Document:

MORTGAGE

NEW JERSEY NATURAL GAS COMPANY

To

U.S. BANK NATIONAL ASSOCIATION,
As Trustee

	 

FIFTH SUPPLEMENTAL INDENTURE

Dated as of July 1, 2019

	 

Supplemental to Amended and Restated Indenture of Mortgage,
Deed of Trust and Security Agreement Dated as of September 1, 2014,
As Supplemented and Amended

	 

 

	Prepared by:   	Eric A. Koontz	     	

   Record and Return to:   
	

   Richard Reich, Esq.

		Troutman Sanders LLP			NJR Service Corporation
		600 Peachtree Street, NE, Suite 3000		 	1415 Wyckoff Road
		Atlanta, GA 30308			Wall, New Jersey 07719

MORTGAGE

FIFTH SUPPLEMENTAL INDENTURE, dated as of July 1, 2019, between NEW JERSEY NATURAL GAS COMPANY, a corporation organized and existing under the laws of the State of New Jersey (hereinafter called the “Company”), having its principal office at 1415 Wyckoff Road, Wall, New Jersey, and U.S. BANK NATIONAL ASSOCIATION, a national banking association (hereinafter called the “Trustee”), having a principal office at 333 Thornall Street, 4th Floor, Edison, New Jersey 08837, as Trustee under the Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement hereinafter mentioned.

WHEREAS, the Company has heretofore executed and delivered to the Trustee its Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement, dated as of September 1, 2014 (the “Amended and Restated Indenture” and, as originally executed or as the same may from time to time be supplemented, modified or amended by any supplemental indenture entered into pursuant to the provisions thereof, the “Indenture”), to secure the payment of the principal of and the interest and premium (if any) on all Bonds at any time issued and outstanding thereunder, and to declare the terms and conditions upon which Bonds are to be issued thereunder; and

WHEREAS, the Amended and Restated Indenture completely restated and amended the Indenture of Mortgage and Deed of Trust, dated April 1, 1952, as heretofore supplemented and amended (the “Original Indenture”) without any interruption of the Lien of the Original Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $10,300,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series II due 2023,” herein sometimes called “2023 Series II Bonds,” were designated as Existing Bonds in Section 3.01 of the Indenture and are outstanding at the date hereof and secured by the Indenture, provided that such 2023 Series II Bonds were retired by the Company and replaced with the 2042 Series WW Bonds (as hereinafter defined); and

WHEREAS, Bonds in the aggregate principal amount of $10,500,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series JJ due 2024,” herein sometimes called “2024 Series JJ Bonds,” were designated as Existing Bonds in Section 3.02 of the Indenture and are outstanding at the date hereof and secured by the Indenture, provided that such 2024 Series JJ Bonds were retired by the Company and replaced with the 2038 Series XX Bonds (as hereinafter defined); and

WHEREAS, Bonds in the aggregate principal amount of $15,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series KK due 2040,” herein sometimes called “2040 Series KK Bonds,” were designated as Existing Bonds in Section 3.03 of the Indenture and are outstanding at the date hereof and secured by the Indenture, provided that such 2040 Series KK Bonds were retired by the Company and replaced with the 2059 Series YY Bonds (as hereinafter defined); and

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WHEREAS, Bonds in the aggregate principal amount of $125,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series LL due 2018,” herein sometimes called “2018 Series LL Bonds,” were designated as Existing Bonds in Section 3.04 of the Indenture which 2018 Series LL Bonds have since been paid at maturity by the Company; and

WHEREAS, Bonds in the aggregate principal amount of $9,545,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series MM due 2027,” herein sometimes called “2027 Series MM Bonds,” have been designated as Existing Bonds in Section 3.05 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $41,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series NN due 2035,” herein sometimes called “2035 Series NN Bonds,” have been designated as Existing Bonds in Section 3.06 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $46,500,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series OO due 2041,” herein sometimes called “2041 Series OO Bonds,” have been designated as Existing Bonds in Section 3.07 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $50,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series PP due 2028,” herein sometimes called “2028 Series PP Bonds,” have been designated as Existing Bonds in Section 3.08 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $70,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series QQ due 2024,” herein sometimes called “2024 Series QQ Bonds,” have been designated as Existing Bonds in Section 3.09 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

WHEREAS, Bonds in the aggregate principal amount of $55,000,000, originally issued under and in accordance with the terms of the Original Indenture, as supplemented and amended, as a series designated “First Mortgage Bonds, Series RR due 2044,” herein sometimes called “2044 Series RR Bonds,” have been designated as Existing Bonds in Section 3.10 of the Indenture and are outstanding at the date hereof and secured by the Indenture; and

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WHEREAS, the Amended and Restated Indenture provides that, subject to certain exceptions not presently relevant, such changes in or additions to the provisions of the Indenture (terms used herein having the meanings assigned thereto in the Amended and Restated Indenture except as herein expressly modified) may be made to add to the covenants and agreements of the Company in the Indenture contained other covenants and agreements thereafter to be observed by the Company; and to provide for the creation of any series of Bonds, designating the series to be created and specifying the form and provisions of the Bonds of such series as in the Indenture provided or permitted; and

WHEREAS, the Indenture further provides that the Company and the Trustee may enter into indentures supplemental to the Indenture to assign, convey, mortgage, pledge, transfer and set over unto the Trustee and to subject to the lien of the Indenture additional property of the Company; and

WHEREAS, pursuant to the Amended and Restated Indenture as amended by the First Supplemental Indenture, dated as of April 1, 2015, between the Company and the Trustee, the Company determined to amend certain provisions of the Amended and Restated Indenture and to create an eleventh and a twelfth series of Bonds under the Indenture, known as (i) “First Mortgage Bonds, Series SS due 2025,” herein sometimes called “2025 Series SS Bonds,” and (ii) “First Mortgage Bonds, Series TT due 2045,” herein sometimes called “2045 Series TT Bonds,” respectively; and

WHEREAS, pursuant to the Amended and Restated Indenture as amended by the Second Supplemental Indenture, dated as of June 21, 2016, between the Company and the Trustee, the Company determined to amend certain provisions of the Amended and Restated Indenture and to create a thirteenth series of Bonds under the Indenture, known as “First Mortgage Bonds, Series UU due 2046,” herein sometimes called “2046 Series UU Bonds”; and

WHEREAS, pursuant to the Amended and Restated Indenture as amended by the Third Supplemental Indenture, dated as of May 1, 2018, between the Company and the Trustee, the Company determined to amend certain provisions of the Amended and Restated Indenture and to create a fourteenth series of Bonds under the Indenture, known as “First Mortgage Bonds, Series VV due 2048,” herein sometimes called “2048 Series VV Bonds”; and

WHEREAS, pursuant to the Amended and Restated Indenture as amended by the Fourth Supplemental Indenture, dated as of April 1, 2019, between the Company and the Trustee, the Company determined to amend certain provisions of the Amended and Restated Indenture and to create a fifteenth, a sixteenth and a seventeenth series of Bonds under the Indenture, known as (i) “First Mortgage Bonds, Series WW due 2042,” herein sometimes called “2042 Series WW Bonds,” (ii) “First Mortgage Bonds, Series XX due 2038,” herein sometimes called “2038 Series XX Bonds,” and (iii) (ii) “First Mortgage Bonds, Series YY due 2059,” herein sometimes called “2059 Series YY Bonds,” respectively; and

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WHEREAS, (i) the 2025 Series SS Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $50,000,000, (ii) the 2045 Series TT Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $100,000,000, (iii) the 2046 Series UU Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $125,000,000, (iv) the 2048 Series VV Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $125,000,000, (v) the 2042 Series WW Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $10,300,000, (vi) (v) the 2038 Series XX Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $10,500,000 and (vii) (v) the 2059 Series YY Bonds were issued in and are currently outstanding under the Indenture in the aggregate principal amount of $15,000,000; and

WHEREAS, the Company has entered into a Note Purchase Agreement dated as of July 17, 2019 (the “Note Purchase Agreement”) with the Purchasers identified in Schedule A attached thereto, pursuant to which the Company issued its senior notes designated (i) “3.76% Senior Notes, Series 2019A, due July 17, 2049” in the aggregate principal amount of $100,000,000 (the “Senior Notes due July 17, 2049”) and (ii) “3.86% Senior Notes, Series 2019B, due July 17, 2059” in the aggregate principal amount of $85,000,000 (the “Senior Notes due July 17, 2059”); and

