at its sole cost and expense, (2) the Indemnified Party will not, without the prior written consent of the Indemnifying Party (which consent may not be unreasonably withheld or delayed), consent to any admission or the entry of any judgment with respect to the matter, or enter into any settlement.

(c)    So long as the conditions set forth in Section 9.5(b) are and remain satisfied, then (i) the Indemnifying Party may conduct the defense of the Third Party Claim in accordance with Section 9.5(b), (ii) the Indemnified Party may retain separate co-counsel at its sole cost and expense, and (iii) the Indemnifying Party will not, without the prior written consent of the Indemnified Party (which consent may not be unreasonably withheld or delayed), consent to any admission or the entry of any judgment with respect to the matter, or enter into any settlement which (A) imposes an injunction or other equitable relief upon the Indemnified Party, (B) does not include an unconditional provision whereby the plaintiff or claimant in the matter releases the Indemnified Party from all liability with respect thereto, (C) includes any statement as to or an admission of fact, culpability or failure to act by or on behalf of the Indemnified Party or any of its Affiliates or (D) requires any monetary payment by the Indemnified Party and (iv) with respect to any Third Party Claim where indemnification is being sought under the R&W Insurance Policy, the Indemnifying Party will not, without, the prior written consent of the insurer(s) under the R&W Insurance Policy, consent to any admission or the entry of any judgment with respect to the matter, or enter into any settlement, to the extent Purchaser would be required to obtain such consent under the R&W Insurance Policy.

Section 9.6    Notice of Direct Claims. Any claim for indemnification of Losses under this ARTICLE 9 that is not a Third Party Claim (a “Direct Claim”) by an Indemnified Party will be asserted by giving prompt written notice thereof to the Indemnifying Party; provided, however, that any delay in providing, or the failure to provide such notification, will not affect the right of the Indemnified Party to indemnification hereunder except in the event that such delay or failure extends past the applicable survival expiration date set forth in Section 9.1 or to the extent that the Indemnifying Party is materially prejudiced by the delay or failure. Such notice will describe the Direct Claim in reasonable detail, including (to the extent practicable) copies of any written evidence thereof and will indicate the estimated amount of Losses, if reasonably determinable, that has been sustained by the Indemnified Party. The Indemnifying Party will have until 5:00 p.m., Mountain Time, on the date that is twenty (20) days after the Direct Claim is asserted to respond in writing to such Direct Claim. If the Indemnifying Party does not so respond within such twenty (20) day period, the Indemnifying Party will be deemed to have accepted such claim. If the Indemnifying Party does respond within such twenty (20) day period to reject the Direct Claim, however, the Indemnified Party will be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this ARTICLE 9.

Section 9.7    Payment of Losses. No later than ten (10) Business Days following the final determination of the amount of any Losses payable by Principal Sellers to any Purchaser Indemnified Party in accordance with this ARTICLE 9, Principal Sellers, severally and not jointly, shall pay the amount of such Losses to Purchaser (i) in accordance with their respective pro rata shares as set forth on the Funds Flow Memorandum (ignoring for purposes of this Section 9.7, the pro rata share of the Charitable Seller), in cash, by wire transfer of immediately available funds to an account designated in writing by Purchaser, or (ii) to the extent applicable, from the Escrow Account in the amounts and on the terms set forth on Schedule 9.2(a)(v). No later than ten (10) Business Days following the final determination of the amount of any Losses payable to any Seller Indemnified Party in accordance with this ARTICLE 9, Purchaser shall pay to Seller Representative, in cash, by wire transfer of immediately available funds to an account designated in writing by Seller Representative, the amount of such Losses.

Section 9.8    R&W Insurance Policy.

(a)    The Parties acknowledge that Purchaser is obtaining the R&W Insurance Policy and that the fees, costs and expenses (including any premium) associated with purchasing the R&W Insurance Policy that are required to be paid to the insurer providing the R&W Insurance Policy shall be borne and paid by Purchaser (except that the Sellers shall pay a portion of the R&W Insurance Policy by payment of the Transaction Insurance Premiums). Except with respect to Fundamental Representations and any items set forth on Schedule 9.2(a)(v), the R&W Insurance Policy is Purchaser’s sole recourse with respect to any breach or inaccuracy of any representation or warranty in this Agreement, any Ancillary Agreement or any certificate or instrument delivered pursuant hereto. Additionally, except as set forth in the following sentence, any retention or deductible associated with the R&W Insurance Policy shall be borne and paid solely by Purchaser. With respect to Losses indemnifiable pursuant to Section 9.2(a)(i), the Purchaser Indemnified Parties shall recover (i) first, from Principal Sellers, severally and not jointly in accordance with their respective pro rata shares as set forth on the Funds Flow Memorandum (ignoring for purposes of this Section 9.8, the pro rata share of the Charitable Seller), to the extent of any unpaid retention or deductible under the R&W Insurance Policy, (ii) second, from the R&W Insurance Policy and (iii) thereafter, if coverage under the R&W Insurance Policy is insufficient to satisfy such Losses, directly from Principal Sellers, severally and not jointly in 
accordance with their respective pro rata shares as set forth on the Funds Flow Memorandum (ignoring for purposes of this Section 9.8, the pro rata share of the Charitable Seller); provided that the foregoing limitations shall not apply to Losses based upon or resulting from fraud.

(b)    From and after the Closing Date, Purchaser shall not (and shall cause its Affiliates to not) amend the R&W Insurance Policy in a manner which would prejudice Sellers without Seller Representative’s prior written consent.

(c)    The R&W Insurance Policy shall expressly provide that (i) the insurer(s) have no subrogation rights and may not and will not pursue any claim against Sellers or any of their respective Affiliates, as a result of any alleged breach of any representation or warranty or of the indemnification obligations of Sellers under this ARTICLE 9, other than as a result of any such breach involving fraud by a Seller; (ii) Sellers and their respective Affiliates are third party beneficiaries of the promise of the insurer(s) to not pursue claims against Sellers, except in the event of fraud pursuant to clause (i) above; and (iii) without limiting the generality of Section 9.9(b), following the Closing, Purchaser may not modify the limitations on subrogation against Sellers in the R&W Insurance Policy without Seller Representative’s express written consent.

(d)    The limitations on indemnification set forth in Section 9.9 shall not apply to restrict Purchaser’s rights under the R&W Insurance Policy, but will apply in all other cases.

(e)    Following the Closing, except for the remedies described in Section 10.11, Purchaser shall have no remedy against Principal Sellers for any breach or inaccuracy of any representation or warranty in this Agreement, any Ancillary Agreement or any certificate or instrument delivered pursuant hereto other than with respect to Fundamental Representations pursuant to Sections 9.2(a)(i) and 9.8(a) (provided that the foregoing will not limit or apply in any manner to Purchaser’s rights to recover from any insurer in respect of the R&W Insurance Policy for any such breach or inaccuracy under the R&W Insurance Policy).

Section 9.9    Additional Limitations. Notwithstanding the foregoing, the Parties expressly intend and agree as follows:

(a)    From and after the Closing, the indemnification provisions provided for in this ARTICLE 9 will be the exclusive remedy for any breach of any representation, warranty, covenant, agreement, or obligation set forth herein or any other claims relating to the subject matter of this Agreement or any Ancillary Agreement, except in the case of fraud (in which case a claim may be asserted by an Indemnified Party solely against the Person who committed such fraud, and no other Person) or with respect to matters for which the remedy of specific performance, injunctive relief or other non-monetary equitable remedies are available pursuant to Section 6.2 and Section 10.11. For the avoidance of doubt, any adjustments made to the Purchase Price pursuant to Section 2.4 shall not be considered “remedies” for purposes of this Section 9.9(a) and shall not be limited by the terms of this Section 9.9(a).

(b)    The amount of any Loss subject to indemnification hereunder and recoverable against Principal Sellers will be calculated net of any insurance proceeds actually received by the Indemnified Party from any insurer on account of such Loss or from any indemnity, contribution or other similar payment (as reduced by any related retrospective or prospective increase in premiums and taking into account all costs and expenses reasonably incurred in procuring such proceeds and any Taxes paid or payable as a result of the receipt of such proceeds). The Indemnified Party shall use its commercially reasonable efforts to seek recovery under insurance policies (including the R&W Insurance Policy and any insurance policy covering the items of special indemnification set forth in Schedule 9.2(a)(v)) or other indemnity, contribution or other similar agreements for any Losses prior to seeking recovery for such Losses from the Indemnifying Party pursuant to, and subject to the limitations of, this ARTICLE 9; except that the Indemnified Party shall not be required to seek recovery under the R&W Insurance Policy with respect to the items of special indemnification set forth in Schedule 9.2(a)(v).

(c)    Notwithstanding anything to the contrary in this Agreement, it is intended that the provisions of this Agreement will not result in any duplicative payment of any amount required to be paid under this Agreement (and Principal Sellers shall not be required to indemnify any Purchaser Indemnified Party in respect of any matter to the extent such matter can be shown by Principal Sellers to have been taken into account in the final computation of the Closing Net Working Capital), and this Agreement shall be construed accordingly.

(d)    Any indemnity payment made pursuant to this ARTICLE 9 shall be treated as an adjustment to the Purchase Price for federal, state, local provincial or foreign Tax purposes unless a contrary treatment is required under applicable Law.

Section 9.10    Liability of Charitable Seller. Notwithstanding anything to the contrary in this Agreement or any Ancillary Agreement, each Party acknowledges that the Charitable Seller is a public charity and agrees that the Charitable Seller is not (a) making any of the representations and warranties set forth in this Agreement or any Ancillary Agreement (including those set forth in ARTICLE 3 and ARTICLE 4), other than those set forth in Section 4.2, and, in such case, solely as to the Charitable Seller and not as to any of the other Parties or (b) agreeing to any covenants set forth in this Agreement, including those set forth in ARTICLE 6 other than Section 6.1. In no event shall Purchaser, any Principal Seller, or any Purchaser Indemnified Party be entitled to bring any claims for indemnification or pursue any other recourse, at law or in equity, from or against the Charitable Seller through the terms of this Agreement or through state, federal, or local Laws, except with respect to fraud by the Charitable Seller or a breach by the Charitable Seller of its representations and warranties set forth in Section 4.2.

ARTICLE 10
MISCELLANEOUS

Section 10.1    Seller Representative.

(a)    By the execution and delivery of this Agreement, Sellers hereby irrevocably constitute and appoint Seller Representative as the true and lawful agent and attorney-in-fact of Sellers with full powers of substitution to act in the name, place and stead of Sellers with respect to the performance on behalf of Sellers under the terms and provisions of this Agreement, as the same may be from time to time amended, and to do or refrain from doing all such further acts and things, and to execute all such documents, as Seller Representative shall deem necessary or appropriate in connection with any of the transactions contemplated under this Agreement, including the power to:

(i)    act for Sellers with respect to all indemnification matters referred to in this Agreement, including the right to compromise or settle any such claims on behalf of Sellers;

(ii)    act for Sellers with respect to all matters referred to in Section 2.4;

(iii)    amend or waive any provision of this Agreement in any manner that does not differentiate among Sellers;

(iv)    receive and receipt for any portion of the Purchase Price or any other payment due from Purchaser to Sellers pursuant to this Agreement;

(v)    receive all notices, communications, and deliveries hereunder on behalf of Sellers under this Agreement; and

(vi)    do or refrain from doing any further act or deed on behalf of Sellers which Seller Representative deems necessary or appropriate, in the sole discretion of the Seller Representative, relating to the subject matter of this Agreement as fully and completely as Sellers could do if personally present and acting and as though any reference to Sellers in this Agreement was a reference to Seller Representative.

(b)    The appointment of Seller Representative shall be deemed coupled with an interest and shall be irrevocable, and any other Person may conclusively and absolutely rely, without inquiry, upon any action of Seller Representative as the act of Sellers in all matters referred to in this Agreement. Sellers hereby ratify and confirm all that Seller Representative shall do or cause to be done by virtue of Seller Representative’s appointment as Seller Representative of Sellers. Seller Representative shall act for Sellers on all of the matters set forth in this Agreement in the manner Seller Representative believes to be in the best interest of Sellers, but Seller Representative shall not be responsible to Sellers for any Loss or damage Sellers may suffer by reason of the performance by Seller Representative of such Seller Representative’s duties under this Agreement, other than loss or damage arising from fraud or willful misconduct in the performance of Seller Representative’s duties under this Agreement.

(c)    In the event Seller Representative resigns or ceases to function in such capacity for any reason whatsoever, then the successor Seller Representative shall be the Person appointed by Peterson Partners VII, L.P.; provided, however, that if for any reason no successor has been appointed within thirty (30) days of such resignation or cessation, then any of Purchaser and/or Principal Sellers shall have the right to petition a court of competent jurisdiction for appointment of a successor Seller Representative.

(d)    Seller Representative Expense Fund Amount will be used solely to pay costs, fees and expenses incurred by the Seller Representative for the benefit of Sellers pursuant to this Agreement on or after the Closing Date, and will be paid or distributed at the direction of the Seller Representative (the “Seller Representative Expense Fund”). Seller Representative Expense Fund will be held by the Seller Representative as agent and for the benefit of the Sellers in a segregated account. Seller Representative (on behalf of Sellers) will hold these funds in trust. Promptly following sixty (60) days after the date on which the Seller Representative determines, in its reasonable sole discretion, that all matters for which the Seller Representative Expense Fund may need to be used have been resolved, Seller Representative will distribute the then-remaining balance of the Seller Representative Expense Fund (if any) by wire transfer of immediately available funds to the Sellers, based on their respective pro rata shares as set forth in the Funds Flow Memorandum. For Tax purposes, the Sellers’ Representative Expense Fund shall be treated as having been received and voluntarily set aside by the Sellers at the time of Closing.

(e)    Principal Sellers shall severally and not jointly (in accordance with their respective pro rata shares as set forth in the Funds Flow Memorandum), indemnify and hold harmless Seller Representative from and against, compensate Seller Representative for, reimburse Seller Representative for and pay any and all Losses arising out of and in connection with its activities as Seller Representative under this Agreement (the “Representative Losses”), in each case as such Representative Loss is suffered or incurred; provided that in the event it is finally adjudicated that a Representative Loss or any portion thereof was primarily caused by the gross negligence, fraud, or willful misconduct of Seller Representative, Seller Representative shall reimburse Principal Sellers the amount of such indemnified Representative Loss attributable to such gross negligence, fraud, intentional misconduct or bad faith.

(f)    Sellers agree that: (i) Purchaser shall be able to rely conclusively on the instructions and decisions of the Seller Representative or any other actions taken (or not taken) by the Seller Representative pursuant to the terms hereof, and no party hereunder shall have any cause of action against Purchaser for any action taken by Purchaser in reliance upon the instructions of the Seller Representative pursuant to the terms of this Agreement, and (ii) amounts paid to the Seller Representative by or on behalf of Purchaser in accordance with the terms of this Agreement or at the direction of the Seller Representative shall be treated as having been paid to Sellers, employees and/or executives, as applicable.

Section 10.2    Schedules. Any information disclosed pursuant to the Disclosure Schedules or any other Schedule shall be deemed to be disclosed in all sections of the Disclosure Schedules to the extent that it is readily apparent on the face of such disclosure that such disclosure is applicable to such other section notwithstanding the omission of a reference or a cross reference thereto. Neither the specification of any dollar amount or any item or matter in any provision of this Agreement nor the inclusion of any specific item or matter in the Disclosure Schedules or any Schedule hereto is intended to imply that such amount, or higher or lower amounts, or the item or matter so specified or included, or other items or matters, are or are not material, and no Party shall use the fact of the specification of any such amount or the specification or inclusion of any such item or matter in any dispute or controversy between the Parties as to whether any item or matter is or is not material for purposes of this Agreement. Neither the specification of any item or matter in any provision of this Agreement nor the inclusion of any specific item or matter in the Disclosure Schedules or any other Schedule is intended to imply that such item or matter, or other items or matters, are or are not in the Ordinary Course, and no Party shall use the fact of the specification or the inclusion of any such item or matter in any dispute or controversy between the Parties as to whether any item or matter is or is not in the Ordinary Course for purposes of this Agreement.

Section 10.3    Notices. Any notice, request, instruction or other document required or permitted to be given under this Agreement by any Party to another Party will be in writing and will be given to such Party at its address set forth in below or to such other address as the Party to whom notice is to be given may provide in a written notice to the Party giving such notice. Each such notice, request or other communication will be effective (i) if given by certified mail, seventy-two (72) hours after such communication is deposited in the mail with certified postage prepaid addressed as aforesaid, (ii) one (1) Business Day after being furnished to a nationally recognized overnight courier for next Business Day delivery, or (iii) one (1) Business Day after the date sent if sent by electronic mail or facsimile transmission, receipt confirmed in each case.

To Principal Sellers:

Peterson Partners VII, L.P., as Seller Representative
Attention: Eric Noble
2755 East Cottonwood Parkway, Suite 400
Salt Lake City, Utah 84121
Fax: 801.365.7212
Email: enoble@petersonpartners.com,

with a copy to (which will not constitute notice):

Bennett Tueller Johnson & Deere, LLC
Attention: J. Reed Rawson
3165 East Millrock Drive, Suite 500
Salt Lake City, Utah 84121
Fax: (801) 438-2050
Email: rrawson@btjd.com

To the Charitable Seller:

The Church of Jesus Christ of Latter-day Saints
Attention: Greg N. Tarbet
Donations Room 1514
50 E. North Temple
Salt Lake City, Utah 84150
Fax: None
Email: donationsinkind@churchofjesuschrist.org

with a copy to (which will not constitute notice):

Kirton & McConkie
Attention: Michael Durham
50 E. South Temple, Suite 400
Salt Lake City, Utah 84111
Fax: None
Email: mdurham@kmclaw.com

To Purchaser:

SunPower Corporation
Attention: General Counsel
51 Rio Robles
San Jose, California 95134
Fax: None
Email: legalnoticesunpower@sunpower.com

with a copy to (which will not constitute notice):

Duane Morris LLP
865 South Figueroa Street, Suite 3100
Los Angeles, California 90017
Attention: Robert W. Kadlec
Fax: (213) 403-5453
Email: RWKadlec@duanemorris.com

Section 10.4    Amendments and Waivers. This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by means of a written instrument duly executed and delivered on behalf of Purchaser and Seller Representative; provided that this Agreement may not be amended, supplemented or changed or waived in a manner that is adverse to the Charitable Seller, without the prior written consent of the Charitable Seller. No action taken pursuant to this Agreement, including any investigation by or on behalf of any Party, will be deemed to constitute a waiver by the Party taking such action of compliance with any representation, warranty, covenant or agreement contained herein. The waiver by any Party of a breach of any provision of this Agreement will not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder will operate as a waiver thereof, nor will any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 

Section 10.5    Public Announcements. Purchaser shall provide Seller Representative with a reasonable opportunity to comment on the initial press release announcing this Agreement and the transactions contemplated hereby (the “Initial Press 
Release”) prior to its release. Following the Initial Press Release, any Party may make press releases with respect to the closing of the transactions contemplated hereby; provided that any such press release shall be factually accurate, shall be limited to the information contained in the Initial Press Release and shall comply with the Confidentiality Agreement, Section 6.3 of this Agreement, and the other terms of this Agreement. Notwithstanding the foregoing, no such approval shall be necessary to the extent disclosure may be required by the Securities and Exchange Commission or the rules and regulations of The Nasdaq Stock Market; provided further that, in the event that Purchaser determines that disclosure is required pursuant to the preceding proviso, Purchaser shall use their reasonable commercial efforts to consult with Seller Representative prior to making the disclosure.