WHEREAS, the Company has duly determined to create an eighteenth and a nineteenth series of Bonds under the Indenture, to be known as (i) “First Mortgage Bonds, Series ZZ due 2049,” herein sometimes called “2049 Series ZZ Bonds”, and (ii) “First Mortgage Bonds, Series AAA due 2059,” herein sometimes called “2059 Series AAA Bonds”, to be delivered and pledged to U.S. Bank National Association, as collateral agent (the “Collateral Agent”) pursuant to the Note Purchase Agreement for the benefit and security of the holders of the Senior Notes due July 17, 2049 and the Senior Notes due July 17, 2059, respectively, all as herein provided and as provided in the Note Purchase Agreement, and to add to the covenants and agreements contained in the Indenture, the covenants and agreements hereinafter set forth; and

WHEREAS, the Company, in the exercise of the powers and authority conferred upon and reserved to it under the provisions of the Indenture and pursuant to appropriate resolutions of its Board of Directors, has duly resolved and determined to make, execute and deliver to the Trustee a Fifth Supplemental Indenture in the form hereof for the purposes herein provided; and

WHEREAS, all conditions and requirements necessary to make this Fifth Supplemental Indenture a valid, binding and legal instrument have been done, performed and fulfilled and the execution and delivery hereof have been in all respects duly authorized.

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NOW, THEREFORE, THIS INDENTURE WITNESSETH:

That NEW JERSEY NATURAL GAS COMPANY, by way of further assurance and in consideration of the premises and of the acceptance by the Trustee of the trusts hereby created and of One Dollar to it duly paid by the Trustee at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, and in order to secure the payment of principal of and any premium which may be due and payable on and the interest on all Bonds at any time issued and outstanding under the Indenture according to their tenor and effect, and the performance and observance by the Company of all the covenants and conditions herein and therein contained, has granted, bargained, sold, warranted, aliened, remised, released, conveyed, assigned, transferred, mortgaged, pledged, set over and confirmed, and by these presents does grant, bargain, sell, warrant, alien, remise, release, convey, assign, transfer, mortgage, pledge, set over and confirm, unto the Trustee, and to its successors in the trust, and to it and its assigns forever, and has granted and does hereby grant thereunto a security interest in, all of the property, real, personal and mixed, now owned by the Company and situated in the Counties of Burlington, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Sussex in the State of New Jersey, or wherever situate (except Excepted Property and property released from the lien of the Indenture by the terms of the Indenture) and also all of the property, real, personal and mixed, hereafter acquired by the Company wherever situate (except Excepted Property and property released from the lien of the Indenture by the terms of the Indenture), including both as to property now owned and property hereafter acquired, without in any way limiting or impairing the enumeration of the same, the scope and intent of the foregoing or of any general or specific description contained in the Indenture, the following:

I. FRANCHISES

All and singular, the franchises, grants, permits, immunities, privileges and rights of the Company owned and held by it at the date of the execution hereof or hereafter acquired for the construction, maintenance, and operation of the gas plants and systems now or hereafter subject to the lien hereof, as well as all certificates, franchises, grants, permits, immunities, privileges, and rights of the Company used or useful in the operation of the property now or hereafter mortgaged hereunder, including all and singular the franchises, grants, permits, immunities, privileges, and rights of the Company granted by the governing authorities of any municipalities or other political subdivisions and all renewals, extensions and modifications of said certificates, franchises, grants, permits, privileges, arid rights or any of them.

II. GAS DISTRIBUTION SYSTEMS AND RELATED PROPERTY

All gas generating plants, gas storage plants and gas manufacturing plants of the Company, all the buildings, erections, structures, generating and purifying apparatus, holders, engines, boilers, benches, retorts, tanks, instruments, appliances, apparatus, facilities, machinery, fixtures, and all other property used or provided for use in the generation, manufacturing and purifying of gas, together with the land on which the same are situated, and all other lands and easements, rights-of-way, permits, privileges, and sites forming a part of such plants or any of them or occupied, enjoyed or used in connection therewith.

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All gas distribution or gas transmission systems of the Company, all buildings, erections, structures, generating and purifying apparatus, holders, engines, boilers, benches, retorts, tanks, pipe lines, connections, service pipes, meters, conduits, tools, instruments, appliances, apparatus, facilities, machinery, fixtures, and all other property used or provided for use in the construction, maintenance, repair or operations of such distribution or transmission systems, together with all the certificates, rights, privileges, rights-of-way, franchises, licenses, easements, grants, liberties, immunities, permits of the Company, howsoever conferred or acquired, under, over, or upon any private property or any public streets or highways within as well as without the corporate limits of any municipal corporation. Without limiting the generality of the foregoing, there are expressly included the gas distribution or gas transmission systems located in the Counties of Burlington, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Sussex in the State of New Jersey, and in the following municipalities in said State and Counties: Aberdeen Township (formerly Matawan Township), Allenhurst Borough, City of Asbury Park, Atlantic Highlands Borough, Avon By the Sea Borough, Barnegat Light Borough, Barnegat Township (formerly named Union Township), Bay Head Borough, Beach Haven Borough, Beachwood Borough, Belmar Borough, Berkeley Township, Boonton Town, Boonton Township, Bradley Beach Borough, Brick Township, Brielle Borough, Colts Neck Township, Deal Borough, Denville Township, Dover Town, Dover Township, Eagleswood Township, East Brunswick Township, Eatontown Borough, Englishtown Borough, Fair Haven Borough, Farmingdale Borough, Franklin Township in Somerset County, Freehold Borough, Freehold Township, Hanover Township, Harvey Cedars Borough, Hazlet Township, Highlands Borough, Holmdel Township, Hopatcong Borough, Howell Township, Interlaken Borough, Island Heights Borough, Jackson Township, Jefferson Township, Keansburg Borough, Keyport Borough, Lacey Township, Lakehurst Borough, Lakewood Township, Lavallette Borough, Lincoln Park Borough, Little Egg Harbor Township, Little Silver Borough, Loch Arbour Village, Long Beach Township, Long Branch City, Manalapan Township, Manasquan Borough, Manchester Township, Mantoloking Borough, Marlboro Township, Matawan Borough, Middletown Township, Milltown Borough, Mine Hill Township, Monmouth Beach Borough, Monroe Township, Montville Township, Morris Plains Borough, Mount Arlington Borough, Mount Olive Township, Mountain Lakes Borough, Neptune City Borough, Neptune Township, Netcong Borough, New Brunswick City, North Brunswick Township, Ocean Township in Monmouth County, Ocean Township in Ocean County, Ocean Gate Borough, Oceanport Borough, Old Bridge Township (formerly named Madison Township), Parsippany-Troy Hills Township, Pine Beach Borough, Point Pleasant Borough, Point Pleasant Beach Borough, Randolph Township, Red Bank Borough, Rockaway Borough, Rockaway Township, Roxbury Township, Rumson Borough, Sayreville Borough, Sea Bright Borough, Sea Girt Borough, Seaside Heights Borough, Seaside Park Borough, Ship Bottom Borough, Shrewsbury Borough, Shrewsbury Township, South Belmar Borough, South Brunswick Township, South River Borough, South Toms River Borough, Spring Lake Borough, Spring Lake Heights Borough, Stafford Township, Surf City Borough, Tinton Falls Borough (formerly named New Shrewsbury Borough), Tuckerton Borough, Union Beach Borough, Union Township, Victory Gardens Borough, Wall Township, Washington Township in Burlington County, Washington Township in Morris County, West Long Branch Borough, West Milford Township and Wharton Borough.

III. CONTRACTS

All of the Company’s right, title and interest in and under all contracts, licenses or leases for the purchase of gas, either in effect at the date of execution hereof or hereafter made and any extension or renewal thereof.

TOGETHER WITH ALL AND SINGULAR the tenements, hereditaments and appurtenances belonging or in anywise appertaining to the Trust Estate, or any part thereof, with the reversion or reversions, remainder and remainders, rents, issues, income and profits thereof, and all the right, title, interest and claim whatsoever, at law or in equity, which the Company now has or which it may hereafter acquire in and to the Trust Estate and every part and parcel thereof,

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TO HAVE AND TO HOLD the Trust Estate and all and singular the lands, properties, estates, rights, franchises, privileges and appurtenances hereby mortgaged, conveyed, pledged or assigned, or intended so to be, together with all the appurtenances thereto appertaining, unto the Trustee and its successors and assigns forever;

SUBJECT, HOWEVER, as to property hereby conveyed, to Permitted Encumbrances;

BUT IN TRUST, NEVERTHELESS, under and subject to the terms and conditions hereafter set forth, for the equal and proportionate use, benefit, security and protection of each and every person who may be or become the holders of the Bonds hereby secured without preference, priority or distinction as to the lien or otherwise of one Bond over or from the others by reason of priority in the issue or negotiation thereof, or by reason of the date of maturity thereof, or otherwise (except as any sinking, amortization, improvement, renewal or other analogous fund, established in accordance with the provisions of the Indenture, may afford additional security for the Bonds of any particular series), and for securing the observance and performance of all the terms, provisions and conditions of the Indenture.

THIS INDENTURE FURTHER WITNESSETH, that the Company has agreed and covenanted, and hereby does agree and covenant, with the Trustee and its successors and assigns and with the respective holders from time to time of the Bonds, or any thereof, as follows:

ARTICLE I

CERTAIN AMENDMENTS OF INDENTURE

♣ 1.1. The Indenture be and it hereby is amended in the following respects, the section numbers specified below being the sections of the Indenture in which such amendments occur:

♣ 1.01. The following definitions be and they hereby are added at the end of § 1.02:

“(xxxx) “Fifth Supplemental Indenture” shall mean the Fifth Supplemental Indenture, dated as of July 1, 2019, supplemental to the Indenture.”

“(yyyy) “2049 Series ZZ Bond” shall mean one of the First Mortgage Bonds, Series ZZ due 2049, issued hereunder.”

“(zzzz) “2059 Series AAA Bond” shall mean one of the First Mortgage Bonds, Series AAA due 2059, issued hereunder.”

♣ 2.11. The following be and it hereby is added at the end of § 2.11:

“No charge except for taxes or governmental charges shall be made against any holder of any 2049 Series ZZ Bond or 2059 Series AAA Bond for the exchange, transfer or registration of transfer thereof.”

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§ 8.08. The period at the end of the first paragraph of § 8.08 be and it hereby is deleted and the following words and figures be and they hereby are added thereto:

“, and the 2049 Series ZZ Bonds and 2059 Series AAA Bonds shall be redeemed at the redemption price specified in § 10.34 and § 10.36, respectively.”

ARTICLE II

2049 SERIES ZZ BONDS

§ 2.1. There shall be an eighteenth series of Bonds under the Indenture, known as and entitled “First Mortgage Bonds, Series ZZ due 2049” or “First Mortgage Bonds, Series ZZ” (herein and in the Indenture referred to as the “2049 Series ZZ Bonds”), and the form thereof shall contain suitable provisions with respect to the matters hereinafter in this Section specified and shall in other respects be substantially as set forth in Exhibit A to the Indenture.

The aggregate principal amount of 2049 Series ZZ Bonds which may be authenticated and delivered and outstanding under the Indenture is $100,000,000.

The 2049 Series ZZ Bonds shall be payable to the Collateral Agent, and shall be nontransferable except to a successor of the Collateral Agent, in accordance with the Note Purchase Agreement.

The 2049 Series ZZ Bonds shall bear interest at the rate of 3.76% per annum, computed on the basis of a 360-day year of twelve 30-day months, until the principal thereof is paid or made available for payment, and shall mature on July 17, 2049, subject to prior redemption as described herein; provided that any principal, Make-Whole Amount (as defined in the Note Purchase Agreement), and any such installment of interest which is overdue shall bear interest at a rate of interest that is the greater of (i) 5.76% per annum or (ii) 2.00% per annum over the rate of interest publicly announced by PNC Bank, National Association as its “base” or “prime” rate (to the extent that payment of such interest is enforceable under applicable law).

The 2049 Series ZZ Bonds shall be in the form of registered Bonds without coupons of denominations of $1,000 and any integral multiple thereof which may be authorized by the Company, the issue of a registered Bond without coupons in any such denomination to be conclusive evidence of such authorization. Any 2049 Series ZZ Bonds shall be dated (i) as of the semi-annual interest payment date (as specified in the first paragraph of the 2049 Series ZZ Bonds) next preceding the date on which such 2049 Series ZZ Bonds shall be authenticated, unless such 2049 Series ZZ Bonds are authenticated before January 17, 2020, in which case such 2049 Series ZZ Bonds shall be dated July 17, 2019 or, (ii) if such date of authentication shall be an interest payment date, such 2049 Series ZZ Bonds shall be dated such interest payment date; provided, however, that, if at the time of authentication of any 2049 Series ZZ Bonds interest is in default on the 2049 Series ZZ Bonds, such 2049 Series ZZ Bonds shall be dated as of the interest payment date to which interest has previously been paid or made available for payment on the 2049 Series ZZ Bonds. All 2049 Series ZZ Bonds shall bear interest from their respective dates, such interest to be payable, upon the terms of and otherwise in accordance with the 2049 Series ZZ Bonds, on each date on which interest shall from time to time be payable on the Senior Notes due July 17, 2049; provided, that the obligation of the Company to make payments with respect to the principal of, Make-Whole Amount, if any, and interest on the 2049 Series ZZ Bonds shall be fully or partially, as the case may be, satisfied and discharged to the extent that at the time any such payment shall be due, the then due principal of, Make-Whole Amount, if any, and interest on any of the Senior Notes due July 17, 2049 shall have been fully or partially paid from payments made by the Company under the Note Purchase Agreement. The principal of, Make-Whole Amount, if any, and interest on the 2049 Series ZZ Bonds shall be payable at the principal office of the Trustee, in Edison, New Jersey, or, at the option of the Company, at the “principal office” (as indicated pursuant to the Note Purchase Agreement) of the Collateral Agent, in any coin or currency of the United States of America which at the time of payment shall be legal tender for the payment of public and private debts.

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Notwithstanding any other provision of the Indenture or of the 2049 Series ZZ Bonds, payments of the principal of, Make-Whole Amount, if any, and interest on any 2049 Series ZZ Bond may be made directly to the registered holder thereof without presentation or surrender thereof or the making of any notation thereon if there shall be filed with the Trustee a Certificate of the Company to the effect that such registered holder (or the person for whom such registered holder is a nominee) and the Company have entered into a written agreement that payment shall be so made; provided, however, that before such registered holder transfers or otherwise disposes of any 2049 Series ZZ Bond, such registered holder will, at its election, either endorse thereon (or on a paper annexed thereto) the principal amount thereof redeemed and the last date to which interest has been paid thereon or make such Bond available to the Company at the principal office of the Trustee for the purpose of making such endorsement thereon.

The 2049 Series ZZ Bonds shall be subject to redemption at the option of the Company or otherwise, and shall be subject to mandatory redemption, in the manner provided in the applicable provisions of Article Ten of the Indenture, as amended by Article III of this Fifth Supplemental Indenture.

The 2049 Series ZZ Bonds shall be excluded from the benefits of, and shall not be subject to redemption through the operation of, a Mandatory Sinking Fund pursuant to § 11.02 of the Indenture.

Notwithstanding the provisions of § 10.02 or any other provision of the Indenture, the selection of 2049 Series ZZ Bonds to be redeemed shall, in case fewer than all of the outstanding 2049 Series ZZ Bonds are to be redeemed, be made by the Trustee pro rata (to the nearest multiple of One Thousand Dollars ($1,000)) among the registered holders of the 2049 Series ZZ Bonds in proportion, as nearly as practicable, to the respective unpaid principal amounts of 2049 Series ZZ Bonds registered in the names of such holders, with adjustments, to the extent practicable, to compensate for any prior redemption not made exactly in such proportion (or otherwise as may be specified by a written order signed by the registered holders of all outstanding 2049 Series ZZ Bonds).

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The definitive 2049 Series ZZ Bonds may be issued in the form of engraved Bonds or Bonds printed or lithographed on steel engraved borders or Bonds in typed form on normal bond paper. Subject to the foregoing provisions of this Section and the provisions of § 2.11 of the Indenture, all definitive 2049 Series ZZ Bonds shall be fully exchangeable for other Bonds of the same series, of like aggregate principal amounts, and, upon surrender to the Trustee at its principal office, shall be exchangeable for other Bonds of the same series of a different authorized denomination or denominations, as requested by the holder surrendering the same. The Company will execute, and the Trustee shall authenticate and deliver, registered Bonds without coupons, whenever the same shall be required for any such exchange.