Section 10.6    Interpretation. No provision of this Agreement will be interpreted in favor of, or against, any of the Parties by reason of the extent to which any such Party or its counsel participated in the drafting of this Agreement or by reason of the extent to which any such provision is inconsistent with any prior draft of this Agreement or any provision of this Agreement.

Section 10.7    Expenses. Except as expressly set forth herein, each Party will be responsible for any costs and expenses (including attorneys’ fees) incurred by such Party in connection with the transactions contemplated hereby; provided that Purchaser shall be responsible for all filing and similar fees (if any) payable in connection with any filings or submissions under the HSR Act.

Section 10.8    Attorneys’ Fees. In the event of any litigation brought to enforce or interpret this Agreement, or arising out of its negotiation, performance, or subject matter, the Party who prevails will be entitled, in addition to any other damages or relief awarded, to recover its reasonable and documented attorneys’ fees, costs and other out-of-pocket costs incurred by such Party, including those incurred at trial, in any bankruptcy or other proceeding, on appeal, and in enforcing any judgment, as determined by the court, from the losing Party.

Section 10.9    Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors, legal representatives and permitted assigns. No Party to this Agreement may assign any of its rights or delegate any of its obligations under this Agreement, by operation of Law or otherwise, without the prior written consent of the other Party, and any such purported assignment in violation of this Agreement will be null and void provided, however, Purchaser may assign this Agreement for collateral security purposes to any lenders, potential lenders and other customary secured parties providing financing, hedging or cash management arrangements to purchaser, without the prior written consent of any other Party.

Section 10.10    No Third-Party Beneficiaries. This Agreement, the Disclosure Schedules and the Ancillary Agreements (including the schedules and exhibits hereto and thereto) are for the sole benefit of the Parties and their permitted assigns and nothing herein expressed or implied will give or be construed to give to any Person, other than the Parties and such permitted assigns, any legal or equitable rights under this Agreement, except that each Purchaser Indemnified Party and each Seller Indemnified Party will be a third party beneficiary with respect to ARTICLE 9.

Section 10.11    Specific Performance. Each of the Parties acknowledges and agrees that a violation of any of the terms of this Agreement will cause the other Parties irreparable injury for which adequate remedy at law is not available. Accordingly, it is agreed that each of the Parties will be entitled to seek specific performance, injunction, restraining Order or other equitable relief, without the posting of any bond, to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court of competent jurisdiction, in addition to any other remedy to which they may be entitled at law or equity.

Section 10.12    Governing Law. This Agreement, and all Legal Proceedings (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any Legal Proceedings based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), will be governed by and construed in accordance with the Laws of the State of Delaware without giving effect to principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of Laws of another jurisdiction.

Section 10.13    Consent to Jurisdiction. Any Legal Proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought and maintained exclusively in any state or federal court located in the State of Utah and each of the Parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such Legal Proceeding and irrevocably waives, to the full extent permitted by Law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such Legal Proceeding which is brought in any such court has been 
brought in an inconvenient forum. To the extent not prohibited by Law, process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each Party agrees that service of process on such Party as provided in Section 10.3 will be deemed effective service of process on such Party.

Section 10.14    Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which, taken together, will constitute one and the same Agreement, binding on the Parties. The signature of any Party to any counterpart hereof will be deemed a signature to, and may be appended to, any other counterpart hereof. In the event that any signature to this Agreement or any Ancillary Agreement is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file (or any other electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g. www.docusign.com), such signature will create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. Once signed, this Agreement may be delivered by facsimile or “.pdf” format, and any reproduction of this Agreement made by reliable means (e.g., photocopy, facsimile or portable document format) is considered an original.

Section 10.15    Headings. The headings in this Agreement are for convenience of reference only and will not control or affect the meaning or construction of any provisions of this Agreement.

Section 10.16    Entire Agreement. This Agreement, the Confidentiality Agreement, the Disclosure Schedules and the Ancillary Agreements (including the Schedules and Exhibits attached hereto and thereto) constitute the entire agreement among the Parties with respect to the subject matter hereto and thereto, and supersede all prior agreements and understandings, both oral and written, between the Parties with respect to the subject matter hereto and thereto.

Section 10.17    Severability. If any term or provision of this Agreement or the application of any such term or provision to any Person or circumstance is held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect, impair or invalidate any other term, provision or condition of this Agreement so long as the economic and legal substance of the transactions contemplated by this Agreement is not affected in any manner adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the extent possible.

Section 10.18    Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE CONFIDENTIALITY AGREEMENT OR BY THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

Section 10.19    No Other Representations.

(a)    NONE OF SELLERS NOR ANY OF THEIR RESPECTIVE REPRESENTATIVES, AGENTS, EMPLOYEES, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES OR EQUITY HOLDERS, HAS MADE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER RELATING TO ANY SELLER, THE COMPANY, THE BUSINESS OF THE COMPANY OR OTHERWISE IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN ARTICLE 3 OR ARTICLE 4, IN EACH CASE, AS MODIFIED BY THE DISCLOSURE SCHEDULES OR ANY OTHER CERTIFICATE OR OTHER INSTRUMENT DELIVERED BY SELLERS PURSUANT TO THIS AGREEMENT. NEITHER PURCHASER NOR ANY OF ITS REPRESENTATIVES, AGENTS, EMPLOYEES, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES OR EQUITY HOLDERS HAS MADE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER RELATING TO PURCHASER OR OTHERWISE IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, OTHER THAN THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN ARTICLE 5, IN EACH CASE, AS MODIFIED BY ANY CERTIFICATE OR INSTRUMENT DELIVERED BY PURCHASER PURSUANT TO THIS AGREEMENT.

(b)    It is understood that any cost estimates, projections or other predictions, any data, any financial information or any memoranda or offering materials or presentations, including but not limited to, any offering memorandum or similar materials made available to Purchaser or its Affiliates or their respective representatives by the Company, Sellers or their respective representatives, agents, employees, officers, directors, managers, trustees or equity holders are not and shall not be deemed to be or to include representations or warranties of the Company or Sellers, and are not and 
shall not be deemed to be relied upon by Purchaser in executing, delivering and performing this Agreement and the transactions contemplated hereby, in each case except for the representations and warranties set forth in ARTICLE 3 and ARTICLE 4, in each case as modified by the Disclosure Schedules. Except for the specific representations and warranties expressly made by Sellers in ARTICLE 3 and ARTICLE 4, in each case as modified by the Disclosure Schedules: (i) Purchaser acknowledges and agrees that Sellers are not making and have not made any representation or warranty, express or implied, at law or in equity, in respect of (A) Sellers, the Company or the business of the Company; (B) the business, assets, liabilities, operations, prospects or condition (financial or otherwise) of Sellers or the Company; (C) the nature or extent of any Liabilities of Sellers, the Company or the business of the Company; (D) the effectiveness or the success of any operations; or (E) the accuracy or completeness of any confidential information memoranda, projections, forecasts or estimates of earnings or other information (financial or otherwise) regarding Sellers, the Company or the business of the Company furnished to Purchaser or its representatives or made available to Purchaser and its representatives in any “data rooms,” “virtual data rooms,” management presentations or any other form in expectation of, or in connection with, the transactions contemplated hereby, or in respect of any other matter or thing whatsoever; and (ii) Purchaser specifically disclaims that it is relying upon or has relied upon any such other representations or warranties that may have been made by any Person, and acknowledges and agrees that Sellers have specifically disclaimed and do hereby specifically disclaim any such other representation or warranty made by any Person. Notwithstanding the foregoing, nothing in this Section 10.19 shall limit or restrict, or shall be construed or deemed to limit or restrict, or be used as a defense against, or waive or limit in any manner Purchaser’s rights or remedies in the event of fraud.

Section 10.20    Waiver of Conflicts; Privilege.

(a)    Each of the parties hereto acknowledges and agrees that Bennett Tueller Johnson & Deere, LLC (“BTJD”) has acted as counsel to Sellers in connection with the negotiation of this Agreement and consummation of the transactions contemplated hereby.

(b)    Purchaser hereby consents and agrees to, and agrees to cause the Company to consent and agree to, BTJD representing any of Sellers after the Closing with respect to disputes concerning the transactions contemplated hereby, including with respect to such disputes in which the interests of a Seller may be directly adverse to Purchaser and its Affiliates (including the Company).

(c)    In connection with the foregoing, Purchaser hereby irrevocably waives and agrees not to assert, and agrees to cause the Company to irrevocably waive and not to assert, any conflict of interest arising from or in connection with BTJD’s representation of Sellers after the Closing with respect to such disputes.