§ 2.2. 2049 Series ZZ Bonds in the aggregate principal amount of $100,000,000 may forthwith upon the execution and delivery of this Fifth Supplemental Indenture, or from time to time thereafter, be executed by the Company and delivered to the Trustee, and shall thereupon be authenticated and delivered by the Trustee upon compliance by the Company with the provisions of Articles Four, Five or Six of the Indenture, without awaiting the filing or recording of this Fifth Supplemental Indenture. No additional 2049 Series ZZ Bonds shall be issued under Article Four, Five or Six of the Indenture without the consent in writing of the holders of all the outstanding 2049 Series ZZ Bonds.

ARTICLE III

REDEMPTION OF THE 2049 SERIES ZZ BONDS

§ 3.1. The following § 10.39 and § 10.40 be and they hereby are added to Article Ten of the Indenture:

“§ 10.39. The 2049 Series ZZ Bonds shall be subject to redemption as follows: payments of principal of, Make-Whole Amount, if any, and interest on the 2049 Series ZZ Bonds shall be made to the Collateral Agent to redeem 2049 Series ZZ Bonds in such amounts as shall be necessary, in accordance with the provisions of the Note Purchase Agreement, to provide funds under the Note Purchase Agreement to (a) make, when due, payment at maturity (including, without limitation, maturity upon acceleration of the Senior Notes due July 17, 2049) and (b) make, when due, any prepayment required or permitted by the Senior Notes due July 17, 2049 in connection with any prepayment of the Senior Notes due July 17, 2049; provided, however, that the obligation of the Company to make any redemption payments under this Section shall be fully or partially, as the case may be, satisfied and discharged to the extent that at any time such payment shall be due, the then due payment at maturity or redemption payment on any of the Senior Notes due July 17, 2049 shall have been fully or partially made from payments made by the Company on the Notes under the Note Purchase Agreement; provided, further, however, that any principal, Make-Whole Amount, and any interest which is overdue shall bear interest at a rate of interest that is the greater of (i) 5.76% per annum or (ii) 2.00% per annum over the rate of interest publicly announced by PNC Bank, National Association as its “base” or “prime” rate (to the extent that payment of such interest is enforceable under applicable law). Terms used and not defined in this Section and in Section 10.40 shall have the respective meanings given to them in the Fifth Supplemental Indenture.”

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“§ 10.40. In the case of the redemption of 2049 Series ZZ Bonds out of moneys deposited with the Trustee pursuant to § 8.08, such 2049 Series ZZ Bonds shall, upon compliance with provisions of § 10.02, and subject to the provisions of § 2.1 of the Fifth Supplemental Indenture, be redeemable at the principal amounts thereof, together with interest accrued thereon to the date fixed for redemption, without premium or Make-Whole Amount.”

ARTICLE IV

2059 SERIES AAA BONDS

§ 4.1. There shall be a nineteenth series of Bonds under the Indenture, known as and entitled “First Mortgage Bonds, Series AAA due 2059” or “First Mortgage Bonds, Series AAA” (herein and in the Indenture referred to as the “2059 Series AAA Bonds”), and the form thereof shall contain suitable provisions with respect to the matters hereinafter in this Section specified and shall in other respects be substantially as set forth in Exhibit A to the Indenture.

The aggregate principal amount of 2059 Series AAA Bonds which may be authenticated and delivered and outstanding under the Indenture is $85,000,000.

The 2059 Series AAA Bonds shall be payable to the Collateral Agent, and shall be nontransferable except to a successor of the Collateral Agent, in accordance with the Note Purchase Agreement.

The 2059 Series AAA Bonds shall bear interest at the rate of 3.86% per annum, computed on the basis of a 360-day year of twelve 30-day months, until the principal thereof is paid or made available for payment, and shall mature on July 17, 2059, subject to prior redemption as described herein; provided that any principal, Make-Whole Amount (as defined in the Note Purchase Agreement), and any such installment of interest which is overdue shall bear interest at a rate of interest that is the greater of (i) 5.86% per annum or (ii) 2.00% per annum over the rate of interest publicly announced by PNC Bank, National Association as its “base” or “prime” rate (to the extent that payment of such interest is enforceable under applicable law).

The 2059 Series AAA Bonds shall be in the form of registered Bonds without coupons of denominations of $1,000 and any integral multiple thereof which may be authorized by the Company, the issue of a registered Bond without coupons in any such denomination to be conclusive evidence of such authorization. Any 2059 Series AAA Bonds shall be dated (i) as of the semi-annual interest payment date (as specified in the first paragraph of the 2059 Series AAA Bonds) next preceding the date on which such 2059 Series AAA Bonds shall be authenticated, unless such 2059 Series AAA Bonds are authenticated before January 17, 2020, in which case such 2059 Series AAA Bonds shall be dated July 17, 2019 or, (ii) if such date of authentication shall be an interest payment date, such 2059 Series AAA Bonds shall be dated such interest payment date; provided, however, that, if at the time of authentication of any 2059 Series AAA Bonds interest is in default on the 2059 Series AAA Bonds, such 2059 Series AAA Bonds shall be dated as of the interest payment date to which interest has previously been paid or made available for payment on the 2059 Series AAA Bonds. All 2059 Series AAA Bonds shall bear interest from their respective dates, such interest to be payable, upon the terms of and otherwise in accordance with the 2059 Series AAA Bonds, on each date on which interest shall from time to time be payable on the Senior Notes due July 17, 2059; provided, that the obligation of the Company to make payments with respect to the principal of, Make-Whole Amount, if any, and interest on the 2059 Series AAA Bonds shall be fully or partially, as the case may be, satisfied and discharged to the extent that at the time any such payment shall be due, the then due principal of, Make-Whole Amount, if any, and interest on any of the Senior Notes due July 17, 2059 shall have been fully or partially paid from payments made by the Company under the Note Purchase Agreement. The principal of, Make-Whole Amount, if any, and interest on the 2059 Series AAA Bonds shall be payable at the principal office of the Trustee, in Edison, New Jersey, or, at the option of the Company, at the “principal office” (as indicated pursuant to the Note Purchase Agreement) of the Collateral Agent, in any coin or currency of the United States of America which at the time of payment shall be legal tender for the payment of public and private debts.

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Notwithstanding any other provision of the Indenture or of the 2059 Series AAA Bonds, payments of the principal of, Make-Whole Amount, if any, and interest on any 2059 Series AAA Bond may be made directly to the registered holder thereof without presentation or surrender thereof or the making of any notation thereon if there shall be filed with the Trustee a Certificate of the Company to the effect that such registered holder (or the person for whom such registered holder is a nominee) and the Company have entered into a written agreement that payment shall be so made; provided, however, that before such registered holder transfers or otherwise disposes of any 2059 Series AAA Bond, such registered holder will, at its election, either endorse thereon (or on a paper annexed thereto) the principal amount thereof redeemed and the last date to which interest has been paid thereon or make such Bond available to the Company at the principal office of the Trustee for the purpose of making such endorsement thereon.

The 2059 Series AAA Bonds shall be subject to redemption at the option of the Company or otherwise, and shall be subject to mandatory redemption, in the manner provided in the applicable provisions of Article Ten of the Indenture, as amended by Article V of this Fifth Supplemental Indenture.

The 2059 Series AAA Bonds shall be excluded from the benefits of, and shall not be subject to redemption through the operation of, a Mandatory Sinking Fund pursuant to § 11.02 of the Indenture.

Notwithstanding the provisions of § 10.02 or any other provision of the Indenture, the selection of 2059 Series AAA Bonds to be redeemed shall, in case fewer than all of the outstanding 2059 Series AAA Bonds are to be redeemed, be made by the Trustee pro rata (to the nearest multiple of One Thousand Dollars ($1,000)) among the registered holders of the 2059 Series AAA Bonds in proportion, as nearly as practicable, to the respective unpaid principal amounts of 2059 Series AAA Bonds registered in the names of such holders, with adjustments, to the extent practicable, to compensate for any prior redemption not made exactly in such proportion (or otherwise as may be specified by a written order signed by the registered holders of all outstanding 2059 Series AAA Bonds).

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The definitive 2059 Series AAA Bonds may be issued in the form of engraved Bonds or Bonds printed or lithographed on steel engraved borders or Bonds in typed form on normal bond paper. Subject to the foregoing provisions of this Section and the provisions of § 2.11 of the Indenture, all definitive 2059 Series AAA Bonds shall be fully exchangeable for other Bonds of the same series, of like aggregate principal amounts, and, upon surrender to the Trustee at its principal office, shall be exchangeable for other Bonds of the same series of a different authorized denomination or denominations, as requested by the holder surrendering the same. The Company will execute, and the Trustee shall authenticate and deliver, registered Bonds without coupons, whenever the same shall be required for any such exchange.

§ 4.2. 2059 Series AAA Bonds in the aggregate principal amount of $85,000,000 may forthwith upon the execution and delivery of this Fifth Supplemental Indenture, or from time to time thereafter, be executed by the Company and delivered to the Trustee, and shall thereupon be authenticated and delivered by the Trustee upon compliance by the Company with the provisions of Articles Four, Five or Six of the Indenture, without awaiting the filing or recording of this Fifth Supplemental Indenture. No additional 2059 Series AAA Bonds shall be issued under Article Four, Five or Six of the Indenture without the consent in writing of the holders of all the outstanding 2059 Series AAA Bonds.

ARTICLE V

REDEMPTION OF THE 2059 SERIES AAA BONDS

§ 5.1. The following § 10.41 and § 10.42 be and they hereby are added to Article Ten of the Indenture:

“§ 10.41. The 2059 Series AAA Bonds shall be subject to redemption as follows: payments of principal of, Make-Whole Amount, if any, and interest on the 2059 Series AAA Bonds shall be made to the Collateral Agent to redeem 2059 Series AAA Bonds in such amounts as shall be necessary, in accordance with the provisions of the Note Purchase Agreement, to provide funds under the Note Purchase Agreement to (a) make, when due, payment at maturity (including, without limitation, maturity upon acceleration of the Senior Notes due July 17, 2059) and (b) make, when due, any prepayment required or permitted by the Senior Notes due July 17, 2059 in connection with any prepayment of the Senior Notes due July 17, 2059; provided, however, that the obligation of the Company to make any redemption payments under this Section shall be fully or partially, as the case may be, satisfied and discharged to the extent that at any time such payment shall be due, the then due payment at maturity or redemption payment on any of the Senior Notes due July 17, 2059 shall have been fully or partially made from payments made by the Company on the Notes under the Note Purchase Agreement; provided, further, however, that any principal, Make-Whole Amount, and any interest which is overdue shall bear interest at a rate of interest that is the greater of (i) 5.86% per annum or (ii) 2.00% per annum over the rate of interest publicly announced by PNC Bank, National Association as its “base” or “prime” rate (to the extent that payment of such interest is enforceable under applicable law). Terms used and not defined in this Section and in Section 10.42 shall have the respective meanings given to them in the Fifth Supplemental Indenture.”

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“§ 10.42. In the case of the redemption of 2059 Series AAA Bonds out of moneys deposited with the Trustee pursuant to § 8.08, such 2059 Series AAA Bonds shall, upon compliance with provisions of § 10.02, and subject to the provisions of § 4.1 of the Fifth Supplemental Indenture, be redeemable at the principal amounts thereof, together with interest accrued thereon to the date fixed for redemption, without premium or Make-Whole Amount.”

ARTICLE VI

MISCELLANEOUS

§ 6.1. The Company is lawfully seized and possessed of all the real estate, franchises and other property described or referred to in the Indenture (except properties released from the lien of the Indenture pursuant to the provisions thereof) as presently mortgaged, subject to the exceptions stated therein, such real estate, franchises and other property are free and clear of any lien prior to the lien of the Indenture except as set forth in the Granting Clauses of the Indenture and the Company has good right and lawful authority to mortgage the same as provided in and by the Indenture.

§ 6.2. The Trustee assumes no duties, responsibilities or liabilities by reason of this Fifth Supplemental Indenture other than as set forth in the Indenture, and this Fifth Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions of its acceptance of the trust under the Indenture, as fully as if said terms and conditions were herein set forth at length.

§ 6.3. The terms used in this Fifth Supplemental Indenture shall have the meanings assigned thereto in the Indenture. Reference by number in this Fifth Supplemental Indenture to Articles or Sections shall be construed as referring to Articles or Sections contained in the Indenture, unless otherwise stated.

§ 6.4. As amended and modified by this Fifth Supplemental Indenture, the Indenture is in all respects ratified and confirmed and the Indenture and this Fifth Supplemental Indenture shall be read, taken and construed as one and the same instrument.

§ 6.5. Neither the approval by the Board of Public Utilities of the State of New Jersey of the execution and delivery of this Fifth Supplemental Indenture nor the approval by said Board of the issue of any Bonds under the Indenture shall in any way be construed as the approval by said Board of any other act, matter or thing which requires approval of said Board under the laws of the State of New Jersey; nor shall approval by said Board of the issue of any Bonds under the Indenture bind said Board or any other public body or authority of the State of New Jersey having jurisdiction in the premises in any future application for the issue of Bonds under the Indenture or otherwise.

§ 6.6. This Fifth Supplemental Indenture may be executed in any number of counterparts and all said counterparts executed and delivered each as an original shall constitute but one and the same instrument.

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NEW JERSEY NATURAL GAS COMPANY HEREBY DECLARES THAT IT HAS READ THIS FIFTH SUPPLEMENTAL INDENTURE, HAS RECEIVED A COMPLETELY FILLED-IN TRUE COPY OF IT WITHOUT CHARGE AND HAS SIGNED THIS FIFTH SUPPLEMENTAL INDENTURE ON THE DATE CONTAINED IN ITS ACKNOWLEDGEMENT HEREOF.

IN WITNESS WHEREOF, NEW JERSEY NATURAL GAS COMPANY has caused these presents to be signed in its corporate name by its President, a Vice President or its Treasurer and its corporate seal to be hereunto affixed and attested by its Secretary or an Assistant Secretary, and U.S. BANK NATIONAL ASSOCIATION, in evidence of its acceptance of the trust hereby created, has caused these presents to be signed in its corporate name by one of its Vice Presidents.

	 		NEW JERSEY NATURAL GAS COMPANY
	 		 
	 	          	By:  	/s/ Roberto Bel                                           	
	 		Name: Roberto Bel
	 		Title: Vice President, Treasurer
	 		 
	[Corporate Seal]		
	 		 
	ATTEST:		
	 		 
	/s/ Richard Reich                                           			
	Name: Richard Reich		
	Title: Corporate Secretary		

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	 		U.S. BANK NATIONAL ASSOCIATION,
	 	 	as Trustee
	 		 
	 	          	By:  	/s/ Christopher E. Golabek                    	
	 		Name: Christopher E. Golabek
	 		Title: Vice President
	 		 
	ATTEST:		
	 		 
	/s/ Stephanie Roche                    			
	Name: Stephanie Roche		
	Title: Vice President		

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	STATE OF NEW JERSEY	     	)
			) SS:
	COUNTY OF MONMOUTH		)

BE IT REMEMBERED that on this 9th day of July, 2019, before me, the subscriber, an Attorney-at-Law of the State of New Jersey, and I hereby certify that I am such an Attorney-at-Law as witness my hand, personally appeared Richard Reich to me known who, being by me duly sworn according to law, on his oath, does depose and make proof to my satisfaction that he is the Corporate Secretary of NEW JERSEY NATURAL GAS COMPANY, the grantor or mortgagor in the foregoing Supplemental Indenture named; that he well knows the seal of said corporation; that the seal affixed to said Supplemental Indenture is the corporate seal of said corporation, and that it was so affixed in pursuance of resolutions of the Board of Directors of said corporation; that Roberto Bel is Vice President, Treasurer of said corporation; that he saw said Roberto Bel, as such Vice President, Treasurer, affix said seal thereto, sign and deliver said Supplemental Indenture, and heard her declare that she signed, sealed and delivered the same as the voluntary act and deed of said corporation, in pursuance of said resolutions, and that this deponent signed his name thereto, at the same time, as attesting witness.

		          	/s/ Richard Reich                    	
			Name: Richard Reich
			Title: Corporate Secretary
	Subscribed and sworn to before me,
an Attorney-at-Law of the State of
New Jersey, at Wall, New Jersey,
the day and year aforesaid.		
	 		 