(d)    Purchaser agrees, on behalf of itself, its Affiliates and, after the Closing, on behalf of the Company, that all communications in any form or format whatsoever between or among any of BTJD, the Company, any of Sellers, or any of their respective directors, managers, officers, employees, equity holders, agents or other representatives that directly relate to the negotiation, documentation and consummation of the transactions contemplated hereby or any dispute arising under this Agreement (collectively, the “Deal Communications”) shall be deemed to be retained and owned by Sellers and shall not pass to or be claimed by Purchaser or the Company. All Deal Communications that are attorney-client privileged (the “Privileged Deal Communications”) shall remain privileged after the Closing and the privilege and the expectation of client confidence relating thereto shall belong solely to Sellers and shall not pass to or be claimed by Purchaser or the Company.

(e)    Notwithstanding the foregoing, in the event that a dispute arises between Purchaser or the Company on the one hand, and a third party other than any Seller, on the other hand, Purchaser or the Company may assert the attorney-client privilege to prevent the disclosure of the Privileged Deal Communications to such third party; provided, however, that none of Purchaser or the Company may waive such privilege without the prior written consent of Seller Representative. In the event that Purchaser or the Company is legally required by a Governmental Authority to access or obtain a copy of all or a portion of the Deal Communications, Purchaser (i) shall, to the extent legally permissible, reasonably promptly notify Seller Representative in writing (including by making specific reference to this Section 10.20), (ii) agrees that Seller Representative can seek a protective order, and (iii) agrees to use, at Principal Seller’s sole cost and expense, commercially reasonable efforts to assist therewith.

(f)    To the extent that files or other materials maintained by BTJD in relation hereto constitute property of its clients, only Sellers shall hold such property rights and BTJD shall have no duty to reveal or disclose any such files or other materials or any Deal Communications by reason of any attorney-client relationship between BTJD, on the one hand, and the Company, on the other hand.

(g)    It shall not be a breach of any provision of this Agreement if prior to the Closing, Sellers or the Company, or any of their respective directors, managers, officers, employees, agents or other representatives take any action to protect from access or remove from the premises of the Company (or any offsite back-up or other facilities) any Deal Communications, including by segregating, encrypting, copying, deleting, erasing, exporting or otherwise taking possession of any Deal Communications.

[Remainder of page intentionally left blank]

1

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized persons as of the day and year first above written.

									
		PURCHASER:
			
		SUNPOWER CORPORATION
			
			
		By:	/S/ Peter Faricy
		Name:	Peter Faricy
		Title:	Chief Executive Officer

			
			
		FALCON ACQUISITION HOLDCO, INC
			
			
		By:	 /S/ Manavendra Sial

		Name:	Manavendra Sial
		Title:	President

[Signature page to Securities Purchase Agreement]
2

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized persons as of the day and year first above written.

															
	PRINCIPAL SELLERS:		CHARITABLE SELLER:
					
	PETERSON PARTNERS VII, L.P.		THE CHURCH OF JESUS CHRIST OF
				LATTER-DAY SAINTS
	By:	Peterson Partners VII, LLC			
	Its:	General Partner			
			By:	/S/ Greg N. Tarbet
	By:	Peterson Partners, Inc.		Name:	Greg N. Tarbet
	Its:	Manager		Title:	Authorized Representative
					
	By:	/S/ Eric Noble			
		Eric Noble, Chief Financial Officer			
		and Authorized Signatory		SELLER REPRESENTATIVE:
					
				PETERSON PARTNERS VII, L.P.
	THE KEY HOLE CANYON TRUST			
				By:	Peterson Partners VII, LLC
				Its:	General Partner
	By:	/S/ Jenny Lynn Lee		
		Jenny Lynn Lee, Trustee		By:	Peterson Partners, Inc.
				Its:	Manager
	THE SKEIN TRUST			
				By:	/S/ Eric Noble
					Eric Noble, Chief Financial Officer
	By:	/S/ Michael R. Cahill			and Authorized Signatory
		Michael R. Cahill, Trustee			
					
	THE GOSLING TRUST			
					
					
	By:	/S/ Michael R. Cahill			
		Michael R. Cahill, Trustee			
					
		/S/ Benjamin Peterson			
		BENJAMIN PETERSON			
					
		/S/ Jeffrey Lee			
		JEFFREY LEE			
					
		/S/ Michael Rands			
		MICHAEL RANDS			

[Signature page to Securities Purchase Agreement]
3glto-ex43_219.htm

Exhibit 4.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GALECTO, INC.
Issuer

AND

[TRUSTEE],
Trustee

 

INDENTURE

Dated as of [●]

 

Senior Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Page

	
Article 1 DEFINITIONS
	
1

Section 1.01Definitions of Terms1

	
Article 2 ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
	
5

Section 2.01Designation and Terms of Securities5

Section 2.02Form of Securities and Trustee’s Certificate8

Section 2.03Denominations: Provisions for Payment8

Section 2.04Execution and Authentications9

Section 2.05Registration of Transfer and Exchange10

Section 2.06Temporary Securities11

Section 2.07Mutilated, Destroyed, Lost or Stolen Securities11

Section 2.08Cancellation12

Section 2.09Benefits of Indenture12

Section 2.10Authenticating Agent12

Section 2.11Global Securities13

	
Article 3 REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
	
14

Section 3.01Redemption14

Section 3.02Notice of Redemption14

Section 3.03Payment Upon Redemption15

Section 3.04Sinking Fund16

Section 3.05Satisfaction of Sinking Fund Payments with Securities16

Section 3.06Redemption of Securities for Sinking Fund16

	
Article 4 COVENANTS
	
17

Section 4.01Payment of Principal, Premium and Interest17

Section 4.02Maintenance of Office or Agency17

Section 4.03Paying Agents17

Section 4.04Appointment to Fill Vacancy in Office of Trustee18

Section 4.05Compliance with Consolidation Provisions18

	
Article 5 SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	
19

Section 5.01Company to Furnish Trustee Names and Addresses of Securityholders19

Section 5.02Preservation Of Information; Communications With Securityholders19

Section 5.03Reports by the Company19

Section 5.04Reports by the Trustee20

	
Article 6 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	
20

Section 6.01Events of Default20

Section 6.02Collection of Indebtedness and Suits for Enforcement by Trustee22

Section 6.03Application of Moneys Collected23

Section 6.04Limitation on Suits24

Section 6.05Rights and Remedies Cumulative; Delay or Omission Not Waiver24

Section 6.06Control by Securityholders25

Section 6.07Undertaking to Pay Costs25

i

 

 

	
Article 7 CONCERNING THE TRUSTEE
	
25

Section 7.01Certain Duties and Responsibilities of Trustee25

Section 7.02Certain Rights of Trustee27

Section 7.03Trustee Not Responsible for Recitals or Issuance or Securities28

Section 7.04May Hold Securities29

Section 7.05Moneys Held in Trust29

Section 7.06Compensation and Reimbursement29

Section 7.07Reliance on Officer’s Certificate30

Section 7.08Disqualification; Conflicting Interests30

Section 7.09Corporate Trustee Required; Eligibility30

Section 7.10Resignation and Removal; Appointment of Successor30

Section 7.11Acceptance of Appointment By Successor31

Section 7.12Merger, Conversion, Consolidation or Succession to Business33

Section 7.13Preferential Collection of Claims Against the Company33

Section 7.14Notice of Default33

	
Article 8 CONCERNING THE SECURITYHOLDERS
	
33

Section 8.01Evidence of Action by Securityholders33

Section 8.02Proof of Execution by Securityholders34

Section 8.03Who May be Deemed Owners34

Section 8.04Certain Securities Owned by Company Disregarded34

Section 8.05Actions Binding on Future Securityholders35

	
Article 9 SUPPLEMENTAL INDENTURES
	
35

Section 9.01Supplemental Indentures Without the Consent of Securityholders35

Section 9.02Supplemental Indentures With Consent of Securityholders36

Section 9.03Effect of Supplemental Indentures37

Section 9.04Securities Affected by Supplemental Indentures37

Section 9.05Execution of Supplemental Indentures37

	
Article 10 SUCCESSOR ENTITY
	
38

Section 10.01Company May Consolidate, Etc.38

Section 10.02Successor Entity Substituted38

	
Article 11 SATISFACTION AND DISCHARGE
	
39

Section 11.01Satisfaction and Discharge of Indenture39

Section 11.02Discharge of Obligations39

Section 11.03Deposited Moneys to be Held in Trust40

Section 11.04Payment of Moneys Held by Paying Agents40

Section 11.05Repayment to Company40

	
Article 12 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	
40

Section 12.01No Recourse40

	
Article 13 MISCELLANEOUS PROVISIONS
	
41

Section 13.01Effect on Successors and Assigns41

Section 13.02Actions by Successor41

Section 13.03Surrender of Company Powers41

Section 13.04Notices41

Section 13.05Governing Law41

Section 13.06Treatment of Securities as Debt42

Section 13.07Certificates and Opinions as to Conditions Precedent42

Section 13.08Payments on Business Days42

ii

 

Section 13.09Conflict with Trust Indenture Act42

Section 13.10Counterparts42

Section 13.11Separability43

Section 13.12Compliance Certificates43

 

 

				
	
Article 1 DEFINITIONS
	
1

	
 
	
Section 1.01
	
Definitions of Terms
	
1

	
Article 2 ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES
	
5

	
 
	
Section 2.01
	
Designation and Terms of Securities
	
5

	
 
	
Section 2.02
	
Form of Securities and Trustee’s Certificate
	
8

	
 
	
Section 2.03
	
Denominations: Provisions for Payment
	
8

	
 
	
Section 2.04
	
Execution and Authentications
	
9

	
 
	
Section 2.05
	
Registration of Transfer and Exchange
	
10

	
 
	
Section 2.06
	
Temporary Securities
	
11

	
 
	
Section 2.07
	
Mutilated, Destroyed, Lost or Stolen Securities
	
11

	
 