	 		 
	/s/ Alexander Gonzalez                    			
	Name: Alexander Gonzalez		
	 		
	Attorney-at-Law of the		
	State of New Jersey		

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ACKNOWLEDGEMENT

	STATE OF NEW JERSEY	     	)
			) ss:
	COUNTY OF MIDDLESEX		)

I HEREBY CERTIFY that on this 9th of July, 2019, before me, a Notary Public for the state aforesaid, personally appeared Christopher E. Golabek, known to me or satisfactorily proven to be the Person whose name is subscribed to the Fifth Supplemental Indenture dated as of July 1, 2019, who acknowledged that he is an authorized signatory for U.S. Bank National Association, a national banking association, as Trustee; that he has been duly authorized to execute, and has executed, such instrument on its behalf for the purposes therein set forth; and that the same is its act and deed.

IN WITNESS WHEREOF, I have set my hand and Notarial Seal, the day and year first above written.

	 	/s/ Denise M. Kellerk          	
	 	Notary Public	 
	 	My commission expires on  	02/15/2024	 

19mack-ex101_270.htm

Exhibit 10.1

STOCK PURCHASE AGREEMENT

This Stock Purchase Agreement (this “Agreement”) is made and entered into as of May 7, 2019 (the “Effective Date”) by and among HNKK Holdings Limited, a company registered in the British Virgin Islands (“Purchaser”), Merrimack Pharmaceuticals, Inc., a Delaware corporation (“Seller”), and Silver Creek Pharmaceuticals, Inc., a Delaware corporation (the “Company”).

RECITALS

WHEREAS, Seller owns shares (“Seller’s Shares”) of the Company’s Series A Preferred Stock, par value USD$0.0001 per share (the “Series A Preferred Stock”), which Seller’s Shares are subject to the terms of that certain Series A Preferred Stock Purchase Agreement dated as of August 20, 2010, that certain Amended and Restated Voting Agreement dated as of December 4, 2016, that certain Amended and Restated First Refusal and Co-Sale Agreement dated as of December 4, 2016 and that certain Amended and Restated Investors’ Rights Agreement dated as of December 4, 2016 (the “Rights Agreement”), each as entered into by and among Seller, the Company and the other parties listed therein (collectively, the “Stockholder Agreements”).

WHEREAS, Seller desires to sell (the “Sale”) an aggregate of 12,000,000 shares of Series A Preferred Stock (collectively, the “Transferred Shares”) to Purchaser subject to the terms and conditions of this Agreement.

NOW, THEREFORE, the parties hereby agree as follow.

1.SALE AND PURCHASE OF SHARES.  On the Effective Date and subject to the terms and conditions of this Agreement, Seller hereby sells to Purchaser, and Purchaser hereby purchases from Seller, the Transferred Shares at a purchase price of USD$0.65 per share for an aggregate purchase price of USD$7,800,000 (the “Purchase Price”).  As used in this Agreement, the “Transferred Shares” shall include all of the Transferred Shares sold and transferred under this Agreement and all securities received (a) in replacement of the Transferred Shares, (b) as a result of stock dividends or stock splits in respect of the Transferred Shares and (c) as substitution for the Transferred Shares in a recapitalization, merger, reorganization or the like.  The Company hereby waives any right of first refusal, any other applicable transfer restrictions and all applicable notice requirements for the Company’s benefit with respect to the Sale, it being expressly understood that (a) such waiver shall apply only to the Sale pursuant to this Agreement, (b) Purchaser will hold the Transferred Shares subject to all of the restrictions noted elsewhere in this Agreement and (c) Seller shall continue to be subject to all applicable restrictions with respect to any shares of the Company’s capital stock, if any, held by or for the benefit of Seller other than the Transferred Shares.

2.CLOSING.

2.1Deliveries by Seller.  Seller hereby delivers to the Company:  (a) any stock certificate(s) representing the Transferred Shares, if in Seller’s possession, or otherwise authorizes the Company to remove any such stock certificate(s) from escrow for cancellation and reissuance; (b) an executed copy of this Agreement; and (c) one (1) copy of the executed and completed Stock Power and Assignment Separate from Stock Certificate attached hereto as Exhibit A, transferring the Transferred Shares to Purchaser; in each case the delivery of which is hereby acknowledged to be an express condition of the Company’s execution, delivery and performance pursuant to this Agreement and the transactions contemplated hereby.  Seller hereby delivers to Purchaser an executed copy of this Agreement.

 

 

2.2Deliveries by Purchaser.  Purchaser hereby delivers to the Company an executed copy of this Agreement.  Purchaser hereby delivers to Seller:  (a) an executed copy of this Agreement; and (b) a check for the Purchase Price made payable to Seller, or a wire transfer of immediately available funds to an account or accounts designated by Seller.

2.3Deliveries of Stock Certificate(s).  Seller hereby instructs the Company to:  (a) cancel any stock certificates issued to Seller representing the Transferred Shares; and (b) issue duly executed stock certificates evidencing the Transferred Shares in Purchaser’s name.

3.REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser represents and warrants to Seller and the Company as follows.

3.1Authorization.  Purchaser has all necessary power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  All action on Purchaser’s part required for the lawful execution and delivery of this Agreement has been taken.  The signatory executing this Agreement on behalf of Purchaser is qualified and has the power to act and is properly exercising his, her or its power under the organizational documents of Purchaser in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.  Upon execution and delivery of this Agreement, the obligations of this Agreement will be valid and binding obligations of Purchaser, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights general, and (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

3.2Purchase for Own Account for Investment.  Purchaser is purchasing the Transferred Shares for Purchaser’s own account, for investment purposes only and not with a view to, or for sale in connection with, a distribution of the Transferred Shares within the meaning of the Securities Act; provided that Purchaser may transfer the Transferred Shares without consideration to up to nineteen (19) current investors in Purchaser following the Effective Date.  Other than the potential transfer to current investors in Purchaser referenced in the preceding sentence, Purchaser has no present intention of selling or otherwise disposing of all or any portion of the Transferred Shares.   

3.3Non-Contravention; Legal Investment.  The execution, delivery and performance by Purchaser of this Agreement do not and will not contravene or constitute an event of default under or violation of, or be subject to penalties under, (a) any agreement (or require the consent of any party under any such agreement that has not been made or obtained) to which Purchaser is a party, or (b) any judgment, injunction, order, decree or other instrument binding upon Purchaser, except where such contravention, default, violation or failure to obtain a consent, individually or in the aggregate, would not reasonably be expected to impair Purchaser’s ability to perform fully any material obligation which Purchaser has or will have under this Agreement.

3.4Accredited Investor.  Purchaser and each holder of equity interests in Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act.

3.5Access to Information.  Purchaser has adequate information concerning the business and financial condition of the Company to make an informed decision regarding the purchase of the Transferred Shares.

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3.6Understanding of Risks.  Purchaser is fully aware of:  (a) the highly speculative nature of the Transferred Shares; (b) the financial hazards involved; (c) the lack of liquidity of the Transferred Shares and the restrictions on transferability of the Transferred Shares (e.g., that Purchaser may not be able to sell or dispose of the Transferred Shares); (d) the qualifications and backgrounds of the management of the Company:  and (e) the tax consequences of acquiring the Transferred Shares.  Purchaser hereby acknowledges and agrees that (a) any future purchase, sale or other valuation of the Company’s capital stock could be at a premium or a discount to the purchase price per share, (b) such purchase or sale could occur at any time or not at all, (c) the current value of the Company may not support a sale of any of the Transferred Shares at the purchase price per share as of the Effective Date or any future date at a price per share equal to the purchase price per share (and may only support such a sale at a price per share that is substantially lower than the purchase price per share), and (d) Seller currently has, and later may come into possession of, information with respect to the Company or the Transferred Shares that is not known to Purchaser and that may be material to a decision to purchase or sell the Transferred Shares, including, without limitation, information that may relate to any one or more of the following:  the Company’s financial or tax position; any valuation of the Company or its securities for the purposes of or relating to Section 409A of the United States Internal Revenue Code of 1986, as amended (the “Code”); or the Company’s results of operations or business prospects (or the increase or diminution of any of the foregoing).  Purchaser acknowledges and agrees that, by agreeing to purchase the Transferred Shares from Seller, it is accepting all risks associated with acquisition and ownership of the Transferred Shares as of the Effective Date, including any depreciation or diminution in the value of the Company’s capital stock.

3.7Purchaser’s Qualification.  By reason of Purchaser’s business or financial experience, Purchaser is capable of evaluating the merits and risks of this prospective investment, has the capacity to protect Purchaser’s own interests in this transaction and is financial capable of bearing a total loss of the Transferred Shares.  Furthermore, Purchaser is able to fend for itself in the transactions contemplated by this Agreement and has the ability to bear the economic risk of this investment indefinitely.

3.8No General Solicitation.  At no time was Purchaser presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the Transferred Shares.

3.9Compliance with Securities Laws.  Purchaser understands and acknowledges that, in reliance upon the representations and warranties made by Purchaser herein, the Transferred Shares have not been and are not being registered with the United States Securities and Exchange Commission (the “SEC”) under the Securities Act, and have not been and are not being qualified under any state securities or blue sky laws, but instead are being transferred under an exemption or exemptions from the registration and qualification requirements of the Securities Act and any other applicable securities laws which impose certain restrictions on Purchaser’s ability to transfer the Transferred Shares.

3.10No Public Market.  Purchaser understands that no public market now exists for any of the securities issued by the Company and that the Company has made no assurances that a public market will ever exist for the Transferred Shares.  Purchaser understands that the Company has no present intention to file a registration statement with the SEC in connection with a proposed public offering of its securities.

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3.11Securities Law Restrictions on Transfer.  Purchaser understands that Purchaser may not transfer any Transferred Shares unless such Transferred Shares are registered under the Securities Act or qualified under any applicable securities law or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification are available.  Purchaser understands that only the Company may file a registration statement with the SEC or any other applicable securities commissioners.  Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser to transfer all or any of the Transferred Shares in the amounts or at the times proposed by Purchaser.

3.12Restricted Securities.  Purchaser acknowledges that, because the Transferred Shares have not been registered under the Securities Act, the Transferred Shares must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from such registration is available.  Purchaser is familiar with the provisions of Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby under the Securities Act.

4.REPRESENTATIONS AND WARRANTIES OF SELLER.  Seller represents and warrants to the Company and Purchaser as follows.

4.1Transfer for Own Account.  Seller is selling the Transferred Shares for Seller’s own account only and not with a view to, or for sale in connection with, a distribution of the Transferred Shares within the meaning of the Securities Act.  No portion of the Purchase Price will be received indirectly by the Company.

4.2No General Solicitation.  At no time has Seller presented Purchaser with or solicited Purchaser through any publicly issued or circulated newspaper, mail, radio, television or other form of general advertisement or solicitation in connection with the Transferred Shares.

4.3No Broker-Dealer.  Seller has not effected the Sale by or through a broker‐dealer in any public offering.

4.4Title to Shares.  Immediately prior to the Effective Date, Seller had valid title to the Transferred Shares, free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest.

4.5Consents.  All consents, approvals, authorizations and orders required for the execution and delivery of this Agreement by Seller and the Sale under this Agreement have been obtained and are in full force and effect.

4.6Authority.  Seller has full legal right, power and authority to enter into and perform its obligations under this Agreement and to transfer the Transferred Shares under this Agreement.  Seller has been duly organized and is validly existing and in good standing under the laws of the jurisdiction of its organization as the type of entity that it purports to be.  This Agreement constitutes a valid and binding obligation of Seller enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

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4.7Access to Information.  Seller has adequate information concerning the business and financial condition of the Company to make an informed decision regarding the sale of the Transferred Shares.

4.8Sophisticated Seller.  Seller:  (a) is a sophisticated entity familiar with transactions similar to those contemplated by this Agreement; and (b) has independently and without reliance upon Purchaser, and based on such information and the advice of such advisors as Seller has deemed appropriate, made its own analysis and decision to enter into this Agreement.  Seller acknowledges that neither Purchaser nor its affiliates or agents have given Seller any investment advice, opinion or other information on whether the sale of the Transferred Shares is prudent.  Seller acknowledges that (a) Purchaser or its affiliates or agents currently may have, and later may come into possession of, information with respect to the Company that is not known to Seller and that may be material to a decision to sell the Transferred Shares (“Seller Excluded Information”) and (b) Seller has determined to sell the Transferred Shares notwithstanding its lack of knowledge of the Seller Excluded Information.  Seller acknowledges the price for the Shares may significantly appreciate or depreciate over time and by agreeing to sell the Transferred Shares to Purchaser pursuant to this Agreement, Seller is giving up the opportunity to sell the Transferred Shares at a possible higher price in the future.

5.Compliance with Securities Laws.  Seller represents that the Transferred Shares are being transferred under an exemption or exemptions from the registration and qualification requirements of the Securities Act and any other applicable securities laws.NO RELIANCE.  Each of Seller and Purchaser acknowledges and agrees that neither the Company, nor any of its stockholders, officers, directors, employees, or agents (other than Seller and Purchaser) have (a) acted as an agent, finder or broker for Seller or Purchaser or their respective agents with respect to the officer, purchase and/or sale of the Transferred Shares, (b) made any representations or warranties of any kind, express or implied, to Seller or Purchaser or their respective agents in connection with the offer, purchase and/or sale of the Transferred Shares or (c) at any time had any duty to Seller or Purchaser or their respective agents to disclose any information relating to the Company, its business, or financial condition or relating to any other matters in connection with the offer, purchase and/or sale of the Transferred Shares.  Purchaser and Seller each acknowledge that any information provided to it by the Company was provided as a matter of convenience and that the Company makes no representations of any kind with respect to such information including, but not limited to, the accuracy or completeness of such information.  In making its decision to sell the Transferred Shares, Seller is relying solely on the representations and warranties of Purchaser (and not on any information provided by the Company).  In making its decision to purchase the Transferred Shares, Purchaser is relying solely on the representations and warranties of Seller (and not on any information provided by the Company).

6.COMPLIANCE WITH LAWS AND REGULATIONS.  The Sale will be subject to and conditioned upon compliance by the Company, Seller and Purchaser with all applicable state and federal laws and regulations.

7.VOTING AGREEMENT.  Purchaser hereby agrees to join the Amended and Restated Voting Agreement that will be entered into on the Effective Date immediately prior to this Agreement (but contingent upon the parties satisfying their obligations under this Agreement) by and among the Company and the Stockholders named therein (the “Voting Agreement”) as an Investor (as defined therein) and agrees that the Transferred Shares shall be bound by and subject to the terms of the Voting Agreement and adopts the Voting Agreement with the same force and effect as if Purchaser were originally a party thereto.  From and after the Effective Date, Purchaser agrees that neither it nor any of its affiliates shall solicit any Company security holder to transfer (or participate in any transfer of) any shares of the Company’s capital stock or rights thereto without the Company’s prior written consent.

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8.RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

8.1Legends.  Purchaser understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Transferred Shares, together with any other legends that may be required by state or federal securities laws, the Company’s Certificate of Incorporation or Bylaws or Stockholder Agreements, each as amended and/or restated from time to time:

These securities have not been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel satisfactory to the Company that such registration is not required or unless sold pursuant to Rule 144 of such Act. 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD AFTER THE EFFECTIVE DATE OF THE ISSUER’S REGISTRATION STATEMENT FILED UNDER THE ACT, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES.

THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT (A COPY OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST FROM THE ISSUER), AND BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.

8.2Stop-Transfer Instructions.  Purchaser agrees that, in order to ensure compliance with the restrictions imposed by this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company acts as its own transfer agent, it may make appropriate notations to the same effect in its own records.  The Company will not be required (a) to transfer on its books any Transferred Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (b) to treat as owner of such Transferred Shares, or to accord the right to vote or pay dividends, to any purchaser to whom such Transferred Shares have been so transferred.  Purchaser further understands and agrees that the Company may require written assurances, in form and substance satisfactory to counsel for the Company (which may include a requirement that Purchaser’s counsel provide a legal opinion acceptable to the Company), before the Company effects any future transfers of the Transferred Shares.

8.3Unpermitted Transfers Void.  Purchaser agrees that any Transfer or purported Transfer of Transferred Shares shall be null and void unless the terms, conditions and provisions of this Agreement are strictly observed and followed.

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9.GENERAL PROVISIONS.

9.1Successors and Assigns; Assignment.  Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Company may assign any of its rights and obligations under this Agreement.  No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company.

9.2Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to that body of laws pertaining to conflict of law.