	
Section 2.08
	
Cancellation
	
12

	
 
	
Section 2.09
	
Benefits of Indenture
	
12

	
 
	
Section 2.10
	
Authenticating Agent
	
12

	
 
	
Section 2.11
	
Global Securities
	
13

	
Article 3 REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
	
14

	
 
	
Section 3.01
	
Redemption
	
14

	
 
	
Section 3.02
	
Notice of Redemption
	
14

	
 
	
Section 3.03
	
Payment Upon Redemption
	
15

	
 
	
Section 3.04
	
Sinking Fund
	
16

	
 
	
Section 3.05
	
Satisfaction of Sinking Fund Payments with Securities
	
16

	
 
	
Section 3.06
	
Redemption of Securities for Sinking Fund
	
16

	
Article 4 COVENANTS
	
17

	
 
	
Section 4.01
	
Payment of Principal, Premium and Interest
	
17

	
 
	
Section 4.02
	
Maintenance of Office or Agency
	
17

	
 
	
Section 4.03
	
Paying Agents
	
17

	
 
	
Section 4.04
	
Appointment to Fill Vacancy in Office of Trustee
	
18

	
 
	
Section 4.05
	
Compliance with Consolidation Provisions
	
18

	
Article 5 SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	
19

	
 
	
Section 5.01
	
Company to Furnish Trustee Names and Addresses of Securityholders
	
19

	
 
	
Section 5.02
	
Preservation Of Information; Communications With Securityholders
	
19

	
 
	
Section 5.03
	
Reports by the Company
	
19

	
 
	
Section 5.04
	
Reports by the Trustee
	
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Article 6 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT
	
20

	
 
	
Section 6.01
	
Events of Default
	
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Section 6.02
	
Collection of Indebtedness and Suits for Enforcement by Trustee
	
22

	
 
	
Section 6.03
	
Application of Moneys Collected
	
23

	
 
	
Section 6.04
	
Limitation on Suits
	
23

	
 
	
Section 6.05
	
Rights and Remedies Cumulative; Delay or Omission Not Waiver
	
24

	
 
	
Section 6.06
	
Control by Securityholders
	
24

	
 
	
Section 6.07
	
Undertaking to Pay Costs
	
25

	
Article 7 CONCERNING THE TRUSTEE
	
25

	
 
	
Section 7.01
	
Certain Duties and Responsibilities of Trustee
	
25

iii

 

				
	
 
	
Section 7.02
	
Certain Rights of Trustee
	
26

	
 
	
Section 7.03
	
Trustee Not Responsible for Recitals or Issuance or Securities
	
28

	
 
	
Section 7.04
	
May Hold Securities
	
28

	
 
	
Section 7.05
	
Moneys Held in Trust
	
28

	
 
	
Section 7.06
	
Compensation and Reimbursement
	
29

	
 
	
Section 7.07
	
Reliance on Officer’s Certificate
	
29

	
 
	
Section 7.08
	
Disqualification; Conflicting Interests
	
30

	
 
	
Section 7.09
	
Corporate Trustee Required; Eligibility
	
30

	
 
	
Section 7.10
	
Resignation and Removal; Appointment of Successor
	
30

	
 
	
Section 7.11
	
Acceptance of Appointment By Successor
	
31

	
 
	
Section 7.12
	
Merger, Conversion, Consolidation or Succession to Business
	
32

	
 
	
Section 7.13
	
Preferential Collection of Claims Against the Company
	
33

	
 
	
Section 7.14
	
Notice of Default
	
33

	
Article 8 CONCERNING THE SECURITYHOLDERS
	
33

	
 
	
Section 8.01
	
Evidence of Action by Securityholders
	
33

	
 
	
Section 8.02
	
Proof of Execution by Securityholders
	
34

	
 
	
Section 8.03
	
Who May be Deemed Owners
	
34

	
 
	
Section 8.04
	
Certain Securities Owned by Company Disregarded
	
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Section 8.05
	
Actions Binding on Future Securityholders
	
35

	
Article 9 SUPPLEMENTAL INDENTURES
	
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Section 9.01
	
Supplemental Indentures Without the Consent of Securityholders
	
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Section 9.02
	
Supplemental Indentures With Consent of Securityholders
	
36

	
 
	
Section 9.03
	
Effect of Supplemental Indentures
	
36

	
 
	
Section 9.04
	
Securities Affected by Supplemental Indentures
	
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Section 9.05
	
Execution of Supplemental Indentures
	
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Article 10 SUCCESSOR ENTITY
	
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Section 10.01
	
Company May Consolidate, Etc.
	
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Section 10.02
	
Successor Entity Substituted
	
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Article 11 SATISFACTION AND DISCHARGE
	
39

	
 
	
Section 11.01
	
Satisfaction and Discharge of Indenture
	
39

	
 
	
Section 11.02
	
Discharge of Obligations
	
39

	
 
	
Section 11.03
	
Deposited Moneys to be Held in Trust
	
39

	
 
	
Section 11.04
	
Payment of Moneys Held by Paying Agents
	
40

	
 
	
Section 11.05
	
Repayment to Company
	
40

	
Article 12 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	
40

	
 
	
Section 12.01
	
No Recourse
	
40

	
Article 13 MISCELLANEOUS PROVISIONS
	
41

	
 
	
Section 13.01
	
Effect on Successors and Assigns
	
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Section 13.02
	
Actions by Successor
	
41

	
 
	
Section 13.03
	
Surrender of Company Powers
	
41

	
 
	
Section 13.04
	
Notices
	
41

	
 
	
Section 13.05
	
Governing Law
	
41

	
 
	
Section 13.06
	
Treatment of Securities as Debt
	
41

	
 
	
Section 13.07
	
Certificates and Opinions as to Conditions Precedent
	
42

	
 
	
Section 13.08
	
Payments on Business Days
	
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Section 13.09
	
Conflict with Trust Indenture Act
	
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Section 13.10
	
Counterparts
	
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Section 13.11
	
Separability
	
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Section 13.12
	
Compliance Certificates
	
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iv

 

 

	
(1)
	
This Table of Contents does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

 

v

 

 

INDENTURE

INDENTURE, dated as of [●], among GALECTO, INC., a corporation existing under the laws of the State of Delaware (the “Company”), and [TRUSTEE], as trustee (the “Trustee”):

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities (hereinafter referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate of the Trustee;

WHEREAS, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and

WHEREAS, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

NOW, THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities:

Article 1

DEFINITIONS

Section 1.01Definitions of Terms.

The terms defined in this Section (except as in this Indenture or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein or any indenture supplemental hereto otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

“Authenticating Agent” means an authenticating agent with respect to all or any of the series of Securities appointed by the Trustee pursuant to Section 2.10.

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

“Board of Directors” means the Board of Directors (or the functional equivalent thereof) of the Company or any duly authorized committee of such Board.

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification.

 

 

“Business Day” means, with respect to any series of Securities, any day other than a day on which federal or state banking institutions in the Borough of Manhattan, the City of New York, or in the city of the Corporate Trust Office of the Trustee, are authorized or obligated by law, executive order or regulation to close.

“Certificate” means a certificate signed by any Officer. The Certificate need not comply with the provisions of Section 13.07.

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

“Company” means Galecto, Inc., corporation duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article Ten, shall also include its successors and assigns.

“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at ______________.

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

“Defaulted Interest” has the meaning set forth in Section 2.03.

“Depositary” means, with respect to Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or 2.11.

“Event of Default” means, with respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein designated.

“Exchange Act” means the United States Securities and Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

“Global Security” means a Security issued to evidence all or a part of any series of Securities which is executed by the Company and authenticated and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.

“Governmental Obligations” means securities that are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (b) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are not callable or redeemable at the option of the issuer thereof at any time prior to the stated maturity of the Securities, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Governmental Obligation or a specific 

2

 

payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

“herein”, “hereof” and “hereunder”, and other words of similar import, refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

“Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof and shall include the terms of particular series of Securities established as contemplated by Section 2.01.

“Interest Payment Date”, when used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment of interest with respect to Securities of that series is due and payable.

“Officer” means, with respect to the Company, the chairman of the Board of Directors, a chief executive officer, a president, a chief financial officer, a chief operating officer, any executive vice president, any senior vice president, any vice president, the treasurer or any assistant treasurer, the controller or any assistant controller or the secretary or any assistant secretary.

“Officer’s Certificate” means a certificate signed by any Officer. Each such certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

“Opinion of Counsel” means an opinion in writing subject to customary exceptions of legal counsel, who may be an employee of or counsel for the Company, that is delivered to the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

“Outstanding”, when used with reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article Three, or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to the terms of Section 2.07.

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“Person” means any individual, corporation, partnership, joint venture, joint-stock company, limited liability company, association, trust, unincorporated organization, any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

“Responsible Officer” when used with respect to the Trustee means any officer of the Trustee assigned by the Trustee to administer its corporate trust matters with respect to this Indenture (which, for the avoidance of doubt, includes without limitation any supplemental indenture hereto).

“Securities” has the meaning stated in the first recital of this Indenture and more particularly means any Securities authenticated and delivered under this Indenture.

“Securityholder”, “holder of Securities”, “registered holder”, or other similar term, means the Person or Persons in whose name or names a particular Security is registered on the Security Register kept for that purpose in accordance with the terms of this Indenture.

“Security Register” and “Security Registrar” shall have the meanings as set forth in Section 2.05.

“Subsidiary” means, with respect to any Person:

	
(1)
	
any corporation or company a majority of whose capital stock with voting power, under ordinary circumstances, to elect directors is, at the date of determination, directly or indirectly, owned by such Person (a “subsidiary”), by one or more subsidiaries of such Person or by such Person and one or more subsidiaries of such Person;

	
(2)
	
a partnership in which such Person or a subsidiary of such Person is, at the date of determination, a general partner of such partnership; or

	
(3)
	
any partnership, limited liability company or other Person in which such Person, a subsidiary of such Person or such Person and one or more subsidiaries of such Person, directly or indirectly, at the date of determination, have (x) at least a majority ownership interest or (y) the power to elect or appoint or direct the election or appointment of the managing partner or member of such Person or, if applicable, a majority of the directors or other governing body of such Person.

“Trustee” means                     , and, subject to the provisions of Article Seven, shall also include its successors and assigns, and, if at any time there is more than one Person acting in such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that series.

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

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Article 2

ISSUE, DESCRIPTION, TERMS, EXECUTION,
REGISTRATION AND EXCHANGE OF SECURITIES

Section 2.01Designation and Terms of Securities.

(1)The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution or pursuant to one or more indentures supplemental hereto. Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental hereto:

(a)the title of the Securities of the series (which shall distinguish the Securities of that series from all other Securities);

(b)any limit upon the aggregate principal amount of the Securities of that series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of that series);

(c)the date or dates on which the principal of the Securities of the series is payable;

(d)if the price (expressed as a percentage of the aggregate principal amount thereof) at which such Securities will be issued is a price other than the principal amount thereof, the portion of the principal amount thereof payable upon declaration of acceleration of the maturity thereof, or if applicable, the portion of the principal amount of such Securities that is convertible into another security or the method by which any such portion shall be determined;

(e)the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or rates, if any;

(f)the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the manner of determination of such Interest Payment Dates, the place(s) of payment, and the record date for the determination of holders to whom interest is payable on any such Interest Payment Dates or the manner of determination of such record dates;

(g)the right, if any, to extend the interest payment periods and the duration of such extension;

(h)the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the series may be redeemed, converted or exchanged, in whole or in part;

5

 

(i)the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund, mandatory redemption, or analogous provisions (including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder thereof and the period or periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

(j)the form of the Securities of the series including the form of the Certificate of Authentication for such series;

(k)if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which the Securities of the series shall be issuable;

(l)any and all other terms (including terms, to the extent applicable, relating to any auction or remarketing of the Securities of that series and any security for the obligations of the Company with respect to such Securities) with respect to such series (which terms shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture) including any terms which may be required by or advisable under United States laws or regulations or advisable in connection with the marketing of Securities of that series;

(m)whether the Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities; the terms and conditions, if any, upon which such Global Security or Securities may be exchanged in whole or in part for other individual Securities; and the Depositary for such Global Security or Securities;

(n)whether the Securities will be convertible into or exchangeable for shares of common stock, preferred stock or other securities of the Company or any other Person and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable, including the conversion or exchange price, as applicable, or how it will be calculated and may be adjusted, any mandatory or optional (at the Company’s option or the holders’ option) conversion or exchange features, and the applicable conversion or exchange period;

(o)if other than the full principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01;

(p)any additional or alternative events of default;

(q)additional or alternative covenants (which may include, among other restrictions, restrictions on the Company’s ability or the ability of the Company’s Subsidiaries to: incur additional indebtedness; issue additional securities; create liens; pay dividends or make distributions in respect of the capital stock of the Company or the Company’s Subsidiaries; redeem capital stock; place restrictions on the Company’s Subsidiaries’ ability to pay dividends, make distributions or transfer assets; make investments or other restricted payments; sell or otherwise dispose of assets; enter into sale-leaseback transactions; engage in transactions with stockholders or affiliates; issue or sell stock of the Company’s Subsidiaries; or effect a consolidation or merger) or 

6

 

financial covenants (which may include, among other financial covenants, financial covenants that require the Company and its Subsidiaries to maintain specified interest coverage, fixed charge, cash flow-based, asset-based or other financial ratios) provided for with respect to the Securities of the series;

(r)the currency or currencies, including composite currencies, in which payment of the principal of (and premium, if any) and interest, if any, on such Securities shall be payable (if other than the currency of the United States of America), which unless otherwise specified shall be the currency of the United States of America as at the time of payment is legal tender for payment of public or private debts;

(s)if the principal of (and premium, if any) or interest, if any, on such Securities is to be payable, at the election of the Company or any Holder thereof, in a coin or currency other than that in which such Securities are stated to be payable, then the period or periods within which, and the terms and conditions upon which, such election may be made;

(t)whether interest will be payable in cash or additional Securities at the Company’s or the Securityholders’ option and the terms and conditions upon which the election may be made;

(u)the terms and conditions, if any, upon which the Company shall pay amounts in addition to the stated interest, premium, if any and principal amounts of the Securities of the series to any Securityholder that is not a “United States person” for federal tax purposes;

(v)additional or alternative provisions, if any, related to defeasance and discharge of the offered Securities;

(w)the applicability of any guarantees;

(x)any restrictions on transfer, sale or assignment of the Securities of the series; and

(y)any other terms of the series.

All Securities of any one series shall be substantially identical except as may otherwise be provided in or pursuant to any such Board Resolution or in any indentures supplemental hereto.

If any of the terms of the series are established by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the secretary or an assistant secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate of the Company setting forth the terms of the series.

Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such interest may be payable and with different redemption dates.

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Section 2.02Form of Securities and Trustee’s Certificate.

The Securities of any series and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one or more indentures supplemental hereto or as provided in a Board Resolution, and set forth in an Officer’s Certificate, and they may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which Securities of that series may be listed, or to conform to usage.

Section 2.03Denominations: Provisions for Payment.

The Securities shall be issuable as registered Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section 2.01(1)(j). The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect to that series. Subject to Section 2.01(1)(p), the principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose. Each Security shall be dated the date of its authentication. Interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.

The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment. In the event that any Security of a particular series or portion thereof is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security as provided in Section 3.03.

Any interest on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

(1)The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such 

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Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his or her address as it appears in the Security Register (as hereinafter defined), not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered on such special record date.

(2)The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities and any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first day of a month, or the first day of the month in which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether or not such date is a Business Day.

Subject to the foregoing provisions of this Section, each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.

Section 2.04Execution and Authentications.

The Securities shall be signed on behalf of the Company by one of its Officers. Signatures may be in the form of a manual or facsimile signature.

The Company may use the facsimile signature of any Person who shall have been an Officer, notwithstanding the fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to be such an officer of the Company. The Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication by the Trustee.

A Security shall not be valid until authenticated manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the 

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Company for the authentication and delivery of such Securities, signed by an Officer, and the Trustee in accordance with such written order shall authenticate and deliver such Securities.

In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, if requested, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof have been established in conformity with the provisions of this Indenture.

The Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.

Section 2.05Registration of Transfer and Exchange.

(1)Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose, for other Securities of such series of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Securities so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

(2)The Company shall keep, or cause to be kept, at its office or agency designated for such purpose a register or registers (herein referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution (the “Security Registrar”).

Upon surrender for transfer of any Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series as the Security presented for a like aggregate principal amount.

All Securities presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar, duly executed by the registered holder or by such holder’s duly authorized attorney in writing.

(3)Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, no service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(2) and Section 9.04 not involving any transfer.

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(4)The Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption, other than the unredeemed portion of any such Securities being redeemed in part. The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.

The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among depositary participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

Section 2.06Temporary Securities.

Pending the preparation of definitive Securities of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed or typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the holders), at the office or agency of the Company designated for the purpose, and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company. Until so exchanged, the temporary Securities of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

Section 2.07Mutilated, Destroyed, Lost or Stolen Securities.

In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may authenticate any 

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such substituted Security and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

Every replacement Security issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

Section 2.08Cancellation.

All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. On request of the Company at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee. In the absence of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.

Section 2.09Benefits of Indenture.

Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Securities.

Section 2.10Authenticating Agent.

So long as any of the Securities of any series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the 

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right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by federal or state authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

Section 2.11Global Securities.

(1)If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor Depositary.”

(2)Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by the Company or to a nominee of such successor Depositary.

(3)If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, or if an Event of Default has occurred and is continuing and the Company has received a request from the Depositary or from the Trustee, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.04, the Trustee will authenticate and deliver the 

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Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and, subject to Section 2.04, the Trustee, upon receipt of an Officer’s Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(3) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.

Article 3

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

Section 3.01Redemption.

The Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 hereof.

Section 3.02Notice of Redemption.

(1)In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series in accordance with any right the Company reserved for itself to do so pursuant to Section 2.01 hereof, the Company shall, or shall cause the Trustee to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such holders at their last addresses as they shall appear upon the Security Register, unless a shorter period is specified in the Securities to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Security of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with any such restriction.

Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company, upon presentation and surrender of such Securities, that interest 

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accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is from a sinking fund, if such is the case. If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in part shall specify the particular Securities to be so redeemed.

In case any Security is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.

(2)If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’ notice (unless a shorter notice shall be satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed, and thereupon the Trustee shall select, by lot or in such other manner as it shall deem appropriate and fair in its discretion and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The Company may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by an Officer, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such paying agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this Section.

Section 3.03Payment Upon Redemption.

(1)If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an interest payment date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.03).

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(2)Upon presentation of any Security of such series that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Security is presented shall deliver to the holder thereof, at the expense of the Company, a new Security of the same series of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented.

Section 3.04Sinking Fund.

The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 for Securities of such series.

The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment”. If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.

Section 3.05Satisfaction of Sinking Fund Payments with Securities.