9.3Dispute Resolution.  The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the federal or state courts located in the State of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out or of based upon this Agreement except in the federal or state courts located in the State of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that is not subject personally to the jurisdiction of the above- named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

WAIVER OF JURY TRIAL:  EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS.  EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

9.4Notices.  Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:  (a) at the time of personal delivery, if delivery is in person; (b) one (1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such deposit for deliveries outside of the United States; or (c) three (3) business days after deposit in the United States mail by certified mail (return receipt requested) for United States deliveries.  All notices for delivery outside the United States will be sent by express courier.  All notices not delivered personally will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address set forth below the signature lines of this Agreement or at such other address as such other party may designate by one of the indicated means of notice herein to the other party hereto.  A “business day” shall be a day, other than Saturday or Sunday, when the banks in the city of New York are open for business.

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9.5Titles and Headings.  The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement.  Unless otherwise specifically stated, all references herein to “section” and “exhibits” will mean “sections” and “exhibits” to this Agreement.

9.6Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.

9.7Severability.  If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.  If such clause or provisions cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement.

9.8Amendment and Waivers.  This Agreement may be amended only by a written agreement executed by each of the parties hereto.  No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed by the party against which enforcement is sought.  Any amendment effected in accordance with this section will be binding upon all parties hereto and each of their respective successors and assigns.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.  No waiver granted under this Agreement as to any one provisions herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically waived.

9.9Specific Enforcement.  It is agreed and understood that monetary damages would not adequately compensate an injured party for the breach of this Agreement by any other party, that this Agreement shall be specifically enforceable, and that any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order.  Further, each party waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.

9.10Cost of Enforcement.  If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings against any other party to this Agreement, the non-prevailing party or parties named in such legal proceedings shall pay all costs and expenses incurred by the prevailing party or parties, including, without limitation, reasonable attorneys’ fees.

9.11Counterparts; Facsimile Signatures.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.  This Agreement may be executed and delivered by facsimile or as an attachment to an e-mail and upon such delivery, a copy of the signature will be deemed to have the same effect as if the original signature had been delivered to the other party.

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9.12Covenants.

(a)Agreement upon Transfer of Shares.  Purchaser hereby agrees to enter into a stock transfer agreement with the Company in the form proposed by the Company upon the transfer of any Transferred Shares held by Purchaser to any third party (a “Fund Transferee”), including, without limitation, the transfer of any Transferred Shares to any stockholder, member or partner of Purchaser, and Purchaser agrees that it will not transfer any Transferred Shares to any Fund Transferee if such Fund Transferee will not agree to execute such transfer agreement.

(b)Financial Information and Reporting Agreement.  The Company and Seller acknowledge and agree that the term of the Financial Information and Reporting Agreement, dated as of October 31, 2010, by and between such parties (the “Financial Agreement”) is hereby terminated in all respects; provided, however, that Section 3 (Confidentiality) shall survive and remain in full force and effect.  Notwithstanding the foregoing, the Company shall deliver the following information to Seller on a generally accepted accounting principles basis within fourteen (14) days after the Effective Date (and make relevant employees, consultants and advisors available thereafter to answer questions with respect to such information):

	
 
	
•
	
Capitalization table as of both March 31, 2019 and the Effective Date;

	
 
	
•
	
Balance sheet as of both March 31, 2019 and the Effective Date;

	
 
	
•
	
Profit and loss statement for the three months ended March 31, 2019;

	
 
	
•
	
Profit and loss statement for the period from April 1, 2019 through the Effective Date;

	
 
	
•
	
Profit and loss statement for the period from January 1, 2019 through the Effective Date;

	
 
	
•
	
Trial balance as of both March 31, 2019 and the Effective Date;

	
 
	
•
	
Detailed general ledger export from QuickBooks for the three months ended March 31, 2019;

	
 
	
•
	
Detailed general ledger export from QuickBooks for the period from April 1, 2019 through the Effective Date;

	
 
	
•
	
Detailed general ledger export from QuickBooks for the period from January 1, 2019 through the Effective Date; and

	
 
	
•
	
Updated budget as of the Effective Date covering the period through June 30, 2019 (cash basis forecast is sufficient).

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(c)Seller and Purchaser hereby acknowledge and agree that Seller’s rights under Section 2.1 and Section 2.2 of the Rights Agreement are hereby terminated and Purchaser is not entitled to any rights under Section 2.1 or Section 2.2 of the Rights Agreement except to the extent that Purchaser holds Registrable Securities (as such term is defined in the Rights Agreement) with an aggregate original purchase price from the Company exceeding USD$500,000 (or pursuant to such threshold as set forth in the Rights Agreement to the extent the Rights Agreement is amended or restated following the date hereof).  Each party further acknowledges and agrees that all references to Seller in the Rights Agreement are hereby deleted.

9.13Release.

(a)Seller and Purchaser, as well as any person acting by, through, under or in concert with either of the foregoing does hereby release and forever discharge the Company, and its predecessors and successors, subsidiaries, heirs, executors, administrators and assigns, as well as any person acting by, through, under or in concert with any of the foregoing, from any and all claims, demands, causes of action, obligations, damages, losses, liabilities, contracts, agreements, promises, debts, costs and expenses of any kind whatsoever, whether at law or in equity, asserted or unasserted, known or unknown, suspected or unsuspected, fixed or contingent (collectively, “Claims” and individually, “Claim”), which such party ever had, now has, or may claim to have against the Company, relating to or arising from the transfer and sale of the Transferred Shares. Seller and Purchaser’s release and discharge in this Section 9.13(a) or otherwise shall not apply to Claims that relate to or arise from intentional fraud or willful misrepresentation by the Company arising from or relating to the sale of the Transferred Shares (the “Company Excepted Claims”).  Additionally, Seller and Purchaser hereby knowingly and voluntarily waive any protection relating to unknown claims or otherwise that may exist under statutes and principles of common law as it pertains to the enforcement of the releases provided in this Section 9.13(a), including, without limitation, any state law or analogous law, which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.  

Having been so advised, Seller and Purchaser nevertheless elect to and do assume all risks for Claims known or unknown, suspected or unsuspected, heretofore arising from the subject of this Section 9.13(a), and specifically waive any rights it may have under California Civil Code Section 1542, as well as under any other applicable statute or common-law principle with a similar effect (other than Company Excepted Claims).

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(b)The Company and Purchaser, as well as any person acting by, through, under or in concert with either of the foregoing does hereby release and forever discharge Seller, and its predecessors and successors, subsidiaries, heirs, executors, administrators and assigns, as well as any person acting by, through, under or in concert with any of the foregoing, from any and all Claims, which such party ever had, now has, or may claim to have against Seller, relating to or arising from the transfer and sale of the Transferred Shares. The Company and Purchaser’s release and discharge in this Section 9.13(b) or otherwise shall not apply to Claims that relate to or arise from intentional fraud or willful misrepresentation by Seller arising from or relating to the sale of the Transferred Shares (the “Seller Excepted Claims”).  Additionally, the Company and Purchaser hereby knowingly and voluntarily waive any protection relating to unknown claims or otherwise that may exist under statutes and principles of common law as it pertains to the enforcement of the releases provided in this Section 9.13(b), including, without limitation, any state law or analogous law, which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.  

Having been so advised, the Company and Purchaser nevertheless elect to and do assume all risks for Claims known or unknown, suspected or unsuspected, heretofore arising from the subject of this Section 9.13(b), and specifically waive any rights it may have under California Civil Code Section 1542, as well as under any other applicable statute or common-law principle with a similar effect (other than Seller Excepted Claims).

 

[Signature page follows]

 

 

11

 

IN WITNESS WHEREOF, the Company has caused this Stock Purchase Agreement to be executed by its duly authorized representative and Seller and Purchaser have each executed this Stock Purchase Agreement, as of the Effective Date.

 

 

	
SELLER:  Merrimack Pharmaceuticals, Inc.

	
 
	
 

	
By: 
	
/s/ Richard Peters

	
Name: 
	
Richard Peters

	
Title: 
	
CEO

 

 

	
PURCHASER:  HNKK Holdings Limited

	
 
	
 

	
By: 
	
/s/ Elaine Chan

	
Name: 
	
Elaine Chan

	
Title: 
	
Authorized Signatory

 

 

COMPANY:  Silver Creek Pharmaceuticals, Inc.

	
 
	
 

	
By: 
	
/s/ Michael C. Fairbanks

	
Name: 
	
Michael C. Fairbanks

	
Title: 
	
Chairman

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