The Company (i) may deliver Outstanding Securities of a series and (ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

Section 3.06Redemption of Securities for Sinking Fund.

Not less than 45 days prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such credit and will, together with such Officer’s Certificate, deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.

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Article 4

COVENANTS

Section 4.01Payment of Principal, Premium and Interest.

The Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place and in the manner provided herein and established with respect to such Securities. Payments of principal on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check drawn on and mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions to the Trustee no later than 15 days prior to the relevant payment date. Payments of interest on the Securities may be made at the time provided herein and established with respect to such Securities by U.S. dollar check mailed to the address of the Securityholder entitled thereto as such address shall appear in the Security Register, or U.S. dollar wire transfer to, a U.S. dollar account if such Securityholder shall have furnished wire instructions in writing to the Security Registrar and the Trustee no later than 15 days prior to the relevant payment date.

Section 4.02Maintenance of Office or Agency.

So long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency with respect to each such series and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Securities of that series may be presented for payment, (ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by any officer authorized to sign an Officer’s Certificate and delivered to the Trustee, designate some other office or agency for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices and demands. The Company initially appoints the Corporate Trust Office of the Trustee as its paying agent with respect to the Securities.

Section 4.03Paying Agents.

(1)If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section:

(a)that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Securities of that series (whether such sums have been paid to it by the Company or by any other obligor of such Securities) in trust for the benefit of the Persons entitled thereto;

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(b)that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Securities) to make any payment of the principal of (and premium, if any) or interest on the Securities of that series when the same shall be due and payable;

(c)that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

(d)that it will perform all other duties of paying agent as set forth in this Indenture.

(2)If the Company shall act as its own paying agent with respect to any series of the Securities, it will on or before each due date of the principal of (and premium, if any) or interest on Securities of that series, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due on Securities of that series until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Securities) to take such action. Whenever the Company shall have one or more paying agents for any series of Securities, it will, prior to each due date of the principal of (and premium, if any) or interest on any Securities of that series, deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

(3)Notwithstanding anything in this Section to the contrary, (i) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and (ii) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by the Company or any paying agent to the Trustee, the Company or such paying agent shall be released from all further liability with respect to such money.

Section 4.04Appointment to Fill Vacancy in Office of Trustee.

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

Section 4.05Compliance with Consolidation Provisions.

The Company will not, while any of the Securities remain Outstanding, consolidate with or merge into any other Person, in either case where the Company is not the survivor of such transaction, or sell or convey all or substantially all of its property to any other Person unless the provisions of Article Ten hereof are complied with.

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Article 5

SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

Section 5.01Company to Furnish Trustee Names and Addresses of Securityholders.

The Company will furnish or cause to be furnished to the Trustee (a) within 15 days after each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.

Section 5.02Preservation Of Information; Communications With Securityholders.

(1)The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).

(2)The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

(3)Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect to their rights under this Indenture or under the Securities, and, in connection with any such communications, the Trustee shall satisfy its obligations under Section 312(b) of the Trust Indenture Act in accordance with the provisions of Section 312(b) of the Trust Indenture Act.

Section 5.03Reports by the Company.

(1)The Company covenants and agrees to provide (which delivery may be via electronic mail) to the Trustee within 30 days, after the Company files the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company is required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; provided, however, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the Commission; and provided further, that so long as such filings by the Company are available on the Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR), or Interactive Data Electronic Applications (IDEA), or any successor system, such filings shall be deemed to have been filed with the Trustee for purposes hereof without any further action required by the Company; provided that an electronic link to such filing, together with an electronic notice of such filing have been sent to the Trustee. For the avoidance of doubt, a failure by the Company to file annual reports, information and other reports with the SEC within the time period prescribed thereof by the Commission shall not be deemed a breach of this Section 5.03.

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(2)Delivery of reports, information and documents to the Trustee under Section 5.03 is for informational purposes only and the information and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein, or determinable from information contained therein including the Company’s compliance with any of their covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

Section 5.04Reports by the Trustee.

(1)If required by Section 313(a) of the Trust Indenture Act, the Trustee, within sixty (60) days after each May 1, shall transmit by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register, a brief report dated as of such May 1, which complies with Section 313(a) of the Trust Indenture Act.

(2)The Trustee shall comply with Section 313(b) and 313(c) of the Trust Indenture Act.

(3)A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company, with each securities exchange upon which any Securities are listed (if so listed) and also with the Commission. The Company agrees to notify the Trustee when any Securities become listed on any securities exchange.

Article 6

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

Section 6.01Events of Default.

(1)Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or more of the following events that has occurred and is continuing:

(a)the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when the same shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension of an interest payment period by the Company in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;

(b)the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

(c)the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement that has been expressly included in this 

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Indenture solely for the benefit of one or more series of Securities other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount of the Securities of that series at the time Outstanding;

(d)the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or

(e)a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.

(2)In each and every such case (other than an Event of Default specified in clause (4) or clause (5) above), unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest on all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable. If an Event of Default specified in clause (4) or clause (5) above occurs, the principal of and accrued and unpaid interest on all the Securities of that series shall automatically be immediately due and payable without any declaration or other act on the part of the Trustee or the holders of the Securities.

(3)At any time after the principal of (and premium, if any, on) and accrued and unpaid interest on the Securities of that series shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal of (and premium, if any, on) any and all Securities of that series that shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Securities of that series to the date of such payment or deposit) and the amount payable to the Trustee under Section 7.06, and (ii) any and all Events of Default under the Indenture with respect to such series, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid interest on Securities of that series that shall not have become due by their terms, shall have been remedied or waived as provided in Section 6.06.

No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.

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(4)In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

Section 6.02Collection of Indebtedness and Suits for Enforcement by Trustee.

(1)The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities of a series, or in any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 90 days, or (ii) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or otherwise then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.

(2)If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Securities of that series and collect the moneys adjudged or decreed to be payable in the manner provided by law or equity out of the property of the Company or other obligor upon the Securities of that series, wherever situated.

(3)In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under the Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount due it under Section 7.06.

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(4)All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.

In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of that series or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding.

Section 6.03Application of Moneys Collected.

Any moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal (or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:

FIRST: To the payment of reasonable costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;

SECOND: To the payment of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively; and

THIRD: To the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto.

Section 6.04Limitation on Suits.

No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture or any Security to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, any Security or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided; (ii) the holders of not less than 25% in aggregate principal amount of the Securities of 

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such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby; (iv) the Trustee for 90 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding and (v) during such 90 day period, the holders of a majority in principal amount of the Securities of that series do not give the Trustee a direction inconsistent with the request.

Notwithstanding anything contained herein to the contrary or any other provisions of this Indenture, the right of any holder of any Security to receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

Section 6.05Rights and Remedies Cumulative; Delay or Omission Not Waiver.

(1)Except as otherwise provided in Section 2.07, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.

(2)No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.

Section 6.06Control by Securityholders.

The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.04, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such series; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture or subject the Trustee in its sole discretion to personal liability. Subject to the 

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provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or officers of the Trustee, determine that the proceeding so directed, subject to the Trustee’s duties under the Trust Indenture Act, would involve the Trustee in personal liability or might be unduly prejudicial to the Securityholders not involved in the proceeding. The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding affected thereby, determined in accordance with Section 8.04, may on behalf of the holders of all of the Securities of such series waive any past default in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(3)). Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

Section 6.07Undertaking to Pay Costs.

All parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.

Article 7

CONCERNING THE TRUSTEE

Section 7.01Certain Duties and Responsibilities of Trustee.

(1)The Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

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(2)No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

(a)prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such Events of Default with respect to that series that may have occurred:

(A)the duties and obligations of the Trustee shall with respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

(B)in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

(b)the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

(c)the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Securities of that series; and

(d)none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

Section 7.02Certain Rights of Trustee.

Except as otherwise provided in Section 7.01:

(1)The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

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(2)Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by any authorized officer of the Company (unless other evidence in respect thereof is specifically prescribed herein);

(3)The Trustee may consult with counsel and the written advice of such counsel or, if requested, any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

(4)The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default with respect to a series of the Securities (that has not been cured or waived), to exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs;

(5)The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

(6)The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Securities of the particular series affected thereby (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

(7)The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder;

(8)In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances;

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(9)In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and

(10)The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods; provided, however, that (a) the party providing such written instructions, subsequent to such transmission of written instructions, shall provide the originally executed instructions or directions to the Trustee in a timely manner, and (b) such originally executed instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions. If the party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default until the Trustee shall have received written notification in the manner set forth in this Indenture or a Responsible Officer of the Trustee shall have obtained actual knowledge.

Section 7.03Trustee Not Responsible for Recitals or Issuance or Securities.

(1)The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.

(2)The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.

The Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the Trustee.

Section 7.04May Hold Securities.

The Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.

Section 7.05Moneys Held in Trust.

Subject to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were 

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received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

Section 7.06Compensation and Reimbursement.

(1)The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as the Company and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence or bad faith and except as the Company and Trustee may from time to time agree in writing. The Company also covenants to indemnify the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of this trust, including the reasonable costs and expenses of defending itself against any claim of liability in the premises.

(2)The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Securities.

(3)To ensure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all funds or property held or collected by the Trustee, except that held in trust to pay principal of or interest on particular Securities. When the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 6.01(1)(d) or (1)(e), the expenses (including the reasonable fees and expenses of its counsel) and the compensation for services in connection therewith are to constitute expenses of administration under any bankruptcy law. The provisions of this Section 7.06 shall survive the termination of this Indenture and the resignation or removal of the Trustee.

Section 7.07Reliance on Officer’s Certificate.

Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it reasonably necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

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Section 7.08Disqualification; Conflicting Interests.

If the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

Section 7.09Corporate Trustee Required; Eligibility.

There shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any state or territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least fifty million U.S. dollars ($50,000,000), and subject to supervision or examination by federal, state, territorial, or District of Columbia authority.

If such corporation or other Person publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation or other Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.

Section 7.10Resignation and Removal; Appointment of Successor.

(1)The Trustee or any successor hereafter appointed may at any time resign with respect to the Securities of one or more series by giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of such series, as their names and addresses appear upon the Security Register. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee with respect to Securities of such series by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

(2)In case at any time any one of the following shall occur:

(a)the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or

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(b)the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Company or by any such Securityholder; or

(c)the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation;

then, in any such case, the Company may remove the Trustee with respect to all Securities and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or any Securityholder who has been a bona fide holder of a Security or Securities for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

(3)The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company.

(4)Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.

(5)Any successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.

Section 7.11Acceptance of Appointment By Successor.

(1)In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.

(2)In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (i) shall contain such provisions as shall be necessary or desirable to 

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transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates, (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible for any act or failure to act on the part of any other Trustee hereunder; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall with respect to the Securities of that or those series to which the appointment of such successor trustee relates have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.

(3)Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

(4)No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article.

(5)Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail, first class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

Section 7.12Merger, Conversion, Consolidation or Succession to Business.

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Trustee, including the administration of the trust created by this Indenture, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. In case any Securities shall have been 

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authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.

Section 7.13Preferential Collection of Claims Against the Company.

The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

Section 7.14Notice of Default.

If any Event of Default occurs and is continuing and if such Event of Default is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act notice of the Event of Default within the earlier of 90 days after it occurs and 30 days after it is known to a Responsible Officer of the Trustee or written notice of it is received by the Trustee, unless such Event of Default has been cured; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest on any Security, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Securityholders.

Article 8

CONCERNING THE SECURITYHOLDERS

Section 8.01Evidence of Action by Securityholders.

Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in person or by agent or proxy appointed in writing.

If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by an Officer’s Certificate, fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the record date; provided, 

33

 

however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

Section 8.02Proof of Execution by Securityholders.

Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:

(1)The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

(2)The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar thereof.

The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

Section 8.03Who May be Deemed Owners.

Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security (whether or not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.

Section 8.04Certain Securities Owned by Company Disregarded.

In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent or waiver under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

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Section 8.05Actions Binding on Future Securityholders.

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.

Article 9

SUPPLEMENTAL INDENTURES

Section 9.01Supplemental Indentures Without the Consent of Securityholders.

In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders, for one or more of the following purposes:

(1)to cure any ambiguity, defect, or inconsistency herein or in the Securities of any series;

(2)to comply with Article Ten;

(3)to provide for uncertificated Securities in addition to or in place of certificated Securities;

(4)to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit of such series), to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company;

(5)to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth;

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(6)to make any change that does not adversely affect the rights of any Securityholder in any material respect;

(7)to provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities;

(8)to evidence and provide for the acceptance of appointment hereunder by a successor trustee; or

(9)to comply with any requirements of the Commission or any successor in connection with the qualification of this Indenture under the Trust Indenture Act.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

Section 9.02Supplemental Indentures With Consent of Securityholders.

With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected by such supplemental indenture or indentures at the time Outstanding, the Company, when authorized by a Board Resolution, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (a) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof or (b) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture.

It shall not be necessary for the consent of the Securityholders of any series affected thereby under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

Section 9.03Effect of Supplemental Indentures.

Upon the execution of any supplemental indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of 

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rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

Section 9.04Securities Affected by Supplemental Indentures.

Securities of any series affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any securities exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities of that series then Outstanding.

Section 9.05Execution of Supplemental Indentures.

Upon the request of the Company, accompanied by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.01, shall receive an Officer’s Certificate or an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by the terms of this Article and that all conditions precedent to the execution of the supplemental indenture have been complied with; provided, however, that such Officer’s Certificate or Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall (or shall direct the Trustee to) transmit by mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby as their names and addresses appear upon the Security Register. Any failure of the Company to mail, or cause the mailing of, such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

Article 10

SUCCESSOR ENTITY

Section 10.01Company May Consolidate, Etc..

Nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or 

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successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however, (a) the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property and (b) in the event that the Securities of any series then Outstanding are convertible into or exchangeable for shares of common stock or other securities of the Company, such entity shall, by such supplemental indenture, make provision so that the Securityholders of Securities of that series shall thereafter be entitled to receive upon conversion or exchange of such Securities the number of securities or property to which a holder of the number of shares of common stock or other securities of the Company deliverable upon conversion or exchange of those Securities would have been entitled had such conversion or exchange occurred immediately prior to such consolidation, merger, sale, conveyance, transfer or other disposition.

Section 10.02Successor Entity Substituted.

(1)In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the obligations set forth under Section 10.01 on all of the Securities of all series Outstanding, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

(2)In case of any such consolidation, merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

(3)Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

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Article 11

SATISFACTION AND DISCHARGE

Section 11.01Satisfaction and Discharge of Indenture.

If at any time: (a) the Company shall have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated and not delivered to the Trustee for cancellation (other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07 and Securities for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds the entire amount in moneys or Governmental Obligations or a combination thereof, sufficient in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.

Section 11.02Discharge of Obligations.

If at any time all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations, as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.06, 7.10 and 11.05 hereof that shall survive until such Securities shall mature and be paid.

Thereafter, Sections 7.06 and 11.05 shall survive.

Section 11.03Deposited Moneys to be Held in Trust.

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All moneys or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

Section 11.04Payment of Moneys Held by Paying Agents.

In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.

Section 11.05Repayment to Company.

Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for at least two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned or unclaimed property law, shall be repaid to the Company on May 31 of each year or upon the Company’s request or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as a general creditor, look only to the Company for the payment thereof.

Article 12

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 12.01No Recourse.

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such, of the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, 

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covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.

Article 13

MISCELLANEOUS PROVISIONS

Section 13.01Effect on Successors and Assigns.

All the covenants, stipulations, promises and agreements in this Indenture made by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.

Section 13.02Actions by Successor.

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.

Section 13.03Surrender of Company Powers.

The Company by instrument in writing executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

Section 13.04Notices.

Except as otherwise expressly provided herein, any notice, request or demand that by any provision of this Indenture is required or permitted to be given, made or served by the Trustee or by the holders of Securities or by any other Person pursuant to this Indenture to or on the Company may be given or served by being deposited in first class mail, postage prepaid, addressed (until another address is filed in writing by the Company with the Trustee), as follows:                     . Any notice, election, request or demand by the Company or any Securityholder or by any other Person pursuant to this Indenture to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

Section 13.05Governing Law.

This Indenture and each Security shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State, except to the extent that the Trust Indenture Act is applicable.

Section 13.06Treatment of Securities as Debt.

It is intended that the Securities will be treated as indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture shall be interpreted to further this intention.

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Section 13.07Certificates and Opinions as to Conditions Precedent.

(1)Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent provided for in this Indenture (other than the certificate to be delivered pursuant to Section 13.12) relating to the proposed action have been complied with and, if requested, an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

(2)Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture shall include (i) a statement that the Person making such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (iii) a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

Section 13.08Payments on Business Days.

Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and set forth in an Officer’s Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.

Section 13.09Conflict with Trust Indenture Act.

If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

Section 13.10Counterparts.

This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

Section 13.11Separability.

In case any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

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Section 13.12Compliance Certificates.

The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year during which any Securities of any series were outstanding, an officer’s certificate stating whether or not the signers know of any Event of Default that occurred during such fiscal year. Such certificate shall contain a certification from the principal executive officer, principal financial officer or principal accounting officer of the Company that a review has been conducted of the activities of the Company and the Company’s performance under this Indenture and that the Company has complied with all conditions and covenants under this Indenture. For purposes of this Section 13.12, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture. If the officer of the Company signing such certificate has knowledge of such an Event of Default, the certificate shall describe any such Event of Default and its status.

 

 

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

GALECTO, INC.

 

		
	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

[TRUSTEE], as Trustee

 

		
	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

 

 

 

 

CROSS-REFERENCE TABLE (1)

 

	
Section of Trust Indenture Act of 1939, as Amended
	
Section of Indenture

	
310(a)
	
7.09

	
310(b)
	
7.08

	
 
	
7.10

	
310(c)
	
Inapplicable

	
311(a)
	
7.13

	
311(b)
	
7.13

	
311(c)
	
Inapplicable

	
312(a)
	
5.01

	
 
	
5.02(1)

	
312(b)
	
5.02(3)

	
312(c)
	
5.02(3)

	
313(a)
	
5.04(1)

	
313(b)
	
5.04(2)

	
313(c)
	
5.04(1)

	
 
	
5.04(2)

	
313(d)
	
5.04(3)

	
314(a)
	
5.03

	
 
	
13.12

	
314(b)
	
Inapplicable

	
314(c)
	
13.07(1)

	
314(d)
	
Inapplicable

	
314(e)
	
13.07(2)

	
314(f)
	
Inapplicable

	
315(a)
	
7.01(1)

	
 
	
7.01(2)

	
315(b)
	
7.14

	
315(c)
	
7.01

	
315(d)
	
7.01(2)

	
315(e)
	
6.07

	
316(a)
	
6.06

	
 
	
8.04

	
316(b)
	
6.04

	
316(c)
	
8.01

	
317(a)
	
6.02

	
317(b)
	
4.03

	
318(a)
	
13.09

 

	
(1)
	
This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]